UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-04604
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Credit Suisse Capital Funds
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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 Capital Funds
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: October 31
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
LARGE CAP VALUE FUND
o CREDIT SUISSE
SMALL CAP VALUE FUND
The Funds' investment objectives, risks, charges and expenses (which should be
considered carefully before investing), and more complete information about the
the Funds, are provided in the PROSPECTUS, which should be read carefully before
investing. You may obtain additional copies by calling 800-927-2874 or by
writing to Credit Suisse Funds, P.O. Box 55030, Boston, MA 02205-5030.
Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466
Lexington Ave., New York, NY 10017-3140. Credit Suisse Funds are advised by
Credit Suisse Asset Management, LLC.
INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD BE AWARE THAT THEY MAY BE ELIGIBLE
TO PURCHASE COMMON CLASS AND/OR ADVISOR CLASS SHARES (WHERE OFFERED) DIRECTLY OR
THROUGH CERTAIN INTERMEDIARIES. SUCH SHARES ARE NOT SUBJECT TO A SALES CHARGE
BUT MAY BE SUBJECT TO AN ONGOING SERVICE AND DISTRIBUTION FEE OF UP TO 0.50% OF
AVERAGE DAILY NET ASSETS. INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD ALSO BE
AWARE THAT THEY MAY BE ELIGIBLE FOR A REDUCTION OR WAIVER OF THE SALES CHARGE
WITH RESPECT TO CLASS A, B OR C SHARES. FOR MORE INFORMATION, PLEASE REVIEW THE
RELEVANT PROSPECTUSES OR CONSULT YOUR FINANCIAL REPRESENTATIVE.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND FUNDS'
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2005; THESE VIEWS AND
THE FUNDS' HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS
DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
CREDIT SUISSE LARGE CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
June 1, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/04 - 04/30/05
SHARE CLASS/BENCHMARK PERFORMANCE
Common 1 6.97%
Advisor 1 6.72%
Class A 1,2 6.81%
Class B 1,2 6.45%
Class C 1,2 6.43%
Russell 1000(R) Value Index 3 6.72%
Performance for the Fund's Class A shares, Class B shares and Class C
shares is without the maximum sales charge of 5.75%, 4.00% and 1.00%,
respectively. 2
MARKET OVERVIEW: STRONG START, BUT MOMENTUM FADES
Stocks surged in the first two months of the period, aided by a concluded
Presidential election that removed a good deal of political uncertainty.
Encouraging employment and inflation data at the time also helped. Market
sentiment turned negative in early March, however, as investors grew cautious
amid signs of economic softening seemingly brought on by high oil prices and
rising short term interest rates. On thte earnings front, while first-quarter
2005 results generally met or exceeded expectations, this provided little
support late in the period as the future profit picture dimmed.
Health care, consumer staples, and utilities stocks outperformed as
investors favored relatively defensive sectors. Energy was another good
performer amid high oil prices. Technology stocks and the oil-sensitive
transportation sector were among the poor performers for the period.
STRATEGIC REVIEW: TECHNOLOGY ADDS VALUE DESPITE OUT-OF-FAVOR SECTOR
The Fund's Common Class Shares and Class A Shares outperformed the Fund's
benchmark in the period, aided by good stock selection in the financial
services, major oil, and transportation sectors. Our exposure within the last
area was largely limited to Burlington Northern (0.88% of the Fund's portfolio
as of April 30, 2005), a railroad company that performed well as
commodity-shipping revenues rose. The Fund's technology stocks collectively had
a gain, despite a poor environment for technology stocks generally. The Fund's
energy
1
CREDIT SUISSE LARGE CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
services stocks had lagging results. The Fund's consumer discretionary holdings
had negative performance in both absolute and relative terms.
In terms of noteworthy recent portfolio activity, our purchases included
Pfizer (0.97% of the Fund's portfolio as of April 30, 2005), which had declined
over the past year on product-pipeline concerns. We believed that a fair amount
of negativity had become priced into the stock, which could be aided going
forward by the company's recently announced cost-cutting program. We also
purchased Office Depot (1.30% of the Fund's portfolio as of April 30, 2005), a
retailer that we believe might be a successful turnaround story under a new CEO.
The company is generating good free cash flows and we see potential for
significant stock repurchases.
On the sales side, we eliminated our position in Alcoa based in part on
our concerns over the company's input costs. We also sold our position in
Tribune, a newspaper publisher, based on a weaker than expected recovery in
advertising revenues and the related increased competition from internet
companies.
Going forward, we will continue to adhere to our general strategy of
investing in dividend-paying stocks of companies with large market
capitalizations. Using proprietary bottom-up equity research and detailed
quantitative analyses, we look for stocks that are deeply discounted to our view
of their upside potential, in terms of valuation and/or income, with an emphasis
on companies that stand to benefit from the positive impact of a likely
significant event.
The Credit Suisse Value Team
Stephen J. Kaszynski
Robert E. Rescoe
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS
FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND
FOREIGN MARKET, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT
REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE
STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS,
DEVELOPMENTS AND REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE
MATERIALLY DIFFERENT FROM THAT PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS
NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
2
CREDIT SUISSE LARGE CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2005 1
---------------------------------------------
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 13.04% -- -- 4.98% 8/01/00
Advisor Class 12.47% -- -- 14.38% 6/06/03
Class A Without
Sales Charge 12.72% 4.11% 11.96% 11.74% 7/09/92
Class A With Maximum
Sales Charge 6.22% 2.89% 11.30% 11.22% 7/09/92
Class B Without CDSC 11.88% 3.34% -- 9.35% 2/28/96
Class B With CDSC 7.88% 3.34% -- 9.35% 2/28/96
Class C Without CDSC 11.88% 3.32% -- 5.05% 2/28/00
Class C With CDSC 10.88% 3.32% -- 5.05% 2/28/00
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2005 1
---------------------------------------------
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 11.60% -- -- 4.29% 8/01/00
Advisor Class 11.05% -- -- 12.08% 6/06/03
Class A Without
Sales Charge 11.29% 3.37% 11.48% 11.42% 7/09/92
Class A With Maximum
Sales Charge 4.88% 2.15% 10.82% 10.90% 7/09/92
Class B Without CDSC 10.50% 2.60% -- 8.93% 2/28/96
Class B With CDSC 6.50% 2.60% -- 8.93% 2/28/96
Class C Without CDSC 10.44% 2.59% -- 4.40% 2/28/00
Class C With CDSC 9.44% 2.59% -- 4.40% 2/28/00
RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGES 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.
3
CREDIT SUISSE LARGE CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
- -----------------
1 Fee waivers and/or expense reimbursements may reduce 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 5.75%), was 0.69%. Total
return for Class B Shares for the reporting period, based on redemption
value (including maximum contingent deferred sales charge of 4%), was
2.47%. Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 5.43%.
3 The Russell 1000(R) Value Index measures the performance of those
companies in the Russell 1000(R) Index with lower price-to-book ratios and
lower forecasted growth values. It is an unmanaged index of common stocks
that includes reinvestment of dividends and is compiled by Frank Russell
Company. Investors cannot invest directly in an index.
4
CREDIT SUISSE LARGE CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
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.
5
CREDIT SUISSE LARGE CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
FOR THE SIX MONTH PERIOD ENDED APRIL 30, 2005
- --------------------------------------------------------------------------------
COMMON ADVISOR
ACTUAL FUND RETURN CLASS CLASS CLASS A CLASS B CLASS C
---------- ---------- ---------- ---------- ----------
Beginning Account
Value 11/1/04 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Ending Account
Value 4/30/05 $ 1,069.70 $ 1,067.20 $ 1,068.10 $ 1,064.50 $ 1,064.30
Expenses Paid per $1,000* $ 4.62 $ 7.18 $ 5.90 $ 9.73 $ 9.72
HYPOTHETICAL 5% FUND RETURN
Beginning Account
Value 11/1/04 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Ending Account
Value 4/30/05 $ 1,020.33 $ 1,017.85 $ 1,019.09 $ 1,015.37 $ 1,015.37
Expenses Paid per $1,000* $ 4.51 $ 7.00 $ 5.76 $ 9.49 $ 9.49
COMMON ADVISOR
CLASS CLASS CLASS A CLASS B CLASS C
---------- ---------- ---------- ---------- ----------
ANNUALIZED EXPENSE RATIOS* 0.90% 1.40% 1.15% 1.90% 1.90%
- -------------
* 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.
6
CREDIT SUISSE LARGE CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
[BAR CHART]
SECTOR BREAKDOWN*
Financial Services 28.2%
Other 12.5%
Integrated Oils 9.1%
Consumer Staples 8.1%
Consumer Discretionary 7.6%
Producer Durables 7.5%
Health Care 7.0%
Materials & Processing 5.4%
Other Energy 5.2%
Utilities 4.8%
Technology 1.9%
Short-Term Investments 1.8%
Autos & Transportation 0.9%
- -------------
* Expressed as a percentage of total investments (excluding security lending
collateral) and may vary over time.
7
CREDIT SUISSE SMALL CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
June 1, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/04 - 04/30/05
SHARE CLASS/BENCHMARK PERFORMANCE
Common 1 5.87%
Class A 1,2 5.84%
Class B 1,2 5.44%
Class C 1,2 5.45%
Russell 2000(R) Index 3 (0.15)%
Russell 2000(R) Value Index 3 1.52%
Performance for the Fund's Class A shares, Class B shares and Class C
shares is without the maximum sales charge of 5.75%, 4.00% and 1.00%,
respectively. 2
MARKET OVERVIEW: STRONG START, BUT MOMENTUM FADES
Stocks surged in the first two months of the period, aided by a concluded
Presidential election that removed a good deal of political uncertainty.
Encouraging employment and inflation data at the time also helped. Market
sentiment turned negative in early March, however, as investors grew cautious
amid signs of economic softening seemingly brought on by high oil prices and
rising short term interest rates. On the earnings front, while first-quarter
2005 results generally met or exceeded expectations, this provided little
support late in the period as the future profit picture dimmed.
Consumer staples and utilities stocks outperformed as investors favored
relatively defensive sectors. The energy sector had solid performance amid high
oil prices. Technology stocks struggled, especially in the small-cap area. The
oil-sensitive transportation sector also had poor performance.
STRATEGIC REVIEW: PRODUCER DURABLES, ENERGY HOLDINGS DRIVE OUTPERFORMANCE
The Fund's gain and outperformance was driven by several factors, not the
least of which was stock selection in the producer durables sector. Good
performers here included Flowserve (1.34% of the Fund's portfolio as of April
30, 2005), a manufacturer of industrial equipment used in petroleum refining.
The Fund's energy stocks also performed well, and our overweighting in the
sector was an additional plus. The Fund's underweightings in the technology and
financial services sector also proved beneficial to relative performance, while
its underweighting in the utilities sector hindered relative return.
8
CREDIT SUISSE SMALL CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
With regard to noteworthy portfolio activity, our purchases included 4Kids
Entertainment (1.32% of the Fund's portfolio as of April 30, 2005), which we
deemed attractive based on its valuation, balance sheet and potential for
earnings improvements. Two other consumer names we added were Jacuzzi Brands
(0.87% of the Fund's portfolio as of April 30, 2005), a turnaround story with
potential margin improvement; and Landry Restaurants (0.91% of the Fund's
portfolio as of April 30, 2005), a chain that was trading at a large discount to
its peer group. We believe a recent acquisition could be accretive to next
year's earnings. In the financial services sector, we purchased Partners Trust
(0.85% of the Fund's portfolio as of April 30, 2005), a bank selling at a
discount to its peers that is located in the consolidating New York state
market. Noteworthy sales included eSpeed, an online trading company whose
fundamentals became less attractive to us.
Going forward, we will continue to seek to identify undervalued stocks of
small US companies. Using proprietary bottom-up equity research, we look for
stocks that are deeply discounted to our view of their upside potential, with an
emphasis on companies that stand to benefit from the positive impact of a likely
significant event.
The Credit Suisse Value Team
Stephen J. Kaszynski
Robert E. Rescoe
INVESTMENTS IN SMALL COMPANIES MAY BE MORE VOLATILE AND LESS LIQUID THAN
INVESTMENTS IN LARGER COMPANIES.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS
FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND
FOREIGN MARKET, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT
REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE
STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS,
DEVELOPMENTS AND REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE
MATERIALLY DIFFERENT FROM THAT PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS
NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
9
CREDIT SUISSE SMALL CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2005 1
---------------------------------------------
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 17.98% -- -- 13.81% 8/01/00
Class A Without
Sales Charge 18.00% 13.32% 12.43% 14.08% 7/09/92
Class A With Maximum
Sales Charge 11.24% 11.99% 11.77% 13.55% 7/09/92
Class B Without CDSC 17.07% 12.47% -- 11.01% 2/28/96
Class B With CDSC 13.07% 12.47% -- 11.01% 2/28/96
Class C Without CDSC 17.08% 12.46% -- 14.88% 2/28/00
Class C With CDSC 16.08% 12.46% -- 14.88% 2/28/00
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2005 1
---------------------------------------------
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 13.00% -- -- 12.27% 8/01/00
Class A Without
Sales Charge 12.99% 12.56% 11.55% 13.50% 7/09/92
Class A With Maximum
Sales Charge 6.50% 11.23% 10.89% 12.98% 7/09/92
Class B Without CDSC 12.16% 11.70% -- 10.24% 2/28/96
Class B With CDSC 8.16% 11.70% -- 10.24% 2/28/96
Class C Without CDSC 12.14% 11.72% -- 13.42% 2/28/00
Class C With CDSC 11.14% 11.72% -- 13.42% 2/28/00
RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGES 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.
10
CREDIT SUISSE SMALL CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
- ----------------
1 Fee waivers and/or expense reimbursements may reduce 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 5.75%), was down 0.25%. Total
return for Class B shares for the reporting period, based on redemption
value (including maximum contingent deferred sales charge of 4%) was
1.62%. Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 4.50%.
3 The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, which represent approximately 8%
of the total market capitalization of the Russell 3000(R) Index. It is an
unmanaged index of common stocks which includes reinvestment of dividends
and is compiled by Frank Russell Company. The Russell 2000(R) Value Index
measures the performance of those companies in the Russell 2000(R) with
lower price-to-book ratios and lower forecasted growth values. Investors
cannot invest directly in an index.
11
CREDIT SUISSE SMALL CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
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.
12
CREDIT SUISSE SMALL CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
FOR THE SIX MONTH PERIOD ENDED APRIL 30, 2005
- --------------------------------------------------------------------------------
ADVISOR
ACTUAL FUND RETURN CLASS CLASS A CLASS B CLASS C
---------- ---------- ---------- ----------
Beginning Account Value 11/1/04 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Ending Account Value 4/30/05 $ 1,058.70 $ 1,058.40 $ 1,054.40 $ 1,054.50
Expenses Paid per $1,000* $ 7.04 $ 7.04 $ 10.85 $ 10.85
HYPOTHETICAL 5% FUND RETURN
Beginning Account Value 11/1/04 $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00
Ending Account Value 4/30/05 $ 1,017.95 $ 1,017.95 $ 1,014.23 $ 1,014.23
Expenses Paid per $1,000* $ 6.90 $ 6.90 $ 10.64 $ 10.64
ADVISOR
CLASS CLASS A CLASS B CLASS C
---------- ---------- ---------- ----------
ANNUALIZED EXPENSE RATIOS* 1.38% 1.38% 2.13% 2.13%
- -------------
* 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.
13
CREDIT SUISSE SMALL CAP VALUE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
SECTOR BREAKDOWN*
FINANCIAL SERVICES 17.8%
MATERIAL & PROCESSING 16.9%
CONSUMER DISCRETIONARY 15.9%
PRODUCER DURABLES 13.5%
OTHER ENERGY 10.2%
AUTOS & TRANSPORTATION 5.6%
HEALTH CARE 5.5%
UTILITIES 4.9%
OTHER 2.9%
TECHNOLOGY 2.8%
SHORT-TERM INVESTMENTS 2.2%
CONSUMER STAPLES 1.8%
- ------------
* Expressed as a percentage of total investments (excluding security lending
collateral) and may vary over time.
14
CREDIT SUISSE LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------- ---------------
COMMON STOCKS (98.3%)
AEROSPACE & DEFENSE (5.1%)
Lockheed Martin Corp. 151,000 $ 9,203,450
United Technologies Corp. 80,100 8,147,772
---------------
17,351,222
---------------
AUTO COMPONENTS (1.4%)
Johnson Controls, Inc. 87,200 4,784,664
---------------
BANKS (12.8%)
Bank of America Corp. 223,674 10,074,277
Mellon Financial Corp. 209,200 5,792,748
North Fork Bancorporation, Inc. 171,000 4,813,650
U.S. Bancorp 117,300 3,272,670
Wachovia Corp. 185,200 9,478,536
Wells Fargo & Co. 168,900 10,123,866
---------------
43,555,747
---------------
BEVERAGES (1.0%)
Coca-Cola Enterprises, Inc. 162,800 3,304,840
---------------
BUILDING PRODUCTS (1.1%)
American Standard Companies, Inc. 84,500 3,777,995
---------------
CHEMICALS (3.7%)
Du Pont (E. I.) de Nemours & Co. 172,600 8,131,186
PPG Industries, Inc. 65,900 4,451,545
---------------
12,582,731
---------------
COMPUTERS & PERIPHERALS (0.9%)
International Business Machines Corp. 39,900 3,047,562
---------------
CONTAINERS & PACKAGING (0.5%)
Smurfit-Stone Container Corp.* 140,338 1,839,831
---------------
DIVERSIFIED FINANCIALS (8.9%)
Capital One Financial Corp. 80,900 5,735,001
Citigroup, Inc. 227,600 10,688,096
Fannie Mae 68,300 3,684,785
Lehman Brothers Holdings, Inc. 50,600 4,641,032
Morgan Stanley 101,900 5,361,978
---------------
30,110,892
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES (3.8%)
ALLTEL Corp. 43,700 2,489,152
Telus Corp. 190,000 5,667,700
Verizon Communications, Inc. 133,400 4,775,720
---------------
12,932,572
---------------
ELECTRIC UTILITIES (1.0%)
Progress Energy, Inc. 84,100 3,531,359
---------------
See Accompanying Notes to Financial Statements.
15
CREDIT SUISSE LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------- ---------------
COMMON STOCKS
ELECTRICAL EQUIPMENT (1.0%)
Emerson Electric Co. 56,500 $ 3,540,855
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.4%)
Diebold, Inc.@ 95,800 4,633,846
---------------
ENERGY EQUIPMENT & SERVICES (1.7%)
Weatherford International, Ltd.*@ 110,700 5,773,005
---------------
FOOD PRODUCTS (1.5%)
General Mills, Inc. 104,500 5,162,300
---------------
HEALTHCARE PROVIDERS & SERVICES (2.1%)
Aetna, Inc. 95,600 7,014,172
---------------
HOTELS, RESTAURANTS & LEISURE (1.1%)
McDonald's Corp. 127,600 3,739,956
---------------
HOUSEHOLD DURABLES (0.7%)
Maytag Corp.@ 259,900 2,518,431
---------------
HOUSEHOLD PRODUCTS (3.3%)
Procter & Gamble Co. 203,900 11,041,185
---------------
INDUSTRIAL CONGLOMERATES (7.6%)
General Electric Co. 290,600 10,519,720
Textron, Inc. 86,800 6,540,380
Tyco International, Ltd. 277,100 8,676,001
---------------
25,736,101
---------------
INSURANCE (6.5%)
Allstate Corp. 106,000 5,952,960
Hartford Financial Services Group, Inc. 138,300 10,008,771
St. Paul Companies, Inc. 168,800 6,043,040
---------------
22,004,771
---------------
MACHINERY (3.5%)
Eaton Corp. 87,200 5,114,280
ITT Industries, Inc. 73,800 6,675,948
---------------
11,790,228
---------------
MEDIA (1.0%)
Viacom, Inc. Class B 97,000 3,358,140
---------------
MULTILINE RETAIL (2.0%)
Federated Department Stores, Inc. 116,600 6,704,500
---------------
See Accompanying Notes to Financial Statements.
16
CREDIT SUISSE LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------- ---------------
COMMON STOCKS
OIL & GAS (12.6%)
Apache Corp. 94,000 $ 5,291,260
Burlington Resources, Inc. 93,800 4,559,618
ConocoPhillips 140,350 14,715,698
Exxon Mobil Corp. 216,100 12,324,183
Murphy Oil Corp. 42,600 3,795,234
Pioneer Natural Resources Co. 52,100 2,118,386
---------------
42,804,379
---------------
PHARMACEUTICALS (4.9%)
Johnson & Johnson 136,500 9,367,995
Pfizer, Inc. 125,000 3,396,250
Schering-Plough Corp. 185,200 3,865,124
---------------
16,629,369
---------------
ROAD & RAIL (0.9%)
Burlington Northern Santa Fe Corp. 64,500 3,112,125
---------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (1.1%)
Intel Corp. 151,800 3,570,336
---------------
SPECIALTY RETAIL (2.8%)
Best Buy Company, Inc. 97,800 4,923,252
Office Depot, Inc.* 233,200 4,566,056
---------------
9,489,308
---------------
TOBACCO (2.4%)
Altria Group, Inc. 125,000 8,123,750
---------------
TOTAL COMMON STOCKS (Cost $257,160,969) 333,566,172
---------------
SHORT-TERM INVESTMENTS (5.4%)
State Street Navigator Prime Fund@@ 12,214,360 12,214,360
PAR
(000)
-------------
State Street Bank and Trust Co. Euro Time Deposit, 1.850%, 5/02/05 $ 6,040 6,040,000
---------------
TOTAL SHORT-TERM INVESTMENTS (Cost $18,254,360) 18,254,360
---------------
TOTAL INVESTMENTS AT VALUE (103.7%) (Cost $275,415,329) 351,820,532
LIABILITIES IN EXCESS OF OTHER ASSETS (-3.7%) (12,415,912)
---------------
NET ASSETS (100.0%) $ 339,404,620
===============
- --------------------------------------------------------------------------------
* Non-income producing security.
@ Security or portion thereof is out on loan.
@@ Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
17
CREDIT SUISSE SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------- ---------------
COMMON STOCKS (96.7%)
AEROSPACE & DEFENSE (1.1%)
BE Aerospace, Inc.* 134,100 $ 1,627,974
DRS Technologies, Inc.* 36,800 1,628,400
---------------
3,256,374
---------------
AUTO COMPONENTS (2.9%)
Accuride Corp.*@ 570,700 4,947,969
Modine Manufacturing Co.* 132,800 3,596,224
---------------
8,544,193
---------------
BANKS (8.9%)
Alabama National Bancorp. 72,500 4,145,550
First Niagara Financial Group, Inc. 30,500 382,470
FirstFed Financial Corp.* 104,900 5,311,087
NewAlliance Bancshares, Inc.*@ 284,100 3,721,710
Partners Trust Financial Group, Inc. 273,100 2,774,696
Prosperity Bancshares, Inc. 122,800 3,137,540
Susquehanna Bancshares, Inc. 149,400 3,141,882
Webster Financial Corp. 81,900 3,722,355
---------------
26,337,290
---------------
BUILDING PRODUCTS (1.6%)
Griffon Corp.* 103,300 1,982,327
Jacuzzi Brands, Inc.* 311,800 2,821,790
---------------
4,804,117
---------------
CHEMICALS (2.9%)
Crompton Corp.@ 367,400 5,161,970
H.B. Fuller Co. 114,300 3,465,576
---------------
8,627,546
---------------
COMMERCIAL SERVICES & SUPPLIES (3.2%)
Banta Corp. 122,200 5,088,408
Watson Wyatt & Company Holdings 165,200 4,361,280
---------------
9,449,688
---------------
CONSTRUCTION & ENGINEERING (1.1%)
EMCOR Group, Inc.* 70,500 3,149,940
---------------
CONSTRUCTION MATERIALS (1.0%)
Eagle Materials, Inc.@ 37,500 2,821,875
---------------
CONTAINERS & PACKAGING (4.0%)
AptarGroup, Inc. 141,000 6,800,430
Crown Holdings, Inc. 323,600 4,870,180
---------------
11,670,610
---------------
DIVERSIFIED FINANCIALS (3.2%)
Apollo Investment Corp. 201,400 3,194,204
Assured Guaranty, Ltd. 158,000 3,011,480
National Financial Partners Corp. 40,000 1,529,600
See Accompanying Notes to Financial Statements.
18
CREDIT SUISSE SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------- ---------------
COMMON STOCKS
DIVERSIFIED FINANCIALS
Piper Jaffray Companies, Inc.* 60,100 $ 1,661,765
---------------
9,397,049
---------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.1%)
Iowa Telecommunications Services, Inc.@ 165,600 3,162,960
---------------
ELECTRIC UTILITIES (1.9%)
Empire District Electric Co.@ 117,000 2,583,360
OGE Energy Corp. 109,100 3,011,160
---------------
5,594,520
---------------
ELECTRICAL EQUIPMENT (5.6%)
AMETEK, Inc. 121,100 4,586,057
Brady Corp. 199,400 5,912,210
Rayovac Corp.* 166,600 6,070,904
---------------
16,569,171
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (4.3%)
Electro Scientific Industries, Inc.* 144,100 2,381,973
Rogers Corp.*@ 56,600 1,954,964
Roper Industries, Inc. 36,300 2,456,421
Varian, Inc.* 122,200 4,053,374
Woodhead Industries, Inc. 152,600 1,771,686
---------------
12,618,418
---------------
ENERGY EQUIPMENT & SERVICES (3.1%)
National-Oilwell Varco, Inc.* 81,010 3,219,333
Oceaneering International, Inc.*@ 185,200 6,076,412
---------------
9,295,745
---------------
FOOD & DRUG RETAILING (1.8%)
Ruddick Corp. 235,100 5,280,346
---------------
GAS UTILITIES (1.9%)
National Fuel Gas Co. 94,400 2,570,512
WGL Holdings, Inc.@ 96,000 2,909,760
---------------
5,480,272
---------------
HEALTHCARE EQUIPMENT & SUPPLIES (4.1%)
Arrow International, Inc.@ 143,400 4,752,276
Cooper Companies, Inc. 69,700 4,708,235
Invacare Corp. 63,900 2,617,344
---------------
12,077,855
---------------
HEALTHCARE PROVIDERS & SERVICES (2.5%)
LifePoint Hospitals, Inc.*@ 90,800 4,036,060
Service Corp. International* 461,200 3,246,848
---------------
7,282,908
---------------
See Accompanying Notes to Financial Statements.
19
CREDIT SUISSE SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------- ---------------
COMMON STOCKS
HOTELS, RESTAURANTS & LEISURE (3.1%)
Carmike Cinemas, Inc. 80,900 $ 2,831,500
Landry's Restaurants, Inc. 114,100 2,966,600
Marcus Corp. 171,575 3,285,661
---------------
9,083,761
---------------
HOUSEHOLD DURABLES (1.0%)
Ethan Allen Interiors, Inc.@ 94,100 2,835,233
---------------
HOUSEHOLD PRODUCTS (0.5%)
Prestige Brands Holdings, Inc.* 90,000 1,620,000
---------------
INDUSTRIAL CONGLOMERATES (2.9%)
Carlisle Companies, Inc. 75,200 5,400,864
Teleflex, Inc.@ 57,400 3,069,178
---------------
8,470,042
---------------
INSURANCE (4.0%)
Allmerica Financial Corp.* 105,000 3,524,850
Platinum Underwriters Holdings, Ltd. 174,300 5,159,280
ProAssurance Corp.*@ 81,600 3,060,816
---------------
11,744,946
---------------
IT CONSULTING & SERVICES (0.9%)
Keane, Inc.* 216,400 2,575,160
---------------
MACHINERY (7.1%)
Albany International Corp. Class A 86,800 2,722,048
ESCO Technologies, Inc.* 68,400 5,015,088
Flowserve Corp.* 157,600 4,374,976
NACCO Industries, Inc. Class A@ 15,400 1,603,910
Robbins & Myers, Inc.@ 66,300 1,445,340
The Manitowoc Company, Inc. 147,600 5,904,000
---------------
21,065,362
---------------
MEDIA (3.1%)
4Kids Entertainment, Inc.*@ 212,600 4,286,016
Harte-Hanks, Inc. 171,300 4,882,050
---------------
9,168,066
---------------
METALS & MINING (1.9%)
Foundation Coal Holdings, Inc.@ 37,700 880,295
GrafTech International, Ltd.* 290,800 1,107,948
Quanex Corp.@ 70,650 3,564,999
---------------
5,553,242
---------------
OIL& GAS (6.6%)
Comstock Resources, Inc.* 142,000 3,592,600
Denbury Resources, Inc.* 204,100 6,478,134
Forest Oil Corp.* 89,200 3,436,876
See Accompanying Notes to Financial Statements.
20
CREDIT SUISSE SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------- ---------------
COMMON STOCKS
OIL & GAS
Range Resources Corp. 140,200 $ 3,175,530
W&T Offshore, Inc. 144,200 2,891,210
---------------
19,574,350
---------------
REAL ESTATE (1.4%)
Eagle Hospitality Properties Trust, Inc. 203,300 1,876,459
HRPT Properties Trust 202,900 2,384,075
---------------
4,260,534
---------------
ROAD & RAIL (2.7%)
Laidlaw International, Inc.* 171,000 3,828,690
Werner Enterprises, Inc. 217,450 4,040,221
---------------
7,868,911
---------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (0.7%)
Axcelis Technologies, Inc.* 148,300 920,943
Credence Systems Corp.*@ 196,400 1,235,356
---------------
2,156,299
---------------
SPECIALTY RETAIL (3.3%)
CSK Auto Corp.* 242,200 3,756,522
Hughes Supply, Inc. 100,600 2,625,660
Sports Authority, Inc. 123,600 3,287,760
---------------
9,669,942
---------------
TEXTILES & APPAREL (1.3%)
Warnaco Group, Inc. 173,000 3,885,580
---------------
TOTAL COMMON STOCKS (Cost $198,274,521) 284,952,305
---------------
SHORT-TERM INVESTMENTS (13.8%)
State Street Navigator Prime Fund@@ 34,314,623 34,314,623
PAR
(000)
-------------
State Street Bank and Trust Co. Euro Time Deposit, 1.850%, 5/02/05 $ 6,382 6,382,000
---------------
TOTAL SHORT-TERM INVESTMENTS (Cost $40,696,623) 40,696,623
---------------
TOTAL INVESTMENTS AT VALUE (110.5%) (Cost $238,971,144) 325,648,928
LIABILITIES IN EXCESS OF OTHER ASSETS (-10.5%) (30,994,031)
---------------
NET ASSETS (100.0%) $ 294,654,897
===============
- --------------------------------------------------------------------------------
* Non-income producing security.
@ Security or portion thereof is out on loan.
@@ Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
21
CREDIT SUISSE FUNDS
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
LARGE CAP SMALL CAP
VALUE FUND VALUE FUND
------------- ---------------
ASSETS
Investments at value, including collateral for securities on loan of
$12,214,360 and $34,314,623, respectively (Cost $275,415,329, and
$238,971,144, respectively) (Note 2) $ 351,820,532 1 $ 325,648,928 2
Cash 979 530
Dividend and interest receivable 439,651 267,447
Receivable for fund shares sold 175,543 513,949
Receivable for investments sold -- 3,825,906
Prepaid expenses and other assets 52,295 58,946
------------- ---------------
Total Assets 352,489,000 330,315,706
------------- ---------------
LIABILITIES
Advisory fee payable (Note 3) 157,088 187,250
Administrative services fee payable (Note 3) 103,148 90,188
Shareholder servicing/Distribution fee payable (Note 2) 88,116 82,557
Payable upon return of securities loaned (Note 2) 12,214,360 34,314,623
Payable for fund shares redeemed 335,306 449,013
Trustees' fee payable 2,333 2,331
Payable for investments purchased -- 381,650
Other accrued expenses payable 184,029 153,197
------------- ---------------
Total Liabilities 13,084,380 35,660,809
------------- ---------------
NET ASSETS
Capital stock, $0.001 par value (Note 6) 17,009 13,573
Paid-in capital (Note 6) 247,455,609 195,515,395
Undistributed net investment income (loss) 74,159 (444,530)
Accumulated net realized gain on investments and foreign currency
transactions 15,452,640 12,892,675
Net unrealized appreciation from investments 76,405,203 86,677,784
------------- ---------------
Net Assets $ 339,404,620 $ 294,654,897
============= ===============
COMMON SHARES
Net assets $ 659,166 $ 60,330,883
Shares outstanding 33,126 2,763,066
------------- ---------------
Net asset value, offering price, and redemption price per share $ 19.90 $ 21.83
============= ===============
ADVISOR SHARES
Net assets $ 9,051,847 N/A
Shares outstanding 452,177 N/A
------------- ---------------
Net asset value, offering price, and redemption price per share $ 20.02 N/A
============= ===============
See Accompanying Notes to Financial Statements.
22
CREDIT SUISSE FUNDS
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
LARGE CAP SMALL CAP
VALUE FUND VALUE FUND
------------- ---------------
A SHARES
Net assets $ 303,831,585 $ 202,722,702
Shares outstanding 15,211,159 9,244,462
------------- ---------------
Net asset value and redemption price per share $ 19.97 $ 21.93
============= ===============
Maximum offering price per share (net asset value/(1-5.75%)) $ 21.19 $ 23.27
============= ===============
B SHARES
Net assets $ 22,086,044 $ 18,659,154
Shares outstanding 1,120,145 923,164
------------- ---------------
Net asset value and offering price per share $ 19.72 $ 20.21
============= ===============
C SHARES
Net assets $ 3,775,978 $ 12,942,158
Shares outstanding 192,440 642,598
------------- ---------------
Net asset value and offering price per share $ 19.62 $ 20.14
============= ===============
- --------------------------------------------------------------------------------
1 Including $11,926,832 of securities on loan.
2 Including $33,482,376 of securities on loan.
See Accompanying Notes to Financial Statements.
23
CREDIT SUISSE FUNDS
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
LARGE CAP SMALL CAP
VALUE FUND VALUE FUND
------------- ---------------
INVESTMENT INCOME (Note 2)
Dividends $ 3,871,790 $ 1,687,243
Interest 31,013 39,869
Securities lending 11,178 11,131
Foreign taxes withheld (7,706) --
------------- ---------------
Total investment income 3,906,275 1,738,243
------------- ---------------
EXPENSES
Investment advisory fees (Note 3) 972,914 1,121,434
Administrative services fees (Note 3) 288,783 247,177
Shareholder servicing/Distribution fees (Note 3)
Common Class -- 71,863
Advisor Class 25,845 --
Class A 391,707 261,149
Class B 118,420 101,265
Class C 19,570 63,449
Transfer agent fees (Note 3) 201,531 201,667
Printing fees (Note 3) 34,773 27,338
Registration fees 23,494 22,070
Audit fees 18,101 17,108
Custodian fees 16,653 15,881
Legal fees 15,356 15,417
Insurance expense 4,657 3,623
Commitment fees (Note 4) 4,407 3,585
Trustees' fees 4,321 4,321
Miscellaneous expense 6,464 5,426
------------- ---------------
Total expenses 2,146,996 2,182,773
------------- ---------------
Net investment income (loss) 1,759,279 (444,530)
------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY RELATED ITEMS
Net realized gain from investments 17,205,185 13,202,671
Net realized gain on foreign currency transactions 304 --
Net change in unrealized appreciation (depreciation) from investments 4,686,419 3,108,868
------------- ---------------
Net realized and unrealized gain from investments and
foreign currency related items 21,891,908 16,311,539
------------- ---------------
Net increase in net assets resulting from operations $ 23,651,187 $ 15,867,009
============= ===============
See Accompanying Notes to Financial Statements.
24
CREDIT SUISSE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE CAP VALUE FUND SMALL CAP VALUE FUND
------------------------------------- -------------------------------------
FOR THE SIX MONTHS FOR THE SIX MONTHS
ENDED FOR THE YEAR ENDED FOR THE YEAR
APRIL 30, 2005 ENDED APRIL 30, 2005 ENDED
(UNAUDITED) OCTOBER 31, 2004 (UNAUDITED) OCTOBER 31, 2004
------------------ ---------------- ------------------ ----------------
FROM OPERATIONS
Net investment income (loss) $ 1,759,279 $ 3,005,688 $ (444,530) $ (873,699)
Net realized gain on investments and
foreign currency transactions 17,205,489 23,074,340 13,202,671 28,393,507
Net change in unrealized appreciation
(depreciation) from investments and
foreign currency translations 4,686,419 12,646,399 3,108,868 21,745,107
------------------ ---------------- ------------------ ----------------
Net increase in net assets
resulting from operations 23,651,187 38,726,427 15,867,009 49,264,915
------------------ ---------------- ------------------ ----------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Common Class shares (4,627) (7,968) -- --
Advisor shares (45,540) (106,265) -- --
Class A shares (1,747,774) (2,867,502) -- --
Class B shares (43,276) (51,526) -- --
Class C shares (7,080) (7,128) -- --
Distributions from net realized gains
Common Class shares (42,520) (19,226) (4,991,665) (2,480,205)
Advisor shares (730,089) (600,700) -- --
Class A shares (19,844,244) (8,164,902) (18,702,976) (9,958,591)
Class B shares (1,556,864) (798,605) (2,007,856) (1,256,227)
Class C shares (248,446) (94,482) (1,230,506) (484,122)
------------------ ---------------- ------------------ ----------------
Net decrease in net assets resulting from
dividends and distributions (24,270,460) (12,718,304) (26,933,003) (14,179,145)
------------------ ---------------- ------------------ ----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 16,507,446 30,700,269 49,073,998 73,355,864
Reinvestment of dividends and distributions 22,491,425 11,727,989 24,873,671 13,222,116
Net asset value of shares redeemed (43,542,994) (86,526,431) (49,104,990) (107,878,366)
------------------ ---------------- ------------------ ----------------
Net increase (decrease) in net assets
from capital share transactions (4,544,123) (44,098,173) 24,842,679 (21,300,386)
------------------ ---------------- ------------------ ----------------
Net increase (decrease) in net assets (5,163,396) (18,090,050) 13,776,685 13,785,384
NET ASSETS
Beginning of period 344,568,016 362,658,066 280,878,212 267,092,828
------------------ ---------------- ------------------ ----------------
End of period $ 339,404,620 $ 344,568,016 $ 294,654,897 $ 280,878,212
================== ================ ================== ================
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ 74,159 $ 163,177 $ (444,530) $ --
================== ================ ================== ================
See Accompanying Notes to Financial Statements.
25
CREDIT SUISSE LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000 1
----------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 19.98 $ 18.61 $ 16.82 $ 19.95 $ 24.63 $ 22.44
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income 2 0.13 0.23 0.14 0.17 0.19 0.02
Net gain (loss) on investments
and foreign currency related items
(both realized and unrealized) 1.25 1.87 2.10 (1.45) (2.52) 2.21
----------- -------- -------- -------- -------- --------
Total from investment operations 1.38 2.10 2.24 (1.28) (2.33) 2.23
----------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.14) (0.23) (0.14) (0.19) (0.22) (0.04)
Distributions from net realized gains (1.32) (0.50) (0.31) (1.66) (2.13) --
----------- -------- -------- -------- -------- --------
Total dividends and distributions (1.46) (0.73) (0.45) (1.85) (2.35) (0.04)
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 19.90 $ 19.98 $ 18.61 $ 16.82 $ 19.95 $ 24.63
=========== ======== ======== ======== ======== ========
Total return 3 6.97% 11.51% 13.63% (7.63)% (10.51)% 9.96%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 659 $ 664 $ 737 $ 3,061 $ 3,421 $ 96
Ratio of expenses to average net assets 0.90% 4 0.95% 1.24% 1.03% 1.03% 0.43% 4
Ratio of net investment income
to average net assets 1.31% 4 1.16% 0.82% 0.92% 0.86% 0.07% 4
Decrease reflected in above operating expense
ratios due to waivers -- -- -- 0.29% 0.18% --
Portfolio turnover rate 19% 48% 53% 28% 38% 55%
- --------------------------------------------------------------------------------
1 For the period August 1, 2000 (inception) date through October 31, 2000.
2 Per share information is calculated using the average shares outstanding
method.
3 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been
lower. Total returns for periods less than one year are not annualized.
4 Annualized.
See Accompanying Notes to Financial Statements.
26
CREDIT SUISSE LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS FOR THE YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 2005 -----------------------
(UNAUDITED) 2004 2003 1
------------------ ---------- ----------
PER SHARE DATA
Net asset value, beginning of period $ 20.09 $ 18.71 $ 17.84
------------------ ---------- ----------
INVESTMENT OPERATIONS
Net investment income 2 0.09 0.13 0.04
Net gain on investments
and foreign currency related items
(both realized and unrealized) 1.25 1.88 0.83
------------------ ---------- ----------
Total from investment operations 1.34 2.01 0.87
------------------ ---------- ----------
LESS DIVIDENDS
Dividends from net investment income (0.09) (0.13) (0.00) 3
Distributions from net realized gains (1.32) (0.50) --
------------------ ---------- ----------
Total dividends and distributions (1.41) (0.63) --
------------------ ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 20.02 $ 20.09 $ 18.71
================== ========== ==========
Total return 4 6.72% 10.96% 4.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 9,052 $ 12,228 $ 22,336
Ratio of expenses to average net assets 1.40% 5 1.45% 1.49% 5
Ratio of net investment income
to average net assets 0.81% 5 0.66% 0.51% 5
Portfolio turnover rate 19% 48% 53%
- --------------------------------------------------------------------------------
1 For the period June 6, 2003 (inception date) through October 31, 2003.
2 Per share information is calculated using the average shares outstanding
method.
3 This amount represents less than $(0.01) per share.
4 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been
lower. Total returns for periods less than one year are not annualized.
5 Annualized.
See Accompanying Notes to Financial Statements.
27
CREDIT SUISSE LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 20.05 $ 18.68 $ 16.83 $ 19.96 $ 24.62 $ 23.49
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income 1 0.11 0.18 0.14 0.17 0.21 0.16
Net gain (loss) on investments
and foreign currency related items
(both realized and unrealized) 1.24 1.87 2.15 (1.45) (2.55) 1.78
----------- -------- -------- -------- -------- --------
Total from investment operations 1.35 2.05 2.29 (1.28) (2.34) 1.94
----------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.11) (0.18) (0.13) (0.19) (0.19) (0.12)
Distributions from net realized gains (1.32) (0.50) (0.31) (1.66) (2.13) (0.69)
----------- -------- -------- -------- -------- --------
Total dividends and distributions (1.43) (0.68) (0.44) (1.85) (2.32) (0.81)
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 19.97 $ 20.05 $ 18.68 $ 16.83 $ 19.96 $ 24.62
=========== ======== ======== ======== ======== ========
Total return 2 6.81% 11.19% 13.97% (7.63)% (10.48)% 8.44%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 303,832 $302,823 $306,410 $114,733 $133,665 $162,871
Ratio of expenses to average net assets 1.15% 3 1.20% 1.24% 1.03% 1.04% 1.08%
Ratio of net investment income
to average net assets 1.06% 3 0.91% 0.78% 0.90% 0.94% 0.71%
Decrease reflected in above operating expense
ratios due to waivers -- -- -- 0.28% 0.10% --
Portfolio turnover rate 19% 48% 53% 28% 38% 55%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are
not annualized.
3 Annualized.
See Accompanying Notes to Financial Statements.
28
CREDIT SUISSE LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Class B Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 19.81 $ 18.46 $ 16.66 $ 19.78 $ 24.44 $ 23.37
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income 1 0.03 0.03 0.01 0.03 0.04 --
Net gain (loss) on investments
and foreign currency related items
(both realized and unrealized) 1.24 1.85 2.13 (1.43) (2.52) 1.76
----------- -------- -------- -------- -------- --------
Total from investment operations 1.27 1.88 2.14 (1.40) (2.48) 1.76
----------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.04) (0.03) (0.03) (0.06) (0.05) --
Distributions from net realized gains (1.32) (0.50) (0.31) (1.66) (2.13) (0.69)
----------- -------- -------- -------- -------- --------
Total dividends and distributions (1.36) (0.53) (0.34) (1.72) (2.18) (0.69)
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 19.72 $ 19.81 $ 18.46 $ 16.66 $ 19.78 $ 24.44
=========== ======== ======== ======== ======== ========
Total return 2 6.45% 10.40% 13.07% (8.29)% (11.00)% 7.66%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 22,086 $ 25,118 $ 29,696 $ 28,312 $ 33,087 $ 41,194
Ratio of expenses to average net assets 1.90% 3 1.95% 1.99% 1.78% 1.79% 1.80%
Ratio of net investment income (loss)
to average net assets 0.31% 3 0.16% 0.06% 0.15% 0.19% (0.01)%
Decrease reflected in above operating expense
ratios due to waivers -- -- -- 0.27% 0.10% --
Portfolio turnover rate 19% 48% 53% 28% 38% 55%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are
not annualized.
3 Annualized.
See Accompanying Notes to Financial Statements.
29
CREDIT SUISSE LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Class C Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000 1
----------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 19.72 $ 18.38 $ 16.58 $ 19.71 $ 24.39 $ 20.87
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income (loss) 2 0.03 0.03 0.01 0.03 0.03 (0.01)
Net gain (loss) on investments
and foreign currency related items
(both realized and unrealized) 1.23 1.84 2.13 (1.43) (2.51) 3.56
----------- -------- -------- -------- -------- --------
Total from investment operations 1.26 1.87 2.14 (1.40) (2.48) 3.55
----------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.04) (0.03) (0.03) (0.07) (0.07) (0.03)
Distributions from net realized gains (1.32) (0.50) (0.31) (1.66) (2.13) --
----------- -------- -------- -------- -------- --------
Total dividends and distributions (1.36) (0.53) (0.34) (1.73) (2.20) (0.03)
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 19.62 $ 19.72 $ 18.38 $ 16.58 $ 19.71 $ 24.39
=========== ======== ======== ======== ======== ========
Total return 3 6.43% 10.39% 13.14% (8.35)% (11.07)% 17.02%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 3,776 $ 3,736 $ 3,479 $ 2,104 $ 1,916 $ 496
Ratio of expenses to average net assets 1.90% 4 1.95% 1.99% 1.78% 1.79% 1.28% 4
Ratio of net investment income (loss)
to average net assets 0.31% 4 0.16% 0.06% 0.16% 0.13% (0.03)%4
Decrease reflected in above operating expense
ratios due to waivers -- -- -- 0.28% 0.10% --
Portfolio turnover rate 19% 48% 53% 28% 38% 55%
- --------------------------------------------------------------------------------
1 For the period February 28, 2000 (inception date) through October 31,
2000.
2 Per share information is calculated using the average shares outstanding
method.
3 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are
not annualized.
4 Annualized.
See Accompanying Notes to Financial Statements.
30
CREDIT SUISSE SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000 1
----------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 22.66 $ 20.02 $ 18.56 $ 21.07 $ 22.62 $ 21.35
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income (loss) 2 (0.02) (0.05) (0.02) 0.02 0.04 0.02
Net gain on investments
(both realized and unrealized) 1.37 3.75 3.08 0.31 1.72 1.25
----------- -------- -------- -------- -------- --------
Total from investment operations 1.35 3.70 3.06 0.33 1.76 1.27
----------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -- -- (0.01) (0.05) (0.09) --
Distributions from net realized gains (2.18) (1.06) (1.59) (2.79) (3.22) --
----------- -------- -------- -------- -------- --------
Total dividends and distributions (2.18) (1.06) (1.60) (2.84) (3.31) --
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 21.83 $ 22.66 $ 20.02 $ 18.56 $ 21.07 $ 22.62
=========== ======== ======== ======== ======== ========
Total return 3 5.87% 19.14% 17.75% 0.61% 9.79% 5.95%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 60,331 $ 50,068 $ 47,969 $ 45,075 $ 30,667 $ 105
Ratio of expenses to average net assets 1.38% 4 1.42% 1.48% 1.32% 1.33% 0.34% 4
Ratio of net investment income (loss)
to average net assets (0.20)% 4 (0.22)% (0.10)% 0.12% 0.18% 0.09% 4
Decrease reflected in above operating
expense ratios due to waivers -- -- 0.04% 0.14% 0.02% --
Portfolio turnover rate 11% 41% 30% 18% 54% 42%
- --------------------------------------------------------------------------------
1 For the period August 1, 2000 (inception date) through October 31, 2000.
2 Per share information is calculated using the average shares outstanding
method.
3 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been
lower. Total returns for periods less than one year are not annualized.
4 Annualized.
See Accompanying Notes to Financial Statements.
31
CREDIT SUISSE SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 22.75 $ 20.10 $ 18.62 $ 21.09 $ 22.54 $ 20.52
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income (loss) 1 (0.02) (0.05) (0.02) 0.02 0.05 0.06
Net gain on investments
(both realized and unrealized) 1.38 3.76 3.10 0.33 1.76 4.05
----------- -------- -------- -------- -------- --------
Total from investment operations 1.36 3.71 3.08 0.35 1.81 4.11
----------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -- -- (0.01) (0.03) (0.04) (0.04)
Distributions from net realized gains (2.18) (1.06) (1.59) (2.79) (3.22) (2.05)
----------- -------- -------- -------- -------- --------
Total dividends and distributions (2.18) (1.06) (1.60) (2.82) (3.26) (2.09)
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 21.93 $ 22.75 $ 20.10 $ 18.62 $ 21.09 $ 22.54
=========== ======== ======== ======== ======== ========
Total return 2 5.84% 19.11% 17.80% 0.71% 9.70% 21.69%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 202,723 $198,773 $188,318 $151,340 $199,213 $188,501
Ratio of expenses to average net assets 1.38% 3 1.42% 1.48% 1.32% 1.33% 1.39%
Ratio of net investment income (loss)
to average net assets (0.20)% 3 0.22% (0.11)% 0.11% 0.25% 0.28%
Decrease reflected in above operating
expense ratios due to waivers -- -- 0.04% 0.12% 0.02% --
Portfolio turnover rate 11% 41% 30% 18% 54% 42%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are
not annualized.
3 Annualized.
See Accompanying Notes to Financial Statements.
32
CREDIT SUISSE SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Class B Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 21.20 $ 18.93 $ 17.74 $ 20.33 $ 21.95 $ 20.13
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment loss 1 (0.10) (0.20) (0.15) (0.12) (0.10) (0.09)
Net gain on investments
(both realized and unrealized) 1.29 3.53 2.93 0.32 1.70 3.96
----------- -------- -------- -------- -------- --------
Total from investment operations 1.19 3.33 2.78 0.20 1.60 3.87
----------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions from net realized gains (2.18) (1.06) (1.59) (2.79) (3.22) (2.05)
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 20.21 $ 21.20 $ 18.93 $ 17.74 $ 20.33 $ 21.95
=========== ======== ======== ======== ======== ========
Total return 2 5.44% 18.25% 16.88% (0.08)% 8.88% 20.80%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 18,659 $ 20,425 $ 22,669 $ 19,999 $ 17,818 $ 17,255
Ratio of expenses to average net assets 2.13% 3 2.17% 2.23% 2.07% 2.08% 2.10%
Ratio of net investment loss
to average net assets (0.95)% 3 (0.97)% (0.86)% (0.63)% (0.50)% (0.43)%
Decrease reflected in above operating
expense ratios due to waivers -- -- 0.04% 0.13% 0.02% --
Portfolio turnover rate 11% 41% 30% 18% 54% 42%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are
not annualized.
3 Annualized.
See Accompanying Notes to Financial Statements.
33
CREDIT SUISSE SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Class C Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000 1
----------- -------- -------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 21.13 $ 18.87 $ 17.69 $ 20.28 $ 21.94 $ 17.96
----------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment loss 2 (0.10) (0.19) (0.15) (0.12) (0.11) (0.07)
Net gain on investments
(both realized and unrealized) 1.29 3.51 2.92 0.32 1.67 4.05
----------- -------- -------- -------- -------- --------
Total from investment operations 1.19 3.32 2.77 0.20 1.56 3.98
----------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions from net realized gains (2.18) (1.06) (1.59) (2.79) (3.22) --
----------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 20.14 $ 21.13 $ 18.87 $ 17.69 $ 20.28 $ 21.94
=========== ======== ======== ======== ======== ========
Total return 3 5.45% 18.25% 16.87% (0.07)% 8.93% 22.16%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 12,942 $ 11,613 $ 8,138 $ 4,271 $ 1,481 $ 220
Ratio of expenses to average net assets 2.13% 4 2.17% 2.23% 2.07% 2.08% 1.42% 4
Ratio of net investment loss
to average net assets (0.95)% 4 (0.97)% (0.86)% (0.63)% (0.52)% (0.33)% 4
Decrease reflected in above operating
expense ratios due to waivers -- -- 0.04% 0.14% 0.02% --
Portfolio turnover rate 11% 41% 30% 18% 54% 42%
- --------------------------------------------------------------------------------
1 For the period February 28, 2000 (inception date) through October 31,
2000.
2 Per share information is calculated using the average shares outstanding
method.
3 Total returns are historical and assume changes in share price,
reinvestment of all 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.
34
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
The Credit Suisse Capital Funds (the "Trust") covered in this report are
Credit Suisse Large Cap Value Fund ("Large Cap Value") and Credit Suisse Small
Cap Value Fund ("Small Cap Value") (each a "Fund" and collectively, the
"Funds"). The Trust is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end management investment company. The
Trust was organized under the laws of the Commonwealth of Massachusetts as a
business trust on November 26, 1985. Each Fund is classified as diversified.
Investment objectives for each Fund are as follows: Large Cap Value seeks
long-term capital appreciation and continuity of income; Small Cap Value seeks a
high level of growth of capital.
Large Cap Value offers five classes of shares: Common Class shares,
Advisor Class shares, Class A shares, Class B shares and Class C shares. Small
Cap Value offers four classes of shares: Common Class shares, Class A shares,
Class B shares and Class C shares. Effective December 12, 2001, Large Cap Value
closed the Common Class to new investments, except for reinvestment of
dividends. Large Cap Value's Common Class shareholders as of the close of
business on December 12, 2001 may continue to hold Common Class shares but may
not add to their accounts. Although no further shares can be purchased, Large
Cap Value's shareholders can redeem their Common Class shares through any
available method. Small Cap Value'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 Small Cap Value and
open new accounts under the same Social Security number. Each class of shares in
each Fund represents an equal pro rata interest in that Fund, except that each
bears different expenses, which reflect the difference in the range of services
provided to them. Class A shares of each Fund are sold subject to a front-end
sales charge of up to 5.75%. Class B shares are sold subject to a contingent
deferred sales charge which declines from 4% to zero depending on the period of
time the
35
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
shares are held. Class C shares of each Fund are sold subject to a contingent
deferred sales charge of 1.00% if redeemed within the first year of purchase.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
A) SECURITY VALUATION -- The net asset value of each Fund is determined
daily as of the close of regular trading on the New York Stock Exchange, Inc.
(the "Exchange") on each day the Exchange is open for business Each Fund's
equity investments are valued at market value, which is generally determined
using the closing price on the exchange or market on which the security is
primarily traded at the time of valuation (the "Valuation Time"). If no sales
are reported, equity investments are generally valued at the most recent bid
quotation as of the Valuation Time or at the lowest asked quotation in the case
of a short sale of securities. Debt securities with a remaining maturity greater
than 60 days are valued in accordance with the price supplied by a pricing
service, which may use a matrix, formula or other objective method that takes
into consideration market indices, yield curves and other specific adjustments.
Debt obligations that will mature in 60 days or less are valued on the basis of
amortized cost, which approximates market value, unless it is determined that
this method would not represent fair value. Securities and other assets for
which market quotations are not readily available, or whose values have been
materially affected by events occurring before the Funds' Valuation Time but
after the close of the securities' primary markets, are valued at fair value as
determined in good faith by, or under the direction of, the Board of Trustees
under procedures established by the Board of Trustees. The Funds may utilize a
service provided by an independent third party which has been approved by the
Board of Trustees to fair value certain securities.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions
are accounted for on a trade date basis. Interest income is recorded on the
accrual basis. Dividends are recorded on the ex-dividend date. Certain expenses
are class-specific and vary by class Income, expenses (excluding class-specific
expenses) and realized/unrealized gains/losses are allocated proportionately to
each class of shares based upon the relative net asset value of outstanding
shares of that class The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes.
36
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income, if any, are declared and paid quarterly by Large Cap Value
and at least annually by Small Cap Value. Distributions of net realized capital
gains, if any, are declared and paid at least annually by the Funds. However, to
the extent that a net realized capital gain can be reduced by a capital loss
carryforward, such gain will not be distributed. Income and capital gain
distributions are determined in accordance with federal income tax regulations,
which may differ from accounting principles generally accepted in the United
States of America (GAAP).
D) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is
each Fund's intention to continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code of
1986, as amended, and to make the requisite distributions to its shareholders
which will be sufficient to relieve it from federal income and excise taxes.
E) USE OF ESTIMATES -- The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.
F) SHORT-TERM INVESTMENTS -- The Funds, together with other
funds/portfolios advised by Credit Suisse Asset Management, LLC ("CSAM"), an
indirect, wholly-owned subsidiary of Credit Suisse Group, pool available cash
into either a short-term variable rate time deposit issued by State Street Bank
and Trust Company ("SSB"), the Funds' custodian, or a money market fund advised
by CSAM. The short-term time deposit issued by SSB is a variable rate account
classified as a short-term investment.
G) SECURITIES LENDING -- Loans of securities are required at all times to
be secured by collateral at least equal to 102% of the market value of domestic
securities on loan (including any accrued interest thereon) and 105% of the
market value of foreign securities on loan (including any accrued interest
thereon). Cash collateral received by the Funds in connection with securities
lending activity may be pooled together with cash collateral for other
funds/portfolios advised by CSAM and may be invested in a variety of
37
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
investments, including certain CSAM-advised funds, funds advised by SSB, the
Funds' securities lending agent, or money market instruments. However, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
SSB has been engaged by the Funds to act as the Funds' securities lending
agent. The Funds' securities lending arrangement provides that the Funds and SSB
will share the net income earned from securities lending activities. During the
six months ended April 30, 2005, total earnings from the Funds' investments in
cash collateral received in connection with Large Cap Value and Small Cap
Value's securities lending arrangements were $145,774 and $384,585,
respectively, of which $129,788 and $368,440, respectively, were rebated to
borrowers (brokers). The Funds retained $11,178 and $11,131, respectively, from
the cash collateral investment and SSB, as lending agent, was paid $4,808, and
$5,014, respectively. The Funds may also be entitled to certain minimum amounts
of income from their securities lending activities. Securities lending is
accrued as earned.
H) OTHER -- Large Cap Value may invest up to 10% and Small Cap Value may
invest up to 15% of its net assets in restricted and other illiquid securities.
Non-publicly traded securities may be less liquid than publicly traded
securities. Although these securities may be resold in privately negotiated
transactions, the prices realized from such sales could differ from the price
originally paid by the Funds or the current carrying values, and the difference
could be material.
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for each Fund. For its investment
advisory services, CSAM is entitled to receive the following fees, computed
daily and payable monthly, on each Fund's average daily net assets as follows:
FUND ANNUAL RATE
---- -----------
Large Cap Value 0.75% of average daily net assets up to
and including $75 million
0.50% of average daily net assets in
excess of $75 million
Small Cap Value 0.875% of first $100 million of average
daily net assets
0.75% of next $100 million of average
daily net assets
0.625% of average daily net assets over
$200 million
38
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
For the six months ended April 30, 2005, investment advisory fees earned
for each Fund were as follows:
FUND GROSS ADVISORY FEE
---- ------------------
Large Cap Value $ 972,914
Small Cap Value 1,121,434
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate
of CSAM, and SSB serve as co-administrators to the Funds.
For its co-administrative services, CSAMSI currently receives a fee
calculated at an annual rate of 0.10% of each Fund's average daily net assets.
For the six months ended April 30, 2005, co-administrative services fees earned
by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Large Cap Value $ 175,987
Small Cap Value 149,676
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 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 fees) were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Large Cap Value $ 112,796
Small Cap Value 97,501
In addition to serving as each Fund's co-administrator, CSAMSI currently
serves as distributor of each Fund's shares. Pursuant to distribution plans
adopted by each Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. This fee is calculated at an annual rate of
0.25% of the average daily net assets of the Common Class of Small Cap Value and
Class A shares of each Fund. Advisor Class shares of Large Cap Value may pay
this fee at an annual rate not to exceed 0.75% of such class's average daily
assets; such fee is currently calculated at the annual rate of 0.50% of the
average daily net assets of such class For Class B and Class C shares, the fee
is calculated at an annual rate of 1.00% of the average daily net assets of such
classes.
Certain brokers, dealers and financial representatives provide transfer
agent--related services to the Funds, and receive compensation from CSAM.
39
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM is then reimbursed by the Funds. For the six months ended April 30,
2005, Small Cap Value reimbursed CSAM the following amount, which is included in
the Fund's transfer agent expense:
FUND AMOUNT
---- --------
Small Cap Value $ 89,361
For the six months ended April 30, 2005, CSAMSI and its affiliates advised
the Funds that they retained the following amounts from commissions earned on
the sale of the Funds' Class A shares:
FUND AMOUNT
---- --------
Large Cap Value $ 10,947
Small Cap Value 11,626
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Funds to provide certain financial printing and fulfillment services. For
the six months ended April 30, 2005, Merrill was paid for its services by the
Funds as follows:
FUND AMOUNT
---- --------
Large Cap Value $ 7,705
Small Cap Value 7,705
NOTE 4. LINE OF CREDIT
The Funds, together with other funds/portfolios advised by CSAM
(collectively, the "Participating Funds"), participate 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 Funds had no
borrowings under the Credit Facility.
40
CREDIT SUISSE FUNDS
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 as follows:
PURCHASES SALES
------------ ------------
Large Cap Value $ 67,610,652 $ 92,964,675
Small Cap Value 32,538,205 43,816,271
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 was as follows:
GROSS UNREALIZED GROSS UNREALIZED NET UNREALIZED
FUND IDENTIFIED COST APPRECIATION (DEPRECIATION) APPRECIATION
----- --------------- ---------------- ----------------- --------------
Large Cap Value $ 275,415,328 $ 84,477,541 $ (8,072,338) $ 76,405,203
Small Cap Value 238,971,143 93,281,205 (6,603,420) 86,677,785
NOTE 6. CAPITAL SHARE TRANSACTIONS
Large Cap Value is authorized to issue an unlimited number of full and
fractional shares of beneficial interest, $0.001 par value per share, of which
an unlimited number of shares are classified as Common Class shares, Advisor
Class shares, Class A shares, Class B shares and Class C shares. Small Cap Value
is authorized to issue an unlimited number of full and fractional shares of
beneficial interest, $.001 par value per share, of which an unlimited number of
shares are classified as Common Class shares, Class A shares, Class B shares and
Class C shares. Transactions in capital shares of the Funds were as follows:
LARGE CAP VALUE
---------------------------------------------------------
COMMON CLASS
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares issued in reinvestment of
dividends and distributions 2,307 $ 45,833 1,301 $ 24,882
Shares redeemed (2,403) (48,650) (7,655) (148,490)
------------ ------------ ------------ ------------
Net decrease (96) $ (2,817) (6,354) $ (123,608)
============ ============ ============ ============
41
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS
LARGE CAP VALUE
---------------------------------------------------------
ADVISOR CLASS
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares sold 38,275 $ 786,242 93,310 $ 1,829,621
Shares issued in reinvestment of
dividends and distributions 38,842 775,622 36,998 706,961
Shares redeemed (233,602) (4,777,772) (715,248) (14,140,852)
------------ ------------ ------------ ------------
Net decrease (156,485) $ (3,215,908) (584,940) $(11,604,270)
============ ============ ============ ============
LARGE CAP VALUE
---------------------------------------------------------
CLASS A
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares sold 704,449 $ 14,467,168 1,319,472 $ 26,008,199
Shares issued in reinvestment of
dividends and distributions 1,011,933 20,176,895 531,611 10,191,675
Shares redeemed (1,610,562) (32,956,666) (3,152,005) (61,935,697)
------------ ------------ ------------ ------------
Net increase (decrease) 105,820 $ 1,687,397 (1,300,922) $(25,735,823)
============ ============ ============ ============
LARGE CAP VALUE
---------------------------------------------------------
CLASS B
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares sold 44,802 $ 897,358 86,581 $ 1,671,302
Shares issued in reinvestment of
dividends and distributions 64,892 1,274,650 38,328 719,319
Shares redeemed (257,698) (5,237,307) (465,367) (9,028,287)
------------ ------------ ------------ ------------
Net decrease (148,004) $ (3,065,299) (340,458) $ (6,637,666)
============ ============ ============ ============
LARGE CAP VALUE
---------------------------------------------------------
CLASS C
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares sold 17,980 $ 356,678 61,896 $ 1,191,147
Shares issued in reinvestment of
dividends and distributions 11,177 218,425 4,557 85,152
Shares redeemed (26,201) (522,599) (66,298) (1,273,105)
------------ ------------ ------------ ------------
Net increase 2,956 $ 52,504 155 $ 3,194
============ ============ ============ ============
42
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
- --------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS
SMALL CAP VALUE
---------------------------------------------------------
COMMON CLASS
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares sold 628,318 $ 14,597,474 649,415 $ 14,092,209
Shares issued in reinvestment of
dividends and distributions 223,428 4,957,871 121,963 2,461,214
Shares redeemed (298,034) (6,784,771) (957,605) (20,733,147)
------------ ------------ ------------ ------------
Net increase (decrease) 553,712 $ 12,770,574 (186,227) $ (4,179,724)
============ ============ ============ ============
SMALL CAP VALUE
---------------------------------------------------------
CLASS A
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares sold 1,343,641 $ 30,976,627 2,507,834 $ 53,689,869
Shares issued in reinvestment of
dividends and distributions 785,344 17,505,316 461,139 9,342,671
Shares redeemed (1,621,711) (37,418,923) (3,602,673) (77,659,751)
------------ ------------ ------------ ------------
Net increase (decrease) 507,274 $ 11,063,020 (633,700) $(14,627,211)
============ ============ ============ ============
SMALL CAP VALUE
---------------------------------------------------------
CLASS B
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares sold 55,507 $ 1,177,599 76,218 $ 1,522,417
Shares issued in reinvestment of
distributions 82,688 1,703,368 56,847 1,080,090
Shares redeemed (178,398) (3,832,623) (367,111) (7,409,177)
------------ ------------ ------------ ------------
Net decrease (40,203) $ (951,656) (234,046) $ (4,806,670)
============ ============ ============ ============
SMALL CAP VALUE
---------------------------------------------------------
CLASS C
---------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
---------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------
Shares sold 109,850 $ 2,322,298 202,943 $ 4,051,369
Shares issued in reinvestment of
distributions 34,443 707,116 17,853 338,141
Shares redeemed (51,214) (1,068,673) (102,474) (2,076,291)
------------ ------------ ------------ ------------
Net increase 93,079 $ 1,960,741 118,322 $ 2,313,219
============ ============ ============ ============
43
CREDIT SUISSE FUNDS
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 Funds was as follows:
NUMBER OF APPROXIMATE PERCENTAGE
FUND SHAREHOLDERS OF OUTSTANDING SHARES
---- ------------ ----------------------
Large Cap Value
Common Class 4 48%
Advisor Class 1 95%
Class A 2 20%
Class B 1 7%
Class C 3 25%
Small Cap Value
Common Class 4 76%
Class A 1 5%
Class B 1 5%
Class C 1 9%
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 Funds may provide general
indemnifications pursuant to certain contracts and organizational documents. A
Fund's maximum exposure under these arrangements is dependent on future claims
that may be made against the Fund's and, therefore, cannot be estimated;
however, based on experience, the risk of loss from such claims is considered
remote.
44
CREDIT SUISSE FUNDS
BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
In approving the Advisory Agreement for each Fund, the Board of Trustees
of each Fund, including the Independent Trustees, considered the following
factors:
INVESTMENT ADVISORY FEE RATES
-----------------------------
The Boards reviewed and considered the contractual advisory fee rates of
0.55% and 0.76% paid by Large Cap Value and Small Cap Value, respectively (each,
a "Contractual Advisory Fee") to CSAM in light of the extent and quality of the
advisory services provided.
Additionally, the Boards received and considered information comparing
each Fund's Contractual Advisory Fee and each 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 AGREEMENTS
------------------------------------------------------------------------
The Boards received and considered information regarding the nature,
extent and quality of services provided to each Fund by CSAM under the Advisory
Agreements. The Boards also noted information received at regular meetings
throughout the year related to the services rendered by CSAM. The Boards
reviewed background information about CSAM, including its Form ADV. The Boards
considered the background and experience of CSAM's senior management and the
expertise of, and the amount of attention given to each Fund by, senior
personnel of CSAM. In addition, the Boards reviewed the qualifications,
background and responsibilities of the portfolio management teams primarily
responsible for the day-to-day portfolio management of each Fund and the extent
of the resources devoted to research and analysis of actual and potential
investments. The Boards 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 Boards received and considered the one-year, five-year and ten-year
performance of each Fund, along with comparisons, for all presented periods,
both to the Peer Group and the Universe. The Boards were provided with a
description of the methodology used to arrive at the data for the funds included
in the Peer Group and the Universe.
45
CREDIT SUISSE FUNDS
BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
The Boards reviewed information comparing the performance of the various
Credit Suisse Funds to performance benchmarks that the Boards had previously
established and progress that had been made in certain instances toward
achieving those benchmarks. The Boards also reviewed comparisons between each
Fund and its identified benchmark over various time periods.
CSAM PROFITABILITY
------------------
The Boards received and considered a detailed profitability analysis of
CSAM based on the fees payable under the Advisory Agreements for each Fund, as
well as other relationships between each Fund on the one hand and CSAM
affiliates on the other. The Boards received profitability information for the
other funds in the CSAM family of funds (the "Fund Complex").
ECONOMIES OF SCALE
------------------
The Boards considered whether economies of scale in the provision of
services to each Fund were being passed along to the shareholders. Accordingly,
the Boards 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
each Fund's asset levels.
OTHER BENEFITS TO CSAM
----------------------
The Boards considered other benefits received by CSAM and its affiliates
as a result of its relationship with each Fund. Such benefits include, among
others, research arrangements with brokers who execute transactions on behalf of
each 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 each Fund (such as the ability to market to
shareholders other financial products offered by CSAM and its affiliates).
The Boards considered the standards applied in seeking best execution,
whether and to what extent soft dollar credits are sought and how any such
credits are utilized, any benefits that may be achieved by using an affiliated
broker and the existence of quality controls applicable to brokerage allocation
procedures. The Boards also reviewed CSAM's method for allocating portfolio
investment opportunities among each Fund and other advisory clients.
46
CREDIT SUISSE FUNDS
BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
CONCLUSIONS
-----------
In selecting CSAM, and approving the Advisory Agreements and the
investment advisory fee under such agreement, the Boards concluded that:
LARGE CAP VALUE
o the Contractual Advisory Fee level was considered reasonable given
that it was in the second quintile of the Fund's Peer Group.
o the Fund's ten-year performance was the best in its Peer Group,
although the Fund's one and five-year performance was at
approximately the median of its Peer Group. The Board considered the
improvements in the Fund's recent performance to be a positive
reflection of the enhanced research and portfolio management changes
instituted by CSAM.
SMALL CAP VALUE
o the Contractual Advisory Fee level was considered reasonable given
that it was slightly above the median of the Fund's Peer Group.
o the Fund's one, five and ten-year performance lagged that of its
Peer Group and benchmark. The Board discussed the underperformance
with CSAM, and CSAM subsequently advised the Board that changes in
the methodology for managing the Fund are under review in order to
address the underperformance.
BOTH FUNDS
o aside from performance (as discussed above), the Boards were
satisfied with the nature and extent of the investment advisory
services provided to each Fund by CSAM and that, based on dialogue
with management and counsel, the services provided by CSAM under the
Advisory Agreements are typical of, and consistent with, those
provided to similar mutual funds by other investment advisers. The
Boards understood that CSAM had addressed or was in the process of
addressing any performance issues.
o in light of the costs of providing investment management and other
services to each Fund and CSAM's ongoing commitment to each Fund,
the profits and other ancillary benefits that CSAM and its
affiliates received were considered reasonable.
47
CREDIT SUISSE FUNDS
BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
o CSAM's profitability based on fees payable under the Advisory
Agreements was reasonable in light of the nature, extent and quality
of the services provided to each Fund thereunder.
No single factor reviewed by the Boards was identified by the Boards as
the principal factor in determining whether to approve the Advisory Agreements.
The Independent Trustees were advised by separate independent legal counsel
throughout the process.
48
CREDIT SUISSE FUNDS
PRIVACY POLICY NOTICE (UNAUDITED)
- --------------------------------------------------------------------------------
IMPORTANT PRIVACY CHOICES FOR CONSUMERS
---------------------------------------
We are committed to maintaining the privacy of every current and
prospective customer. We recognize that you entrust important personal
information to us, and we wish to assure you that we take seriously our
responsibilities in protecting and safeguarding this information.
In connection with making available investment products and services to
current and potential customers, we may obtain nonpublic personal information
about you. This information may include your name, address, e-mail address,
social security number, account number, assets, income, financial situation,
transaction history and other personal information.
We may collect nonpublic information about you from the following sources:
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.
49
CREDIT SUISSE FUNDS
PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Information regarding how each 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 each 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 Funds' 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.
50
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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. USEQVAL-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 Capital Funds
/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