[DLJ LOGO] ANNUAL REPORT Leadership through Experience - ----------------------------- DLJ Core Equity Fund DLJ Growth and Income Fund DLJ Small Company Value Fund DLJ Technology Fund DLJ Strategic Growth Fund DLJ International Equity Fund DLJ Developing Markets Fund DLJ Fixed Income Fund DLJ Municipal Trust Fund DLJ High Income Fund October 31, 2000 DEAR SHAREHOLDERS: Without a doubt, the most newsworthy development in the capital markets since our April report has been the demise of the NASDAQ market, led by the collapse of the 'new economy dot-coms'. While painful to watch, we think this return to old economy concepts like earnings and valuation, is healthier for the markets in the long term. We are pleased to note that all of our domestic equity funds are ahead of their respective benchmarks for the calendar year to date, rewarding patience and our sticking to our investment disciplines. While the equity markets, particularly the international arena, have generally been difficult, the fixed income markets have provided positive returns as interest rates decline in anticipation of an economic slowdown and the Federal Reserve's adoption of an easing bias. The notable exception has been the high yield area, where weakness in the telecom area has impacted the entire market, driving yield spreads significantly higher. We believe our portfolios are relatively well positioned. The return to more traditional valuation metrics can only help us. If the economy experiences only a modest slowdown, even the high yield area may become attractive, while our core fixed income portfolios should continue to do well. DLJ CORE EQUITY FUND For the twelve months ended October 31, 2000 the DLJ Core Equity Fund Class A shares returned 14.39% versus a 6.09% return for the S&P 500. Investments in the technology, pharmaceuticals, and financial sectors were among the Fund's best performers. Among the Fund's more successful technology holdings were Ciena, EMC Corp and Scientific Atlanta. In the pharmaceuticals/medical supplies group, Amgen, Baxter International, and Medtronic performed especially well. Some of our telecom and retail holdings were our poorer performers. DLJ GROWTH AND INCOME FUND For the year ended October 31, 2000 the DLJ Growth and Income Fund Class A shares returned 8.44% versus a 6.09% return for the S&P 500. The recent rotation back to more 'value' oriented issues has helped the fund considerably. Consumer staples, led by healthcare issues, and energy have been our strongest performing sectors. Technology, where we have only modest exposure, has been our weakest sector. We continue to reduce the number of names in the portfolio. At the end of October, we held 62 issues, down from 73 as of October 1999. In an attempt to make the portfolio more defensive, we have been trying to reduce the overall price/earnings ratio of the portfolio. We have reduced or eliminated exposure to some richly valued issues including: Walgreen's, Automatic Data Processing, American International Group, and Enron. On the buy side, we have modestly raised the yield of the portfolio through the purchase of some high quality companies available at reasonable valuations, including: Avery Dennison, CP&L Energy, Emerson Electric, Kimberly Clark, and 3M. Our worst purchases were in the technology sector, with Computer Associates and Unisys among our biggest losers. DLJ SMALL COMPANY VALUE FUND For the fiscal year ended October 31, 2000 the DLJ Small Company Value Fund Class A shares returned 21.69% versus 17.41% for the Russell 2000 Index. The collapse of the NASDAQ market that began in the Spring of 2000 has helped the Fund's performance dramatically relative to the Russell 2000 Index. We have had no exposure to the 'new economy dot coms' that have imploded over the past six months. Generally, our consumer staple holdings, particularly those that are health care related, have been strong performers. Some of our technology stocks have performed poorly. Due in part to the volatility experienced by our technology holdings, we did make a larger than usual capital gains distribution for the fiscal year just ended. While we were fortunate in eliminating or reducing many of our technology issues at much higher than current prices, many of these issues were relatively short-lived holdings. We have tried to reduce the gain without sacrificing the longer-term potential of the Fund. While the Fund has enjoyed strong absolute and relative performance thus far in 2000, we believe our holdings remain significantly undervalued. To a large degree, we feel this year has just been the start of a 'catch-up' period following two very difficult years for the small cap value style. As investor enthusiasm for all things technology wanes, we believe the Fund is well situated for several years of potentially strong performance. DLJ TECHNOLOGY FUND From the inception of the Fund through the fiscal year ended October 31, 2000 the DLJ Technology Fund Class R shares returned 27.90% versus 11.81% for the Hambrecht and Quist Technology Index. Investments in the Storage Networks and Systems, Telecommunications Equipment, Software, and Semiconductor industries were among the Fund's best performers. Investments in the Internet, Wireless Telecommunication, and Information Services industries under-performed over the period. DLJ STRATEGIC GROWTH FUND From the inception of the Fund through the fiscal year ended October 31, 2000 the DLJ Strategic Growth Fund Class R shares returned 9.40% versus - 3.01% for the S&P BARRA Growth Index. Investments in the Software, Hardware, Electronics, Semiconductor, and Securities and Asset Management industries were among the Fund's best performers. Investments in the Department Stores, Telecommunications, and Specialty Retail industries under-performed over the period. DLJ INTERNATIONAL EQUITY FUND The DLJ International Equity Fund Class A returned - 1.87% versus - 2.66% for the Fund's benchmark, the MSCI EAFE Free Index, for the year ended October 31, 2000. International developed markets have had a disappointing year, with most markets falling since the end of the first quarter. In Europe, despite some anecdotal evidence of improving export competitiveness due to the weak Euro and productivity gains, the automobile and machinery sectors underperformed, but the real culprit was the telecommunications sector. Following frenzied expectations for 3G spectrum auctions earlier in the year, mature reflection concluded that there are some very large bills to be paid. A general sense of pessimism in global markets, in general, was worsened by profit warnings from some US technology companies. The Fund maintained an overweighted position in Asia, underweighted in Japan, and it was slightly underweighted in Europe. DLJ DEVELOPING MARKETS FUND The total return of the Class A shares of the DLJ Developing Markets Fund for the year ended October 31, 2000 was - 13.67% versus - 8.81% for the Fund's benchmark, the MSCI Emerging Markets Free Index. Following a spectacular 1999, developing markets were down during most of 2000. Markets sold off sharply, especially during the third and fourth quarter, primarily due to growing concerns over the impact of a slowing US economy, rising oil prices, profit warnings, and currency volatility. Asian markets have been the most impacted on a relative basis. At these levels, Global Emerging Markets are poised to recover, are oversold, and valuations look very cheap. Over the next 12 months, we continue to expect that the best returns are likely to come from Brazil, China and South Korea. The Fund had higher weightings in Latin America and Asia relative to its index. DLJ FIXED INCOME FUND The DLJ Fixed Income Fund Class A shares returned 5.31% for the fiscal year ended October 31, 2000 versus 6.46% for the Lehman Brothers Government Corporate Intermediate Bond Index. The Federal Reserve maintained a bias toward higher short-term interest rates throughout this time period, in an effort to slow domestic growth. This effort to slow growth, coupled with the U.S. Treasury's decision to implement a series of Treasury debt buybacks, increased the overall demand for long maturity debt with no perceived credit risk. The Fund increased it's exposure to Treasury debt throughout the year, in an effort to capture the appreciation potential afforded this sector. DLJ MUNICIPAL TRUST FUND The DLJ Municipal Trust Fund Class A shares returned 5.20% for the fiscal year ended October 31, 2000. Returns in the municipal bond markets were aided this year by a significant decrease in interest rates as the marketplace responded to decreases in economic activity, anticipating a more accomodative Federal Reserve monetary policy. Additionally, municipal bond performance was aided from a technical standpoint by reduced primary market municipal supply coupled with strong demand by the investing public. The Fund was shorter in average maturity than its peer group this year in order to accomodate liquidations made throughout the year and consequently lagged the Lipper Intermediate Muni Index return of 6.44% for the fiscal year ended October 31, 2000. DLJ HIGH INCOME FUND The DLJ High Income Fund outperformed the Lipper High Yield Bond Fund Index (the Lipper Index) for the fiscal year ended October 31, 2000. The Fund's average annual total return for the fiscal year periods noted above was - 0.06% on its Class A shares versus - 3.20% for the Lipper Index for the same time period. The Fund also outperformed the CSFB/DLJ High-Yield Bond Index during that period. That index compiled a total return of - 0.99% for the fiscal year period. The high-yield bond market has been under heavy downward pressure for much of the year 2000 and so our emphasis on higher quality, more defensive credits enabled us to outperform the overall market. The pressure stems from widespread concern over whether the economy will go into recession or just enter a slower growth mode in 2001 and what that means for earnings and cash flow generation, credit availability, and bond default and recovery rates. This has led to a flight out of risk-assets (like equities and high yield bonds) and into U.S. Treasuries in recent months. Given the sea-change in the economic and financial environments in the past 6 months, investors' concerns are certainly understandable. Investors are worried that they don't know where the market 'bottom' is at this point. We expect that over the next several months that question will be answered. However, for the time being we will continue our relatively defensive posture in the Fund. The portfolio is market-weighted by sector with an emphasis on larger issuers and more liquid bonds. The Officers and Trustees wish you a happy and prosperous New Year. Sincerely, [SIGNATURE] G. Moffett Cochran President December, 2000 FUND HIGHLIGHTS (unaudited) DLJ CORE EQUITY FUND PORTFOLIO CHANGES For the Year Ended October 31, 2000 MAJOR PURCHASES MAJOR SALES American Home Products Corp.(1) Amgen, Inc. Chevron Corp.(1) Ciena Corp. Citigroup, Inc.(1) Coca Cola Company(2) Computer Associates International, Inc. Freddie Mac(2) EMC Corp.(1) MediaOne Group, Inc.(2) Fleet Boston Corp.(1) Oracle Corp. Johnson & Johnson(1) Pharmacia & Upjohn, Inc.(2) Merck & Co., Inc. Phillips Petroleum Co.(2) Qwest Communications International, Inc.(1) Sprint Corp. (PCS Group) Sun Microsystems, Inc.(1) U.S. Bancorp.(2) (1) New Holdings (2) Deletions TEN LARGEST HOLDINGS October 31, 2000 PERCENT VALUE OF FUND ----------- ------- General Electric Co......................................... $10,249,937 4.3% Merck & Co., Inc............................................ 7,590,725 3.2 Cisco Systems, Inc.......................................... 7,574,825 3.2 EMC Corp.................................................... 7,356,563 3.1 Microsoft Corp.............................................. 7,080,350 3.0 Exxon Mobil Corp............................................ 6,118,262 2.6 Intel Corp.................................................. 5,985,000 2.5 Ciena Corp.................................................. 5,151,125 2.1 American Express Co......................................... 4,828,860 2.0 Lehman Brothers Holdings, Inc............................... 4,811,700 2.0 ----------- ---- $66,747,347 28.0% ----------- ---- ----------- ---- INVESTMENT RESULTS For the Periods Ended October 31, 2000 [CHART] DLJ Core Equity Fund Class A Without Load With Load S&P 500 ------------ --------- ------- 10/90 $10,000 $ 9,425 $10,000 10/91 12,970 12,225 13,352 10/92 13,575 12,795 14,680 10/93 15,524 14,632 16,873 10/94 16,169 15,239 17,524 10/95 18,143 17,099 22,155 10/96 21,829 20,574 27,496 10/97 27,610 26,022 36,327 10/98 33,408 31,487 44,318 10/99 43,688 41,176 55,690 10/00 49,974 47,101 59,082 AVERAGE ANNUAL TOTAL RETURNS ------------------------------ 1 YEAR 5 YEARS 10 YEARS ------- -------- --------- DLJ CORE EQUITY FUND Class A With Load.......................... 7.80% 21.03% 16.76% Without Load....................... 14.39% 22.46% 17.46% Class B With Load.......................... 9.58% N/A N/A Without Load....................... 13.58% N/A N/A Class D.............................. 14.69% N/A N/A S&P 500.............................. 6.09% 21.67% 19.44% INCEPTION AVG. ANNUAL AGGREGATE DATE TOTAL RETURN TOTAL RETURN S&P 500 --------- ------------ ------------ ------- Class B With Load............ 02/28/96 20.25% N/A 20.43% Without Load......... 02/28/96 20.25% N/A 20.43% Class C With Load............ 02/28/00 N/A 7.90% 5.38% Without Load......... 02/28/00 N/A 8.90% 5.38% Class D................ 05/13/99 13.01% N/A 4.31% Class R................ 08/01/00 N/A 0.00% 0.18% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains, but the returns calculated above have been computed after deduction of all fund expenses including advisory fees. Class A returns shown above are computed with and without the imposition of the maximum 5.75% front-end sales load. Effective February 28, 1996, the Fund began offering Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund also commenced offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class R shares are offered to eligible institutions who purchase shares on behalf of their clients. Class D shares are currently offered only to employees of Credit Suisse and its subsidiaries who are eligible to participate in the Credit Suisse First Boston Employees' Savings and Profit Sharing Plan. Class D and Class R shares are not subject to any sales charges. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. The S&P 500 Composite Stock Price Index is a widely accepted, unmanaged index of overall stock market performance, which does not take into account charges, fees and other expenses. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ GROWTH AND INCOME FUND PORTFOLIO CHANGES For the Year Ended October 31, 2000 MAJOR PURCHASES MAJOR SALES Bell Atlantic Corp.(1) Abbot Laboratories Co.(2) Burlington Resources, Inc.(1) BP Amoco PLC Costco Wholesale Corp.(1) Cisco Systems, Inc.(2) Emerson Electric Co.(1) Freddie Mac General Mills, Inc.(1) Intel Corp.(2) Minnesota Mining & Manufacturing Co.(1) NTL, Inc.(2) Rohm & Haas Co.(1) Oracle Corp.(2) Safeway, Inc.(1) Republic NY Corp.(2) Unisys Corp. Texas Instruments, Inc.(2) Viacom Inc.(1) Walgreen Co.(2) (1) New Holdings (2) Deletions TEN LARGEST HOLDINGS October 31, 2000 PERCENT VALUE OF FUND ----------- ------- Merck & Co., Inc............................................ $ 9,587,338 3.8% American International Group, Inc........................... 9,354,296 3.7 United Technologies Corp.................................... 8,475,238 3.4 Tyco International Ltd...................................... 8,446,438 3.4 Automatic Data Processing, Inc.............................. 7,589,312 3.0 Enron Corp.................................................. 7,484,100 3.0 Cardinal Health, Inc........................................ 7,106,250 2.8 SYSCO Corp.................................................. 6,993,125 2.8 General Dynamics Corp....................................... 6,562,281 2.6 Avon Products, Inc.......................................... 6,523,250 2.6 ----------- ---- $78,121,628 31.1% ----------- ---- ----------- ---- INVESTMENT RESULTS For the Periods Ended October 31, 2000 [CHART] DLJ Growth and Income Fund Class A S&P 500 Without Load With Load ------- ------------ --------- 10/90 $10,000 $10,000 $ 9,425 10/91 13,352 12,685 11,955 10/92 14,680 13,591 12,809 10/93 16,873 15,892 14,978 10/94 17,524 16,621 15,665 10/95 22,155 19,297 18,188 10/96 27,496 23,657 22,297 10/97 36,327 30,880 29,104 10/98 44,318 36,790 34,675 10/99 55,690 42,079 39,659 10/00 59,082 45,629 43,005 Comparison of Change in Value of $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS ------------------------------ 1 YEAR 5 YEARS 10 YEARS ------- -------- --------- DLJ GROWTH AND INCOME FUND Class A With Load.......................... 2.22% 17.38% 15.71% Without Load....................... 8.44% 18.78% 16.39% Class B With Load.......................... 3.66% N/A N/A Without Load....................... 7.66% N/A N/A Class D.............................. 8.75% N/A N/A S&P 500.............................. 6.09% 21.67% 19.44% INCEPTION AVG. ANNUAL AGGREGATE DATE TOTAL RETURN TOTAL RETURN S&P 500 --------- ------------ ------------ ------- Class B With Load............ 02/28/96 16.23% N/A 20.43% Without Load......... 02/28/96 16.23% N/A 20.43% Class C With Load............ 02/28/00 N/A 16.02% 5.38% Without Load......... 02/28/00 N/A 17.02% 5.38% Class D................ 04/30/99 5.25% N/A 5.88% Class R................ 08/01/00 N/A 9.96% 0.18% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains, but the returns calculated above have been computed after deduction of all fund expenses including advisory fees. Class A returns shown above are computed with and without the imposition of the maximum 5.75% front-end sales load. Effective February 28, 1996, the Fund began offering Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund also commenced offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class R shares are offered to eligible institutions who purchase shares on behalf of their clients. Class D shares are currently offered only to employees of Credit Suisse and its subsidiaries who are eligible to participate in the Credit Suisse First Boston Employees' Savings and Profit Sharing Plan. Class D and Class R shares are not subject to any sales charges. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. The S&P 500 Composite Stock Price Index is a widely accepted, unmanaged index of overall stock market performance, which does not take into account charges, fees and other expenses. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ SMALL COMPANY VALUE FUND PORTFOLIO CHANGES For the Year Ended October 31, 2000 MAJOR PURCHASES MAJOR SALES BISYS Group, Inc.(1) Applied Power, Inc.(2) CCB Financial Corp. Dallas Semiconductor Corp. CFW Communications Co.(1) DII Group, Inc.(2) Equitable Resources, Inc.(1) Electro Scientific Industries, Inc. Mercury Computer Systems, Inc.(1) Helmerich & Payne, Inc.(2) Modine Manufacturing Co. IGATE Capital Corp. Oceaneering International, Inc.(1) Methode Electronics, Inc. Performance Food Group, Inc.(1) Pericom Semiconductor, Inc. Pharmaceutical Product Development, Inc.(1) Technitrol, Inc. Rogers Corp.(1) WICOR, Inc.(2) (1) New Holdings (2) Deletions TEN LARGEST HOLDINGS October 31, 2000 PERCENT VALUE OF FUND ----------- ------- Performance Food Group, Inc................................. $ 5,143,500 2.5% Brown & Brown, Inc.......................................... 4,998,500 2.4 BISYS Group, Inc............................................ 4,995,250 2.4 Equitable Resources, Inc.................................... 4,872,000 2.4 Pharmaceutical Product Development, Inc..................... 4,853,438 2.4 National Fuel Gas Co........................................ 4,804,800 2.3 Invacare Corp............................................... 4,750,950 2.3 Arrow International, Inc.................................... 4,676,250 2.3 Banta Corp.................................................. 4,618,266 2.2 Carlisle Companies, Inc..................................... 4,503,825 2.2 ----------- ---- $48,216,779 23.4% ----------- ---- ----------- ---- INVESTMENT RESULTS For the Periods Ended October 31, 2000 [CHART] DLJ SMALL COMPANY VALUE FUND Class A RUSSELL WITHOUT LOAD WITH LOAD 2000 ------------ --------- ------- 10/90 10,000 9,425 10,000 10/91 15,156 14,285 15,858 10/92 18,287 17,235 17,364 10/93 22,920 21,602 22,989 10/94 23,991 22,612 22,917 10/95 26,655 25,122 27,119 10/96 30,334 28,590 31,625 10/97 40,187 37,876 40,900 10/98 35,686 33,634 36,057 10/99 37,636 35,472 41,418 10/00 45,799 43,165 48,629 Comparison of Change in Value of $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS ------------------------------ 1 YEAR 5 YEARS 10 YEARS ------- -------- --------- DLJ SMALL COMPANY VALUE FUND Class A With Load.......................... 14.70% 10.13% 15.75% Without Load....................... 21.69% 11.43% 16.44% Class B With Load.......................... 16.80% N/A N/A Without Load....................... 20.80% N/A N/A RUSSELL 2000......................... 17.41% 12.39% 17.14% INCEPTION AVG. ANNUAL AGGREGATE RUSSELL DATE TOTAL RETURN TOTAL RETURN 2000 --------- ------------ ------------ ------- Class B With Load............. 02/28/96 9.72% N/A 10.96% Without Load.......... 02/28/96 9.72% N/A 10.96% Class C With Load............. 02/28/00 N/A 21.16% -13.19% Without Load.......... 02/28/00 N/A 22.16% -13.19% Class R................. 08/01/00 N/A 5.95% -0.20% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains, but the returns calculated above have been computed after deduction of all fund expenses including advisory fees. Class A returns shown above are computed with and without the imposition of the maximum 5.75% front-end sales load. Effective February 28, 1996, the Fund began offering Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund also commenced offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class R shares are offered to eligible institutions who purchase shares on behalf of their clients. Class R shares are not subject to any sales charges. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. The Russell 2000 Index is an unmanaged index and is composed of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index is composed of 3,000 of the largest U.S. companies by market capitalization. The Index does not take into account charges, fees and other expenses. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ TECHNOLOGY FUND PORTFOLIO ALLOCATION October 31, 2000* [CHART] Business & I.T. Services 1.2% Internet Business to B&C 2.1% Software Products 19.4% Telecommunications Equipment 10.1% Electronic Manufacturing Services 8.5% Computer Systems Manufacturers 8.5% Communications Services 7.9% Semicondutor Manufacturers-Large 7.3% Internet Business-to-Business 6.8% Storage Networks & Systems 5.8% Semiconductor Capital Equipment 5.1% Semiconductor Manufacturers-Fabless 4.5% Personal Computer Manufacturers 3.6% Computer Networking 3.4% Internet Business-to-Consumer 3.3% Cash & Other Assets/Liabilities 2.5% *Technology Industries defined by Chase Hambrecht & Quist. TEN LARGEST HOLDINGS October 31, 2000 PERCENT VALUE OF FUND ----------- ---------- Network Appliance, Inc...................................... $ 1,645,175 4.5% Sun Microsystems, Inc....................................... 1,485,725 4.0 CIENA Corp.................................................. 1,329,831 3.6 Veritas Software Corp....................................... 1,329,072 3.6 EMC Corp.................................................... 1,242,422 3.4 Cognos, Inc................................................. 1,232,550 3.4 Sanmina Corp................................................ 1,140,267 3.1 Oracle Corp................................................. 1,072,500 2.9 Siebel Systems, Inc......................................... 1,015,270 2.8 Palm, Inc................................................... 995,406 2.7 ----------- ---- $12,488,218 34.0% ----------- ---- ----------- ---- INVESTMENT RESULTS For the Period Ended October 31, 2000 HAMBRECHT & INCEPTION AGGREGATE QUIST DATE TOTAL RETURN NASDAQ TECHNOLOGY INDEX --------- ------------ ------- ---------------- DLJ TECHNOLOGY FUND Class A With Load....................... 08/01/00 -9.36% -10.52% -4.67% Without Load.................... 08/01/00 -3.83% -10.52% -4.67% Class B With Load....................... 08/01/00 -7.83% -10.52% -4.67% Without Load.................... 08/01/00 -3.98% -10.52% -4.67% Class C With Load....................... 08/01/00 -4.95% -10.52% -4.67% Without Load.................... 08/01/00 -3.98% -10.52% -4.67% Class D............................ 09/01/00 -19.00% -19.87% -18.95% Class R............................ 11/18/99 27.90% 0.83% 11.81% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains. The Fund commenced offering Class A, B and C shares on August 1, 2000. Class A returns shown above are computed with and without the imposition of the maximum 5.75% front-end sales load. Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. Class C shares are subject to a 1.00% CDSC during the first year. Class D shares are currently offered only to employees of Credit Suisse and its subsidiaries who are eligible to participate in the Credit Suisse First Boston Employees' Savings and Profit Sharing Plan. Class D and Class R shares are not subject to any sales charges. The Fund commenced offering Class R shares on November 18, 1999 to eligible institutions who purchase shares on behalf of their clients. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. NASDAQ is a widely accepted value-weighted index of stock market performance, which does not take into account charges, fees and other expenses. The Hambracht & Quist Technology Index is comprised of the publicly traded stocks of 250 technology companies. It is market-capitalization weighted and is representative of the overall industry at any point in time. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ STRATEGIC GROWTH FUND PORTFOLIO ALLOCATION October 31, 2000* [CHART] Information Services 2.2% Cash & Other Assets/Liabilities 1.7% Technology 49.5% Consumer Staples 25.7% Consumer Cyclical 9.1% Capital Goods 8.1% Financial 3.7% *Industry sectors defined by Barra, Inc. TEN LARGEST HOLDINGS October 31, 2000 PERCENT VALUE OF FUND ---------- ---------- General Electric Co......................................... $ 416,575 4.7% Merck & Co., Inc............................................ 332,769 3.8 Microsoft Corp.............................................. 321,991 3.7 Cisco Systems, Inc.......................................... 320,556 3.7 EMC Corp.................................................... 307,266 3.5 Sun Microsystems, Inc....................................... 282,731 3.2 Intel Corp.................................................. 270,000 3.1 Oracle Corp................................................. 247,500 2.8 Veritas Software Corp....................................... 243,252 2.8 Johnson & Johnson........................................... 221,100 2.5 ---------- ---- $2,963,740 33.8% ---------- ---- ---------- ---- INVESTMENT RESULTS For the Period Ended October 31, 2000 INCEPTION AGGREGATE S&P 500/BARRA DATE TOTAL RETURN GROWTH INDEX --------- ------------ ------------- DLJ STRATEGIC GROWTH FUND Class A With Load.................................... 08/01/00 -6.94% -7.01% Without Load................................. 08/01/00 -1.26% -7.01% Class B With Load.................................... 08/01/00 -5.21% -7.01% Without Load................................. 08/01/00 -1.26% -7.01% Class C With Load.................................... 08/01/00 -2.25% -7.01% Without Load................................. 08/01/00 -1.26% -7.01% Class R......................................... 11/18/99 9.40% -3.01% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains. The Fund commended offering Class A, B and C shares on August 1, 2000. Class A returns shown above are computed with and without the imposition of the maximum 5.75% front-end sales load. Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. Class C shares are subject to a 1.00% CDSC during the first year. The Fund commenced offering Class R shares on November 18, 1999 to eligible institutions who purchase shares on behalf of their clients. Class R shares are not subject to any sales charges. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable shares charge. The S&P500/Barra Growth Index is a widely accepted, unmanaged index that is a subset of the S&P 500 Composite Stock Price Index. It includes companies with higher than average price to book ratios and does not take into account charges, fees and other expenses. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ INTERNATIONAL EQUITY FUND ASSET ALLOCATION BY COUNTRY October 31, 2000 TEN LARGEST HOLDINGS October 31, 2000 [CHART] Denmark 0.3% Ireland 0.4% Singapore 0.5% Australia 0.7% Portugal 0.8% Belgium 1.8% Finland 2.0% Sweden 2.0% Spain 2.7% Netherlands 4.5% Germany 4.9% Cash & Other Assets/Liabilities 5.9% Switzerland 6.2% Italy 7.0% Hong Kong 7.1% France 13.5% Japan 18.2% United Kingdom 21.5% PERCENT COUNTRY US $ VALUE OF FUND -------------- ----------- ------- Vodafone Group Plc.............................. United Kingdom $ 1,851,499 2.9% San Paolo -- IMI SPA............................ Italy 1,624,630 2.6 Total Fina SA................................... France 1,485,072 2.3 Shell Transport & Trading Co. Plc............... United Kingdom 1,409,491 2.2 Oy Nokia (Ab) Ser `A'........................... Finland 1,249,444 2.0 ING Groep NV.................................... Netherlands 1,112,357 1.8 China Telecom (Hong Kong) Ltd................... Hong Kong 1,108,205 1.8 Takeda Chemical Industries Ltd.................. Japan 1,053,576 1.7 Royal Bank of Scotland Group Plc................ United Kingdom 1,016,505 1.6 Nestle SA....................................... Switzerland 959,165 1.5 ----------- ---- $12,869,944 20.4% ----------- ---- ----------- ---- INVESTMENT RESULTS For the Periods Ended October 31, 2000 [CHART] DLJ International Equity Fund Class A Without Load With Load EAFE ------------ --------- ---- 9/95 10,000 9,425 10,000 10/95 9,580 9,029 9,852 10/96 10,380 9,783 10,916 10/97 11,420 10,763 11,454 10/98 12,357 11,646 12,594 10/99 15,045 14,180 15,537 10/00 14,764 13,915 15,124 Comparison of Change in Value of $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS ------------------------------- 1 YEAR 5 YEARS -------------- -------------- DLJ INTERNATIONAL EQUITY FUND Class A With Load......... -7.49% 7.76% Without Load...... -1.87% 9.03% Class B With Load......... -6.24% 8.18% Without Load...... -2.84% 8.18% Class D............. -1.70% N/A MSCI EAFE INDEX..... -2.66% 8.95% INCEPTION AVG. ANNUAL AGGREGATE MSCI EAFE DATE TOTAL RETURN TOTAL RETURN INDEX --------- ------------ ------------ --------- Class A With Load................ 09/08/95 6.65% N/A 8.42% Without Load............. 09/08/95 7.89% N/A 8.42% Class B With Load................ 09/08/95 7.04% N/A 8.42% Without Load............. 09/08/95 7.04% N/A 8.42% Class C With Load................ 02/28/00 N/A -14.05% -10.31% Without Load............. 02/28/00 N/A -13.18% -10.31% Class D.................... 05/13/99 5.80% N/A 5.73% Class R.................... 08/01/00 N/A -7.66% -6.25% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains. Class A returns shown above are computed with and without the imposition of the maximum 5.75% front-end sales load. Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund commenced offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class R shares are offered to eligible institutions who purchase shares on behalf of their clients. Class D shares are currently offered only to employees of Credit Suisse and its subsidiaries who are eligible to participate in the Credit Suisse First Boston Employees' Savings and Profit Sharing Plan. Class D and Class R shares are not subject to any sales charges. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. The MSCI EAFE Index is an unmanaged index composed of a sample of companies representative of the market structure of European and Pacific Basin countries. The index is the property of Morgan Stanley & Co. Incorporated. The index does not take into account charges, fees and other expenses. Further information relating to Fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ DEVELOPING MARKETS FUND ASSET ALLOCATION BY COUNTRY October 31, 2000 [CHART] Argentina 0.7% Philippines 0.7% Czech Republic 0.6% Venezuela 0.4% Morocco 0.3% Cash & Other Assets/Liabilities (0.2)% Brazil 13.3% Taiwan 12.2% South Korea 11.3% Mexico 11.3% China 8.7% South Africa 5.6% Malaysia 5.5% India 4.8% Israel 4.7% Turkey 4.0% Greece 4.0% Russia 3.1% Chile 2.4% Hungary 1.9% Thailand 1.8% United Kingdom 1.6% Poland 1.3% TEN LARGEST HOLDINGS October 31, 2000 PERCENT OF COUNTRY US $ VALUE FUND ----------- ----------- ---------- Taiwan Semiconductor Manufacturing Co. Ltd........ Taiwan $ 635,250 4.1% China Telecom (Hong Kong) Ltd..................... China 599,204 3.9 Samsung Electronics GDR........................... South Korea 590,000 3.8 Petroleo Brasileiro SA Prf........................ Brazil 450,810 2.9 Check Point Software Technologies Ltd............. Israel 413,359 2.7 Cifra SA de CV Ser.`V'............................ Mexico 390,168 2.5 United Microelectronics Corp...................... Taiwan 366,367 2.4 Korea Electrical Power ADR........................ South Korea 365,625 2.3 Fomento Economico Mexicano SA de CV............... Mexico 362,311 2.3 Compania Vale do Rio Doce SA Prf.................. Brazil 345,821 2.2 ---------- ---- $4,518,915 29.1% ---------- ---- ---------- ---- INVESTMENT RESULTS For the Periods Ended October 31, 2000 [CHART] DLJ Developing Markets Fund Class A Without Load EAFE With Load ------------ --------- --------- 9/95 $10,000 $9,425 $10,000 10/95 9,530 8,982 9,462 10/96 9,960 9,387 10,075 10/97 9,544 8,995 9,220 10/98 7,158 6,746 6,363 10/99 10,006 9,433 9,203 10/00 8,638 8,144 8,392 Comparison of Change in Value of $10,000 Investment AVERAGE ANNUAL TOTAL RETURNS ------------------------------ 1 YEAR 5 YEARS -------------- ------------- DLJ DEVELOPING MARKETS FUND Class A With Load................................................. -18.66% -3.09% Without Load.............................................. -13.67% -1.94% Class B With Load................................................. -17.71% -2.70% Without Load.............................................. -14.29% -2.70% MSCI EMERGING MARKETS FREE INDEX............................ -8.81% -2.37% INCEPTION AVG. ANNUAL AGGREGATE MSCI EMERGING DATE TOTAL RETURN TOTAL RETURN MARKETS FREE INDEX --------- ------------ ------------ ------------------ Class A With Load............... 09/08/95 -3.92% N/A -3.34% Without Load............ 09/08/95 -2.81% N/A -3.34% Class B With Load............... 09/08/95 -3.56% N/A -3.34% Without Load............ 09/08/95 -3.56% N/A -3.34% Class C With Load............... 02/28/00 N/A -33.79% -27.16% Without Load............ 02/28/00 N/A -33.12% -27.16% Class R................... 08/01/00 N/A -18.50% -14.93% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains. Class A returns shown above are computed with and without the imposition of the maximum 5.75% front-end sales load. Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund commenced offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class R shares are offered to eligible institutions who purchase shares on behalf of their clients. Class R shares are not subject to any sales charge. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. The MSCI Emerging Markets Free Index is an unmanaged index composed of a sample of companies representative of the market structure of developing countries worldwide. The index is the property of Morgan Stanley & Co. Incorporated. The index does not take into account charges, fees and other expenses. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ FIXED INCOME FUND TEN LARGEST HOLDINGS October 31, 2000 PERCENT PERCENT VALUE OF FUND VALUE OF FUND ---------- ------- ---------- ------- U.S. Treasury Notes MBNA Master Credit Card Trust 7.000%, 07/15/06............. $7,486,737 5.6% 6.450%, 02/15/08.............. $4,938,250 3.7% Federal Home Loan Bank MCI Communications Corp. 7.360%, 07/01/04............. 6,166,020 4.6 6.125%, 04/15/02.............. 4,937,500 3.7 U.S. Treasury Bond Ford Motor Credit Corp. 7.500%, 11/15/16............. 6,048,420 4.5 7.375%, 10/28/09.............. 4,887,500 3.7 U.S. Treasury Note U.S. Treasury Bill 6.125%, 12/31/01............. 5,343,901 4.0 6.375%, 03/31/01.............. 4,650,651 3.5 U.S. Treasury Note AT&T Corp. 6.250%, 08/31/02............. 5,023,650 3.8 6.000%, 03/15/09.............. 4,393,750 3.3 PORTFOLIO CHARACTERISTICS October 31, 2000 30 DAY YIELD, CLASS A: 5.49% AVERAGE RATING: AA* 30 DAY YIELD, CLASS B: 5.01% AVERAGE YEARS TO MATURITY: 6.9 years* 30 DAY YIELD, CLASS C: 4.86% AVERAGE COUPON: 6.35%'D'* 30 DAY YIELD, CLASS D: 6.02% AVERAGE DURATION: 3.4 years* 30 DAY YIELD, CLASS R: 5.77% * Weighted Averages 'D' Exclusive of Commercial Paper INVESTMENT RESULTS For the Periods Ended October 31, 2000 [CHART] DLJ Fixed Income Fund Class A Lehman Brothers Without Load With Load Gov't Corp. 10/90 10,000 9,425 10,000 10/91 11,392 10,851 11,379 10/92 12,574 11,977 12,517 10/93 14,056 13,388 13,760 10/94 13,440 12,802 13,495 10/95 15,084 14,368 15,185 10/96 15,739 14,991 16,069 10/97 16,816 16,017 17,272 10/98 18,238 17,372 18,844 10/99 18,190 17,376 19,030 10/00 19,157 18,247 20,259 AVERAGE ANNUAL TOTAL RETURNS ------------------------------ 1 YEAR 5 YEARS 10 YEARS ------- -------- --------- DLJ FIXED INCOME FUND Class A With Load................................................. 0.31% 3.88% 6.20% Without Load.............................................. 5.31% 4.90% 6.72% Class B With Load................................................. 0.57% N/A N/A Without Load.............................................. 4.57% N/A N/A Class D..................................................... 5.62% N/A N/A LEHMAN BROS. GOV'T. CORPORATE INTERMEDIATE BOND INDEX....... 6.46% 5.94% 7.32% LEHMAN BROS. GOV'T. CORP. INCEPTION AVG. ANNUAL AGGREGATE INTERMEDIATE DATE TOTAL RETURN TOTAL RETURN BOND INDEX --------- ------------ ------------ ------------ Class B With Load............................... 02/28/96 4.15% N/A 5.90% Without Load............................ 02/28/96 4.15% N/A 5.90% Class C With Load............................... 02/28/00 N/A 2.86% 6.19% Without Load............................ 02/28/00 N/A 3.86% 6.19% Class D................................... 04/30/99 3.72% N/A 4.57% Class R................................... 08/01/00 N/A 2.44% 2.57% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains. Class A returns shown above are computed with and without the imposition of the maximum 4.75% front-end sales load. Effective February 28, 1996, the Fund began offering Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund also commenced offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class R shares are offered to eligible institutions who purchase shares on behalf of their clients. Class D shares are currently offered only to employees of Credit Suisse and its subsidiaries who are eligible to participate in the Credit Suisse Employees' Savings and Profit Sharing Plan. Class D and Class R shares are not subject to any sales charges. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. The Lehman Brothers Government/Corporate Intermediate Bond Index is comprised of securities in the Lehman Brothers Government/Corporate Bond Index that have maturities of 5-10 years. The Lehman Brothers Government/Corporate Bond Index includes the Lehman Brothers Government Bond Index and the Lehman Brothers Corporate Bond Index, which do not take into account charges, fees and other expenses. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ MUNICIPAL TRUST FUND TEN LARGEST HOLDINGS October 31, 2000 PERCENT VALUE OF FUND ---------- ------- Plano, Texas Independent School District 6.000%, 02/15/05............ $2,107,500 8.9% Houston, Texas Revenue 5.000%, 03/01/05............ 2,032,500 8.6 Grand River Dam Authority, Oklahoma 6.250%, 06/01/11............ 1,678,125 7.1 Denver, Colorado City & County Airport 6.750%, 11/15/22............ 1,629,375 6.9 Port Authority of Houston, Texas 5.375%, 10/01/05............ 1,321,219 5.6 PERCENT VALUE OF FUND ---------- ------- Chicago, Illinois Metropolitan Water Reclamation District 7.000%, 01/01/11........... $1,157,500 4.9% Texas State Refunding Ser. A 6.000%, 10/01/08........... 1,086,250 4.6 New York State Dormitory Authority Revenue 6.500%, 05/15/06........... 1,086,250 4.6 Indiana University Revenue Student Fee Ser. K 6.500%, 08/01/05........... 1,082,500 4.6 New York City, NY Ser. G 5.750%, 02/01/08........... 1,056,250 4.5 PORTFOLIO CHARACTERISTICS October 31, 2000 30 DAY YIELD, CLASS A: 3.66% AVERAGE RATING: AA* 30 DAY YIELD, CLASS B: 3.11% AVERAGE YEARS TO MATURITY: 5.2 years* 30 DAY YIELD, CLASS C: 2.61% AVERAGE COUPON: 5.75%* 30 DAY YIELD, CLASS R: 3.89% AVERAGE DURATION: 4.3 years* * Weighted Averages INVESTMENT RESULTS For the Periods Ended October 31, 2000 [CHART] DLJ Municipal Trust Fund Class A Without Load With Load Lipper ------------ --------- ------ 07/93 10,000 9,525 10,000 10/93 10,183 9,699 10,309 10/94 9,952 9,479 10,060 10/95 10,953 10,433 11,160 10/96 11,373 10,832 11,639 10/97 12,211 11,631 12,403 10/98 12,982 12,365 13,248 10/99 12,849 12,239 13,127 10/00 13,517 12,875 13,972 AVERAGE ANNUAL TOTAL RETURNS ------------------------------ 1 YEAR 5 YEARS -------------- ------------- DLJ MUNICIPAL TRUST FUND Class A With Load................................................. 0.21% 3.28% Without Load.............................................. 5.20% 4.29% Class B With Load................................................. 0.45% N/A Without Load.............................................. 4.45% N/A LIPPER INTERMEDIATE MUNICIPAL FUND INDEX.................... 6.44% 4.64% LIPPER INTERMEDIATE INCEPTION AVG. ANNUAL AGGREGATE MUNICIPAL DATE TOTAL RETURN TOTAL RETURN FUND INDEX --------- ------------ ------------ ------------ Class A With Load.................. 07/28/93 3.54% N/A 4.71% Without Load............... 07/28/93 4.24% N/A 4.71% Class B With Load.................. 02/28/96 3.45% N/A 4.39% Without Load............... 02/28/96 3.45% N/A 4.39% Class C With Load.................. 02/28/00 N/A 2.65% 5.68% Without Load............... 02/28/00 N/A 3.65% 5.68% Class R...................... 08/01/00 N/A 1.46% 1.78% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains. Class A returns shown above are computed with and without the imposition of the maximum 4.75% front-end sales load. Effective February 28, 1996, the Fund began offering Class B shares, which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund also commenced offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class R shares are offered to eligible institutions who purchase shares on behalf of their clients. Class R shares are not subject to any sales charges. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. The Lipper Intermediate Municipal Fund Index is an equally weighted performance index of the 30 largest funds in the Lipper grouping of intermediate municipal debt funds, adjusted for capital gains and income dividends. Further information relating to Fund performance, including expense reimbursements, is contained in the Financial Highlights section of the Prospectus and elsewhere in this report. FUND HIGHLIGHTS (unaudited) DLJ HIGH INCOME FUND TEN LARGEST HOLDINGS October 31, 2000 Esat Telecom Group PLC Ser. B 11.875%, 12/01/08........... $296,250 2.2% Triarc Consumer Group, Inc. 10.250%, 02/15/09........... 281,250 2.1 R&B Falcon Corp. 9.500%, 12/15/08............ 268,125 2.0 Dobson/Sygnet Communications, Inc. 13.000%, 05/01/09........... 265,875 1.9 King Pharmaceutical, Inc. 10.750%, 02/15/09........... 265,000 1.9 PERCENT PERCENT VALUE OF FUND VALUE OF FUND -------- ------- -------- ------- Argosy Gaming Co. 10.750%, 06/01/09........... $262,500 1.9 % Packaging Corp. of America 9.625%, 04/01/09............ 256,250 1.9 Express Scripts, Inc. 9.625%, 06/15/09............ 253,125 1.8 Station Casinos, Inc. 10.125%, 03/15/06........... 252,500 1.8 Canadaigua Brands, Inc. 8.500%, 03/01/09............ 252,200 1.8 PORTFOLIO AND FUND INFORMATION October 31, 2000 30 Day Yield, Class A: 11.12% Average Rating: B* 30 Day Yield, Class B: 10.87% Average Years to Maturity: 6.4 years* 30 Day Yield, Class C: 10.87% Average Coupon: 8.70%'D'* 30 Day Yield, Class D: 11.94% 30 Day Yield, Class R: 11.68% * Weighted Average 'D' Exclusive of Commercial Paper INVESTMENT RESULTS For the Periods Ended October 31, 2000 [CHART] DLJ High Income Fund Class A WITHOUT LOAD WITH LOAD LIPPER ------------ --------- ------ 3/99 10,000 9,525 10,000 10/99 10,219 9,734 10,011 10/00 10,213 9,728 9,806 Comparison of Change in Value of $10,000 Investment AVG. ANNUAL TOTAL RETURN 1 YEAR ------------ DLJ HIGH INCOME FUND Class A With Load................................................. -4.79% Without Load.............................................. -0.06% Class B With Load................................................. -4.42% Without Load.............................................. -0.81% Class D..................................................... 0.29% LIPPER HIGH YIELD BOND FUND INDEX........................... -3.20% LIPPER INCEPTION AVG. ANNUAL AGGREGATE HIGH YIELD DATE TOTAL RETURN TOTAL RETURN BOND FUND INDEX --------- ------------ ------------ --------------- Class A With Load................ 03/08/99 -1.67% N/A -1.91% Without Load............. 03/08/99 1.29% N/A -1.91% Class B With Load................ 03/08/99 -1.84% N/A -1.91% Without Load............. 03/08/99 0.48% N/A -1.91% Class C With Load................ 02/28/00 N/A -4.28% -6.20% Without Load............. 02/28/00 N/A -3.31% -6.20% Class D.................... 05/13/99 -0.92% N/A -4.49% Class R.................... 08/01/00 N/A -2.98% -4.34% The performance data quoted represents past performance, which is no indication of future performance. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. No adjustment has been made for any income taxes payable by shareholders on dividends or capital gains. Class A returns shown above are computed with and without the imposition of the maximum 4.75% front-end sales load. Effective March 8, 1999, the Fund began offering Class B shares which, instead of a front-end sales load, are subject to a contingent deferred sales charge (CDSC) ranging from 4% during the first year to 0% after 4 years. The Fund also commenced offering Class C shares on February 28, 2000, subject to a 1.00% CDSC during the first year, and Class R shares on August 1, 2000. Class R shares are offered to eligible institutions who purchase shares on behalf of their clients. Class D shares are currently offered only to employees of Credit Suisse and its subsidiaries who are eligible to participate in the Credit Suisse First Boston Employees' Savings and Profit Sharing Plan. Class D and Class R shares are not subject to any sales charges. The performance data for Class A, B and C shares are referenced in the table above with and without the imposition of their applicable sales charge. The Lipper High Yield Bond Fund Index is an equally weighted performance index of the 30 largest funds within the investment objective of high yield bonds, as defined by Lipper. The index is adjusted for the reinvestment of capital gains and income dividends. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 - -------------------------------------------------------------------------------- DLJ CORE EQUITY FUND COMMON STOCKS -- 99.0% SHARES VALUE BASIC MATERIALS -- 1.5% ----------- ------------ CHEMICALS-0.5% Air Products and Chemicals, Inc. ... 31,000 $ 1,156,687 ------------ METALS & MINING-1.0% Alcoa, Inc. ........................ 83,300 2,389,669 ------------ 3,546,356 ------------ CAPITAL GOODS -- 9.0% AEROSPACE & DEFENSE-1.4% General Dynamics Corp. ............. 47,100 3,370,594 ------------ CONGLOMORATES-6.1% General Electric Co. ............... 187,000 10,249,937 Tyco International Ltd. ............ 76,500 4,336,594 ------------ 14,586,531 ------------ ELECTRICAL EQUIPMENT-1.5% Emerson Electric Co. ............... 49,100 3,605,781 ------------ 21,562,906 ------------ CONSUMER CYCLICAL -- 10.3% BROADCASTING & CABLE TV-1.1% Cablevision Systems Corp.*.......... 20,000 1,490,000 Comcast Corp.*...................... 30,000 1,222,500 ------------ 2,712,500 ------------ LEISURE RELATED-1.4% Disney (Walt) Co. .................. 94,500 3,384,281 ------------ PERSONAL & HOUSEHOLD PRODUCTS-0.8% Estee Lauder Companies, Inc. Cl. A.................................. 38,300 1,778,556 ------------ PRINTING & PUBLISHING-1.1% Time Warner, Inc. .................. 34,700 2,634,077 ------------ RETAIL-GENERAL-5.9% CVS Corp. .......................... 71,500 3,785,031 Home Depot, Inc. ................... 60,700 2,610,100 Target Corp. ....................... 117,300 3,240,413 Wal-Mart Stores, Inc. .............. 99,200 4,501,200 ------------ 14,136,744 ------------ 24,646,158 ------------ CONSUMER STAPLES -- 19.2% BEVERAGE & TOBACCO-0.6% Pepsico, Inc. ...................... 29,000 1,404,688 ------------ DRUGS-10.9% American Home Products Corp. ....... 72,000 4,572,000 Amgen, Inc.*........................ 67,500 3,910,781 Johnson & Johnson................... 39,000 3,592,875 Merck & Co., Inc. .................. 84,400 7,590,725 Pharmacia Corp. .................... 55,700 3,063,500 Shering-Plough Corp. ............... 61,200 3,163,275 ------------ 25,893,156 ------------ HOSPITAL SUPPLIES & SERVICES-0.6% Medtronic, Inc. .................... 24,700 1,341,519 ------------ FOOD & FOOD RETAILERS-3.0% General Mills, Inc.................. 60,300 2,517,525 SYSCO Corp.......................... 88,000 4,592,500 ------------ 7,110,025 ------------ MEDICAL EQUIPMENT & SUPPLIES-1.1% Baxter International, Inc........... 33,000 2,712,187 ------------ SOAPS & TOILETRIES - 3.0% Colgate-Palmolive Co................ 61,200 3,596,112 Procter & Gamble Co................. 51,500 3,679,031 ------------ 7,275,143 ------------ 45,736,718 ------------ SHARES VALUE ENERGY -- 7.5% ----------- ------------ OIL-INTERNATIONAL-6.7% Chevron Corp........................ 53,200 $ 4,369,050 Exxon Mobil Corp.................... 68,600 6,118,262 Royal Dutch Petroleum Co............ 43,100 2,559,063 Texaco, Inc......................... 49,500 2,923,594 ------------ 15,969,969 ------------ OIL-SERVICES-0.8% Schlumberger Ltd.................... 23,500 1,788,938 ------------ 17,758,907 ------------ FINANCIAL -- 16.3% BANKING-6.9% Chase Manhattan Corp................ 69,400 3,157,700 Citigroup, Inc...................... 86,500 4,552,062 Fleet Boston Financial Corp......... 65,000 2,470,000 Northern Trust Corp................. 36,000 3,073,500 Wells Fargo & Co.................... 70,000 3,241,875 ------------ 16,495,137 ------------ FINANCIAL SERVICES-4.8% American Express Co................. 80,481 4,828,860 Lehman Brothers Holdings, Inc....... 74,600 4,811,700 Providian Financial Corp............ 16,200 1,684,800 ------------ 11,325,360 ------------ INSURANCE-4.6% American General Corp............... 30,500 2,455,250 American International Group, Inc................................ 42,900 4,204,200 Hartford Financial Services, Inc.... 58,400 4,347,150 ------------ 11,006,600 ------------ 38,827,097 ------------ TECHNOLOGY -- 33.4% COMMUNICATIONS EQUIPMENT-4.1% Ciena Corp.*........................ 49,000 5,151,125 Nortel Networks Corp................ 101,600 4,622,800 ------------ 9,773,925 ------------ COMPUTERS-16.2% Cisco Systems, Inc.*................ 140,600 7,574,825 EMC Corp.*.......................... 82,600 7,356,563 International Business Machines Corp............................... 31,500 3,102,750 Microsoft Corp.*.................... 102,800 7,080,350 Oracle Corp.*....................... 131,600 4,342,800 Qwest Communications International, Inc.*.............................. 72,000 3,501,000 Sun Microsystems, Inc.*............. 31,000 3,437,125 Veritas Software Corp.*............. 16,300 2,298,555 ------------ 38,693,968 ------------ ELECTRONICS-8.7% Intel Corp.......................... 133,000 5,985,000 Linear Technology Corp.............. 28,000 1,807,750 Sanmina Corp.*...................... 11,700 1,337,456 Scientific-Atlanta, Inc............. 60,000 4,106,250 Solectron Corp.*.................... 73,800 3,247,200 Texas Instruments, Inc.............. 88,500 4,342,031 ------------ 20,825,687 ------------ OFFICE SUPPLIES-0.7% Avery Dennison Corp................. 30,400 1,535,200 ------------ See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- DLJ CORE EQUITY FUND SHARES VALUE ----------- ------------ TELECOMMUNICATIONS-3.7% MCI WorldCom, Inc.*................. 127,000 $ 3,016,250 Nextel Communications, Inc.*........ 49,200 1,891,125 Sprint Corp. (PCS Group)*........... 34,800 1,326,750 Voicestream Wireless Corp........... 20,000 2,630,000 ------------ 8,864,125 ------------ 79,692,905 ------------ TRANSPORT & SERVICE -- 1.8% ADVERTISING-1.8% Omnicom Group, Inc.................. 47,200 4,354,200 ------------ TOTAL COMMON STOCKS (cost $150,839,250)................ 236,125,247 ------------ PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER -- 1.1% ----------- ------------ (amortized cost $2,644,000) National Australia Funding 6.581%, 11/01/00**................. $ 2,644,000 $ 2,644,000 ------------ TOTAL INVESTMENTS -- 100.1% (cost $153,483,249)................ 238,769,247 ------------ LIABILITIES NET OF CASH AND OTHER ASSETS -- (0.1)%............. (147,241) ------------ NET ASSETS -- 100.0%................ $238,622,006 ------------ ------------ * Non-income producing ** Commercial paper is traded on a discount basis; the interest rate shown reflects the discount rate paid at the time of purchase by the Fund. - -------------------------------------------------------------------------------- DLJ GROWTH AND INCOME FUND COMMON STOCKS -- 97.0% SHARES VALUE BASIC MATERIALS -- 11.2% ----------- ------------ CHEMICALS-0.4% Rohm & Haas Co...................... 37,000 $ 1,112,313 ------------ ELECTRICAL EQUIPMENT-2.0% Emerson Electric Co................. 70,000 5,140,625 ------------ OIL & GAS-7.0% BP Amoco PLC........................ 28,566 1,455,081 Burlington Resources, Inc........... 110,000 3,960,000 Exxon Mobil Corp.................... 41,000 3,656,687 Schlumberger Ltd.................... 62,500 4,757,813 Texaco, Inc......................... 64,000 3,780,000 ------------ 17,609,581 ------------ PAPER & PAPER PRODUCTS-1.5% Kimberly Clark Corp................. 56,000 3,696,000 ------------ PLASTIC & RUBBER-0.3% Polyone Corp........................ 88,100 693,788 ------------ 28,252,307 ------------ CAPITAL GOODS/ CONSTRUCTION -- 6.0% AEROSPACE & DEFENSE-6.0% General Dynamics Corp............... 91,700 6,562,281 United Technologies Corp............ 121,400 8,475,238 ------------ 15,037,519 ------------ CONSUMER PRODUCTS & SERVICES -- 32.4% AUTO & TRUCK PARTS-1.8% Modine Manufacturing Co............. 169,000 4,457,375 ------------ BEVERAGES & TOBACCO-1.3% Philip Morris Cos., Inc............. 89,000 3,259,625 ------------ DRUGS-5.4% Merck & Co., Inc.................... 106,600 9,587,338 Pharmacia Corp...................... 72,352 3,979,360 ------------ 13,566,698 ------------ FOODS-5.4% General Mills, Inc.................. 154,200 6,437,850 SYSCO Corp.......................... 134,000 6,993,125 ------------ 13,430,975 ------------ HOSPITAL SUPPLIES & SERVICES-2.8% Cardinal Health, Inc................ 75,000 7,106,250 ------------ HOUSEHOLD FURNITURE-0.6% Leggett & Platt, Inc................ 87,600 1,434,450 ------------ SHARES VALUE ----------- ------------ LEISURE-0.8% Cedar Fair LP....................... 111,400 $ 1,984,312 ------------ MEDICAL & ENTERTAINMENT-1.9% Viacom, Inc......................... 85,000 4,834,375 ------------ PRINTING & PUBLISHING-2.7% New York Times Co. Cl. A............ 50,000 1,837,500 Tribune Co.......................... 134,200 4,973,788 ------------ 6,811,288 ------------ RETAIL-FOOD & DRUGS-2.5% Safeway, Inc........................ 111,500 6,097,656 ------------ RETAIL-GENERAL-0.7% Federated Department Stores, Inc.... 54,000 1,758,375 ------------ RETAIL-SPECIALTY-2.1% Costco Wholesale Corp.*............. 145,000 5,310,625 ------------ SOAPS & TOILETRIES-4.4% Avon Products, Inc.................. 134,500 6,523,250 Johnson and Johnson................. 50,000 4,606,250 ------------ 11,129,500 ------------ 81,181,504 ------------ ENERGY -- 7.2% OIL-DOMESTIC-1.9% National Fuel Gas Co................ 90,000 4,826,250 ------------ OIL-SUPPLIES & CONSTRUCTION-5.3% Enron Corp.......................... 91,200 7,484,100 Halliburton Co...................... 75,600 2,801,925 New Jersey Resources Corp........... 28,000 1,118,250 San Juan Basin Royalty Trust........ 180,000 1,845,000 ------------ 13,249,275 ------------ 18,075,525 ------------ FINANCIAL SERVICES -- 15.1% BANKING-8.4% Bank of America Corp................ 49,337 2,371,260 Citigroup, Inc...................... 73,333 3,859,149 Federal Home Loan Mortgage Corp..... 62,400 3,744,000 Firstar Corp........................ 73,000 1,437,187 Household International, Inc........ 55,000 2,767,188 U.S. Bancorp........................ 146,196 3,536,116 Washington Mutual, Inc.............. 77,200 3,396,800 ------------ 21,111,700 ------------ See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- DLJ GROWTH AND INCOME FUND SHARES VALUE ----------- ------------ INSURANCE-6.7% American International Group, Inc................................ 95,452 $ 9,354,296 Hartford Financial Services Group... 15,000 1,116,562 HSB Group, Inc...................... 114,000 4,510,125 Progressive Corp.................... 20,000 1,965,000 ------------ 16,945,983 ------------ 38,057,683 ------------ PUBLIC UTILITIES -- 3.5% ELECTRIC-2.0% Ameren Corp......................... 30,000 1,192,500 Carolina Power & Light Co........... 95,000 3,829,687 ------------ 5,022,187 ------------ OIL & GAS-1.5% Washington Gas Light Co............. 150,000 3,825,000 ------------ 8,847,187 ------------ SCIENCE & TECHNOLOGY -- 13.4% COMPUTERS-7.4% Automatic Data Processing, Inc...... 116,200 7,589,312 Computer Associates International, Inc................................ 79,700 2,540,437 Gateway 2000, Inc.*................. 71,000 3,664,310 Hewlett-Packard Co.................. 100,400 4,662,325 ------------ 18,456,384 ------------ OFFICE SUPPLIES-1.0% Avery Dennison Corp................. 50,000 2,525,000 ------------ SEMICONDUCTORS-1.6% Dallas Semiconductor Corp........... 99,000 3,922,875 ------------ TELECOMMUNICATIONS-3.4% Alltel Corp......................... 6,800 438,175 Comcast Corp.-Special Cl. A......... 111,600 4,547,700 Verizon Communication, Inc.......... 61,300 3,543,906 ------------ 8,529,781 ------------ 33,434,040 ------------ TRANSPORT & SERVICE -- 0.7% SHARES VALUE ----------- ------------ RAILROADS-0.7% Burlington Northern Santa Fe........ 70,100 $ 1,862,031 ------------ MISCELLANEOUS -- 7.5% DIVERSIFIED-6.7% Berkshire Hathaway, Inc............. 50 3,185,000 Minnesota Minning and Manufacturing Co................................. 53,200 5,140,450 Tyco International Ltd.............. 149,000 8,446,438 ------------ 16,771,888 ------------ LIMITED PARTNERSHIP-TIMBER-0.5% Plum Creek Timber Co. LP............ 50,000 1,296,875 ------------ REAL ESTATE INVESTMENT TRUST-0.3% General Growth Properties, Inc...... 30,000 885,000 ------------ 18,953,763 ------------ TOTAL COMMON STOCKS (cost $163,448,918)................ 243,701,559 ------------ PRINCIPAL AMOUNT COMMERCIAL PAPER -- 2.9% ----------- (amortized cost $7,264,000) National Australia Funding 6.581%, 11/01/00**................. $ 7,264,000 7,264,000 ------------ TOTAL INVESTMENTS -- 99.9% (cost $170,712,918)................ 250,965,559 ------------ CASH AND OTHER ASSETS NET OF LIABILITIES -- 0.1%......... 399,111 ------------ NET ASSETS -- 100.0%................ $251,364,670 ------------ ------------ * Non-income producing ** Commercial paper is traded on a discount basis; the interest rate shown reflects the discount rate paid at the time of purchase by the Fund. - -------------------------------------------------------------------------------- DLJ SMALL COMPANY VALUE FUND COMMON STOCKS -- 98.3% SHARES VALUE BASIC MATERIALS -- 6.9% ----------- ------------ CHEMICALS-3.7% Cambrex Corp........................ 104,800 $ 4,185,450 Rogers Corp.*....................... 96,600 3,453,450 ------------ 7,638,900 ------------ PACKAGING-1.5% AptarGroup, Inc..................... 146,600 3,032,787 ------------ PAPER-1.3% Longview Fibre Co................... 205,000 2,793,125 ------------ PLASTIC & RUBBER-0.4% Polyone Corp........................ 11,800 92,925 ------------ 13,557,737 ------------ CAPITAL GOODS/ CONSTRUCTION -- 13.5% AEROSPACE-3.0% Esco Electronics Corp.*............. 148,000 2,691,750 Teleflex, Inc....................... 99,900 3,452,794 ------------ 6,144,544 ------------ SHARES VALUE ----------- ------------ BUILDING & CONSTRUCTION-6.4% Carlisle Companies, Inc............. 108,200 $ 4,503,825 Lydall, Inc.*....................... 184,500 1,948,781 Manitowoc, Inc.*.................... 85,000 2,310,938 Roper Industries, Inc............... 69,700 2,439,500 RPM, Inc. Ohio...................... 85,187 761,359 Stewart & Stevenson Services, Inc................................ 50,000 1,200,000 ------------ 13,164,403 ------------ ELECTRICAL EQUIPMENT-4.1% AMETEK, Inc......................... 185,000 4,023,750 Woodhead Industries, Inc............ 197,800 4,351,600 ------------ 8,375,350 ------------ 27,684,297 ------------ CONSUMER CYCLICAL -- 17.6% AUTO RELATED-2.9% Modine Manufacturing Co............. 131,400 3,465,675 Myers Industries, Inc............... 192,969 2,556,839 ------------ 6,022,514 ------------ FOOD SERVICE/LODGING-5.4% Marcus Corp......................... 149,975 2,127,770 Performance Food Group, Inc.*....... 127,000 5,143,500 Universal Foods Corp................ 196,800 3,886,800 ------------ 11,158,070 ------------ See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- DLJ SMALL COMPANY VALUE FUND SHARES VALUE ----------- ------------ HOUSEHOLD FURNITURE/APPLIANCES-1.5% Chromcraft Revington, Inc.*......... 156,600 $ 1,291,950 HON Industries, Inc................. 77,000 1,852,813 ------------ 3,144,763 ------------ PRINTING & PUBLISHING-4.4% Banta Corp.......................... 200,250 4,618,266 Harte Hanks, Inc.................... 100,000 2,212,500 Meredith Corp....................... 72,000 2,286,000 ------------ 9,116,766 ------------ RETAIL-GENERAL-3.4% Michael's Stores, Inc.*............. 39,000 948,188 Neiman Marcus Group, Inc.*.......... 90,000 3,116,250 Ruddick Corp........................ 227,700 2,988,563 ------------ 7,053,001 ------------ 36,495,114 ------------ CONSUMER STAPLES -- 12.2% DRUGS-3.7% King Pharmaceuticals, Inc........... 64,312 2,881,981 Pharmaceutical Product Development, Inc.*.............................. 155,000 4,853,438 ------------ 7,735,419 ------------ HOSPITAL SUPPLIES & SERVICES-8.5% Arrow International, Inc............ 116,000 4,676,250 Beckman Coulter, Inc................ 56,600 3,965,537 Dentsply International, Inc......... 50,000 1,734,375 H.B. Fuller Co...................... 59,610 2,015,563 Invacare Corp....................... 166,700 4,750,950 Patterson Dental Co................. 15,000 469,688 ------------ 17,612,363 ------------ 25,347,782 ------------ ENERGY -- 3.3% OIL-SUPPLIES & CONSTRUCTION-3.3% Oceaneering International, Inc.*.... 112,000 1,575,000 Tidewater, Inc...................... 54,100 2,498,744 Varco International, Inc.*.......... 159,767 2,755,981 ------------ 6,829,725 ------------ FINANCIAL -- 17.3% BANKS-11.3% AmSouth Bancorporation.............. 127,022 1,770,369 Associated Banc-Corp................ 24,300 584,719 Banknorth Group, Inc................ 198,000 3,588,750 Centura Banks, Inc.................. 33,000 1,268,437 Cullen/Frost Bankers, Inc........... 128,000 4,264,000 FirstMerit Corp..................... 180,000 4,106,250 National Commerce Bancorporation.... 156,800 3,332,000 Peoples' Bank, Inc.................. 105,000 2,126,250 Susquehanna Bancshares, Inc......... 75,000 1,059,375 Webster Financial Corp.............. 50,000 1,218,750 ------------ 23,318,900 ------------ INSURANCE-6.0% Brown & Brown, Inc.................. 153,800 4,998,500 Horace Mann Educators Corp.......... 52,400 880,975 HSB Group, Inc...................... 96,950 3,835,584 Protective Life Corp................ 120,200 2,779,625 ------------ 12,494,684 ------------ 35,813,584 ------------ PUBLIC UTILITIES -- 6.3% ELECTRIC-2.3% Equitable Resources, Inc............ 84,000 4,872,000 ------------ SHARES VALUE ----------- ------------ GAS-4.0% National Fuel Gas Co................ 89,600 $ 4,804,800 Washington Gas Light Co............. 134,500 3,429,750 ------------ 8,234,550 ------------ 13,106,550 ------------ TECHNOLOGY -- 15.9% COMPUTER HARDWARE-1.7% Mercury Computer Systems, Inc....... 112,000 3,472,000 ------------ COMPUTER SERVICES-2.4% BISYS Group, Inc.*.................. 106,000 4,995,250 ------------ ELECTRONICS-9.3% Benchmark Electronics, Inc.*........ 45,500 1,831,375 C&D Technologies, Inc.*............. 48,000 2,838,000 Dallas Semiconductor Corp........... 87,800 3,479,075 Electro Scientific Industries, Inc.*.............................. 52,700 1,841,206 Methode Electronics, Inc............ 62,150 2,338,394 Pioneer Standard Electronics, Inc................................ 239,450 3,322,369 Technitrol, Inc..................... 31,600 3,503,650 ------------ 19,154,069 ------------ SOFTWARE & PROGRAMMING-2.4% Mentor Graphics Corp.*.............. 81,100 1,900,781 Progress Software Corp.*............ 196,800 3,111,900 ------------ 5,012,681 ------------ TELECOMMUNICATIONS-0.1% CFW Communications Co............... 8,500 168,937 ------------ 32,802,937 ------------ TRANSPORT & SERVICE -- 3.2% PROFESSIONAL SERVICES-1.8% Tetra Tech, Inc..................... 105,175 3,654,831 ------------ TRUCKING & SHIPPING-1.4% Werner Enterprises, Inc............. 206,750 2,894,500 ------------ 6,549,331 ------------ MISCELLANEOUS -- 2.1% DIVERSIFIED-1.5% Brady (W.H.) Cl. A.................. 102,700 3,183,700 ------------ REAL ESTATE INVESTMENT TRUST-0.6% Liberty Property Trust.............. 49,000 1,295,437 ------------ 4,479,137 ------------ TOTAL COMMON STOCKS (cost $141,577,222)................ 202,666,194 ------------ PRINCIPAL AMOUNT COMMERCIAL PAPER -- 3.0% ----------- (amortized cost $6,282,000) National Australia Funding 6.581%, 11/01/00**................. $ 6,282,000 6,282,000 ------------ TOTAL INVESTMENTS -- 101.3% (cost $147,859,222)................ 208,948,194 ------------ LIABILITIES NET OF CASH AND OTHER ASSETS -- (1.3%)............. (2,866,540) ------------ NET ASSETS -- 100.0%................ $206,081,654 ------------ ------------ * Non-income producing ** Commercial paper is traded on a discount basis; the interest rate shown reflects the discount rate paid at the time of purchase by the Fund. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 - -------------------------------------------------------------------------------- DLJ TECHNOLOGY FUND SHARES VALUE COMMON STOCKS -- 97.5% ----------- ------------ BUSINESS & INFORMATION TECHNOLOGY SERVICES-1.2% Electronic Data Systems Corp.*...... 9,800 $ 459,988 ------------ COMMUNICATIONS SERVICES-7.9% Amdocs Ltd*......................... 7,475 484,473 Nextel Communications, Inc.*........ 9,300 357,469 Openwave Systems, Inc.*............. 5,725 529,920 Pegasus Communication Corp.*........ 7,850 279,166 Portal Software, Inc.*.............. 10,800 380,025 Qwest Communications International, Inc.*.............................. 7,400 359,825 XO Communications, Inc.*............ 15,001 506,049 ------------ 2,896,927 ------------ COMPUTER NETWORKING-3.4% 3Com Corp.*......................... 14,975 265,806 Cisco Systems, Inc.*................ 17,950 967,056 ------------ 1,232,862 ------------ COMPUTER SYSTEMS MANUFACTURERS-8.5% Network Appliance, Inc.*............ 13,825 1,645,175 Sun Microsystems, Inc. *............ 13,400 1,485,725 ------------ 3,130,900 ------------ ELECTRONIC MANUFACTURING SERVICES-8.5% Flextronics International Ltd*...... 20,350 773,300 Sanmina Corp.*...................... 9,975 1,140,267 SCI Systems, Inc.*.................. 13,275 570,825 Solectron Corp.*.................... 14,500 638,000 ------------ 3,122,392 ------------ INTERNET BUSINESS-TO-BUSINESS & CONSUMER-2.1% RealNetworks, Inc.*................. 12,825 264,315 Yahoo! Inc.*........................ 8,500 498,313 ------------ 762,628 ------------ INTERNET BUSINESS-TO-BUSINESS-6.8% Agile Software Corp.*............... 8,200 618,075 DoubleClick, Inc.*.................. 10,500 170,625 Exodus Communications, Inc.*........ 21,200 711,525 Globix Corp.*....................... 20,000 202,500 I2 Technologies, Inc.*.............. 3,625 616,250 Vitria Technology, Inc.*............ 6,000 161,250 ------------ 2,480,225 ------------ INTERNET BUSINESS-TO-CONSUMER-3.3% America OnLine, Inc.*............... 12,825 646,765 eBay, Inc.*......................... 10,975 565,213 ------------ 1,211,978 ------------ PERSONAL COMPUTER MANUFACTURERS-3.6% Gateway, Inc.*...................... 6,350 327,723 Palm, Inc.*......................... 18,584 995,406 ------------ 1,323,129 ------------ SEMICONDUCTOR MANUFACTURERS-LARGE-7.3% Analog Devices, Inc.*............... 12,050 783,250 Linear Technology Corp.............. 15,375 992,648 Texas Instruments, Inc.............. 18,000 883,125 ------------ 2,659,023 ------------ SHARES VALUE ----------- ------------ SEMICONDUCTOR MANUFACTURERS-FABLESS-4.5% Lattice Semiconductor Corp.*........ 27,300 $ 796,819 Xilinx, Inc*........................ 12,075 874,683 ------------ 1,671,502 ------------ SEMICONDUCTOR CAPITAL EQUIPMENT-5.1% Applied Materials, Inc.*............ 13,675 726,484 Kla-Tencor Corp.*................... 15,300 517,331 SDL, Inc.*.......................... 2,450 635,163 ------------ 1,878,978 ------------ SOFTWARE PRODUCTS-19.4% BEA Systems, Inc.*.................. 10,975 787,456 BMC Software, Inc.*................. 9,650 196,016 Cognos, Inc.*....................... 29,700 1,232,550 Microsoft Corp.*.................... 9,825 676,697 Oracle Corp.*....................... 32,500 1,072,500 Peregrine Systems, Inc.*............ 18,800 451,200 Quest Software, Inc.*............... 8,300 362,606 Siebel Systems, Inc.*............... 9,675 1,015,270 Veritas Software Corp.*............. 9,425 1,329,072 ------------ 7,123,367 ------------ STORAGE NETWORKS & SYSTEMS-5.8% EMC Corp.*.......................... 13,950 1,242,422 QLogic Corp.*....................... 9,300 899,775 ------------ 2,142,197 ------------ TELECOMMUNICATIONS EQUIPMENT-10.1% ANTEC Corp.*........................ 10,350 126,141 CIENA Corp.*........................ 12,650 1,329,831 Corning, Inc........................ 5,800 443,700 Scientific-Atlanta, Inc.*........... 12,100 828,094 Sycamore Networks, Inc.*............ 5,000 316,250 Tellabs, Inc.*...................... 12,975 647,939 ------------ 3,691,955 ------------ TOTAL COMMON STOCKS (cost $36,599,789)................. 35,788,051 ------------ PRINCIPAL AMOUNT COMMERCIAL PAPER -- 2.4% ----------- (amortized cost $868,000) National Australia Funding 6.581%, 11/01/00**................. $ 868,000 868,000 ------------ TOTAL INVESTMENTS -- 99.9% (cost $37,467,789)................. 36,656,051 ------------ CASH AND OTHER ASSETS NET OF LIABILITIES -- 0.1%......... 31,605 ------------ NET ASSETS -- 100.0%................ $ 36,687,656 ------------ ------------ * Non-income producing ** Commercial paper is traded on a discount basis; the interest rate shown reflects the discount rate paid at the time of purchase by the Fund. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 - -------------------------------------------------------------------------------- DLJ STRATEGIC GROWTH FUND COMMON STOCKS -- 98.3% SHARES VALUE CAPITAL GOODS -- 8.1% ---------- ------------ CONGLOMERATES-6.9% General Electric Co.................. 7,600 $ 416,575 Tyco International Ltd............... 3,350 189,903 ------------ 606,478 ------------ SEMICONDUCTOR CAPITAL EQUIPMENT-1.2% Applied Materials, Inc.*............. 1,933 102,691 ------------ 709,169 ------------ CONSUMER CYCLICAL -- 9.1% BROADCASTING & CABLE TV-2.0% Time Warner, Inc..................... 2,275 172,695 ------------ 172,695 ------------ INTERNET-2.4% America Online, Inc.*................ 3,150 158,854 Exodus Communications, Inc.*......... 1,600 53,700 ------------ 212,554 ------------ RETAIL-GENERAL-4.7% Costco Wholesale Corp.*.............. 1,975 72,334 Home Depot, Inc...................... 3,275 140,825 Wal-Mart Stores, Inc................. 4,325 196,247 ------------ 409,406 ------------ 794,655 ------------ CONSUMER STAPLES -- 25.7% DRUGS-16.9% American Home Products Corp.......... 3,300 209,550 Amgen, Inc.*......................... 3,075 178,158 Merck & Co., Inc..................... 3,700 332,769 Millennium Pharmaceuticals, Inc.*.... 2,300 166,894 Pfizer, Inc.......................... 5,100 220,256 Pharmacia Corp....................... 3,167 174,185 Schering-Plough Corp................. 3,900 201,581 ------------ 1,483,393 ------------ FOOD & BEVERAGE-1.2% General Mills, Inc................... 2,575 107,506 ------------ HOME PRODUCTS-3.1% Colgate-Palmolive Co................. 2,200 129,272 Procter & Gamble Co.................. 2,025 144,661 ------------ 273,933 ------------ MEDICAL PRODUCTS & SUPPLIES-4.5% Johnson & Johnson.................... 2,400 221,100 Medtronic, Inc....................... 3,125 169,726 ------------ 390,826 ------------ 2,255,658 ------------ FINANCIAL -- 3.7% BANKING-1.0% Citigroup, Inc....................... 1,766 92,936 ------------ FINANCIAL SERVICES-2.7% Lehman Brothers Holdings, Inc........ 2,000 129,000 Providian Financial Corp............. 1,000 104,000 ------------ 233,000 ------------ 325,936 ------------ INFORMATION SERVICES -- 2.2% Omnicom Group, Inc................... 2,075 191,419 ------------ SHARES VALUE TECHNOLOGY -- 49.5% ---------- ------------ COMPUTERS-25.5% BMC Software, Inc.*.................. 1,525 $ 30,977 Cisco Systems, Inc.*................. 5,950 320,556 Computer Associates International, Inc................................. 1,800 57,375 EMC Corp.*........................... 3,450 307,266 Microsoft Corp.*..................... 4,675 321,991 Network Appliance, Inc.*............. 1,750 208,250 Oracle Corp.*........................ 7,500 247,500 Siebel Systems, Inc.*................ 2,000 209,875 Sun Microsystems, Inc.*.............. 2,550 282,731 Veritas Software Corp.*.............. 1,725 243,252 ------------ 2,229,773 ------------ ELECTRONICS-11.7% Ciena Corp.*......................... 1,480 155,585 Corning, Inc.*....................... 2,100 160,650 Flextronics International Ltd*....... 2,350 89,300 Nortel Networks Corp................. 3,550 161,525 SCI Systems, Inc.*................... 1,775 76,325 Scientific-Atlanta, Inc.*............ 2,825 193,336 Solectron Corp.*..................... 2,650 116,600 Tellabs, Inc.*....................... 1,425 71,161 ------------ 1,024,482 ------------ SEMICONDUCTORS-7.8% Analog Devices, Inc.*................ 1,700 110,500 Intel Corp........................... 6,000 270,000 Linear Technology Corp............... 1,700 109,756 Texas Instruments, Inc............... 3,900 191,344 ------------ 681,600 ------------ TELECOMMUNICATIONS-4.5% MCI WorldCom, Inc.*.................. 3,000 71,250 Nextel Communications, Inc.*......... 1,800 69,187 Sprint Corp. (FON Group)............. 1,775 45,263 XO Communications, Inc.*............. 6,200 209,153 ------------ 394,853 ------------ 4,330,708 ------------ TOTAL COMMON STOCKS (cost $8,292,866)................... 8,607,545 ------------ PRINCIPAL AMOUNT COMMERCIAL PAPER -- 1.9% ---------- (amortized cost $167,000) National Australia Funding 6.581%, 11/01/00**.................. $ 167,000 167,000 ------------ TOTAL INVESTMENTS -- 100.2% (cost $8,459,866)................... 8,774,545 ------------ LIABILITIES NET OF CASH AND OTHER ASSETS -- (0.2)%.......... (15,059) ------------ NET ASSETS -- 100.0%................. $ 8,759,486 ------------ ------------ * Non-income producing ** Commercial paper is traded on a discount basis; the interest rate shown reflects the discount rate paid at the time of purchase by the Fund. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 - -------------------------------------------------------------------------------- DLJ INTERNATIONAL EQUITY FUND SHARES U.S. $ VALUE COMMON STOCKS -- 94.1% ------------ ------------ AUSTRALIA-0.7% National Australia Bank Ltd........ 4,410 $ 61,239 Normandy Mining Ltd................ 46,400 22,359 Qantas Airways Ltd................. 42,100 84,639 Telstra Corporation Ltd............ 36,150 117,931 The News Corporation Ltd........... 9,810 102,576 Woodside Petroleum Ltd............. 8,100 59,178 ----------- 447,922 ----------- BELGIUM-1.8% Fortis Cl.`B'...................... 10,970 335,664 Dexia NPV.......................... 5,129 780,347 ----------- 1,116,011 ----------- DENMARK-0.3% Tele Danmark AS.................... 4,510 213,146 ----------- FINLAND-2.0% Oy Nokia (Ab) Ser `A'.............. 30,400 1,249,444 ----------- FRANCE-13.5% Accor SA........................... 8,000 323,444 Air Liquide SA..................... 2,350 277,466 Alcatel Alsthom.................... 14,354 874,768 Aventis SA......................... 12,579 906,267 CAP Gemini SA...................... 2,100 334,632 Carrefour SA....................... 3,646 244,447 Danone Groupe...................... 2,620 365,973 Lafarge SA......................... 11,459 845,000 Lagardere S.C.A.................... 2,937 166,541 LVMH (Moet-Hennessy Louis Vuitton).......................... 4,300 313,442 Pinault-Printemps-Redoute SA....... 1,500 267,375 Publicis Groupe SA................. 3,250 106,194 Rhodia SA.......................... 10,365 129,496 STMicroelectronics NV.............. 11,250 566,885 Suez Lyonnaise des Eaux SA......... 2,350 358,136 Television Francaise............... 6,180 336,814 Total Fina SA...................... 10,392 1,485,072 Vivendi............................ 8,140 584,386 ----------- 8,486,338 ----------- GERMANY-4.9% Allianz AG......................... 2,681 910,102 Bayerische Vereinsbank AG.......... 5,450 298,876 BASF AG............................ 6,089 239,472 Deutsche Lufthansa AG.............. 14,959 295,427 Deutsche Telecom AG................ 13,220 493,592 SAP AG Vorzug...................... 4,140 836,912 ----------- 3,074,381 ----------- HONG KONG-7.1% Cheung Kong (Holdings) Ltd......... 60,000 663,538 China Resources Enterprises Ltd.... 110,000 124,117 China Telecom (Hong Kong) Ltd*..... 172,000 1,108,205 Citic Pacific Ltd.................. 170,000 682,258 Hong Kong & China Gas Company Ltd............................... 309,100 390,383 Hong Kong Electric Holdings........ 55,000 181,591 Hutchison Whampoa Ltd.............. 49,500 614,061 I-Cable Communications Ltd*........ 235 86 New World China Land Ltd........... 190 61 New World Development Company Ltd............................... 125,000 148,254 Shanghai Industrial Holdings Ltd............................... 156,000 294,034 SmarTone Telecommunications Holdings Ltd...................... 61,000 90,337 Wharf (Holdings) Ltd............... 94,000 191,638 ----------- 4,488,563 ----------- SHARES U.S. $ VALUE ------------ ------------ ITALY-7.0% Autogrill SPA...................... 29,412 $ 324,334 Banca Nazionale del Lavoro SPA..... 80,000 259,027 ENI SPA............................ 100,658 544,327 Italcementi SPA.................... 28,342 224,852 Saipem SPA......................... 141,700 737,444 San Paolo-IMI SPA.................. 100,353 1,624,630 Seat Pagine Gialle SPA............. 210,000 404,941 Telecom Italia SPA................. 25,752 297,944 ----------- 4,417,499 ----------- IRELAND-0.4% Bank of Ireland Plc................ 35,720...... 271,948 ----------- JAPAN-18.2% Bank of Tokyo - Mitsubishi Ltd..... 36,000 431,578 Canon, Inc......................... 12,000 475,868 Daiwa Securities Group, Inc........ 15,000 166,087 Fujitsu Ltd........................ 10,000 178,038 Fujitsu Support and Service, Inc............................... 2,000 242,879 Hitachi Ltd........................ 40,000 428,611 Ito EN Ltd......................... 8,000 575,144 Ito-Yokado Co. Ltd................. 10,000 451,507 Japan Airlines Co. Ltd............. 50,000 200,110 Japan Tobacco Inc.................. 39 267,882 Minebea Co. Ltd.................... 24,000 239,582 Mitsubishi Chemical Corp. Ltd...... 130,000 410,752 Mitsui Fudosan Co. Ltd............. 34,000 411,649 NEC Corp. Ltd...................... 15,000 285,740 Nintendo Co. Ltd................... 3,000 499,222 Nippon Express Co. Ltd............. 55,000 329,929 Nippon Telegraph & Telephone Corp. Ltd............................... 83 754,822 NTT Mobile Communication Network, Inc............................... 20 492,719 Sekisui House Ltd.................. 41,000 433,318 Shiseido Co. Ltd................... 21,000 271,179 Sony Corp. Ltd..................... 9,000 718,747 Sumitomo Bakelite Co. Ltd.......... 40,000 447,294 Sumitomo Bank Ltd.................. 30,000 364,044 Takeda Chemical Industries Ltd..... 16,000 1,053,576 TDK Corp. Ltd...................... 4,000 402,967 The Asahi Bank Ltd................. 100,000 393,809 Toyota Motor Corp. Ltd............. 12,000 479,165 World Co. Ltd...................... 3,000 110,450 ----------- 11,516,668 ----------- NETHERLANDS-4.5% Heineken NV........................ 9,236 501,020 ING Groep NV....................... 16,218 1,112,357 Koninklijke (Royal) Philips Electronics NV.................... 18,167 713,097 VNU NV............................. 10,524 495,068 ----------- 2,821,542 ----------- PORTUGAL-0.8% Banco Portugues SA................. 55,236 275,758 Portugal Telecom SA................ 26,695 237,580 ----------- 513,338 ----------- SINGAPORE-0.5% Fraser & Neave Ltd................. 15,100 52,469 Singapore Airlines Ltd............. 10,900 108,659 Total Access Communication Public Company Ltd....................... 44,000 139,920 ----------- 301,048 ----------- See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- DLJ INTERNATIONAL EQUITY FUND SHARES U.S. $ VALUE ------------ ------------ SPAIN-2.7% Banco Santander SA................. 50,000 $ 483,980 Endesa SA.......................... 19,820 322,549 Grupo Dragados SA.................. 31,813 308,746 Telefonica SA...................... 31,387 597,783 ----------- 1,713,058 ----------- SWEDEN-2.0% Nordbanken Holding AB.............. 44,650 334,207 Telefonaktiebolaget LM Ericsson AB................................ 68,236 905,727 Tele1 Europe Holding AB*........... 4,080 31,353 ----------- 1,271,287 ----------- SWITZERLAND-6.2% Nestle SA.......................... 463 959,165 Novartis AG -- Reg. Shares......... 612 928,160 Roche Holding AG................... 40 365,274 Schindler Holding AG............... 200 291,975 UBS -- Union Bank of Switzerland Ltd............................... 5,698 789,056 Zurich Allied AG................... 1,156 559,324 ----------- 3,892,954 ----------- UNITED KINGDOM-21.5% AstraZeneca Group Plc.............. 6,500 304,669 Bank of Scotland Plc............... 50,909 475,321 Barclays Plc....................... 26,532 759,728 BG Group Plc....................... 100,000 400,766 BP Amoco Plc....................... 97,011 823,354 British Aerospace Plc.............. 58,642 333,366 British Telecommunications Plc..... 55,184 647,449 SHARES U.S. $ VALUE ------------ ------------ Cable & Wireless Plc............... 27,498 $ 389,302 Carlton Communications Plc......... 10 81 CGU Plc............................ 15,000 200,818 Dimension Data Holdings Plc........ 64,000 561,304 EMAP Plc........................... 12,000 141,139 Energis Plc*....................... 52,620 450,418 Glaxo Wellcome Plc................. 27,808 801,111 Invensys Plc....................... 230,970 551,700 Kingfisher Plc..................... 44,266 264,819 Lattice Group Plc.................. 100,000 213,451 Prudential Corporation Plc......... 49,835 670,804 Reed International Plc............. 67,700 626,195 Royal Bank of Scotland Group Plc... 45,252 1,016,505 Sema Group Plc..................... 16,070 203,011 Shell Transport & Trading Co. Plc............................... 175,057 1,409,491 Smithkline Beecham Plc............. 18,788 242,802 Tesco Plc.......................... 61,860 236,011 Vodafone Group Plc................. 444,671 1,851,499 ----------- 13,575,114 ----------- TOTAL INVESTMENTS -- 94.1% (cost $54,282,569).............. 59,370,261 ----------- CASH AND OTHER ASSETS NET OF LIABILITIES -- 5.9%........ 3,701,316 ----------- NET ASSETS -- 100.0%............... $63,071,577 ----------- ----------- * Non-income producing - -------------------------------------------------------------------------------- DLJ DEVELOPING MARKETS FUND SHARES U.S. $ VALUE COMMON STOCKS -- 86.9% ------------ ------------ ARGENTINA-0.7% Perez Companc...................... 36,000 $ 51,850 Telefonica de Argentina SA ADR..... 3,000 51,563 ----------- 103,413 ----------- CHILE-2.4% Banco de A. Edwards SA ADR*........ 7,000 84,000 Cia Cervecerias Unidas SA ADR...... 5,000 96,563 Cia de Telecomunicaciones de Chile SA ADR............................ 6,000 91,500 Empresa Nacional Electricida SA ADR............................... 10,000 105,000 Quimica Minera Chile SA ADR........ 169 3,127 ----------- 380,190 ----------- CHINA-8.7% China Everbright International Ltd*.............................. 1,516,000 58,314 China Petroleum and Chemical Corporation Ltd*.................. 550,000 107,897 China Resources Enterprise Ltd..... 124,000 139,914 China Telecom (Hong Kong) Ltd...... 93,000 599,204 China Unicom Ltd*.................. 50,000 100,332 Citic Pacific Ltd.................. 50,000 200,664 PetroChina Company Ltd............. 678,000 142,570 ----------- 1,348,895 ----------- CZECH REPUBLIC-0.6% Ceske Energeticke Zavody AS*....... 40,000 97,380 ----------- GREECE-4.0% Alpha Bank SA...................... 6,000 221,285 Hellenic Telecommunications Organization SA................... 9,000 156,868 Panafon Hellenic Telecom SA........ 12,000 99,563 SHARES U.S. $ VALUE ------------ ------------ Titan Cement Company SA............ 4,000 $ 143,681 ----------- 621,397 ----------- HUNGARY-1.9% Gedeon Richter Rt.................. 2,020 97,718 Graphisoft NV...................... 7,500 94,163 Magyar Tavkozlesi Rt.*............. 3,900 91,650 Mol Magyar Olaj GDR................ 1,000 15,350 ----------- 298,881 ----------- INDIA-4.8% Grasim Industries Ltd. GDR......... 18,000 94,500 ICICI Bank Ltd.*................... 19,000 90,250 Infosys Technologies SP ADR........ 2,000 275,000 Mahindra & Mahindra Ltd. GDR*...... 29,000 82,650 Ranbaxy Laboratories GDR........... 7,000 121,625 Videsh Sanchar ADR*................ 11,000 82,139 ----------- 746,164 ----------- ISRAEL-4.7% Check Point Software Technologies Ltd.*............................. 2,610 413,359 ECI Telecom Ltd.................... 3,000 70,875 Nice-Systems Ltd. ADR.............. 1,000 46,750 Orbotech Ltd....................... 1,500 79,406 Teva Pharmaceutical Industries Ltd............................... 2,000 118,250 ----------- 728,640 ----------- MALAYSIA-5.5% Malayan Banking Bhd................ 59,000 236,000 Resorts World Bhd.................. 76,000 133,000 Telecom Malaysia Bhd............... 41,000 126,237 Tenaga Nasional Bhd................ 62,400 201,979 See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- DLJ DEVELOPING MARKETS FUND SHARES U.S. $ VALUE ------------ ------------ Unisem (M) Bhd..................... 23,000 $ 81,105 United Engineers Bhd............... 50,000 71,053 YTL Corporation Bhd Warrants....... 3,650 860 ----------- 850,234 ----------- MEXICO-11.3% Cifra SA de CV Ser.`V'............. 162,000 390,168 Fomento Economico Mexicano SA de CV................................ 95,000 362,311 Grupo Carso SA de CV Ser.`A1'*..... 18,000 40,343 Grupo Financiero Banamex Accival SA de CV............................. 123,000 191,495 Grupo Iusacell SA de CV ADR*....... 13,000 169,000 Grupo Televisa SA GDR*............. 5,000 270,624 Telefonos de Mexico SA Cl.`L' ADR............................... 6,200 334,413 ----------- 1,758,354 ----------- MOROCCO-0.3% Managem............................ 775 41,409 ----------- PHILIPPINES-0.7% SM Prime Holdings Inc.............. 1,469,000 114,878 ----------- POLAND-1.3% Bank Slaski SA..................... 2,000 79,845 Polski Koncern Naftowy Orlen SA.... 8,000 62,000 Telekomukacja Polska SA............ 12,000 59,141 ----------- 200,986 ----------- RUSSIA-3.1% OAO Lukoil Holding ADR............. 4,000 249,000 Surgutneftegaz ADR................. 10,000 128,750 Unified Energy Systems ADR......... 8,000 100,500 ----------- 478,250 ----------- SOUTH AFRICA-5.6% De Beers Centenary AG.............. 5,000 137,590 Impala Platinum Holdings LTD....... 3,000 128,594 M-Cell Ltd......................... 54,000 200,034 Nedcor Ltd......................... 9,000 169,077 Sappi Ltd.......................... 12,000 82,236 Sasol Ltd.......................... 20,000 153,201 ----------- 870,732 ----------- SOUTH KOREA-11.3% Hyundai Motor Co. Ltd.............. 22,000 251,429 Korea Electrical Power ADR......... 30,000 365,625 Samsung Electronics GDR............ 8,000 590,000 Samsung Electro-Mechanics Co. Ltd............................... 4,000 128,000 Shinhan Bank Ltd................... 24,000 240,527 SK Telecom Co. Ltd ADR............. 7,500 187,969 ----------- 1,763,550 ----------- TAIWAN-12.2% Acer, Inc.*........................ 33,250 137,988 Asustek Computer Inc............... 19,000 94,527 Cathay Construction Corp........... 50 12 Cathay Life Insurance Co. Ltd...... 108,804 195,007 Chinatrust Commercial Bank......... 181,680 115,090 Evergreen Marine Corp.............. 987 616 Far Eastern Textile Ltd............ 35 29 Formosa Chemicals & Fibre Corp..... 191 148 Formosa Plastic Corp............... 89,000 141,637 Hon Hai Precision Industry*........ 24,613 128,537 Hua Nan Commercial Bank............ 346 284 International Commercial Bank of China............................. 771 569 Microtek International, Inc.*...... 980 164 Pacific Electrical Wire & Cable Corp.*............................ 898 373 SHARES U.S. $ VALUE ------------ ------------ Taiwan Semiconductor Manufacturing Co. Ltd*.......................... 28,000 $ 635,250 U-Ming Marine Transport Corp....... 211 48 United Microelectronics Corp....... 208,000 366,367 Winbond Electronics Corp........... 84,000 81,246 Yang Ming Marine Transport......... 849 308 ----------- 1,898,200 ----------- THAILAND-1.8% Advanced Info Service Co. Ltd.*.... 11,000 78,527 Hana Microelectronics Co. Ltd...... 18,000 43,788 Siam City Cement Public Co. Ltd.... 33,000 79,527 Thai Farmers Bank Public Co. Ltd............................... 152,000 78,618 ----------- 280,460 ----------- TURKEY-4.0% Aygaz AS........................... 894,000 39,276 Efes Sinai Holding AS*............. 10,462,000 114,910 Haci Omer Sabanci Holding AS....... 11,199,000 113,164 Turkcell Iletisim Hizmetleri AS*... 2,000,000 87,869 Vestel Elektronik Sanayi ve Ticaret AS*............................... 333,000 68,274 Yapi ve Kredi Bankasi AS........... 22,703,020 196,164 ----------- 619,657 ----------- UNITED KINGDOM-1.6% Dimension Data Holdings Plc........ 15,000 128,990 Old Mutual Plc..................... 52,000 114,204 ----------- 243,194 ----------- VENEZUELA-0.4% Compania Anonima Nacional Telefonos de Venezuela...................... 3,000 57,000 ----------- TOTAL COMMON STOCKS (cost $15,708,686)................ 13,501,864 ----------- PREFERRED STOCKS -- 13.3% BRAZIL-13.3% Banco Bradesco SA Prf.............. 18,186,000 112,442 Companhia de Bebidas das Americas SA Prf*........................... 1,440,000 321,433 Centrais Electricas Brasileiras SA Prf Cl.`B'........................ 10,722,000 190,451 Companhia Energetica de Minas Gerais SA Prf..................... 5,757,000 87,418 Companhia Vale do Rio Doce SA Prf............................... 15,000 345,821 Embratel Participacoes SA Prf...... 10,722,000 172,080 Empresa Brasileira de Aeronautica SA ADR*........................... 4,200 121,538 Petroleo Brasileiro SA Prf......... 17,000 450,810 Tele Celular Sul Participacoes SA Prf............................... 5,950,000 70,396 Tele Norte Leste Participacoes SA Prf*.............................. 5,477,000 119,613 Unibanco-Uniao de Bancos Brasileiros SA.................... 2,654,730 68,145 ----------- TOTAL PREFERRED STOCKS (cost $1,950,725)................. 2,060,147 ----------- TOTAL INVESTMENTS -- 100.2% (cost $17,659,411)................ 15,562,011 ----------- LIABILITIES NET OF CASH AND OTHER ASSETS -- (0.2)%............ (23,904) ----------- NET ASSETS -- 100.0%............... $15,538,107 ----------- ----------- * Non-income producing See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 - -------------------------------------------------------------------------------- DLJ FIXED INCOME FUND PRINCIPAL U.S. GOVERNMENT AMOUNT VALUE OBLIGATIONS -- 33.4% ----------- ------------ United States Treasury Bills 6.375%, 03/31/01................... $ 4,650,000 $ 4,650,651 6.375%, 09/30/01................... 4,150,000 4,153,237 United States Treasury Bonds 7.500%, 11/15/16................... 5,250,000 6,048,420 United States Treasury Notes 6.125%, 12/31/01................... 5,350,000 5,343,901 6.500%, 03/31/02................... 4,000,000 4,020,000 6.250%, 08/31/02................... 5,000,000 5,023,650 6.250%, 02/15/03................... 1,250,000 1,258,625 6.500%, 08/15/05................... 2,300,000 2,364,446 7.000%, 07/15/06................... 7,100,000 7,486,737 6.000%, 08/15/09................... 3,000,000 3,032,070 6.500%, 02/15/10................... 2,250,000 2,355,997 ------------ TOTAL U.S. GOVERNMENT OBLIGATIONS (cost $45,551,151)................. 45,737,734 ------------ U.S. GOVERNMENT AGENCIES -- 20.1% Federal Home Loan Bank 7.360%, 07/01/04................... 6,000,000 6,166,020 Federal Home Loan Mortgage Corp. Pool #220016 8.750%, 10/01/01...... 1,793 1,814 6.000%, 07/19/04................... 2,000,000 1,951,700 6.875%, 11/22/06................... 500,000 492,040 7.625%, 09/09/09................... 3,000,000 2,991,300 Pool #260499 10.000%, 04/01/16..... 13,863 14,803 Pool #292065 8.500%, 04/01/17...... 1,519,982 1,571,753 Pool #606523 7.008%, 10/01/19...... 787,253 801,503 Federal National Mortgage Association Pool #312088 7.000%, 06/01/02...... 443,543 442,572 Pool #76368 9.250%, 09/01/03....... 25,738 26,993 Pool #76378 9.250%, 09/01/03....... 39,329 41,246 5.625%, 05/14/04................... 3,625,000 3,527,705 5.750%, 06/15/05................... 3,000,000 2,910,210 6.950%, 11/13/06................... 1,000,000 986,010 Pool #125136 8.000%, 07/01/07...... 588,647 599,496 Pool # 035574 8.750%, 10/01/08..... 85,310 87,576 Pool #004542 12.000%, 12/01/08..... 198,806 223,345 Pool #243876 9.000%, 01/01/09...... 142,548 147,002 6.375%, 06/15/09................... 2,404,000 2,355,559 Pool #270674 9.000%, 09/01/17...... 375,492 387,226 Pool #224635 9.000%, 09/01/20...... 77,358 79,776 Pool #124211 7.410%, 12/01/21...... 1,103,948 1,118,642 Pool #124790 9.000%, 02/01/23...... 407,388 420,119 Government National Mortgage Association Pool #93401 9.500%, 01/15/10....... 111,954 115,837 Pool #058985 11.000%, 07/15/13..... 11,449 12,547 Pool #068764 12.000%, 09/15/13..... 17,163 19,324 Pool #296254 9.500%, 09/15/20...... 4,539 4,721 ------------ TOTAL U.S. GOVERNMENT AGENCIES (cost $27,845,545)................. 27,496,839 ------------ CORPORATE BONDS -- 40.5% CONSUMER PRODUCTS & SERVICES-6.5% Anheuser Busch Cos. 7.000%, 09/01/05................... 1,500,000 1,498,125 Coca-Cola Enterprises 6.700%, 10/15/36................... 4,100,000 4,059,000 Tyco International Group, Inc. 6.375%, 06/15/05................... 3,500,000 3,390,625 ------------ 8,947,750 ------------ PRINCIPAL AMOUNT VALUE ----------- ------------ COMPUTERS-2.4% Hewlett-Packard Co. 7.150%, 06/15/05................... $ 3,250,000 $ 3,258,125 ------------ FINANCIAL-19.8% Barclays Bank PLC 7.400%, 12/15/09................... 2,500,000 2,487,500 Ford Motor Credit Co. 7.375%, 10/28/09................... 5,000,000 4,887,500 J.P. Morgan & Co. 5.750%, 02/25/04................... 3,000,000 2,883,750 Household Finance Co. 6.000%, 05/01/04................... 4,550,000 4,379,375 MBNA Master Credit Card Trust 6.450%, 02/15/08................... 5,000,000 4,938,250 Sears Credit Account Master Trust Series 1995-2 8.100%, 06/15/04................... 187,500 187,815 Standard Credit Card Master Trust 8.250%, 11/07/03................... 4,000,000 4,049,880 ------------ 23,814,070 ------------ PUBLIC UTILITIES-5.0% Consolidated Natural Gas Co. 6.875%, 10/15/26................... 2,000,000 1,952,500 National Rural Utilities Cooperative Finance Corp. 6.125%, 05/15/05................... 1,000,000 968,750 Oklahoma Gas & Electric Co. 6.500%, 07/15/17................... 4,000,000 3,925,000 ------------ 6,846,250 ------------ TELECOMMUNICATIONS-6.8% AT&T Corp. 6.000%, 03/15/09................... 5,000,000 4,393,750 MCI Communications Corp. 6.125%, 04/15/02................... 5,000,000 4,937,500 ------------ 9,331,250 ------------ TOTAL CORPORATE BONDS (cost $54,031,267)................. 52,197,445 ------------ COMMERCIAL PAPER -- 5.0% (amortized cost $6,900,418) DaimlerChrysler AG 6.448%, 11/01/00*.................. 1,500,000 1,500,000 Merrill Lynch & Co., Inc. 6.553%, 11/02/00*.................. 3,200,000 3,199,418 National Australia Funding 6.581%, 11/01/00*.................. 2,201,000 2,201,000 ------------ 6,900,418 ------------ TOTAL INVESTMENTS -- 99.0% (cost $134,328,381)................ 132,332,436 ------------ CASH AND OTHER ASSETS NET OF LIABILITIES -- 1.0%......... 1,368,234 ------------ NET ASSETS -- 100.0%................ $133,700,670 ------------ ------------ * Commercial paper is traded on a discount basis; the interest rate shown reflects the discount rate paid at the time of purchase by the Fund. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 - -------------------------------------------------------------------------------- DLJ MUNICIPAL TRUST FUND PRINCIPAL AMOUNT VALUE MUNICIPAL BONDS -- 98.2% ----------- ------------ COLORADO-6.9% Denver, Colorado City & County Airport 6.750%, 11/15/22................... $ 1,580,000 $ 1,629,375 ------------ ILLINOIS-11.3% Chicago, Illinois General Obligation 5.250%, 01/01/10................... 500,000 513,750 Chicago, Illinois Metropolitan Water Reclamation District 5.750%, 12/01/01................... 1,000,000 1,013,600 Chicago, Illinois Metropolitan Water Reclamation District 7.000%, 01/01/11................... 1,000,000 1,157,500 ------------ 2,684,850 ------------ INDIANA-4.6% Indiana University Revenue Student Fee Ser. K 6.500%, 08/01/05................... 1,000,000 1,082,500 ------------ IOWA-4.4% Iowa Student Loan Liquidation Corp. 6.800%, 03/01/05................... 1,000,000 1,038,750 ------------ NEW YORK-9.1% New York City, New York Ser. G 5.750%, 02/01/08................... 1,000,000 1,056,250 New York State Dormitory Authority Revenue 6.500%, 05/15/06................... 1,000,000 1,086,250 ------------ 2,142,500 ------------ OKLAHOMA-7.1% Grand River Dam Authority, Oklahoma 6.250%, 06/01/11................... 1,500,000 1,678,125 ------------ PUERTO RICO-5.8% Puerto Rico Commonwealth Refunding 5.100%, 07/01/02................... 1,000,000 1,012,500 Puerto Rico Electric Power Authority 6.000%, 07/01/11................... 330,000 367,125 ------------ 1,379,625 ------------ TENNESSEE-4.4% Memphis, Tennessee Electric System 6.000%, 01/01/05................... 1,000,000 1,055,000 ------------ PRINCIPAL AMOUNT VALUE ----------- ------------ TEXAS-36.0% Dallas, Texas Improvement 4.000%, 02/15/04................... $ 1,000,000 $ 977,500 Houston, Texas Revenue 5.000%, 03/01/05................... 2,000,000 2,032,500 Plano, Texas Independent School District 6.000%, 02/15/05................... 2,000,000 2,107,500 Port Authority of Houston, Texas 5.375%, 10/01/05................... 1,275,000 1,321,219 San Antonio, Texas Electric & Gas 5.000%, 02/01/12................... 1,000,000 1,000,000 Texas State Refunding Ser. A 6.000%, 10/01/08................... 1,000,000 1,086,250 ------------ 8,524,969 ------------ WASHINGTON-4.3% Washington State General Obligation 5.000%, 01/01/05................... 1,000,000 1,016,250 ------------ WISCONSIN-4.3% Wisconsin State Clean Water Revenue 5.000%, 06/01/03................... 1,000,000 1,013,750 ------------ TOTAL MUNICIPAL BONDS (cost $22,906,131)................. 23,245,694 ------------ COMMERCIAL PAPER -- 0.7% (amortized cost $157,000) National Australia Funding 6.581%, 11/01/00*.................. 157,000 157,000 ------------ TOTAL INVESTMENTS -- 98.9% (cost $23,063,131)................. 23,402,694 ------------ CASH AND OTHER ASSETS NET OF LIABILITIES -- 1.1%......... 270,974 ------------ NET ASSETS -- 100.0%................ $ 23,673,668 ------------ ------------ * Commercial paper is traded on a discount basis; the interest rate shown reflects the discount rate paid at the time of purchase by the Fund. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 - -------------------------------------------------------------------------------- DLJ HIGH INCOME FUND PRINCIPAL AMOUNT VALUE BONDS -- 84.6% ----------- ----------- AEROSPACE-1.7% BE Aerospace, Inc. Ser. B 8.000%, 03/01/08**.................. $250,000 $ 232,500 ----------- CHEMICALS-5.2% Avecia Group, Inc. 11.000%, 07/01/09**................. 250,000 241,250 Huntsman ICI Chemicals LLC 10.125%, 07/01/09**................. 250,000 238,750 Lyondell Chemical Co. 10.875%, 05/01/09**................. 250,000 240,625 ----------- 720,625 ----------- CAPITAL GOODS-1.8% Actuant Corp. 13.000%, 05/01/09*,**............... 250,000 246,250 ----------- CONSUMER NON-DURABLE-1.6% Consolidated Container Co. LLC 10.125%, 07/15/09**................. 250,000 226,250 ----------- ENERGY-2.0% R&B Falcon Corp. 9.500%, 12/15/08**.................. 250,000 268,125 ----------- FINANCIAL SERVICES-3.5% AmeriCredit Corp. 9.875%, 04/15/06**.................. 250,000 245,625 Metris Companies, Inc. 10.125%, 07/15/06**................. 250,000 237,500 ----------- 483,125 ----------- FOOD & TOBACCO-6.5% Advantica Restaurant Group, Inc. 11.250%, 01/15/08**................. 250,000 121,250 Canandaigua Brands, Inc. 8.500%, 03/01/09**.................. 250,000 252,200 National Wine & Spirits Holdings Corp. 10.125%, 01/15/09**................. 250,000 233,750 Triarc Consumer Group, Inc. 10.250%, 02/15/09**................. 250,000 281,250 ----------- 888,450 ----------- FOREST PRODUCTS/CONTAINERS-2.9% Packaging Corp. of America 9.625%, 04/01/09**.................. 250,000 256,250 Phoenix Color Corp. 10.375%, 02/01/09**................. 180,000 147,600 ----------- 403,850 ----------- GAMING/LEISURE-5.5% Argosy Gaming Co. 10.750%, 06/01/09**................. 250,000 262,500 Mohegan Tribal Gaming 8.750%, 01/01/09**.................. 250,000 245,000 Station Casinos, Inc. 10.125%, 03/15/06**................. 250,000 252,500 ----------- 760,000 ----------- SERVICE-1.6% Allied Waste North America, Inc. 10.000%, 08/01/09**................. 250,000 215,000 ----------- TELECOMMUNICATIONS-15.0% Covad Communications Group, Inc. 12.000%, 02/15/10**................. 250,000 116,250 Crown Castle International Corp. 9.000%, 05/15/11**.................. 250,000 237,500 Esat Telecom Group PLC Ser. B 11.875%, 12/01/08**................. 250,000 296,250 PRINCIPAL AMOUNT VALUE ----------- ----------- Hermes Europe Railtel BV 11.500%, 08/15/07**................. $ 250,000 $ 113,750 Nextlink Communications, Inc. 10.750%, 06/01/09**................. 250,000 220,625 NTL, Inc. Ser. B 12.375%, 10/01/08**,***............. 250,000 147,500 Pegasus Communications Corp. 9.750%, 12/01/06**.................. 250,000 245,000 Primus Telecommunications Group, Inc. 11.750%, 08/01/04**................. 250,000 123,750 PSI Net, Inc. Ser. B 10.000%, 02/15/05**................. 250,000 120,625 Time Warner Telecom, Inc. 9.750%, 07/15/08**.................. 250,000 222,500 Williams Communications Group, Inc. 10.875%, 10/01/09**................. 250,000 211,875 ----------- 2,055,625 ----------- HEALTHCARE-5.6% Express Scripts, Inc. 9.625%, 06/15/09**.................. 250,000 253,125 ICN Pharmaceutical, Inc. 8.750%, 11/15/08*................... 250,000 249,375 King Pharmaceutical, Inc. 10.750%, 02/15/09**................. 250,000 265,000 ----------- 767,500 ----------- HOUSING-1.7% HMH Properties 7.875%, 08/01/08**.................. 250,000 231,250 ----------- INFORMATION TECHNOLOGY-1.8% Fairchild Semiconductor Corp. 10.375%, 10/01/07**................. 250,000 246,250 ----------- MANUFACTURING -- MISC.-5.2% BGF Industries, Inc. 10.250%, 01/15/09**................. 250,000 235,000 Gentek, Inc. 11.000%, 08/01/09**................. 250,000 248,750 Riverwood International Corp. 10.875%, 04/01/08**................. 250,000 226,875 ----------- 710,625 ----------- MEDIA/ENTERTAINMENT-9.4% Adelphia Communications Corp. 7.875%, 05/01/09.................... 250,000 197,500 Charter Communications Holdings LLC 8.625%, 04/01/09**.................. 250,000 226,250 Echostar DBS Corp. 9.375%, 02/01/09**.................. 250,000 246,875 Liberty Group, Inc. 9.375%, 02/01/08**.................. 250,000 203,750 Premier Parks, Inc. 9.250%, 04/01/06**.................. 250,000 231,250 United Pan-Europe Communications NV 10.875%, 08/01/09**................. 250,000 186,250 ----------- 1,291,875 ----------- METAL & MINERALS-2.2% Kaiser Aluminum & Chemical Corp. 12.750%, 02/01/03**................. 250,000 188,750 LTV Corp. 8.200%, 09/15/07**.................. 250,000 118,750 ----------- 307,500 ----------- RETAIL-5.2% MusicLand Group, Inc. 9.000%, 06/15/03**.................. 250,000 228,750 Rent-A-Center, Inc. 11.000%, 08/15/08**................. 250,000 246,250 See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF INVESTMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- DLJ HIGH INCOME FUND PRINCIPAL AMOUNT VALUE ----------- ----------- Simmons Co. Ser. B 10.250%, 03/15/09**................. $ 250,000 $ 233,750 ----------- 708,750 ----------- TRANSPORTATION -- AUTOMOTIVE-6.2% American Axle & Manufacturing Holdings, Inc. 9.750%, 03/01/09**.................. 250,000 224,375 Atlas Air, Inc. 9.375%, 11/15/06**.................. 250,000 246,250 Roller Bearing Company of America Ser. B 9.625%, 06/15/07**........... 250,000 223,750 Venture Holdings Trust 11.000%, 06/01/07**................. 250,000 156,563 ----------- 850,938 ----------- TOTAL BONDS (cost $13,107,117).................. 11,614,488 ----------- PREFERRED STOCKS -- 1.9% SHARES ----------- (cost $291,950) TELECOMMUNICATIONS-1.9% Dobson Communications, Inc........... 291 265,875 ----------- PRINCIPAL COMMERCIAL PAPER -- 11.9% AMOUNT VALUE ----------- ----------- (amortized cost $1,640,000) National Australia Funding 6.581%, 11/01/00'D'................. $ 1,640,000 $ 1,640,000 ----------- TOTAL INVESTMENTS -- 98.4% (cost $15,039,067).................. 13,520,363 ----------- CASH AND OTHER ASSETS NET OF LIABILITIES -- 1.6%.......... 224,226 ----------- NET ASSETS -- 100.0%................. $13,744,589 ----------- ----------- * Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from the registration, normally to qualified institutional buyers. As of October 31, 2000, the value of these securities amounted to $495,625 or 3.6% of net assets. ** Security has an effective maturity date less than the stated maturity date due to a call feature. *** Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. 'D' Commercial paper is traded on a discount basis; the interest rate shown reflects the discount rate paid at the time of purchase by the Fund. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF ASSETS AND LIABILITIES October 31, 2000 - -------------------------------------------------------------------------------- SMALL CORE EQUITY GROWTH AND COMPANY TECHNOLOGY STRATEGIC FUND INCOME FUND VALUE FUND FUND GROWTH FUND ---- ----------- ---------- ---- ----------- ASSETS: Investments in securities, at value (cost $153,483,249, $170,712,918, $147,859,222, $37,467,789, and $8,459,866, respectively)............... $238,769,247 $250,965,559 $208,948,194 $36,656,051 $8,774,545 Cash -- domestic.......................... 73,315 -- -- 17,977 679 Receivable for investment securities sold.................................... -- 675,245 1,414,374 -- -- Receivable for capital stock sold......... 168,440 8,713 23,095 132,611 -- Dividends and interest receivable......... 77,419 285,132 151,118 899 2,492 Reimbursement due from advisor............ -- -- -- -- 7,768 ------------ ------------ ------------ ----------- ---------- Total assets.......................... 239,088,421 251,934,649 210,536,781 36,807,538 8,785,484 ------------ ------------ ------------ ----------- ---------- LIABILITIES: Payable to advisor........................ 119,465 107,948 135,173 4,283 -- Payable to distributor.................... 77,856 67,183 52,879 8,001 2,059 Payable for investment securities purchased............................... -- -- 3,742,368 -- -- Payable for capital stock redeemed........ 64,535 109,445 157,799 -- -- Cash overdraft due to custodian........... -- 50,773 3,107 -- -- Accrued expenses and other liabilities.... 204,559 234,630 363,801 107,598 23,939 ------------ ------------ ------------ ----------- ---------- Total liabilities..................... 466,415 569,979 4,455,127 119,882 25,998 ------------ ------------ ------------ ----------- ---------- NET ASSETS................................... $238,622,006 $251,364,670 $206,081,654 $36,687,656 $8,759,486 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- NET ASSETS CONSIST OF: Capital paid-in........................... $143,260,405 $148,739,486 $115,294,512 $39,466,325 $8,649,718 Undistributed net investment income....... -- 1,212,938 375,783 -- -- Accumulated net realized gain (loss) on investments............................. 10,075,603 21,159,605 29,322,387 (1,966,931) (204,911) Net unrealized appreciation (depreciation) on investments.......................... 85,285,998 80,252,641 61,088,972 (811,738) 314,679 ------------ ------------ ------------ ----------- ---------- $238,622,006 $251,364,670 $206,081,654 $36,687,656 $8,759,486 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- CLASS A SHARES: Net assets................................ $159,945,469 $162,870,688 $188,501,273 $ 2,913,155 $ 478 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- Shares outstanding........................ 7,096,595 6,614,170 8,362,136 227,763 9,097 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- Net asset value and redemption value per share................................... $22.54 $24.62 $22.54 $12.79 $10.93 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Maximum offering price per share (net asset value plus maximum sales charge)................................. $23.92 $26.12 $23.92 $13.57 $11.60 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ CLASS B SHARES: Net assets................................ $ 50,233,410 $ 41,194,462 $ 17,255,162 $ 1,272,555 $ 359,117 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- Shares outstanding........................ 2,305,013 1,685,549 786,118 99,643 32,864 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- Net asset value and offering price per share................................... $21.79 $24.44 $21.95 $12.77 $10.93 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ CLASS C SHARES: Net assets................................ $ 4,412,358 $ 495,899 $ 219,866 $ 479,235 $ 38,306 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- Shares outstanding........................ 202,480 20,331 10,020 37,523 3,504 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- Net asset value and offering price per share................................... $21.79 $24.39 $21.94 $12.77 $10.93 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ CLASS D SHARES: Net assets................................ $ 23,028,747 $ 46,707,695 $ 3,293,904 ------------ ------------ ----------- ------------ ------------ ----------- Shares outstanding........................ 1,018,823 1,895,615 257,587 ------------ ------------ ----------- ------------ ------------ ----------- Net asset value and offering price per share................................... $22.60 $24.64 $12.79 ------ ------ ------ ------ ------ ------ CLASS R SHARES: Net assets................................ $ 1,002,022 $ 95,926 $ 105,353 $28,728,807 $8,262,585 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- Shares outstanding........................ 44,432 3,894 4,658 2,246,647 755,256 ------------ ------------ ------------ ----------- ---------- ------------ ------------ ------------ ----------- ---------- Net asset value and offering price per share................................... $22.55 $24.63 $22.62 $12.79 $10.94 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF ASSETS AND LIABILITIES October 31, 2000 (continued) - -------------------------------------------------------------------------------- FIXED INTERNATIONAL DEVELOPING INCOME MUNICIPAL HIGH INCOME EQUITY FUND MARKETS FUND FUND TRUST FUND FUND ----------- ------------ ---- ---------- ---- ASSETS: Investments in securities, at value (cost $54,282,569, $17,659,411, $134,328,381, $23,063,131, and $15,039,067, respectively)............................ $59,370,261 $15,562,011 $132,332,436 $23,402,694 $13,520,363 Cash -- foreign, at value (cost $788,817 and $152,271, respectively).............. 776,970 146,061 -- -- -- Cash -- domestic........................... 3,194,853 -- -- -- -- Receivable for capital stock sold.......... 18,395 2,000 50,000 -- -- Dividends and interest receivable.......... 140,742 13,159 2,039,139 370,303 369,780 Reimbursement due from advisor............. -- 71,457 -- -- -- Other assets............................... 89,408 -- 9,440 1,651 -- ----------- ----------- ------------ ----------- ----------- Total assets........................... 63,590,629 15,794,688 134,431,015 23,774,648 13,890,143 ----------- ----------- ------------ ----------- ----------- LIABILITIES: Payable to advisor......................... 64,590 -- 52,301 1,007 8,002 Payable to distributor..................... 15,235 4,754 10,091 5,691 3,664 Payable for capital stock redeemed......... 240,380 2,022 12,000 -- -- Cash overdraft due to custodian............ -- 76,181 655,953 94,151 38,465 Dividend payable........................... -- -- -- 131 -- Accrued expenses and other liabilities..... 198,847 173,624 -- -- 95,423 ----------- ----------- ------------ ----------- ----------- Total liabilities...................... 519,052 256,581 730,345 100,980 145,554 ----------- ----------- ------------ ----------- ----------- NET ASSETS.................................... $63,071,577 $15,538,107 $133,700,670 $23,673,668 $13,744,589 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- NET ASSETS CONSIST OF: Capital paid-in............................ $54,242,175 $21,608,032 $138,421,483 $23,462,813 $15,667,540 Accumulated distributions in excess of net investment income........................ -- -- -- (2,492) -- Accumulated net realized gain (loss) on investments.............................. 3,763,140 (3,967,852) (2,724,868) (126,216) (404,247) Net unrealized appreciation/(depreciation) on investments........................... 5,066,262 (2,102,073) (1,995,945) 339,563 (1,518,704) ----------- ----------- ------------ ----------- ----------- $63,071,577 $15,538,107 $133,700,670 $23,673,668 $13,744,589 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- CLASS A SHARES: Net assets................................. $52,965,713 $13,294,038 $ 34,950,921 $22,564,727 $10,708,907 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- Shares outstanding......................... 4,396,677 1,547,554 3,564,039 2,235,412 1,226,214 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- Net asset value and redemption value per share.................................... $12.05 $8.59 $9.81 $10.09 $8.73 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Maximum offering price per share (net asset value plus maximum sales charge)......... $12.79 $9.11 $10.30 $10.59 $9.17 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ CLASS B SHARES: Net assets................................. $ 5,088,876 $ 2,214,010 $ 3,256,257 $ 1,082,464 $ 1,312,937 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- Shares outstanding......................... 439,780 267,373 332,052 107,283 150,397 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- Net asset value and offering price per share.................................... $11.57 $8.28 $9.81 $10.09 $8.73 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ CLASS C SHARES: Net assets................................. $ 140,966 $ 11,954 $ 261 $ 260 $ 78,468 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- Shares outstanding......................... 12,162 1,447 26 26 8,983 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- Net asset value and offering price per share.................................... $11.59 $8.26 $9.81 $10.05 $8.73 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ CLASS D SHARES: Net assets................................. $ 4,738,190 $ 95,471,436 $ 1,503,575 ----------- ------------ ----------- ----------- ------------ ----------- Shares outstanding......................... 391,789 9,734,448 172,207 ----------- ------------ ----------- ----------- ------------ ----------- Net asset value and offering price per share.................................... $12.09 $9.81 $8.73 ------ ------ ------ ------ ------ ------ CLASS R SHARES: Net assets................................. $ 137,832 $ 18,105 $ 21,795 $ 26,217 $ 140,702 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- Shares outstanding......................... 11,436 2,108 2,222 2,597 16,116 ----------- ----------- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ----------- Net asset value and offering price per share.................................... $12.05 $8.59 $9.81 $10.09 $8.73 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF OPERATIONS for the year ended October 31, 2000 - -------------------------------------------------------------------------------- SMALL CORE EQUITY GROWTH AND COMPANY TECHNOLOGY STRATEGIC FUND INCOME FUND VALUE FUND FUND* GROWTH FUND* ----------- ----------- ----------- ----------- ------------ INVESTMENT INCOME: Dividends........................ $ 1,720,853 $4,238,489 $ 3,216,557 $ 5,674 $ 28,639 Interest......................... 344,909 251,620 123,339 64,894 17,849 ----------- ----------- ----------- ----------- -------- 2,065,762 4,490,109 3,339,896 70,568 46,488 Less withholding tax on foreign source dividends............... (1,848) -- -- -- -- ----------- ----------- ----------- ----------- -------- Total investment income........ 2,063,914 4,490,109 3,339,896 70,568 46,488 ----------- ----------- ----------- ----------- -------- EXPENSES: Investment advisory fees (Note B)............................. 1,338,293 1,442,618 1,622,703 208,699 47,380 Distribution fees -- Class A (Note B)....................... 444,797 475,998 524,059 1,209 24 Distribution fees -- Class B (Note B)....................... 428,149 408,174 176,261 2,158 550 Distribution fees -- Class C (Note B)....................... 12,245 1,130 363 501 57 Distribution fees -- Class R (Note B)....................... 225 36 19 56,922 15,618 Shareholder servicing fees (Note B)............................. -- -- -- 32,907 8,850 Transfer agent fees.............. 209,000 219,000 264,000 26,800 18,000 Custodian fees................... 106,000 123,000 101,000 67,100 44,000 Registration fees................ 45,000 52,000 58,000 58,000 35,000 Printing fees.................... 23,000 21,000 31,000 14,000 6,000 Legal fees....................... 38,000 40,000 37,000 12,000 5,500 Auditing fees.................... 32,000 23,000 16,000 28,000 9,000 Trustees' fees (Note B).......... 19,000 31,000 27,000 11,000 2,000 Miscellaneous.................... 51,615 43,040 52,146 9,773 2,136 ----------- ----------- ----------- ----------- -------- Total expenses................. 2,747,324 2,879,996 2,909,551 529,069 194,115 Less expenses reimbursed by advisor (Note B)............. -- -- -- (196,374) (118,483) ----------- ----------- ----------- ----------- -------- Net expenses................... 2,747,324 2,879,996 2,909,551 332,695 75,632 ----------- ----------- ----------- ----------- -------- NET INVESTMENT INCOME (LOSS)........ (683,410) 1,610,113 430,345 (262,127) (29,144) ----------- ----------- ----------- ----------- -------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NOTE C: Net realized gain (loss) on investments.................... 10,093,654 21,677,713 29,349,170 (1,966,931) (204,911) Net change in unrealized appreciation (depreciation) on investments.................... 16,397,007 (3,306,323) 9,049,299 (811,738) 314,679 ----------- ----------- ----------- ----------- -------- Net realized and unrealized gain (loss) on investments.......... 26,490,661 18,371,390 38,398,469 (2,778,669) 109,768 ----------- ----------- ----------- ----------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS.................... $25,807,251 $19,981,503 $38,828,814 $(3,040,796) $ 80,624 ----------- ----------- ----------- ----------- -------- ----------- ----------- ----------- ----------- -------- * The Technology Fund and the Strategic Growth Fund commenced operations on November 18, 1999. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF OPERATIONS for the year ended October 31, 2000 (continued) - -------------------------------------------------------------------------------- FIXED INTERNATIONAL DEVELOPING INCOME MUNICIPAL HIGH INCOME EQUITY FUND MARKETS FUND FUND TRUST FUND FUND ------------- ------------ ---------- ---------- ----------- INVESTMENT INCOME: Dividends........................... $ 1,032,613 $ 308,555 $ -- $ -- $ -- Interest............................ 91,880 21,903 9,072,869 1,288,196 1,470,540 ----------- ----------- ---------- ---------- ----------- 1,124,493 330,458 9,072,869 1,288,196 1,470,540 Less withholding tax on foreign source dividends.................. (99,143) (25,433) -- -- -- ----------- ----------- ---------- ---------- ----------- Total investment income........... 1,025,350 305,025 9,072,869 1,288,196 1,470,540 ----------- ----------- ---------- ---------- ----------- EXPENSES: Investment advisory fees (Note B)... 809,279 262,585 837,673 163,791 98,962 Distribution fees -- Class A (Note B)................................ 136,766 44,887 109,539 72,659 27,736 Distribution fees -- Class B (Note B)................................ 57,612 30,488 35,617 9,984 15,943 Distribution fees -- Class C (Note B)................................ 217 18 2 2 95 Distribution fees -- Class R (Note B)................................ 44 4 7 11 227 Transfer agent fees................. 60,000 66,000 57,000 54,000 57,500 Custodian fees...................... 91,000 96,000 93,000 51,000 52,000 Registration fees................... 51,000 37,000 62,000 28,000 46,500 Printing fees....................... 29,500 11,000 18,000 7,000 15,000 Legal fees.......................... 36,000 21,000 30,000 8,000 34,000 Auditing fees....................... 25,000 13,000 23,000 3,000 17,000 Trustees' fees (Note B)............. 11,000 11,000 15,000 5,000 10,000 Amortization of organization costs (Note A).......................... 13,819 13,819 -- -- -- Miscellaneous....................... 25,390 19,902 50,346 2,824 13,415 ----------- ----------- ---------- ---------- ----------- Total expenses.................... 1,346,627 626,703 1,331,184 405,271 388,378 Less expenses reimbursed by advisor and/or subadvisor (Note B).............................. -- (152,177) (188,370) (138,175) (224,209) ----------- ----------- ---------- ---------- ----------- Net expenses...................... 1,346,627 474,526 1,142,814 267,096 164,169 ----------- ----------- ---------- ---------- ----------- NET INVESTMENT INCOME (LOSS)........... (321,277) (169,501) 7,930,055 1,021,100 1,306,371 ----------- ----------- ---------- ---------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NOTE C: Net realized gain (loss) on investments....................... 4,262,030 575,610 (2,206,386) (126,217) (404,247) Net realized loss on foreign currency transactions............. (101,544) (42,582) -- -- -- Net change in unrealized appreciation (depreciation) on investments....................... (5,167,193) (2,832,139) 1,474,288 417,728 (959,036) Net change in unrealized appreciation (depreciation) on translation of foreign currency denominated assets and liabilities....................... (37,551) (28,008) -- -- -- ----------- ----------- ---------- ---------- ----------- Net realized and unrealized gain (loss) on investments and foreign currency transactions............. (1,044,258) (2,327,119) (732,098) 291,511 (1,363,283) ----------- ----------- ---------- ---------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS............................ $(1,365,535) $(2,496,620) $7,197,957 $1,312,611 $ (56,912) ----------- ----------- ---------- ---------- ----------- ----------- ----------- ---------- ---------- ----------- See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- CORE EQUITY FUND GROWTH AND INCOME FUND --------------------------- --------------------------- YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99 ------------ ------------ ------------ ------------ OPERATIONS: Net investment income (loss)................ $ (683,410) $ (407,517) $ 1,610,113 $ 1,038,244 Net realized gain on investments............ 10,093,654 13,398,533 21,677,713 7,532,501 Net change in unrealized appreciation on investments............................... 16,397,007 23,871,282 (3,306,323) 18,898,886 ------------ ------------ ------------ ------------ Increase in net assets from operations...... 25,807,251 36,862,298 19,981,503 27,469,631 ------------ ------------ ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income: Class A................................... -- -- (855,863) (694,625) Class B................................... -- -- -- (16,859) Class C................................... -- -- (436) -- Class D................................... -- -- (343,579) (141,754) Class R................................... -- -- (118) -- Realized gains on investments: Class A................................... (10,289,314) (1,523,410) (5,060,415) (14,556,598) Class B................................... (2,597,317) (279,678) (1,204,657) (3,003,060) Class D................................... (475,552) -- (1,367,048) -- ------------ ------------ ------------ ------------ Total dividends and distributions to shareholders.............................. (13,362,183) (1,803,088) (8,832,116) (18,412,896) ------------ ------------ ------------ ------------ CAPITAL STOCK TRANSACTIONS -- (NET) Note D..... 52,877,730 23,723,233 (23,292,901) 57,190,869 ------------ ------------ ------------ ------------ Total increase (decrease) in net assets..... 65,322,798 58,782,443 (12,143,514) 66,247,604 NET ASSETS: Beginning of year........................... 173,299,208 114,516,765 263,508,184 197,260,580 ------------ ------------ ------------ ------------ End of year (including undistributed net investment income of $1,212,938 and $802,821 for the Growth and Income Fund at 10/31/00 and 10/31/99, respectively)...... $238,622,006 $173,299,208 $251,364,670 $263,508,184 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ TECHNOLOGY SMALL COMPANY VALUE FUND FUND --------------------------- ------------ YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00* ------------ ------------ ------------ OPERATIONS: Net investment income (loss)................ $ 430,345 $ 543,857 $ (262,127) Net realized gain (loss) on investments..... 29,349,170 20,499,594 (1,966,931) Net change in unrealized appreciation (depreciation) on investments............. 9,049,299 (9,202,368) (811,738) ------------ ------------ ------------ Increase (decrease) in net assets from operations................................ 38,828,814 11,841,083 (3,040,796) ------------ ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income: Class A................................... (404,478) (852,298) -- Realized gains on investments: Class A................................... (18,572,467) (168,838) -- Class B................................... (1,941,783) (16,223) -- ------------ ------------ ------------ Total dividends and distributions to shareholders.............................. (20,918,728) (1,037,359) -- ------------ ------------ ------------ CAPITAL STOCK TRANSACTIONS -- (NET) Note D..... (19,277,621) (63,511,227) 39,678,452 ------------ ------------ ------------ Total increase (decrease) in net assets..... (1,367,535) (52,707,503) 36,637,656 NET ASSETS: Beginning of year........................... 207,449,189 260,156,692 50,000 ------------ ------------ ------------ End of year (including undistributed net investment income of $375,783 and $349,206 for the Small Company Value Fund at 10/31/00 and 10/31/99, respectively)...... $206,081,654 $207,449,189 $ 36,687,656 ------------ ------------ ------------ ------------ ------------ ------------ * The Technology Fund commenced operations on November 18, 1999. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF CHANGES IN NET ASSETS (continued) - -------------------------------------------------------------------------------- STRATEGIC GROWTH FUND INTERNATIONAL EQUITY FUND ----------- -------------------------- YEAR ENDED YEAR ENDED 10/31/00* 10/31/00 10/31/99 ----------- ----------- ------------ OPERATIONS: Net investment loss.......................... $ (29,144) $ (321,277) $ (267,097) Net realized gain (loss) on investments and foreign currency transactions.............. (204,911) 4,160,486 7,275,061 Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities................................ 314,679 (5,204,744) 3,065,685 ----------- ----------- ------------ Increase (decrease) in net assets from operations................................. 80,624 (1,365,535) 10,073,649 ----------- ----------- ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Realized gains on investments: Class A.................................... -- (6,041,311) (2,412,264) Class B.................................... -- (724,739) (358,183) Class D.................................... -- (266,755) -- ----------- ----------- ------------ Total dividends and distributions to shareholders............................... -- (7,032,805) (2,770,447) ----------- ----------- ------------ CAPITAL STOCK TRANSACTIONS -- (NET) Note D...... 8,628,862 16,175,904 (2,428,179) ----------- ----------- ------------ Total increase in net assets................. 8,709,486 7,777,564 4,875,023 NET ASSETS: Beginning of year............................ 50,000 55,294,013 50,418,990 ----------- ----------- ------------ End of year.................................. $8,759,486 $63,071,577 $ 55,294,013 ----------- ----------- ------------ ----------- ----------- ------------ DEVELOPING MARKETS FUND FIXED INCOME FUND ------------------------- --------------------------- YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99 ----------- ----------- ------------ ------------ OPERATIONS: Net investment income (loss)................. $ (169,501) $ 37,837 $ 7,930,055 $ 5,607,375 Net realized gain (loss) on investments and foreign currency transactions.............. 533,028 (470,533) (2,206,386) (554,334) Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities................................ (2,860,147) 5,298,723 1,474,288 (5,249,092) Contribution from subadvisor................. -- 460,289 -- -- ----------- ----------- ------------ ------------ Increase (decrease) in net assets from operations................................. (2,496,620) 5,326,316 7,197,957 (196,051) ----------- ----------- ------------ ------------ DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income: Class A.................................... -- (7,744) (2,046,705) (2,198,867) Class B.................................... -- -- (166,263) (228,041) Class C.................................... -- -- (7) -- Class D.................................... -- -- (5,716,910) (3,180,467) Class R.................................... -- -- (170) -- Realized gains on investments: Class A.................................... -- -- -- (477,719) Class B.................................... -- -- -- (58,661) Tax return of capital: Class A.................................... -- (34,031) -- -- ----------- ----------- ------------ ------------ Total dividends and distributions to shareholders............................... -- (41,775) (7,930,055) (6,143,755) ----------- ----------- ------------ ------------ CAPITAL STOCK TRANSACTIONS -- (NET) Note D...... (672,912) (5,440,079) (29,521,688) 116,610,870 ----------- ----------- ------------ ------------ Total increase (decrease) in net assets...... (3,169,532) (155,538) (30,253,786) 110,271,064 NET ASSETS: Beginning of year............................ 18,707,639 18,863,177 163,954,456 53,683,392 ----------- ----------- ------------ ------------ End of year.................................. $15,538,107 $18,707,639 $133,700,670 $163,954,456 ----------- ----------- ------------ ------------ ----------- ----------- ------------ ------------ * The Strategic Growth Fund commenced operations on November 18, 1999. See notes to financial statements. DLJ MUTUAL FUNDS -- STATEMENT OF CHANGES IN NET ASSETS (continued) - -------------------------------------------------------------------------------- MUNICIPAL TRUST FUND HIGH INCOME FUND -------------------------- ------------------------- YEAR ENDED YEAR ENDED 10/31/00 10/31/99 10/31/00 10/31/99* ----------- ------------ ----------- ----------- OPERATIONS: Net investment income.................................... $ 1,021,100 $ 1,429,752 $ 1,306,371 $ 547,160 Net realized gain (loss) on investments.................. (126,217) 216,865 (404,247) 88,352 Net change in unrealized appreciation (depreciation) on investments............................................ 417,728 (1,926,952) (959,036) (559,668) ----------- ------------ ----------- ----------- Increase (decrease) in net assets from operations........ 1,312,611 (280,335) (56,912) 75,844 ----------- ------------ ----------- ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Investment income: Class A................................................ (988,865) (1,389,791) (1,038,792) (481,082) Class B................................................ (32,042) (39,961) (137,149) (40,859) Class C................................................ (5) -- (728) -- Class D................................................ -- -- (130,131) (25,219) Class R................................................ (187) -- (7,647) -- Realized gains on investments: Class A................................................ (218,980) -- (73,884) -- Class B................................................ (7,797) -- (11,116) -- Class D................................................ -- -- (6,589) -- ----------- ------------ ----------- ----------- Total dividends and distributions to shareholders........ (1,247,876) (1,429,752) (1,406,036) (547,160) ----------- ------------ ----------- ----------- CAPITAL STOCK TRANSACTIONS -- (NET) Note D.................. (7,346,894) (13,070,060) 2,346,807 13,332,046 ----------- ------------ ----------- ----------- Total increase (decrease) in net assets.................. (7,282,159) (14,780,147) 883,859 12,860,730 NET ASSETS: Beginning of year........................................ 30,955,827 45,735,974 12,860,730 -- ----------- ------------ ----------- ----------- End of year.............................................. $23,673,668 $ 30,955,827 $13,744,589 $12,860,730 ----------- ------------ ----------- ----------- ----------- ------------ ----------- ----------- * The High Income Fund commenced operations on March 8, 1999. See notes to financial statements. NOTES TO FINANCIAL STATEMENTS October 31, 2000 - -------------------------------------------------------------------------------- NOTE (A) SIGNIFICANT ACCOUNTING POLICIES. DLJ Mutual Funds (the 'DLJ Funds' or 'Funds') consists of three trusts, DLJ Focus Funds (the 'Focus Funds'), organized as a Massachusetts business trust on November 26, 1985, DLJ Opportunity Funds (the 'Opportunity Funds') and DLJ Select Funds (the 'Select Funds'), each a Delaware business trust organized under the laws of Delaware on May 31, 1995 and August 3, 1999, respectively. Each Trust consists of separate portfolios (the 'Portfolios') and constitute a diversified, open-end investment company registered under the Investment Company Act of 1940, as amended ('Act'). On July 28, 2000, the Funds' Board of Trustees approved, effective August 1, 2000, a change of the Funds' name from 'DLJ Winthrop' to 'DLJ.' The Focus Funds consist of DLJ Core Equity Fund, DLJ Growth and Income Fund, DLJ Small Company Value Fund, DLJ Fixed Income Fund, and DLJ Municipal Trust Fund. The Opportunity Funds consist of DLJ International Equity Fund, DLJ Developing Markets Fund, DLJ Municipal Money Fund, DLJ U.S. Government Money Fund and DLJ High Income Fund. The Municipal Money Fund and the U.S. Government Money Fund are included in a separate report. The Select Funds consist of DLJ Technology Fund and DLJ Strategic Growth Fund. Prior to the commencement of operations on November 18, 1999, the Select Funds had no operations other than the sale and issuance to each of DLJ Asset Management Group and DLJdirect Inc. of 2,500 shares of beneficial interest at $10.00 per share of each of the Technology Fund and the Strategic Growth Fund. Effective August 1, 2000, the then existing shares of the Select Funds were redesignated as Class R shares and the Select Funds commenced offering additional classes of shares. The investment objective of the Core Equity Fund and the Growth and Income Fund is long-term capital appreciation. The Growth and Income Fund also seeks continuity of income. The Strategic Growth Fund seeks long-term growth of capital by investing in equity securities of a limited number of large, carefully selected companies that the Advisor believes will achieve superior growth. The investment objective of the Technology Fund is growth of capital which the Fund seeks to achieve by investing in a broad number of industries that comprise the U.S. domestic technology sector. The investment objective of the Small Company Value Fund is a high level of growth of capital. The Fixed Income Fund aims to provide as high a level of total return as is consistent with capital preservation by investing principally in debt securities, including, without limitation, convertible and nonconvertible debt securities of foreign and domestic companies, including both well-known and established and new and lesser-known companies. The Municipal Trust Fund's investment objective is to provide as high a level of total return as is consistent with capital preservation by investing principally in high-grade tax-exempt municipal securities. The investment objective of the International Equity Fund is to seek long-term growth of capital by investing primarily in common stocks and other equity securities from established markets outside the United States. The Developing Markets Fund seeks DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- long-term growth of capital by investing primarily in common stocks and other equity securities from developing countries. The High Income Fund's primary investment objective is to provide a high level of current income and its secondary objective is capital appreciation. Each portfolio offers Class A, Class B, Class C and Class R shares. In addition, Core Equity Fund, Growth and Income Fund, Fixed Income Fund, International Equity Fund, High Income Fund and Technology Fund offer Class D shares exclusively to employees of Credit Suisse First Boston and its subsidiaries who are eligible to participate in the Credit Suisse First Boston Employee's Savings and Profit Sharing Plan. Class A shares of Core Equity Fund, Growth and Income Fund, Small Company Value Fund, International Equity Fund, Developing Markets Fund, Technology Fund and Strategic Growth Fund are sold with a front-end sales charge of up to 5.75%. Class A shares of Fixed Income Fund, Municipal Trust Fund and High Income Fund are sold with a front-end sales charge of up to 4.75%. Class B shares are sold with a contingent deferred sales charge which declines from 4% to zero depending on the period of time the shares are held. Class C shares are sold with a contingent deferred sales charge of 1% if redeemed within the first year of purchase. Class R shares are available for purchase at net asset value by eligible institutions on behalf of their clients. Each class is identical in all respects except that Class A and Class R shares bear similar distribution service fees which are different than Class B and Class C shares; and Class D shares are not subject to any distribution service fees. Class A, Class B, Class C and Class R shares have exclusive voting rights with respect to each class's distribution plan. Each class has different exchange privileges and only Class B shares have a conversion feature. The Funds account separately for the assets, liabilities and operations of each Portfolio. Expenses directly attributable to each Portfolio are charged to that Portfolio's operations; expenses which are applicable to all Portfolios are allocated among them on a pro rata basis. The Funds' financial statements are prepared in accordance with accounting principles generally accepted in the United States which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the DLJ Funds. (1) SECURITY VALUATION: Securities and options traded on national exchanges and over-the-counter securities listed in the NASDAQ National Market System are valued at the last reported sales price at the close of the New York Stock Exchange. Securities for which there have been no sales on such day are valued at the mean of the current bid and asked prices. Over-the-counter securities not listed on the NASDAQ National Market System are valued at the mean of the current bid and asked prices. Fixed-income securities, except short-term securities, may be valued on the basis of prices provided by a pricing service when such prices are believed by the Advisor to reflect the fair market value of such securities. The prices provided by a pricing service are determined without regard to bid or last sale prices but take into account institutional size, trading in similar groups of securities and any developments related to the specific securities. Short-term investments, those with a remaining maturity of 60 days or less, are valued at amortized cost, which approximates market value. (2) REPURCHASE AGREEMENTS: The Funds may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the Funds' Advisor, subject to the seller's agreement to repurchase and the Funds' agreement to resell such securities at a mutually agreed-upon price. Securities purchased subject to repurchase agreements are deposited with the Funds' custodian and, pursuant to the terms of the repurchase agreement, must have an aggregate market value greater than or equal to the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Funds will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Funds maintain the right to sell the underlying securities at market value and may claim any resulting loss against the seller. (3) FOREIGN CURRENCY TRANSACTIONS: Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the bid prices of such currencies against the U.S. dollar as of the date of valuation. Purchases and sales of portfolio securities, commitments under forward foreign currency contracts, income receipts and expense accruals are translated at the prevailing exchange rate on the date of each transaction. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized gain (loss) on foreign currency transactions arises from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net change in unrealized appreciation on translation of foreign currency denominated assets and liabilities arises from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in exchange rates. (4) FEDERAL INCOME TAXES: The Funds intend to be treated as 'regulated investment companies' under Sub-chapter M of the Internal Revenue Code and to distribute substantially all of their net taxable income. Accordingly, no provisions for Federal income taxes have been made in the accompanying financial statements. DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- The Fixed Income Fund, Municipal Trust Fund, Developing Markets Fund, Strategic Growth Fund and Technology Fund each have unused capital loss carryovers available for Federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to October 31, 2000. The approximate amounts and the fiscal year upon which the carryovers will be terminated are as follows: FIXED MUNICIPAL HIGH TECHNOLOGY STRATEGIC DEVELOPING INCOME FUND TRUST FUND INCOME FUND FUND GROWTH FUND MARKETS FUND ----------- ---------- ----------- ---- ----------- ------------ Capital Loss Carryovers Total:........................ $2,636,000 $126,000 $404,000 $1,948,000 $188,000 $3,942,000 ---------- -------- -------- ---------- -------- ---------- ---------- -------- -------- ---------- -------- ---------- Expires in: Fiscal 2008....... $2,094,000 $126,000 $404,000 $1,948,000 $188,000 $ -- Fiscal 2007........... 542,000 -- -- -- -- 771,000 Fiscal 2006........... -- -- -- -- -- 587,000 Fiscal 2005........... -- -- -- -- -- 2,584,000 (5) INVESTMENT INCOME AND SECURITIES TRANSACTIONS: Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Security transactions are accounted for on the date securities are purchased or sold. Security gains and losses are determined on the identified cost basis. Discounts and premiums on securities purchased are amortized in accordance with income tax regulations which approximate generally accepted accounting principles. In November 2000, the American Institute of Certified Public Accountants (AICPA) issued a revised version of the AICPA Audit and Accounting Guide for Investment Companies (the 'Guide'). The revised version of the Guide is effective for annual financial statements beginning after December 15, 2000 and will require investment companies to amortize premiums and discounts on fixed income securities. Currently, the Municipal Trust Fund does not amortize discounts and the High Income Fund does not amortize premiums. Upon adoption, the Funds will be required to record a cumulative effect adjustment to reflect the amortization. The adjustment will result in a reclassification between net investment income and unrealized appreciation/(depreciation) and, therefore, will not impact total net assets. At this time, the Funds have not completed their analysis of the impact of this accounting change. (6) DIVIDENDS AND DISTRIBUTIONS: Dividends and distributions to shareholders are recorded on the ex-dividend date. (7) DEFERRED ORGANIZATION COSTS: Costs incurred in connection with the International Equity Fund's and the Developing Markets Fund's organization are being amortized on a straight-line basis over five years commencing with the Fund's operation. (8) CONCENTRATION OF RISK: At October 31, 2000, the Municipal Trust Fund had approximately 36% of its net assets invested in municipal obligations of Texas. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations of the Fund. The High Income Fund invests in fixed income securities rated below investment-grade quality or unrated fixed income securities deemed to be of comparable quality. Lower grade fixed income securities are commonly known as 'junk bonds' and are subject to special risks, including greater price volatility and a greater risk of loss of principal and non-payment of interest. The Technology Fund concentrates its investments in companies that rely significantly on technological events or advances in their product development, production or operations. Market or economic factors impacting these companies could have a major effect on the value of the Fund's investments. The value of stocks of these companies is particularly vulnerable to rapid changes in technological product cycles, government regulation and competition. The International Equity Fund and Developing Markets Fund each invest substantially all of their net assets in foreign securities. Foreign securities are generally more volatile and less liquid than U.S. securities, in part because of greater political and economic risks, less public information available about foreign companies and differing degrees of regulation and differing reporting, accounting and auditing standards. In addition, the Developing Markets Fund is subject to the risks of investing in developing or emerging markets. (9) RECLASSIFICATION OF COMPONENTS OF NET ASSETS: At October 31, 2000, the following reclassifications were recorded to reflect permanent book to tax differences. These reclassifications had no effect on net assets or net asset value per share. DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- UNDISTRIBUTED ACCUMULATED NET NET REALIZED GAIN CAPITAL INVESTMENT (LOSS) ON FUND PAID-IN INCOME INVESTMENTS - ---- ------- ------ ----------- Core Equity Fund................................... (683,410) 683,410 -- Growth and Income Fund............................. 20,275 -- (20,275) Small Company Value Fund........................... -- 710 710 Strategic Growth Fund.............................. (29,144) 29,144 -- Technology Fund.................................... (262,127) 262,127 -- International Equity Fund.......................... -- 321,277 (321,277) Developing Markets Fund............................ (211,471) 168,889 42,582 Fixed Income Fund.................................. (72,067) 48,592 23,475 Municipal Trust Fund............................... -- (2,492) 2,492 High Income Fund................................... (11,313) 8,076 3,237 NOTE (B) ADVISORY AND DISTRIBUTION SERVICES AGREEMENT: Donaldson, Lufkin & Jenrette, Inc. ('DLJ') was acquired by Credit Suisse Group ('Credit Suisse') on November 3, 2000 (the 'Acquisition'). Prior to the Acquisition, DLJ Asset Management Group ('DLJAM'), a wholly-owned subsidiary of Donaldson, Lufkin & Jenrette Securities Corporation ('DLJSC'), a wholly-owned subsidiary of DLJ, served as advisor to the Funds. Credit Suisse combined the investment advisory business of DLJAM with its existing U.S. asset management business, Credit Suisse Asset Management, LLC ('CSAM'). Accordingly, CSAM presently acts as the investment advisor to the Funds (the 'Advisor'). In anticipation of the Acquisition, at a meeting held on October 26, 2000, the Board of Trustees of the Funds approved an interim investment advisory agreement (the 'Interim Advisory Agreement') with CSAM on behalf of the Funds. The Interim Advisory Agreement will terminate, upon the earlier of 150 days from November 3, 2000 which is April 2, 2001 or the date of approval by the shareholders of a new investment advisory agreement. Under the Interim Advisory Agreement with the Funds, the Advisor will provide investment advisory services and order placement facilities for the DLJ Funds and pay all compensation of Trustees of the DLJ Funds who are affiliated persons of the Advisor. The Advisor or its affiliates will also furnish the DLJ Funds, without charge, management supervision and assistance and office facilities. As required by rule 15a-4(vi) of the 1940 Act, the Interim Advisory Agreement provides that fees earned by the Advisor with respect to each Fund will be deposited into an interest-bearing escrow account with Citibank, N.A., the Funds' Custodian, and will only be paid to CSAM if a majority of the shareholders of such Fund approves a New Investment Advisory Agreement for that Fund. If shareholders of a DLJ Fund do not approve a New Investment Advisory Agreement, CSAM will receive as compensation or reimbursement in respect of such Fund the lesser of: (i) the fee under such Interim Advisory Agreement (the 'Advisory Fee'); or (ii) the costs of providing services during the term of such Interim Advisory Agreement (plus, in each case, interest earned on that amount while in escrow). The advisory fees paid by the Funds for the fiscal year ended October 31, 2000 were based on the following annual percentage rates of the average daily net assets of each Fund: Core Equity Fund, .750 of 1% of the first $100,000,000, .500 of 1% of the balance; Growth and Income Fund, .750 of 1% of the first $75,000,000, .500 of 1% of the balance; Small Company Value Fund, .875 of 1% of the first $100,000,000, .750 of 1% of the next $100,000,000 and .625 of 1% of net assets in excess of $200,000,000; Fixed Income Fund, .625 of 1% of the first $100,000,000, .500 of 1% of the balance; Municipal Trust Fund, .625 of 1% of the first $100,000,000, .500 of 1% of the balance; Technology Fund, .875 of 1% of the first $500,000,000, .750 of 1% of the next $500,000,000 and .625 of 1% of the balance; Strategic Growth Fund, .750 of 1% of the first $500,000,000 and .625 of 1% of the balance; International Equity Fund and Developing Markets Fund, 1.25% of the first $100,000,000, 1.15% of the next $100,000,000 and 1% of the balance; and High Income Fund, .70 of 1% of the first $500,000,000 and .625 of 1% of the balance. Such fees are accrued daily. Effective November 1, 2000, the Advisory Fee for the International Equity Fund was reduced to 1.00% of the average daily net assets. Through October 31, 2000, the Advisor had retained AXA Investment Managers GM Ltd. ('AXA') as subadvisor to the International Equity Fund and the Developing Markets Fund. The Advisor paid AXA for its services, out of the Advisor's own resources, at the following annual percentage rates of the average daily net assets of each of the International Equity Fund and Developing Markets Fund: .625 of 1% of each Portfolio's first $100,000,000, .575 of 1% of the next $100,000,000 and .50 of 1% of the balance. Effective November 1, 2000, upon the termination of AXA as subadviser of the Developing Markets Fund and International Equity Fund (the 'International Funds'), the Adviser became solely responsible for investment management of the International Funds. The investment objective of each Fund has remained unchanged. Through October 31, 2001, the Advisor has agreed to contractual expense limitations to reduce its management fees and reimburse operating expenses by the amount that total fund operating expenses exceed the percentage of the average daily net assets of each share class of each Fund referenced below: TECHNOLOGY STRATEGIC INTERNATIONAL DEVELOPING FIXED INCOME MUNICIPAL HIGH INCOME FUND GROWTH FUND EQUITY FUND MARKETS FUND FUND TRUST FUND FUND ---- ----------- ----------- ------------ ---- ---------- ---- Class A................... 1.39% 1.19% 2.15% 2.15% 0.95% 0.95% 1.10% Class B................... 2.14 1.94 2.90 2.90 1.70 1.70 1.85 Class C................... 2.14 1.94 2.90 2.90 1.70 1.70 1.85 Class D................... 1.14 N/A 1.90 N/A 0.70 N/A 0.85 Class R................... 1.39 1.19 2.15 2.15 0.95 0.95 1.10 DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- After October 31, 2001, the Advisor may, in its sole discretion, determine to discontinue this practice with respect to all or any of such Funds. As a result of the assumption of expenses, the Advisor reimbursed the Technology Fund, Strategic Growth Fund, Fixed Income Fund, Municipal Trust Fund and High Income Fund $196,374, $118,483, $188,370, $138,175, and $224,209, respectively, during the year ended October 31, 2000. The Advisor and AXA waived fees amounting to $152,177 for the Developing Markets Fund during the year ended October 31, 2000. Pursuant to Rule 12b-1 under the Act, the DLJ Funds have entered into a Distribution Services Agreement (the 'Agreement') with Donaldson, Lufkin & Jenrette Securities Corporation, the Funds' Distributor. Effective as of August 1, 2000, the annual distribution service fee for Class A shares of each Focus Fund portfolio was reduced from .30 of 1.00% to .25 of 1.00%. Accordingly, under the Agreement, each Fund portfolio will pay a distribution services fee to the Distributor at an annual rate of .25 of 1% of the average daily net assets attributable to Class A and Class R shares and 1% of the average daily net assets attributable to Class B and Class C shares. Under the Agreement, each Focus Fund and Select Fund portfolio is obligated to pay distribution and/or service fees to the Distributor as compensation for its distribution and service activities ('Compensation Agreement') not as reimbursement for specific expenses incurred. If the Distributor's expenses exceed its distribution and service fees, such Funds will not be obligated to pay additional expenses. If the Distributor's expenses are less than such distribution and service fees, it will retain its full fees and realize a profit. Under the Agreement with the Opportunity Fund portfolios, amounts paid are used in their entirety to reimburse the Distributor for actual expenses incurred for distribution assistance and promotional activities ('Reimbursement Agreement'). In addition, the Agreement provides that the Advisor may use its own resources including fees from investment companies (including the DLJ Funds) to finance the distribution of DLJ Funds' shares. Prior to August 1, 2000, the Select Funds had a Shareholder Servicing Plan that permitted each Fund to pay banks, broker-dealers or other financial institutions for shareholder support services they provide at a rate of up to .25 of 1% of the average daily net assets of each Fund. This fee was discontinued at the time the Funds adopted a multiclass structure. Effective May 16, 2000, each Focus Fund Trustee who is not an affiliated person as defined in the Act will be paid a fee of $2,500 for each board meeting attended, a $500 fee for each special meeting attended, a $250 fee for each audit committee meeting and an annual retainer of $500. Each Opportunity Fund Trustee who is not an affiliated person as defined in the Act will be paid a fee of $1,500 for each board meeting attended, a $500 fee for each special meeting attended, a $250 fee for each audit committee meeting and an annual retainer of $500. Each Select Fund Trustee who is not an affiliated person as defined in the Act will be paid a $500 fee for each board meeting attended, a $500 fee for each special meeting attended, a $250 fee for each audit committee meeting and an annual retainer fee of $500. Prior to May 16, 2000, each Focus Fund Trustee who is not an affiliated person as defined in the Act received an attendance fee of $2,000 per meeting and $500 per audit committee meeting and an annual retainer of $2,000. Each Opportunity Fund Trustee who is not an affiliated person as defined in the Act received attendance fees of $2,000 per meeting and $1,000 per audit committee meeting. Each Select Fund Trustee who is not an affiliated person as defined in the Act received attendance fees of $1,000 per meeting and $500 per audit committee meeting. Trustees' fees are charged to all series of the appropriate Trust and are allocated on a pro rata basis. During the year ended October 31, 1999, the Subadvisor reimbursed the Developing Markets Fund $460,289 for realized and unrealized losses on certain security transactions. NOTE (C) INVESTMENT TRANSACTIONS: For federal income tax purposes, the cost of securities owned at October 31, 2000 was substantially the same as the cost of securities for financial statement purposes. At October 31, 2000, the components of the net unrealized appreciation (depreciation) on investments were as follows: GROWTH AND SMALL STRATEGIC DEVELOPING CORE EQUITY INCOME COMPANY TECHNOLOGY GROWTH INTERNATIONAL MARKETS FUND FUND VALUE FUND FUND FUND EQUITY FUND FUND ---- ---- ---------- ---- ---- ----------- ---- Gross appreciation (investments having an excess of value over cost).......... $87,651,487 $81,116,921 $62,350,828 $ 5,504,219 $1,137,352 $ 5,086,151 $ 1,812,792 Gross depreciation (investments having an excess of cost over value)......... (2,365,489) (864,280) (1,261,856) (6,315,957) (822,673) (10,173,843) (3,910,192) ----------- ----------- ----------- ----------- ---------- ------------ ----------- Net unrealized appreciation (depreciation) of investments......... $85,285,998 $80,252,641 $61,088,972 $ (811,738) $ 314,679 $ (5,087,692) $(2,097,400) ----------- ----------- ----------- ----------- ---------- ------------ ----------- ----------- ----------- ----------- ----------- ---------- ------------ ----------- FIXED MUNICIPAL HIGH INCOME TRUST INCOME FUND FUND FUND ---- ---- ---- Gross appreciation (investments having an excess of value over cost).......... $ 269,412 $411,784 $ 156,136 Gross depreciation (investments having an excess of cost over value)......... (2,265,357) (72,221) (1,674,840) ----------- -------- ----------- Net unrealized appreciation (depreciation) of investments......... $(1,995,945) $339,563 $(1,518,704) ----------- -------- ----------- ----------- -------- ----------- For the year ended October 31, 2000, total aggregate purchases and sales of portfolio securities, excluding short-term securities, were as follows: SMALL STRATEGIC DEVELOPING CORE EQUITY GROWTH AND COMPANY TECHNOLOGY GROWTH INTERNATIONAL MARKETS FUND INCOME FUND VALUE FUND FUND FUND EQUITY FUND FUND ---- ----------- ---------- ---- ---- ----------- ---- Purchases............ $97,857,211 $138,472,742 $ 83,168,818 $42,083,114 $9,883,322 $34,417,375 $23,309,285 Sales................ 55,136,716 169,484,105 119,922,879 3,516,394 1,385,545 28,018,238 23,550,084 HIGH FIXED INCOME MUNICIPAL INCOME FUND TRUST FUND FUND ---- ---------- ---- Purchases............ $115,012,501 $ 4,613,355 $6,910,875 Sales................ 151,481,210 11,971,729 5,647,900 DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- NOTE (D) SHARES OF BENEFICIAL INTEREST: There is an unlimited number of shares ($0.01 par value for the Focus Funds; $0.001 for the Opportunity Funds and Select Funds) authorized. Transactions in shares of beneficial interest were as follows: CLASS A* CLASS B* CLASS C*'D' -------- -------- ---------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ ------ ------ CORE EQUITY FUND YEAR ENDED OCTOBER 31, 2000 Shares sold.................... 1,110,169 $ 24,346,169 835,369 $17,925,689 203,183 $4,500,995 Shares issued through reinvestment of dividends and distributions................. 444,968 9,019,526 126,449 2,494,838 -- -- ----------- ------------ ---------- ----------- ------- ---------- 1,555,137 33,365,695 961,818 20,420,527 203,183 4,500,995 ----------- ------------ ---------- ----------- ------- ---------- Shares redeemed................ (838,237) (18,427,363) (236,791) (5,072,241) (703) (15,544) ----------- ------------ ---------- ----------- ------- ---------- Net increase................... 716,900 $ 14,938,332 725,027 $15,348,286 202,480 $4,485,451 ----------- ------------ ---------- ----------- ------- ---------- ----------- ------------ ---------- ----------- ------- ---------- YEAR ENDED OCTOBER 31, 1999 Shares sold.................... 1,065,641 $ 20,539,658 667,503 $12,806,960 Shares issued through reinvestment of dividends and distributions................. 79,584 1,318,711 16,719 272,358 ----------- ------------ ---------- ----------- 1,145,225 21,858,369 684,222 13,079,318 ----------- ------------ ---------- ----------- Shares redeemed................ (640,696) (12,397,268) (177,148) (3,396,569) ----------- ------------ ---------- ----------- Net increase................... 504,529 $ 9,461,101 507,074 $ 9,682,749 ----------- ------------ ---------- ----------- ----------- ------------ ---------- ----------- GROWTH AND INCOME FUND YEAR ENDED OCTOBER 31, 2000 Shares sold.................... 586,384 $ 13,390,153 309,030 $ 5,937,239 20,313 $ 471,254 Shares issued through reinvestment of dividends and distributions................. 213,248 4,986,997 50,221 1,168,147 18 436 ----------- ------------ ---------- ----------- ------- ---------- 799,632 18,377,150 359,251 7,105,386 20,331 471,690 ----------- ------------ ---------- ----------- ------- ---------- Shares redeemed................ (1,601,084) (36,923,636) (434,467) (8,818,730) -- -- ----------- ------------ ---------- ----------- ------- ---------- Net increase (decrease)........ (801,452) $(18,546,486) (75,216) $(1,713,344) 20,331 $ 471,690 ----------- ------------ ---------- ----------- ------- ---------- ----------- ------------ ---------- ----------- ------- ---------- YEAR ENDED OCTOBER 31, 1999 Shares sold.................... 678,846 $ 15,276,701 397,678 $ 9,035,772 Shares issued through reinvestment of dividends and distributions................. 614,712 12,914,181 139,759 2,921,650 ----------- ------------ ---------- ----------- 1,293,558 28,190,882 537,437 11,957,422 ----------- ------------ ---------- ----------- Shares redeemed................ (1,133,237) (25,802,845) (254,577) (5,820,349) ----------- ------------ ---------- ----------- Net increase................... 160,321 $ 2,388,037 282,860 $ 6,137,073 ----------- ------------ ---------- ----------- ----------- ------------ ---------- ----------- CLASS D'D'D' CLASS R'D'D'D' ------------ -------------- SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ CORE EQUITY FUND YEAR ENDED OCTOBER 31, 2000 Shares sold.................... 1,002,764 $21,958,459 45,018 $1,025,450 Shares issued through reinvestment of dividends and distributions................. 23,461 475,552 -- -- ----------- ----------- ------- ---------- 1,026,225 22,434,011 45,018 1,025,450 ----------- ----------- ------- ---------- Shares redeemed................ (234,930) (5,341,036) (586) (12,764) ----------- ----------- ------- ---------- Net increase................... 791,295 $17,092,975 44,432 $1,012,686 ----------- ----------- ------- ---------- ----------- ----------- ------- ---------- YEAR ENDED OCTOBER 31, 1999 Shares sold.................... 231,750 $ 4,666,053 Shares issued through reinvestment of dividends and distributions................. -- -- ----------- ----------- 231,750 4,666,053 ----------- ----------- Shares redeemed................ (4,222) (86,670) ----------- ----------- Net increase................... 227,528 $ 4,579,383 ----------- ----------- ----------- ----------- GROWTH AND INCOME FUND YEAR ENDED OCTOBER 31, 2000 Shares sold.................... 190,523 $ 4,416,217 5,481 $ 129,310 Shares issued through reinvestment of dividends and distributions................. 73,095 1,710,627 -- -- ----------- ----------- ------- ---------- 263,618 6,126,844 5,481 129,310 ----------- ----------- ------- ---------- Shares redeemed................ (417,169) (9,723,691) (1,587) (37,224) ----------- ----------- ------- ---------- Net increase (decrease)........ (153,551) $(3,596,847) 3,894 $ 92,086 ----------- ----------- ------- ---------- ----------- ----------- ------- ---------- YEAR ENDED OCTOBER 31, 1999 Shares sold.................... 2,283,021 $54,169,244 Shares issued through reinvestment of dividends and distributions................. 6,193 141,754 ----------- ----------- 2,289,214 54,310,998 ----------- ----------- Shares redeemed................ (240,048) (5,645,239) ----------- ----------- Net increase................... 2,049,166 $48,665,759 ----------- ----------- ----------- ----------- - ----------------------- * The Technology Fund and the Strategic Growth Fund commenced offering Class A, Class B and Class C shares on August 1, 2000. 'D' The Core Equity Fund, the Growth and Income Fund and the Small Company Value Fund commenced offering Class C shares on February 28, 2000. 'D'D' The Core Equity Fund commenced offering Class D shares on May 13, 1999. The Growth and Income Fund commenced offering Class D shares on April 30, 1999. The Technology Fund commenced offering Class D shares on September 1, 2000. 'D'D'D' The Core Equity Fund, the Growth and Income Fund and the Small Company Value Fund commenced offering Class R shares on August 1, 2000. The Technology Fund and the Strategic Growth Fund commenced offering Class R shares on November 18, 1999. DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- CLASS A* CLASS B* CLASS C*'D' -------- -------- ----------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ ------ ------ SMALL COMPANY VALUE FUND YEAR ENDED OCTOBER 31, 2000 Shares sold........................... 220,007 $ 4,504,981 57,246 $ 1,113,353 10,020 $214,880 Shares issued through reinvestment of dividends and distributions.......... 911,259 17,657,103 99,388 1,884,400 -- -- ---------- ------------ -------- ----------- ------ -------- 1,131,266 22,162,084 156,634 2,997,753 10,020 214,880 ---------- ------------ -------- ----------- ------ -------- Shares redeemed....................... (1,939,527) (38,421,201) (327,158) (6,333,402) -- -- ---------- ------------ -------- ----------- ------ -------- Net increase (decrease)............... (808,261) $(16,259,117) (170,524) $(3,335,649) 10,020 $214,880 ---------- ------------ -------- ----------- ------ -------- ---------- ------------ -------- ----------- ------ -------- YEAR ENDED OCTOBER 31, 1999 Shares sold........................... 531,219 $ 10,797,131 164,059 $ 3,282,346 Shares issued through reinvestment of dividends and distributions.......... 46,275 936,650 790 15,587 ---------- ------------ -------- ----------- 577,494 11,733,781 164,849 3,297,933 ---------- ------------ -------- ----------- Shares redeemed....................... (3,582,104) (71,324,894) (366,848) (7,218,047) ---------- ------------ -------- ----------- Net decrease.......................... (3,004,610) $(59,591,113) (201,999) $(3,920,114) ---------- ------------ -------- ----------- ---------- ------------ -------- ----------- TECHNOLOGY FUND YEAR ENDED OCTOBER 31, 2000 Shares sold........................... 229,719 $ 3,336,439 99,751 $ 1,408,302 37,523 $526,634 Shares redeemed....................... (1,956) (24,958) (108) (1,500) -- -- ---------- ------------ -------- ----------- ------ -------- Net increase.......................... 227,763 $ 3,311,481 99,643 $ 1,406,802 37,523 $526,634 ---------- ------------ -------- ----------- ------ -------- ---------- ------------ -------- ----------- ------ -------- STRATEGIC GROWTH FUND YEAR ENDED OCTOBER 31, 2000 Shares sold........................... 9,097 $ 100,773 33,000 $ 374,735 3,504 $ 41,785 Shares redeemed....................... -- -- (136) (1,535) -- -- ---------- ------------ -------- ----------- ------ -------- Net increase.......................... 9,097 $ 100,773 32,864 $ 373,200 3,504 $ 41,785 ---------- ------------ -------- ----------- ------ -------- ---------- ------------ -------- ----------- ------ -------- INTERNATIONAL EQUITY FUND YEAR ENDED OCTOBER 31, 2000 Shares sold........................... 6,796,992 $ 88,597,638 101,412 $ 1,330,439 12,162 $151,084 Shares issued through reinvestment of dividends and distributions.......... 472,799 5,990,357 57,330 704,010 -- -- ---------- ------------ -------- ----------- ------ -------- 7,269,791 94,587,995 158,742 2,034,449 12,162 151,084 ---------- ------------ -------- ----------- ------ -------- Shares redeemed....................... (6,314,145) (82,923,347) (124,475) (1,616,495) -- -- ---------- ------------ -------- ----------- ------ -------- Net increase.......................... 955,646 $ 11,664,648 34,267 $ 417,954 12,162 $151,084 ---------- ------------ -------- ----------- ------ -------- ---------- ------------ -------- ----------- ------ -------- YEAR ENDED OCTOBER 31, 1999 Shares sold........................... 860,513 $ 11,381,549 68,854 $ 881,626 Shares issued through reinvestment of dividends and distributions.......... 208,666 2,393,398 31,390 352,824 ---------- ------------ -------- ----------- 1,069,179 13,774,947 100,244 1,234,450 ---------- ------------ -------- ----------- Shares redeemed....................... (1,256,969) (16,356,572) (206,542) (2,568,893) ---------- ------------ -------- ----------- Net increase (decrease)............... (187,790) $ (2,581,625) (106,298) $(1,334,443) ---------- ------------ -------- ----------- ---------- ------------ -------- ----------- CLASS D'D'D' CLASS R'D'D'D' ------------ -------------- SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ SMALL COMPANY VALUE FUND YEAR ENDED OCTOBER 31, 2000 Shares sold........................... 5,709 $ 124,927 Shares issued through reinvestment of dividends and distributions.......... -- -- ---------- ------------ 5,709 124,927 ---------- ------------ Shares redeemed....................... (1,051) (22,662) ---------- ------------ Net increase (decrease)............... 4,658 $ 102,265 ---------- ------------ ---------- ------------ YEAR ENDED OCTOBER 31, 1999 Shares sold........................... Shares issued through reinvestment of dividends and distributions.......... Shares redeemed....................... Net decrease.......................... TECHNOLOGY FUND YEAR ENDED OCTOBER 31, 2000 Shares sold........................... 301,181 $4,272,189 3,245,020 $ 44,571,558 Shares redeemed....................... (43,594) (573,272) (1,003,373) (13,836,940) -------- ---------- ---------- ------------ Net increase.......................... 257,587 $3,698,917 2,241,647 $ 30,734,618 -------- ---------- ---------- ------------ -------- ---------- ---------- ------------ STRATEGIC GROWTH FUND YEAR ENDED OCTOBER 31, 2000 Shares sold........................... 1,032,690 $ 11,279,363 Shares redeemed....................... (282,434) (3,166,259) ---------- ------------ Net increase.......................... 750,256 $ 8,113,104 ---------- ------------ ---------- ------------ INTERNATIONAL EQUITY FUND YEAR ENDED OCTOBER 31, 2000 Shares sold........................... 447,723 $6,062,902 13,473 $ 169,837 Shares issued through reinvestment of dividends and distributions.......... 21,021 266,755 -- -- -------- ---------- ---------- ------------ 468,744 6,329,657 13,473 169,837 -------- ---------- ---------- ------------ Shares redeemed....................... (190,108) (2,533,295) (2,037) (23,981) -------- ---------- ---------- ------------ Net increase.......................... 278,636 $3,796,362 11,436 $ 145,856 -------- ---------- ---------- ------------ -------- ---------- ---------- ------------ YEAR ENDED OCTOBER 31, 1999 Shares sold........................... 122,267 $1,606,921 Shares issued through reinvestment of dividends and distributions.......... -- -- -------- ---------- 122,267 1,606,921 -------- ---------- Shares redeemed....................... (9,114) (119,032) -------- ---------- Net increase (decrease)............... 113,153 $1,487,889 -------- ---------- -------- ---------- - ----------------------- * The Technology Fund and the Strategic Growth Fund commenced offering Class A, Class B and Class C shares on August 1, 2000. 'D' The Small Company Value Fund and the International Equity Fund commenced offering Class C shares on February 28, 2000. 'D'D' The International Equity Fund commenced offering Class D shares on May 13, 1999. The Technology Fund commenced offering Class D shares on September 1, 2000. 'D'D'D' The Technology Fund and the Strategic Growth Fund commenced offering Class R shares on November 18, 1999. The Small Company Value Fund and the International Equity Fund commenced offering Class R shares on August 1, 2000. DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- CLASS A CLASS B CLASS C'D' ------- ------- ---------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ ------ ------ DEVELOPING MARKETS FUND YEAR ENDED OCTOBER 31, 2000 Shares sold............................. 186,207 $ 2,274,649 55,944 $ 625,955 1,447 $14,240 Shares redeemed......................... (249,683) (2,912,298) (66,506) (694,884) -- -- ---------- ------------ -------- ----------- ----- ------- Net increase (decrease)................. (63,476) $ (637,649) (10,562) $ (68,929) 1,447 $14,240 ---------- ------------ -------- ----------- ----- ------- ---------- ------------ -------- ----------- ----- ------- YEAR ENDED OCTOBER 31, 1999 Shares sold............................. 295,113 $ 2,812,440 25,395 $ 232,158 Shares issued through reinvestment of dividends and distributions............ 5,473 40,773 -- -- ---------- ------------ -------- ----------- 300,586 2,853,213 25,395 232,158 ---------- ------------ -------- ----------- Shares redeemed......................... (980,986) (7,682,356) (108,041) (843,094) ---------- ------------ -------- ----------- Net decrease............................ (680,400) $ (4,829,143) (82,646) $ (610,936) ---------- ------------ -------- ----------- ---------- ------------ -------- ----------- FIXED INCOME FUND YEAR ENDED OCTOBER 31, 2000 Shares sold............................. 336,527 $ 3,256,988 32,723 $ 319,589 25 $ 250 Shares issued through reinvestment of dividends and distributions............ 157,180 1,526,182 14,273 138,551 1 6 ---------- ------------ -------- ----------- ----- ------- 493,707 4,783,170 46,996 458,140 26 256 ---------- ------------ -------- ----------- ----- ------- Shares redeemed......................... (1,308,905) (12,689,386) (169,646) (1,649,910) -- -- ---------- ------------ -------- ----------- ----- ------- Net increase (decrease)................. (815,198) $ (7,906,216) (122,650) $(1,191,770) 26 $ 256 ---------- ------------ -------- ----------- ----- ------- ---------- ------------ -------- ----------- ----- ------- YEAR ENDED OCTOBER 31, 1999 Shares sold............................. 441,735 $ 4,439,974 96,962 $ 984,089 Shares issued through reinvestment of dividends and distributions............ 207,086 2,087,393 26,021 262,583 ---------- ------------ -------- ----------- 648,821 6,527,367 122,983 1,246,672 ---------- ------------ -------- ----------- Shares redeemed......................... (841,917) (8,495,678) (227,336) (2,280,058) ---------- ------------ -------- ----------- Net increase (decrease)................. (193,096) $ (1,968,311) (104,353) $(1,033,386) ---------- ------------ -------- ----------- ---------- ------------ -------- ----------- MUNICIPAL TRUST FUND YEAR ENDED OCTOBER 31, 2000 Shares sold............................. 506,447 $ 4,666,724 12,796 $ 128,248 25 $ 250 Shares issued through reinvestment of dividends and distributions............ 87,675 875,336 1,576 15,731 1 5 ---------- ------------ -------- ----------- ----- ------- 594,122 5,542,060 14,372 143,979 26 255 ---------- ------------ -------- ----------- ----- ------- Shares redeemed......................... (1,334,680) (12,950,312) (11,036) (109,160) -- -- ---------- ------------ -------- ----------- ----- ------- Net increase (decrease)................. (740,558) $ (7,408,252) 3,336 $ 34,819 26 $ 255 ---------- ------------ -------- ----------- ----- ------- ---------- ------------ -------- ----------- ----- ------- YEAR ENDED OCTOBER 31, 1999 Shares sold............................. 1,193,944 $ 12,204,296 19,981 $ 208,455 Shares issued through reinvestment of dividends and distributions............ 110,367 1,144,940 1,941 20,128 ---------- ------------ -------- ----------- 1,304,311 13,349,236 21,922 228,583 ---------- ------------ -------- ----------- Shares redeemed......................... (2,534,110) (26,096,460) (53,743) (551,419) ---------- ------------ -------- ----------- Net decrease............................ (1,229,799) $(12,747,224) (31,821) $ (322,836) ---------- ------------ -------- ----------- ---------- ------------ -------- ----------- CLASS D'D'D' CLASS R'D'D'D' ------------ -------------- SHARES AMOUNT SHARES AMOUNT ------ ------ ------ ------ DEVELOPING MARKETS FUND YEAR ENDED OCTOBER 31, 2000 Shares sold............................. 2,296 $21,100 Shares redeemed......................... (188) (1,674) ----- ------- Net increase (decrease)................. 2,108 $19,426 ----- ------- ----- ------- YEAR ENDED OCTOBER 31, 1999 Shares sold............................. Shares issued through reinvestment of dividends and distributions............ Shares redeemed......................... Net decrease............................ FIXED INCOME FUND YEAR ENDED OCTOBER 31, 2000 Shares sold............................. 386,500 $ 3,757,752 2,737 $26,766 Shares issued through reinvestment of dividends and distributions............ 589,143 5,721,468 1 2 ---------- ------------ ----- ------- 975,643 9,479,220 2,738 26,768 ---------- ------------ ----- ------- Shares redeemed......................... (3,081,629) (29,924,903) (516) (5,043) ---------- ------------ ----- ------- Net increase (decrease)................. (2,105,986) $(20,445,683) 2,222 $21,725 ---------- ------------ ----- ------- ---------- ------------ ----- ------- YEAR ENDED OCTOBER 31, 1999 Shares sold............................. 12,857,121 $129,704,316 Shares issued through reinvestment of dividends and distributions............ 321,819 3,176,577 ---------- ------------ 13,178,940 132,880,893 ---------- ------------ Shares redeemed......................... (1,338,506) (13,268,326) ---------- ------------ Net increase (decrease)................. 11,840,434 $119,612,567 ---------- ------------ ---------- ------------ MUNICIPAL TRUST FUND YEAR ENDED OCTOBER 31, 2000 Shares sold............................. 2,597 $26,283 Shares issued through reinvestment of dividends and distributions............ -- 1 ----- ------- 2,597 26,284 ----- ------- Shares redeemed......................... -- -- ----- ------- Net increase (decrease)................. 2,597 $26,284 ----- ------- ----- ------- YEAR ENDED OCTOBER 31, 1999 Shares sold............................. Shares issued through reinvestment of dividends and distributions............ Shares redeemed......................... Net decrease............................ - ----------------------- 'D' The Funds commenced offering Class C shares on February 28, 2000. 'D'D' The International Equity Fund commenced offering Class D shares on May 13, 1999. The Fixed Income Fund commenced offering Class D shares on April 30, 1999. 'D'D'D' The Funds commenced offering Class R shares on August 1, 2000. DLJ MUTUAL FUNDS -- NOTES TO FINANCIAL STATEMENTS October 31, 2000 (continued) - -------------------------------------------------------------------------------- CLASS A CLASS B CLASS C'D' ----------------------- ---------------------- ---------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT --------- ----------- -------- ----------- ------ ------- HIGH INCOME FUND YEAR ENDED OCTOBER 31, 2000 Shares sold................................ 223,661 $ 2,151,376 96,854 $ 930,638 8,900 $81,668 Shares issued through reinvestment of dividends and distributions............... 69,212 649,902 10,360 97,280 83 729 --------- ----------- -------- ----------- ----- ------- 292,873 2,801,278 107,214 1,027,918 8,983 82,397 --------- ----------- -------- ----------- ----- ------- Shares redeemed............................ (152,603) (1,455,897) (106,669) (1,012,257) -- -- --------- ----------- -------- ----------- ----- ------- Net increase............................... 140,270 $ 1,345,381 545 $ 15,661 8,983 $82,397 --------- ----------- -------- ----------- ----- ------- --------- ----------- -------- ----------- ----- ------- YEAR ENDED OCTOBER 31, 1999* Shares sold................................ 1,147,988 $11,482,944 146,586 $ 1,472,897 Shares issued through reinvestment of dividends and distributions............... 29,206 289,072 3,485 34,378 --------- ----------- -------- ----------- 1,177,194 11,772,016 150,071 1,507,275 --------- ----------- -------- ----------- Shares redeemed............................ (91,250) (901,341) (219) (2,146) --------- ----------- -------- ----------- Net increase............................... 1,085,944 $10,870,675 149,852 $ 1,505,129 --------- ----------- -------- ----------- --------- ----------- -------- ----------- CLASS D'D'D' CLASS R'D'D'D' -------------------- ---------------------- SHARES AMOUNT SHARES AMOUNT ------- ---------- -------- ----------- HIGH INCOME FUND YEAR ENDED OCTOBER 31, 2000 Shares sold................................ 128,646 $1,221,941 173,806 $ 1,579,027 Shares issued through reinvestment of dividends and distributions............... 14,720 136,886 1 2 ------- ---------- -------- ----------- 143,366 1,358,827 173,807 1,579,029 ------- ---------- -------- ----------- Shares redeemed............................ (67,043) (635,769) (157,691) (1,398,719) ------- ---------- -------- ----------- Net increase............................... 76,323 $ 723,058 16,116 $ 180,310 ------- ---------- -------- ----------- ------- ---------- -------- ----------- YEAR ENDED OCTOBER 31, 1999* Shares sold................................ 95,325 $ 951,003 Shares issued through reinvestment of dividends and distributions............... 2,578 25,219 ------- ---------- 97,903 976,222 ------- ---------- Shares redeemed............................ (2,019) (19,980) ------- ---------- Net increase............................... 95,884 $ 956,242 ------- ---------- ------- ---------- - ----------------------- 'D' The High Income Fund commenced offering Class C shares on February 28, 2000. 'D'D' The High Income Fund commenced offering Class D shares on May 13, 1999. 'D'D'D' The High Income Fund commenced offering Class R shares on August 1, 2000. * The High Income Fund commenced operations on March 8, 1999. NOTE (E) SUBSEQUENT EVENTS: On December 18, 2000 the Board of Trustees of each of the DLJ Funds listed below ('Acquired Funds') approved an Agreement and Plan of Reorganization providing for a proposed acquisition (each such transition, an 'Acquisition') of all of the assets and liabilities of each Acquired Fund by certain CSAM advised Warburg Pincus Funds (the 'Acquiring Funds'). The Acquisition would be considered a tax free exchange of shares of beneficial interest of the Acquired Fund at net asset value and the assumption of stated liabilities. The Agreement and Plan of Reorganization is subject to the approval of the shareholders of each of the Acquired Funds. ACQUIRED FUNDS ACQUIRING FUNDS -------------- --------------- DLJ Strategic Growth Fund Warburg Pincus Focus Fund DLJ Developing Markets Fund Warburg Pincus Emerging Markets Fund DLJ Fixed Income Fund Warburg Pincus Fixed Income Fund DLJ Municipal Trust Fund Warburg Pincus Municipal Bond Fund In addition, on December 18, 2000, upon the approval of new distribution agreements ('New Distribution Agreements') by each Board of Trustees of the DLJ Funds, Credit Suisse Asset Management Securities, Inc. ('CSAMI') assumed the role as the Funds' Distributor. The New Distribution Agreements with CSAMI are in the same form as the prior agreements with DLJSC, except for the identity of the parties, the commencement date and certain other minor changes. Importantly, there are no changes to fees, services, standards of care, identification or termination provisions. FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- The table below sets forth financial data for a share of beneficial interest outstanding throughout the periods presented. This information has been derived from information provided in the financial statements. CORE EQUITY FUND ------------------------------------------------------------------------------------------------------ CLASS A CLASS B ---------------------------------------------------- ----------------------------------------------- YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31, ---------------------------------------------------- ----------------------------------------------- 2000 1999 1998 1997 1996 2000 1999 1998 1997 1996(1) -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- Net asset value, beginning of period............ $ 21.27 $ 16.52 $ 14.56 $ 12.69 $ 11.35 $ 20.75 $ 16.25 $ 14.41 $ 12.63 $11.88 Net investment income (loss)............ (0.04)* (0.03)* --*(6) 0.03 0.05 (0.20)* (0.17)* (0.12)* (0.03) (0.01) Net realized and unrealized gain (loss) on investments....... 2.92 5.04 2.88 3.07 2.11 2.85 4.93 2.86 3.02 0.76 -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Net increase in net asset value from operations........ 2.88 5.01 2.88 3.10 2.16 2.65 4.76 2.74 2.99 0.75 -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Dividends from net investment income. -- -- (0.02) (0.05) (0.04) -- -- -- (0.03) -- Distributions from capital gains..... (1.61) (0.26) (0.90) (1.18) (0.78) (1.61) (0.26) (0.90) (1.18) -- -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Total distributions. (1.61) (0.26) (0.92) (1.23) (0.82) (1.61) (0.26) (0.90) (1.21) -- -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Net asset value, end of period......... $ 22.54 $ 21.27 $ 16.52 $ 14.56 $ 12.69 $ 21.79 20.75 $ 16.25 $ 14.41 $12.63 -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Total return'D'D'.. 14.39% 30.77% 21.00% 26.48% 20.32% 13.58% 29.73% 20.20% 25.66% 6.40% Ratio of expenses to average net assets............ 1.14% 1.23% 1.29% 1.36% 1.48% 1.85% 1.93% 1.99% 2.06% 2.17%'D' Ratio of net investment income (loss) to average net assets........ (0.19)% (0.16)% (0.02)% 0.21% 0.47% (0.91)% (0.86)% (0.72)% (0.51)% (0.34)%'D' Portfolio turnover rate.............. 26.0% 34.7% 21.0% 41.1% 60.6% 26.0% 34.7% 21.0% 41.1% 60.6% Net assets, end of period (000 omitted).......... $159,945 $135,677 $ 97,078 $ 82,926 $ 68,096 $50,233 $32,783 $17,438 $10,378 $3,177 CORE EQUITY FUND -------------------------------------------------------- CLASS C CLASS D CLASS R ------------ -------------------------- ------------ PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2000(2) 2000 1999(3) 2000(5) ------------ ----------- ------------ ------------ Net asset value, beginning of period.............. $20.01 $ 21.27 $ 20.29 $22.55 Net investment income (loss).............. (0.17)* 0.02* 0.01* (0.02)* Net realized and unrealized gain (loss) on investments......... 1.95 2.92 0.97 0.02 ------ ------- ------- ------ Net increase in net asset value from operations.......... 1.78 2.94 0.98 -- ------ ------- ------- ------ Dividends from net investment income... -- -- -- -- Distributions from capital gains....... -- (1.61) -- -- ------ ------- ------- ------ Total distributions.. -- (1.61) -- -- ------ ------- ------- ------ Net asset value, end of period........... $21.79 $ 22.60 $ 21.27 $22.55 ------ ------- ------- ------ ------ ------- ------- ------ Total return'D'D'.... 8.90% 14.69% 4.83% (0.00)% Ratio of expenses to average net assets.............. 1.32% 0.85% 1.17%'D' 0.27% Ratio of net investment income (loss) to average net assets.......... (0.91)% 0.07% 0.07%'D' (0.11)% Portfolio turnover rate................ 26.0% 26.0% 34.7% 26.0% Net assets, end of period (000 omitted)............ $4,412 $23,029 $ 4,839 $1,002 GROWTH AND INCOME FUND ------------------------------------------------------------------------------------------------------ CLASS A CLASS B ---------------------------------------------------- ----------------------------------------------- YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31, ---------------------------------------------------- ----------------------------------------------- 2000 1999 1998 1997 1996 2000 1999 1998 1997 1996(1) -------- -------- -------- -------- -------- ------- ------- ------- ------- ------- Net asset value, beginning of period............ $ 23.49 $ 22.60 $ 20.09 $ 17.18 $ 14.57 $ 23.37 $ 22.55 $ 20.06 $ 17.15 $16.05 Net investment income (loss)............. 0.16* 0.12* 0.20* 0.21 0.27 --(6) (0.04)* 0.04* 0.08 0.14 Net realized and unrealized gain (loss) on investments........ 0.16 2.87 3.51 4.59 2.93 0.38 2.88 3.50 4.58 1.11 -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Net increase (decrease) in net asset value from operations......... 0.32 2.99 3.71 4.80 3.20 0.38 2.84 3.54 4.66 1.25 -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Dividends from net investment income.. (0.12) (0.09) (0.17) (0.21) (0.24) -- (0.01) (0.02) (0.07) (0.15) Distributions from capital gains...... (0.69) (2.01) (1.03) (1.68) (0.35) (0.69) (2.01) (1.03) (1.68) -- -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Total distributions. (0.81) (2.10) (1.20) (1.89) (0.59) (0.69) (2.02) (1.05) (1.75) (0.15) -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Net asset value, end of period......... $ 24.62 $ 23.49 $ 22.60 $ 20.09 $ 17.18 $ 24.44 $ 23.37 $ 22.55 $ 20.06 $17.15 -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ -------- -------- -------- -------- -------- ------- ------- ------- ------- ------ Total return'D'D'... 8.44% 14.37% 19.14% 30.53% 22.60% 7.66% 13.66% 18.29% 29.59% 7.67% Ratio of expenses to average net assets............. 1.08% 1.11% 1.13% 1.22% 1.36% 1.80% 1.81% 1.83% 1.92% 1.99%'D' Ratio of net investment income (loss) to average net assets......... 0.71% 0.52% 0.92% 1.15% 1.68% (0.01)% (0.18)% 0.22% 0.39% 1.06%'D' Portfolio turnover rate............... 55.4% 24.5% 32.7% 19.8% 44.0% 55.4% 24.5% 32.7% 19.8% 44.0% Net assets, end of period (000 omitted).......... $162,871 $174,213 $163,936 $145,586 $113,803 $41,194 $41,144 $33,325 $19,664 $6,545 GROWTH AND INCOME FUND -------------------------------------------------------- CLASS C CLASS D CLASS R ------------ -------------------------- ------------ PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2000(2) 2000 1999(4) 2000(5) ------------ ----------- ------------ ------------ Net asset value, beginning of period............. $20.87 $ 23.50 $ 23.73 $22.44 Net investment income (loss)............. (0.01)* 0.23* 0.10* 0.02* Net realized and unrealized gain (loss) on investments........ 3.50 0.04 (0.26) 2.13 ------ ------- ------- ------ Net increase (decrease) in net asset value from operations......... 3.49 0.27 (0.16) 2.15 ------ ------- ------- ------ Dividends from net investment income.. (0.03) (0.18) (0.07) (0.04) Distributions from capital gains...... -- (0.69) -- -- ------ ------- ------- ------ Total distributions. (0.03) (0.87) (0.07) (0.04) ------ ------- ------- ------ Net asset value, end of period.......... $24.39 $ 24.64 $ 23.50 $24.63 ------ ------- ------- ------ ------ ------- ------- ------ Total return'D'D'... 17.02% 8.75% (0.67)% 9.96% Ratio of expenses to average net assets............. 1.28% 0.80% 0.97%'D' 0.43% Ratio of net investment income (loss) to average net assets......... (0.03)% 1.00% 0.99%'D' 0.07% Portfolio turnover rate............... 55.4% 55.4% 24.5% 55.4% Net assets, end of period (000 omitted)........... $ 496 $46,708 $48,152 $ 96 - ------------------------ 'D' Annualized. 'D'D' Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total return. Total return calculated for a period of less than one year is not annualized. * Based on average shares outstanding. (1) The Funds commenced offering Class B shares on February 28, 1996. (2) The Funds commenced offering Class C shares on February 28, 2000. (3) The Growth Fund commenced offering Class D shares on May 13, 1999. (4) The Growth and Income Fund commenced offering Class D shares on April 30, 1999. (5) The Funds commenced offering Class R shares on August 1, 2000. (6) Amount rounds to less than $0.01. FINANCIAL HIGHLIGHTS (continued) - -------------------------------------------------------------------------------- The table below sets forth financial data for a share of beneficial interest outstanding throughout the periods presented. This information has been derived from information provided in the financial statements. SMALL COMPANY VALUE FUND ---------------------------------------------------- CLASS A ---------------------------------------------------- YEAR ENDED OCTOBER 31, ---------------------------------------------------- 2000 1999 1998 1997 1996 -------- -------- -------- -------- -------- Net asset value, beginning of period...... $ 20.52 $ 19.54 $ 23.34 $ 18.41 $ 16.61 Net investment income (loss).............. 0.06* 0.06* 0.07* 0.07 0.09 Net realized and unrealized gain (loss) on investments.............................. 4.05 1.01 (2.55) 5.66 2.16 -------- -------- -------- -------- -------- Net increase (decrease) in net asset value from operations.......................... 4.11 1.07 (2.48) 5.73 2.25 -------- -------- -------- -------- -------- Dividends from net investment income...... (0.04) (0.07) (0.06) (0.08) (0.04) Distributions from capital gains.......... (2.05) (0.02) (1.26) (0.72) (0.41) -------- -------- -------- -------- -------- Total distributions....................... (2.09) (0.09) (1.32) (0.80) (0.45) -------- -------- -------- -------- -------- Net asset value, end of period............ $ 22.54 $ 20.52 $ 19.54 $ 23.34 $ 18.41 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total return'D''D'........................ 21.69% 5.47% (11.20)% 32.48% 13.80% Ratio of expenses to average net assets... 1.39% 1.37% 1.29% 1.35% 1.47% Ratio of net investment income (loss) to average net assets....................... 0.28% 0.33% 0.30% 0.37% 0.48% Portfolio turnover rate................... 41.6% 29.6% 41.5% 21.1% 35.1% Net assets, end of period (000 omitted)... $188,501 $188,192 $237,873 $283,001 $227,716 SMALL COMPANY VALUE FUND ----------------------------------------------------------------------------- CLASS B CLASS C CLASS R ----------------------------------------------- ------------ ------------ YEAR ENDED OCTOBER 31, PERIOD ENDED PERIOD ENDED ----------------------------------------------- OCTOBER 31, OCTOBER 31, 2000 1999 1998 1997 1996(1) 2000(3) 2000(4) ------- ------- ------- ------- ------- ------------ ------------ Net asset value, beginning of period...... $ 20.13 $ 19.23 $ 23.12 $ 18.34 $17.41 $17.96 $21.35 Net investment income (loss).............. (0.09)* (0.14)* (0.09)* (0.02) (0.02) (0.07)* 0.02* Net realized and unrealized gain (loss) on investments.............................. 3.96 1.06 (2.55) 5.57 0.95 4.05 1.25 ------- ------- ------- ------- ------ ------ ------ Net increase (decrease) in net asset value from operations.......................... 3.87 0.92 (2.64) 5.55 0.93 3.98 1.27 ------- ------- ------- ------- ------ ------ ------ Dividends from net investment income...... -- -- -- (0.05) -- -- -- Distributions from capital gains.......... (2.05) (0.02) (1.25) (0.72) -- -- -- ------- ------- ------- ------- ------ ------ ------ Total distributions....................... (2.05) (0.02) (1.25) (0.77) -- -- -- ------- ------- ------- ------- ------ ------ ------ Net asset value, end of period............ $ 21.95 $ 20.13 $ 19.23 $ 23.12 $18.34 $21.94 $22.62 ------- ------- ------- ------- ------ ------ ------ ------- ------- ------- ------- ------ ------ ------ Total return'D''D'........................ 20.80% 4.75% (11.98)% 31.55% 5.28% 22.16% 5.95% Ratio of expenses to average net assets... 2.10% 2.07% 1.99% 2.05% 2.15%'D' 1.42% 0.34% Ratio of net investment income (loss) to average net assets....................... (0.43)% (0.71)% (0.40)% (0.32)% (0.34)%'D' (0.33)% 0.09% Portfolio turnover rate................... 41.6% 29.6% 41.5% 21.1% 35.1% 41.6% 41.6% Net assets, end of period (000 omitted)... $17,255 $19,257 $22,284 $18,395 $6,305 $ 220 $ 105 TECHNOLOGY FUND ------------------------------------------------------------------------ CLASS A CLASS B CLASS C CLASS D CLASS R ------------ ------------ ------------ ------------ ------------ PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2000(5) 2000(5) 2000(5) 2000(6) 2000(2) ------------ ------------ ------------ ------------ ------------ Net asset value, beginning of period...... $13.30 $13.30 $13.30 $15.79 $ 10.00 Net investment loss....................... (0.04)* (0.07)* (0.06)* (0.02)* (0.14)* Net realized and unrealized loss on investments.............................. (0.47) (0.46) (0.47) (2.98) 2.93 ------ ------ ------ ------ ------- Net decrease in net asset value from operations............................... (0.51) (0.53) (0.53) (3.00) 2.79 ------ ------ ------ ------ ------- Net asset value, end of period............ $12.79 $12.77 $12.77 $12.79 $ 12.79 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------- Total return'D''D'........................ (3.83)% (3.98)% (3.98)% (19.00)% 27.90% Ratio of expenses to average net assets(7)................................ 0.35% 0.53% 0.54% 0.18% 1.31% Ratio of net investment loss to average net assets(7)............................ (0.29)% (0.47)% (0.48)% (0.15)% (1.03)% Portfolio turnover rate................... 14.2% 14.2% 14.2% 14.2% 14.2% Net assets, end of period (000 omitted)... $2,913 $1,277 $ 479 $3,292 $28,726 - ------------------------ 'D' Annualized. 'D''D' Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total return. Total return calculated for a period of less than one year is not annualized. * Based on average shares outstanding. (1) The Small Company Value Fund commenced offering Class B shares on February 28, 1996. (2) The Technology Fund commenced operations on November 18, 1999. (3) The Small Company Value Fund commenced offering Class C shares on February 28, 2000. (4) The Small Company Value Fund commenced offering Class R shares on August 1, 2000. (5) The Technology Fund commenced offering Class A, Class B and Class C shares on August 1, 2000. (6) The Technology Fund commenced offering Class D shares on September 1, 2000. (7) Net of voluntary assumption by Advisor of expenses, expressed as a percentage of average net assets, as follows: Technology Fund, 0.83% (annualized) for the period ended 10/31/00. FINANCIAL HIGHLIGHTS (continued) - -------------------------------------------------------------------------------- The table below sets forth financial data for a share of beneficial interest outstanding throughout the periods presented. This information has been derived from information provided in the financial statements. STRATEGIC GROWTH FUND --------------------------------------------------------- CLASS A CLASS B CLASS C CLASS R ------------ ------------ ------------ ------------ PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2000(4) 2000(4) 2000(4) 2000(1) ------------ ------------ ------------ ------------ Net asset value, beginning of period........................... $11.07 $11.07 $11.07 $10.00 Net investment loss............... (0.02)* (0.04)* (0.04)* (0.05)* Net realized and unrealized gain (loss) on investments............ (0.12) (0.10) (0.10) 0.99 ------ ------ ------ ------ Net increase (decrease) in net asset value from operations...... (0.14) (0.14) (0.14) 0.94 ------ ------ ------ ------ Net asset value, end of period.... $10.93 $10.93 $10.93 $10.94 ------ ------ ------ ------ ------ ------ ------ ------ Total return'D'D'................. (1.26)% (1.26)% (1.26)% 9.40% Ratio of expenses to average net assets(6)........................ 0.30% 0.48% 0.48% 1.13% Ratio of net investment loss to average net assets(6)............ (0.17)% (0.34)% (0.35)% (0.43)% Portfolio turnover rate........... 21.4% 21.4% 21.4% 21.4% Net assets, end of period (000 omitted)......................... $ 100 $ 359 $ 38 $8,263 INTERNATIONAL EQUITY FUND ----------------------------------------------- CLASS A ----------------------------------------------- YEAR ENDED OCTOBER 31, ----------------------------------------------- 2000 1999 1998 1997 1996 ------- ------- ------- ------- ------- Net asset value, beginning of period.............. $ 14.00 $ 12.20 $ 11.42 $ 10.38 $ 9.58 Net investment income (loss).............. (0.06)* (0.06)* (0.06)* (0.07)* (0.04)* Net realized and unrealized gain (loss) on investments and foreign currency transactions........ (0.11) 2.56 0.99 1.11 0.84 ------- ------- ------- ------- ------- Net increase in net asset value from operations.......... (0.17) 2.50 0.93 1.04 0.80 ------- ------- ------- ------- ------- Dividends from net investment income... -- -- (0.06) -- -- Distributions from capital gains....... (1.78) (0.70) (0.09) -- -- ------- ------- ------- ------- ------- Total distributions.. (1.78) (0.70) (0.15) -- -- ------- ------- ------- ------- ------- Net asset value, end of period........... $ 12.05 $ 14.00 $ 12.20 $ 11.42 $ 10.38 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total return'D'D'.... (1.87)% 21.76% 8.20% 10.02% 8.35% Ratio of expenses to average net assets(6)........... 2.03% 2.15% 2.15% 2.15% 2.15% Ratio of net investment income (loss) to average net assets(6)....... (0.45)% (0.44)% (0.49)% (0.59)% (0.39)% Portfolio turnover rate................ 45.2% 82.0% 69.7% 73.9% 94.1% Net assets, end of period (000 omitted)............ $52,966 $48,181 $44,286 $44,316 $42,170 INTERNATIONAL EQUITY FUND ------------------------------------------------------------------------------------------------------- CLASS B CLASS C CLASS D CLASS R -------------------------------------------- ------------ -------------------------- ------------ YEAR ENDED OCTOBER 31, PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED -------------------------------------------- OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2000 1999 1998 1997 1996 2000(2) 2000 1999(3) 2000(5) -------- ------ ------ ------ ------ ------- ---- ------- ------- Net asset value, beginning of period.............. $ 13.63 $11.98 $11.24 $10.29 $ 9.57 $13.35 $14.02 $12.69 $13.05 Net investment income (loss).............. (0.16)* (0.15)* (0.15)* (0.15)* (0.13)* (0.24)* 0.02* (0.14)* (0.11)* Net realized and unrealized gain (loss) on investments and foreign currency transactions........ (0.12) 2.50 0.98 1.10 0.85 (1.52) (0.17) 1.47 (0.89) -------- ------ ------ ------ ------ ------ ------ ------ ------ Net increase in net asset value from operations.......... (0.28) 2.35 0.83 0.95 0.72 (1.76) (0.15) 1.33 (1.00) -------- ------ ------ ------ ------ ------ ------ ------ ------ Dividends from net investment income... -- -- -- -- -- -- -- -- -- Distributions from capital gains....... (1.78) (0.70) (0.09) -- -- -- (1.78) -- -- -------- ------ ------ ------ ------ ------ ------ ------ ------ Total distributions.. (1.78) (0.70) (0.09) -- -- -- (1.78) -- -- -------- ------ ------ ------ ------ ------ ------ ------ ------ Net asset value, end of period........... $ 11.57 $13.63 $11.98 $11.24 $10.29 $11.59 $12.09 $14.02 $12.05 -------- ------ ------ ------ ------ ------ ------ ------ ------ -------- ------ ------ ------ ------ ------ ------ ------ ------ Total return'D'D'.... (2.84)% 20.86% 7.43% 9.23% 7.52% (13.18)% (1.70)% 10.48% (7.66)% Ratio of expenses to average net assets(6)........... 2.78% 2.90% 2.90% 2.90% 2.90% 2.59% 1.50% 1.90%'D' 1.63% Ratio of net investment income (loss) to average net assets(6)....... (1.22)% (1.18)% (1.24)% (1.32)% (1.25)%'D' (1.81)% 0.18% (1.14)%'D' (0.87)% Portfolio turnover rate................ 45.2% 82.0% 69.7% 73.9% 94.1% 45.2% 45.2% 82.0% 45.2% Net assets, end of period (000 omitted)............ $ 5,089 $5,527 $6,133 $6,821 $4,955 $ 141 $4,738 $1,586 $ 138 - ------------------------ 'D' Annualized. 'D'D' Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total return. Total return calculated for a period of less than one year is not annualized. * Based on average shares outstanding. (1) The Strategic Growth Fund commenced operations on November 18, 1999. (2) The International Equity Fund commenced offering Class C shares on February 28, 2000. (3) The International Equity Fund commenced offering Class D shares on May 13, 1999. (4) The Strategic Growth Fund commenced offering Class A, Class B and Class C shares on August 1, 2000. (5) The International Equity Fund commenced offering Class R shares on August 1, 2000. (6) Net of voluntary assumption by Advisor and Subadvisor of expenses, expressed as a percentage of average net assets, as follows: Strategic Growth Fund, 1.87% (annualized) for the period ended 10/31/00; International Equity Fund Class A and Class B shares, .04%, .10%, .18% and .27% for the years ended 10/31/99, 98, 97 and 96, respectively; and International Equity Fund Class D shares, .04% (annualized) for the period 05/13/99 through 10/31/99. FINANCIAL HIGHLIGHTS (continued) - -------------------------------------------------------------------------------- The table below sets forth financial data for a share of beneficial interest outstanding throughout the periods presented. This information has been derived from information provided in the financial statements. DEVELOPING MARKETS FUND ----------------------------------------------------------------------------------- CLASS A CLASS B ----------------------------------------------------------- ------------------ YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31, ----------------------------------------------------------- ------------------ 2000 1999 1998 1997 1996 2000 1999 ------- ------- ------- ------- ------- ------ ------ Net asset value, beginning of period......... $ 9.95 $ 7.14 $ 9.52 $ 9.96 $ 9.53 $ 9.66 $ 6.96 Net investment income (loss)................. (0.08)* 0.03* 0.02* (0.02)* (0.01)* (0.16)* (0.03)* Net realized and unrealized gain (loss) on investments and foreign currency transactions................................ (1.28) 2.58 (2.40) (0.40) 0.44 (1.22) 2.50 Contribution from subadvisor................. -- 0.23 -- -- -- -- 0.23 ------- ------- ------- ------- ------- ------ ------ Net increase (decrease) in net asset value from operations............................. (1.36) 2.84 (2.38) (0.42) 0.43 (1.38) 2.70 ------- ------- ------- ------- ------- ------ ------ Dividends from net investment income......... -- (0.01) -- -- -- -- -- Distributions from capital gains............. -- -- -- (0.02) -- -- -- Tax return of capital........................ -- (0.02) -- -- -- -- -- ------- ------- ------- ------- ------- ------ ------ Total distributions.......................... -- (0.03) -- (0.02) -- -- -- ------- ------- ------- ------- ------- ------ ------ Net asset value, end of period............... $ 8.59 $ 9.95 $ 7.14 $ 9.52 $ 9.96 $ 8.28 $ 9.66 ------- ------- ------- ------- ------- ------ ------ ------- ------- ------- ------- ------- ------ ------ Total return'D''D'........................... (13.67)% 39.82% (25.00)% (4.18)% 4.51% (14.29)% 38.79% Ratio of expenses to average net assets(5)... 2.15% 2.15% 2.15% 2.15% 2.15% 2.90% 2.90% Ratio of net investment income (loss) to average net assets(5)....................... (0.70)% 0.32% 0.22% (0.17)% (0.14)% (1.43)% (0.36)% Portfolio turnover rate...................... 115.4% 36.9% 43.6% 52.8% 26.8% 115.4% 36.9% Net assets, end of period (000 omitted)...... $13,294 $16,023 $16,355 $29,402 $36,918 $2,214 $2,685 DEVELOPING MARKETS FUND ------------------------------------------------------------- CLASS B CLASS C CLASS R ------------------------------- ------------ ------------ YEAR ENDED OCTOBER 31, ------------------------------- OCTOBER 31, OCTOBER 31, 1998 1997 1996 2000(3) 2000(4) ------- ------ ------ ------------ ------------ Net asset value, beginning of period......... $ 9.36 $ 9.86 $ 9.52 $12.35 $10.54 Net investment income (loss)................. (0.04)* (0.19)* (0.08)* (0.28)* (0.19)* Net realized and unrealized gain (loss) on investments and foreign currency transactions................................ (2.36) (0.29) 0.42 (3.81) (1.76) Contribution from subadvisor................. -- -- -- -- -- ------- ------ ------ ------ ------ Net increase (decrease) in net asset value from operations............................. (2.40) (0.48) 0.34 (4.09) (1.95) ------- ------ ------ ------ ------ Dividends from net investment income......... -- -- -- -- -- Distributions from capital gains............. -- (0.02) -- -- -- Tax return of capital........................ -- -- -- -- -- ------- ------ ------ ------ ------ Total distributions.......................... -- (0.02) -- -- -- ------- ------ ------ ------ ------ Net asset value, end of period............... $ 6.96 $ 9.36 $ 9.86 $ 8.26 $ 8.59 ------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total return'D''D'........................... (25.64)% (4.83)% 3.57% (33.12)% (18.50)% Ratio of expenses to average net assets(5)... 2.90% 2.90% 2.90% 1.97% 0.54% Ratio of net investment income (loss) to average net assets(5)....................... (0.50)% (1.74)% (0.83)% (1.97)% (0.54)% Portfolio turnover rate...................... 43.6% 52.8% 26.8% 115.4% 115.4% Net assets, end of period (000 omitted)...... $ 2,509 $4,941 $3,641 $ 12 $ 18 FIXED INCOME FUND -------------------------------------------------------------------------- CLASS A CLASS B ----------------------------------------------- ------------------------ YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31, ----------------------------------------------- ------------------------ 2000 1999 1998 1997 1996 2000 1999 1998 ------- ------- ------- ------- ------- ------ ------ ------ Net asset value, beginning of period......... $ 9.83 $ 10.46 $ 10.16 $ 10.07 $ 10.22 $ 9.83 $10.46 $10.16 Net investment income........................ 0.52 0.50 0.53 0.58 0.58 0.45 0.43 0.46 Net realized and unrealized gain (loss) on investments................................. (0.02) (0.53) 0.30 0.09 (0.15) (0.02) (0.53) 0.30 ------- ------- ------- ------- ------- ------ ------ ------ Net increase (decrease) in net asset value from operations............................. 0.50 (0.03) 0.83 0.67 0.43 0.43 (0.10) 0.76 ------- ------- ------- ------- ------- ------ ------ ------ Dividends from net investment income......... (0.52) (0.50) (0.53) (0.58) (0.58) (0.45) (0.43) (0.46) Distributions from capital gains............. -- (0.10) -- -- -- -- (0.10) -- ------- ------- ------- ------- ------- ------ ------ ------ Total distributions.......................... (0.52) (0.60) (0.53) (0.58) (0.58) (0.45) (0.53) (0.46) ------- ------- ------- ------- ------- ------ ------ ------ Net asset value, end of period............... $ 9.81 $ 9.83 $ 10.46 $ 10.16 $ 10.07 $ 9.81 $ 9.83 $10.46 ------- ------- ------- ------- ------- ------ ------ ------ ------- ------- ------- ------- ------- ------ ------ ------ Total return'D''D'........................... 5.31% (0.26)% 8.46% 6.84% 4.34% 4.57% (0.97)% 7.71% Ratio of expenses to average net assets(5)... 0.99% 1.00% 1.00% 1.00% 1.00% 1.70% 1.70% 1.70% Ratio of net investment income to average net assets(5)................................... 5.38% 4.91% 5.24% 5.74% 5.72% 4.67% 4.21% 4.50% Portfolio turnover rate...................... 84.2% 84.3% 114.0% 119.3% 90.2% 84.2% 84.3% 114.0% Net assets, end of period (000 omitted)...... $34,951 $43,060 $47,834 $54,755 $56,388 $3,256 $4,471 $5,849 FIXED INCOME FUND ------------------------------------------------------------------------------- CLASS B CLASS C CLASS D CLASS R ------------------- ------------ --------------------------- ------------ YEAR ENDED OCTOBER 31, ERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED ------------------- OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 1997 1996(1) 2000(3) 2000 1999(2) 2000(4) ------ ------- ------------ ------------ ------------ ------------ Net asset value, beginning of period......... $10.07 $10.22 $ 9.69 $ 9.83 $ 10.09 $ 9.71 Net investment income........................ 0.50 0.34 0.25 0.55 0.26 0.14 Net realized and unrealized gain (loss) on investments................................. 0.09 (0.15) 0.12 (0.02) (0.26) 0.10 ------ ------ ------ ------- -------- ------ Net increase (decrease) in net asset value from operations............................. 0.59 0.19 0.37 0.53 -- 0.24 ------ ------ ------ ------- -------- ------ Dividends from net investment income......... (0.50) (0.34) (0.25) (0.55) (0.26) (0.14) Distributions from capital gains............. -- -- -- -- -- -- ------ ------ ------ ------- -------- ------ Total distributions.......................... (0.50) (0.34) (0.25) (0.55) (0.26) (0.14) ------ ------ ------ ------- -------- ------ Net asset value, end of period............... $10.16 $10.07 $ 9.81 $ 9.81 $ 9.83 $ 9.81 ------ ------ ------ ------- -------- ------ ------ ------ ------ ------- -------- ------ Total return'D''D'........................... 6.10% 2.23% 3.86% 5.62% 0.04% 2.44% Ratio of expenses to average net assets(5)... 1.70% 1.70%'D' 1.70%'D' 0.70% 0.70%'D' 0.99%'D' Ratio of net investment income to average net assets(5)................................... 4.99% 5.03%'D' 4.08%'D' 5.67% 6.30%'D' 6.51%'D' Portfolio turnover rate...................... 119.3% 90.2% 84.2% 84.2% 84.3% 84.2% Net assets, end of period (000 omitted)...... $3,375 $1,629 $ --(6) $95,471 $116,424 $ 22 - ------------------------ 'D' Annualized. 'D''D' Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total return. Total return calculated for a period of less than one year is not annualized. Total return for the year ended October 31, 1999 excluding the effect of the contribution from the Subadvisor for realized and unrealized securities losses was 36.59% and 35.49% for the Developing Markets Fund Class A and B shares, respectively. * Based on average shares outstanding. (1) The Fixed Income Fund commenced offering Class B shares on February 28, 1996. (2) The Fixed Income Fund commenced offering Class D shares on April 30, 1999. (3) The Funds commenced offering Class C shares on February 28, 2000. (4) The Funds commenced offering Class R shares on August 1, 2000. (5) Net of voluntary assumption by Advisor and Subadvisor of expenses, expressed as a percentage of average net assets, as follows: Developing Markets Fund Class A and Class B shares, .72%, .76%, .61%, .34% and .54% for the years ended 10/31/00, 99, 98, 97 and 96, respectively; Developing Markets Fund Class C shares, .72% (annualized) for the period 02/28/00 through 10/31/00; Developing Markets Fund Class R shares, .72% (annualized) for the period 08/01/00 through 10/31/00; Fixed Income Fund Class A shares, .13%, .14%, .30%, .30% and .34% for the years ended 10/31/00, 99, 98, 97 and 96, respectively; Fixed Income Fund Class B shares, .13%, .14%, .30%, and .30% for the years ended 10/31/00, 99, 98 and 97, respectively, and .34% (annualized) for the period 02/28/96 through 10/31/96; Fixed Income Fund Class C shares, .13% (annualized) for the period 02/28/00 through 10/31/00; Fixed Income Fund Class D shares, .13% for the year ended 10/31/00 and .14% (annualized) for the period 04/30/99 through 10/31/99; and Fixed Income Fund Class R shares, .13% (annualized) for the period 08/01/00 through 10/31/00. (6) Amount rounds to less than $1,000. FINANCIAL HIGHLIGHTS (continued) - -------------------------------------------------------------------------------- The table below sets forth financial data for a share of beneficial interest outstanding throughout the periods presented. This information has been derived from information provided in the financial statements. MUNICIPAL TRUST FUND ----------------------------------------------- CLASS A ----------------------------------------------- YEAR ENDED OCTOBER 31, ----------------------------------------------- 2000 1999 1998 1997 1996 ------- ------- ------- ------- ------- Net asset value, beginning of period...... $ 10.05 $ 10.53 $ 10.29 $ 10.01 $ 10.06 Net investment income..................... 0.39 0.38 0.38 0.45 0.43 Net realized and unrealized gain (loss) on investments.............................. 0.12 (0.48) 0.24 0.28 (0.05) ------- ------- ------- ------- ------- Net increase (decrease) in net asset value from operations.......................... 0.51 (0.10) 0.62 0.73 0.38 ------- ------- ------- ------- ------- Dividends from net investment income...... (0.39) (0.38) (0.38) (0.45) (0.43) Distributions from capital gains.......... (0.08) -- -- -- -- ------- ------- ------- ------- ------- Total distributions....................... (0.47) (0.38) (0.38) (0.45) (0.43) ------- ------- ------- ------- ------- Net asset value, end of period............ $ 10.09 $ 10.05 $ 10.53 $ 10.29 $ 10.01 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Total return'D'D'......................... 5.20% (1.02)% 6.28% 7.37% 3.83% Ratio of expenses to average net assets(6)................................ 0.99% 1.00% 1.00% 0.70% 0.80% Ratio of net investment income to average net assets(6)............................ 3.92% 3.65% 3.78% 4.38% 4.26% Portfolio turnover rate................... 17.7% 76.5% 51.5% 84.3% 79.3% Net assets, end of period (000 omitted)... $22,565 $29,912 $44,306 $35,878 $38,794 MUNICIPAL TRUST FUND ------------------------------------------------------------------------- CLASS B CLASS C CLASS R ------------------------------------------- ------------ ------------ YEAR ENDED OCTOBER 31, PERIOD ENDED PERIOD ENDED ------------------------------------------- OCTOBER 31, OCTOBER 31, 2000 1999 1998 1997 1996(1) 2000(3) 2000(5) ------ ------ ------ ------ ------- ------------ ------------ Net asset value, beginning of period...... $10.05 $10.53 $10.29 $10.01 $10.12 $ 9.88 $10.04 Net investment income..................... 0.32 0.31 0.32 0.37 0.25 0.19 0.10 Net realized and unrealized gain (loss) on investments.............................. 0.12 (0.48) 0.24 0.28 (0.11) 0.17 0.05 ------ ------ ------ ------ ------ ------ ------ Net increase (decrease) in net asset value from operations.......................... 0.44 (0.17) 0.56 0.65 0.14 0.36 0.15 ------ ------ ------ ------ ------ ------ ------ Dividends from net investment income...... (0.32) (0.31) (0.32) (0.37) (0.25) (0.19) (0.10) Distributions from capital gains.......... (0.08) -- -- -- -- -- -- ------ ------ ------ ------ ------ ------ ------ Total distributions....................... (0.40) (0.31) (0.32) (0.37) (0.25) (0.19) (0.10) ------ ------ ------ ------ ------ ------ ------ Net asset value, end of period............ $10.09 $10.05 $10.53 $10.29 $10.01 $10.05 $10.09 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total return'D'D'......................... 4.45% (1.71)% 5.54% 6.62% 1.42% 3.65% 1.46% Ratio of expenses to average net assets(6)................................ 1.70% 1.70% 1.70% 1.40% 1.23%'D' 1.70%'D' 0.99%'D' Ratio of net investment income to average net assets(6)............................ 3.21% 2.94% 3.04% 3.66% 3.81%'D' 2.91%'D' 4.01%'D' Portfolio turnover rate................... 17.7% 76.5% 51.5% 84.3% 79.3% 17.7% 17.7% Net assets, end of period (000 omitted)... $1,082 $1,044 $1,430 $ 546 $ 489 $ --(7) $ 26 HIGH INCOME FUND --------------------------------------------------------- CLASS A CLASS B --------------------------- --------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2000 1999(2) 2000 1999(2) ------------ ------------ ------------ ------------ Net asset value, beginning of period...... $ 9.66 $ 10.00 $ 9.66 $10.00 Net investment income..................... 0.88 0.56 0.81 0.50 Net realized and unrealized gain (loss) on investments.............................. (0.86) (0.34) (0.86) (0.34) ------- ------- ------ ------ Net increase (decrease) in net asset value from operations.......................... 0.02 0.22 (0.05) 0.16 ------- ------- ------ ------ Dividends from net investment income...... (0.88) (0.56) (0.81) (0.50) Distributions from capital gains.......... (0.07) -- (0.07) -- ------- ------- ------ ------ Total distributions....................... (0.95) (0.56) (0.88) (0.50) ------- ------- ------ ------ Net asset value, end of period............ $ 8.73 $ 9.66 $ 8.73 $ 9.66 ------- ------- ------ ------ ------- ------- ------ ------ Total return'D'D'......................... (0.06)% 2.19% (0.81)% 1.60% Ratio of expenses to average net assets(6)................................ 1.10% 1.10%'D' 1.85% 1.85%'D' Ratio of net investment income to average net assets(6)............................ 9.35% 8.61%'D' 8.60% 7.83%'D' Portfolio turnover rate................... 43.9% 188.4% 43.9% 188.4% Net assets, end of period (000 omitted)... $10,709 $10,488 $1,313 $1,447 HIGH INCOME FUND --------------------------------------------------------- CLASS C CLASS D CLASS R ------------ --------------------------- ------------ PERIOD ENDED YEAR ENDED PERIOD ENDED PERIOD ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2000(3) 2000 1999(4) 2000(5) ------------ ------------ ------------ ------------ Net asset value, beginning of period...... $ 9.57 $ 9.65 $10.23 $ 9.21 Net investment income..................... 0.53 0.90 0.41 0.21 Net realized and unrealized gain (loss) on investments.............................. (0.84) (0.85) (0.58) (0.48) ------ ------ ------ ------ Net increase (decrease) in net asset value from operations.......................... (0.31) 0.05 (0.17) (0.27) ------ ------ ------ ------ Dividends from net investment income...... (0.53) (0.90) (0.41) (0.21) Distributions from capital gains.......... -- (0.07) -- -- ------ ------ ------ ------ Total distributions....................... (0.53) (0.97) (0.41) (0.21) ------ ------ ------ ------ Net asset value, end of period............ $ 8.73 $ 8.73 $ 9.65 $ 8.73 ------ ------ ------ ------ ------ ------ ------ ------ Total return'D'D'......................... (3.31)% 0.29% (1.63)% (2.98) Ratio of expenses to average net assets(6)................................ 1.85%'D' 0.85% 0.85%'D' 1.10%'D' Ratio of net investment income to average net assets(6)............................ 7.57%'D' 9.62% 9.36%'D' 9.14%'D' Portfolio turnover rate................... 43.9% 43.9% 188.4% 43.9% Net assets, end of period (000 omitted)... $ 78 $1,504 $ 926 $ 141 - ------------------------ 'D' Annualized. 'D'D' Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total return. Total return calculated for a period of less than one year is not annualized. * Based on average shares outstanding. (1) The Municipal Trust Fund commenced offering Class B shares on February 28, 1996. (2) The High Income Fund commenced operations on March 8, 1999. (3) The Funds commenced offering Class C shares on February 28, 2000. (4) The High Income Fund commenced offering Class D shares on May 13, 1999. (5) The Funds commenced offering Class R shares on August 1, 2000. (6) Net of voluntary assumption by Advisor of expenses, expressed as a percentage of average net assets, as follows: Municipal Trust Fund Class A, .53%, .42%, .41%, .74% and .64% for the years ended 10/31/00, 99, 98, 97 and 96, respectively; Municipal Trust Fund Class B, .53%, .42%, .41% and .74% for the years ended 10/31/00, 99, 98 and 97, respectively, and .64% (annualized) for the period 02/28/96 through 10/31/96; Municipal Trust Fund Class C shares, .53% (annualized) for the period 02/28/00 through 10/31/00; Municipal Trust Fund Class R shares, .53% (annualized) for the period 08/01/00 through 10/31/00; High Income Fund Class A shares, 1.58% for the year ended 10/31/00 and 1.43% (annualized) for the period 03/08/99 through 10/31/99; High Income Fund Class B shares, 1.58% for the year ended 10/31/00 and 1.43% (annualized) for the period 03/08/99 through 10/31/99; High Income Fund Class C shares, 1.58% (annualized) for the period 02/28/00 through 10/31/00; High Income Fund Class D shares, 1.58% for the year ended 10/31/00 and 1.43% (annualized) for the period 05/13/99 through 10/31/99; and High Income Fund Class R shares, 1.58% (annualized) for the period 08/01/00 through 10/31/00. (7) Amount rounds to less than $1,000. REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS - -------------------------------------------------------------------------------- Shareholders and Board of Trustees DLJ Focus Funds DLJ Opportunity Funds and DLJ Select Funds We have audited the accompanying statements of assets and liabilities, including the statements of investments, of DLJ Focus Funds (comprising, respectively, DLJ Core Equity Fund, DLJ Fixed Income Fund, DLJ Growth and Income Fund, DLJ Municipal Trust Fund and DLJ Small Company Value Fund), DLJ Select Funds (comprising, respectively, DLJ Strategic Growth Fund and DLJ Technology Fund) and DLJ High Income Fund, DLJ International Equity Fund and DLJ Developing Markets Fund (three of the funds comprising DLJ Opportunity Funds) as of October 31, 2000, and the related statements of operations and changes in net assets and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2000 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective Funds at October 31, 2000, and the results of their operations, the changes in their net assets and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States. ERNEST & YOUNG LLP New York, New York December 20, 2000 DLJ MUTUAL FUNDS -- TAX INFORMATION (unaudited) - -------------------------------------------------------------------------------- We are required by Subchapter M of the Internal Revenue Code of 1986 to advise you as to the federal tax status of distributions received by shareholders during the Funds' fiscal year ended October 31, 2000. Accordingly, we are advising you that the following distributions paid during the fiscal year by the Funds were derived from the following sources: ORDINARY INCOME DISTRIBUTIONS PER SHARE ----------------------- TAX ALTERNATIVE FROM FROM FROM EXEMPT MINIMUM TAX INVESTMENT SHORT-TERM LONG-TERM FUND INCOME* INCOME INCOME CAPITAL GAINS CAPITAL GAINS - ---- ------- ------ ------ ------------- ------------- DLJ Core Equity Fund -- Class A.............. $-- $-- $-- $-- $1.610 DLJ Core Equity Fund -- Class B.............. -- -- -- -- 1.610 DLJ Core Equity Fund -- Class D.............. -- -- -- -- 1.610 DLJ Growth and Income Fund -- Class A........ -- -- 0.121 -- 0.685 DLJ Growth and Income Fund -- Class B........ -- -- -- -- 0.685 DLJ Growth and Income Fund -- Class C........ -- -- 0.031 -- -- DLJ Growth and Income Fund -- Class D........ -- -- 0.179 -- 0.685 DLJ Growth and Income Fund -- Class R........ -- -- 0.044 -- -- DLJ Small Company Value Fund -- Class A...... -- -- 0.040 0.595 1.450 DLJ Small Company Value Fund -- Class B...... -- -- -- 0.595 1.450 DLJ International Equity Fund -- Class A..... -- -- -- 0.185 1.590 DLJ International Equity Fund -- Class B..... -- -- -- 0.185 1.590 DLJ International Equity Fund -- Class D..... -- -- -- 0.185 1.590 DLJ Fixed Income Fund -- Class A............. -- -- 0.524 -- -- DLJ Fixed Income Fund -- Class B............. -- -- 0.454 -- -- DLJ Fixed Income Fund -- Class C............. -- -- 0.249 -- -- DLJ Fixed Income Fund -- Class D............. -- -- 0.553 -- -- DLJ Fixed Income Fund -- Class R............. -- -- 0.136 -- -- DLJ Municipal Trust Fund -- Class A.......... 0.335 0.053 0.004 -- 0.080 DLJ Municipal Trust Fund -- Class B.......... 0.274 0.044 0.003 -- 0.080 DLJ Municipal Trust Fund -- Class C.......... 0.160 0.025 0.002 -- -- DLJ Municipal Trust Fund -- Class R.......... 0.082 0.013 0.001 -- -- DLJ High Income Fund -- Class A.............. -- -- 0.879 0.070 -- DLJ High Income Fund -- Class B.............. -- -- 0.808 0.070 -- DLJ High Income Fund -- Class C.............. -- -- 0.533 -- -- DLJ High Income Fund -- Class D.............. -- -- 0.902 0.070 -- DLJ High Income Fund -- Class R.............. -- -- 0.210 -- -- * Federally exempt interest dividends. Because each Fund's fiscal year is not the calendar year, calendar year taxpayers should use the dollar amounts and the nature of those amounts referenced on Form 1099-Div which will be mailed to you in late January, 2001. Included with your 1099-Div will be a notice identifying the percentage of ordinary dividends paid in 2000 which were derived from Federal obligations. In addition, for use by our DLJ Municipal Trust shareholders, a schedule referencing the source of federal tax exempt income identified by state will be provided. Shareholders are advised to consult their own tax advisors with respect to the tax consequences of their investments in each Fund. TRUSTEES G. Moffett Cochran Robert E. Fischer Stig Host Martin Jaffe Wilmot H. Kidd, III Peter F. Krogh John J. Sheehan OFFICERS G. Moffett Cochran, Chairman and President Martin Jaffe, Vice President, Treasurer and Secretary William Butler, Vice President Richard J. Hanlon, Vice President Cathy A. Jameson, Vice President Brian A. Kammerer, Vice President Marybeth B. Leithead, Vice President Luisa Michel, Vice President Hugh M. Neuburger, Vice President Roger W. Vogel, Vice President INVESTMENT ADVISOR Credit Suisse Asset Management, LLC An Investment Management Subsidiary of Credit Suisse Group 277 Park Avenue, New York, NY 10172 CUSTODIAN Citibank, N.A. 111 Wall Street, New York, NY 10043 TRANSFER AGENT PFPC, Inc. P.O. Box 61787 (211 South Gulph Road) King of Prussia, PA 19406-0903 DISTRIBUTOR Credit Suisse Asset Management Securities, Inc. 277 Park Avenue, New York, NY 10172 INDEPENDENT AUDITORS Ernst & Young LLP 787 Seventh Avenue, New York, NY 10019 LEGAL COUNSEL Sullivan & Cromwell 125 Broad Street, New York, NY 10004 This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus, which should be read carefully before investing. [DLJ LOGO] ANNUAL combined 10/00 277 Park Avenue, New York, NY 10172 STATEMENT OF DIFFERENCES ------------------------ The dagger symbol shall be expressed as .................................. 'D'