N-30D 1 a2100087zn-30d.txt N-30D [CREDIT SUISSE ASSET MANAGEMENT LOGO] CREDIT SUISSE FUNDS ANNUAL REPORT OCTOBER 31, 2002 - CREDIT SUISSE FIXED INCOME FUND MORE COMPLETE INFORMATION ABOUT THE FUND, INCLUDING CHARGES AND EXPENSES, IS PROVIDED IN THE PROSPECTUS, WHICH MUST PRECEDE OR ACCOMPANY THIS DOCUMENT AND WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING. YOU MAY OBTAIN ADDITIONAL COPIES BY CALLING 800-927-2674 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 10017-3147. CREDIT SUISSE FUNDS ARE ADVISED BY CREDIT SUISSE ASSET MANAGEMENT, LLC. THE FUND'S INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE. RETURNS INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. THE VIEWS OF THE FUND'S MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND THE PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF OCTOBER 31, 2002; THESE VIEWS AND PORTFOLIO 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. CREDIT SUISSE FIXED INCOME FUND ANNUAL INVESTMENT ADVISER'S REPORT October 31, 2002 December 2, 2002 Dear Shareholder: For the 12 months ended October 31, 2002, the share classes of Credit Suisse Fixed Income Fund(1) (the "Fund") generated returns as follows: Common shares declined 4.07%, Advisor shares declined 4.31%, Class A shares(2) declined 4.27%, Class B shares(2) declined 5.02%, and Class C shares(2) declined 5.03%. By contrast, the Lehman Brothers U.S. Aggregate Bond Index(3) gained 5.89% and the Lehman Brothers Intermediate Government/Corporate Bond Index(4) 5.49%. We attribute the Fund's performance to several factors: - At a number of points during the fiscal year, activity in the broad fixed income market exhibited a classic "flight to quality" pattern in which highest-quality instruments like U.S. Treasury issues and government agency securities thrived, while comparatively risky sectors endured heavy selling. Our holdings in non-Treasury categories like investment-grade corporate bonds, high yield and emerging market debt dampened the Fund's overall return accordingly. - Early in 2002, the unfolding Enron scandal triggered anxiety about questionable accounting practices and corporate governance issues across financial markets. Unfortunately for the Fund, we held above-market positions in the bonds of a handful of telecommunications and energy companies that were tarred by the broad strokes of the Enron brush. - In the second half of the year, performance suffered from our security selection in the telecom and energy sectors, as well as our small allocation to high yield. Our analysis at the time concluded that telecom's historically generous yields offered satisfactory compensation for the fundamental credit risk of the underlying issuers, but the sector nonetheless crumbled under the weight of accounting-based improprieties by companies like WorldCom and Qwest Communications International. [Note: at October 31, the Fund did not own securities of WorldCom or Qwest.] Bonds of a number of energy companies, which experienced problems much like those in telecom, similarly declined. - We had exposure (albeit low) to Argentine sovereign debt and certain high yield issuers in late 2001, at a time when each fared poorly. 1 On the positive side of the ledger, we added value within our approach to securitized debt. This was most pronounced in mortgage-backed securities (MBS), in which our sector allocation and security selection were particularly effective. We tended to focus our MBS holdings on high-coupon issues that were protected from prepayment, which benefited from their comparatively low availability as interest rates fell. Not only did this enhance the Fund's ability to gain from a decline in interest rates, but these characteristics were also especially desirable to MBS buyers in a period of falling market-based interest rates. Our holdings' prices rose accordingly. An additional plus from our securitized approach was our position in commercial MBS, which turned out to be the benchmark's strongest subcategory in the fiscal year, by far. It's also worth noting that our holdings in corporate bonds began to meaningfully help overall performance in August, when the flow of negative news subsided and investors started to become less pessimistic than previously about the outlook for corporate credit quality. Jo Ann Corkran, Leland Crabbe, Suzanne E. Moran Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager 2 [CHART] COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE FIXED INCOME FUND(1) COMMON CLASS SHARES, THE LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX(3) AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX(4) FOR TEN YEARS. (UNAUDITED)
LEHMAN BROTHERS CREDIT SUISSE LEHMAN BROTHERS INTERMEDIATE FIXED INCOME FUND(1) U.S. AGGREGATE BOND GOVERNMENT/CORPORATE COMMON CLASS -- $ 17,938 INDEX(3) -- $ 20,552 BOND INDEX(4) -- $ 19,484 10/31/92 $ 10,000 $ 10,000 $ 10,000 11/30/92 $ 9,955 $ 10,002 $ 9,959 12/31/92 $ 10,048 $ 10,161 $ 10,088 1/31/93 $ 10,276 $ 10,356 $ 10,275 2/28/93 $ 10,476 $ 10,537 $ 10,427 3/31/93 $ 10,563 $ 10,582 $ 10,465 4/30/93 $ 10,660 $ 10,656 $ 10,547 5/31/93 $ 10,656 $ 10,670 $ 10,518 6/30/93 $ 10,816 $ 10,862 $ 10,670 7/31/93 $ 10,851 $ 10,924 $ 10,692 8/31/93 $ 10,999 $ 11,115 $ 10,851 9/30/93 $ 11,066 $ 11,145 $ 10,895 10/31/93 $ 11,158 $ 11,186 $ 10,921 11/30/93 $ 11,109 $ 11,091 $ 10,867 12/31/93 $ 11,173 $ 11,151 $ 10,912 1/31/94 $ 11,342 $ 11,302 $ 11,020 2/28/94 $ 11,252 $ 11,105 $ 10,869 3/31/94 $ 11,061 $ 10,831 $ 10,710 4/30/94 $ 10,941 $ 10,744 $ 10,641 5/31/94 $ 10,911 $ 10,743 $ 10,649 6/30/94 $ 10,914 $ 10,720 $ 10,651 7/31/94 $ 11,042 $ 10,933 $ 10,791 8/31/94 $ 11,123 $ 10,946 $ 10,822 9/30/94 $ 11,054 $ 10,785 $ 10,733 10/31/94 $ 11,091 $ 10,775 $ 10,735 11/30/94 $ 11,051 $ 10,752 $ 10,687 12/30/94 $ 11,098 $ 10,826 $ 10,722 1/31/95 $ 11,186 $ 11,040 $ 10,896 2/28/95 $ 11,379 $ 11,303 $ 11,107 3/31/95 $ 11,376 $ 11,372 $ 11,168 4/30/95 $ 11,551 $ 11,531 $ 11,297 5/31/95 $ 11,942 $ 11,977 $ 11,616 6/30/95 $ 12,035 $ 12,065 $ 11,690 7/31/95 $ 12,082 $ 12,041 $ 11,695 8/31/95 $ 12,247 $ 12,186 $ 11,792 9/29/95 $ 12,376 $ 12,305 $ 11,871 10/31/95 $ 12,515 $ 12,464 $ 12,001 11/30/95 $ 12,622 $ 12,651 $ 12,147 12/31/95 $ 12,803 $ 12,829 $ 12,267 1/31/96 $ 12,925 $ 12,913 $ 12,371 2/29/96 $ 12,807 $ 12,689 $ 12,240 3/31/96 $ 12,749 $ 12,600 $ 12,184 4/30/96 $ 12,684 $ 12,529 $ 12,149 5/31/96 $ 12,742 $ 12,504 $ 12,143 6/30/96 $ 12,815 $ 12,672 $ 12,266 7/31/96 $ 12,857 $ 12,706 $ 12,304 8/31/96 $ 12,918 $ 12,684 $ 12,318 9/30/96 $ 13,122 $ 12,905 $ 12,477 10/31/96 $ 13,358 $ 13,191 $ 12,682 11/30/96 $ 13,591 $ 13,417 $ 12,835 12/31/96 $ 13,584 $ 13,292 $ 12,766 1/31/97 $ 13,666 $ 13,333 $ 12,815 2/28/97 $ 13,765 $ 13,367 $ 12,836 3/31/97 $ 13,655 $ 13,218 $ 12,763 4/30/97 $ 13,779 $ 13,417 $ 12,907 5/31/97 $ 13,915 $ 13,544 $ 13,008 6/30/97 $ 14,080 $ 13,705 $ 13,119 7/31/97 $ 14,431 $ 14,075 $ 13,361 8/31/97 $ 14,330 $ 13,956 $ 13,310 9/30/97 $ 14,531 $ 14,162 $ 13,455 10/31/97 $ 14,660 $ 14,368 $ 13,611 11/30/97 $ 14,685 $ 14,434 $ 13,641 12/31/97 $ 14,776 $ 14,580 $ 13,752 1/31/98 $ 15,001 $ 14,766 $ 13,932 2/28/98 $ 14,947 $ 14,754 $ 13,917 3/31/98 $ 14,991 $ 14,804 $ 13,961 4/30/98 $ 15,059 $ 14,881 $ 14,027 5/31/98 $ 15,172 $ 15,023 $ 14,124 6/30/98 $ 15,292 $ 15,151 $ 14,219 7/31/98 $ 15,291 $ 15,182 $ 14,273 8/31/98 $ 15,464 $ 15,430 $ 14,543 9/30/98 $ 15,698 $ 15,791 $ 14,883 10/31/98 $ 15,605 $ 15,707 $ 14,908 11/30/98 $ 15,687 $ 15,797 $ 14,862 12/31/98 $ 15,732 $ 15,844 $ 14,920 1/31/99 $ 15,780 $ 15,957 $ 14,986 2/28/99 $ 15,586 $ 15,677 $ 14,781 3/31/99 $ 15,706 $ 15,764 $ 14,879 4/30/99 $ 15,758 $ 15,814 $ 14,919 5/31/99 $ 15,647 $ 15,675 $ 14,828 6/30/99 $ 15,642 $ 15,625 $ 14,849 7/31/99 $ 15,621 $ 15,559 $ 14,851 8/31/99 $ 15,599 $ 15,551 $ 14,872 9/30/99 $ 15,723 $ 15,732 $ 14,999 10/31/99 $ 15,751 $ 15,790 $ 15,029 11/30/99 $ 15,761 $ 15,788 $ 15,039 12/31/99 $ 15,729 $ 15,713 $ 14,992 1/31/00 $ 15,665 $ 15,661 $ 14,942 2/29/00 $ 15,793 $ 15,850 $ 15,066 3/31/00 $ 15,915 $ 16,059 $ 15,238 4/30/00 $ 15,770 $ 16,013 $ 15,231 5/31/00 $ 15,756 $ 16,005 $ 15,272 6/30/00 $ 16,121 $ 16,338 $ 15,515 7/31/00 $ 16,273 $ 16,486 $ 15,618 8/31/00 $ 16,513 $ 16,725 $ 15,793 9/30/00 $ 16,641 $ 16,831 $ 15,931 10/31/00 $ 16,634 $ 16,942 $ 16,040 11/30/00 $ 16,799 $ 17,220 $ 16,275 12/31/00 $ 17,207 $ 17,540 $ 16,562 1/31/01 $ 17,750 $ 17,826 $ 16,783 2/28/01 $ 17,804 $ 17,981 $ 16,937 3/31/01 $ 17,815 $ 18,071 $ 17,060 4/30/01 $ 17,768 $ 17,995 $ 17,006 5/31/01 $ 17,931 $ 18,104 $ 17,076 6/30/01 $ 17,951 $ 18,173 $ 17,131 7/31/01 $ 18,309 $ 18,580 $ 17,450 8/31/01 $ 18,475 $ 18,793 $ 17,605 9/30/01 $ 18,441 $ 19,011 $ 17,981 10/31/01 $ 18,707 $ 19,409 $ 18,262 11/30/01 $ 18,499 $ 19,141 $ 18,044 12/31/01 $ 18,345 $ 19,018 $ 17,957 1/31/02 $ 18,409 $ 19,172 $ 18,034 2/28/02 $ 18,465 $ 19,358 $ 18,183 3/31/02 $ 18,254 $ 19,037 $ 17,909 4/30/02 $ 18,387 $ 19,406 $ 18,244 5/31/02 $ 18,444 $ 19,571 $ 18,371 6/30/02 $ 17,954 $ 19,741 $ 18,601 7/31/02 $ 17,469 $ 19,980 $ 18,952 8/31/02 $ 17,854 $ 20,318 $ 19,168 9/30/02 $ 17,953 $ 20,647 $ 19,497 10/31/02 $ 17,938 $ 20,552 $ 19,484
[CHART] COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE FIXED INCOME FUND(1) ADVISOR CLASS SHARES, THE LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX(3) AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX(4) FROM INCEPTION (7/03/96). (UNAUDITED)
LEHMAN BROTHERS CREDIT SUISSE LEHMAN BROTHERS INTERMEDIATE FIXED INCOME FUND(1) U.S. AGGREGATE BOND GOVERNMENT/CORPORATE ADVISOR CLASS -- $ 13,767 INDEX(3) -- $ 16,219 BOND INDEX(4) -- $ 15,885 7/96 $ 10,000 $ 10,000 $ 10,000 7/96 $ 10,014 $ 10,027 $ 10,031 8/96 $ 10,058 $ 10,010 $ 10,042 9/96 $ 10,214 $ 10,184 $ 10,172 10/96 $ 10,393 $ 10,410 $ 10,339 11/96 $ 10,573 $ 10,588 $ 10,464 12/96 $ 10,565 $ 10,490 $ 10,408 1/97 $ 10,638 $ 10,522 $ 10,448 2/97 $ 10,703 $ 10,549 $ 10,465 3/97 $ 10,615 $ 10,431 $ 10,405 4/97 $ 10,709 $ 10,588 $ 10,523 5/97 $ 10,813 $ 10,689 $ 10,605 6/97 $ 10,939 $ 10,816 $ 10,695 7/97 $ 11,210 $ 11,108 $ 10,893 8/97 $ 11,129 $ 11,013 $ 10,851 9/97 $ 11,272 $ 11,176 $ 10,969 10/97 $ 11,381 $ 11,338 $ 11,097 11/97 $ 11,387 $ 11,391 $ 11,121 12/97 $ 11,466 $ 11,506 $ 11,212 1/98 $ 11,628 $ 11,653 $ 11,358 2/98 $ 11,596 $ 11,644 $ 11,346 3/98 $ 11,617 $ 11,683 $ 11,381 4/98 $ 11,668 $ 11,744 $ 11,436 5/98 $ 11,764 $ 11,855 $ 11,515 6/98 $ 11,845 $ 11,956 $ 11,592 7/98 $ 11,841 $ 11,981 $ 11,637 8/98 $ 11,972 $ 12,177 $ 11,857 9/98 $ 12,163 $ 12,462 $ 12,133 10/98 $ 12,087 $ 12,396 $ 12,153 11/98 $ 12,149 $ 12,466 $ 12,116 12/98 $ 12,170 $ 12,504 $ 12,163 1/99 $ 12,204 $ 12,592 $ 12,218 2/99 $ 12,062 $ 12,372 $ 12,050 3/99 $ 12,152 $ 12,440 $ 12,130 4/99 $ 12,179 $ 12,480 $ 12,163 5/99 $ 12,090 $ 12,370 $ 12,088 6/99 $ 12,082 $ 12,330 $ 12,106 7/99 $ 12,063 $ 12,279 $ 12,107 8/99 $ 12,044 $ 12,273 $ 12,124 9/99 $ 12,149 $ 12,415 $ 12,228 10/99 $ 12,168 $ 12,461 $ 12,253 11/99 $ 12,174 $ 12,460 $ 12,261 12/99 $ 12,133 $ 12,400 $ 12,222 1/00 $ 12,093 $ 12,359 $ 12,182 2/00 $ 12,177 $ 12,508 $ 12,282 3/00 $ 12,281 $ 12,673 $ 12,423 4/00 $ 12,165 $ 12,637 $ 12,418 5/00 $ 12,139 $ 12,630 $ 12,451 6/00 $ 12,430 $ 12,893 $ 12,648 7/00 $ 12,534 $ 13,010 $ 12,732 8/00 $ 12,730 $ 13,199 $ 12,875 9/00 $ 12,813 $ 13,282 $ 12,988 10/00 $ 12,817 $ 13,370 $ 13,077 11/00 $ 12,929 $ 13,589 $ 13,269 12/00 $ 13,255 $ 13,842 $ 13,503 1/02 $ 13,671 $ 14,068 $ 13,682 2/02 $ 13,697 $ 14,190 $ 13,808 3/02 $ 13,717 $ 14,261 $ 13,908 4/02 $ 13,677 $ 14,201 $ 13,864 5/02 $ 13,799 $ 14,287 $ 13,921 6/02 $ 13,813 $ 14,341 $ 13,966 7/02 $ 14,087 $ 14,662 $ 14,227 8/02 $ 14,226 $ 14,831 $ 14,353 9/02 $ 14,183 $ 15,003 $ 14,659 10/02 $ 14,386 $ 15,317 $ 14,888 11/02 $ 14,236 $ 15,105 $ 14,710 12/02 $ 14,116 $ 15,009 $ 14,639 1/02 $ 14,148 $ 15,130 $ 14,702 2/02 $ 14,189 $ 15,277 $ 14,824 3/02 $ 14,039 $ 15,023 $ 14,601 4/02 $ 14,125 $ 15,315 $ 14,874 5/02 $ 14,168 $ 15,445 $ 14,978 6/02 $ 13,788 $ 15,579 $ 15,165 7/02 $ 13,428 $ 15,768 $ 15,451 8/02 $ 13,708 $ 16,034 $ 15,627 9/02 $ 13,783 $ 16,294 $ 15,896 10/02 $ 13,767 $ 16,219 $ 15,885
3 [CHART] COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE FIXED INCOME FUND1 CLASS A, B AND C SHARES,(2) THE LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX(3) AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX(4) FROM INCEPTION (7/31/01). (UNAUDITED)
CREDIT SUISSE CREDIT SUISSE CREDIT SUISSE FIXED INCOME FUND(1) FIXED INCOME FUND(1) FIXED INCOME FUND(1) CLASS A(2) -- $ 9,314 CLASS B(2) -- $ 9,408 CLASS C(2) -- $ 9,676 7/01 $ 9,525 $ 10,000 $ 10,000 8/01 $ 9,619 $ 10,092 $ 10,087 9/01 $ 9,590 $ 10,058 $ 10,051 10/01 $ 9,728 $ 10,196 $ 10,189 11/01 $ 9,626 $ 10,074 $ 10,076 12/01 $ 9,545 $ 9,982 $ 9,985 1/02 $ 9,567 $ 10,009 $ 10,001 2/02 $ 9,594 $ 10,032 $ 10,024 3/02 $ 9,483 $ 9,909 $ 9,902 4/02 $ 9,550 $ 9,974 $ 9,965 5/02 $ 9,579 $ 9,997 $ 9,989 6/02 $ 9,322 $ 9,724 $ 9,716 7/02 $ 9,068 $ 9,453 $ 9,445 8/02 $ 9,258 $ 9,655 $ 9,647 9/02 $ 9,318 $ 9,701 $ 9,693 10/02 $ 9,314 $ 9,408 $ 9,676 LEHMAN BROTHERS LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE U.S. AGGREGATE BOND INDEX(3) -- $ 11,062 BOND INDEX(4) -- $ 11,165 7/01 $ 10,000 $ 10,000 8/01 $ 10,115 $ 10,089 9/01 $ 10,232 $ 10,304 10/01 $ 10,446 $ 10,465 11/01 $ 10,302 $ 10,340 12/01 $ 10,236 $ 10,290 1/02 $ 10,319 $ 10,335 2/02 $ 10,419 $ 10,420 3/02 $ 10,246 $ 10,263 4/02 $ 10,445 $ 10,455 5/02 $ 10,534 $ 10,528 6/02 $ 10,625 $ 10,659 7/02 $ 10,754 $ 10,860 8/02 $ 10,936 $ 10,984 9/02 $ 11,113 $ 11,173 10/02 $ 11,062 $ 11,165
4 Past performance is not predictive of future performance. Investment return and principal value of an investment will fluctuate so that an investor's shares upon redemption may be worth more or less than their 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. AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2002(1)
SINCE 1 YEAR 5 YEARS 10 YEARS INCEPTION ------ ------- -------- --------- Common Class (2.59%) 4.34% 5.88% 6.95% Advisor Class (2.83%) 4.10% -- 5.27% Class A Without Sales Charge (2.83%) -- -- (1.43%) Class A With Maximum Sales Charge (7.45%) -- -- (5.43%) Class B Without Sales Charge (3.55%) -- -- (2.14%) Class B With Maximum Sales Charge (7.25%) -- -- (4.52%) Class C Without Sales Charge (3.56%) -- -- (2.20%) Class C With Maximum Sales Charge (4.49%) -- -- (2.20%)
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2002(1)
SINCE 1 YEAR 5 YEARS 10 YEARS INCEPTION ------ ------- -------- --------- Common Class (4.07%) 4.14% 6.02% 6.90% Advisor Class (4.31%) 3.88% -- 5.18% Class A Without Sales Charge (4.27%) -- -- (1.78%) Class A With Maximum Sales Charge (8.86%) -- -- (5.51%) Class B Without Sales Charge (5.02%) -- -- (2.53%) Class B With Maximum Sales Charge (8.67%) -- -- (4.75%) Class C Without Sales Charge (5.03%) -- -- (2.59%) Class C With Maximum Sales Charge (5.94%) -- -- (2.59%)
---------- (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) Total return for Class A Shares for the reporting period, based on offering price (with maximum sales charge of 4.75%), was -8.86%. Total return for Class B Shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 4%), was -8.67%. Total return for Class C shares for the reporting period, based on redemption value (including maximum contingent deferred sales charge of 1%), was -5.94%. (3) The Lehman Brothers U.S. Aggregate Bond Index is composed of the Lehman Brothers Government/Corporate Bond Index and the Lehman Brothers Mortgage-Backed Securities Index. The U.S. Aggregate Bond Index includes U.S. Treasury and agency issues, corporate bond issues and mortgage-backed securities rated investment-grade or higher by Moody's Investors Service, Standard & Poor's Corporation or Fitch Investors' Service. Investors cannot invest directly in an index. (4) The Lehman Brothers Intermediate Government/Corporate Bond Index is an unmanaged index (with no defined investment objective) of intermediate-maturity U.S. Government bonds and is calculated by Lehman Brothers, Inc. Investors cannot invest directly in an index. 5 CREDIT SUISSE FIXED INCOME FUND SCHEDULE OF INVESTMENTS October 31, 2002
PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (39.1%) AEROSPACE & DEFENSE (0.5%) $ 715 Lockheed Martin Corp., Bonds (BBB, Baa2) 12/01/29 8.500 $ 924,266 30 Sequa Corp., Senior Notes (BB-, Ba3) 08/01/09 9.000 25,350 95 Sequa Corp., Series B, Senior Notes (BB-, Ba3) 04/01/08 8.875 80,275 165 The Boeing Co., Debentures (A+, A2) 08/15/42 7.500 170,880 ------------- 1,200,771 ------------- APPAREL (0.0%) 125 Levi Strauss & Co., Notes (BB-, Caa1) 11/01/06 7.000 106,250 ------------- AUTOMOBILE MANUFACTURERS (1.5%) 175 DaimlerChrysler NA Holding Corp., Company Guaranteed, Global Notes (BBB+, A3) 01/15/12 7.300 189,782 3,080 General Motors Corp., Global Notes (BBB, A3) 01/15/11 7.200 2,900,898 270 General Motors Corp., Series MTN, Notes (BBB, A2) 05/16/05 5.250 264,206 ------------- 3,354,886 ------------- AUTOMOBILE PARTS & EQUIPMENT (0.2%) 280 Collins & Aikman Products Corp., Company Guaranteed, Senior Subordinated Notes (Callable 12/05/02 @ $103.83) (B, B2) 04/15/06 11.500 233,100 295 Metaldyne Corp., Rule 144A, Private Placement, Senior Subordinated Notes (Callable 6/15/07 @ $105.50)++ (B, B3) 06/15/12 11.000 210,925 ------------- 444,025 ------------- BANKING (0.1%) 250 Sovereign Bancorp, Inc., Senior Notes (BBB-, Ba2) 11/15/06 10.500 280,000 ------------- BUILDING MATERIALS (0.3%) 295 Building Materials Corp., Company Guaranteed (B, B2) 12/01/08 8.000 216,825 160 Dayton Superior Corp., Company Guaranteed Notes (Callable 6/15/07 @ $102.17) (B-, Caa2) 06/15/09 13.000 125,600 400 Nortek, Inc., Series B, Global Senior Subordinated Notes (Callable 6/15/06 @ $104.94) (B-, B3) 06/15/11 9.875 379,000 ------------- 721,425 ------------- CABLE (0.6%) 1,600 CSC Holdings, Inc., Series B, Senior Notes (BB-, B1) 04/01/11 7.625 1,316,000 80 DIVA Systems Corp., Series B, Senior Discount Notes (Callable 3/01/03 @ $106.31)** (NA, NR) 03/01/08 12.625 1,200 40 Insight Midwest, Senior Notes (Callable 10/01/04 @ $104.88) (B+, B2) 10/01/09 9.750 34,200 35 James Cable Partners LP, Series B, Senior Notes (Callable 12/05/02 @ $102.69) (NR, Ca) 08/15/04 10.750 17,325 70 Northland Cable Television, Company Guaranteed, Senior Subordinated Notes (Callable 12/05/02 @ $105.12) (CC, Caa1) 11/15/07 10.250 40,250 ------------- 1,408,975 ------------- See Accompanying Notes to Financial Statements. 6 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (CONTINUED) CHEMICALS (0.4%)- $ 280 Applied Extrusion Technologies, Inc., Series B, Company Guaranteed (Callable 7/01/06 @ $105.38) (B, Caa1) 07/01/11 10.750 $ 169,400 540 Avecia Group PLC, Global Company Guaranteed (Callable 7/01/04 @ $105.50) (B-, B3) 07/01/09 11.000 456,300 315 Mississippi Chemical Corp., Bonds (CCC, Caa2) 11/15/17 7.250 58,275 120 Scotts Co., Company Guaranteed (Callable 1/15/04 @ $104.31) (B+, B2) 01/15/09 8.625 125,400 ------------- 809,375 ------------- COMMERCIAL SERVICES (0.1%) 100 Iron Mountain, Inc., Company Guaranteed (Callable 4/01/06 @ $104.31) (B, B2) 04/01/13 8.625 104,750 215 La Petite Academy, Inc., Series B, CompanyGuaranteed (Callable 5/15/03 @ $105.00) (CC, Ca) 05/15/08 10.000 112,875 ------------- 217,625 ------------- COMPUTERS (0.1%) 160 Unisys Corp., Senior Notes (BB+, Ba1) 01/15/05 7.250 160,800 ------------- DIVERSIFIED FINANCIALS (5.5%) 270 Armkel LLC & Armkel Financial, Global Senior Subordinated Notes (Callable 8/15/05 @ $104.75) (B-, B2) 08/15/09 9.500 289,575 1,195 Boeing Capital Corp., Global Bonds (A+, A3) 01/15/13 5.800 1,164,886 180 Burlington Resources Finance Co., Yankee Company Guaranteed (BBB+, Baa1) 03/01/07 5.700 193,838 175 Chukchansi Economic Development Authority, Rule 144A, Private Placement, Senior Notes (Callable 10/01/06 @ $113.00)++ (NA, NA) 06/15/09 14.500 161,437 415 Countrywide Home Loans, Inc., Global Company Guaranteed (A, A3) 06/15/04 6.850 438,252 325 Countrywide Home Loans, Inc., Global Company Guaranteed (A, A3) 02/01/07 5.500 338,280 425 Countrywide Home Loans, Inc., Global Company Guaranteed (A, A3) 05/15/07 5.625 445,344 2,550 Ford Motor Credit Co., Global Notes (BBB, A3) 02/01/06 6.875 2,352,623 1,290 Ford Motor Credit Co., Global Notes (BBB, A3) 10/28/09 7.375 1,169,288 1,520 Household Finance Corp., Global Notes (A-, A2) 01/30/07 5.750 1,353,191 2,126 Verizon Global Funding Corp., Global Notes (A+, A1) 06/15/12 6.875 2,272,694 450 Verizon Global Funding Corp., Global Notes (A+, A1) 09/01/12 7.375 496,352 1,395 Verizon Global Funding Corp., Global Notes (A+, A1) 12/01/30 7.750 1,500,106 380 Verizon Global Funding Corp., Global Notes (A+, A1) 06/15/32 7.750 409,096 ------------- 12,584,962 ------------- See Accompanying Notes to Financial Statements. 7 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (CONTINUED) ELECTRIC (2.8%) $ 90 Calpine Corp., Senior Notes (B+, B1) 08/15/10 8.625 $ 29,250 1,825 Calpine Corp., Senior Notes (B+, B1) 02/15/11 8.500 602,250 750 Cilcorp, Inc., Bonds (BB+, Baa2) 10/15/29 9.375 646,713 825 Cincinnati Gas & Electric Co., Notes (BBB, Baa1) 09/15/12 5.700 819,892 200 CMS Energy Corp. (BBB-, Baa3) 09/15/06 6.250 190,976 95 CMS Energy Corp., Senior Notes (B+, B3) 01/15/09 7.500 68,492 235 CMS Energy Corp., Series B, Senior Notes (B+, B3) 01/15/04 6.750 190,409 520 Energy East Corp., Notes (BBB, Baa2) 06/15/12 6.750 556,558 1,775 PG&E National Energy Group, Global Senior Notes (D, Ca) 05/16/11 10.375 381,625 795 Progress Energy, Inc., Senior Notes (BBB, Baa1) 03/01/06 6.750 817,364 1,080 Progress Energy, Inc., Senior Notes (BBB, Baa1) 03/01/31 7.750 1,064,599 855 PSEG Power LLC, Global Company Guaranteed (BBB, Baa1) 04/15/06 6.875 795,859 305 PSEG Power LLC, Rule 144A, Private Placement, Notes++ (BBB, Baa1) 06/01/12 6.950 265,880 ------------- 6,429,867 ------------- ELECTRICAL COMPONENTS & EQUIPMENT (0.3%) 60 Motors & Gears, Inc., Series D, Senior Notes (Callable 12/05/02 @ $105.38) (B-, Caa1) 11/15/06 10.750 51,300 525 Oncor Electric Delivery Co., Rule 144A, Private Placement, Senior Secured Notes++ (BBB, A3) 05/01/12 6.375 535,091 ------------- 586,391 ------------- ELECTRONICS (0.1%) 20 Fisher Scientific International, Senior Subordinated Notes (Callable 2/01/03 @ $104.50) (B, B3) 02/01/08 9.000 20,800 170 Flextronics International, Ltd., Yankee Senior Subordinated Notes (Callable 7/01/05 @ $104.94) (BB-, Ba2) 07/01/10 9.875 177,650 ------------- 198,450 ------------- ENTERTAINMENT (0.9%) 455 Argosy Gaming Co., Company Guaranteed (Callable 6/01/04 @ $105.38) (B+, B2) 06/01/09 10.750 502,775 200 Bluegreen Corp., Company Guaranteed (B, B3) 04/01/08 10.500 170,000 50 Horseshoe Gaming Holding Corp., Series B, Company Guaranteed (Callable 5/15/04 @ $104.31) (B+, B2) 05/15/09 8.625 52,875 200 Isle of Capri Casinos, Inc., Company Guaranteed (Callable 4/15/04 @ $104.38) (B, B2) 04/15/09 8.750 201,000 215 Kerzner International, Ltd., Global Company Guaranteed, Senior Subordinated Notes (Callable 8/15/06 @ $104.44) (B+, B2) 08/15/11 8.875 217,150 See Accompanying Notes to Financial Statements. 8 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------- ------------- CORPORATE BONDS (CONTINUED) ENTERTAINMENT (CONTINUED) $ 490 Mohegan Tribal Gaming, Global Senior Subordinated Notes (Callable 7/01/06 @ $104.19) (BB-, Ba3) 07/01/11 8.375 $ 514,500 320 Penn National Gaming, Inc., Company Guaranteed (Callable 3/15/06 @ $104.44) (B-, B3) 03/15/10 8.875 324,000 ------------- 1,982,300 ------------- ENVIRONMENTAL CONTROL (2.1%) 1,580 Allied Waste North America, Series B, Company Guaranteed (Callable 8/01/04 @ $105.00) (B+, B2) 08/01/09 10.000 1,524,700 85 Allied Waste North America, Series B, Company Guaranteed, Senior Notes (Callable 1/01/04 @ $103.94) (BB-, Ba3) 01/01/09 7.875 81,175 1,600 Allied Waste North America, Series B, Global Company Guaranteed (BB-, Ba3) 04/01/08 8.875 1,592,000 110 Waste Management, Inc., Notes (BBB, Ba1) 04/30/04 8.000 113,587 930 Waste Management, Inc., Rule 144A, Private Placements, Bonds++ (BBB, Ba1) 05/15/32 7.750 911,500 490 Waste Management, Inc., Senior Notes (BBB, Ba1) 08/01/10 7.375 515,365 ------------- 4,738,327 ------------- FINANCE (0.3%) 725 Washington Mutual, Inc., Global Senior Notes (BBB+, A3) 01/15/07 5.625 769,094 ------------- FOOD (1.9%) 300 Agrilink Foods, Inc., Company Guaranteed, Senior Subordinated Notes (Callable 11/01/03 @ $105.94) (B-, B3) 11/01/08 11.875 312,000 65 Archibald Candy Corp., Company Guaranteed, Senior Secured Notes (Callable 12/05/02 @ $102.56)** (NR, Caa2) 07/01/04 10.250 32,175 230 Aurora Foods, Inc., Series B, Senior Subordinated Notes (Callable 7/01/03 @ $106.38) (CCC, Caa3) 07/01/08 8.750 101,200 420 ConAgra Foods, Inc., Notes (BBB+, Baa1) 09/15/11 6.750 474,794 525 ConAgra Foods, Inc., Notes (BBB+, Baa1) 09/15/30 8.250 666,430 130 Fleming Companies, Inc., Company Guaranteed (Callable 6/15/06 @ $104.62) (B+, B2) 06/15/10 9.250 107,250 145 Fleming Companies, Inc., Global Company Guaranteed (Callable 4/01/05 @ $105.06) (BB-, B2) 04/01/08 10.1250 123,975 215 Land O' Lakes, Inc., Global Senior Notes (Callable 11/15/06 @ $104.38) (B+, B2) 11/15/11 8.750 119,325 615 Safeway, Inc., Senior Debentures (BBB, Baa2) 02/01/31 7.250 674,642 560 Safeway, Inc., Senior Notes (BBB, Baa2) 09/15/04 7.250 605,495 See Accompanying Notes to Financial Statements. 9 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (CONTINUED) FOOD (CONTINUED) $ 120 Stater Brothers Holdings, Inc., Senior Notes (Callable 8/15/03 @ $105.38) (B-, B2) 08/15/06 10.750 $ 121,800 1,075 Tyson Foods, Inc., Global Notes (BBB, Baa3) 10/01/04 6.625 1,136,490 ------------- 4,475,576 ------------- FOREST PRODUCTS, PAPER (0.3%) 350 Appleton Papers, Inc., Series B, Global Company Guaranteed (Callable 12/15/05 @ $106.25) (B+, B3) 12/15/08 12.500 365,750 290 Georgia-Pacific Corp., Senior Notes (BB+, Ba1) 05/15/31 8.875 223,868 ------------- 589,618 ------------- GAS (0.5%) 1,025 KeySpan Corp., Senior Notes (A, A3) 11/15/30 8.000 1,233,537 ------------- HEALTHCARE FACILITIES/SUPPLIES (0.3%) 665 Baxter International, Inc., Notes (A, A3) 05/01/07 5.250 695,369 110 Extendicare Health Services, Inc., Company Guaranteed (Callable 12/15/02 @ $104.67) (CCC+, B3) 12/15/07 9.350 95,150 ------------- 790,519 ------------- HEALTHCARE SERVICES (0.7%) 90 HCA, Inc. (BBB-, Ba1) 09/01/10 8.750 100,307 235 HCA, Inc. (BBB-, Ba1) 06/15/05 6.910 247,023 1,175 HCA, Inc. (BBB-, Ba1) 07/01/07 7.000 1,247,649 290 Magellan Health Services, Inc., Senior Subordinated Notes (Callable 2/15/03 @ $104.50) (CC, Ca) 02/15/08 9.000 50,750 ------------- 1,645,729 ------------- HOLDING COMPANIES (0.1%) 170 Werner Holding Co., Inc., Series A, Company Guaranteed (Callable 12/05/02 @ $105.00) (B-, B2) 11/15/07 10.000 160,650 ------------- HOME BUILDERS (0.1%) 110 KB Home, Senior Subordinated Notes (Callable 2/15/06 @ $104.75) (BB-, Ba3) 02/15/11 9.500 114,675 75 Ryland Group, Senior Notes (Callable 9/01/05 @ $104.88) (BB+, Ba2) 09/01/10 9.750 81,562 ------------- 196,237 ------------- INDUSTRIAL (0.3%) 495 Norsk Hydro A/S, Yankee Debentures (A, A2) 06/15/23 7.750 581,936 ------------- IRON & STEEL (0.0%) 105 AK Steel Corp., Company Guaranteed (Callable 2/15/04 @ $103.94) (BB, B1) 02/15/09 7.875 105,000 ------------- See Accompanying Notes to Financial Statements. 10 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (CONTINUED) LEISURE (0.4%) $ 625 Carnival Corp., Yankee Notes (A, A2) 04/15/08 6.150 $ 659,741 280 Hard Rock Hotel, Inc., Series B, Senior Subordinated Notes (Callable 12/05/02 @ $104.62) (B-, Caa1) 04/01/05 9.250 277,900 ------------- 937,641 ------------- LODGING (2.6%) 345 Ameristar Casinos, Inc., Global Company Guaranteed (Callable 2/15/06 @ $105.38) (B, B3) 02/15/09 10.750 374,325 120 Aztar Corp., Senior Subordinated Notes (Callable 5/15/03 @ $104.44) (B+, Ba3) 05/15/07 8.8750 120,000 215 Boyd Gaming Corp., Company Guaranteed (Callable 8/01/05 @ $104.62) (BB-, Ba3) 08/01/09 9.250 233,813 530 Hilton Hotels Corp., Notes (BBB-, Ba1) 02/15/11 8.250 541,495 515 ITT Corp. (BBB-, Ba1) 11/15/05 6.750 499,952 325 Majestic Investor Holdings, Company Guaranteed, Senior Secured Notes (Callable 11/30/05 @ $105.83) (B, B2) 11/30/07 11.653 284,781 20 Mandalay Resort Group, Senior Subordinated Notes (Callable 12/01/02 @ $104.62) (BB-, Ba3) 12/01/05 9.250 20,750 30 MGM Mirage, Inc., Company Guaranteed (BB+, Ba2) 06/01/07 9.750 33,150 1,495 Park Place Entertainment Corp., Senior Subordinated Notes (BB+, Ba2) 12/15/05 7.875 1,506,213 280 Prime Hospitality Corp., Series B, Global Senior Subordinated Notes (Callable 5/01/07 @ $104.19) (B+, B1) 05/01/12 8.375 256,200 300 Riviera Holdings Corp., Rule 144A, Private Placement, Company Guaranteed (Callable 6/15/06 @ $105.50)++ (B+, B2) 06/15/10 11.000 275,250 1,810 Starwood Hotels & Resorts Worldwide, Inc., Rule 144A, Private Placement, Notes++ (BBB-, Ba1) 05/01/07 7.375 1,737,600 340 Windsor Woodmont Black Hawk, Series B, First Mortgage (Callable 12/05/02 @ $113.00)** (NR, NA) 03/15/05 13.000 222,700 ------------- 6,106,229 ------------- MEDIA (2.9%) 355 AOL Time Warner, Inc., Global Bonds (BBB+, Baa1) 04/15/31 7.625 322,726 10 Chancellor Media Corp., Company Guaranteed, Senior Notes (BBB-, Ba1) 11/01/08 8.000 10,588 1,085 Charter Communications Holdings LLC, Global Senior Notes (B-, B3) 10/01/09 10.750 485,537 See Accompanying Notes to Financial Statements. 11 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (CONTINUED) MEDIA (CONTINUED) $ 550 Charter Communications Holdings LLC, Global Senior Notes (B-, B3) 11/15/09 9.625 $ 237,875 10 Charter Communications Holdings LLC, Senior Discount Notes (Callable 4/01/04 @ $104.96)+** (B-, B3) 04/01/11 8.625 3,150 75 Charter Communications Holdings LLC, Senior Notes (Callable 4/01/04 @ $104.31) (B-, B3) 04/01/09 8.625 32,625 35 Clear Channel Communications, Inc., Debentures (BBB-, Baa3) 10/15/27 7.250 34,113 615 Clear Channel Communications, Inc., Global Senior Notes (BBB-, Baa3) 11/01/06 6.000 633,561 80 Coaxial Communications/Phoenix, Company Guaranteed, Senior Notes (Callable 12/05/02 @ $105.00) (B, B3) 08/15/06 10.000 68,500 1,805 Comcast Cable Communications, Inc., Senior Notes (BBB, Baa3) 01/30/11 6.750 1,725,629 100 CSC Holdings, Inc., Series B, Senior Notes (BB-, B1) 07/15/09 8.125 83,500 140 Lin Televison Corp., Company Guaranteed (Callable 3/01/03 @ $104.19) (B-, B3) 03/01/08 8.375 145,950 620 News America Holdings, Inc., Company Guaranteed (BBB-, Baa3) 02/01/13 9.250 701,929 1,190 News America Holdings, Inc., Debentures (BBB-, Baa3) 08/10/18 8.250 1,163,132 135 Salem Communications Corp., Series B, Company Guaranteed, Senior Subordinated Notes (Callable 12/05/02 @ $104.75) (B-, B3) 10/01/07 9.500 140,738 510 Viacom, Inc., Global Company Guaranteed (A-, A3) 08/15/12 5.625 532,144 295 Walt Disney Co., Global Notes (BBB+, Baa1) 03/01/12 6.375 316,340 ------------- 6,638,037 ------------- OIL & GAS (3.7%) 135 Abraxas Petroleum Corp., Series B, Company Guaranteed (Callable 12/05/02 @ $100.00) (CCC-, B3) 03/15/03 12.875 135,000 10 Conoco Funding Co., Global Company Guaranteed (A-, A3) 10/15/11 6.350 11,020 1,940 Conoco Funding Co., Global Company Guaranteed (A-, A3) 10/15/31 7.250 2,210,892 60 Conoco, Inc., Senior Global Notes (A-, A3) 04/15/09 6.350 66,360 1,690 Consolidated Natural Gas Co., Senior Notes (BBB+, A3) 04/15/11 6.850 1,821,053 500 Devon Energy Corp., Debentures (BBB, Baa2) 04/15/32 7.950 581,657 510 Devon Financing Corp., ULC, Global Company Guaranteed (BBB, Baa2) 09/30/11 6.875 566,931 870 Enterprise Products Partners LP, Company Guaranteed (BBB, Baa2) 02/01/11 7.500 862,762 30 Ocean Energy, Inc., Series B, Company Guaranteed (Callable 7/01/03 @ $104.19) (BB+, Ba1) 07/01/08 8.375 31,650 See Accompanying Notes to Financial Statements. 12 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (CONTINUED) OIL & GAS (CONTINUED) $ 55 Parker Drilling Co., Series B, Senior Notes, Company Guaranteed (Callable 11/15/04 @ $105.06) (B+, B1) 11/15/09 10.125 $ 53,625 1,775 Petronas Capital Ltd.,- Rule 144A, Private Placement, Company Guaranteed++ (BBB+, Baa1) 05/22/22 7.875 1,842,963 660 Tesoro Petroleum Corp., Global Senior Subordinated Notes (Callable 4/01/07 @ $104.81) (B, B2) 04/01/12 9.625 339,900 ------------- 8,523,813 ------------- PACKAGING & CONTAINERS (0.5%) 175 Box USA Holdings, Series B, Senior Secured Notes (Callable 12/05/02 @ $104.00) (B, B3) 06/01/06 12.000 182,000 200 Owens-Brockway Glass Containers, Global Company Guaranteed (Callable 2/15/06 @ $104.44) (BB, B2) 02/15/09 8.875 206,500 150 Owens-Illinois, Inc., Senior Notes (B+, B3) 05/15/08 7.350 134,625 240 Packaged Ice, Inc., Series B, Company Guaranteed, Senior Unsecured Notes (Callable 12/05/02 @ $104.88) (B-, Caa3) 02/01/05 9.750 178,800 380 Stone Container Corp., Global Senior Notes (Callable 7/01/07 @ $104.19) (B, B2) 07/01/12 8.375 393,300 ------------- 1,095,225 ------------- PHARMACEUTICALS (0.1%) 180 NBTY, Inc., Series B, Senior Subordinated Notes (Callable 12/05/02 @ $104.31) (B+, B1) 09/15/07 8.625 181,800 ------------- PIPELINES (0.9%) 600 El Paso Corp., Rule 144A, Private Placement, Notes++ (BBB-, Baa3) 06/15/12 7.875 402,703 430 Tennessee Gas Pipeline Co., Debentures (BBB, Baa2) 04/01/17 7.500 387,973 305 Tennessee Gas Pipeline Co., Debentures (BBB, Baa2) 10/15/28 7.000 260,093 190 Western Gas Resources, Inc., Company Guaranteed (Callable 6/15/04 @ $105.00) (BB-, Ba3) 06/15/09 10.000 200,450 920 Williams Companies, Inc., Notes (B, B1) 09/01/21 7.875 519,800 665 Williams Companies, Inc., Notes (B, B1) 06/15/31 7.750 369,075 ------------- 2,140,094 ------------- REAL ESTATE (0.4%) 465 EOP Operating LP, Notes (BBB+, Baa1) 06/15/04 6.500 485,531 500 EOP Operating LP, Senior Notes (BBB+, Baa1) 02/15/05 6.625 529,017 ------------- 1,014,548 ------------- See Accompanying Notes to Financial Statements. 13 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (CONTINUED) RETAIL (0.3%) $ 135 Hockey Co. & Sports Maska, Inc., Senior Secured, Global Notes, Units (Callable 4/15/06 @ $105.62) (NA, B2) 04/15/09 11.250 $ 129,600 300 Leslie's Poolmart, Senior Notes (Callable 12/05/02 @ $102.59) (B-, B3) 07/15/04 10.375 280,125 140 Sbarro, Inc., Company Guaranteed, Senior Notes (Callable 9/15/04 @ $105.50) (B+, B2) 09/15/09 11.000 125,300 240 Yum! Brands, Inc., Senior Notes (BB, Ba1) 07/01/12 7.700 249,600 ------------- 784,625 ------------- SECONDARY OIL & GAS PRODUCERS (0.5%) 225 Chesapeake Energy Corp., Global Company Guaranteed, Senior Notes (Callable 4/01/06 @ $104.06) (B+, B1) 04/01/11 8.125 230,625 230 Denbury Management, Inc., Company Guaranteed, Senior Subordinated Notes (Callable 3/01/03 @ $104.50) (B, B3) 03/01/08 9.000 235,175 370 Magnum Hunter Resources, Inc., Company Guaranteed (Callable 12/05/02 @ $105.00) (B+, B2) 06/01/07 10.000 386,650 50 Mission Resources Corp., Series C, Global Company Guaranteed (Callable 12/05/02 @ $105.44) (B-, Caa1) 04/01/07 10.875 30,250 144 Southwest Royalties, Inc., Company Guaranteed (Callable 12/05/02 @ $100.00) (CCC-, NA) 06/30/04 10.500 143,820 41 Southwest Royalties, Inc., Company Guaranteed, Senior Secured Notes (Callable 12/05/02 @ $100.00) (CCC-, NA) 06/30/04 10.500 41,000 ------------- 1,067,520 ------------- TELECOMMUNICATIONS (5.7%) 175 Alamosa PCS Holdings, Inc., Company Guaranteed, Senior Discount Notes (Callable 2/15/05 @ $106.44)+ (CCC, Caa3) 02/15/10 12.875 25,375 1,085 AT&T Corp., Global Notes (BBB+, Baa2) 03/15/09 6.000 1,037,786 240 AT&T Corp., Global Notes (BBB+, Baa2) 03/15/29 6.500 207,116 1,290 AT&T Corp., Global Senior Notes (BBB+, Baa2) 11/15/11 7.300 1,266,665 1,215 AT&T Wireless Services, Inc., Global Senior Notes (BBB, Baa2) 05/01/07 7.500 1,076,454 495 AT&T Wireless Services, Inc., Global Senior Notes (BBB, Baa2) 03/01/31 8.750 397,052 680 AT&T Wireless Services, Inc., Senior Notes (BBB, Baa2) 03/01/11 7.875 592,629 1,155 Citizens Communications Co., Global Senior Notes (BBB, Baa2) 08/15/08 7.625 1,162,383 320 Citizens Communications Co., Global Senior Notes (BBB, Baa2) 08/15/31 9.000 308,118 1,130 Citizens Communications Co., Notes (BBB, Baa2) 05/15/06 8.500 1,142,329 1,150 Cox Communications, Inc., Notes (BBB, Baa2) 11/01/10 7.750 1,232,189 60 Insight Midwest, Global Senior Notes (Callable 11/01/05 @ $105.25) (B+, B2) 11/01/10 10.500 52,200 See Accompanying Notes to Financial Statements. 14 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- CORPORATE BONDS (CONTINUED) TELECOMMUNICATIONS (CONTINUED) $ 10 Level 3 Communications, Inc., Senior Notes (Callable 5/01/03 @ $104.56) (CC, Caa3) 05/01/08 9.125 $ 5,700 195 Lucent Technologies, Inc., Notes (B-, Caa1) 07/15/06 7.250 98,475 85 Nextel Communications, Inc., Senior Discount Notes (Callable 2/15/03 @ $104.97)+ (B, B3) 02/15/08 9.950 72,463 960 Nextel Communications, Inc., Senior Notes (Callable 11/15/04 @ $104.688) (B, B3) 11/15/09 9.375 828,000 1,290 Nextlink Communications, Senior Discount Notes (Callable 12/01/04 @ $106.06)** (NR, Ca) 12/01/09 9.450 9,675 1,805 Nextlink Communications, Senior Notes (Callable 12/01/04 @ $105.25) (NR, Ca) 12/01/09 10.500 13,538 610 Sprint Capital Corp., Global Company Guaranteed (BBB-, Baa3) 01/15/07 6.000 492,722 1,655 Sprint Capital Corp., Senior, Global Company Guaranteed (BBB-, Baa3) 11/15/28 6.875 1,099,986 2,095 Verizon Wireless, Inc., Rule 144A, Private Placement Notes++ (A+, A2) 12/15/06 5.375 2,070,740 940 XO Communications, Inc., Senior Discount Notes (Callable 4/15/03 @ $104.72)** (NA, Ca) 04/15/08 9.450 7,050 ------------- 13,198,645 ------------- TEXTILES (0.1%) 140 Simmons Co., Series B, Senior Subordinated Notes (Callable 3/15/04 @ $105.12) (B-, B2) 03/15/09 10.25 149,800 85 Westpoint Stevens, Inc., Senior Notes (CCC+, Ca) 06/15/05 7.875 25,925 ------------- 175,725 ------------- WIRELESS (1.0%) 220 ALLTEL Corp., Global Senior Notes (A, A2) 07/01/12 7.000 248,223 760 ALLTEL Corp., Global Senior Notes (A, A2) 07/01/32 7.875 871,558 306 TeleCorp PCS, Inc., Company Guaranteed, Senior Subordinated Notes (Callable 4/15/04 @ $105.81)+ (BBB, Baa2) 04/15/09 11.625 255,510 110 U.S. Unwired, Inc., Series B, Company Guaranteed, Senior Discount Notes (Callable 11/01/04 @ $106.69)+ (CCC+, Caa2) 11/01/09 13.375 8,800 650 Voicestream Wireless Corp., Senior Discount Notes (Callable 11/15/04 @ $105.94)+ (A-, Baa2) 11/15/09 11.875 542,750 370 Voicestream Wireless Corp., Senior Notes (Callable 11/15/04 @ $105.19) (A-, Baa2) 11/15/09 10.375 382,950 ------------- 2,309,791 ------------- TOTAL CORPORATE BONDS (Cost $97,527,195) 89,946,018 ------------- See Accompanying Notes to Financial Statements. 15 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- ASSET BACKED SECURITIES (3.9%) $ 900 Chase Credit Card Master Trust, Series 2001-1, Class A (AAA, Aaa) 06/15/07 1.973 $ 903,055 1,050 CNH Equipment Trust, Series 2002-A, Class A3 (AAA, Aaa) 07/17/06 2.073 1,053,681 595 DaimlerChrysler Master Owner Trust, Series 2002-A, Class A (AAA, Aaa) 05/15/07 1.883 595,243 1,295 Discover Card Master Trust I, Series 1999-5, Class A (AAA, Aaa) 12/18/06 1.983 1,297,535 102 Donaldson Lufkin & Jenrette, Inc., Series 1989-1, Class F (AAA, Aaa) 08/01/19 11 117,812 500 Embarcadero Aircraft Secs Trust (BBB, A3) 08/15/25 1.803 400,000 555 Fleet Credit Master Trust II, Series 2002-A, Class A (AAA, Aaa) 10/15/07 1.873 555,231 755 Ford Credit Floorplan Master Owner Trust, Series 2001-1, Class A (AAA, Aaa) 07/17/06 1.913 756,141 830 LB-UBS Commercial Mortgage Trust, Series 2002-C2, Class A4 (AAA, Aaa) 06/15/31 5.594 876,638 575 MBNA Master Credit Card Trust, Series 1996-M, Class A (AAA, Aaa) 04/15/09 1.880 575,826 1,045 MMCA Automobile Trust, Series 2002-2, Class A3 (AAA, Aaa) 07/17/06 3.670 1,071,140 289 Morgan Stanley Mortgage Trust, Series 40, Class 8 (AAA, NR) 07/20/21 7.000 289,861 493 Small Business Administration, Series 1992-20D, Class 1 (NA, Aaa) 04/01/12 8.200 539,628 ------------- 9,031,791 ------------- TOTAL ASSET BACKED SECURITIES (Cost $8,902,503) 9,031,791 ------------- FOREIGN BONDS (2.7%) BANKS (0.6%) $ 1,165 Royal Bank of Scotland Group PLC, Series 3, Perpetual Global Bonds (Callable 12/31/05 @ $100.00) (United Kingdom) (A-, A1) 11/29/49 7.816 1,310,012 ------------- FOREIGN GOVERNMENT BONDS (0.8%) 440 France Telecom SA, Global Notes (BBB-, Baa3) 03/01/06 8.700 471,786 410 Government of Russia (NA, NA) 05/14/08 3.000 309,550 1,010 Republic of Philippines, Series B, Restructured Debt, Foreign Government Guaranteed (Callable 6/02/03 @ $100.00) (Philippines) (BB+, Ba1) 12/01/17 6.500 933,509 ------------- 1,714,845 ------------- REAL ESTATE (0.1%) 90 Intrawest Corp., Rule 144A, Private Placement, Senior Notes (Callable 2/01/05 @ $105.25) (Canada)++ (B+, B1) 02/01/10 10.500 90,900 180 Intrawest Corp., Yankee Senior Notes (Callable 2/01/05 @ $105.25) (Canada) (B+, B1) 02/01/10 10.500 181,800 ------------- 272,700 ------------- See Accompanying Notes to Financial Statements. 16 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- FOREIGN BONDS (CONTINUED) TELECOMMUNICATIONS (1.2%) $ 1,325 British Telecommunications PLC, Global Bonds (United Kingdom) (A-, Baa1) 12/15/30 8.875 $ 1,604,787 65 Rogers Communications, Inc., Yankee Senior Notes (Callable 12/05/02 @ $103.04) (BB-, Ba1) 01/15/06 9.125 55,006 300 TELUS Corp., Yankee Notes (Canada) (BBB, Ba1) 06/01/07 7.500 249,000 1,135 TELUS Corp., Yankee Notes (Canada) (BBB, Ba1) 06/01/11 8.000 879,625 ------------- 2,788,418 ------------- TOTAL FOREIGN BONDS (Cost $5,901,196) 6,085,975 ------------- UNITED STATES TREASURY OBLIGATIONS (3.4%) UNITED STATES TREASURY BILLS (0.2%) 490 United States Treasury Bills++++ (AAA, Aaa) 02/13/03 1.590 488,046 ------------- UNITED STATES TREASURY BONDS (0.1%) 185 United States Treasury Bonds (AAA, Aaa) 02/15/31 5.375 195,327 ------------- UNITED STATES TREASURY NOTES (3.1%) 2,343 United States Treasury Notes (AAA, Aaa) 01/15/08 3.625 2,539,989 2,883 United States Treasury Notes (AAA, Aaa) 01/15/10 4.250 3,256,045 1,372 United States Treasury Notes (AAA, Aaa) 07/15/12 3.000 1,442,631 ------------- 7,238,665 ------------- TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $7,737,155) 7,922,038 ------------- MORTGAGE-BACKED SECURITIES (47.7%) 4,005 Bear Stearns Commercial Mortgage Securities, Inc., Series 2002-TOP6, Class A2 (AAA, Aaa) 10/15/36 6.460 4,469,842 3,995 Fannie Mae Global Notes (AAA, Aaa) 03/15/12 6.125 4,490,939 70 Fannie Mae Pool #004542 (AAA, Aaa) 12/01/08 12.000 76,095 16 Fannie Mae Pool #035574 (AAA, Aaa) 10/01/08 8.750 17,200 1 Fannie Mae Pool #076368 (AAA, Aaa) 09/01/03 9.250 989 605 Fannie Mae Pool #124211 (AAA, Aaa) 12/01/21 5.412 618,489 203 Fannie Mae Pool #124790 (AAA, Aaa) 02/01/23 9.000 224,259 265 Fannie Mae Pool #125136 (AAA, Aaa) 07/01/07 8.000 281,117 85 Fannie Mae Pool #243876 (AAA, Aaa) 01/01/09 9.000 89,636 415 Fannie Mae Pool #252492 (AAA, Aaa) 05/01/29 7.500 438,800 214 Fannie Mae Pool #252874 (AAA, Aaa) 11/01/29 7.500 226,854 263 Fannie Mae Pool #253183 (AAA, Aaa) 04/01/30 7.500 278,870 237 Fannie Mae Pool #270674 (AAA, Aaa) 09/01/17 9.000 262,479 87 Fannie Mae Pool #447109 (AAA, Aaa) 11/01/29 7.500 92,279 14 Fannie Mae Pool #504305 (AAA, Aaa) 08/01/29 7.500 15,234 40 Fannie Mae Pool #504338 (AAA, Aaa) 10/01/29 7.500 42,624 8 Fannie Mae Pool #504669 (AAA, Aaa) 10/01/29 7.500 8,847 15 Fannie Mae Pool #504672 (AAA, Aaa) 10/01/29 7.500 16,229 259 Fannie Mae Pool #507037 (AAA, Aaa) 08/01/29 7.500 274,337 33 Fannie Mae Pool #508801 (AAA, Aaa) 08/01/29 7.500 35,020 74 Fannie Mae Pool #515542 (AAA, Aaa) 10/01/29 8.000 79,088 174 Fannie Mae Pool #515943 (AAA, Aaa) 10/01/29 7.500 184,211 2 Fannie Mae Pool #515955 (AAA, Aaa) 10/01/29 7.500 2,495 See Accompanying Notes to Financial Statements. 17 PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ------ ------------- MORTGAGE-BACKED SECURITIES (CONTINUED) $ 25 Fannie Mae Pool #516832 (AAA, Aaa) 01/01/30 7.500 $ 26,814 270 Fannie Mae Pool #517894 (AAA, Aaa) 03/01/30 7.500 286,253 11 Fannie Mae Pool #521205 (AAA, Aaa) 12/01/29 7.500 12,143 37 Fannie Mae Pool #521369 (AAA, Aaa) 12/01/29 7.000 38,377 38 Fannie Mae Pool #523929 (AAA, Aaa) 11/01/29 7.500 40,487 75 Fannie Mae Pool #527587 (AAA, Aaa) 12/01/29 7.500 79,830 13 Fannie Mae Pool #527805 (AAA, Aaa) 03/01/30 7.500 13,878 77 Fannie Mae Pool #528126 (AAA, Aaa) 03/01/30 7.500 81,338 34 Fannie Mae Pool #528289 (AAA, Aaa) 03/01/30 7.500 35,870 6 Fannie Mae Pool #528508 (AAA, Aaa) 02/01/30 7.500 6,639 19 Fannie Mae Pool #528800 (AAA, Aaa) 01/01/30 7.000 19,945 184 Fannie Mae Pool #528803 (AAA, Aaa) 01/01/30 7.500 195,260 17 Fannie Mae Pool #529210 (AAA, Aaa) 02/01/30 7.500 18,437 61 Fannie Mae Pool #531075 (AAA, Aaa) 02/01/30 8.000 65,074 25 Fannie Mae Pool #532496 (AAA, Aaa) 03/01/30 7.500 26,315 195 Fannie Mae Pool #533026 (AAA, Aaa) 03/01/30 8.000 208,630 365 Fannie Mae Pool #533033 (AAA, Aaa) 03/01/30 8.000 390,445 188 Fannie Mae Pool #533440 (AAA, Aaa) 01/01/30 8.000 201,700 110 Fannie Mae Pool #533586 (AAA, Aaa) 03/01/30 7.500 115,961 74 Fannie Mae Pool #533714 (AAA, Aaa) 03/01/30 8.000 79,061 103 Fannie Mae Pool #534125 (AAA, Aaa) 03/01/30 7.500 108,603 159 Fannie Mae Pool #535083 (AAA, Aaa) 12/01/29 7.500 168,062 1,840 Fannie Mae Pool #535101 (AAA, Aaa) 08/01/13 6.500 1,938,742 111 Fannie Mae Pool #535159 (AAA, Aaa) 02/01/30 7.000 116,003 4,644 Fannie Mae Pool #650077 (AAA, Aaa) 07/01/32 7.500 4,913,902 2,175 Fannie Mae Pool #653373 (AAA, Aaa) 09/01/32 7.500 2,301,437 276 Fannie Mae, Series 1999-52, Class TC (AAA, Aaa) 05/25/22 7.000 276,399 9,560 Fannie Mae TBA (AAA, Aaa) 11/01/32 6.000 9,828,827 4,900 Fannie Mae TBA (AAA, Aaa) 11/01/32 6.500 5,146,519 13,040 Fannie Mae TBA (AAA, Aaa) 11/01/32 6.500 13,512,700 15,355 Fannie Mae TBA (AAA, Aaa) 11/01/32 7.000 16,045,975 1,840 Fannie Mae TBA (AAA, Aaa) 11/01/32 7.500 1,946,374 21,160 Fannie Mae TBA (AAA, Aaa) 11/01/32 8.000 22,628,081 661 Freddie Mac Pool #292065 (AAA, Aaa) 04/01/17 8.500 716,578 404 Freddie Mac Pool #606523 (AAA, Aaa) 10/01/19 5.658 414,156 8 Ginnie Mae Pool #058985 (AAA, Aaa) 07/15/13 11.000 9,761 10 Ginnie Mae Pool #068764 (AAA, Aaa) 09/15/13 12.000 12,138 76 Ginnie Mae Pool #093401 (AAA, Aaa) 01/15/10 9.500 85,017 2 Ginnie Mae Pool #296254 (AAA, Aaa) 09/15/20 9.500 2,392 3,278 Ginnie Mae Pool #508483 (AAA, Aaa) 05/15/31 7.000 3,444,109 1,004 Ginnie Mae Pool #545822 (AAA, Aaa) 06/15/31 7.500 1,067,696 7,705 Ginnie Mae TBA (AAA, Aaa) 11/01/17 7.000 8,092,654 1,425 J.P. Morgan Chase Commercial Mortgage Securities, Series 2002-CIB4, Class A3 (NA, Aaa) 05/12/34 6.162 1,553,318 1,215 LB Commercial Conduit Mortgage Trust, Series 1999-C2, Class A1 (NA, Aaa) 10/15/32 7.105 1,339,938 ------------- TOTAL MORTGAGE-BACKED SECURITIES (Cost $108,698,626) 109,837,771 ------------- See Accompanying Notes to Financial Statements. 18 NUMBER OF SHARES VALUE --------- ------------- COMMON STOCK (0.0%) SECONDARY OIL & GAS PRODUCERS (0.0%) 2,156 Southwest Royalties, Inc., Class A*^ (Cost $71,271) $ 32,620 ------------- WARRANTS (0.0%) BUILDING MATERIALS (0.0%) 65 Dayton Superior Corp., Wts., Rule 144A, expires June 2009*++ 26 ------------- TELECOMMUNICATIONS (0.0%) 40 GT Group Telecom, Inc., Rule 144A, expires Feburary 2010*++ 40 70 IWO Holdings, Inc., Rule 144A, strike $7.00, expires January 2011*++^ 0 ------------- 40 ------------- TOTAL WARRANTS (Cost $3,300) 66 ------------- PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% ----- ------------- -------- ----- SHORT-TERM INVESTMENTS (34.6%) $ 38,005 Federal Home Loan Bank, Discount Notes(1) (AAA, Aaa) 11/01/02 1.500 38,005,000 26,995 Federal Home Loan Bank, Discount Notes(1) (AAA, Aaa) 11/01/02 1.690 26,995,000 14,784 State Street Bank and Trust Co. Euro Time Deposit(1) 11/01/02 1.750 14,784,000 ------------- 79,784,000 ------------- TOTAL SHORT-TERM INVESTMENTS (Cost $79,784,000) 79,784,000 ------------- TOTAL INVESTMENTS AT VALUE (131.4%) (Cost $308,625,246) 302,640,279 LIABILITIES IN EXCESS OF OTHER ASSETS (-31.4%) (72,291,381) ------------- NET ASSETS (100.0%) $ 230,348,898 =============
INVESTMENT ABBREVIATIONS TBA = To Be Announced + Credit ratings given by Standard & Poor's Ratings Group and Moody's Investors Services, Inc. are unaudited. ++ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2002, these securities amounted to a value of $8,505,055 or 3.7% of net assets. ** Security in default. + Step Bond -- The interest as of October 31, 2002 is 0% and will reset to the interest rate shown at a future date. ++++ Collateral segregated for futures contracts. * Non-income producing security. ^ Not readily marketable; security is valued at fair value as determined in good faith by the Board of Trustees. (1) Collateral segregated for TBA securities. See Accompanying Notes to Financial Statements. 19 CREDIT SUISSE FIXED INCOME FUND STATEMENT OF ASSETS AND LIABILITIES October 31, 2002 ASSETS Investments at value (Cost $308,625,246) $ 302,640,279(1) Cash 565 Collateral received for securities loaned 12,141,101 Receivable for investments sold 3,354,520 Dividend and interest receivable 2,637,982 Receivable for fund shares sold 226,647 Variation margin receivable 105,920 Prepaid expenses and other assets 37,066 -------------- Total Assets 321,144,080 -------------- LIABILITIES Advisory fee payable 35,614 Administrative services fee payable 45,522 Distribution fee payable 11,462 Payable upon return of securities loaned 12,141,101 Payable for investments purchased 78,109,785 Payable for fund shares redeemed 278,626 Dividend payable 63,653 Trustees' fee payable 2,281 Other accrued expenses payable 107,138 -------------- Total Liabilities 90,795,182 -------------- NET ASSETS Capital stock, $0.001 par value 24,458 Paid-in capital 258,756,185 Accumulated net investment income 919,194 Accumulated net realized loss on investments (23,699,777) Net unrealized depreciation from investments, futures transactions and foreign currency translations (5,651,162) -------------- Net Assets $ 230,348,898 ============== COMMON SHARES Net assets $ 194,688,461 Shares outstanding 20,672,405 -------------- Net asset value, offering price and redemption price per share $ 9.42 ============== ADVISOR SHARES Net assets $ 25,649,954 Shares outstanding 2,723,136 -------------- Net asset value, offering price and redemption price per share $ 9.42 ============== See Accompanying Notes to Financial Statements. 20
A SHARES Net assets $ 3,829,239 Shares outstanding 406,392 -------------- Net asset value and redemption price per share $ 9.42 ============== Maximum offering price per share (net asset value/(1-4.75%)) $ 9.89 ============== B SHARES Net assets $ 5,148,500 Shares outstanding 546,683 -------------- Net asset value and offering price per share $ 9.42 ============== C SHARES Net assets $ 1,032,744 Shares outstanding 109,664 -------------- Net asset value and offering price per share $ 9.42 ==============
(1) Including $11,819,607 of securities on loan. See Accompanying Notes to Financial Statements. 21 CREDIT SUISSE FIXED INCOME FUND STATEMENT OF OPERATIONS For the Year Ended October 31, 2002
INVESTMENT INCOME Interest $ 17,083,744 Securities Lending 12,969 Foreign Taxes (9,261) -------------- Total investment income 17,087,452 -------------- EXPENSES Investment advisory fees 1,529,324 Administrative services fees 526,133 Shareholder servicing/Distribution Fees 129,680 Transfer agent fees 318,114 Registration fees 124,456 Printing fees 112,679 Custodian fees 63,917 Legal fees 51,016 Audit fees 33,675 Trustees' fees 15,526 Insurance expense 13,024 Interest expense 8,514 Miscellaneous expense 7,905 -------------- Total expenses 2,933,963 Less: fees waived (663,228) -------------- Net expenses 2,270,735 -------------- Net investment income 14,816,717 -------------- NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized loss from investments (18,211,422) Net realized loss from futures contracts (1,478,202) Net realized gain on foreign currency transactions 912,831 Net change in unrealized appreciation (depreciation) from investments (9,399,032) Net change in unrealized appreciation (depreciation) from futures transactions 333,805 Net change in unrealized appreciation (depreciation) from foreign currency translations (1,160,737) -------------- Net realized and unrealized loss from investments, futures transactions, and foreign currency related items (29,002,757) -------------- Net decrease in net assets resulting from operations $ (14,186,040) ==============
See Accompanying Notes to Financial Statements. 22 CREDIT SUISSE FIXED INCOME FUND STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ---------------- ---------------- FROM OPERATIONS Net investment income $ 14,816,717 $ 24,196,765 Net gain (loss) on investments, futures transactions and foreign currency transactions (18,776,793) 9,763,020 Net change in unrealized appreciation (depreciation) from investments, futures transactions and foreign currency translations (10,225,964) 8,810,260 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations (14,186,040) 42,770,045 ---------------- ---------------- FROM DIVIDENDS Dividends from net investment income Common Class shares (13,524,004) (22,611,857) Advisor shares (1,724,079) (1,575,183) Class A shares (77,454) (1,640) Class B shares (113,035) (5,920) Class C shares (30,679) (2,165) ---------------- ---------------- Net decrease in net assets resulting from dividends (15,469,251) (24,196,765) ---------------- ---------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 141,942,883 265,889,816 Exchange value of shares due to merger -- 133,335,833 Reinvestment of dividends 12,760,334 22,067,919 Net asset value of shares redeemed (273,724,434) (369,833,021) ---------------- ---------------- Net increase (decrease) in net assets from capital share transactions (119,021,217) 51,460,547 ---------------- ---------------- Net increase (decrease) in net assets (148,676,508) 70,033,827 NET ASSETS Beginning of year 379,025,406 308,991,579 ---------------- ---------------- End of year $ 230,348,898 $ 379,025,406 ================ ================ ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME $ 919,194 $ 23,013 ================ ================
See Accompanying Notes to Financial Statements. 23 CREDIT SUISSE FIXED INCOME FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR ENDED OCTOBER 31, -------------------------------------------------------------------- 2002(1) 2001 2000 1999 1998 ---------- ---------- ---------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 10.33 $ 9.78 $ 9.89 $ 10.41 $ 10.43 ---------- ---------- ---------- --------- --------- INVESTMENT OPERATIONS Net investment income 0.50 0.64 0.64 0.57 0.59 Net gain (loss) on investments (both realized and unrealized) and foreign currency related items (both realized and unrealized) (0.91) 0.55 (0.11) (0.48) 0.07 ---------- ---------- ---------- --------- --------- Total from investment operations (0.41) 1.19 0.53 0.09 0.66 ---------- ---------- ---------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.50) (0.64) (0.64) (0.57) (0.59) Distributions from net realized gains -- -- -- (0.04) (0.09) ---------- ---------- ---------- --------- --------- Total dividends and distributions (0.50) (0.64) (0.64) (0.61) (0.68) ---------- ---------- ---------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 9.42 $ 10.33 $ 9.78 $ 9.89 $ 10.41 ========== ========== ========== ========= ========= Total return(2) (4.07)% 12.52% 5.59% 0.92% 6.48% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 194,688 $ 334,647 $ 302,188 $ 393,433 $ 423,536 Ratio of expenses to average net assets 0.70% 0.72%(3) 0.77%(3) 0.76%(3) 30.75%(3) Ratio of net investment income to average net assets 4.90% 6.32% 6.53% 5.63% 5.64% Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.22% 0.13% 0.02% 0.04% 0.04% Portfolio turnover rate 385% 383% 247% 144% 124%
(1) As required, effective November 1, 2001, the Fund adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began including paydown gains and losses in interest income. The effect of this change is less than $0.01 per share on net investment income and net realized and unrealized gains and losses and less than 0.01% for the ratio of net investment income to average net assets for the year ended October 31, 2002. Per share ratios and supplemental data for prior periods have not been restated to reflect this change. (2) Total returns are historical and assume changes in share price and reinvestments of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. (3) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements resulted in a reduction to the Common Class shares' expense ratio by .00%, .02%, .01%, and .00% for the years ended October 31, 2001, 2000, 1999, and 1998, respectively. The Common Class shares' operating expense ratios after reflecting these arrangements were .72% for the year ended October 31, 2001, and .75% for the years ended October 31, 2000, 1999, and 1998, respectively. See Accompanying Notes to Financial Statements. 24 CREDIT SUISSE FIXED INCOME FUND FINANCIAL HIGHLIGHTS (For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR ENDED OCTOBER 31, -------------------------------------------------------------------- 2002(1) 2001 2000 1999 1998 ---------- ---------- ---------- --------- --------- PER SHARE DATA Net asset value, beginning of period $ 10.33 $ 9.78 $ 9.89 $ 10.41 $ 10.43 ---------- ---------- ---------- --------- --------- INVESTMENT OPERATIONS Net investment income 0.47 0.62 0.62 0.54 0.56 Net gain (loss) on investments and foreign currency related items (both realized and unrealized) (0.91) 0.55 (0.11) (0.48) 0.07 ---------- ---------- ---------- --------- --------- Total from investment operations (0.44) 1.17 0.51 0.06 0.63 ---------- ---------- ---------- --------- --------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (0.47) (0.62) (0.62) (0.54) (0.56) Distributions from net realized gains -- -- -- (0.04) (0.09) ---------- ---------- ---------- --------- --------- Total dividends and distributions (0.47) (0.62) (0.62) (0.58) (0.65) ---------- ---------- ---------- --------- --------- NET ASSET VALUE, END OF PERIOD $ 9.42 $ 10.33 $ 9.78 $ 9.89 $ 10.41 ========== ========== ========== ========= ========= Total return(2) (4.31)% 12.24% 5.33% 0.67% 6.21% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 25,650 $ 42,633 $ 6,804 $ 6,817 $ 3,058 Ratio of expenses to average net assets 0.95% 0.96%(3) 1.02%(3) 1.01%(3) 1.00%(3) Ratio of net investment income to average net assets 4.65% 5.86% 6.31% 5.38% 5.40% Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.22% 0.17% 0.02% 0.05% 0.04% Portfolio turnover rate 385% 383% 247% 144% 124%
(1) As required, effective November 1, 2001, the Fund adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began including paydown gains and losses in interest income. The effect of this change is less than $0.01 per share on net investment income and net realized and unrealized gains and losses and less than 0.01% for the ratio of net investment income to average net assets for the year ended October 31, 2002. Per share ratios and supplemental data for prior periods have not been restated to reflect this change. (2) Total returns are historical and assume changes in share price and reinvestments of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. (3) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements resulted in a reduction to the Advisor Class shares' expense ratio by .01%, .02%, .01%, and .00% for the years ended October 31, 2001, 2000, 1999, and 1998, respectively. The Advisor Class shares' operating expense ratios after reflecting these arrangements was .95% for the year ended October 31, 2001 and 1.00% for the years ended October 31, 2000, 1999, and 1998, respectively. See Accompanying Notes to Financial Statements. 25 CREDIT SUISSE FIXED INCOME FUND FINANCIAL HIGHLIGHTS (For a Class A Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2002(1) OCTOBER 31, 2001(2) ------------------- ------------------- PER SHARE DATA Net asset value, beginning of period $ 10.33 $ 10.26 ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.48 0.15 Net gain (loss) on investments and foreign currency related items (both realized and unrealized) (0.91) 0.07 ---------- ---------- Total from investment operations (0.43) 0.22 ---------- ---------- LESS DIVIDENDS Dividends from net investment income (0.48) (0.15) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 9.42 $ 10.33 ========== ========== Total return(3) (4.27)% 2.13% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 3,829 $ 406 Ratio of expenses to average net assets 0.95% 0.95%(4) Ratio of net investment income to average net assets 4.54% 5.66%(4) Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.25% 0.31%(4) Portfolio turnover rate 385% 383%
(1) As required, effective November 1, 2001, the Fund adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began including paydown gains and losses in interest income. The effect of this change is less than $0.01 per share on net investment income and net realized and unrealized gains and losses and less than 0.01% for the ratio of net investment income to average net assets for the year ended October 31, 2002. Per share ratios and supplemental data for prior periods have not been restated to reflect this change. (2) For the period July 31, 2001 (inception date) through October 31, 2001. (3) Total returns are historical and assume changes in share price, reinvestments 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 of less than one year are not annualized. (4) Annualized. See Accompanying Notes to Financial Statements. 26 CREDIT SUISSE FIXED INCOME FUND FINANCIAL HIGHLIGHTS (For a Class B Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2002(1) OCTOBER 31, 2001(2) ------------------- ------------------- PER SHARE DATA Net asset value, beginning of period $ 10.33 $ 10.26 ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.40 0.13 Net gain (loss) on investments and foreign currency related items (both realized and unrealized) (0.91) 0.07 ---------- ---------- Total from investment operations (0.51) 0.20 ---------- ---------- LESS DIVIDENDS Dividends from net investment income (0.40) (0.13) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 9.42 $ 10.33 ========== ========== Total return(3) (5.02)% 1.96% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 5,149 $ 1,044 Ratio of expenses to average net assets 1.70% 1.70%(4) Ratio of net investment income to average net assets 3.76% 4.87%(4) Decrease reflected in above operating expense ratios due to waivers 0.24% 0.32%(4) Portfolio turnover rate 385% 383%
(1) As required, effective November 1, 2001, the Fund adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began including paydown gains and losses in interest income. The effect of this change is less than $0.01 per share on net investment income and net realized and unrealized gains and losses and less than 0.01% for the ratio of net investment income to average net assets for the year ended October 31, 2002. Per share ratios and supplemental data for prior periods have not been restated to reflect this change. (2) For the period July 31, 2001 (inception date) through October 31, 2001. (3) Total returns are historical and assume changes in share price, reinvestments 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 of less than one year are not annualized. (4) Annualized. See Accompanying Notes to Financial Statements. 27 CREDIT SUISSE FIXED INCOME FUND FINANCIAL HIGHLIGHTS (For a Class C Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR FOR THE YEAR ENDED ENDED OCTOBER 31, 2002(1) OCTOBER 31, 2001(2) ------------------- ------------------- PER SHARE DATA Net asset value, beginning of period $ 10.33 $ 10.26 ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.40 0.12 Net gain (loss) on investments and foreign currency related items (both realized and unrealized) (0.91) 0.07 ---------- ---------- Total from investment operations (0.51) 0.19 ---------- ---------- LESS DIVIDENDS Dividends from net investment income (0.40) (0.12) ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 9.42 $ 10.33 ========== ========== Total return(3) (5.03)% 1.89% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 1,033 $ 296 Ratio of expenses to average net assets 1.70% 1.70%(4) Ratio of net investment income to average net assets 3.81% 4.82%(4) Decrease reflected in above operating expense ratios due to waivers 0.23% 0.33%(4) Portfolio turnover rate 385% 383%
(1) As required, effective November 1, 2001, the Fund adopted the provisions of AICPA Audit and Accounting Guide for Investment Companies and began including paydown gains and losses in interest income. The effect of this change is less than $0.01 per share on net investment income and net realized and unrealized gains and losses and less than 0.01% for the ratio of net investment income to average net assets for the year ended October 31, 2002. Per share ratios and supplemental data for prior periods have not been restated to reflect this change. (2) For the period July 31, 2001 (inception date) through October 31, 2001. (3) Total returns are historical and assume changes in share price, reinvestments 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 of less than one year are not annualized. (4) Annualized. See Accompanying Notes to Financial Statements. 28 CREDIT SUISSE FIXED INCOME FUND NOTES TO FINANCIAL STATEMENTS October 31, 2002 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Credit Suisse Fixed Income Fund (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company that seeks to generate high current income consistent with reasonable risk and, secondarily, capital appreciation. The fund was organized under the laws of the Commonwealth of Massachusetts as a business trust on January 20, 1987. The Fund is authorized to offer five classes of shares: Common Class, Advisor Class, Class A, Class B, and Class C shares. Each class of shares represents an equal pro rata interest in the Fund, except that they bear different expenses which reflect the differences in the range of services provided to them. Effective December 12, 2001, the Common Class closed to new investors. Common Class shares do not bear any distribution fees. Advisor Class shares bear expenses paid pursuant to a shareholder servicing plan adopted by the Fund at an annual rate not to exceed .75% of the average daily net asset value of the Fund's outstanding Advisor Class shares. Advisor Class shares currently bear expenses of .25% of average daily net assets. Class A shares are sold subject to a front-end sales charge of 4.75% and bear expenses paid pursuant to a distribution plan at an annual rate of .25% of the average daily net asset value of the Fund's Class A shares. Class B shares are sold subject to a contingent deferred sales charge which declines from 4.00% to zero depending on the period of time the shares are held and bear expenses paid pursuant to a distribution plan at an annual rate of 1.00% of the average daily net asset value of the Fund's Class B shares. Class C shares are sold subject to a contingent deferred sales charge of 1.00% if redeemed within the first year of purchase and bear expenses paid pursuant to a distribution plan at an annual rate of 1.00% of the average daily net asset value of the Fund's Class C shares. Effective as of the close of business on April 6, 2001, the Fund acquired all of the net assets of the Credit Suisse Warburg Pincus Fixed Income II Fund ("Fixed Income II") in a tax-free exchange of shares. The shares exchanged were 9,206,012 shares (valued at $93,738,572) of the Common Class of the Fund for 9,152,071 shares of Class D of Fixed Income II, 3,550,971 shares (valued at $36,153,007) of the Advisor Class of the Fund for 3,530,165 shares of Class A of Fixed Income II, 323,384 shares (valued at $3,292,431) of the Advisor Class of the Fund for 321,489 shares of Class B of Fixed Income II, and 14,919 shares (valued at $151,823) of the Advisor Class of the Fund for 14,817 shares of Class D of Fixed Income II. The Fixed Income II net assets of $133,335,834 at that date, which included $2,388,035 of unrealized 29 appreciation, were combined with those of the Fund. The aggregate net assets of Fixed Income II and the Fund immediately before the acquisition were $133,335,834 and $339,752,048, respectively, and the combined net assets of the Fund were $473,087,882. A) SECURITY VALUATION -- The net asset value of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. Debt securities are valued on the basis of broker quotations or valuations provided 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. The Fund's equity investments are valued at market value, which is generally determined using the last reported sales price. If no sales are reported, investments are generally valued at the last reported bid price. Securities and other assets for which market quotations are not readily available 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 in the absence of readily ascertainable market values. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless the Board determines that using this method would not reflect an investment's fair value. B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Fund are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate at the end of the period. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Fund does not isolate that portion of realized gains and losses on investments in equity securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of equity securities. The Fund isolates that portion of realized gains and losses on investments in debt securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of debt securities. C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis. The Fund amortizes premium and accretes discount using the effective interest method. Dividends are recorded on the ex-dividend date. Income, expenses (excluding class-specific expenses) and 30 realized/unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of the 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. Effective November 1, 2001, the Fund adopted the revised AICPA Audit and Accounting Guide, Audits of Investment Companies and began to classify gains and losses on paydowns of mortgage- and asset-backed securities, previously included in realized gain and losses as a component of interest income. The effect of this change for the year ended October 31, 2002, to the Fund was to decrease net investment income by $39,096 and to increase net realized gains by $39,096. These reclassifications had no impact on net assets or net asset value per share. The statements of changes in net assets and the financial highlights for all prior periods shown have not been restated to reflect this change. D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income are declared daily and paid monthly. Distributions of net realized capital gains, if any, are declared and paid at least annually. However, to the extent that a net realized capital gain can be reduced by a capital loss carryover, 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"). E) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is the 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. F) 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, 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. G) SHORT-TERM INVESTMENTS -- The Fund, together with other funds advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect, wholly-owned subsidiary of Credit Suisse Group, pool available cash into a short-term time deposit issued by State Street Bank and Trust Company, the 31 Fund's custodian. The short-term time deposit is a variable rate account classified as a short-term investment. H) TBA PURCHASE COMMITMENTS -- The Fund may enter into "TBA" (to be announced) purchase commitments to purchase securities for a fixed price at a future date, typically not exceeding 45 days. TBA purchase commitments may be considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date. This risk is in addition to the risk of decline in the Fund's other assets. Unsettled TBA purchase commitments are valued at the current market value of the underlying securities, according to the procedures described under "Security Valuation" above. I) FUTURES -- The Fund may enter into futures contracts to the extent permitted by its investment policies and objectives. Upon entering into a futures contract, the Fund is required to deposit cash or pledge U.S. Government securities as initial margin. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying instrument, are made or received by the Fund each day (daily variation margin) and are recorded as unrealized gains or losses until the contracts are closed. When the contracts are closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund's basis in the contracts. Risks of entering into futures contracts for hedging purposes include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. In addition, the purchase of futures contracts involves the risk that the Fund could lose more than the original margin deposit and subsequent payments required for a futures transaction. At October 31, 2002, the Fund had the following open futures contracts:
UNREALIZED NUMBER OF EXPIRATION CONTRACT CONTRACT APPRECIATION/ FUTURES CONTRACTS CONTRACTS DATE AMOUNT VALUE (DEPRECIATION) ----------------- --------- ---------- ------------- ------------- --------------- U.S. Treasury 10 Year Note Futures 134 12/19/02 $ 15,309,992 $ 15,372,312 $ 62,320 U.S. Treasury 2 Year Note Futures 184 12/30/02 39,162,151 39,591,625 429,474 U.S. Treasury Bond Futures 86 12/20/02 9,547,235 9,516,438 (30,797) ---- ------------- ------------- --------------- 404 $ 64,019,378 $ 64,480,375 $ 460,997 ==== ============= ============= =============== U.S. Treasury 5 Year Bond Futures (118) 12/19/02 $ (13,293,464) $ (13,420,656) $ (127,192) ==== ============= ============= ===============
32 J) 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 Fund in connection with securities lending activity is invested in the AIM Institutional Funds Liquid Asset Portfolio. 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. The market value of securities on loan to brokers and the value of collateral held by the Fund with respect to such loans at October 31, 2002 is as follows:
MARKET VALUE OF VALUE OF SECURITIES LOANED COLLATERAL RECEIVED ----------------- ------------------- $ 11,819,607 $ 12,141,101
Credit Suisse First Boston ("CSFB"), an affiliate of CSAM, has been engaged by the Fund to act as the Fund's securities lending agent. CSFB has agreed to charge the Fund fees for its securities lending activities equal to its costs in providing services as securities lending agent. CSFB also has voluntarily agreed to waive its fees for the securities lending agent services that it provides. CSFB may discontinue its voluntary fee waivers at any time. K) OTHER -- The Fund may invest in securities of foreign countries and governments, which involve certain risks in addition to those inherent in domestic investments. Such risks generally include, among other things, currency risk (fluctuations in currency exchange rates), information risk (key information may be inaccurate or unavailable) and political risk (expropriation, nationalization or the imposition of capital or currency controls or punitive taxes). Other risks of investing in foreign securities include liquidity and valuation risks. The Fund may be subject to taxes imposed by countries in which it invests, with respect to its investments in issuers existing or operating in such countries. Such taxes are generally based on income earned or repatriated and capital gains realized on the sale of such investments. The Fund accrues such taxes when the related income or gains are earned. 33 Lower-rated debt securities (commonly known as "junk bonds") possess speculative characteristics and are subject to greater market fluctuations and risk of lost income and principal than higher-rated debt securities for a variety of reasons. Also, during an economic downturn or substantial period of rising interest rates, highly leveraged issuers may experience financial stress which would adversely effect their ability to service their principal and interest payment obligations, to meet projected business goals and to obtain additional financing. In addition, periods of economic uncertainty and changes can be expected to result in increased volatility of market prices of lower-rated debt securities and (to the extent a Fund invests in junk bonds) the Fund's net asset value. NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES CSAM serves as investment adviser for the Fund. For its investment advisory services, CSAM is entitled to receive a fee from the Fund at an annual rate of .50% of the Fund's average daily net assets. For the year ended October 31, 2002, investment advisory fees earned and voluntarily waived were $1,529,324 and $663,228, respectively. Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of CSAM, and State Street Bank and Trust Company ("SSB") serve as co-administrators to the Fund. At its meeting held on February 12, 2002 the Board of Trustees approved SSB to replace PFPC, Inc. ("PFPC"), as co- administrator effective July 1, 2002. For its co-administrative services, CSAMSI currently receives a fee calculated at an annual rate of .10% of the Fund's average daily net assets. For the year ended October 31, 2002, co-administrative services fees earned by CSAMSI were $305,865. For its co-administrative services, PFPC was entitled to receive a fee, exclusive of out-of-pocket expenses, based on the following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ -------------------------------- First $150 million .07% of average daily net assets Next $150 million .06% of average daily net assets Over $300 million .05% of average daily net assets
For the period November 1, 2001 through June 30, 2002, co-administrative service fees earned by PFPC (including out-of-pocket expenses) were $145,579. 34 For its co-administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, based upon the following fee structure calculated in total for all the Credit Suisse Funds administered by SSB and allocated based upon relative average net assets of each fund.
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ --------------------------------- First $5 billion .050% of average daily net assets Next $5 billion .035% of average daily net assets Over $10 billion .020% of average daily net assets
For the period July 1, 2002 through October 31, 2002, administrative service fees earned by SSB (including out-of-pocket expenses) were $74,689. In addition to serving as the Fund's co-administrator, CSAMSI currently serves as distributor of the Fund's shares. Pursuant to a distribution plan adopted by the Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives a fee for its distribution services. This fee is calculated at an annual rate of .25% of the average daily net assets of the Advisor Class and Class A shares. For Class B and Class C shares of the Fund, the fee is calculated at an annual rate of 1.00% of average daily net assets of the Class B and Class C shares of the Fund. CSAMSI may use this fee to compensate service organizations for shareholder servicing and distribution services. For the year ended October 31, 2002, shareholder servicing and distribution fees earned by CSAMSI were as follows:
SHAREHOLDER SERVICING/ DISTRIBUTION FEE ---------------------- Advisor $ 88,735 Class A 4,182 Class B 29,042 Class C 7,721 --------- $ 129,680 =========
Certain brokers, dealers and financial representatives provide transfer agent related services to the Fund, and receive compensation from CSAM. CSAM is then reimbursed by the Fund. For the year ended October 31, 2002, the Fund reimbursed CSAM $191,759, which is included in the Fund's transfer agent expense. For the year ended October 31, 2002, CSAMSI and its affiliates advised the Fund that it retained $12,169 from commissions earned on the sale of the Fund's shares. 35 Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the Fund to provide certain financial printing and fulfillment services. For the year ended October 31, 2002, Merrill was paid $61,731 for its services to the Fund. NOTE 3. LINE OF CREDIT Through June 18, 2002, the Fund, together with other funds/portfolios advised by CSAM (collectively, the "Participating Funds"), participated in a $200 million committed, unsecured line of credit facility ("Prior Credit Facility") with Deutsche Bank, A.G. as administrative agent, State Street Bank and Trust Company as operations agent, BNP Paribas as syndication agent and certain other lenders, for temporary or emergency purposes primarily relating to unanticipated Participating Funds' share redemptions. Under the terms of the Prior Credit Facility, the Participating Funds paid an aggregate commitment fee at a rate of .10% per annum on the average unused amount of the Prior Credit Facility, which was allocated among the Participating Funds in such a manner as was determined by the governing Boards of the Participating Funds. In addition, the Participating Funds paid interest on borrowings at the Federal funds rate plus .50%. Effective June 19, 2002, the Participating Funds, together with additional funds/portfolios advised by CSAM (collectively with the Participating Funds, the "New Participating Funds"), established a new $150 million committed, unsecured, line of credit facility (the "New Credit Facility") with Deutsche Bank, A.G. as administrative agent and syndication agent and State Street Bank and Trust Company as operations agent for the same purposes as the Prior Credit Facility. Terms of the New Credit Facility remain the same as the Prior Credit Facility. The commitment fee rate and interest rate is unchanged. At October 31, 2002, there were no loans outstanding for the Fund either under the New Credit Facility or the Prior Credit Facility. During the year ended October 31, 2002, the Fund had no borrowings under the Prior Credit Facility and/or the New Credit Facility. NOTE 4. PURCHASES AND SALES OF SECURITIES For the year ended October 31, 2002, purchases and sales of investment securities (excluding short-term investments) and U.S. Government and Agency obligations were $1,166,184,353, $1,274,940,617, $767,731,317 and $768,190,763, respectively. 36 NOTE 5. CAPITAL SHARE TRANSACTIONS The Fund is authorized to issue an unlimited number of full and fractional shares of beneficial interest, $.001 par value per share, of which an unlimited number of shares are classified as the Common Class shares, Advisor Class shares, Class A shares, Class B shares and Class C shares. Transactions in capital shares for each class were as follows:
COMMON CLASS ----------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ----------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- -------------- ------------- -------------- Shares sold 12,935,824 $ 127,315,250 25,561,666 $ 259,862,002 Shares exchanged due to merger -- -- 9,206,012 93,717,204 Shares issued in reinvestment of dividends 1,165,358 11,445,049 2,045,797 20,787,938 Shares redeemed (25,825,803) (252,907,577) (35,301,525) (359,565,867) ------------- -------------- ------------- -------------- Net increase (decrease) (11,724,621) $ (114,147,278) 1,511,950 $ 14,801,277 ============= ============== ============= ============== ADVISOR CLASS ----------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001 ----------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- -------------- ------------- -------------- Shares sold 442,170 $ 4,399,467 414,413 $ 4,232,335 Shares exchanged due to merger -- -- 3,889,274 39,592,807 Shares issued in reinvestment of dividends 119,167 1,172,018 124,945 1,273,972 Shares redeemed (1,964,601) (19,124,277) (997,897) (10,168,343) ------------- -------------- ------------- -------------- Net increase (decrease) (1,403,264) $ (13,552,792) 3,430,735 $ 34,930,771 ============= ============== ============= ============== CLASS A ----------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001(1) ----------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- -------------- ------------- -------------- Shares sold 431,754 $ 4,181,523 43,442 $ 444,863 Shares issued in reinvestment of dividends 6,150 58,737 109 1,119 Shares redeemed (70,779) (704,769) (4,284) (43,949) ------------- -------------- ------------- -------------- Net increase 367,125 $ 3,535,491 39,267 $ 402,033 ============= ============== ============= ============== CLASS B ----------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001(1) ----------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- -------------- ------------- -------------- Shares sold 487,239 $ 4,735,172 106,093 $ 1,085,244 Shares issued in reinvestment of dividends 6,325 60,929 264 2,713 Shares redeemed (47,906) (459,888) (5,332) (54,862) ------------- -------------- ------------- -------------- Net increase 445,658 $ 4,336,213 101,025 $ 1,033,095 ============= ============== ============= ============== 37 CLASS C ----------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED OCTOBER 31, 2002 OCTOBER 31, 2001(1) ----------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- -------------- ------------- -------------- Shares sold 133,764 $ 1,311,471 28,430 $ 291,194 Shares issued in reinvestment of dividends 2,421 23,601 211 2,177 Shares redeemed (55,162) (527,923) -- -- ------------- -------------- ------------- -------------- Net increase 81,023 $ 807,149 28,641 $ 293,371 ============= ============== ============= ==============
(1) For the period July 31, 2001 (inception date) through October 31, 2001. On October 31, 2002, the number of shareholders that held 5% or more of the outstanding shares of each Class of the Fund was as follows:
NUMBER OF APPROXIMATE PERCENTAGE SHAREHOLDERS OF OUTSTANDING SHARES ------------ ---------------------- Common Class 3 55% Class A 3 55% Class C 4 49%
Some of the shareholders are comprised of omnibus accounts, which are held on behalf of several individual shareholders. NOTE 6. FEDERAL INCOME TAXES Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of foreign currency transactions, losses deferred due to wash sales and excise tax regulations. The tax characteristics of dividends and distributions paid during the period ended October 31, for the Fund was as follows:
ORDINARY INCOME LONG-TERM CAPITAL GAIN --------------------------- ---------------------- 2002 2001 2002 2001 ------------ ------------ ------ ------ $ 15,469,251 $ 24,196,765 $ -- $ --
At October 31, 2002, the components of distributable earnings on a tax basis for the Fund were as follows: Undistributed ordinary income $ 919,194 Accumulated realized loss (23,334,480) Unrealized depreciation (5,682,655) -------------- $ (28,097,941) ==============
38 At October 31, 2002, the Fund had capital loss carryovers available to offset possible future capital gains as follows:
EXPIRES OCTOBER 31, ----------------------- 2008 2010 --------- ---------- 1,683,356 21,651,124
At October 31, 2002, 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 (depreciation) from investments were $308,656,739, $5,193,758, $(10,876,413) and $(5,682,655), respectively. At October 31, 2002, the Fund reclassified $1,548,715 to accumulated undistributed net investment income from accumulated net realized gain (loss) from investments, to adjust for current period permanent book/tax differences which arose principally from differing book/tax treatments of defaulted bonds and paydowns. Net assets were not affected by these reclassifications. 39 CREDIT SUISSE FIXED INCOME FUND REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Trustees and Shareholders of Credit Suisse Fixed Income Fund: In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Credit Suisse Fixed Income Fund (the "Fund") at October 31, 2002, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the years (or periods) presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2002 by correspondence with the custodian and broker, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania December 18, 2002 40 CREDIT SUISSE FIXED INCOME FUND INFORMATION CONCERNING TRUSTEES AND OFFICERS (UNAUDITED)
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE TRUST SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE --------------------- ----------- ------------ -------------------- ------------- --------------- INDEPENDENT TRUSTEES Richard H. Francis Trustee and Since Currently retired; 53 Director of c/o Credit Suisse Asset Audit 1999 Executive Vice The Indonesia Management, LLC Committee President and Fund, Inc. 466 Lexington Avenue Member Chief Financial New York, New York Officer of Pan Am 10017-3147 Corporation and Pan American Age: 70 World Airways, Inc. from 1988 to 1991 Jack W. Fritz Trustee and Since Private investor; 52 Director of 2425 North Fish Creek Road Audit Fund Consultant and Advo, Inc. P.O. Box 1287 Committee Inception Director of Fritz (direct mail Wilson, Wyoming 83014 Member Broadcasting, Inc. advertising) and Fritz Age: 75 Communications (developers and operators of radio stations) since 1987 Jeffrey E. Garten Trustee and Since Dean of Yale 52 Director of Box 208200 Audit 1988 School of Aetna, Inc.; New Haven, Connecticut Committee Management and Director of 06520-8200 Member William S. Beinecke Calpine Energy Professor in the Corporation; Age: 56 Practice of Director of International CarMax Group Trade and Finance; (used car Undersecretary of dealers) Commerce for International Trade from November 1993 to October 1995; Professor at Columbia University from September 1992 to November 1993 41 TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE TRUST SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE --------------------- ----------- ------------ -------------------- ------------- --------------- INDEPENDENT TRUSTEES--(CONTINUED) Peter F. Krogh Trustee and Since Dean Emeritus and 52 Member of 301 ICC Audit 2001 Distinguished Professor Board Georgetown University Committee of International Affairs of The Carlisle Washington, DC 20057 Member at the Edmund A. Companies Inc.; Walsh School of Member of Age: 65 Foreign Service, Selection Georgetown University; Committee Moderator of PBS for Truman foreign affairs television Scholars and series Henry Luce Scholars; Senior Associate of Center for Strategic and International Studies; Trustee of numerous world affairs organizations James S. Pasman, Jr. Trustee and Since Currently retired; 54 Director of c/o Credit Suisse Asset Audit 1999 President and Chief Education Management, LLC Committee Operating Officer of Management 466 Lexington Avenue Member National InterGroup, Corp., New York, New York Inc. (holding company) Director of 10017-3147 from April 1989 to Credit Suisse March 1991; Chairman Asset Age: 71 of Permian Oil Co. Management from April 1989 to Income Fund, March 1991 Inc.; Trustee of Credit Suisse High Yield Bond Fund; 42 TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE TRUST SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE --------------------- ----------- ------------ -------------------- ------------- --------------- INDEPENDENT TRUSTEES--(CONTINUED) Steven N. Rappaport Trustee and Since Partner of Lehigh 53 Director of Lehigh Court, LLC Audit 1999 Court, LLC since July The First Israel 40 East 52nd Street Committee 2002; President of Fund, Inc. New York, New York Chairman Surguard Securities 10022 Finance, Inc. from 2001 to July 2002; President Age: 54 of Loanet, Inc. (on-line accounting service) from 1995 to 2001; Director, President, North American Operations, and former Executive Vice President from 1992 to 1993 of Worldwide Operations of Metallurg Inc.; Executive Vice President, Telerate, Inc. (provider of realtime information to the capital markets) from 1987 to 1992; Partner in the law firm of Hartman & Craven until 1987 INTERESTED TRUSTEE William W. Priest(2) Trustee Since Senior Partner and 59 Director of The Steinberg Priest & Sloane 1999 Fund Manager, Brazilian Equity Capital Management Steinberg Fund, Inc.; The & Sloane 12 East 49th Street Priest & Sloane Capital Chile Fund, Inc.; 12th Floor Management since The Emerging New York, New York March 2001; Chairman Markets Tele- 10017 and Managing communications Director of CSAM Fund, Inc.; The Age: 61 from 2000 to First Israel Fund, February 2001, Chief Inc.; The Latin Executive Officer and American Equity Managing Director of Fund, Inc.; The CSAM from 1990 to Indonesia Fund, 2000 Inc.; and Credit Suisse Asset Management Income Fund, Inc. 43 TERM OF OFFICE(1) END POSTIONS(S) LENGTH HELD WITH OF TIME NAME, ADDRESS AND AGE FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS --------------------- ------------ ------- -------------------------------------------------------- OFFICERS Laurence R. Smith Chairman Since Managing Director and Global Chief Investment Officer Credit Suisse Asset 2002 of CSAM; Associated with JP Morgan Investment Management, LLC Management from 1981 to 1999; Officer of other 466 Lexington Avenue Credit Suisse Funds New York, New York 10017-3147 Age: 44 Hal Liebes, Esq. Vice President Since Managing Director and Global General Counsel of CSAM; Credit Suisse Asset and Secretary 1999 Associated with Lehman Brothers, Inc. from 1996 to 1997; Management, LLC Associated with CSAM from 1995 to 1996; Associated 466 Lexington Avenue with CS First Boston Investment Management from 1994 New York, New York to 1995; Associated with Division of Enforcement, 10017-3147 U.S. Securities and Exchange Commission from 1991 to 1994; Officer of other Credit Suisse Funds Age: 38 Michael A. Pignataro Treasurer and Since Director and Director of Fund Administration Credit Suisse Asset Chief Financial 1999 of CSAM; Associated with CSAM since 1984; Management, LLC Officer Officer of other Credit Suisse Funds 466 Lexington Avenue New York, New York 10017-3147 Age: 43 Gregory N. Bressler, Esq. Assistant Since Vice President and Legal Counsel of CSAM Credit Suisse Asset Secretary 2000 since January 2000; Associated with the Management, LLC law firm of Swidler Berlin Shereff Friedman LLP 466 Lexington Avenue from 1996 to 2000; Officer of other Credit New York, New York Suisse Funds 10017-3147 Age: 36 44 TERM OF OFFICE(1) END POSTIONS(S) LENGTH HELD WITH OF TIME NAME, ADDRESS AND AGE FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS --------------------- ------------ ------- -------------------------------------------------------- OFFICERS--(CONTINUED) Kimiko T. Fields, Esq. Assistant Since Assistant Vice President and Legal Counsel of CSAM Credit Suisse Asset Secretary 2002 since December 2000; Assistant Vice President, Management, LLC Institutional Marketing Department, CSAM, from 466 Lexington Avenue January 2000 to December 2000; Marketing Associate, New York, New York International Equity Department, Warburg Pincus 10017-3147 Asset Management, Inc. from January 1998 to January 2000; self-employed author and consultant, Age: 38 from January 1996 to December 1997; Officer of other Credit Suisse Funds Rocco A. DelGuercio Assistant Since Vice President and Administrative Officer of CSAM; Credit Suisse Asset Treasurer 1999 Associated with CSAM since June 1996; Management, LLC Assistant Treasurer, Bankers Trust Co. - Fund 466 Lexington Avenue Administration from March 1994 to June New York, New York 1996; Mutual Fund Accounting Supervisor, 10017-3147 Dreyfus Corporation from April 1987 to March 1994; Officer of other Credit Suisse Funds Age: 39 Joseph Parascondola Assistant Since Assistant Vice President - Fund Administration of Credit Suisse Asset Treasurer 2000 CSAM since April 2000; Assistant Vice President, Deutsche Management, LLC Asset Management from January 1999 to April 2000; 466 Lexington Avenue Assistant Vice President, Weiss, Peck & Greer LLC New York, New York from November 1995 to December 1998; Officer of 10017-3147 other Credit Suisse Funds Age: 39 Robert M. Rizza Assistant Since Assistant Vice President of CSAM since January 2001; Credit Suisse Asset Treasurer 2002 Administrative Officer of CSAM from March 1998 to Management, LLC December 2000; Assistant Treasurer of Bankers 466 Lexington Avenue Trust Co. from April 1994 to March 1998; Officer of. New York, New York other Credit Suisse Funds 10017-3147 Age: 37
---------- (1) Each Trustee and Officer serves his or her respective successor has been duly elected and qualified. (2) Mr. Priest is a Trustee who is an "interested person" of the Fund as defined in the 1940 Act, because he was an officer of CSAM until February 2001. The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 800-927-2874. 45 [CREDIT SUISSE ASSET MANAGEMENT LOGO] P.O. BOX 55030, BOSTON, MA 02205-5030 800-927-2874 - www.CreditSuisseFunds.com CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. WPFIX-2-1002