N-CSRS 1 a2139435zn-csrs.txt N-CSRS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act File No. 811-04604 ------------------------------------------------- CREDIT SUISSE CAPITAL FUNDS --------------------------------------------------- (Exact Name of Registrant as Specified in Charter) 466 Lexington Avenue, New York, New York 10017-3140 --------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Hal Liebes, Esq. Credit Suisse Capital Funds 466 Lexington Avenue New York, New York 10017-3140 Registrant's telephone number, including area code:(212) 875-3500 Date of fiscal year end: October 31, 2004 Date of reporting period: November 1, 2003 to April 30, 2004 ITEM 1. REPORTS TO STOCKHOLDERS. [CREDIT SUISSE ASSET MANAGEMENT LOGO] CREDIT SUISSE FUNDS SEMIANNUAL REPORT APRIL 30, 2004 (UNAUDITED) - CREDIT SUISSE LARGE CAP VALUE FUND - CREDIT SUISSE SMALL CAP VALUE FUND THE FUNDS' INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES (WHICH SHOULD BE CONSIDERED CAREFULLY BEFORE INVESTING), AND MORE COMPLETE INFORMATION ABOUT THE FUNDS, ARE PROVIDED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING. YOU MAY OBTAIN ADDITIONAL COPIES BY CALLING 800-927-2874 OR BY WRITING TO CREDIT SUISSE FUNDS, P.O. BOX 55030, BOSTON, MA 02205-5030. CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR, IS LOCATED AT 466 LEXINGTON AVE., NEW YORK, NY 10017-3140. CREDIT SUISSE FUNDS ARE ADVISED BY CREDIT SUISSE ASSET MANAGEMENT, LLC. INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD BE AWARE THAT THEY MAY BE ELIGIBLE TO PURCHASE COMMON CLASS AND/OR ADVISOR CLASS SHARES (WHERE OFFERED) DIRECTLY OR THROUGH CERTAIN INTERMEDIARIES. SUCH SHARES ARE NOT SUBJECT TO A SALES CHARGE BUT MAY BE SUBJECT TO AN ONGOING SERVICE AND DISTRIBUTION FEE OF UP TO 0.50% OF AVERAGE DAILY NET ASSETS. INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD ALSO BE AWARE THAT THEY MAY BE ELIGIBLE FOR A REDUCTION OR WAIVER OF THE SALES CHARGE WITH RESPECT TO CLASS A, B OR C SHARES. FOR MORE INFORMATION, PLEASE REVIEW THE RELEVANT PROSPECTUSES OR CONSULT YOUR FINANCIAL REPRESENTATIVE. THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND FUNDS' HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2004; THESE VIEWS AND FUNDS' HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES. FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE NOT GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT RISKS, INCLUDING LOSS OF YOUR INVESTMENT. CREDIT SUISSE LARGE CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT April 30, 2004 (unaudited) June 1, 2004 Dear Shareholder: For the six months ended April 30, 2004, the Common Class Shares and Advisor Class Shares of Credit Suisse Large Cap Value Fund(1) (the "Fund") had gains of 6.88% and 6.64%, respectively, versus an increase of 8.15% for the Russell 1000(R) Value Index.(2) The Fund's Class A Shares (without sales charge), Class B Shares (without contingent deferred sales charge) and Class C Shares (without contingent deferred sales charge) had returns of 6.72%(3), 6.35%(3), and 6.38%(3), respectively, for the same period. The period was a mostly positive one for the U.S. stock market, though stocks became increasingly volatile. In general, the market was aided by optimism that a reviving U.S. economy would lead to better corporate earnings results in due course. In fact, earnings reported late in the period exceeded expectations in many cases. However, the period ended on an uncertain note in the stock market. While the economic news remained generally good, inflation pressures appeared to be building. The Federal Reserve hinted that rate hikes could therefore come sooner rather than later, and stocks gave back some gains in April. The Fund underperformed its benchmark for the period, attributable in large part to its general avoidance of lower-quality stocks -- e.g., those representing companies with little or no earnings and leveraged balance sheets -- which had strong showings in the October-through-January span. The Fund outperformed its benchmark in the period's second half, as higher-quality stocks began to gain favor in the market. Stocks that hampered the Fund included its energy and technology holdings. On the positive side, the Fund's financial services, healthcare and consumer staples stocks aided its return. With regard to portfolio activity, we increased our exposure to the energy sector, based on valuations along with our contrarian view on oil and gas prices. While we expect energy prices to decline from current levels, we think that relatively high (and higher-than-consensus) forecast prices will likely prevail. We also believe that energy services companies could benefit from increased spending by exploration and production companies. Elsewhere of note, we ended the period overweighted in the healthcare and producer durables sectors, and underweighted in the utilities and consumer-discretionary areas. We continued to underweight the financial-services sector -- which accounts for more than 30% of the Fund's benchmark -- in order to avoid excessive interest-rate risk. 1 Going forward, we will continue to focus on companies that put their cash to productive use. We look for companies that use excess cash accumulated in the ongoing economic upturn in ways that can add to shareholder value via share buybacks, higher dividend payouts or investments in organic growth. The Credit Suisse Value Term Stephen J. Kaszynski Robert E. Rescoe IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS. 2 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2004(1)
SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------- ------- -------- --------- ---------- Common Class 30.18% -- -- 2.88% 8/01/00 Advisor Class -- -- -- 13.54%(4) 6/06/03 Class A Without Sales Charge 30.43% 3.06% 11.30% 11.65% 7/09/92 Class A With Maximum Sales Charge 22.92% 1.85% 10.65% 11.09% 7/09/92 Class B Without CDSC 29.44% 2.31% -- 9.04% 2/28/96 Class B With CDSC 25.44% 2.31% -- 9.04% 2/28/96 Class C Without CDSC 29.44% -- -- 3.44% 2/28/00 Class C With CDSC 28.44% -- -- 3.44% 2/28/00
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004(1)
SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------- ------- -------- --------- ---------- Common Class 20.34% -- -- 2.42% 8/01/00 Advisor Class -- -- -- 11.86%(4) 6/06/03 Class A Without Sales Charge 20.60% 1.62% 10.82% 11.43% 7/09/92 Class A With Maximum Sales Charge 13.67% 0.42% 10.17% 10.87% 7/09/92 Class B Without CDSC 19.60% 0.88% -- 8.74% 2/28/96 Class B With CDSC 15.60% 0.88% -- 8.74% 2/28/96 Class C Without CDSC 19.69% -- -- 2.99% 2/28/00 Class C With CDSC 18.69% -- -- 2.99% 2/28/00
RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. DUE TO MARKET VOLATILITY, THE PERFORMANCE OF THE FUNDS MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. THE PERFORMANCE RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT www.csam.com/us. ---------- (1) Fee waivers and/or expense reimbursements reduced expenses for the Fund, without which performance would be lower. Waivers and/or reimbursements may be discontinued at any time. (2) The Russell 1000(R) Value Index measures the performance of those companies in the Russell 1000(R) Index with lower price-to-book ratios and lower forecasted growth values. It is an unmanaged index of common stocks that includes reinvestment of dividends and is compiled by Frank Russell Company. Investors cannot invest directly in an index. (3) Total return for Class A Shares for the reporting period, based on offering price (with maximum sales charge of 5.75%), was 0.59%. Total return for Class B Shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 4%), was 2.35%. Total return for Class C Shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 1%), was 5.38%. (4) Returns for periods less than one year are not annualized. 3 CREDIT SUISSE SMALL CAP VALUE FUND SEMIANNUAL INVESTMENT ADVISER'S REPORT April 30, 2004 (unaudited) June 1, 2004 Dear Shareholder: For the six months ended April 30, 2004, the Common Class Shares of Credit Suisse Small Cap Value Fund(1) (the "Fund") had a gain of 11.62%, versus increases of 6.55% and 9.10%, respectively, for the Russell 2000(R) Index(2) and the Russell 2000(R) Value Index.(2) The Fund's Class A Shares (without sales charge), Class B Shares (without contingent deferred sales charge) and Class C Shares (without contingent deferred sales charge) had gains of 11.57%(3), 11.16%(3) and 11.20%(3), respectively, for the same period. The period was a mostly positive one for the U.S. stock market, though stocks became increasingly volatile. In general, the market was aided by optimism that a reviving U.S. economy would lead to better corporate earnings results in due course. In fact, earnings reported late in the period exceeded expectations in many cases. However, the period ended on an uncertain note in the stock market. While the economic news remained generally good, inflation pressures appeared to be building. The Federal Reserve hinted that rate hikes could therefore come sooner rather than later, and stocks gave back some gains in April. The Fund outperformed its benchmarks for the period, aided by good stock selection in the materials, consumer discretionary, transportation and utilities sectors. The Fund's performance was helped when lower-quality stocks -- e.g., those representing companies with little or no earnings and leveraged balance sheets -- fell from favor in the market late in the period, after strong performance in 2003 (we generally avoided such stocks in the period). With regard to sector allocation, a byproduct of our stock selection process, we maintained an overweighting in the energy area, based on company-specific factors. We believe our energy holdings should be supported by firm oil and gas prices and, in the energy services industry, increased spending by exploration and production companies. Elsewhere of note, we ended the period overweighted in the healthcare and producer durables sectors, and underweighted in the technology and consumer-discretionary areas. We continued to underweight the financial-services sector -- which accounts for more than 30% of the Fund's benchmarks -- in order to avoid excessive interest-rate risk. That said, we made some purchases here late in the period, increasing our exposure to specialty insurance companies that we deemed to have good business prospects and relatively low interest-rate vulnerability. 4 Going forward, as we continue our efforts to identify hidden values among small companies, one theme we are employing is companies' putting cash to productive use. We look for companies that use excess cash (accumulated in the ongoing economic upturn) in ways that we feel can add to shareholder value via share buybacks, higher dividend payouts or investments in organic growth. The Credit Suisse Value Team Stephen J.Kaszynski Robert E. Rescoe INVESTMENTS IN SMALL COMPANIES MAY BE MORE VOLATILE AND LESS LIQUID THAN INVESTMENTS IN LARGER COMPANIES. IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS. 5 AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2004(1)
SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------ ------- -------- --------- ---------- Common Class 38.75% -- -- 12.69% 8/01/00 Class A Without Sales Charge 38.73% 14.37% 10.98% 13.75% 7/09/92 Class A With Maximum Sales Charge 30.73% 13.02% 10.33% 13.18% 7/09/92 Class B Without CDSC 37.75% 13.52% -- 10.28% 2/28/96 Class B With CDSC 33.75% 13.52% -- 10.28% 2/28/96 Class C Without CDSC 37.74% -- -- 14.34% 2/28/00 Class C With CDSC 36.74% -- -- 14.34% 2/28/00
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004(1)
SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------- -------- -------- ---------- ---------- Common Class 28.43% -- -- 12.08% 8/01/00 Class A Without Sales Charge 28.44% 12.18% 10.80% 13.54% 7/09/92 Class A With Maximum Sales Charge 21.03% 10.85% 10.15% 12.98% 7/09/92 Class B Without CDSC 27.46% 11.34% -- 10.01% 2/28/96 Class B With CDSC 23.46% 11.34% -- 10.01% 2/28/96 Class C Without CDSC 27.48% -- -- 13.72% 2/28/00 Class C With CDSC 26.48% -- -- 13.72% 2/28/00
RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. DUE TO MARKET VOLATILITY, THE PERFORMANCE OF THE FUNDS MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. THE PERFORMANCE RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT www.csam.com/us. ---------- (1) Fee waivers and/or expense reimbursements reduced expenses for the Fund, without which performance would be lower. Waivers and/or reimbursements may be discontinued at any time. (2) The Russell 2000(R) Index measures the performance of the 2,000 smallest companies in the Russell 3000(R) Index, which represent approximately 8% of the total market capitalization of the Russell 3000(R) Index. It is an unmanaged index of common stocks which includes reinvestment of dividends and is compiled by Frank Russell Company. The Russell 3000(R) Index is composed of 3,000 of the largest U.S. companies by market capitalization. The returns for the Russell 2000(R) Index do not include any sales charges, fees or other expenses. The Russell 2000(R) Value Index measures the performance of those Russell 2000(R) companies with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in an index. (3) Total return for Class A Shares for the reporting period, based on offering price (with maximum sales charge of 5.75%), was 5.14%. Total return for Class B Shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 4%), was 7.16%. Total return for Class C Shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 1%), was 10.20%. 6 CREDIT SUISSE LARGE CAP VALUE FUND SCHEDULE OF INVESTMENTS April 30, 2004 (unaudited)
NUMBER OF SHARES VALUE ------------- ------------- COMMON STOCKS (99.5%) AEROSPACE & DEFENSE (5.4%) Boeing Co. 96,100 $ 4,102,509 Lockheed Martin Corp. 159,200 7,593,840 United Technologies Corp. 84,500 7,288,970 ------------- 18,985,319 ------------- AUTO COMPONENTS (3.3%) Johnson Controls, Inc. 92,000 5,047,120 Lear Corp. 108,100 6,553,022 ------------- 11,600,142 ------------- BANKS (14.1%) Bank of America Corp. 220,837 17,775,170 Charter One Financial, Inc. 118,630 3,958,683 Fifth Third Bancorp 68,000 3,648,880 Wachovia Corp. 195,300 8,934,975 Washington Mutual, Inc. 132,600 5,223,114 Wells Fargo & Co. 178,200 10,061,172 ------------- 49,601,994 ------------- BUILDING PRODUCTS (1.2%) American Standard Companies, Inc.* 40,500 4,260,195 ------------- CHEMICALS (3.4%) Du Pont (E. I.) de Nemours & Co. 182,000 7,816,900 PPG Industries, Inc. 69,500 4,122,045 ------------- 11,938,945 ------------- COMMERCIAL SERVICES & SUPPLIES (1.0%) Cendant Corp. 148,000 3,504,640 ------------- COMPUTERS & PERIPHERALS (3.2%) Hewlett-Packard Co. 329,920 6,499,424 Seagate Technology*! 390,600 4,886,406 ------------- 11,385,830 ------------- DIVERSIFIED FINANCIALS (4.6%) Lehman Brothers Holdings, Inc. 74,100 5,438,940 Morgan Stanley 73,100 3,756,609 State Street Corp. 142,000 6,929,600 ------------- 16,125,149 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES (3.3%) ALLTEL Corp.! 46,000 2,315,640 BellSouth Corp.! 158,700 4,096,047 Verizon Communications, Inc. 140,700 5,310,018 ------------- 11,721,705 ------------- ELECTRIC UTILITIES (2.8%) Calpine Corp.*! 1,367,700 5,935,818 Progress Energy, Inc. 88,700 3,793,699 ------------- 9,729,517 -------------
See Accompanying Notes to Financial Statements. 7
NUMBER OF SHARES VALUE ------------- ------------- COMMON STOCKS ELECTRICAL EQUIPMENT (1.0%) Emerson Electric Co. 59,600 $ 3,589,112 ------------- ENERGY EQUIPMENT & SERVICES (2.1%) BJ Services Co.* 85,700 3,813,650 Weatherford International, Ltd.*! 82,600 3,591,448 ------------- 7,405,098 ------------- FOOD PRODUCTS (3.2%) Dean Foods Co. 120,700 4,053,106 General Mills, Inc. 148,300 7,229,625 ------------- 11,282,731 ------------- HEALTHCARE PROVIDERS & SERVICES (2.4%) Aetna, Inc. 50,400 4,170,600 Cardinal Health, Inc. 56,500 4,138,625 ------------- 8,309,225 ------------- HOUSEHOLD DURABLES (1.1%) Newell Rubbermaid, Inc. 162,500 3,841,500 ------------- INDUSTRIAL CONGLOMERATES (4.1%) Textron, Inc. 91,600 5,054,488 Tyco International, Ltd. 345,800 9,492,210 ------------- 14,546,698 ------------- INSURANCE (8.1%) Allstate Corp. 111,900 5,136,210 Hartford Financial Services Group, Inc. 145,800 8,905,464 Prudential Financial, Inc. 164,900 7,245,706 St. Paul Companies, Inc. 178,100 7,243,327 ------------- 28,530,707 ------------- IT CONSULTING & SERVICES (1.3%) Unisys Corp.*! 350,200 4,563,106 ------------- MACHINERY (3.3%) Eaton Corp. 92,000 5,462,960 ITT Industries, Inc. 77,900 6,176,691 ------------- 11,639,651 ------------- MEDIA (4.5%) Comcast Corp. Special Class A* 122,900 3,562,871 Gannett Company, Inc. 46,400 4,021,952 Tribune Co. 52,400 2,508,912 Viacom, Inc. Class B 144,300 5,577,195 ------------- 15,670,930 -------------
See Accompanying Notes to Financial Statements. 8
NUMBER OF SHARES VALUE ------------- ------------- COMMON STOCKS OIL & GAS (10.6%) Apache Corp. 99,200 $ 4,153,504 ConocoPhillips 168,050 11,981,965 Exxon Mobil Corp. 227,900 9,697,145 Murphy Oil Corp. 64,000 4,384,000 Noble Energy, Inc. 73,100 3,369,910 Royal Dutch Petroleum Co. NY Shares! 78,000 3,795,480 ------------- 37,382,004 ------------- PAPER & FOREST PRODUCTS (2.0%) MeadWestvaco Corp. 269,100 7,036,965 ------------- PHARMACEUTICALS (6.3%) Abbott Laboratories 90,300 3,975,006 Johnson & Johnson 143,900 7,774,917 Pfizer, Inc. 224,616 8,032,268 Wyeth 66,100 2,516,427 ------------- 22,298,618 ------------- ROAD & RAIL (2.9%) Burlington Northern Santa Fe Corp. 314,500 10,284,150 ------------- SPECIALTY RETAIL (1.1%) TJX Companies, Inc. 150,000 3,685,500 ------------- TOBACCO (3.2%) Altria Group, Inc. 131,800 7,299,084 R.J. Reynolds Tobacco Holdings, Inc.! 63,500 4,112,895 ------------- 11,411,979 ------------- TOTAL COMMON STOCKS (Cost $289,717,156) 350,331,410 ------------- SHORT-TERM INVESTMENTS (5.1%) State Street Navigator Prime Fund!! 17,427,325 17,427,325 ------------- PAR (000) ------------- State Street Bank and Trust Co. Euro Time Deposit, 0.750%, 5/03/04 $ 291 291,000 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $17,718,325) 17,718,325 ------------- TOTAL INVESTMENTS AT VALUE (104.6%) (Cost $307,435,481) 368,049,735 LIABILITIES IN EXCESS OF OTHER ASSETS (-4.6%) (16,040,769) ------------- NET ASSETS (100.0%) $ 352,008,966 =============
* Non-income producing security. ! Security or portion thereof is out on loan. !! Represents security purchased with cash collateral received for securities on loan. See Accompanying Notes to Financial Statements. 9 CREDIT SUISSE SMALL CAP VALUE FUND SCHEDULE OF INVESTMENTS April 30, 2004 (unaudited)
NUMBER OF SHARES VALUE ------------- ------------- COMMON STOCKS (99.8%) AEROSPACE & DEFENSE (0.8%) DRS Technologies, Inc.*! 80,000 $ 2,260,000 ------------- AUTO COMPONENTS (3.1%) Modine Manufacturing Co. 141,200 3,883,000 Tower Automotive, Inc.*! 224,700 1,150,464 Visteon Corp.! 376,000 4,083,360 ------------- 9,116,824 ------------- BANKS (10.8%) Alabama National Bancorp 77,100 3,933,642 Century Bancorp, Inc. Class A! 36,500 1,195,375 First Financial Holdings, Inc.! 141,100 4,025,583 FirstFed Financial Corp.* 134,000 5,416,280 NewAlliance Bancshares, Inc.* 302,200 4,125,030 Prosperity Bancshares, Inc.! 130,600 3,026,002 Susquehanna Bancshares, Inc. 158,900 3,718,260 Webster Financial Corp. 87,200 3,793,200 WSFS Financial Corp. 47,000 2,277,620 ------------- 31,510,992 ------------- BUILDING PRODUCTS (1.1%) Griffon Corp.*! 141,000 3,094,950 ------------- CHEMICALS (2.6%) H.B. Fuller Co. 180,000 4,932,000 Olin Corp.! 145,800 2,517,966 ------------- 7,449,966 ------------- COMMERCIAL SERVICES & SUPPLIES (3.6%) Banta Corp.! 130,000 5,782,400 Watson Wyatt & Company Holdings* 175,800 4,611,234 ------------- 10,393,634 ------------- CONSTRUCTION & ENGINEERING (1.1%) EMCOR Group, Inc.*! 75,000 3,067,500 ------------- CONSTRUCTION MATERIALS (1.2%) Eagle Materials, Inc.! 53,100 3,488,670 ------------- CONTAINERS & PACKAGING (3.0%) AptarGroup, Inc. 150,000 5,895,000 Crown Holdings, Inc.* 344,200 2,905,048 ------------- 8,800,048 ------------- DIVERSIFIED FINANCIALS (2.1%) Assured Guaranty, Ltd.* 168,000 2,973,600 Piper Jaffray Companies, Inc.*! 63,900 3,094,038 ------------- 6,067,638 -------------
See Accompanying Notes to Financial Statements. 10
NUMBER OF SHARES VALUE ------------- ------------- COMMON STOCKS ELECTRIC UTILITIES (2.9%) Empire District Electric Co.! 124,500 $ 2,590,845 NRG Energy, Inc.* 138,600 3,007,620 OGE Energy Corp.! 116,000 2,789,800 ------------- 8,388,265 ------------- ELECTRICAL EQUIPMENT (4.5%) AMETEK, Inc.! 128,800 3,413,200 Brady Corp. 106,000 4,119,160 C&D Technologies, Inc. 49,100 761,050 Rayovac Corp.*! 177,200 4,722,380 ------------- 13,015,790 ------------- ELECTRONIC EQUIPMENT & INSTRUMENTS (8.0%) Electro Scientific Industries, Inc.* 153,300 3,133,452 OSI Systems, Inc.*! 140,000 3,193,400 Rogers Corp.*,! 125,000 7,462,500 Roper Industries, Inc.! 38,600 1,874,030 Varian, Inc.* 130,000 5,335,200 Woodhead Industries, Inc.! 162,300 2,393,925 ------------- 23,392,507 ------------- ENERGY EQUIPMENT & SERVICES (3.7%) Oceaneering International, Inc.* 197,000 5,516,000 Varco International, Inc.* 261,767 5,415,959 ------------- 10,931,959 ------------- FOOD & DRUG RETAILING (1.7%) Ruddick Corp. 250,000 5,100,000 ------------- FOOD PRODUCTS (1.3%) Del Monte Foods Co.* 268,200 2,966,292 John B. Sanfilippo & Son, Inc.*! 28,900 906,593 ------------- 3,872,885 ------------- GAS UTILITIES (2.4%) National Fuel Gas Co. 100,400 2,458,796 WGL Holdings, Inc.! 160,000 4,524,800 ------------- 6,983,596 ------------- HEALTHCARE EQUIPMENT & SUPPLIES (6.9%) Arrow International, Inc.! 200,000 5,984,000 Cooper Companies, Inc.! 132,600 7,160,400 Invacare Corp.! 110,000 4,381,300 STERIS Corp.* 121,200 2,685,792 ------------- 20,211,492 ------------- HEALTHCARE PROVIDERS & SERVICES (2.4%) LifePoint Hospitals, Inc.*! 96,500 3,450,840 Service Corp. International*! 490,500 3,624,795 ------------- 7,075,635 -------------
See Accompanying Notes to Financial Statements. 11
NUMBER OF SHARES VALUE ------------- ------------- COMMON STOCKS HOTELS, RESTAURANTS & LEISURE (2.2%) Marcus Corp. 182,575 $ 2,957,715 O'Charley's, Inc.* 176,600 3,335,974 ------------- 6,293,689 ------------- HOUSEHOLD DURABLES (1.4%) Ethan Allen Interiors, Inc. 100,000 4,157,000 ------------- INDUSTRIAL CONGLOMERATES (3.6%) Carlisle Companies, Inc. 80,000 4,740,000 Lydall, Inc.* 199,500 1,947,120 Teleflex, Inc.! 85,000 3,880,250 ------------- 10,567,370 ------------- INSURANCE (6.3%) American Physicians Capital, Inc.*! 61,915 1,439,648 HCC Insurance Holdings, Inc.! 149,400 4,783,788 Platinum Underwriters Holdings, Ltd.! 188,100 6,015,438 ProAssurance Corp.*! 86,700 2,940,864 Selective Insurance Group, Inc.! 90,700 3,243,432 ------------- 18,423,170 ------------- INVESTMENT COMPANY (0.8%) Apollo Investment Corp.* 166,200 2,285,250 ------------- IT CONSULTING & SERVICES (1.1%) Keane, Inc.*,! 230,200 3,268,840 ------------- MACHINERY (5.7%) AGCO Corp.*! 91,900 1,769,075 ESCO Technologies, Inc.* 101,100 4,883,130 Flowserve Corp.* 167,600 3,581,612 Robbins & Myers, Inc.! 70,500 1,541,130 The Manitowoc Company, Inc.! 157,000 4,774,370 ------------- 16,549,317 ------------- MEDIA (3.7%) Carmike Cinemas, Inc.*! 142,300 5,370,402 Harte-Hanks, Inc. 225,000 5,391,000 ------------- 10,761,402 ------------- METALS & MINING (0.7%) Quanex Corp. 50,100 2,044,080 ------------- OIL & GAS (4.2%) Denbury Resources, Inc.*! 217,100 3,964,246 Evergreen Resources, Inc.! 75,500 3,029,815 Houston Exploration Co.* 117,500 5,256,950 ------------- 12,251,011 ------------- REAL ESTATE (1.0%) HRPT Properties Trust 299,000 2,855,450 -------------
See Accompanying Notes to Financial Statements. 12
NUMBER OF SHARES VALUE ------------- ------------- COMMON STOCKS ROAD & RAIL (3.0%) Laidlaw International, Inc.* 304,600 $ 4,221,756 Werner Enterprises, Inc. 231,250 4,622,687 ------------- 8,844,443 ------------- SPECIALTY RETAIL (1.7%) Hughes Supply, Inc. 90,100 5,035,689 ------------- TEXTILES & APPAREL (1.2%) The Warnaco Group, Inc.*! 184,000 3,519,920 ------------- TOTAL COMMON STOCKS (Cost $211,197,378) 291,078,982 ------------- SHORT-TERM INVESTMENTS (12.6%) State Street Navigator Prime Fund!! 36,227,629 36,227,629 ------------- PAR (000) ------------- State Street Bank and Trust Co. Euro Time Deposit, 0.750%, 5/03/04 $ 475 475,000 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $36,702,629) 36,702,629 ------------- TOTAL INVESTMENTS AT VALUE (112.4%) (Cost $247,900,007) 327,781,611 LIABILITIES IN EXCESS OF OTHER ASSETS (-12.4%) (36,211,390) ------------- NET ASSETS (100.0%) $ 291,570,221 =============
* Non-income producing security. ! Security or portion thereof is out on loan. !! Represents security purchased with cash collateral received for securities on loan. See Accompanying Notes to Financial Statements. 13 CREDIT SUISSE FUNDS STATEMENTS OF ASSETS AND LIABILITIES April 30, 2004 (unaudited)
LARGE CAP VALUE SMALL CAP VALUE FUND FUND --------------- --------------- ASSETS Investments at value, including collateral for securities on loan of $17,427,325 and $36,227,629, respectively (Cost $307,435,481, and $247,900,007, respectively) (Note 1) $ 368,049,735(1) $ 327,781,611(2) Cash 758 -- Receivable for investments sold 4,189,127 1,096,138 Receivable for fund shares sold 987,150 690,453 Dividend and interest receivable 439,014 264,558 Prepaid expenses and other assets 66,072 60,009 --------------- --------------- Total Assets 373,731,856 329,892,769 --------------- --------------- LIABILITIES Advisory fee payable (Note 2) 163,999 183,483 Administrative services fee payable (Note 2) 63,523 52,080 Shareholder servicing/Distribution fee payable (Note 2) 97,048 82,060 Payable upon return of securities loaned (Note 1) 17,427,325 36,227,629 Payable for investments purchased 3,631,572 1,407,367 Payable for fund shares redeemed 140,220 170,377 Other accrued expenses payable 199,203 199,552 --------------- --------------- Total Liabilities 21,722,890 38,322,548 --------------- --------------- NET ASSETS Capital stock, $0.001 par value (Note 5) 18,228 13,801 Paid-in capital (Note 5) 272,002,956 199,709,123 Undistributed net investment income (loss) 45,349 (555,443) Accumulated net realized gain on investments 19,328,179 12,521,136 Net unrealized appreciation from investments 60,614,254 79,881,604 --------------- --------------- Net Assets $ 352,008,966 $ 291,570,221 =============== =============== COMMON SHARES Net assets $ 671,782 $ 51,554,605 Shares outstanding 34,873 2,428,562 --------------- --------------- Net asset value, offering price, and redemption price per share $ 19.26 $ 21.23 =============== =============== ADVISOR SHARES Net assets $ 13,089,423 N/A Shares outstanding 675,644 N/A --------------- --------------- Net asset value, offering price, and redemption price per share $ 19.37 N/A =============== =============== A SHARES Net assets $ 305,497,379 $ 206,880,476 Shares outstanding 15,801,823 9,708,533 --------------- --------------- Net asset value and redemption price per share $ 19.33 $ 21.31 =============== =============== Maximum offering price per share (net asset value/(1-5.75%)) $ 20.51 $ 22.61 =============== =============== B SHARES Net assets $ 28,570,291 $ 22,584,887 Shares outstanding 1,495,612 1,132,994 --------------- --------------- Net asset value and offering price per share $ 19.10 $ 19.93 =============== =============== C SHARES Net assets $ 4,180,091 $ 10,550,253 Shares outstanding 219,809 531,010 --------------- --------------- Net asset value and offering price per share $ 19.02 $ 19.87 =============== ===============
(1) Including $16,532,009 of securities on loan. (2) Including $35,092,169 of securities on loan. See Accompanying Notes to Financial Statements. 14 STATEMENTS OF OPERATIONS For the Six Months Ended April 30, 2004 (unaudited)
LARGE CAP VALUE SMALL CAP VALUE FUND FUND --------------- --------------- INVESTMENT INCOME (Note 1) Dividends $ 3,767,235 $ 1,558,634 Interest 10,680 35,346 Securities lending 6,326 7,329 Foreign taxes withheld (14,126) -- --------------- --------------- Total investment income 3,770,115 1,601,309 --------------- --------------- EXPENSES Investment advisory fees (Note 2) 1,018,803 1,089,388 Administrative services fees (Note 2) 287,481 225,495 Shareholder servicing/Distribution fees (Note 2) Common Class -- 62,988 Advisor Class 46,434 -- Class A 395,969 256,854 Class B 151,695 117,038 Class C 19,165 48,253 Transfer agent fees (Note 2) 283,692 228,148 Registration fees 25,894 21,879 Legal fees 24,699 21,117 Printing fees (Note 2) 21,125 29,376 Custodian fees 14,713 12,776 Insurance expense 13,224 12,430 Audit fees 11,608 11,993 Commitment fees (Note 3) 5,307 3,809 Trustees' fees 4,366 4,355 Miscellaneous expense 12,684 10,853 --------------- --------------- Total expenses 2,336,859 2,156,752 --------------- --------------- Net investment income (loss) 1,433,256 (555,443) --------------- --------------- NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS Net realized gain from investments 21,733,205 13,417,937 Net change in unrealized appreciation (depreciation) from investments 1,541,869 18,057,795 --------------- --------------- Net realized and unrealized gain from investments 23,275,074 31,475,732 --------------- --------------- Net increase in net assets resulting from operations $ 24,708,330 $ 30,920,289 =============== ===============
See Accompanying Notes to Financial Statements. 15 STATEMENTS OF CHANGES IN NET ASSETS
LARGE CAP VALUE SMALL CAP VALUE FUND FUND ----------------------------- ----------------------------- FOR THE SIX FOR THE SIX MONTHS FOR THE MONTHS FOR THE ENDED YEAR ENDED YEAR APRIL 30, ENDED APRIL 30, ENDED 2004 OCTOBER 31, 2004 OCTOBER 31, (UNAUDITED) 2003 (UNAUDITED) 2003 ------------- ------------- ------------- ------------- FROM OPERATIONS Net investment income (loss) $ 1,433,256 $ 1,532,798 $ (555,443) $ (451,373) Net realized gain from investments 21,733,205 16,763,424 13,417,937 14,641,903 Net change in unrealized appreciation (depreciation) from investments 1,541,869 11,390,112 18,057,795 24,977,630 ------------- ------------- ------------- ------------- Net increase in net assets resulting from operations 24,708,330 29,686,334 30,920,289 39,168,160 ------------- ------------- ------------- ------------- FROM DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income Common Class shares (4,114) (17,331) -- (39,448) Advisor Class shares (64,936) (5,242) -- -- Class A shares (1,484,184) (1,423,315) -- (121,771) Class B shares (28,880) (44,542) -- -- Class C shares (3,671) (3,968) -- -- Distributions from net realized gains Common Class shares (19,226) (56,140) (2,480,206) (4,176,400) Advisor Class shares (600,700) -- -- -- Class A shares (8,164,902) (2,083,702) (9,958,591) (12,892,153) Class B shares (798,605) (529,887) (1,256,226) (1,785,919) Class C shares (94,482) (42,341) (484,122) (400,677) ------------- ------------- ------------- ------------- Net decrease in net assets resulting from dividends and distributions (11,263,700) (4,206,468) (14,179,145) (19,416,368) ------------- ------------- ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS (Note 5) Proceeds from sale of shares 13,835,537 34,320,155 39,333,351 76,651,039 Exchange value of shares due to merger -- 201,050,472 -- -- Reinvestment of dividends and distributions 10,402,720 3,640,201 13,222,116 18,257,578 Net asset value of shares redeemed (48,331,987) (50,042,947) (44,819,218) (68,252,985) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets from capital share transactions (24,093,730) 188,967,881 7,736,249 26,655,632 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets (10,649,100) 214,447,747 24,477,393 46,407,424 NET ASSETS Beginning of period 362,658,066 148,210,319 267,092,828 220,685,404 ------------- ------------- ------------- ------------- End of period $ 352,008,966 $ 362,658,066 $ 291,570,221 $ 267,092,828 ============= ============= ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 45,349 $ 197,878 $ (555,443) $ -- ============= ============= ============= =============
See Accompanying Notes to Financial Statements. 16 CREDIT SUISSE LARGE CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2004 --------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000(1) -------------- --------- --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 18.61 $ 16.82 $ 19.95 $ 24.63 $ 22.44 -------------- --------- --------- --------- --------- INVESTMENT OPERATIONS Net investment income(2) 0.11 0.14 0.17 0.19 0.02 Net gain (loss) on investments (both realized and unrealized) 1.16 2.10 (1.45) (2.52) 2.21 -------------- --------- --------- --------- --------- Total from investment operations 1.27 2.24 (1.28) (2.33) 2.23 -------------- --------- --------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.12) (0.14) (0.19) (0.22) (0.04) Distributions from net realized gains (0.50) (0.31) (1.66) (2.13) -- -------------- --------- --------- --------- --------- Total dividends and distributions (0.62) (0.45) (1.85) (2.35) (0.04) -------------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 19.26 $ 18.61 $ 16.82 $ 19.95 $ 24.63 ============== ========= ========= ========= ========= Total return(3) 6.88% 13.63% (7.63)% (10.51)% 9.96% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 672 $ 737 $ 3,061 $ 3,421 $ 96 Ratio of expenses to average net assets 0.93%(4) 1.24% 1.03% 1.03% 0.43%(4) Ratio of net investment income to average net assets 1.11%(4) 0.82% 0.92% 0.86% 0.07%(4) Decrease reflected in above operating expense ratios due to waivers -- -- 0.29% 0.18% -- Portfolio turnover rate 26% 53% 28% 38% 55%
(1) For the period August 1, 2000 (inception date) through October 31, 2000. (2) Per share information is calculated using the average shares outstanding method. (3) Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (4) Annualized. See Accompanying Notes to Financial Statements. 17 (For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE PERIOD APRIL 30, 2004 ENDED (UNAUDITED) OCTOBER 31, 2003(1) -------------- ------------------- PER SHARE DATA Net asset value, beginning of period $ 18.71 $ 17.84 -------------- ------------------- INVESTMENT OPERATIONS Net investment income(2) 0.06 0.04 Net gain on investments (both realized and unrealized) 1.17 0.83 -------------- ------------------- Total from investment operations 1.23 0.87 -------------- ------------------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.07) (0.00)(3) Distributions from net realized gains (0.50) -- -------------- ------------------- Total dividends and distributions (0.57) -- -------------- ------------------- NET ASSET VALUE, END OF PERIOD $ 19.37 $ 18.71 ============== =================== Total return(4) 6.64% 4.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 13,089 $ 22,336 Ratio of expenses to average net assets(5) 1.43% 1.49% Ratio of net investment income to average net assets(5) 0.64% 0.51% Portfolio turnover rate 26% 53%
(1) For the period June 6, 2003 (inception date) through October 31, 2003. (2) Per share information is calculated using the average shares outstanding method. (3) This amount represents less than $(0.01) per share. (4) Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (5) Annualized. See Accompanying Notes to Financial Statements. 18 (For a Class A Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2004 --------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 -------------- --------- --------- --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 18.68 $ 16.83 $ 19.96 $ 24.62 $ 23.49 $ 22.60 -------------- --------- --------- --------- --------- --------- INVESTMENT OPERATIONS Net investment income(1) 0.08 0.14 0.17 0.21 0.16 0.12 Net gain (loss) on investments (both realized and unrealized) 1.16 2.15 (1.45) (2.55) 1.78 2.87 -------------- --------- --------- --------- --------- --------- Total from investment operations 1.24 2.29 (1.28) (2.34) 1.94 2.99 -------------- --------- --------- --------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.09) (0.13) (0.19) (0.19) (0.12) (0.09) Distributions from net realized gains (0.50) (0.31) (1.66) (2.13) (0.69) (2.01) -------------- --------- --------- --------- --------- --------- Total dividends and distributions (0.59) (0.44) (1.85) (2.32) (0.81) (2.10) -------------- --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 19.33 $ 18.68 $ 16.83 $ 19.96 $ 24.62 $ 23.49 ============== ========= ========= ========= ========= ========= Total return(2) 6.72% 13.97% (7.63)% (10.48)% 8.44% 14.37% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 305,497 $ 306,410 $ 114,733 $ 133,665 $ 162,871 $ 174,213 Ratio of expenses to average net assets 1.18%(3) 1.24% 1.03% 1.04% 1.08% 1.11% Ratio of net investment income to average net assets 0.85%(3) 0.78% 0.90% 0.94% 0.71% 0.52% Decrease reflected in above operating expense ratios due to waivers -- -- 0.28% 0.10% -- -- Portfolio turnover rate 26% 53% 28% 38% 55% 25%
(1) Per share information is calculated using the average shares outstanding method. (2) Total returns are historical and assume changes in share price, reinvestment of all dividends and distributions, and no sales charge. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (3) Annualized. See Accompanying Notes to Financial Statements. 19 (For a Class B Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2004 --------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 -------------- --------- --------- --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 18.46 $ 16.66 $ 19.78 $ 24.44 $ 23.37 $ 22.55 -------------- --------- --------- --------- --------- --------- INVESTMENT OPERATIONS Net investment income (loss)(1) 0.01 0.01 0.03 0.04 -- (0.04) Net gain (loss) on investments (both realized and unrealized) 1.15 2.13 (1.43) (2.52) 1.76 2.88 -------------- --------- --------- --------- --------- --------- Total from investment operations 1.16 2.14 (1.40) (2.48) 1.76 2.84 -------------- --------- --------- --------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.02) (0.03) (0.06) (0.05) -- (0.01) Distributions from net realized gains (0.50) (0.31) (1.66) (2.13) (0.69) (2.01) -------------- --------- --------- --------- --------- --------- Total dividends and distributions (0.52) (0.34) (1.72) (2.18) (0.69) (2.02) -------------- --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 19.10 $ 18.46 $ 16.66 $ 19.78 $ 24.44 $ 23.37 ============== ========= ========= ========= ========= ========= Total return(2) 6.35% 13.07% (8.29)% (11.00)% 7.66% 13.66% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 28,570 $ 29,696 $ 28,312 $ 33,087 $ 41,194 $ 41,144 Ratio of expenses to average net assets 1.93%(3) 1.99% 1.78% 1.79% 1.80% 1.81% Ratio of net investment income (loss) to average net assets 0.11%(3) 0.06% 0.15% 0.19% (0.01)% (0.18)% Decrease reflected in above operating expense ratios due to waivers -- -- 0.27% 0.10% -- -- Portfolio turnover rate 26% 53% 28% 38% 55% 25%
(1) Per share information is calculated using the average shares outstanding method. (2) Total returns are historical and assume changes in share price, reinvestment of all dividends and distributions, and no sales charge. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (3) Annualized. See Accompanying Notes to Financial Statements. 20 (For a Class C Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2004 --------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000(1) -------------- --------- --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 18.38 $ 16.58 $ 19.71 $ 24.39 $ 20.87 -------------- --------- --------- --------- --------- INVESTMENT OPERATIONS Net investment income (loss)(2) 0.01 0.01 0.03 0.03 (0.01) Net gain (loss) on investments (both realized and unrealized) 1.15 2.13 (1.43) (2.51) 3.56 -------------- --------- --------- --------- --------- Total from investment operations 1.16 2.14 (1.40) (2.48) 3.55 -------------- --------- --------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.02) (0.03) (0.07) (0.07) (0.03) Distributions from net realized gains (0.50) (0.31) (1.66) (2.13) -- -------------- --------- --------- --------- --------- Total dividends and distributions (0.52) (0.34) (1.73) (2.20) (0.03) -------------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 19.02 $ 18.38 $ 16.58 $ 19.71 $ 24.39 ============== ========= ========= ========= ========= Total return(3) 6.38% 13.14% (8.35)% (11.07)% 17.02% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 4,180 $ 3,479 $ 2,104 $ 1,916 $ 496 Ratio of expenses to average net assets 1.93%(4) 1.99% 1.78% 1.79% 1.28%(4) Ratio of net investment income (loss) to average net assets 0.11%(4) 0.06% 0.16% 0.13% (0.03)%(4) Decrease reflected in above operating expense ratios due to waivers -- -- 0.28% 0.10% -- Portfolio turnover rate 26% 53% 28% 38% 55%
(1) For the period February 28, 2000 (inception date) through October 31, 2000. (2) Per share information is calculated using the average shares outstanding method. (3) Total returns are historical and assume changes in share price, reinvestment of all dividends and distributions, and no sales charge. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (4) Annualized. See Accompanying Notes to Financial Statements. 21 CREDIT SUISSE SMALL CAP VALUE FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2004 --------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000(1) -------------- --------- --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 20.02 $ 18.56 $ 21.07 $ 22.62 $ 21.35 -------------- --------- --------- --------- --------- INVESTMENT OPERATIONS Net investment income (loss)(2) (0.03) (0.02) 0.02 0.04 0.02 Net gain on investments (both realized and unrealized) 2.30 3.08 0.31 1.72 1.25 -------------- --------- --------- --------- --------- Total from investment operations 2.27 3.06 0.33 1.76 1.27 -------------- --------- --------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income -- (0.01) (0.05) (0.09) -- Distributions from net realized gains (1.06) (1.59) (2.79) (3.22) -- -------------- --------- --------- --------- --------- Total dividends and distributions (1.06) (1.60) (2.84) (3.31) -- -------------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 21.23 $ 20.02 $ 18.56 $ 21.07 $ 22.62 ============== ========= ========= ========= ========= Total return(3) 11.62% 17.75% 0.61% 9.79% 5.95% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 51,555 $ 47,969 $ 45,075 $ 30,667 $ 105 Ratio of expenses to average net assets 1.41%(4) 1.48% 1.32% 1.33% 0.34%(4) Ratio of net investment income (loss) to average net assets (0.30)%(4) (0.10)% 0.12% 0.18% 0.09%(4) Decrease reflected in above operating expense ratios due to waivers -- 0.04% 0.14% 0.02% -- Portfolio turnover rate 19% 30% 18% 54% 42%
(1) For the period August 1, 2000 (inception date) through October 31, 2000. (2) Per share information is calculated using the average shares outstanding method. (3) Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (4) Annualized. See Accompanying Notes to Financial Statements. 22 (For a Class A Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2004 --------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 -------------- --------- --------- --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 20.10 $ 18.62 $ 21.09 $ 22.54 $ 20.52 $ 19.54 -------------- --------- --------- --------- --------- --------- INVESTMENT OPERATIONS Net investment income (loss)(1) (0.03) (0.02) 0.02 0.05 0.06 0.06 Net gain on investments (both realized and unrealized) 2.30 3.10 0.33 1.76 4.05 1.01 -------------- --------- --------- --------- --------- --------- Total from investment operations 2.27 3.08 0.35 1.81 4.11 1.07 -------------- --------- --------- --------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income -- (0.01) (0.03) (0.04) (0.04) (0.07) Distributions from net realized gains (1.06) (1.59) (2.79) (3.22) (2.05) (0.02) -------------- --------- --------- --------- --------- --------- Total dividends and distributions (1.06) (1.60) (2.82) (3.26) (2.09) (0.09) -------------- --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 21.31 $ 20.10 $ 18.62 $ 21.09 $ 22.54 $ 20.52 ============== ========= ========= ========= ========= ========= Total return(2) 11.57% 17.80% 0.71% 9.70% 21.69% 5.47% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 206,880 $ 188,318 $ 151,340 $ 199,213 $ 188,501 $ 188,192 Ratio of expenses to average net assets 1.41%(3) 1.48% 1.32% 1.33% 1.39% 1.37% Ratio of net investment income (loss) to average net assets (0.30)%(3) (0.11)% 0.11% 0.25% 0.28% 0.33% Decrease reflected in above operating expense ratios due to waivers -- 0.04% 0.12% 0.02% -- -- Portfolio turnover rate 19% 30% 18% 54% 42% 30%
(1) Per share information is calculated using the average shares outstanding method. (2) Total returns are historical and assume changes in share price, reinvestment of all dividends and distributions, and no sales charge. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (3) Annualized. See Accompanying Notes to Financial Statements. 23 (For a Class B Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2004 --------------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000 1999 -------------- --------- --------- --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 18.93 $ 17.74 $ 20.33 $ 21.95 $ 20.13 $ 19.23 -------------- --------- --------- --------- --------- --------- INVESTMENT OPERATIONS Net investment loss(1) (0.10) (0.15) (0.12) (0.10) (0.09) (0.14) Net gain on investments (both realized and unrealized) 2.16 2.93 0.32 1.70 3.96 1.06 -------------- --------- --------- --------- --------- --------- Total from investment operations 2.06 2.78 0.20 1.60 3.87 0.92 -------------- --------- --------- --------- --------- --------- LESS DISTRIBUTIONS Distributions from net realized gains (1.06) (1.59) (2.79) (3.22) (2.05) (0.02) -------------- --------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 19.93 $ 18.93 $ 17.74 $ 20.33 $ 21.95 $ 20.13 ============== ========= ========= ========= ========= ========= Total return(2) 11.16% 16.88% (0.08)% 8.88% 20.80% 4.75% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 22,585 $ 22,669 $ 19,999 $ 17,818 $ 17,255 $ 19,257 Ratio of expenses to average net assets 2.16%(3) 2.23% 2.07% 2.08% 2.10% 2.07% Ratio of net investment loss to average net assets (1.05)%(3) (0.86)% (0.63)% (0.50)% (0.43)% (0.71)% Decrease reflected in above operating expense ratios due to waivers -- 0.04% 0.13% 0.02% -- -- Portfolio turnover rate 19% 30% 18% 54% 42% 30%
(1) Per share information is calculated using the average shares outstanding method. (2) Total returns are historical and assume changes in share price, reinvestment of all distributions, and no sales charge. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (3) Annualized. See Accompanying Notes to Financial Statements. 24 (For a Class C Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2004 --------------------------------------------------- (UNAUDITED) 2003 2002 2001 2000(1) -------------- --------- --------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 18.87 $ 17.69 $ 20.28 $ 21.94 $ 17.96 -------------- --------- --------- --------- --------- INVESTMENT OPERATIONS Net investment loss(2) (0.10) (0.15) (0.12) (0.11) (0.07) Net gain on investments (both realized and unrealized) 2.16 2.92 0.32 1.67 4.05 -------------- --------- --------- --------- --------- Total from investment operations 2.06 2.77 0.20 1.56 3.98 -------------- --------- --------- --------- --------- LESS DISTRIBUTIONS Distributions from net realized gains (1.06) (1.59) (2.79) (3.22) -- -------------- --------- --------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 19.87 $ 18.87 $ 17.69 $ 20.28 $ 21.94 ============== ========= ========= ========= ========= Total return(3) 11.20% 16.87% (0.07)% 8.93% 22.16% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 10,550 $ 8,138 $ 4,271 $ 1,481 $ 220 Ratio of expenses to average net assets 2.16%(4) 2.23% 2.07% 2.08% 1.42%(4) Ratio of net investment loss to average net assets (1.05)%(4) (0.86)% (0.63)% (0.52)% (0.33)%(4) Decrease reflected in above operating expense ratios due to waivers -- 0.04% 0.14% 0.02% -- Portfolio turnover rate 19% 30% 18% 54% 42%
(1) For the period February 28, 2000 (inception date) through October 31, 2000. (2) Per share information is calculated using the average shares outstanding method. (3) Total returns are historical and assume changes in share price, reinvestment of all distributions, and no sales charge. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. (4) Annualized. See Accompanying Notes to Financial Statements. 25 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS April 30, 2004 (unaudited) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Credit Suisse Capital Funds (the "Trust") covered in this report are comprised of Credit Suisse Large Cap Value Fund ("Large Cap Value") and Credit Suisse Small Cap Value Fund ("Small Cap Value"), (each a "Fund" and collectively, the "Funds"). The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust was organized under the laws of the Commonwealth of Massachusetts as a business trust on November 26, 1985. Each Fund is classified as diversified. Investment objectives for each Fund are as follows: Large Cap Value seeks long-term capital appreciation and continuity of income; Small Cap Value seeks a high level of growth of capital. Large Cap Value offers five classes of shares: Common Class shares, Advisor Class shares, Class A shares, Class B shares and Class C shares. Small Cap Value offers four classes of shares: Common Class shares, Class A shares, Class B shares and Class C shares. Effective December 12, 2001, Small Cap Value closed the Common Class to new investors. Effective December 12, 2001, Large Cap Value closed the Common Class to new investments, except for reinvestment of dividends. Large Cap Value's Common Class shareholders as of the close of business on December 12, 2001 may continue to hold Common Class shares but may not add to their accounts. Although no further shares can be purchased, Large Cap Value's shareholders can redeem their Common Class shares through any available method. Each class of shares in each Fund represents an equal pro rata interest in each Fund, except that they bear different expenses, which reflect the differences in the range of services provided to them. Class A shares of each Fund are sold subject to a front-end sales charge of up to 5.75%. Class B shares of each Fund are sold subject to a contingent deferred sales charge which declines from 4% to zero depending on the period of time the shares are held. Class C shares of each Fund are sold subject to a contingent deferred sales charge of 1.00% if redeemed within the first year of purchase. Effective as of the close of business on June 6, 2003, Large Cap Value acquired all of the net assets of the Credit Suisse Strategic Value Fund ("Strategic Value") in a tax-free exchange of shares. The Fund was also the accounting survivor in the tax-free exchange. The shares exchanged were 9,909,161 Class A shares (valued at $176,779,318) of Large Cap Value for 14,963,301 Common Class shares of Strategic Value, 1,330,026 Advisor Class shares (valued at $23,727,605) of Large Cap Value for 2,012,115 Advisor Class shares of Strategic Value, 17,274 Class A shares (valued at $308,174) of Large Cap Value for 26,097 Class A shares of Strategic Value, 26 4,229 Class B shares (valued at $74,648) of Large Cap Value for 6,370 Class B shares of Strategic Value, and 9,153 Class C shares (valued at $160,727) of Large Cap Value for 13,720 Class C shares of Strategic Value. Strategic Value's net assets of $201,050,472 at that date, which included $23,663,867 of unrealized appreciation, were combined with those of Large Cap Value. The aggregate net assets of Strategic Value and Large Cap Value immediately before the acquisition were $201,050,472, and $157,976,111, respectively, and the combined net assets of Large Cap Value after the acquisition were $359,026,583. A) SECURITY VALUATION -- The net asset value of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the "Exchange") on each day the Exchange is open for business. Each Fund's equity investments are valued at market value, which is generally determined using the closing price on the exchange or market on which the security is primarily traded at the time of valuation (the "Valuation Time"). If no sales are reported, equity investments are generally valued at the most recent bid quotation as of the Valuation Time or at the lowest asked quotation in the case of a short sale of securities. Debt securities with a remaining maturity greater than 60 days are valued in accordance with the price supplied by a pricing service, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless it is determined that this method would not represent fair value. Securities and other assets for which market quotations are not readily available, or whose values have been materially affected by events occurring before the Funds' Valuation Time but after the close of the securities' primary markets, are valued at fair value as determined in good faith by, or under the direction of, the Board of Trustees under procedures established by the Board of Trustees. The Funds may utilize a service provided by an independent third party which has been approved by the Board of Trustees to fair value certain Funds' portfolio securities. B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Certain expenses are class-specific and vary by class. Income, expenses (excluding class-specific expenses) and realized/unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares of that class. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. 27 C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income, if any, are declared and paid quarterly by Large Cap Value and at least annually by Small Cap Value. Distributions of net realized capital gains, if any, are declared and paid at least annually by each Fund. However, to the extent that a net realized capital gain can be reduced by a capital loss carryforward, such gain will not be distributed. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America (GAAP). D) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is each Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, and make the requisite distributions to its shareholders which will be sufficient to relieve it from federal income and excise taxes. E) USE OF ESTIMATES -- The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. F) SHORT-TERM INVESTMENTS -- The Funds, together with other funds/portfolios advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect, wholly-owned subsidiary of Credit Suisse Group, pool available cash into either a short-term variable rate time deposit issued by State Street Bank and Trust Company ("SSB"), the Funds' custodian, or a money market fund advised by CSAM. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment. G) SECURITIES LENDING -- Loans of securities are required at all times to be secured by collateral at least equal to 102% of the market value of domestic securities on loan (including any accrued interest thereon) and 105% of the market value of foreign securities on loan (including any accrued interest thereon). Cash collateral received by the Funds in connection with securities lending activity may be pooled together with cash collateral for other funds/portfolios advised by CSAM and may be invested in a variety of investments, including certain CSAM-advised funds, funds advised by SSB, the Funds' securities lending agent or money market instruments. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. 28 The market value of securities on loan to brokers and the value of collateral held by each Fund with respect to such loans at April 30, 2004 are as follows:
MARKET VALUE OF VALUE OF FUND SECURITIES LOANED COLLATERAL RECEIVED ---- ----------------- ------------------- Large Cap Value $ 16,532,009 $ 17,427,325 Small Cap Value 35,092,169 36,227,629
Prior to March 17, 2004, Credit Suisse First Boston ("CSFB"), an affiliate of CSAM, had been engaged by the Funds to act as the Funds' securities lending agent. Effective March 17, 2004, SSB has been engaged by the Funds to act as the Funds' securities lending agent. The Funds' securities lending arrangement provides that the Funds and SSB will share the net income earned from securities lending activities with each Fund receiving 70% and SSB receiving 30% of the earnings from the investment of cash collateral or any other securities lending income in accordance with the provisions of the securities lending agency agreement. Securities lending income is accrued as earned. H) OTHER -- Large Cap Value may invest up to 10% and Small Cap Value may invest up to 15% of its net assets in restricted and other illiquid securities. Non-publicly traded securities may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from such sales could differ from the price originally paid by the Funds or the current carrying values, and the difference could be material. NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES CSAM serves as investment adviser for the Funds. For its investment advisory services, CSAM is entitled to receive the following fees, computed daily and payable monthly, on each Fund's average daily net assets as follows:
FUND ANNUAL RATE ---- ----------- Large Cap Value 0.75% of average daily net assets up to and including $75 million 0.50% of average daily net assets in excess of $75 million Small Cap Value 0.875% of first $100 million of average daily net assets 0.75% of next $100 million of average daily net assets 0.625% of average daily net assets over $200 million
29 For the six months ended April 30, 2004, investment advisory fees earned for each Fund were as follows:
FUND GROSS ADVISORY FEE ---- ------------------ Large Cap Value $ 1,018,803 Small Cap Value 1,089,388
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of CSAM, and SSB serve as co-administrators to the Funds. For its co-administrative services, CSAMSI currently receives a fee calculated at an annual rate of 0.10% of each Fund's average daily net assets. For the six months ended April 30, 2004, co-administrative services fees earned by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE ---- --------------------- Large Cap Value $ 185,113 Small Cap Value 144,466
For its co-administrative services SSB receives a fee, exclusive of out-of-pocket expenses, based upon the following fee schedule calculated in total for all the Credit Suisse funds/portfolios co-administered by SSB and allocated based upon relative average net assets of each fund/portfolio subject to an annual minimum fee.
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- First $5 billion 0.050% of average daily net assets Next $5 billion 0.035% of average daily net assets Over $10 billion 0.020% of average daily net assets
For the six months ended April 30, 2004, co-administrative services fees earned by SSB (including out-of-pocket fees) were as follows:
FUND CO-ADMINISTRATION FEE ---- --------------------- Large Cap Value $ 102,368 Small Cap Value 81,029
In addition to serving as each Fund's co-administrator, CSAMSI currently serves as distributor of each Fund's shares. Pursuant to distribution plans adopted by each Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives fees for its distribution services. This fee is calculated at an annual rate of 0.25% of the average daily net assets of the Common Class of Small Cap Value and Class A shares of each Fund. Prior to November 1, 2003, Common Class shares of Large Cap Value paid such fees at an annual rate of 30 0.50% of its average daily net assets. Advisor Class shares of Large Cap Value may pay this fee at an annual rate not to exceed 0.75% of such classes average daily assets; such fee is currently calculated at the annual rate of 0.50% of the average daily net assets of such class. For the Class B and Class C shares, the fee is calculated at annual rate of 1.00% of average daily net assets of such classes. Effective November 1, 2003, CSAMSI no longer receives 12b-1 fees on Common Class shares of Large Cap Value. Certain brokers, dealers and financial representatives provide transfer agent related services to the Funds, and receive compensation from CSAM. CSAM is then reimbursed by the Funds. For the six months ended April 30, 2004, the Funds reimbursed CSAM the following amounts, which are included in each Fund's transfer agent expense as follows:
FUND AMOUNT ---- ------ Large Cap Value $ 454 Small Cap Value 34,733
For the six months ended April 30, 2004, CSAMSI and its affiliates advised the Funds that they retained the following amounts from commissions earned on the sale of the Funds' Class A shares:
FUND AMOUNT ---- ------ Large Cap Value $ 18,207 Small Cap Value 15,998
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the Funds to provide certain financial printing and fulfillment services. For the six months ended April 30, 2004, Merrill was paid for its services by the Funds as follows:
FUND AMOUNT ---- ------ Large Cap Value $ 7,804 Small Cap Value 7,804
NOTE 3. LINE OF CREDIT The Funds, together with other funds/portfolios advised by CSAM (collectively, the "Participating Funds"), participates in a $75 million committed, unsecured line of credit facility ("Credit Facility") for temporary or emergency purposes with Deutsche Bank, A.G. as administrative agent and syndication agent and SSB as operations agent. Under the terms of the Credit 31 Facility, the Participating Funds pay an aggregate commitment fee at a rate of 0.10% per annum on the average unused amount of the Credit Facility, which is allocated among the Participating Funds in such manner as is determined by the governing Boards of the Participating Funds. In addition, the Participating Funds pay interest on borrowings at the Federal Funds rate plus 0.50%. At April 30, 2004, and during the six months ended April 30, 2004, the Funds had no borrowings under the Credit Facility. NOTE 4. PURCHASES AND SALES OF SECURITIES For the six months ended April 30, 2004, purchases and sales of investment securities (excluding short-term investments) and U.S. Government and Agency Obligations were as follows:
U.S. GOVERNMENT INVESTMENTS AND AGENCY OBLIGATIONS ---------------------------- ------------------------ PORTFOLIO PURCHASES SALES PURCHASES SALES --------- ------------ ------------- --------- ------------ Large Cap Value $ 96,858,079 $ 121,976,423 $ -- $ 4,253,010 Small Cap Value 67,984,899 52,522,945 -- --
At April 30, 2004, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized appreciation from investments was as follows:
GROSS GROSS IDENTIFIED UNREALIZED UNREALIZED NET UNREALIZED FUND COST APPRECIATION DEPRECIATION APPRECIATION ---- -------------- ------------- -------------- -------------- Large Cap Value $ 307,435,481 $ 68,190,344 $ (7,576,090) $ 60,614,254 Small Cap Value 247,900,007 82,681,611 (2,800,007) 79,881,604
NOTE 5. CAPITAL SHARE TRANSACTIONS Large Cap Value is authorized to issue an unlimited number of full and fractional shares of beneficial interest, $0.001 par value per share, of which an unlimited number of shares are classified as Common Class shares, Advisor Class shares, Class A shares, Class B shares and Class C shares. Small Cap Value is authorized to issue an unlimited number of full and fractional shares of beneficial interest, $.001 par value per share, of which an unlimited 32 number of shares are classified as Common Class shares, Class A shares, Class B shares and Class C shares. Transactions in capital shares of the Funds were as follows:
LARGE CAP VALUE ---------------------------------------------------------------- COMMON CLASS ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold -- $ -- 1,352 $ 23,338 Shares issued in reinvestment of dividends and distributions 1,137 21,601 4,402 72,572 Shares redeemed (5,840) (113,097) (148,101) (2,636,135) ------------- ------------- ------------- ------------- Net decrease (4,703) $ (91,496) (142,347) $ (2,540,225) ============= ============= ============= ============= LARGE CAP VALUE ---------------------------------------------------------------- ADVISOR CLASS ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE PERIOD ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003(1) ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 48,426 $ 945,574 44,498 $ 805,443 Shares exchanged due to merger -- -- 1,330,026 23,727,605 Shares issued in reinvestment of dividends and distributions 34,939 665,633 293 5,242 Shares redeemed (601,323) (11,882,066) (181,215) (3,267,840) ------------- ------------- ------------- ------------- Net increase (decrease) (517,958) $ (10,270,859) 1,193,602 $ 21,270,450 ============= ============= ============= ============= LARGE CAP VALUE ---------------------------------------------------------------- CLASS A ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 573,831 $ 11,263,372 1,631,978 $ 27,951,860 Shares exchanged due to merger -- -- 9,926,435 177,087,492 Shares issued in reinvestment of dividends and distributions 468,710 8,931,838 179,017 3,006,863 Shares redeemed (1,646,979) (32,308,799) (2,149,099) (37,384,797) ------------- ------------- ------------- ------------- Net increase (decrease) (604,438) $ (12,113,589) 9,588,331 $ 170,661,418 ============= ============= ============= =============
33
LARGE CAP VALUE ---------------------------------------------------------------- CLASS B ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 42,195 $ 818,037 259,948 $ 4,319,275 Shares exchanged due to merger -- -- 4,229 74,648 Shares issued in reinvestment of dividends and distributions 37,421 701,336 31,262 512,465 Shares redeemed (192,611) (3,728,748) (386,324) (6,387,578) ------------- ------------- ------------- ------------- Net decrease (112,995) $ (2,209,375) (90,885) $ (1,481,190) ============= ============= ============= ============= LARGE CAP VALUE ---------------------------------------------------------------- CLASS C ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 41,689 $ 808,554 72,255 $ 1,220,239 Shares exchanged due to merger -- -- 9,153 160,727 Shares issued in reinvestment of dividends and distributions 4,412 82,312 2,638 43,059 Shares redeemed (15,621) (299,277) (21,597) (366,597) ------------- ------------- ------------- ------------- Net increase 30,480 $ 591,589 62,449 $ 1,057,428 ============= ============= ============= ============= SMALL CAP VALUE ---------------------------------------------------------------- COMMON CLASS ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 222,537 $ 4,702,291 870,927 $ 15,846,132 Shares issued in reinvestment of dividends and distributions 121,963 2,461,214 239,082 4,181,492 Shares redeemed (311,519) (6,540,411) (1,142,820) (20,288,729) ------------- ------------- ------------- ------------- Net increase (decrease) 32,981 $ 623,094 (32,811) $ (261,105) ============= ============= ============= ============= SMALL CAP VALUE ---------------------------------------------------------------- CLASS A ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 1,491,818 $ 31,521,563 2,925,201 $ 53,065,536 Shares issued in reinvestment of dividends and distributions 461,139 9,342,671 691,170 12,130,136 Shares redeemed (1,615,312) (34,363,474) (2,374,821) (42,655,211) ------------- ------------- ------------- ------------- Net increase 337,645 $ 6,500,760 1,241,550 $ 22,540,461 ============= ============= ============= =============
34
SMALL CAP VALUE ---------------------------------------------------------------- CLASS B ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 41,800 $ 822,709 209,151 $ 3,537,721 Shares issued in reinvestment of distributions 56,846 1,080,090 94,731 1,577,261 Shares redeemed (163,065) (3,243,735) (233,802) (3,968,267) ------------- ------------- ------------- ------------- Net increase (decrease) (64,419) $ (1,340,936) 70,080 $ 1,146,715 ============= ============= ============= ============= SMALL CAP VALUE ---------------------------------------------------------------- CLASS C ---------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 115,762 $ 2,286,788 245,228 $ 4,201,650 Shares issued in reinvestment of distributions 17,853 338,141 22,210 368,689 Shares redeemed (33,802) (671,598) (77,702) (1,340,778) ------------- ------------- ------------- ------------- Net increase 99,813 $ 1,953,331 189,736 $ 3,229,561 ============= ============= ============= =============
(1) Large Cap Value Advisor Class commenced operations on June 6, 2003. On April 30, 2004, the number of shareholders that held 5% or more of the outstanding shares of each class of the Funds were as follows:
NUMBER OF APPROXIMATE PERCENTAGE FUND SHAREHOLDERS OF OUTSTANDING SHARES ---- ------------ --------------------- Large Cap Value Common Class 3 38% Advisor Class 1 97% Class A 2 20% Class C 3 22% Small Cap Value Common Class 3 63% Class C 1 8%
Some of the shareholders are omnibus accounts, which hold shares on behalf of individual shareholders. 35 NOTE 6. CONTINGENCIES In the normal course of business, the Funds may provide general indemnifications pursuant to certain contracts and organizational documents. The Funds' maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote. 36 CREDIT SUISSE FUNDS PRIVACY POLICY NOTICE (UNAUDITED) IMPORTANT PRIVACY CHOICES FOR CONSUMERS We are committed to maintaining the privacy of every current and prospective customer. We recognize that you entrust important personal information to us, and we wish to assure you that we take seriously our responsibilities in protecting and safeguarding this information. In connection with making available investment products and services to current and potential customers, we may obtain nonpublic personal information about you. This information may include your name, address, e-mail address, social security number, account number, assets, income, financial situation, transaction history and other personal information. We may collect nonpublic information about you from the following sources: - Information we receive on applications, forms, questionnaires, web sites, agreements or in the course of establishing or maintaining a customer relationship; and - Information about your transactions with us, our affiliates, or others. We do not disclose any nonpublic personal information about our customers or former customers to anyone, except with your consent or as otherwise permitted by law. RESTRICT INFORMATION SHARING WITH AFFILIATES: In cases where we believe that additional products and services may be of interest to you, we may share the information described above with our affiliates unless you say "No." / / No, please do not share personal and financial information with your affiliated companies. [If you check this box, you must send this notice back to us with your name, address and account number to Credit Suisse Funds, 466 Lexington Avenue, New York, New York 10017.] We may also disclose this information to firms that perform services on our behalf. These agents and service providers are required to treat the information confidentially and use it only for the purpose for which it is provided. We restrict access to nonpublic personal information about you to those employees, agents or other parties who need to know that information to provide products or services to you or in connection with your investments with or through us. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information. NOTE: THIS NOTICE IS PROVIDED TO CLIENTS AND PROSPECTIVE CLIENTS OF CREDIT SUISSE ASSET MANAGEMENT, LLC ("CSAM"), CSAM CAPITAL INC., AND CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., AND SHAREHOLDERS AND PROSPECTIVE SHAREHOLDERS IN CSAM-SPONSORED AND-ADVISED INVESTMENT COMPANIES, INCLUDING CREDIT SUISSE FUNDS, AND OTHER CONSUMERS AND CUSTOMERS, AS APPLICABLE. THIS NOTICE IS NOT INTENDED TO BE INCORPORATED IN ANY OFFERING MATERIALS BUT IS MERELY A STATEMENT OF OUR CURRENT PRIVACY POLICY, AND MAY BE AMENDED FROM TIME TO TIME UPON NOTICE TO YOU. THIS NOTICE IS DATED AS OF MAY 19, 2004. 37 CREDIT SUISSE FUNDS PROXY VOTING (UNAUDITED) The policies and procedures that each Fund uses to determine how to vote proxies relating to their portfolio securities are available: - By calling 1-800-927-2874 - On the Funds' website, www.csam.com/us - On the website of the Securities and Exchange Commission, http://www.sec.gov. 38 This page intentionally left blank This page intentionally left blank P.O. BOX 55030, BOSTON, MA 02205-5030 [CREDIT SUISSE ASSET MANAGEMENT LOGO] 800-927-2874 - www.csam.com/us CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. CSVAL-3-0404 ITEM 2. CODE OF ETHICS. This item is inapplicable to a semi-annual report on Form N-CSR. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. This item is inapplicable to a semi-annual report on Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. This item is inapplicable to a semi-annual report on Form N-CSR. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to the registrant. ITEM 6. SCHEDULE OF INVESTMENTS Form N-CSR disclosure requirement not yet effective with respect to the registrant. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to the registrant. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to the registrant. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Nominating Committee recommends Board member candidates. Shareholders of the registrant may also submit nominees that will be considered by the Committee. Recommendations should be mailed to the registrant's Secretary, c/o Credit Suisse Asset Management, LLC, 466 Lexington Avenue, New York, NY 10017. Any submission should include at a minimum the following information: the name, age, business address, residence address and principal occupation or employment of such individual; the class, series and number of shares of the registrant that are beneficially owned by such individual; the date such shares were acquired and the investment intent of such acquisition; whether such shareholder believes such individual is, or is not, an "interested person" of the registrant (as defined in the Investment Company Act of 1940) and information regarding such individual that is sufficient, in the Committee's discretion, to make such determination; and all other information relating to such individual that is required to be disclosed in solicitation of proxies for election of directors in an election contest (even if an election contest is not involved) or is otherwise required pursuant to the rules for proxy materials under the Securities Exchange Act of 1934. ITEM 10. CONTROLS AND PROCEDURES. (a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. (b) There were no changes in registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant's last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Not applicable. (a)(2) The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report. (a)(3) Not applicable. (b) The certifications of the registrant as required by Rule 30a-2(b) under the Act are an exhibit to this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CREDIT SUISSE CAPITAL FUNDS /s/ Joseph D. Gallagher ----------------------- Name: Joseph D. Gallagher Title: Chief Executive Officer Date: July 6, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. /s/ Joseph D. Gallagher ----------------------- Name: Joseph D. Gallagher Title: Chief Executive Officer Date: July 6, 2004 /s/ Michael A. Pignataro ------------------------ Name: Michael A. Pignataro Title: Chief Financial Officer Date: July 6, 2004