UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-4964
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Credit Suisse New York Municipal Fund
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(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
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(Address of Principal Executive Offices) (Zip Code)
J. Kevin Gao, Esq.
Credit Suisse New York Municipal Fund
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: October 31
Date of reporting period: November 1, 2004 to April 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
CREDIT | ASSET
SUISSE | MANAGEMENT
CREDIT SUISSE FUNDS
Semiannual Report
April 30, 2005
(unaudited)
o CREDIT SUISSE
NEW YORK MUNICIPAL FUND
The Fund's investment objectives, risks, charges and expenses (which should be
considered carefully before investing), and more complete information about the
Fund, are provided in the Prospectus, which should be read carefully before
investing. You may obtain additional copies by calling 800-927-2874 or by
writing to Credit Suisse Funds, P.O. Box 55030, Boston, MA 02205-5030.
Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466
Lexington Ave., New York, NY 10017-3140. Credit Suisse Funds are advised by
Credit Suisse Asset Management, LLC.
Investors in the Credit Suisse Funds should be aware that they may be eligible
to purchase Common Class and/or Advisor Class shares (where offered) directly or
through certain intermediaries. Such shares are not subject to a sales charge
but may be subject to an ongoing service and distribution fee of up to 0.50% of
average daily net assets. Investors in the Credit Suisse Funds should also be
aware that they may be eligible for a reduction or waiver of the sales charge
with respect to Class A, B or C shares. For more information, please review the
relevant prospectuses or consult your financial representative.
The views of the Fund's management are as of the date of the letter and the Fund
holdings described in this document are as of April 30, 2005; these views and
Fund holdings may have changed subsequent to these dates. Nothing in this
document is a recommendation to purchase or sell securities.
Fund shares are not deposits or other obligations of Credit Suisse Asset
Management, LLC ("CSAM") or any affiliate, are not FDIC-insured and are not
guaranteed by CSAM or any affiliate. Fund investments are subject to investment
risks, including loss of your investment.
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT
April 30, 2005 (unaudited)
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May 25, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/1/04 - 04/30/05
FUND & BENCHMARKS PERFORMANCE
Common1 (0.03)%
Class A1,2 (0.25)%
Lehman Brothers 5 Year Municipal Bond Index3 0.24%
For the 6 months ended April 30, 2005, the Common Class and Class A shares
(without sales charge) of the Fund underperformed their benchmark, the Lehman
Brothers 5 Year Municipal Bond Index, by 27 and 49 basis points, respectively.
MARKET OVERVIEW: RATES RISE BUT MUNICIPAL DEMAND REMAINS MODEST
In our view, performance in New York municipal securities over the course of
the Fund's fiscal half-year was consistent with the market for municipal
securities as a whole. The major factor driving activity in the period was the
Federal Open Market Committee's gradualist approach to monetary tightening,
which brought the Fed funds rate up 100 basis points, from 1.75% to 2.75%. In
support of these measured increases, the central bank cited improvement in
labor-market conditions and growth in total output, alongside balanced inflation
risks. In turn, short-term interest rates followed the Fed higher, but
longer-term rates actually declined, thanks to strong foreign demand for longer
duration US assets. This resulted in a significant flattening of the yield
curve, as the spread between 2-year and 10-year Treasuries dropped from 150 to
55 basis points.
Despite the repeated rate hikes, bond yields still remain at near-historic
lows. In our view, this has influenced bond investors with a growing appetite
for risk to seek out higher yielding instruments. It was only in mid-March, when
General Motors announced an earnings shortfall and the company's debt was later
downgraded, that a new risk premium was priced into the bond market, prompting a
rally in Treasuries. Taken together, these factors tended to create a difficult
environment for municipal securities during most of the Fund's fiscal half-year.
However, an auspicious development within the municipal bond market was the
continued economic recovery among states and municipalities, leading to higher
tax revenues. This in turn led to a decline in credit risk and improved
financial flexibility as concerns about state and local tax-supported bonds
abated. New York made impressive financial progress in this regard. Thanks to
sizable revenue increases, New York City is expected to end fiscal year 2005
with a surplus, although New York State still struggles with its fiscal
position.
1
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
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The city was upgraded by Moody's from A to A1, while the outlook on the state
remains stable.
STRATEGIC REVIEW: A CONSERVATIVE EMPHASIS ON HIGH QUALITY SECURITIES
We attribute the Fund's underperformance of its Lehman Brothers 5 Year
Municipal Bond Index benchmark in the fiscal year to our conservative emphasis,
which is consistent with the Fund's strategic objective of capital preservation.
Given our expectation that interest rates would rise, we kept the portfolio's
overall duration shorter than the benchmark to potentially help shield it from
the prospect of rising rates. In addition, our underweight in lower-rated
credits (i.e., those rated BBB and A) relative to the Index also hindered the
Fund's performance, as these riskier issues fared better during the fiscal
half-year. The composition of the portfolio is largely unchanged, though we have
reduced our exposure to bonds issued by Puerto Rico, the spreads of which have
continued to widen due to concerns over their creditworthiness.
Lori A. Cohane Frank J. Biondo
Co-Portfolio Manager Co-Portfolio Manager
The Fund's dividends are derived from interest on New York municipal
obligations that are exempt from regular federal income taxes and from New York
State and New York City personal income taxes. Some income from the Fund that is
exempt from regular federal taxes may be subject to state and City taxes, and
some income may be subject to the federal alternative minimum tax. This Fund may
be more volatile than a more geographically diverse municipal fund. The default
or credit-rating downgrade of issuers of New York municipal securities could
affect the market values and marketability of all municipal securities, thereby
hurting the Fund's performance. Furthermore, if the Fund has difficulty finding
attractive New York municipal securities to purchase, the Fund may purchase
securities that pay interest not exempt from New York taxes.
In addition to historical information, this report contains forward-looking
statements, which may concern, among other things, domestic and foreign markets,
industry and economic trends and developments and government regulation and
their potential impact on the Fund's investment portfolio. These statements are
subject to risks and uncertainties and actual trends, developments and
regulations in the future and their impact on the Fund could be materially
different from those projected, anticipated or implied. The Fund has no
obligation to update or revise forward-looking statements.
2
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
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AVERAGE ANNUAL RETURNS AS OF MARCH 31, 20051
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SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class (0.09)% 4.78% 4.70% 5.29% 4/1/87
Class A Without
Sales Charge (0.45)% -- -- 2.79% 11/30/01
Class A With Maximum
Sales Charge (3.45)% -- -- 1.85% 11/30/01
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 20051
--------------------------------------------
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 2.53% 5.08% 4.77% 5.32% 4/1/87
Class A Without
Sales Charge 2.15% -- -- 3.29% 11/30/01
Class A With Maximum
Sales Charge (0.89)% -- -- 2.37% 11/30/01
Returns represent past performance and include change in share price and
reinvestment of dividends and capital gains. PAST PERFORMANCE CANNOT GUARANTEE
FUTURE RESULTS. The current performance of the Fund may be lower or higher than
the figures shown. Returns and share price will fluctuate, and redemption value
may be less than original cost. The performance results do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. Performance information current to the most recent
month-end is available at www.csam.com/us.
- ----------
1 Fee waivers and/or expense reimbursements reduced expenses for the Fund,
without which performance would be lower. Waivers and/or reimbursements may
be discontinued at any time.
2 Total return for Class A shares for the reporting period based on offering
price (with maximum sales charge of 3.00%) was down 3.20%.
3 The Lehman Brothers 5 Year Municipal Bond Index is an unmanaged index (with
no defined investment objective) of municipal bonds with maturities of
between four and six years, and is calculated by Lehman Brothers, Inc.
Investors cannot invest directly in an index.
3
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
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INFORMATION ABOUT YOUR FUND'S EXPENSES
As an investor of the Fund, you incur two types of costs: ongoing expenses
and transaction costs. Ongoing expenses include management fees, distribution
and service (12b-1) fees and other Fund expenses. Examples of transaction costs
include sales charges (loads), redemption fees and account maintenance fees,
which are not shown in this section and which would result in higher total
expenses. The following table is intended to help you understand your ongoing
expenses of investing in the Fund and to help you compare these expenses with
the ongoing expenses of investing in other mutual funds. The table is based on
an investment of $1,000 made at the beginning of the six month period ended
April 30, 2005.
The table illustrates your Fund's expenses in two ways:
o ACTUAL FUND RETURN. This helps you estimate the actual dollar amount of
ongoing expenses paid on a $1,000 investment in the Fund using the Fund's
actual return during the period. To estimate the expenses you paid over
the period, simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the "Expenses Paid per $1,000" line under the share class
you hold.
o HYPOTHETICAL 5% FUND RETURN. This helps you to compare your Fund's ongoing
expenses with those of other mutual funds using the Fund's actual expense
ratio and a hypothetical rate of return of 5% per year before expenses.
Examples using a 5% hypothetical fund return may be found in the
shareholder reports of other mutual funds. The hypothetical account values
and expenses may not be used to estimate the actual ending account balance
or expenses you paid for the period.
Please note that the expenses shown in these tables are meant to highlight
your ongoing expenses only and do not reflect any transaction costs, such as
sales charges (loads) or redemption fees. If these transaction costs had been
included, your costs would have been higher. The "Expenses Paid per $1,000" line
of the tables is useful in comparing ongoing expenses only and will not help you
determine the relative total expenses of owning different funds.
4
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
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EXPENSES AND VALUE OF A $1,000 INVESTMENT
FOR THE SIX MONTH PERIOD ENDED APRIL 30, 2005
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COMMON
ACTUAL FUND RETURN CLASS CLASS A
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Beginning Account Value 11/1/04 $1,000.00 $1,000.00
Ending Account Value 4/30/05 $ 999.70 $ 997.50
Expenses Paid per $1,000* $ 2.97 $ 4.21
HYPOTHETICAL 5% FUND RETURN
Beginning Account Value 11/1/04 $1,000.00 $1,000.00
Ending Account Value 4/30/05 $1,021.82 $1,020.58
Expenses Paid per $1,000* $ 3.01 $ 4.26
COMMON
CLASS CLASS A
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ANNUALIZED EXPENSE RATIOS* 0.60% 0.85%
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* Expenses are equal to the Fund's annualized expense ratio for each share
class, multiplied by the average account value over the period, multiplied
by the number of days in the most recent fiscal half year period, then
divided by 365.
The "Expenses Paid per $1,000" and the "Annualized Expense Ratios" in the
tables are based on actual expenses paid by the Fund during the period, net
of fee waivers and/or expense reimbursements. If those fee waivers and/or
expense reimbursements had not been in effect, the Fund's actual expenses
would have been higher.
For more information, please refer to the Fund's prospectus.
5
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
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CREDIT QUALITY BREAKDOWN*
RATINGS
S&P
- ----------------------------------------------------
AAA 62.2%
AA 18.6%
A 13.8%
BBB 5.1%
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Subtotal 99.7%
Short-Term Investments 0.3%
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Total 100.0%
======
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* Expressed as a percentage of total investments and may vary over time.
6
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SCHEDULE OF INVESTMENTS
April 30, 2005 (unaudited)
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Par Ratings+
(000) (S&P/Moody's) Maturity Rate% Value
----- ------------ --------- ------ -----------
MUNICIPAL BONDS (98.5%)
New York (95.4%)
$1,000 Brookhaven NY, General Obligation Unlimited
(MBIA Insured) (Non-Callable) (AAA , Aaa) 08/15/14 5.000 $ 1,108,870
1,100 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bonds, Series A (Non-Callable) (AAA , Baa1) 07/01/05 5.000 1,104,708
1,000 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bonds, Series A (Non-Callable) (AAA , Baa1) 07/01/07 5.250 1,051,570
1,000 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bonds, Series C-1 (Non-Callable) (AAA , Aaa) 07/01/05 6.000 1,005,980
200 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bonds, Series E
(AMBAC Insured) (Callable 07/01/07 @ $101.00) (AAA , Aaa) 07/01/11 5.000 212,104
600 Metropolitan Transportation Authority, NY, Dedicated
Tax Fund, Series A (FGIC Insured) (AAA , Aaa) 04/01/13 5.600 670,734
1,500 Metropolitan Transportation Authority, NY,
Transportation Facilities Revenue Bonds, Service
Contract, Series R (Non-Callable) (AAA , Aaa) 07/01/07 5.500 1,584,555
695 Metropolitan Transportation Authority, Transport
Facilities Revenue Bonds, Prerefunded, Series C
(FSA Insured) (Callable 07/01/12 @ $100.00) (AAA , Aaa) 07/01/14 5.125 772,805
1,000 Municipal Assistance Corp., New York City, Revenue
Bonds, Series H (AAA , Aaa) 07/01/07 6.250 1,071,400
1,000 Municipal Assistance Corp., New York City, Revenue
Bonds, Series M (AAA , Aaa) 07/01/08 5.500 1,079,000
1,500 Municipal Assistance Corp., New York City, Revenue
Bonds, Series P (AAA , Aaa) 07/01/08 5.000 1,595,925
1,000 Nassau County New York Interim Finance, Revenue
Bonds, Series A (AAA , Aaa) 11/15/09 5.000 1,082,060
400 New York City, Educational Construction Fund,
Revenue Bonds, Series A (MBIA Insured)
(Non-Callable) (AAA , Aaa) 04/01/12 5.000 437,748
660 New York City, General Obligation Unlimited,
Prerefunded, Series J
(Callable 08/01/07 @ $101.00) (A , A1) 08/01/11 6.125 713,176
1,050 New York City, General Obligation Unlimited, Series D (A , A2) 08/01/07 5.750 1,113,598
1,000 New York City, General Obligation Unlimited, Series F (A , A2) 08/01/09 5.000 1,070,830
1,000 New York City, General Obligation Unlimited, Series H
(Callable 03/15/11 @ $101.00) (A , A2) 03/15/13 5.750 1,117,160
1,000 New York City, General Obligation Unlimited, Series I
(Non-Callable) (A , A2) 08/01/11 5.000 1,082,280
800 New York City, General Obligation Unlimited,
Subseries E5 (JP Morgan Chase Bank LOC) # (AA- , Aa2) 08/01/17 2.920 800,000
340 New York City, General Obligation Unlimited,
Unrefunded Balance, Series J
(Callable 08/01/07 @ $101.00) (A , A1) 08/01/11 6.125 363,657
1,000 New York City, Industrial Development Agency,
YMCA Greater NY Project (BBB+ , Baa1) 08/01/06 6.000 1,036,450
1,000 New York City, Municipal Water Finance Authority
Revenue Bonds, Series D (AA+ , Aa2) 06/15/15 5.250 1,098,590
110 New York City, Transitional Finance Authority,
Prerefunded Future Tax 2004, Series C (Non-Callable) (AAA , Aa1) 02/01/08 5.500 117,713
See Accompanying Notes to Financial Statements.
7
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
Par Ratings+
(000) (S&P/Moody's) Maturity Rate% Value
----- ------------ --------- ------ -----------
MUNICIPAL BONDS
New York
$ 465 New York City, Transitional Finance Authority,
Prerefunded Future Tax, Series B (AAA , Aa1) 02/01/08 5.500 $ 497,606
205 New York City, Transitional Finance Authority,
Prerefunded Future Tax, Series C (AAA , Aa1) 02/01/08 5.500 219,375
1,000 New York City, Transitional Finance Authority,
Refunding Future Tax Secured, Series B
(Callable 02/01/11 @ $100.00) # (AAA , Aa1) 02/01/29 5.250 1,088,110
785 New York City, Transitional Finance Authority,
Unrefunded Balance, Future Tax 2004,
Series C (Non-Callable) (AAA , Aa1) 02/01/08 5.500 839,330
650 New York City, Transitional Finance Authority,
Unrefunded Future Tax, Series B (AAA , Aa1) 02/01/08 5.500 694,987
520 New York State Dormitory Authority, Consolidated
City University Systems, Revenue Bonds, Series A (AA- , A2) 07/01/05 5.700 522,626
1,000 New York State Dormitory Authority, Lenox Hill
Hospital Obligation Group, Revenue Bonds (BBB+ , Baa2) 07/01/09 5.250 1,061,750
1,200 New York State Dormitory Authority, New York
University, Revenue Bonds, Series A (FGIC Insured) (AAA , Aaa) 07/01/15 5.000 1,318,872
1,000 New York State Dormitory Authority, State University
Educational Facilities Revenue Bonds, Series B
(Callable 05/15/08 @ $101.00) (AA- , A2) 05/15/09 5.250 1,079,430
500 New York State Dormitory Authority, Yeshiva
University, Revenue Bonds (AMBAC Insured)
(Non-Callable) (AAA , Aaa) 07/01/14 5.250 563,725
520 New York State Environmental Facilities Corp.,
Clean Water & Drinking Revenue Bonds Revolving
Funds, Series A (Non-Callable) (AAA , Aaa) 04/15/10 4.250 546,712
1,125 New York State Local Government Assistance Corp.,
Revenue Bonds, Series A (AAA , Aaa) 04/01/06 6.000 1,158,401
1,000 New York State Local Government Assistance Corp.,
Revenue Bonds, Series A (Non-Callable) (AA , A1) 04/01/07 6.000 1,058,590
505 New York State Thruway Authority, General Revenue
Bonds, Refunding, Series E (MBIA Insured)
(Callable 01/01/08 @ $101.00) (AAA , Aaa) 01/01/25 5.000 526,765
325 New York State Thruway Authority, General Revenue
Bonds, Series F (AMBAC Insured)
(Callable 01/01/15 @ $100.00) (AAA , Aaa) 01/01/18 5.000 354,517
800 New York State Urban Development Corp.,
Correctional & Youth Facilities Revenue Bonds,
Series A (AA- , A2) 01/01/17 5.000 860,152
1,000 New York State Urban Development Corp.,
Correctional Facilities Service Contract Revenue
Bonds, Series C (Callable 01/01/09 @ $101.00) (AAA , Aaa) 01/01/13 6.000 1,115,640
1,000 New York State Urban Development Corp., State
Facilities Revenue Bonds (AA- , A2) 04/01/11 5.750 1,125,350
1,000 Rockland County New York General Obligation Bonds
(Callable 10/15/09 @ $101.00) (AA- , A1) 10/15/14 5.500 1,105,490
1,420 Triborough Bridge & Tunnel Authority, Revenue Bonds,
Series A (Callable 01/01/09 @ $101.00) (AAA , Aa3) 01/01/18 5.125 1,546,267
See Accompanying Notes to Financial Statements.
8
CREDIT SUISSE NEW YORK MUNICIPAL FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
Par Ratings+
(000) (S&P/Moody's) Maturity Rate% Value
----- ------------ --------- ------ -----------
MUNICIPAL BONDS
NEW YORK
$1,000 Triborough Bridge & Tunnel Authority, Revenue
Bonds, Series B (AAA , Aa3) 01/01/09 5.500 $ 1,089,590
-----------
TOTAL NEW YORK (Cost $38,414,648) 39,664,198
-----------
PUERTO RICO (3.1%)
$1,000 Puerto Rico Commonwealth Aqueduct & Sewer
Authority, Revenue Bonds (MBIA Insured) (AAA , Aaa) 07/01/07 6.000 1,065,660
210 Puerto Rico Public Buildings Authority, Unrefunded
Balance, Government Facilities Revenue Bonds,
Series C (Non-Callable) (A- , Baa1) 07/01/05 5.000 210,844
-----------
TOTAL PUERTO RICO (Cost $1,233,021) 1,276,504
-----------
TOTAL MUNICIPAL BONDS (Cost $39,647,669) 40,940,702
-----------
Number of
Shares
----------
SHORT-TERM INVESTMENT (0.3%)
114,140 Blackrock Provident New York Money Fund
(Cost $114,140) 114,140
-----------
TOTAL INVESTMENTS AT VALUE (98.8%) (Cost $39,761,809) 41,054,842
OTHER ASSETS IN EXCESS OF LIABILITIES (1.2%) 500,699
-----------
NET ASSETS (100.0%) $41,555,541
===========
INVESTMENT ABBREVIATIONS
AMBAC = American Municipal Bond Assurance Corporation
FGIC = Financial Guaranty Insurance Company
FSA = Financial Security Assurance, Inc.
MBIA = Municipal Bond Investors Assurance Company
LOC = Letter of Credit
- --------------------------------------------------------------------------------
+ Credit ratings given by the Standard & Poor's Division of The McGraw-Hill
Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are
unaudited.
# Variable rate obligations - The interest rate shown is the rate as of April
30, 2005.
See Accompanying Notes to Financial Statements.
9
CREDIT SUISSE NEW YORK MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $39,761,809) (Note 2) $41,054,842
Cash 18
Interest receivable 551,966
Receivable for fund shares sold 4,820
Prepaid expenses 22,282
-----------
Total Assets 41,633,928
-----------
LIABILITIES
Advisory fee payable (Note 3) 1,350
Administrative services fee payable (Note 3) 16,718
Distribution fee payable (Note 3) 499
Dividend payable 8,496
Payable for fund shares redeemed 7,711
Trustees' fee payable 4,410
Other accrued expenses payable 39,203
-----------
Total Liabilities 78,387
-----------
NET ASSETS
Capital stock, $0.001 par value (Note 6) 4,076
Paid-in capital (Note 6) 39,898,673
Undistributed net investment income 65
Accumulated net realized gain on investments 359,694
Net unrealized appreciation from investments 1,293,033
-----------
Net Assets $41,555,541
===========
COMMON SHARES
Net assets $39,141,563
Shares outstanding 3,838,974
-----------
Net asset value, offering price, and redemption price per share $10.20
======
A SHARES
Net assets $ 2,413,978
Shares outstanding 236,581
-----------
Net asset value and redemption price per share $10.20
======
Maximum offering price per share (net asset value/(1-3.00%)) $10.52
======
See Accompanying Notes to Financial Statements.
10
CREDIT SUISSE NEW YORK MUNICIPAL FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
INTEREST INCOME (Note 2) $ 972,439
-----------
EXPENSES
Investment advisory fees (Note 3) 93,826
Administrative services fees (Note 3) 45,654
Distribution fees (Note 3)
Class A 2,615
Transfer agent fees (Note 3) 16,699
Legal fees 14,489
Registration fees 14,109
Audit fees 10,747
Insurance expense 10,544
Printing fees (Note 3) 8,260
Trustees' fees 4,063
Custodian fees 1,596
Commitment fees (Note 4) 688
Miscellaneous expense 3,946
-----------
Total expenses 227,236
Less: fees waived (Note 3) (84,234)
-----------
Net expenses 143,002
-----------
Net investment income 829,437
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 359,736
Net change in unrealized appreciation (depreciation) from investments $(1,226,793)
-----------
Net realized and unrealized loss from investments (867,057)
-----------
Net decrease in net assets resulting from operations $ (37,620)
===========
See Accompanying Notes to Financial Statements.
11
CREDIT SUISSE NEW YORK MUNICIPAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
APRIL 30, 2005 OCTOBER 31,
(UNAUDITED) 2004
------------ ------------
FROM OPERATIONS
Net investment income $ 829,437 $ 2,073,573
Net realized gain from investments 359,736 521,441
Net change in unrealized appreciation (depreciation) from investments (1,226,793) (1,261,144)
------------ ------------
Net increase (decrease) in net assets resulting from operations (37,620) 1,333,870
------------ ------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Common Class shares (794,734) (2,021,349)
Class A shares (34,630) (52,232)
Distributions from net realized gains
Common Class shares (502,733) (460,484)
Class A shares (18,690) (11,457)
------------ ------------
Net decrease in net assets resulting from dividends and distributions (1,350,787) (2,545,522)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 2,464,244 7,297,824
Reinvestment of dividends and distributions 1,267,866 2,355,158
Net asset value of shares redeemed (13,703,091) (20,485,093)
------------ ------------
Net decrease in net assets from capital share transactions (9,970,981) (10,832,111)
------------ ------------
Net decrease in net assets (11,359,388) (12,043,763)
NET ASSETS
Beginning of period 52,914,929 64,958,692
------------ ------------
End of period $ 41,555,541 $ 52,914,929
============ ============
Undistributed net investment income (loss) $ 65 $ (8)
============ ============
See Accompanying Notes to Financial Statements.
12
CREDIT SUISSE NEW YORK MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 --------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
-------------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 10.49 $ 10.68 $ 10.81 $ 10.74 $ 10.24 $ 10.04
-------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income 0.18 0.37 0.38 0.38(1) 0.43 0.44
Net gain (loss) on investments
(both realized and unrealized) (0.18) (0.11) 0.05 0.13 0.50 0.20
-------- -------- -------- -------- -------- --------
Total from investment operations (0.00) 0.26 0.43 0.51 0.93 0.64
-------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.18) (0.37) (0.38) (0.38) (0.43) (0.44)
Distributions from net realized gains (0.11) (0.08) (0.18) (0.06) -- --
-------- -------- -------- -------- -------- --------
Total dividends and distributions (0.29) (0.45) (0.56) (0.44) (0.43) (0.44)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.20 $ 10.49 $ 10.68 $ 10.81 $ 10.74 $ 10.24
======== ======== ======== ======== ======== ========
Total return2 (0.03)% 2.50% 4.05% 4.91% 9.20% 6.54%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 39,142 $ 51,055 $ 63,423 $ 83,434 $113,371 $ 74,948
Ratio of expenses to average net assets 0.60%3 0.60% 0.60% 0.60% 0.60% 0.62%
Ratio of net investment income to average
net assets 3.55%3 3.53% 3.51% 3.58% 4.03% 4.37%
Decrease reflected in above operating
expense ratios due to waivers 0.36%3 0.36% 0.26% 0.25% 0.16% 0.11%
Portfolio turnover rate 11% 27% 6% 34% 51% 29%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
Total returns for periods of less than one year are not annualized.
3 Annualized.
See Accompanying Notes to Financial Statements.
13
CREDIT SUISSE NEW YORK MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE YEAR PERIOD
ENDED ENDED OCTOBER 31, ENDED
APRIL 30, 2005 -------------------- OCTOBER 31,
(UNAUDITED) 2004 2003 20021
----------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 10.50 $ 10.70 $ 10.81 $ 10.61
-------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income 0.17 0.34 0.35 0.31(2)
Net gain (loss) on investments
(both realized and unrealized) (0.19) (0.12) 0.07 0.26
-------- -------- -------- --------
Total from investment operations (0.02) 0.22 0.42 0.57
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.17) (0.34) (0.35) (0.31)
Distributions from net realized gains (0.11) (0.08) (0.18) (0.06)
-------- -------- -------- --------
Total dividends and distributions (0.28) (0.42) (0.53) (0.37)
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.20 $ 10.50 $ 10.70 $ 10.81
======== ======== ======== ========
Total return3 (0.25)% 2.13% 3.97% 5.46%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 2,414 $ 1,860 $ 1,535 $ 140
Ratio of expenses to average net assets 0.85%4 0.85% 0.85% 0.85%4
Ratio of net investment income to average
net assets 3.30%4 3.28% 3.29% 3.21%4
Decrease reflected in above operating expense
ratios due to waivers 0.36%4 0.36% 0.26% 0.36%4
Portfolio turnover rate 11% 27% 6% 34%
- --------------------------------------------------------------------------------
1 For the period November 30, 2001 (inception date) through October 31, 2002.
2 Per share information is calculated using the average shares outstanding
method.
3 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
4 Annualized.
See Accompanying Notes to Financial Statements.
14
CREDIT SUISSE NEW YORK MUNICIPAL FUND
NOTE TO FINANCIAL STATEMENTS
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Credit Suisse New York Municipal Fund (the "Fund"), is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a
non-diversified open-end management investment company that seeks to maximize
current interest income exempt from regular federal income taxes, New York State
and New York City personal income taxes, to the extent consistent with prudent
investment management and the preservation of capital. The Fund was organized
under the laws of the Commonwealth of Massachusetts as a business trust on
December 23, 1986.
The Fund is authorized to offer two classes of shares: Common Class and
Class A shares. Each class of shares represents an equal pro rata interest in
the Fund, except that each bears different expenses which reflect the difference
in the range of services provided to them. The Fund's Common Class shares are
closed to new investors, other than (1) investors in employee retirement, stock,
bonus, pension or profit-sharing plans, (2) investment advisory clients of
Credit Suisse Asset Management, LLC ("CSAM"), (3) certain registered investment
advisers ("RIAs"), (4) certain broker-dealers and RIAs with clients
participating in comprehensive fee programs and (5) employees of CSAM or its
affiliates and current and former Directors or Trustees of funds advised by CSAM
or its affiliates. Any Common Class shareholder as of the close of business on
December 12, 2001 can continue to buy Common Class shares of the Fund and open
new accounts under the same Social Security number. Class A shares are sold
subject to a front-end sales charge of up to 3.00%.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
A) SECURITY VALUATION -- The net asset value of the Fund is determined
daily as of the close of regular trading on the New York Stock Exchange, Inc.
(the "Exchange") on each day the Exchange is open for business. Debt securities
with a remaining maturity greater than 60 days are valued in accordance with the
price supplied by a pricing service, which may use a matrix, formula or other
objective method that takes into consideration market indices, yield curves and
other specific adjustments. Debt obligations that will mature in 60 days or less
are valued on the basis of amortized cost, which approximates market value,
unless it is determined that using this method would not represent fair value.
The Fund's equity investments are valued at market value, which is generally
determined using the closing price on the exchange or market on which the
security is primarily traded at the
15
CREDIT SUISSE NEW YORK MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
time of valuation (the "Valuation Time"). If no sales are reported, equity
investments are generally valued at the most recent bid quotation as of the
Valuation Time or at the lowest asked quotation in the case of a short sale of
securities. Securities and other assets for which market quotations are not
readily available, or whose values have been materially affected by events
occurring before the Fund's Valuation Time but after the close of the
securities' primary markets, are valued at fair value as determined in good
faith by, or under the direction of, the Board of Trustees under procedures
established by the Board of Trustees. The Fund may utilize a service provided by
an independent third party which has been approved by the Board of Trustees to
fair value certain securities.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date. Certain expenses are
class-specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon the relative net asset value
of the outstanding shares of that class. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income are declared daily and paid monthly. Distributions of net
realized capital gains, if any, are declared and paid at least annually.
However, to the extent that a net realized capital gain can be reduced by a
capital loss carryforward, such gain will not be distributed. Income and capital
gain distributions are determined in accordance with federal income tax
regulations, which may differ from accounting principles generally accepted in
the United States of America ("GAAP").
D) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is
the Fund's intention to continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code of
1986, as amended, and to make the requisite distributions to its shareholders,
which will be sufficient to relieve it from federal income and excise taxes.
16
CREDIT SUISSE NEW YORK MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
E) USE OF ESTIMATES -- The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.
F) SHORT-TERM INVESTMENTS -- The Fund, together with other funds/portfolios
advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect,
wholly-owned subsidiary of Credit Suisse Group, pools available cash into either
a short-term variable rate time deposit issued by State Street Bank and Trust
Company ("SSB"), the Fund's custodian, or a money market fund advised by CSAM.
The short-term time deposit issued by SSB is a variable rate account classified
as a short-term investment.
G) OTHER -- The interest on New York municipal obligations is excluded from
gross income for federal income tax purposes and exempt from New York State and
New York City personal income taxes. A portion of income may be subject to state
and City taxes or the federal alternative minimum tax. This Fund may be riskier
than a more geographically diverse municipal fund.
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for the Fund. For its investment advisory
services, CSAM is entitled to receive a fee from the Fund at an annual rate of
0.40% of the Fund's average daily net assets. For the six months ended April 30,
2005, investment advisory fees earned and voluntarily waived for the Fund were
$93,826 and $84,234, respectively.
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as co-administrators to the Fund.
For its co-administrative services, CSAMSI currently receives a fee
calculated at an annual rate of 0.10% of the Fund's average daily net assets.
For the six months ended April 30, 2005, co-administrative services fees earned
by CSAMSI were $23,456.
For its co-administrative services, SSB receives a fee, exclusive of
out-of-pocket expenses calculated in total for all the Credit Suisse
funds/portfolios co-administered by SSB and allocated based upon relative
average net assets of
17
CREDIT SUISSE NEW YORK MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
each fund/portfolio subject to an annual minimum fee. For the six months ended
April 30, 2005, co-administrative services fees earned by SSB (including
out-of-pocket expenses) were $22,198.
In addition to serving as the Fund's co-administrator, CSAMSI currently
serves as distributor to the Fund's shares. Pursuant to a distribution plan
adopted by the Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. This fee is calculated at an annual rate of
0.25% of the average daily net assets of the Class A shares. Common Class shares
are not subject to distribution fees.
Certain brokers, dealers and financial representatives provide transfer
agent related services to the Fund, and receive compensation for these services
from CSAM. CSAM is then reimbursed by the Fund. For the six months ended April
30, 2005, the Fund reimbursed CSAM $11,428, which is included in the Fund's
transfer agent expense.
For the six months ended April 30, 2005, CSAMSI and its affiliates advised
the Fund that they retained $227 from commissions earned on the sale of the
Fund's Class A shares.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Fund to provide certain financial printing and fulfillment services. For the
six months ended April 30, 2005, Merrill was paid $5,123 for its services to the
Fund.
NOTE 4. LINE OF CREDIT
The Fund, together with other funds/portfolios advised by CSAM
(collectively, the "Participating Funds"), participates in a $75 million
committed, unsecured line of credit facility ("Credit Facility") for temporary
or emergency purposes with Deutsche Bank, A.G. as administrative agent and
syndication agent and SSB as operations agent. Under the terms of the Credit
Facility, the Participating Funds pay an aggregate commitment fee at a rate of
0.10% per annum on the average unused amount of the Credit Facility, which is
allocated among the Participating Funds in such manner as is determined by the
governing Boards of the Participating Funds. In addition, the Participating
Funds pay interest on borrowings at the Federal Funds rate plus 0.50%. At April
30, 2005 and during the six months ended April 30, 2005, the Fund had no
borrowings under the Credit Facility.
18
CREDIT SUISSE NEW YORK MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 5. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2005, purchases and sales of investment
securities (excluding short-term investments) were $5,153,462 and $14,331,792,
respectively.
At April 30, 2005, the identified cost for federal income tax purposes, as
well as the gross unrealized appreciation from investments for those securities
having an excess of value over cost, gross unrealized depreciation from
investments for those securities having an excess of cost over value and the net
unrealized appreciation from investments were $39,761,809, $1,336,611, $(43,578)
and $1,293,033, respectively.
NOTE 6. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue an unlimited number of full and fractional
shares of beneficial interest, $.001 par value per share, of which an unlimited
number of shares are classified as Common Class shares and an unlimited number
of shares are classified as Class A shares. Transactions in capital shares for
each class were as follows:
COMMON CLASS
--------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
-------------------------- -------------------------
SHARES VALUE SHARES VALUE
--------- ------------ ---------- ------------
Shares sold 163,482 $ 1,683,927 606,506 $ 6,419,036
Shares issued in reinvestment of
dividends and distributions 118,734 1,221,764 218,633 2,303,050
Shares redeemed (1,309,212) (13,486,956) (1,896,327) (19,906,602)
---------- ------------ ----------- ------------
Net decrease (1,026,996) $(10,581,265) (1,071,188) $(11,184,516)
========== ============ ========== ============
CLASS A
--------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
-------------------------- -------------------------
SHARES VALUE SHARES VALUE
---------- ----------- ---------- ----------
Shares sold 75,976 $ 780,317 84,081 $ 878,788
Shares issued in reinvestment of
dividends and distributions 4,485 46,102 4,944 52,108
Shares redeemed (21,053) (216,135) (55,339) (578,491)
---------- ------------ ---------- -----------
Net increase 59,408 $ 610,284 33,686 $ 352,405
========== ============ ========== ===========
19
CREDIT SUISSE NEW YORK MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS
On April 30, 2005, the number of shareholders that held 5% or more of the
outstanding shares of each class of the Fund was as follows:
NUMBER OF APPROXIMATE PERCENTAGE
SHAREHOLDERS OF OUTSTANDING SHARES
------------ ----------------------
Common Class 2 53%
Class A 2 71%
Some of the shareholders are omnibus accounts, which hold shares on behalf
of individual shareholders.
NOTE 7. CONTINGENCIES
In the normal course of business, the Fund may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Fund's maximum exposure under these arrangements is dependent on future claims
that may be made against the Fund and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
20
CREDIT SUISSE NEW YORK MUNICIPAL FUND
BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED)
- --------------------------------------------------------------------------
In approving the Advisory Agreement, the Board of Trustees of the Fund,
including the Independent Trustees, considered the following factors:
Investment Advisory Fee Rate
The Board reviewed and considered the contractual advisory fee rate of
0.40% paid by the Fund, (the "Contractual Advisory Fee") to CSAM in light of the
extent and quality of the advisory services provided. The Board also reviewed
and considered the fee waiver and/or expense reimbursement arrangements
currently in place for the Fund and considered the actual fee rate (after taking
waiver and reimbursements into account) of 0.04% for the Fund (the "Net Advisory
Fee"). The Board acknowledged that the fee waiver and reimbursements could be
discontinued at any time.
Additionally, the Board received and considered information comparing the
Fund's Contractual Advisory Fee and Net Advisory Fee and the Fund's overall
expenses with those of funds in both the relevant expense group ("Peer Group")
and universe of funds (the "Universe") provided by an independent provider of
investment company data.
Nature, Extent and Quality of the Services under the Advisory Agreement
The Board received and considered information regarding the nature, extent
and quality of services provided to the Fund by CSAM under the Advisory
Agreement. The Board also noted information received at regular meetings
throughout the year related to the services rendered by CSAM. The Board reviewed
background information about CSAM , including its Form ADV. The Board considered
the background and experience of CSAM's senior management and the expertise of,
and the amount of attention given to the Fund by, both senior personnel of CSAM.
In addition, the Board reviewed the qualifications, backgrounds and
responsibilities of the portfolio management team primarily responsible for the
day-to-day portfolio management of the Fund and the extent of the resources
devoted to research and analysis of actual and potential investments. The Board
also received and considered information about the nature, extent and quality of
services and fee rates offered to other CSAM clients for comparable services.
Fund Performance
The Board received and considered the one-year, five-year and ten-year
performance of the Fund, along with comparisons, for all presented periods, both
to the Peer Group and the Universe. The Board was provided with a description of
the methodology used to arrive at the funds included in the Peer Group and the
Universe.
21
CREDIT SUISSE NEW YORK MUNICIPAL FUND
BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
The Board reviewed information comparing the performance of the various
Credit Suisse Funds to performance benchmarks that the Board had previously
established and progress that had been made in certain instances toward
achieving those benchmarks. The Board also reviewed comparisons between the Fund
and its identified benchmark over various time periods.
CSAM Profitability
The Board received and considered a profitability analysis of CSAM based on
the fees payable under the Advisory Agreement, including any fee waivers or fee
caps, as well as other relationships between the Fund on the one hand and CSAM
affiliates on the other. The Board received profitability information for the
other funds in the CSAM family of funds.
Economies of Scale
The Board considered whether economies of scale in the provision of
services to the Fund were being passed along to the shareholders. Accordingly,
the Board considered whether alternative fee structures (such as breakpoint fee
structures) would be more appropriate or reasonable taking into consideration
economies of scale or other efficiencies that might accrue from increases in the
Fund's asset levels.
Other Benefits to CSAM
The Board considered other benefits received by CSAM, and its affiliates as
a result of their relationship with the Fund. Such benefits include, among
others, research arrangements with brokers who execute transactions on behalf of
the Fund, administrative and brokerage relationships with affiliates of CSAM and
benefits potentially derived from an increase in CSAM's business as a result of
its relationship with the Fund (such as the ability to market to shareholders
other financial products offered by CSAM, and its affiliates).
The Board considered the standards applied in seeking best execution and
the existence of quality controls applicable to brokerage allocation procedures.
The Board also reviewed CSAM's method for allocating portfolio investment
opportunities among the Fund and other advisory clients.
22
CREDIT SUISSE NEW YORK MUNICIPAL FUND
BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Conclusions
In selecting CSAM and approving the Advisory Agreement and the investment
advisory fee under such agreement, the Board of the fund concluded that:
o the Contractual Advisory Fee, which was around the median of its Peer
Group, was considered reasonable recognizing that the Net Advisory Fee
was the second lowest of its Peer Group and of its Universe (e.g., all
retail and institutional New York intermediate municipal debt funds)
due to CSAM's waiver of part of its fee for the one-year period ended
October 31, 2004.
o the Fund's one-year, three-year and five-year performance was below
that of its Universe, although no such comparison against its Peer
Group was possible due to the limited number of comparable New York
intermediate municipal debt funds of similar asset size sold through
similar channels of distribution. The Board discussed the
underperformance with CSAM.
o aside from performance (as discussed above), the Board were satisfied
with the nature and extent of the investment advisory services
provided to the Fund by CSAM and that, based on dialogue with
management and counsel, the services provided by CSAM under the
Advisory Agreement and are typical of, and consistent with, those
provided to mutual funds by other investment advisers. The Board
understood that CSAM had or was in the process of addressing any
performance issues.
o in light of the costs of providing investment management and other
services to the Fund and CSAM's ongoing commitment to the Fund and
willingness to cap fees and expenses, the profits and other ancillary
benefits that CSAM and its affiliates received were considered
reasonable.
o CSAM's profitability based on fees payable under the Advisory
Agreement was reasonable in light of the nature, extent and quality of
the services provided to the Fund thereunder.
o in light of the relatively small size of the Fund and the amount of
the Net Advisory Fees, the Fund's current fee structure (without
breakpoints) was considered reasonable.
No single factor reviewed by the Board was identified by the Board as the
principal factor in determining whether to approve the Advisory Agreement. The
Independent Trustees were advised by separate independent legal counsel
throughout the process.
23
CREDIT SUISSE NEW YORK MUNICIPAL FUND
PRIVACY POLICY NOTICE (UNAUDITED)
- --------------------------------------------------------------------------------
Important Privacy Choices for Consumers
---------------------------------------
We are committed to maintaining the privacy of every current and
prospective customer. We recognize that you entrust important personal
information to us, and we wish to assure you that we take seriously our
responsibilities in protecting and safeguarding this information.
In connection with making available investment products and services to
current and potential customers, we may obtain nonpublic personal information
about you. This information may include your name, address, e-mail address,
social security number, account number, assets, income, financial situation,
transaction history and other personal information.
We may collect nonpublic information about you from the following sources:
o Information we receive on applications, forms, questionnaires, web
sites, agreements or in the course of establishing or maintaining a
customer relationship; and
o Information about your transactions with us, our affiliates, or
others.
We do not disclose any nonpublic personal information about our customers
or former customers to anyone, except with your consent or as otherwise
permitted by law.
RESTRICT INFORMATION SHARING WITH AFFILIATES: In cases where we believe
that additional products and services may be of interest to you, we may share
the information described above with our affiliates unless you say "No."
[ ] No, please do not share personal and financial information with your
affiliated companies. [If you check this box, you must send this notice
back to us with your name, address and account number to Credit Suisse
Funds, 466 Lexington Avenue, New York, New York 10017.]
We may also disclose this information to firms that perform services on our
behalf. These agents and service providers are required to treat the information
confidentially and use it only for the purpose for which it is provided.
We restrict access to nonpublic personal information about you to those
employees, agents or other parties who need to know that information to provide
products or services to you or in connection with your investments with or
through us. We maintain physical, electronic and procedural safeguards that
comply with federal standards to guard your nonpublic personal information.
Note: This Notice is provided to clients and prospective clients of Credit
Suisse Asset Management, LLC ("CSAM"), and Credit Suisse Asset Management
Securities, Inc., and shareholders and prospective shareholders in
CSAM-sponsored and-advised investment companies, including Credit Suisse Funds,
and other consumers and customers, as applicable. This Notice is not intended to
be incorporated in any offering materials but is merely a statement of our
current Privacy Policy, and may be amended from time to time upon notice to you.
This Notice is dated as of May 17, 2005.
24
CREDIT SUISSE NEW YORK MUNICIPAL FUND
PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Information regarding how the Fund voted proxies related to its portfolio
securities during the 12-month period ended June 30, 2004, as well as the
policies and procedures that the Fund uses to determine how to vote proxies
relating to its portfolio securities are available:
o By calling 1-800-927-2874
o On the Fund's website, www.csam.com/us
o On the website of the Securities and Exchange Commission,
http://www.sec.gov.
The Fund files a complete schedule of its portfolio holdings for the first
and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms
N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC. Information on
the operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330.
25
P.O. BOX 55030, BOSTON, MA 02205-5030 CREDIT | ASSET
800-927-2874 o www.csam.com/us SUISSE | MANAGEMENT
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. NYM-SAR-0405
ITEM 2. CODE OF ETHICS.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
This item is not applicable to the registrant.
ITEM 6. SCHEDULE OF INVESTMENTS
Included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
This item is not applicable to the registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
This item is not applicable to the registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
This item is not applicable to the registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Nominating Committee recommends Board member candidates. Shareholders of the
registrant may also submit nominees that will be considered by the Committee.
Recommendations should be mailed to the registrant's Secretary, c/o Credit
Suisse Asset Management, LLC, 466 Lexington Avenue, New York, NY 10017. Any
submission should include at a minimum the following information: the name, age,
business address, residence address and principal occupation or employment of
such individual; the class, series and number of shares of the registrant that
are beneficially owned by such individual; the date such shares were acquired
and the investment intent of such acquisition; whether such shareholder believes
such individual is, or is not, an "interested person" of the registrant (as
defined in the Investment Company Act of 1940) and information regarding such
individual that is sufficient, in the Committee's discretion, to make such
determination; and all other information relating to such individual that is
required to be disclosed in solicitation of proxies for election of directors in
an election contest (even if an election contest is not involved) or is
otherwise required pursuant to the rules for proxy materials under the
Securities Exchange Act of 1934.
ITEM 11. CONTROLS AND PROCEDURES.
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.
(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
registrant's last fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
(a)(3) Not applicable.
(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Credit Suisse New York Municipal Fund
/s/ Michael E. Kenneally
--------------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: July 5, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/ Michael E. Kenneally
--------------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: July 5, 2005
/s/ Michael A. Pignataro
--------------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: July 5, 2005