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. 811-5041
---------------------------------------------------------------------
CREDIT SUISSE CAPITAL APPRECIATION FUND
------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
-------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
J. Kevin Gao, Esq.
Credit Suisse Capital Appreciation Fund
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: October 31st
Date of reporting period: November 1, 2004 to October 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
CREDIT | ASSET
SUISSE | MANAGEMENT
CREDIT SUISSE FUNDS
Annual Report
October 31, 2005
o CREDIT SUISSE
CAPITAL APPRECIATION FUND
o CREDIT SUISSE
MID-CAP GROWTH FUND
o CREDIT SUISSE
SMALL CAP GROWTH 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 letter and fund
holdings described in this document are as of october 31, 2005; these views and
fund holdings may have changed subsequent to these dates. Nothing in this
document is a recommendation to purchase or sell securities.
Fund shares are not deposits or other obligations of credit suisse asset
management, llc ("csam") or any affiliate, are not fdic-insured and are not
guaranteed by csam or any affiliate. Fund investments are subject to investment
risks, including loss of your investment.
CREDIT SUISSE CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
November 21, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/04 - 10/31/05
SHARE CLASS/BENCHMARK PERFORMANCE
Common 1 8.06%
Advisor 1 7.58%
Class A 1,2 7.86%
Class B 1,2 6.95%
Class C 1,2 7.02%
Russell 1000(R) Growth Index 3 8.81%
Performance for the Fund's Class A, Class B 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 LACKLUSTER FINISH
The period was an overall positive one for the US stock market, though the
upward path was not smooth. Stocks initially surged in the wake of a decisive
Presidential election, but then fell early in 2005 when inflation and
interest-rate worries raised risk thresholds. The market rallied into the
summer, however, aided by benign inflation data and good earnings reports from a
number of visible companies. Hurricane activity and a surge in oil prices caused
the market to weaken again late in the period. The Federal Reserve, meanwhile,
continued to raise short-term interest rates in small but steady increments. In
the face of all this, the economy nonetheless appeared resilient, at least as of
late October 2005: Third-quarter GDP growth was reported at an annualized rate
of 3.9%, the tenth consecutive quarter of 3% or greater growth.
From a sector perspective, energy stocks as a group had the best
performance, buoyed by high oil and natural gas prices, while consumer
discretionary stocks were among the underperformers. Value stocks generally
outperformed growth stocks for the 12-month period, in part reflecting the
outperformance of energy stocks, which comprise a larger share of the value
universe.
STRATEGIC REVIEW: FOCUS ON COMPANY FUNDAMENTALS
The Fund had a gain but trailed its benchmark, which we attribute
primarily to underperformance from the Fund's consumer discretionary and
financial services stocks. The Fund was also underweighted in health-care
services and
1
CREDIT SUISSE CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
pharmaceutical stocks, early in the period, when such stocks outperformed. On
the positive side, the Fund's materials, consumer staples and technology
holdings had good performance. In addition, the Fund had a small but
strong-performing position in the transportation sector during the period.
Our noteworthy recent portfolio activity included establishing a position
in Northern Trust (1.3% of the Fund's net assets as of October 31, 2005), which
we deemed to be attractively priced relative to its growth prospects, most
particularly within its high-net-worth client business. The company's potential
to benefit from consolidation activity is also a factor in our view. In the
retail area we added Home Depot (1.8% of the Fund's net assets as of October 31,
2005), viewing it as attractive based on the health of its business and the
company's efforts to control expenses. Our sales included Harrah's Entertainment
and Starwood Hotels, which in our estimation had become fully valued.
Going forward, we will continue to adhere to our general strategy of
seeking sectors and companies with the potential to outperform the overall
market. We look for stocks available at a reasonable price relative to projected
growth, while employing themes or patterns associated with growth companies,
such as significant fundamental changes, generation of large free cash flows or
company share-buyback programs.
Marian U. Pardo
Jeffrey T. Rose
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 CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE CAPITAL APPRECIATION FUND 1 COMMON CLASS SHARES, ADVISOR
CLASS SHARES AND THE RUSSELL 1000(R) GROWTH INDEX 3 FOR TEN YEARS.
[LINE GRAPH]
Credit Suisse Credit Suisse Russell 1000
Capital Appreciation Capital Appreciation Growth
Date Fund 1 - Common Class Fund 1 - Advisor Class Index 3
-------- -------------------- ---------------------- -------------
10/95 $10,000 $10,000 $10,000
$10,445 $10,443 $10,389
$10,640 $10,637 $10,448
$11,001 $10,994 $10,798
$11,300 $11,288 $10,995
$11,522 $11,505 $11,009
$11,661 $11,638 $11,299
$11,883 $11,855 $11,694
$11,738 $11,708 $11,710
$11,217 $11,183 $11,024
$11,640 $11,603 $11,308
$12,370 $12,324 $12,132
10/96 $12,467 $12,415 $12,205
$13,231 $13,165 $13,121
$13,116 $13,053 $12,864
$13,619 $13,550 $13,766
$13,735 $13,659 $13,673
$13,224 $13,146 $12,933
$13,836 $13,745 $13,792
$14,579 $14,475 $14,787
$15,121 $15,012 $15,379
$16,499 $16,372 $16,739
$15,795 $15,665 $15,760
$16,848 $16,706 $16,535
10/97 $16,329 $16,186 $15,924
$16,770 $16,613 $16,600
$17,233 $17,069 $16,786
$17,138 $16,965 $17,288
$18,242 $18,052 $18,588
$19,157 $18,950 $19,329
$19,600 $19,385 $19,597
$19,128 $18,913 $19,041
$20,138 $19,905 $20,207
$20,194 $19,943 $20,073
$16,676 $16,463 $17,060
$17,846 $17,617 $18,370
10/98 $18,412 $18,165 $19,847
$19,609 $19,348 $21,358
$21,672 $21,371 $23,284
$23,033 $22,696 $24,652
$22,116 $21,786 $23,526
$23,230 $22,874 $24,765
$23,457 $23,091 $24,796
$22,836 $22,468 $24,034
$24,276 $23,873 $25,718
$23,911 $23,507 $24,900
$23,911 $23,497 $25,307
$24,167 $23,744 $24,775
10/99 $25,459 $25,000 $26,647
$27,096 $26,592 $28,084
$32,130 $31,515 $31,005
$31,145 $30,551 $29,551
$35,470 $34,766 $30,996
$36,653 $35,915 $33,215
$33,576 $32,883 $31,634
$31,856 $31,186 $30,041
$34,233 $33,496 $32,317
$34,047 $33,310 $30,970
$37,288 $36,462 $33,774
$35,087 $34,306 $30,579
10/00 $33,477 $32,708 $29,133
$29,863 $29,172 $24,839
$30,446 $29,729 $24,054
$30,446 $29,717 $25,716
$27,472 $26,803 $21,349
$25,451 $24,813 $19,027
$27,588 $26,893 $21,433
$27,202 $26,507 $21,118
$26,210 $25,519 $20,628
$24,897 $24,235 $20,113
$22,902 $22,284 $18,467
$20,121 $19,576 $16,624
10/01 $20,894 $20,307 $17,497
$22,851 $22,207 $19,178
$23,032 $22,376 $19,142
$22,118 $21,477 $18,804
$20,985 $20,373 $18,024
$21,526 $20,886 $18,647
$19,827 $19,230 $17,126
$19,337 $18,743 $16,711
$17,355 $16,830 $15,165
$16,209 $15,700 $14,331
$16,247 $15,739 $14,374
$14,947 $14,468 $12,884
10/02 $16,132 $15,610 $14,065
$16,750 $16,201 $14,829
$15,642 $15,123 $13,804
$15,449 $14,930 $13,469
$15,333 $14,814 $13,407
$15,411 $14,891 $13,656
$16,389 $15,816 $14,665
$17,213 $16,599 $15,397
$17,677 $17,048 $15,610
$18,282 $17,613 $15,998
$18,449 $17,780 $16,397
$17,960 $17,292 $16,221
10/03 $18,990 $18,280 $17,133
$19,221 $18,486 $17,313
$19,711 $18,961 $17,912
$20,058 $19,282 $18,277
$20,264 $19,474 $18,394
$19,942 $19,153 $18,052
$19,724 $18,935 $17,843
$20,200 $19,385 $18,174
$20,560 $19,731 $18,402
$19,427 $18,627 $17,362
$18,912 $18,126 $17,277
$19,505 $18,691 $17,441
10/04 $19,646 $18,807 $17,713
$20,586 $19,705 $18,322
$21,629 $20,694 $19,041
$20,548 $19,654 $18,407
$20,625 $19,718 $18,602
$20,187 $19,295 $18,263
$19,839 $18,948 $17,916
$20,779 $19,834 $18,783
$20,779 $19,834 $18,714
$21,603 $20,617 $19,629
$21,552 $20,553 $19,376
$21,577 $20,578 $19,465
10/05 $21,230 $20,232 $19,276
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE CAPITAL APPRECIATION FUND 1 CLASS A, B, C SHARES 2
AND THE RUSSELL 1000(R) GROWTH INDEX 3,6 FROM INCEPTION (11/30/01).
[LINE GRAPH]
Credit Suisse Credit Suisse Credit Suisse
Capital Appreciation Capital Appreciation Capital Appreciation
Fund 1 - Class A 2 Fund 1 - Class B 2 Fund 1 - Class C 2 Russell 1000
(with maximum sales (with maximum contingent (with maximum contigent Growth
Date charge) deferred sales charge) deferred sales charge) Index 3,6
-------- -------------------- ------------------------ ----------------------- -------------
11/01 $9,425 $10,000 $10,000 $10,000
$9,496 $10,068 $10,068 $ 9,981
$9,119 $ 9,663 $ 9,663 $ 9,805
$8,652 $ 9,161 $ 9,161 $ 9,398
$8,869 $ 9,387 $ 9,387 $ 9,723
$8,168 $ 8,637 $ 8,637 $ 8,930
$7,961 $ 8,417 $ 8,417 $ 8,714
$7,149 $ 7,555 $ 7,550 $ 7,908
$6,676 $ 7,043 $ 7,043 $ 7,473
$6,692 $ 7,060 $ 7,060 $ 7,495
$6,150 $ 6,485 $ 6,485 $ 6,718
10/02 $6,639 $ 6,992 $ 6,992 $ 7,334
$6,894 $ 7,262 $ 7,257 $ 7,732
$6,437 $ 6,772 $ 6,772 $ 7,198
$6,352 $ 6,682 $ 6,682 $ 7,023
$6,304 $ 6,626 $ 6,626 $ 6,991
$6,336 $ 6,660 $ 6,654 $ 7,121
$6,740 $ 7,071 $ 7,071 $ 7,647
$7,074 $ 7,420 $ 7,415 $ 8,029
$7,265 $ 7,617 $ 7,612 $ 8,139
$7,510 $ 7,865 $ 7,865 $ 8,342
$7,579 $ 7,939 $ 7,933 $ 8,550
$7,377 $ 7,719 $ 7,713 $ 8,458
10/03 $7,797 $ 8,153 $ 8,153 $ 8,934
$7,887 $ 8,243 $ 8,243 $ 9,027
$8,089 $ 8,451 $ 8,446 $ 9,340
$8,232 $ 8,592 $ 8,586 $ 9,530
$8,312 $ 8,665 $ 8,665 $ 9,591
$8,179 $ 8,525 $ 8,525 $ 9,413
$8,089 $ 8,423 $ 8,423 $ 9,304
$8,280 $ 8,620 $ 8,615 $ 9,477
$8,429 $ 8,767 $ 8,767 $ 9,595
$7,961 $ 8,277 $ 8,271 $ 9,053
$7,749 $ 8,051 $ 8,051 $ 9,009
$7,988 $ 8,299 $ 8,299 $ 9,094
10/04 $8,041 $ 8,350 $ 8,344 $ 9,236
$8,429 $ 8,739 $ 8,739 $ 9,554
$8,853 $ 9,178 $ 9,172 $ 9,928
$8,407 $ 8,710 $ 8,710 $ 9,598
$8,439 $ 8,739 $ 8,733 $ 9,699
$8,259 $ 8,547 $ 8,541 $ 9,523
$8,110 $ 8,389 $ 8,389 $ 9,342
$8,492 $ 8,778 $ 8,778 $ 9,794
$8,492 $ 8,772 $ 8,772 $ 9,758
$8,832 $ 9,116 $ 9,110 $10,235
$8,806 $ 9,082 $ 9,082 $10,103
$8,816 $ 9,088 $ 9,088 $10,150
10/05 $8,673 $ 8,841 $ 8,930 $10,051
3
CREDIT SUISSE CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2005 1
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 4 10.63% (9.27)% 8.02% 9.33%
Advisor Class 5 10.10% (9.72)% 7.50% 9.00%
Class A Without Sales Charge 10.37% -- -- (1.73)%
Class A With Maximum Sales Charge 4.01% -- -- (3.23)%
Class B Without CDSC 9.50% -- -- (2.46)%
Class B With CDSC 5.50% -- -- (2.72)%
Class C Without CDSC 9.50% -- -- (2.46)%
Class C With CDSC 8.50% -- -- (2.46)%
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2005 1
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 4 8.06% (8.71)% 7.82% 9.18%
Advisor Class 5 7.58% (9.16)% 7.30% 8.82%
Class A Without Sales Charge 7.86% -- -- (2.10)%
Class A With Maximum Sales Charge 1.68% -- -- (3.57)%
Class B Without CDSC 6.95% -- -- (2.84)%
Class B With CDSC 2.95% -- -- (3.09)%
Class C Without CDSC 7.02% -- -- (2.84)%
Class C With CDSC 6.02% -- -- (2.84)%
Returns represent past performance and include change in share price and
reinvestment of dividends and capital gains. Past performance cannot guarantee
future results. The current performance of the fund may be lower or higher than
the figures shown. Returns and share price will fluctuate, and redemption value
may be less than original cost. The performance results do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. Performance information current to the most recent
month-end is available at www.Csam.Com/us.
_________________
1 Fee waivers and/or expense reimbursements may reduce expenses for the
Fund, without which performance would be lower. Waivers 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 1.68%. Total
return for Class B Shares for the reporting period, based on redemption
value (including maximum contingent deferred sales charge of 4%), was
2.95%. Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 6.02%.
3 The Russell 1000(R) Growth Index measures the performance of those
companies in the Russell 1000(R) Index with higher price-to-book ratios
and higher 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 Inception Date: 8/17/87.
5 Inception Date: 4/4/91.
6 Performance for the benchmark is not available for the period beginning
November 30, 2001. For that reason, performance is shown for the period
beginning December 1, 2001.
4
CREDIT SUISSE CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 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
October 31, 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 CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
FOR THE SIX MONTH PERIOD ENDED OCTOBER 31, 2005
- --------------------------------------------------------------------------------
COMMON ADVISOR
ACTUAL FUND RETURN CLASS CLASS CLASS A CLASS B CLASS C
--------- --------- --------- --------- ---------
Beginning Account
Value 5/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account
Value 10/31/05 $1,070.10 $1,067.80 $1,069.40 $1,064.50 $1,064.50
Expenses Paid per $1,000* $ 6.16 $ 8.76 $ 7.41 $ 11.34 $ 11.40
HYPOTHETICAL 5% FUND RETURN
Beginning Account
Value 5/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account
Value 10/31/05 $1,019.26 $1,016.74 $1,018.05 $1,014.22 $1,014.17
Expenses Paid per $1,000* $ 6.01 $ 8.54 $ 7.22 $ 11.07 $ 11.12
COMMON ADVISOR
CLASS CLASS CLASS A CLASS B CLASS C
--------- --------- --------- --------- ---------
ANNUALIZED EXPENSE RATIOS* 1.18% 1.68% 1.42% 2.18% 2.19%
_____________
* 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 CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
SECTOR BREAKDOWN*
[BAR CHART]
Health Care 24.2%
Technology 23.4%
Consumer Discretionary 17.1%
Financial Services 8.4%
Consumer Staples 7.6%
Produces Durables 5.9%
Materials & Processing 5.0%
Other Energy 4.2%
Short-Term Investments 2.6%
Other 1.0%
_____________
* Expressed as a percentage of total investments (excluding security lending
collateral) and may vary over time.
7
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
November 21, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/04 - 10/31/05
SHARE CLASS/BENCHMARK PERFORMANCE
Common 1 12.95%
Advisor 1 12.38%
Class A 1,2 12.68%
Class B 1,2 11.83%
Class C 1,2 11.71%
Russell 2500 TM Growth Index 3 13.83%
Russell Midcap(R) Growth Index 4 15.91%
Performance for the Fund's Class A, Class B 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 LACKLUSTER FINISH
The period was an overall positive one for the US stock market, though the
upward path was not smooth. Stocks initially surged in the wake of a decisive
Presidential election, but then fell early in 2005 when inflation and
interest-rate worries raised risk thresholds. The market rallied into the
summer, however, aided by benign inflation data and good earnings reports from a
number of visible companies. Hurricane activity and a surge in oil prices caused
the market to weaken again late in the period. The Federal Reserve, meanwhile,
continued to raise short-term interest rates in small but steady increments. In
the face of all this, the economy nonetheless appeared resilient, at least as of
late October 2005: Third-quarter GDP growth was reported at an annualized rate
of 3.9%, the tenth consecutive quarter of 3% or greater growth.
From a sector perspective, energy stocks as a group had the best
performance, buoyed by high oil and natural gas prices, while consumer
discretionary stocks were among the underperformers. Value stocks generally
outperformed growth stocks for the 12-month period, in part reflecting the
outperformance of energy stocks, which comprise a larger share of the value
universe.
STRATEGIC REVIEW: CONSUMER STOCK GAINS OFFSET BY HEALTH CARE DECLINE
The Fund participated in the market's rally but underperformed its
benchmarks, which we attribute primarily to weakness in certain health care
8
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
holdings, including Amerigroup (we eliminated the position after the end of the
period). The stock had a sizable decline as rising medical costs weighed on the
managed care company's earnings. In addition, the Fund's financial services
holdings collectively had a gain, but underperformed. On the positive side,
strong stock selection in the consumer discretionary and consumer staples
sectors aided the Fund's relative performance. The Fund's technology holdings
also outperformed.
With regard to recent portfolio activity, noteworthy purchases we made
included Mellon Financial (1.7% of the Fund's net assets as of October 31,
2005). We deemed the company to be compelling based on its diverse
asset-management operations, potential to benefit from pension reforms, and its
divesting of what we considered to be non-strategic businesses. Another new
holding was Forest Laboratories (2.1% of the Fund's net assets as of October 31,
2005), which we added after the stock had declined to reach an attractive
valuation. We believe the company is well positioned from the growth of generic
drugs as health care consumers seek to control costs. Our late-period sales
included NCR Corp., a manufacturer of ATM machines. We opted to take profits in
the position based on our concerns regarding demand trends for its products.
Going forward, we will continue to seek to identify companies with
attractive capital-growth potential. Our stock-selection process emphasizes
companies we believe to have accelerating earnings, improving fundamentals,
competent management and compelling business models, including companies still
in their developmental stage as well as older companies that appear to be
entering a new stage of growth.
The Credit Suisse Mid-Cap Growth Team
Marian U. Pardo
Leo M. Bernstein
Calvin E. Chung
Eric M. Wiegand
9
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
INVESTING IN SMALL TO MEDIUM-SIZED 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.
10
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE MID-CAP GROWTH FUND 1 COMMON CLASS SHARES, ADVISOR
CLASS SHARES, THE RUSSELL 2500 TM GROWTH INDEX 3 AND THE RUSSELL MIDCAP(R)
GROWTH INDEX 4 FOR TEN YEARS.
[LINE GRAPH]
Credit Suisse Credit Suisse Russell 2500 Russell MidCap(R)
Mid-Cap Growth Fund 1 Mid-Cap Growth Fund 1 TM Growth Growth
Date - Common Class - Advisor Class Index 3 Index 4
-------- -------------------- ------------------- ------------ -----------------
10/95 $10,000 $10,000 $10,000 $10,000
$10,257 $10,252 $10,409 $10,447
$10,729 $10,723 $10,547 $10,453
$10,580 $10,567 $10,580 $10,637
$10,984 $10,969 $11,045 $11,040
$11,171 $11,153 $11,285 $11,127
$12,106 $12,079 $12,058 $11,664
$12,265 $12,235 $12,488 $11,902
$11,809 $11,775 $11,862 $11,543
$10,534 $10,499 $10,683 $10,647
$11,154 $11,110 $11,419 $11,222
$11,780 $11,728 $12,025 $11,935
10/96 $11,614 $11,569 $11,651 $11,795
$11,688 $11,638 $12,078 $12,490
$11,788 $11,733 $12,137 $12,279
$12,217 $12,157 $12,500 $12,823
$11,674 $11,609 $11,952 $12,540
$11,000 $10,935 $11,166 $11,832
$11,025 $10,957 $11,216 $12,122
$12,270 $12,189 $12,560 $13,208
$12,781 $12,693 $12,981 $13,573
$13,527 $13,429 $13,805 $14,872
$13,811 $13,704 $14,141 $14,727
$14,843 $14,726 $15,140 $15,473
10/97 $14,073 $13,954 $14,196 $14,698
$13,988 $13,867 $13,978 $14,852
$14,295 $14,166 $13,928 $15,047
$13,935 $13,806 $13,746 $14,776
$15,328 $15,181 $14,926 $16,166
$16,054 $15,897 $15,480 $16,843
$16,202 $16,037 $15,621 $17,072
$15,222 $15,061 $14,618 $16,370
$15,858 $15,684 $14,725 $16,833
$14,631 $14,464 $13,629 $16,112
$11,759 $11,621 $10,532 $13,037
$12,205 $12,059 $11,455 $14,023
10/98 $12,750 $12,593 $12,229 $15,055
$13,534 $13,360 $13,099 $16,071
$15,127 $14,929 $14,360 $17,735
$15,358 $15,154 $14,775 $18,267
$13,829 $13,635 $13,576 $17,374
$14,560 $14,352 $14,209 $18,341
$14,560 $14,348 $15,342 $19,177
$14,802 $14,580 $15,501 $18,930
$15,952 $15,704 $16,596 $20,252
$15,733 $15,483 $16,258 $19,607
$15,381 $15,130 $15,907 $19,403
$15,396 $15,138 $16,020 $19,238
10/99 $16,550 $16,265 $16,801 $20,726
$18,355 $18,032 $18,784 $22,872
$21,451 $21,063 $22,327 $26,832
$20,754 $20,372 $22,202 $26,827
$24,971 $24,501 $27,897 $32,466
$24,145 $23,683 $25,709 $32,498
$21,619 $21,196 $23,204 $29,343
$20,049 $19,650 $21,138 $27,204
$22,290 $21,838 $23,932 $30,090
$21,512 $21,063 $21,971 $28,185
$24,089 $23,577 $24,835 $32,436
$23,904 $23,383 $23,229 $30,850
10/00 $21,615 $21,138 $21,792 $28,739
$17,592 $17,199 $17,641 $22,494
$18,871 $18,446 $18,734 $23,680
$18,693 $18,257 $19,948 $25,033
$15,318 $14,960 $16,870 $20,702
$13,630 $13,304 $15,003 $17,739
$15,339 $14,960 $17,290 $20,696
$15,092 $14,712 $17,791 $20,599
$15,081 $14,701 $18,195 $20,609
$14,282 $13,919 $16,854 $19,220
$13,467 $13,115 $15,733 $17,827
$11,570 $11,265 $13,270 $14,880
10/01 $12,406 $12,074 $14,578 $16,444
$13,625 $13,256 $15,838 $18,215
$14,189 $13,797 $16,706 $18,908
$13,585 $13,208 $15,992 $18,293
$12,806 $12,442 $15,004 $17,256
$13,521 $13,133 $16,212 $18,573
$13,322 $12,933 $15,673 $17,590
$12,728 $12,351 $14,884 $17,066
$11,808 $11,455 $13,516 $15,182
$10,010 $ 9,707 $11,837 $13,706
$10,046 $ 9,739 $11,835 $13,658
$ 9,352 $ 9,065 $10,940 $12,574
10/02 $ 9,978 $ 9,658 $11,569 $13,548
$10,598 $10,257 $12,645 $14,609
$ 9,910 $ 9,583 $11,846 $13,727
$ 9,978 $ 9,647 $11,588 $13,592
$ 9,852 $ 9,518 $11,318 $13,474
$ 9,952 $ 9,615 $11,467 $13,725
$10,672 $10,306 $12,467 $14,659
$11,745 $11,336 $13,788 $16,070
$11,981 $11,563 $14,072 $16,299
$12,554 $12,108 $15,010 $16,881
$13,264 $12,788 $15,814 $17,811
$12,817 $12,351 $15,474 $17,466
10/03 $14,084 $13,565 $16,746 $18,874
$14,399 $13,861 $17,312 $19,379
$14,405 $13,867 $17,331 $19,591
$15,241 $14,660 $18,054 $20,237
$15,419 $14,827 $18,222 $20,577
$15,666 $15,059 $18,286 $20,538
$14,830 $14,250 $17,510 $19,959
$15,088 $14,493 $17,875 $20,430
$15,409 $14,789 $18,311 $20,755
$14,094 $13,521 $16,877 $19,381
$13,679 $13,122 $16,538 $19,142
$14,215 $13,629 $17,284 $19,856
10/04 $14,741 $14,126 $17,774 $20,530
$15,530 $14,876 $18,953 $21,589
$16,360 $15,669 $19,861 $22,623
$16,024 $15,340 $19,160 $22,017
$16,376 $15,669 $19,541 $22,574
$16,024 $15,324 $19,002 $22,244
$15,419 $14,741 $17,975 $21,363
$16,429 $15,696 $19,173 $22,587
$16,597 $15,858 $19,679 $23,007
$17,333 $16,548 $20,956 $24,349
$17,522 $16,721 $20,715 $24,200
$17,270 $16,478 $20,916 $24,512
10/05 $16,649 $15,874 $20,232 $23,792
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE MID-CAP GROWTH FUND 1 CLASS A SHARES 2, THE RUSSELL 2500 TM
GROWTH INDEX 3,7 AND THE RUSSELL MIDCAP(R) GROWTH INDEX 4,7
FROM INCEPTION (11/30/01).
[LINE GRAPH]
Credit Suisse Russell
Mid-Cap Growth Fund Russell 2500 MidCap(R)
1 - Class A 2 (with TM Growth Growth
Date maximum sales charge) Index 3,7 Index 4,7
-------- ---------------------- ---------------- -----------
11/01 $ 9,425 $10,000 $10,000
$ 9,812 $10,548 $10,380
$ 9,390 $10,098 $10,043
$ 8,848 $ 9,474 $ 9,474
$ 9,339 $10,236 $10,196
$ 9,197 $ 9,896 $ 9,657
$ 8,786 $ 9,398 $ 9,369
$ 8,146 $ 8,534 $ 8,335
$ 6,903 $ 7,474 $ 7,525
$ 6,928 $ 7,473 $ 7,498
$ 6,448 $ 6,908 $ 6,903
10/02 $ 6,873 $ 7,305 $ 7,438
$ 7,303 $ 7,984 $ 8,020
$ 6,823 $ 7,480 $ 7,536
$ 6,870 $ 7,316 $ 7,462
$ 6,779 $ 7,146 $ 7,397
$ 6,844 $ 7,240 $ 7,535
$ 7,339 $ 7,872 $ 8,048
$ 8,077 $ 8,706 $ 8,822
$ 8,237 $ 8,885 $ 8,948
$ 8,630 $ 9,477 $ 9,268
$ 9,117 $ 9,985 $ 9,778
$ 8,808 $ 9,770 $ 9,589
10/03 $ 9,674 $10,574 $10,362
$ 9,888 $10,931 $10,639
$ 9,892 $10,943 $10,755
$10,463 $11,399 $11,110
$10,583 $11,505 $11,297
$10,750 $11,546 $11,275
$10,176 $11,056 $10,957
$10,350 $11,286 $11,216
$10,565 $11,561 $11,394
$ 9,663 $10,656 $10,640
$ 9,375 $10,442 $10,509
$ 9,743 $10,913 $10,901
10/04 $10,099 $11,223 $11,271
$10,637 $11,967 $11,852
$11,205 $12,540 $12,420
$10,972 $12,098 $12,087
$11,208 $12,338 $12,393
$10,968 $11,998 $12,212
$10,550 $11,350 $11,728
$11,238 $12,106 $12,400
$11,354 $12,425 $12,631
$11,856 $13,232 $13,367
$11,979 $13,080 $13,286
$11,805 $13,206 $13,457
10/05 $11,379 $12,775 $13,062
11
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE MID-CAP GROWTH FUND 1 CLASS B SHARES 2, C SHARES 2,
THE RUSSELL 2500 TM GROWTH INDEX 3,8 AND THE RUSSELL MIDCAP(R)
GROWTH INDEX 4,8 FROM INCEPTION (02/27/04).
[LINE GRAPH]
Credit Suisse Credit Suisse
Mid-Cap Growth Mid-Cap Growth
Fund 1 - Class B 2 Fund 1 - Class Russell
(with maximum C 2 (with maximum Russell 2500 TM MidCap(R)
contingent deferred contingent deferred Growth Growth
Date sales charge) sales charge) Index 3,8 Index 4,8
-------- -------------------- ------------------- --------------- -------------
02/04 $10,000 $10,000 $10,000 $10,000
$10,000 $10,000 $10,093 $10,168
$10,155 $10,158 $10,128 $10,149
04/04 $ 9,605 $ 9,612 $ 9,699 $ 9,862
$ 9,763 $ 9,777 $ 9,901 $10,095
$ 9,962 $ 9,979 $10,142 $10,256
07/04 $ 9,103 $ 9,120 $ 9,348 $ 9,577
$ 8,828 $ 8,849 $ 9,160 $ 9,459
$ 9,168 $ 9,186 $ 9,573 $ 9,812
10/04 $ 9,498 $ 9,509 $ 9,845 $10,145
$10,000 $10,007 $10,498 $10,668
$10,526 $10,529 $11,001 $11,179
01/05 $10,302 $10,302 $10,612 $10,879
$10,519 $10,516 $10,824 $11,155
$10,285 $10,282 $10,525 $10,992
04/05 $ 9,890 $ 9,883 $ 9,957 $10,557
$10,526 $10,516 $10,620 $11,161
$10,629 $10,615 $10,900 $11,369
07/05 $11,089 $11,079 $11,607 $12,032
$11,199 $11,196 $11,474 $11,958
$11,031 $11,028 $11,585 $12,113
10/05 $10,322 $10,622 $11,103 $11,563
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2005 1
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 5 21.49% (6.29)% 5.28% 10.82%
Advisor Class 6 20.90% (6.76)% 4.78% 9.08%
Class A Without Sales Charge 21.16% -- -- 6.04%
Class A With Maximum Sales Charge 14.22% -- -- 4.42%
Class B Without CDSC 20.31% -- -- 6.36%
Class B With CDSC 16.31% -- -- 4.53%
Class C Without CDSC 20.05% -- -- 6.34%
Class C With CDSC 19.05% -- -- 6.34%
12
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2005 1
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 5 12.95% (5.09)% 5.23% 10.54%
Advisor Class 6 12.38% (5.57)% 4.73% 8.74%
Class A Without Sales Charge 12.68% -- -- 4.92%
Class A With Maximum Sales Charge 6.21% -- -- 3.35%
Class B Without CDSC 11.83% -- -- 3.66%
Class B With CDSC 7.83% -- -- 1.91%
Class C Without CDSC 11.71% -- -- 3.66%
Class C With CDSC 10.71% -- -- 3.66%
Returns represent past performance and include change in share price and
reinvestment of dividends and capital gains. Past performance cannot guarantee
future results. The current performance of the fund may be lower or higher than
the figures shown. Returns and share price will fluctuate, and redemption value
may be less than original cost. The performance results do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. Performance information current to the most recent
month-end is available at www.Csam.Com/us.
_____________
1 Fee waivers and/or expense reimbursements may reduce expenses for the
Fund, without which performance would be lower. Waivers 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 6.21%. Total
return for Class B Shares for the reporting period, based on redemption
value (including maximum contingent deferred sales charge of 4%), was
7.83%. Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 10.71%.
3 The Russell 2500 TM Growth Index measures the performance of those
companies in the Russell 2500 TM Index with higher price-to-book ratios
and higher 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 a an index.
4 The Russell Midcap(R) Growth Index measures the performance of those
companies in the Russell Midcap(R) Index with higher price-to-book ratios
and higher forecasted growth values. The stocks are also members of the
Russell 1000(R) Growth Index. It is an unmanaged index of common stocks
that includes reinvestment of dividends and compiled by Frank Russell
Company. Investors cannot invest directly in an index.
5 Inception Date: 1/21/88.
6 Inception Date: 4/4/91.
7 Performance for the benchmark is not available for the period beginning
November 30, 2001. For that reason, performance is shown for the period
beginning December 1, 2001.
8 Performance for the benchmark is not available for the period beginning
February 27, 2004. For that reason, performance is shown for the period
beginning March 1, 2004.
13
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 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
October 31, 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.
14
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
FOR THE SIX MONTH PERIOD ENDED OCTOBER 31, 2005
- --------------------------------------------------------------------------------
COMMON ADVISOR
ACTUAL FUND RETURN CLASS CLASS CLASS A CLASS B CLASS C
--------- --------- --------- --------- ---------
Beginning Account
Value 5/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account
Value 10/31/05 $1,079.80 $1,076.90 $1,078.60 $1,074.00 $1,074.80
Expenses Paid per $1,000* $ 7.18 $ 9.79 $ 8.44 $ 12.28 $ 11.92
HYPOTHETICAL 5% FUND RETURN
Beginning Account
Value 5/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account
Value 10/31/05 $1,018.30 $1,015.78 $1,017.09 $1,013.36 $1,013.36
Expenses Paid per $1,000* $ 6.97 $ 9.50 $ 8.19 $ 11.93 $ 11.93
COMMON ADVISOR
CLASS CLASS CLASS A CLASS B CLASS C
--------- --------- --------- --------- ---------
ANNUALIZED EXPENSE RATIOS* 1.37% 1.87% 1.61% 2.35% 2.35%
____________
* 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.
15
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
[BAR GRAPH]
SECTOR BREAKDOWN*
Consumer Discretionary 25.8%
Health Care 19.0%
Technology 17.6%
Other Energy 9.3%
Financial Services 8.2%
Producer Durables 7.2%
Materials & Processing 5.8%
Short-Term Investments 3.9%
Consumer Staples 2.7%
Utilities 0.5%
____________
* Expressed as a percentage of total investments (excluding security lending
collateral) and may vary over time.
16
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
November 21, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/04 - 10/31/05
SHARE CLASS/BENCHMARK PERFORMANCE
Common 1 5.17%
Advisor 1 4.48%
Class A 1,2 5.17%
Class B 1,2 4.44%
Class C 1,2 4.49%
Russell 2000(R) Growth Index 3 10.91%
Performance for the Fund's Class A, Class B 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 LACKLUSTER FINISH
The period was an overall positive one for the US stock market, though the
upward path was not smooth. Stocks initially surged in the wake of a decisive
Presidential election, but then fell early in 2005 when inflation and
interest-rate worries raised risk thresholds. The market rallied into the
summer, however, aided by benign inflation data and good earnings reports from a
number of visible companies. Hurricane activity and a surge in oil prices caused
the market to weaken again late in the period. The Federal Reserve, meanwhile,
continued to raise short-term interest rates in small but steady increments. In
the face of all this, the economy nonetheless appeared resilient, at least as of
late October 2005: Third-quarter GDP growth was reported at an annualized rate
of 3.9%, the tenth consecutive quarter of 3% or greater growth.
From a sector perspective, energy stocks as a group had the best
performance, buoyed by high oil and natural gas prices, while consumer
discretionary stocks were among the underperformers. Value stocks generally
outperformed growth stocks for the 12-month period, in part reflecting the
outperformance of energy stocks, which comprise a larger share of the value
universe. Small cap stocks modestly outperformed large cap stocks.
STRATEGIC REVIEW: HEALTH CARE DISAPPOINTS, TECHNOLOGY SHINES
The Fund underperformed its benchmark in the period, which we attribute in
large measure to stock selection in the health care sector. This included
17
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
sizable declines by Amerigroup and Molina Healthcare, two managed care companies
with significant Medicaid patient exposure. While we continue to believe
Medicaid is a compelling long-term investment theme, we opted to eliminate these
two positions late in the period based on their unexpectedly high costs and
dimmer intermediate-term prospects. The Fund's producer durables holdings also
underperformed. Symmetricom (1.2% of the Fund's net assets as of October 31,
2005), whose products enable broadband services to travel over copper telephone
infrastructure, struggled on concerns regarding the timing of orders from one
large customer.
On the positive side, factors that aided the Fund included good stock
selection in the technology sector, where our holdings collectively advanced
despite a generally lackluster period for small-cap technology stocks. Trident
Microsystems (a position we sold in the period) and Genesis Microchip (1.2% of
the Fund's net assets as of October 31, 2005) were among the standouts. Both
companies provide graphics manipulation tools used in markets such as video
games and high-definition television. The Fund's underweighting in the financial
services sector was also supportive to its relative performance, as the sector
overall had a positive yet lagging return.
Going forward, we will continue to seek to identify companies with
attractive capital-growth potential. Our stock-selection process emphasizes
companies we believe to have accelerating earnings, improving fundamentals,
competent management and compelling business models, and includes companies
still in their developmental stage as well as older companies that appear to be
entering a new stage of growth. Our general strategy is focused on a company's
longer-term prospects, though we also attempt to identify stocks we feel are
poised to benefit from specific market catalysts over the nearer term.
The Credit Suisse Small Cap Growth Team
Marian U. Pardo
Calvin E. Chung
Leo M. Bernstein
18
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
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.
19
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP GROWTH FUND 1 COMMON CLASS SHARES AND THE
RUSSELL 2000(R) GROWTH INDEX 3,4 FROM INCEPTION (12/31/96).
[LINE GRAPH]
Credit Suisse Russell
Small Cap 2000(R)
Growth Fund 1 Growth
Date - Common Class Index 3,4
-------- ------------------- -----------
12/96 $10,000 $10,000
$10,350 $10,250
$10,020 $ 9,631
$ 9,250 $ 8,951
$ 8,940 $ 8,848
$10,280 $10,177
$10,840 $10,523
$11,370 $11,062
$11,650 $11,394
$12,930 $12,303
10/97 $12,250 $11,564
$12,070 $11,288
$12,229 $11,295
$11,927 $11,144
$12,802 $12,128
$13,637 $12,637
$13,496 $12,714
$12,360 $11,790
$12,591 $11,911
$11,415 $10,916
$ 8,951 $ 8,396
$ 9,846 $ 9,248
10/98 $10,167 $ 9,730
$11,093 $10,485
$12,058 $11,434
$12,621 $11,948
$11,646 $10,855
$12,501 $11,242
$12,993 $12,234
$13,064 $12,254
$14,572 $12,899
$14,401 $12,500
$14,391 $12,033
$15,156 $12,265
10/99 $16,694 $12,579
$19,138 $13,909
$24,023 $16,361
$23,826 $16,208
$32,636 $19,979
$28,921 $17,879
$24,532 $16,074
$22,197 $14,666
$26,628 $16,561
$23,712 $15,142
$27,427 $16,735
$25,611 $15,903
10/00 $23,982 $14,612
$19,862 $11,959
$21,833 $12,691
$21,387 $13,718
$18,824 $11,837
$16,655 $10,761
$19,032 $12,078
$18,814 $12,358
$19,270 $12,696
$18,191 $11,613
$17,102 $10,887
$14,414 $ 9,130
10/01 $15,960 $10,008
$17,517 $10,844
$18,980 $11,519
$18,419 $11,109
$16,801 $10,390
$18,295 $11,293
$17,807 $11,049
$16,697 $10,403
$15,223 $ 9,521
$12,992 $ 8,057
$12,847 $ 8,053
$12,276 $ 7,472
10/02 $13,054 $ 7,850
$14,103 $ 8,628
$13,137 $ 8,033
$12,878 $ 7,814
$12,629 $ 7,606
$12,785 $ 7,720
$13,739 $ 8,451
$15,317 $ 9,403
$15,493 $ 9,585
$16,686 $10,309
$17,620 $10,863
$16,852 $10,588
10/03 $18,824 $11,503
$19,146 $11,878
$19,239 $11,931
$20,360 $12,558
$20,401 $12,539
$20,889 $12,598
$19,717 $11,965
$20,194 $12,203
$20,692 $12,610
$18,492 $11,477
$18,108 $11,231
$18,866 $11,852
10/04 $19,270 $12,140
$20,526 $13,166
$21,377 $13,638
$20,516 $13,023
$20,817 $13,202
$20,298 $12,707
$18,949 $11,898
$19,986 $12,737
$21,159 $13,149
$21,979 $14,068
$21,584 $13,869
$21,138 $13,979
10/05 $20,267 $13,462
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP GROWTH FUND 1 CLASS A SHARES 2 AND THE
RUSSELL 2000(R) GROWTH INDEX 3,5 FROM INCEPTION (11/30/01).
[LINE GRAPH]
Credit Suisse
Small Cap Growth
Fund 1 - Class A 2 Russell 2000(R)
(with maximum sales Growth
Date charge) Index 3,5
-------- -------------------- ----------------
11/01 $ 9,425 $10,000
$10,207 $10,623
$ 9,911 $10,245
$ 9,040 $ 9,582
$ 9,844 $10,415
$ 9,581 $10,190
$ 8,984 $ 9,593
$ 8,191 $ 8,780
$ 6,991 $ 7,430
$ 6,912 $ 7,427
$ 6,605 $ 6,891
10/02 $ 7,018 $ 7,239
$ 7,582 $ 7,957
$ 7,063 $ 7,408
$ 6,929 $ 7,206
$ 6,790 $ 7,014
$ 6,879 $ 7,120
$ 7,387 $ 7,793
$ 8,236 $ 8,671
$ 8,331 $ 8,839
$ 8,973 $ 9,507
$ 9,481 $10,018
$ 9,062 $ 9,764
10/03 $10,128 $10,608
$10,302 $10,954
$10,346 $11,003
$10,955 $11,580
$10,972 $11,563
$11,234 $11,617
$10,609 $11,034
$10,860 $11,254
$11,128 $11,629
$ 9,950 $10,584
$ 9,743 $10,357
$10,151 $10,929
10/04 $10,369 $11,195
$11,044 $12,141
$11,496 $12,577
$11,039 $12,010
$11,206 $12,174
$10,927 $11,718
$10,201 $10,972
$10,759 $11,746
$11,390 $12,125
$11,831 $12,973
$11,619 $12,790
$11,379 $12,891
10/05 $10,905 $12,414
20
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP GROWTH FUND 1 ADVISOR CLASS SHARES, CLASS B
SHARES 2, CLASS C SHARES 2 AND THE RUSSELL 2000(R) GROWTH INDEX 3,6
FROM INCEPTION (02/27/04).
[LINE GRAPH]
Credit Suisse
Small Cap
Credit Suisse Growth Fund
Small Cap Growth 1 - Class C 2
Credit Suisse Fund 1 - Class (with maximum
Small Cap B 2 (with maximum contingent Russell 2000(R)
Growth Fund contingent deferred deferred Growth
Date 1 - Advisor Class sales charge) sales charge) Index 3,6
-------- -------------------- ------------------- ------------- ----------------
02/04 $10,000 $10,000 $10,000 $10,000
$10,000 $10,000 $10,000 $ 9,985
$10,234 $10,234 $10,239 $10,032
04/04 $ 9,654 $ 9,654 $ 9,664 $ 9,528
$ 9,878 $ 9,878 $ 9,898 $ 9,718
$10,117 $10,117 $10,143 $10,042
07/04 $ 9,038 $ 9,038 $ 9,064 $ 9,140
$ 8,850 $ 8,850 $ 8,865 $ 8,943
$ 9,216 $ 9,216 $ 9,237 $ 9,438
10/04 $ 9,405 $ 9,405 $ 9,430 $ 9,667
$10,015 $10,010 $10,041 $10,484
$10,422 $10,417 $10,448 $10,861
01/05 $10,000 $ 9,995 $10,026 $10,371
$10,137 $10,132 $10,163 $10,513
$ 9,878 $ 9,878 $ 9,903 $10,119
04/05 $ 9,216 $ 9,216 $ 9,242 $ 9,475
$ 9,715 $ 9,710 $ 9,740 $10,143
$10,280 $10,275 $10,305 $10,471
07/05 $10,672 $10,667 $10,697 $11,203
$10,473 $10,473 $10,504 $11,045
$10,249 $10,255 $10,280 $11,132
10/05 $ 9,527 $ 9,827 $ 9,852 $10,736
21
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2005 1
SINCE
1 YEAR 5 YEARS INCEPTION
------ ------- ---------
Common Class 12.05% (3.77)% 8.93%
Advisor Class 11.29% -- 1.75%
Class A Without Sales Charge 12.10% -- 5.04%
Class A With Maximum Sales Charge 5.65% -- 3.43%
Class B Without CDSC 11.21% -- 1.56%
Class B With CDSC 7.21% -- (0.32)%
Class C Without CDSC 11.26% -- 1.59%
Class C With CDSC 10.26% -- 1.59%
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2005 1
SINCE
1 YEAR 5 YEARS INCEPTION
------ ------- ---------
Common Class 5.17% (3.31)% 8.32%
Advisor Class 4.48% -- (0.88)%
Class A Without Sales Charge 5.17% -- 3.79%
Class A With Maximum Sales Charge (0.86)% -- 2.23%
Class B Without CDSC 4.44% -- (1.07)%
Class B With CDSC 0.44% -- (2.85)%
Class C Without CDSC 4.49% -- (1.04)%
Class C With CDSC 3.49% -- (1.04)%
Returns represent past performance and include change in share price and
reinvestment of dividends and capital gains. Past performance cannot guarantee
future results. The current performance of the fund may be lower or higher than
the figures shown. Returns and share price will fluctuate, and redemption value
may be less than original cost. The performance results do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. Performance information current to the most recent
month-end is available at www.Csam.Com/us.
_____________
1 Fee waivers and/or expense reimbursements may reduce expenses for the
Fund, without which performance would be lower. Waivers 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 0.86%. Total
return for Class B Shares for the reporting period, based on redemption
value (including maximum contingent deferred sales charge of 4%), was
0.44%. Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 3.49%.
3 The Russell 2000(R) Growth Index measures the performance of those
companies in the Russell 2000(R) Index with higher price-to-book ratios
and higher 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 Performance for the benchmark is not available for the period beginning
December 31, 1996. For that reason, performance is shown for the period
beginning January 1, 1997.
5 Performance for the benchmark is not available for the period beginning
November 30, 2001. For that reason, performance is shown for the period
beginning December 1, 2001.
6 Performance for the benchmark is not available for the period beginning
February 27, 2004. For that reason, performance is shown for the period
beginning March 1, 2004.
22
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 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
October 31, 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.
23
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
FOR THE SIX MONTH PERIOD ENDED OCTOBER 31, 2005
- --------------------------------------------------------------------------------
COMMON ADVISOR
ACTUAL FUND RETURN CLASS CLASS CLASS A CLASS B CLASS C
--------- --------- --------- --------- ---------
Beginning Account
Value 5/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account
Value 10/31/05 $1,069.60 $ 1066.10 $1,069.00 $1,065.70 $1,066.30
Expenses Paid per $1,000* $ 7.30 $ 8.59 $ 7.30 $ 11.14 $ 10.42
HYPOTHETICAL 5% FUND RETURN
Beginning Account
Value 5/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account
Value 10/31/05 $1,018.15 $1,016.89 $1,018.15 $1,014.37 $1,014.37
Expenses Paid per $1,000* $ 7.12 $ 8.39 $ 7.12 $ 10.92 $ 10.92
COMMON ADVISOR
CLASS CLASS CLASS A CLASS B CLASS C
--------- --------- --------- --------- ---------
ANNUALIZED EXPENSE RATIOS* 1.40% 1.65% 1.40% 2.15% 2.15%
____________
* 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.
24
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
[BAR GRAPH]
SECTOR BREAKDOWN*
Consumer Discretionary 27.1%
Technology 22.3%
Health Care 15.7%
Short-Term Investments 7.8%
Materials & Processing 7.3%
Other Energy 6.9%
Financial Services 6.8%
Producer Durables 5.6%
Integrated Oils 0.5%
___________
* Expressed as a percentage of total investments (excluding security lending
collateral) and may vary over time.
25
CREDIT SUISSE CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS (98.0%)
AEROSPACE & DEFENSE (9.1%)
Boeing Co. 96,800 $ 6,257,152
L-3 Communications Holdings, Inc. 105,300 8,194,446
Precision Castparts Corp. 151,400 7,170,304
United Technologies Corp. 110,800 5,681,824
-------------
27,303,726
-------------
BANKS (2.3%)
Hudson City Bancorp, Inc. ss. 253,500 3,001,440
Northern Trust Corp. 70,600 3,784,160
-------------
6,785,600
-------------
BEVERAGES (1.3%)
Coca-Cola Co. 88,200 3,773,196
-------------
BIOTECHNOLOGY (6.2%)
Amgen, Inc.* 86,000 6,515,360
Genentech, Inc.* 78,200 7,084,920
Genzyme Corp.* 49,400 3,571,620
Martek Biosciences Corp.* ss. 47,500 1,466,325
-------------
18,638,225
-------------
CHEMICALS (2.6%)
Chemtura Corp. 219,900 2,352,930
Monsanto Co. 88,200 5,557,482
-------------
7,910,412
-------------
COMMUNICATIONS EQUIPMENT (5.4%)
Comverse Technology, Inc.* 182,500 4,580,750
Corning, Inc.* 490,700 9,858,163
Motorola, Inc. 82,200 1,821,552
-------------
16,260,465
-------------
COMPUTERS & PERIPHERALS (1.9%)
Apple Computer, Inc.* 96,800 5,574,712
-------------
DIVERSIFIED FINANCIALS (3.2%)
American Express Co. 91,400 4,548,978
Capital One Financial Corp. 66,700 5,092,545
-------------
9,641,523
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (3.3%)
Broadcom Corp. Class A* 120,200 5,103,692
Roper Industries, Inc. ss. 89,200 3,362,840
Solectron Corp.* 366,300 1,293,039
-------------
9,759,571
-------------
See Accompanying Notes to Financial Statements.
26
CREDIT SUISSE CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS
ENERGY EQUIPMENT & SERVICES (1.5%)
Bonneville Pacific Corp.*^ 16,883 $ 127
Smith International, Inc. 88,600 2,870,640
Weatherford International, Ltd.* 26,900 1,683,940
-------------
4,554,707
-------------
FOOD & DRUG RETAILING (1.4%)
CVS Corp. 175,200 4,276,632
-------------
FOOD PRODUCTS (2.3%)
Campbell Soup Co. 125,300 3,646,230
Wm. Wrigley Jr. Co. 47,600 3,308,200
-------------
6,954,430
-------------
HEALTHCARE EQUIPMENT & SUPPLIES (4.3%)
Dade Behring Holdings, Inc. 187,600 6,755,476
St. Jude Medical, Inc.* 128,100 6,157,767
-------------
12,913,243
-------------
HEALTHCARE PROVIDERS & SERVICES (4.6%)
Aetna, Inc. 37,400 3,312,144
UnitedHealth Group, Inc. 59,500 3,444,455
WellPoint, Inc.* 92,800 6,930,304
-------------
13,686,903
-------------
HOTELS, RESTAURANTS & LEISURE (2.4%)
Penn National Gaming, Inc.* 96,700 2,857,485
Starbucks Corp.* 155,800 4,406,024
-------------
7,263,509
-------------
HOUSEHOLD PRODUCTS (2.6%)
Procter & Gamble Co. 140,500 7,866,595
-------------
INDUSTRIAL CONGLOMERATES (1.1%)
General Electric Co. 92,200 3,126,502
-------------
INSURANCE (2.9%)
American International Group, Inc. 59,700 3,868,560
Genworth Financial, Inc. Class A 153,700 4,870,753
-------------
8,739,313
-------------
INTERNET & CATALOG RETAIL (1.5%)
eBay, Inc.* 113,600 4,498,560
-------------
INTERNET SOFTWARE & SERVICES (5.0%)
Google, Inc. Class A* 9,700 3,609,758
VeriSign, Inc.* ss. 350,900 8,291,767
Yahoo!, Inc.* 85,600 3,164,632
-------------
15,066,157
-------------
See Accompanying Notes to Financial Statements.
27
CREDIT SUISSE CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS
IT CONSULTING & SERVICES (1.8%)
CACI International, Inc. Class A* ss. 28,900 $ 1,576,206
NAVTEQ Corp.* 95,700 3,743,784
-------------
5,319,990
-------------
MACHINERY (0.9%)
Deere & Co. 42,100 2,554,628
-------------
MEDIA (2.1%)
E.W. Scripps Co. Class A 46,900 2,148,020
Getty Images, Inc.* ss. 50,500 4,192,005
-------------
6,340,025
-------------
MULTILINE RETAIL (1.3%)
Kohl's Corp.* 82,300 3,961,099
-------------
OIL & GAS (2.7%)
Forest Oil Corp.* 35,700 1,559,376
XTO Energy, Inc. 149,866 6,513,176
-------------
8,072,552
-------------
PHARMACEUTICALS (9.2%)
Barr Pharmaceuticals, Inc.* 26,500 1,522,425
Forest Laboratories, Inc.* 73,800 2,797,758
Johnson & Johnson 99,300 6,218,166
Medco Health Solutions, Inc.* 59,400 3,356,100
Schering-Plough Corp. 279,100 5,676,894
Sepracor, Inc.* ss. 59,100 3,324,375
Wyeth 102,500 4,567,400
-------------
27,463,118
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (1.8%)
Intel Corp. 113,000 2,655,500
Maxim Integrated Products, Inc. 75,700 2,625,276
-------------
5,280,776
-------------
SOFTWARE (9.6%)
Activision, Inc.* 97,688 1,540,540
Electronic Arts, Inc.* 64,500 3,668,760
Macromedia, Inc.* 126,800 5,569,056
Microsoft Corp. 495,900 12,744,630
Salesforce.com, Inc.* ss. 202,400 5,057,976
-------------
28,580,962
-------------
SPECIALTY RETAIL (3.7%)
Best Buy Company, Inc. 40,500 1,792,530
Home Depot, Inc. 130,400 5,351,616
Office Depot, Inc.* 137,300 3,779,868
-------------
10,924,014
-------------
TOTAL COMMON STOCKS (Cost $246,805,245) 293,091,145
-------------
See Accompanying Notes to Financial Statements.
28
CREDIT SUISSE CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
SHORT-TERM INVESTMENTS (11.1%)
State Street Navigator Prime Fund ss 25,539,241 $ 25,539,241
PAR
(000)
------------
State Street Bank and Trust Co. Euro Time
Deposit, 2.850%, 11/01/05 $ 7,644 7,644,000
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $33,183,241) 33,183,241
-------------
TOTAL INVESTMENTS AT VALUE (109.1%)
(COST $279,988,486) 326,274,386
LIABILITIES IN EXCESS OF OTHER ASSETS (-9.1%) (27,111,335)
-------------
NET ASSETS (100.0%) $ 299,163,051
=============
- --------------------------------------------------------------------------------
* Non-income producing security.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by, or under the direction of, the Board of
Directors.
s Security or portion thereof is out on loan.
ss Represents security purchased with cash collateral received for
securities on loan.
See Accompanying Notes to Financial Statements.
29
CREDIT SUISSE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS (95.8%)
AEROSPACE & DEFENSE (8.3%)
Alliant Techsystems, Inc.* ss. 68,700 $ 4,824,114
Goodrich Corp. 96,600 3,484,362
L-3 Communications Holdings, Inc. 111,400 8,669,148
Precision Castparts Corp. 196,300 9,296,768
-------------
26,274,392
-------------
BANKS (4.4%)
Hudson City Bancorp, Inc. ss. 374,100 4,429,344
Mellon Financial Corp. 170,600 5,406,314
Northern Trust Corp. 75,500 4,046,800
-------------
13,882,458
-------------
BEVERAGES (0.6%)
Constellation Brands, Inc. Class A* 85,400 2,010,316
-------------
BIOTECHNOLOGY (5.3%)
Amylin Pharmaceuticals, Inc.* ss. 99,200 3,333,120
Charles River Laboratories
International, Inc.* ss. 87,100 3,811,496
Martek Biosciences Corp.* ss. 57,300 1,768,851
Neurocrine Biosciences, Inc.* ss. 45,600 2,408,592
Protein Design Laboratories, Inc.* ss. 193,200 5,413,464
-------------
16,735,523
-------------
CHEMICALS (2.9%)
Chemtura Corp. 381,000 4,076,700
Monsanto Co. 79,100 4,984,091
-------------
9,060,791
-------------
COMMERCIAL SERVICES & SUPPLIES (3.1%)
Alliance Data Systems Corp.* 120,000 4,267,200
Corporate Executive Board Co. 41,800 3,454,352
Laureate Education, Inc.* ss. 40,200 1,985,880
-------------
9,707,432
-------------
COMMUNICATIONS EQUIPMENT (1.4%)
Comverse Technology, Inc.* 172,500 4,329,750
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (4.6%)
Broadcom Corp. Class A* 186,600 7,923,036
Roper Industries, Inc. 168,000 6,333,600
Symbol Technologies, Inc. 18,062 149,915
-------------
14,406,551
-------------
ENERGY EQUIPMENT & SERVICES (3.0%)
National Oilwell Varco, Inc.* 103,300 6,453,151
Smith International, Inc. 93,000 3,013,200
-------------
9,466,351
-------------
See Accompanying Notes to Financial Statements.
30
CREDIT SUISSE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS
FOOD PRODUCTS (2.0%)
Campbell Soup Co. 219,100 $ 6,375,810
-------------
HEALTHCARE EQUIPMENT & SUPPLIES (3.3%)
Dade Behring Holdings, Inc. 178,500 6,427,785
Varian Medical Systems, Inc.* 86,000 3,918,160
-------------
10,345,945
-------------
HEALTHCARE PROVIDERS & SERVICES (4.5%)
Covance, Inc.* ss. 109,000 5,302,850
Omnicare, Inc. ss. 121,623 6,579,804
Quest Diagnostics, Inc. 49,000 2,288,790
-------------
14,171,444
-------------
HOTELS, RESTAURANTS & LEISURE (4.0%)
MGM Mirage, Inc.* ss. 76,600 2,862,542
Penn National Gaming, Inc.* 155,000 4,580,250
Starwood Hotels & Resorts Worldwide, Inc. 89,800 5,247,014
-------------
12,689,806
-------------
HOUSEHOLD DURABLES (2.8%)
Dolby Laboratories, Inc. Class A* 176,600 2,843,260
Snap-on, Inc. ss. 171,300 6,170,226
-------------
9,013,486
-------------
INSURANCE (2.4%)
Genworth Financial, Inc. Class A 239,300 7,583,417
-------------
INTERNET SOFTWARE & SERVICES (3.8%)
CNET Networks, Inc.* ss. 247,500 3,363,525
VeriSign, Inc.* 369,100 8,721,833
-------------
12,085,358
-------------
IT CONSULTING & SERVICES (3.0%)
CACI International, Inc. Class A* ss. 64,500 3,517,830
NAVTEQ Corp.* ss. 153,200 5,993,184
-------------
9,511,014
-------------
LEISURE EQUIPMENT & PRODUCTS (2.5%)
SCP Pool Corp. ss. 221,800 7,978,146
-------------
MEDIA (3.3%)
E.W. Scripps Co. Class A ss. 53,900 2,468,620
Getty Images, Inc.* ss. 94,800 7,869,348
-------------
10,337,968
-------------
See Accompanying Notes to Financial Statements.
31
CREDIT SUISSE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS
OIL & GAS (6.8%)
Forest Oil Corp.* 76,100 $ 3,324,048
Kinder Morgan, Inc. 18,500 1,681,650
Newfield Exploration Co.* 148,800 6,745,104
Noble Energy, Inc. 59,400 2,378,970
W&T Offshore, Inc. ss. 90,200 2,633,840
XTO Energy, Inc. 107,600 4,676,296
-------------
21,439,908
-------------
PHARMACEUTICALS (5.9%)
Barr Pharmaceuticals, Inc.* 28,400 1,631,580
Forest Laboratories, Inc.* 178,500 6,766,935
Sepracor, Inc.* ss. 65,100 3,661,875
Taro Pharmaceutical Industries, Ltd.* 294,800 6,485,600
-------------
18,545,990
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (1.4%)
International Rectifier Corp.* ss. 74,700 2,210,373
Maxim Integrated Products, Inc. 68,200 2,365,176
-------------
4,575,549
-------------
SOFTWARE (8.2%)
Activision, Inc.* 354,267 5,586,785
Macromedia, Inc.* 296,000 13,000,320
Salesforce.com, Inc.* ss. 295,100 7,374,549
-------------
25,961,654
-------------
SPECIALTY RETAIL (4.3%)
Michaels Stores, Inc. 72,400 2,394,992
Office Depot, Inc.* 139,100 3,829,423
Williams-Sonoma, Inc.* ss. 192,100 7,513,031
-------------
13,737,446
-------------
TEXTILES & APPAREL (1.5%)
Coach, Inc.* 148,300 4,772,294
-------------
WIRELESS TELECOMMUNICATION SERVICES (2.5%)
Crown Castle International Corp.* 325,200 7,973,904
-------------
TOTAL COMMON STOCKS (COST $257,422,458) 302,972,703
-------------
PREFERRED STOCK (0.0%)
TELECOMMUNICATIONS (0.0%)
Celletra, Ltd. Series C*++
(Cost $7,000,000) 1,102,524 0
-------------
See Accompanying Notes to Financial Statements.
32
CREDIT SUISSE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
SHORT-TERM INVESTMENTS (20.9%)
State Street Navigator Prime Fund ss.ss. 53,732,455 $ 53,732,455
PAR
(000)
------------
State Street Bank and Trust Co. Euro Time
Deposit, 2.850%, 11/01/05 $ 12,230 12,230,000
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $65,962,455) 65,962,455
-------------
TOTAL INVESTMENTS AT VALUE (116.7%)
(COST $330,384,913) 368,935,158
LIABILITIES IN EXCESS OF OTHER ASSETS (-16.7%) (52,829,580)
-------------
NET ASSETS (100.0%) $ 316,105,578
=============
- --------------------------------------------------------------------------------
* Non-income producing security.
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith by, or under the direction of, the
Board of Directors.
ss. Security or portion thereof is out on loan.
ss.ss. Represents security purchased with cash collateral received for
securities on loan.
See Accompanying Notes to Financial Statements.
33
CREDIT SUISSE SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS (90.0%)
AGRICULTURE (1.2%)
Delta and Pine Land Co. ss. 32,100 $ 800,895
-------------
BANKS (1.7%)
Boston Private Financial Holdings, Inc. ss. 27,600 799,020
UCBH Holdings, Inc. ss. 22,400 389,760
-------------
1,188,780
-------------
BIOTECHNOLOGY (0.9%)
Martek Biosciences Corp.* ss. 20,600 635,922
-------------
CHEMICALS (1.7%)
Airgas, Inc. 41,800 1,181,686
-------------
COMMERCIAL SERVICES & SUPPLIES (3.3%)
Greenfield Online, Inc.* 52,800 265,056
Kforce, Inc.* ss. 105,800 1,142,640
Universal Technical Institute, Inc.* ss. 27,800 870,974
-------------
2,278,670
-------------
COMMUNICATIONS EQUIPMENT (4.4%)
InPhonic, Inc.* ss. 66,300 958,698
Kanbay International, Inc.* ss. 45,800 667,764
Sonus Networks, Inc.* ss. 133,200 580,752
Symmetricom, Inc.* ss. 106,600 849,602
-------------
3,056,816
-------------
COMPUTERS & PERIPHERALS (1.2%)
Avid Technology, Inc.* ss. 17,000 836,910
-------------
CONTAINERS & PACKAGING (1.1%)
Crown Holdings, Inc.* 48,900 793,158
-------------
DISTRIBUTION & WHOLESALE (1.4%)
Beacon Roofing Supply, Inc.* 35,900 978,634
-------------
DIVERSIFIED FINANCIALS (4.2%)
Affiliated Managers Group, Inc.* ss. 15,650 1,201,137
National Financial Partners Corp. ss. 20,500 927,215
Texas Capital Bancshares, Inc.* ss. 35,800 766,478
-------------
2,894,830
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.9%)
FLIR Systems, Inc.* 12,700 266,192
Veeco Instruments, Inc.* ss. 66,000 1,048,740
-------------
1,314,932
-------------
ENERGY EQUIPMENT & SERVICES (1.1%)
Newpark Resources, Inc.* ss. 95,400 772,740
-------------
See Accompanying Notes to Financial Statements.
34
CREDIT SUISSE SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS
HEALTHCARE EQUIPMENT & SUPPLIES (1.7%)
Haemonetics Corp.* ss. 16,600 $ 804,270
Immucor, Inc.* 14,500 375,840
-------------
1,180,110
-------------
HEALTHCARE PROVIDERS & SERVICES (8.9%)
Advisory Board Co.* 18,300 882,975
Centene Corp.* ss. 37,200 749,580
Gentiva Health Services, Inc.* 40,900 600,821
Kindred Healthcare, Inc.* ss. 25,800 722,400
LifePoint Hospitals, Inc.* ss. 20,700 809,370
Psychiatric Solutions, Inc.* ss. 12,900 705,630
Sunrise Senior Living, Inc.* ss. 23,200 750,288
United Surgical Partners
International, Inc.* ss. 19,600 702,660
WellCare Health Plans, Inc.* ss. 7,900 248,850
-------------
6,172,574
-------------
HOTELS, RESTAURANTS & LEISURE (5.2%)
Aztar Corp.* ss. 36,700 1,103,569
Carmike Cinemas, Inc. ss. 25,900 571,872
Great Wolf Resorts, Inc.* ss. 58,700 516,560
Orient-Express Hotels, Ltd. Class A 29,000 817,800
Shuffle Master, Inc.* 23,600 598,496
-------------
3,608,297
-------------
HOUSEHOLD DURABLES (1.1%)
Dolby Laboratories, Inc. Class A* 48,200 776,020
-------------
INTERNET SOFTWARE & SERVICES (10.0%)
Chordiant Software, Inc.* 215,000 543,950
CNET Networks, Inc.* ss. 78,100 1,061,379
Digitas, Inc.* 81,500 880,200
Jupitermedia Corp.* ss. 47,500 807,500
MatrixOne, Inc.* ss. 131,500 662,760
Openwave Systems, Inc.* 67,366 1,203,830
Opsware, Inc.* ss. 158,700 815,718
ValueClick, Inc.* ss. 56,000 980,000
-------------
6,955,337
-------------
IT CONSULTING & SERVICES (2.6%)
CACI International, Inc. Class A* ss. 12,400 676,296
Redback Networks, Inc.* ss. 55,100 579,101
TNS, Inc.* ss. 29,800 523,884
-------------
1,779,281
-------------
LEISURE EQUIPMENT & PRODUCTS (1.6%)
RC2 Corp.* ss. 32,300 1,129,854
-------------
See Accompanying Notes to Financial Statements.
35
CREDIT SUISSE SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS
MACHINERY (2.7%)
Briggs & Stratton Corp. 27,900 $ 892,242
Kennametal, Inc. 19,600 1,001,756
-------------
1,893,998
-------------
MEDIA (3.4%)
aQuantive, Inc.* ss. 44,100 954,765
Lions Gate Entertainment Corp.* ss. 143,700 1,379,520
-------------
2,334,285
-------------
OIL & GAS (6.1%)
Comstock Resources, Inc.* 28,100 846,091
Denbury Resources, Inc.* ss. 21,300 929,319
KCS Energy, Inc.* ss. 14,200 342,504
Remington Oil & Gas Corp.* 18,800 658,000
W&T Offshore, Inc. 50,700 1,480,440
-------------
4,256,354
-------------
PHARMACEUTICALS (5.1%)
Angiotech Pharmaceuticals, Inc.* ss. 55,900 749,060
DOV Pharmaceutical, Inc.* ss. 49,400 767,182
Medicines Co.* ss. 42,800 733,592
Taro Pharmaceutical Industries, Ltd.* 58,400 1,284,800
-------------
3,534,634
-------------
REAL ESTATE (1.8%)
HouseValues, Inc.* 82,900 1,220,288
-------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (5.5%)
FormFactor, Inc.* ss. 31,500 775,530
Genesis Microchip, Inc.* ss. 44,100 848,484
Integrated Device Technology, Inc.* 104,700 1,034,436
Tessera Technologies, Inc.* ss. 40,400 1,127,160
-------------
3,785,610
-------------
SOFTWARE (4.9%)
Activision, Inc.* 18,011 284,028
Gravity Company, Ltd. ADR* ss. 29,500 208,270
Open Solutions, Inc.* ss. 37,500 802,875
THQ, Inc.* ss. 51,899 1,203,019
VeriFone Holdings, Inc.* ss. 39,000 904,800
-------------
3,402,992
-------------
SPECIALTY RETAIL (4.1%)
Aaron Rents, Inc. 31,700 624,490
Cost Plus, Inc.* ss. 33,200 509,952
Design Within Reach, Inc.* ss. 52,700 425,289
Hot Topic, Inc.* ss. 88,200 1,313,298
-------------
2,873,029
-------------
See Accompanying Notes to Financial Statements.
36
CREDIT SUISSE SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ -------------
COMMON STOCKS
TEXTILES & APPAREL (1.2%)
K-Swiss, Inc. Class A 28,000 $ 852,600
-------------
TOTAL COMMON STOCKS (COST $58,782,293) 62,489,236
-------------
SHORT-TERM INVESTMENTS (37.1%)
State Street Navigator Prime Fund ss.ss. 20,456,757 20,456,757
PAR
(000)
------------
State Street Bank and Trust Co. Euro Time
Deposit, 2.850%, 11/01/05 $ 5,265 5,265,000
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $25,721,757) 25,721,757
-------------
TOTAL INVESTMENTS AT VALUE (127.1%) (COST $84,504,050) 88,210,993
LIABILITIES IN EXCESS OF OTHER ASSETS (-27.1%) (18,789,456)
-------------
NET ASSETS (100.0%) $ 69,421,537
=============
INVESTMENT ABBREVIATIONS
ADR = American Depositary Receipt
- --------------------------------------------------------------------------------
* Non-income producing security.
ss. Security or portion thereof is out on loan.
ss.ss. Represents security purchased with cash collateral received for
securities on loan.
See Accompanying Notes to Financial Statements.
37
CREDIT SUISSE FUNDS
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2005
- --------------------------------------------------------------------------------
CAPITAL
APPRECIATION MID-CAP SMALL CAP
FUND GROWTH FUND GROWTH FUND
-------------- -------------- --------------
ASSETS
Investments at value, including collateral for securities
on loan of $25,539,241, $53,732,455 and $20,456,757,
respectively (Cost $279,988,486, $330,384,913 and
$84,504,050, respectively) (Note 2) $ 326,274,386 1 $ 368,935,158 2 $ 88,210,993 3
Cash 220 961 995
Receivable for investments sold -- 4,151,691 2,859,447
Receivable for fund shares sold 515,590 139,531 23,727
Dividend and interest receivable 92,871 77,181 8,620
Prepaid expenses and other assets 47,094 43,461 40,974
-------------- -------------- --------------
Total Assets 326,930,161 373,347,983 91,144,756
-------------- -------------- --------------
LIABILITIES
Advisory fee payable (Note 3) 176,422 244,348 53,389
Administrative services fee payable (Note 3) 41,212 44,347 10,190
Shareholder servicing/Distribution fee payable (Note 3) . 16,021 25,030 14,855
Payable upon return of securities loaned (Note 2) 25,539,241 53,732,455 20,456,757
Payable for investments purchased 1,471,795 1,572,038 1,110,107
Payable for fund shares redeemed 369,458 1,472,582 10,559
Trustees'/Directors' fee payable 5,502 5,502 5,498
Other accrued expenses payable 147,459 146,103 61,864
-------------- -------------- --------------
Total Liabilities 27,767,110 57,242,405 21,723,219
-------------- -------------- --------------
NET ASSETS
Capital stock, $0.001 par value (Note 7) 18,163 10,043 3,554
Paid-in capital (Note 7) 608,171,205 458,285,575 66,328,105
Undistributed net investment income 277,820 -- --
Accumulated net realized loss on investments (355,590,037) (180,740,285) (617,065)
Net unrealized appreciation from investments 46,285,900 38,550,245 3,706,943
-------------- -------------- --------------
Net Assets $ 299,163,051 $ 316,105,578 $ 69,421,537
============== ============== ==============
COMMON SHARES
Net assets $ 291,148,253 $ 290,509,429 $ 68,237,048
Shares outstanding 17,657,934 9,174,092 3,493,690
-------------- -------------- --------------
Net asset value, offering price and redemption
price per share $ 16.49 $ 31.67 $ 19.53
============== ============== ==============
ADVISOR SHARES
Net assets $ 5,334,057 $ 24,851,154 $ 2,014
Shares outstanding 338,502 844,664 104
-------------- -------------- --------------
Net asset value, offering price and redemption
price per share $ 15.76 $ 29.42 $ 19.36
============== ============== ==============
See Accompanying Notes to Financial Statements.
38
CREDIT SUISSE FUNDS
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
CAPITAL
APPRECIATION MID-CAP SMALL CAP
FUND GROWTH FUND GROWTH FUND
-------------- -------------- --------------
A SHARES
Net assets $ 1,585,204 $ 688,493 $ 1,165,359
Shares outstanding 97,094 22,006 59,666
-------------- -------------- --------------
Net asset value and redemption price per share $ 16.33 $ 31.29 $ 19.53
============== ============== ==============
Maximum offering price per share (net asset
value/(1-5.75%)) $ 17.33 $ 33.20 $ 20.72
============== ============== ==============
B SHARES
Net assets $ 624,601 $ 55,440 $ 16,133
Shares outstanding 39,395 1,794 836
-------------- -------------- --------------
Net asset value and offering price per share $ 15.85 $ 30.91 $ 19.30
============== ============== ==============
C SHARES
Net assets $ 470,936 $ 1,062 $ 983
Shares outstanding 29,712 34 51
-------------- -------------- --------------
Net asset value and offering price per share $ 15.85 $ 30.91 $ 19.31
============== ============== ==============
- --------------------------------------------------------------------------------
1 Including $24,928,947 of securities on loan.
2 Including $52,556,944 of securities on loan.
3 Including $19,929,169 of securities on loan.
See Accompanying Notes to Financial Statements.
39
CREDIT SUISSE FUNDS
STATEMENT OF OPERATIONS
For the Year Ended October 31, 2005
- --------------------------------------------------------------------------------
CAPITAL
APPRECIATION MID-CAP SMALL CAP
FUND GROWTH FUND GROWTH FUND
-------------- -------------- --------------
INVESTMENT INCOME (Note 2)
Dividends $ 4,643,313 $ 1,511,104 $ 94,009
Interest 180,312 294,815 81,695
Securities lending 14,476 41,325 37,463
Foreign taxes 1,773 -- --
-------------- -------------- --------------
Total investment income 4,839,874 1,847,244 213,167
-------------- -------------- --------------
EXPENSES
Investment advisory fees (Note 3) 2,682,159 3,186,515 814,417
Administrative services fees (Note 3) 642,088 594,917 147,872
Shareholder servicing/Distribution fees (Note 3)
Common Class -- -- 190,948
Advisor Class 49,607 134,043 6
Class A 4,259 1,433 12,615
Class B 5,941 345 143
Class C 7,128 11 11
Transfer agent fees (Note 3) 857,557 843,486 229,138
Printing fees (Note 3) 43,188 54,097 44,446
Registration fees 77,192 85,760 84,784
Audit and tax fees 50,665 44,780 25,252
Custodian fees 50,553 34,791 28,403
Legal fees 30,105 27,436 25,469
Trustees'/Directors' fees 17,762 17,762 17,758
Commitment fees (Note 4) 15,136 8,082 1,871
Insurance expense 15,092 10,283 5,382
Miscellaneous expense 13,622 11,895 10,464
-------------- -------------- --------------
Total expenses 4,562,054 5,055,636 1,638,979
Less: fees waived (Note 3) -- -- (498,676)
-------------- -------------- --------------
Net expenses 4,562,054 5,055,636 1,140,303
-------------- -------------- --------------
Net investment income (loss) 277,820 (3,208,392) (927,136)
-------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain from investments 30,354,928 41,439,467 9,417,899
Net change in unrealized appreciation
(depreciation) from investments 2,641,122 8,210,614 (3,353,315)
-------------- -------------- --------------
Net realized and unrealized gain from investments 32,996,050 49,650,081 6,064,584
-------------- -------------- --------------
Net increase in net assets resulting
from operations $ 33,273,870 $ 46,441,689 $ 5,137,448
============== ============== ==============
See Accompanying Notes to Financial Statements.
40
This page intentionally left blank
41
CREDIT SUISSE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND
----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
---------------- ----------------
FROM OPERATIONS
Net investment income (loss) $ 277,820 $ (2,930,324)
Net realized gain from investments 30,354,928 18,748,246
Net change in unrealized appreciation (depreciation) from investments 2,641,122 2,165,046
---------------- ----------------
Net increase in net assets resulting from operations 33,273,870 17,982,968
---------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 7)
Proceeds from sale of shares 44,355,998 64,577,142
Net asset value of shares redeemed (230,751,856) (164,242,663)
---------------- ----------------
Net increase (decrease) in net assets from capital share transactions (186,395,858) (99,665,521)
---------------- ----------------
Net increase (decrease) in net assets (153,121,988) (81,682,553)
---------------- ----------------
NET ASSETS
Beginning of year 452,285,039 533,967,592
---------------- ----------------
End of year $ 299,163,051 $ 452,285,039
================ ================
ACCUMULATED NET INVESTMENT INCOME $ 277,820 $ --
================ ================
MID-CAP GROWTH FUND
----------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
---------------- ----------------
FROM OPERATIONS
Net investment income (loss) $ (3,208,392) $ (4,833,037)
Net realized gain from investments 41,439,467 80,816,785
Net change in unrealized appreciation (depreciation) from investments 8,210,614 (57,342,636)
---------------- ----------------
Net increase in net assets resulting from operations 46,441,689 18,641,112
---------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 7)
Proceeds from sale of shares 36,330,337 89,263,585
Net asset value of shares redeemed (158,014,386) (164,214,779)
---------------- ----------------
Net increase (decrease) in net assets from capital share transactions (121,684,049) (74,951,194)
---------------- ----------------
Net increase (decrease) in net assets (75,242,360) (56,310,082)
---------------- ----------------
NET ASSETS
Beginning of year 391,347,938 447,658,020
---------------- ----------------
End of year $ 316,105,578 $ 391,347,938
================ ================
ACCUMULATED NET INVESTMENT INCOME $ -- $ --
================ ================
SMALL CAP GROWTH FUND
---------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
---------------- ----------------
FROM OPERATIONS
Net investment income (loss) $ (927,136) $ (1,103,066)
Net realized gain from investments 9,417,899 9,479,818
Net change in unrealized appreciation (depreciation) from investments (3,353,315) (7,516,561)
---------------- ----------------
Net increase in net assets resulting from operations 5,137,448 860,191
---------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 7)
Proceeds from sale of shares 9,426,170 48,554,040
Net asset value of shares redeemed (34,141,125) (38,571,104)
---------------- ----------------
Net increase (decrease) in net assets from capital share transactions (24,714,955) 9,982,936
---------------- ----------------
Net increase (decrease) in net assets (19,577,507) 10,843,127
---------------- ----------------
NET ASSETS
Beginning of year 88,999,044 78,155,917
---------------- ----------------
End of year $ 69,421,537 $ 88,999,044
================ ================
ACCUMULATED NET INVESTMENT INCOME $ -- $ --
================ ================
See Accompanying Notes to Financial Statements.
42 - 43 Spread
CREDIT SUISSE CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 15.26 $ 14.75 $ 12.53 $ 16.23 $ 30.57
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment gain (loss) 0.01 1 (0.09) 1 (0.05) 1 (0.07) 1 (0.02)
Net gain (loss) on investments
(both realized and unrealized) 1.22 0.60 2.27 (3.63) (10.04)
---------- ---------- ---------- ---------- ----------
Total from investment operations 1.23 0.51 2.22 (3.70) (10.06)
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- 0.00 2 (4.28)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 16.49 $ 15.26 $ 14.75 $ 12.53 $ 16.23
========== ========== ========== ========== ==========
Total return 3 8.06% 3.46% 17.72% (22.79)% (37.59)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 291,148 $ 433,681 $ 514,668 $ 566,064 $ 899,234
Ratio of expenses to average net assets 1.17% 1.16% 1.15% 1.11% 0.99%
Ratio of net investment income (loss)
to average net assets 0.09% (0.57)% (0.39)% (0.45)% (0.09)%
Portfolio turnover rate 97% 70% 97% 50% 100%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 This represents less than $0.01 per share.
3 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
See Accompanying Notes to Financial Statements.
44
CREDIT SUISSE CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Class Share of the Fund Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 14.65 $ 14.24 $ 12.16 $ 15.82 $ 29.88
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss (0.04) 1 (0.16) 1 (0.11) 1 (0.14) 1 (0.12)
Net gain (loss) on investments
(both realized and unrealized) 1.15 0.57 2.19 (3.52) (9.81)
---------- ---------- ---------- ---------- ----------
Total from investment operations 1.11 0.41 2.08 (3.66) (9.93)
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- 0.00 2 (4.13)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 15.76 $ 14.65 $ 14.24 $ 12.16 $ 15.82
========== ========== ========== ========== ==========
Total return 3 7.58% 2.88% 17.11% (23.13)% (37.91)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 5,334 $ 14,723 $ 17,380 $ 16,693 $ 25,882
Ratio of expenses to average net assets 1.67% 1.66% 1.65% 1.61% 1.49%
Ratio of net investment loss
to average net assets (0.41)% (1.07)% (0.90)% (0.96)% (0.62)%
Portfolio turnover rate 97% 70% 97% 50% 100%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 This represents less than $0.01 per share.
3 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
See Accompanying Notes to Financial Statements.
45
CREDIT SUISSE CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2005 2004 2003 2002 1
--------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 15.14 $ 14.68 $ 12.50 $ 17.75
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income (loss) 2 0.00 3 (0.12) (0.09) (0.09)
Net gain (loss) on investments
(both realized and unrealized) 1.19 0.58 2.27 (5.16)
--------- --------- --------- ---------
Total from investment operations 1.19 0.46 2.18 (5.25)
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- 0.00 3
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 16.33 $ 15.14 $ 14.68 $ 12.50
========= ========= ========= =========
Total return 4 7.86% 3.13% 17.44% (29.57)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 1,585 $ 2,490 $ 1,152 $ 450
Ratio of expenses to average net assets 1.42% 1.41% 1.40% 1.40% 5
Ratio of net investment loss
to average net assets (0.16)% (0.82)% (0.69)% (0.77)% 5
Portfolio turnover rate 97% 70% 97% 50%
- --------------------------------------------------------------------------------
1 For the period November 30, 2001 (inception date) through October 31,
2002.
2 Per share information is calculated using the average shares outstanding
method.
3 This represents less than $0.01 per share.
4 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Total
returns for periods less than one year are not annualized.
5 Annualized.
See Accompanying Notes to Financial Statements.
46
CREDIT SUISSE CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For a Class B Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2005 2004 2003 2002 1
--------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 14.82 $ 14.47 $ 12.41 $ 17.75
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss 2 (0.16) (0.23) (0.19) (0.18)
Net gain (loss) on investments
(both realized and unrealized) 1.19 0.58 2.25 (5.16)
--------- --------- --------- ---------
Total from investment operations 1.03 0.35 2.06 (5.34)
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- 0.00 3
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 15.85 $ 14.82 $ 14.47 $ 12.41
========= ========= ========= =========
Total return 4 6.95% 2.42% 16.60% (30.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 625 $ 543 $ 545 $ 206
Ratio of expenses to average net assets 2.17% 2.16% 2.15% 2.15% 5
Ratio of net investment loss to average net assets (0.91)% (1.57)% (1.44)% (1.51)% 5
Portfolio turnover rate 97% 70% 97% 50%
- --------------------------------------------------------------------------------
1 For the period November 30, 2001 (inception date) through October 31,
2002.
2 Per share information is calculated using the average shares outstanding
method.
3 This represents less than $0.01 per share.
4 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Total
returns for periods less than one year are not annualized.
5 Annualized.
See Accompanying Notes to Financial Statements.
47
CREDIT SUISSE CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For a Class C Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2005 2004 2003 2002 1
--------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 14.81 $ 14.47 $ 12.41 $ 17.75
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss 2 (0.14) (0.23) (0.19) (0.18)
Net gain (loss) on investments
(both realized and unrealized) 1.18 0.57 2.25 (5.16)
--------- --------- --------- ---------
Total from investment operations 1.04 0.34 2.06 (5.34)
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- 0.00 3
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 15.85 $ 14.81 $ 14.47 $ 12.41
========= ========= ========= =========
Total return 4 7.02% 2.35% 16.60% (30.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 471 $ 849 $ 223 $ 93
Ratio of expenses to average net assets 2.17% 2.16% 2.15% 2.14% 5
Ratio of net investment loss to average net assets (0.91)% (1.57)% (1.44)% (1.49)% 5
Portfolio turnover rate 97% 70% 97% 50%
- --------------------------------------------------------------------------------
1 For the period November 30, 2001 (inception date) through October 31,
2002.
2 Per share information is calculated using the average shares outstanding
method.
3 This represents less than $0.01 per share.
4 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Total
returns for periods less than one year are not annualized.
5 Annualized.
See Accompanying Notes to Financial Statements.
48
CREDIT SUISSE MID-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 28.04 $ 26.79 $ 18.98 $ 23.60 $ 50.24
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss (0.27) 1 (0.30) 1 (0.22) 1 (0.23) 1 (0.26)
Net gain (loss) on investments
(both realized and unrealized) 3.90 1.55 8.03 (4.39) (17.89)
---------- ---------- ---------- ---------- ----------
Total from investment operations 3.63 1.25 7.81 (4.62) (18.15)
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- 0.00 2 (8.49)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 31.67 $ 28.04 $ 26.79 $ 18.98 $ 23.60
========== ========== ========== ========== ==========
Total return 3 12.95% 4.67% 41.15% (19.57)% (42.61)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 290,509 $ 364,298 $ 407,262 $ 357,872 $ 877,983
Ratio of expenses to average net assets 1.39% 1.40% 1.38% 1.35% 1.28%
Ratio of net investment loss to average
net assets (0.87)% (1.08)% (1.04)% (0.98)% (0.73)%
Portfolio turnover rate 79% 106% 68% 67% 177%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 This represents less than $0.01 per share.
3 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
See Accompanying Notes to Financial Statements.
49
CREDIT SUISSE MID-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Class Share of the Fund Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 26.18 $ 25.14 $ 17.90 $ 22.38 $ 48.02
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss (0.40) 1 (0.41) 1 (0.31) 1 (0.33) 1 (0.46)
Net gain (loss) on investments
(both realized and unrealized) 3.64 1.45 7.55 (4.15) (16.96)
---------- ---------- ---------- ---------- ----------
Total from investment operations 3.24 1.04 7.24 (4.48) (17.42)
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- 0.00 2 (8.22)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 29.42 $ 26.18 $ 25.14 $ 17.90 $ 22.38
========== ========== ========== ========== ==========
Total return 3 12.38% 4.14% 40.45% (20.01)% (42.88)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 24,851 $ 26,474 $ 40,322 $ 42,906 $ 101,690
Ratio of expenses to average net assets 1.89% 1.90% 1.88% 1.85% 1.78%
Ratio of net investment loss to average
net assets (1.37)% (1.58)% (1.53)% (1.49)% (1.23)%
Portfolio turnover rate 79% 106% 68% 67% 177%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 This represents less than $0.01 per share.
3 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
See Accompanying Notes to Financial Statements.
50
CREDIT SUISSE MID-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2005 2004 2003 2002 1
--------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 27.77 $ 26.60 $ 18.90 $ 25.92
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss 2 (0.34) (0.38) (0.33) (0.28)
Net gain (loss) on investments
(both realized and unrealized) 3.86 1.55 8.03 (6.74)
--------- --------- --------- ---------
Total from investment operations 3.52 1.17 7.70 (7.02)
--------- --------- --------- ---------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- 0.00 3
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 31.29 $ 27.77 $ 26.60 $ 18.90
========= ========= ========= =========
Total return 4 12.68% 4.40% 40.74% (27.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 688 $ 567 $ 75 $ 1
Ratio of expenses to average net assets 1.64% 1.65% 1.63% 1.71% 5
Ratio of net investment loss to average net assets (1.12)% (1.33)% (1.36)% (1.35)% 5
Portfolio turnover rate 79% 106% 68% 67%
- --------------------------------------------------------------------------------
1 For the period November 30, 2001 (inception date) through October 31,
2002.
2 Per share information is calculated using the average shares outstanding
method.
3 This represents less than $0.01 per share.
4 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Total
returns for periods less than one year are not annualized.
5 Annualized.
See Accompanying Notes to Financial Statements.
51
CREDIT SUISSE MID-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Class B and Class C Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2005 2004 1 2005 2004 1
--------- --------- --------- ---------
CLASS B CLASS C
----------------------- -----------------------
PER SHARE DATA
Net asset value, beginning of period $ 27.64 $ 29.10 $ 27.67 $ 29.10
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss 2 (0.58) (0.38) (0.62) (0.38)
Net gain (loss) on investments
(both realized and unrealized) 3.85 (1.08) 3.86 (1.05)
--------- --------- --------- ---------
Total from investment operations 3.27 (1.46) 3.24 (1.43)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 30.91 $ 27.64 $ 30.91 $ 27.67
========= ========= ========= =========
Total return 3 11.83% (5.02)% 11.71% (4.91)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 55 $ 7 $ 1 $ 1
Ratio of expenses to average net assets 2.39% 2.40% 4 2.39% 2.40% 4
Ratio of net investment loss to average net assets (1.87)% (2.08)% 4 (1.87)% (2.08)% 4
Portfolio turnover rate 79% 106% 79% 106%
- --------------------------------------------------------------------------------
1 For the period February 27, 2004 (inception date) through October 31,
2004.
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. Total
returns for periods less than one year are not annualized.
4 Annualized.
See Accompanying Notes to Financial Statements.
52
CREDIT SUISSE SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 18.57 $ 18.14 $ 12.58 $ 15.38 $ 23.11
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss (0.23) 1 (0.23) 1 (0.18) 1 (0.18) 1 (0.18)
Net gain (loss) on investments
(both realized and unrealized) 1.19 0.66 5.74 (2.62) (7.55)
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.96 0.43 5.56 (2.80) (7.73)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 19.53 $ 18.57 $ 18.14 $ 12.58 $ 15.38
========== ========== ========== ========== ==========
Total return 2 5.17% 2.37% 44.20% (18.21)% (33.45)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 68,237 $ 78,131 $ 77,236 $ 42,918 $ 36,445
Ratio of expenses to average net assets 1.40% 1.40% 1.40% 1.40% 1.40%
Ratio of net investment loss to average
net assets (1.13)% (1.22)% (1.23)% (1.18)% (1.04)%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements 0.62% 0.59% 0.71% 0.98% 0.54%
Portfolio turnover rate 90% 100% 69% 72% 74%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the years shown, total returns would have been lower.
See Accompanying Notes to Financial Statements.
53
CREDIT SUISSE SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
------------------------------
2005 2004 1
--------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 18.53 $ 19.65
--------- ---------
INVESTMENT OPERATIONS
Net investment loss 2 (0.34) (0.20)
Net gain (loss) on investments
(both realized and unrealized) 1.17 (0.92)
--------- ---------
Total from investment operations 0.83 (1.12)
--------- ---------
NET ASSET VALUE, END OF PERIOD $ 19.36 $ 18.53
========= =========
Total return 3 4.48% (5.70)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 2 $ 1
Ratio of expenses to average net assets 1.65% 1.65% 4
Ratio of net investment loss to average net assets (1.38)% (1.47)% 4
Decrease reflected in above operating expense ratios
due to waivers/reimbursements 0.62% 0.59% 4
Portfolio turnover rate 90% 100%
- --------------------------------------------------------------------------------
1 For the period February 27, 2004 (inception date) through October 31,
2004.
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.
54
CREDIT SUISSE SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2005 2004 2003 2002 1
--------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 18.57 $ 18.14 $ 12.57 $ 16.88
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss 2 (0.23) (0.23) (0.18) (0.15)
Net gain (loss) on investments
(both realized and unrealized) 1.19 0.66 5.75 (4.16)
--------- --------- --------- ---------
Total from investment operations 0.96 0.43 5.57 (4.31)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 19.53 $ 18.57 $ 18.14 $ 12.57
========= ========= ========= =========
Total return 3 5.17% 2.37% 44.31% (25.53)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 1,165 $ 10,856 $ 920 $ 322
Ratio of expenses to average net assets 1.40% 1.40% 1.40% 1.40% 4
Ratio of net investment loss to average
net assets (1.13)% (1.21)% (1.24)% (1.14)% 4
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.62% 0.59% 0.71% 1.13% 4
Portfolio turnover rate 90% 100% 69% 72%
- --------------------------------------------------------------------------------
1 For the period November 30, 2001 (inception date) through October 31,
2002.
2 Per share information is calculated using the average shares outstanding
method.
3 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
4 Annualized.
See Accompanying Notes to Financial Statements.
55
CREDIT SUISSE SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Class B and Class C Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2005 2004 1 2005 2004 1
--------- --------- --------- ---------
CLASS B CLASS C
----------------------- -----------------------
PER SHARE DATA
Net asset value, beginning of period $ 18.48 $ 19.65 $ 18.48 $ 19.65
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss 2 (0.37) (0.24) (0.35) (0.24)
Net gain (loss) on investments
(both realized and unrealized) 1.19 (0.93) 1.18 (0.93)
--------- --------- --------- ---------
Total from investment operations 0.82 (1.17) 0.83 (1.17)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 19.30 $ 18.48 $ 19.31 $ 18.48
========= ========= ========= =========
Total return 3 4.44% (5.95)% 4.49% (5.95)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 16 $ 10 $ 1 $ 1
Ratio of expenses to average net assets 2.15% 2.15% 4 2.15% 2.15% 4
Ratio of net investment loss to average net assets (1.88)% (1.97)% 4 (1.88)% (1.97)% 4
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.62% 0.59% 4 0.62% 0.59% 4
Portfolio turnover rate 90% 100% 90% 100%
- --------------------------------------------------------------------------------
1 For the period February 27, 2004 (inception date) through October 31,
2004.
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.
56
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
The Credit Suisse Funds covered in this report are Credit Suisse Capital
Appreciation Fund ("Capital Appreciation"), Credit Suisse Mid-Cap Growth Fund
("Mid-Cap Growth") and Credit Suisse Small Cap Growth Fund ("Small Cap Growth"),
each of which is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as a diversified open-end management investment company.
Capital Appreciation was organized under the laws of the Commonwealth of
Massachusetts as a business trust on January 20, 1987. Mid-Cap Growth and Small
Cap Growth were incorporated under the laws of the State of Maryland on November
12, 1987 and October 31, 1996, respectively.
Investment objectives for each Fund are as follows: Capital Appreciation
seeks long-term capital appreciation, Mid-Cap Growth seeks maximum capital
appreciation, and Small Cap Growth seeks capital growth.
Capital Appreciation, Mid-Cap Growth and Small Cap Growth each offer five
classes of shares: Common Class, Advisor Class, Class A, Class B, and Class C
shares. The Funds' Common Class shares are closed to new investors, other than
(1) investors in employee retirement, stock, bonus, pension or profit-sharing
plans, (2) investment advisory clients of Credit Suisse Asset Management, LLC
("CSAM"), (3) certain registered investment advisers ("RIAs"), (4) certain
broker-dealers and RIAs with clients participating in comprehensive fee programs
and (5) employees of CSAM or its affiliates and current and former Directors or
Trustees of funds advised by CSAM or its affiliates. Any Common Class
shareholder as of the close of business on December 12, 2001 can continue to buy
Common Class shares of the Funds and open new accounts under the same Social
Security number. Each class of shares in each Fund represents an equal pro rata
interest in each Fund, except that they bear different expenses, which reflect
the difference in the range of services provided to them. Class A shares of each
Fund are sold subject to a maximum front-end sales charge of 5.75%. Class B
shares are sold subject to a contingent deferred sales charge which declines
from 4.00% to zero depending on the period of time the shares are held. Class C
shares are sold subject to a contingent deferred sales charge of 1.00% if the
shares are 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
57
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
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 using this method would not represent fair value. Investments in
mutual funds are valued at the mutual fund's closing net asset value per share
on the day of valuation. Securities and other assets for which market quotations
are not readily available, or whose values have been materially affected by
events occurring before each Fund's Valuation Time but after the close of the
securities' primary markets, are valued at fair value as determined in good
faith by, or under the direction of, the Board of Trustees/Directors under
procedures established by the Board of Trustees/Directors. Each Fund may utilize
a service provided by an independent third party which has been approved by the
Board of Trustees/Directors to fair value certain securities. When fair-value
pricing is employed, the prices of securities used by a fund to calculate its
net asset value may differ from quoted or published prices for the same
securities.
B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Funds are
maintained in U.S. dollars. Transactions denominated in foreign currencies are
recorded at the current prevailing exchange rates. All assets and liabilities
denominated in foreign currencies are translated into U.S. dollar amounts at the
current exchange rate at the end of the period. Translation gains or losses
resulting from changes in the exchange rate during the reporting period and
realized gains and losses on the settlement of foreign currency transactions are
reported in the results of operations for the current period. The Funds do not
isolate that portion of realized gains and losses on investments in EQUITY
securities which is due to changes in the foreign exchange rate from that which
is due to changes in market prices of equity securities. The Funds isolate that
portion of realized gains and losses on investments in DEBT securities which
58
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
is due to changes in the foreign exchange rate from that which is due to changes
in market prices of debt securities.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions
are accounted for on a trade date basis. Interest income is recorded on the
accrual basis. Dividends are recorded on the ex-dividend date. Certain expenses
are class-specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon the relative net asset value
of the outstanding shares of that class. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income and distributions of net realized capital gains, if any, are
declared and paid at least annually. However, to the extent that a net realized
capital gain can be reduced by a capital loss carryforward, such gain will not
be distributed. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from accounting
principles generally accepted in the United States of America ("GAAP").
E) 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.
F) USE OF ESTIMATES -- The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities 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.
G) SHORT-TERM INVESTMENTS -- The Funds, together with other
funds/portfolios advised by CSAM, an indirect, wholly-owned subsidiary of Credit
Suisse Group, pool available cash into a short-term variable rate time deposit
issued by State Street Bank and Trust Company ("SSB"), the Funds'
59
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
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.
H) SECURITIES LENDING -- Loans of securities are required at all times to
be secured by collateral at least equal to 102% of the market value of domestic
securities on loan (including any accrued interest thereon) and 105% of the
market value of foreign securities on loan (including any accrued interest
thereon). Cash collateral received by the Funds in connection with securities
lending activity may be pooled together with cash collateral for other
funds/portfolios advised by CSAM and may be invested in a variety of
investments, including certain CSAM-advised funds, funds advised by SSB, the
Funds' securities lending agent or money market instruments. However, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
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
year ended October 31, 2005, total earnings from the investment in cash
collateral received in connection with Capital Appreciation, Mid-Cap Growth and
Small Cap Growth's securities lending arrangements were $541,269, $1,416,595 and
$635,067, respectively of which $520,683, $1,357,955, and $581,813,
respectively, were rebated to borrowers (brokers). The Funds retained $14,476,
$41,325 and $37,463 in income, respectively, from the cash collateral investment
and SSB, as lending agent, was paid $6,110, $17,315 and $15,791, respectively.
The Funds may also be entitled to certain minimum amounts of income from their
securities lending activities. Securities lending is accrued as earned.
I) OTHER -- The Funds may invest in securities of foreign countries and
governments which involve certain risks in addition to those inherent in
domestic investments. Such risks generally include, among others, currency risks
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.
60
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The Funds may be subject to taxes imposed by countries in which they
invest, with respect to their investments in issuers existing or operating in
such countries. Such taxes are generally based on income earned or repatriated
and capital gains realized on the sale of such investments. These Funds accrue
such taxes when the related income or gains are earned.
Capital Appreciation and Mid-Cap Growth may each invest up to 10% of its
total assets in non-publicly traded securities. Small Cap Growth may invest up
to 15% of its net assets in such 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 such Fund or the current carrying
values, and the difference could be material.
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser to each Fund. For its investment
advisory services, CSAM is entitled to receive a fee from each Fund based on the
following fee schedule:
FUND ANNUAL RATE
---- -----------
Capital Appreciation 0.70% of average daily net assets
Mid-Cap Growth 0.90% of average daily net assets
Small Cap Growth 1.00% of average daily net assets
For the year ended October 31, 2005, investment advisory fees earned and
voluntarily waived for the Funds were as follows:
GROSS NET
ADVISORY ADVISORY
FUND FEE WAIVER FEE
---- ----------- --------- -----------
Capital Appreciation $ 2,682,159 $ -- $ 2,682,159
Mid-Cap Growth 3,186,515 -- 3,186,515
Small Cap Growth 814,417 (498,676) 315,741
CSAM will not recapture from the Funds any fees they waived during the
fiscal year ended October 31, 2005. Fee waivers and reimbursements are voluntary
and may be discontinued by CSAM at any time.
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate
of CSAM, and SSB serve as each Fund's co-administrators.
For co-administrative services, CSAMSI currently receives a fee calculated
at an annual rate of 0.10% of each Fund's average daily net assets.
61
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
For the year ended October 31, 2005, co-administrative services fees
earned by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Capital Appreciation $ 383,166
Mid-Cap Growth 354,057
Small Cap Growth 81,442
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 year ended October 31, 2005, co-administrative services fees earned by SSB
(including out-of-pocket fees) were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Capital Appreciation $ 258,922
Mid-Cap Growth 240,860
Small Cap Growth 66,430
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. These fees are calculated at an annual rate
of 0.25% of the average daily net assets of the Common Class shares of Small Cap
Growth. For the Advisor Class shares of Capital Appreciation, Mid-Cap Growth and
Small Cap Growth, the shareholder servicing fee is calculated at an annual rate
of 0.50% of the average daily net assets. For the Class A shares of each Fund,
the fee is calculated at an annual rate of 0.25% of average daily net assets.
For the Class B and Class C shares of each Fund, the fee is calculated at an
annual rate of 1.00% of average daily net assets.
Certain brokers, dealers and financial representatives provide transfer
agent related services to the Funds, and receive compensation for these services
from CSAM. CSAM is then reimbursed by the Funds. For the year ended October 31,
2005, the Funds reimbursed CSAM the following amounts, which are included in
each Fund's transfer agent expense as follows:
FUND AMOUNT
---- -----------
Capital Appreciation $ 1,023,876
Mid-Cap Growth 1,063,205
Small Cap Growth 214,438
62
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
For the year ended October 31, 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
---- -------
Capital Appreciation $ 1,556
Mid-Cap Growth 4,689
Small Cap Growth 1,221
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Funds to provide certain financial printing and fulfillment services. For
the year ended October 31, 2005, Merrill was paid for its services by the Funds
as follows:
FUND AMOUNT
---- -------
Capital Appreciation $ 9,182
Mid-Cap Growth 9,513
Small Cap Growth 9,800
NOTE 4. LINE OF CREDIT
The Funds, together with other funds/portfolios advised by CSAM
(collectively, the "Participating Funds"), participates in a $75 million
committed, unsecured line of credit facility ("Credit Facility") for temporary
or emergency purposes with Deutsche Bank, A.G. as administrative agent and
syndication agent and SSB as operations agent. Under the terms of the Credit
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
October 31, 2005, and during the year ended October 31, 2005, Capital
Appreciation had borrowings under the Credit Facility as follows:
AVERAGE DAILY WEIGHTED AVERAGE MAXIMUM DAILY
LOAN BALANCE INTEREST RATE% LOAN OUTSTANDING
------------- ---------------- ----------------
$ 11,288,250 3.715% $ 12,800,000
NOTE 5. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 2005, purchases and sales of investment
securities (excluding short-term investments) were as follows:
FUND PURCHASES SALES
---- ------------- -------------
Capital Appreciation $ 361,128,027 $ 541,519,461
Mid-Cap Growth 268,951,503 392,467,474
Small Cap Growth 69,340,662 97,269,113
63
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 6. RESTRICTED SECURITIES
Certain investments of Mid-Cap Growth are restricted as to resale and are
valued at fair value as determined in good faith by, or under the direction of,
the Board of Directors under procedures established by the Board of Directors.
The Fund does not have the right to demand that such securities be registered.
PERCENTAGE
SECURITY NUMBER OF ACQUISITION FAIR VALUE PER OF NET ASSET
DESCRIPTION SHARES DATE COST VALUE SHARE VALUE
----------- ---------- ----------- ----------- ----- --------- ------------
Celletra Ltd, Series C 1,102,524 4/5/2000 $ 7,000,000 $ -- $ -- 0.00%
NOTE 7. CAPITAL SHARE TRANSACTIONS
Capital Appreciation is authorized to issue an unlimited number of full
and fractional shares of beneficial interest. Each of Mid-Cap Growth and Small
Cap Growth has four billion full and fractional shares of capital stock
authorized and classified as follows: one billion as Common Class shares, one
billion as Advisor Class shares, one billion as Class A shares, 500 million as
Class B shares and 500 million as Class C shares. Each Fund has a par value of
$.001 per share. Transactions in classes of each Fund were as follows:
CAPITAL APPRECIATION
-----------------------------------------------------------------
COMMON CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 2,566,966 $ 41,499,430 3,848,365 $ 58,954,276
Shares redeemed (13,336,351) (216,507,743) (10,306,226) (157,364,379)
------------- --------------- -------------- --------------
Net decrease (10,769,385) $ (175,008,313) (6,457,861) $ (98,410,103)
============= =============== ============== ==============
CAPITAL APPRECIATION
-----------------------------------------------------------------
ADVISOR CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 149,912 $ 2,314,915 199,778 $ 2,945,030
Shares redeemed (816,085) (12,252,335) (415,383) (6,130,851)
------------- --------------- -------------- --------------
Net decrease (666,173) $ (9,937,420) (215,605) $ (3,185,821)
============= =============== ============== ==============
64
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 7. CAPITAL SHARE TRANSACTIONS
CAPITAL APPRECIATION
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 23,682 $ 385,275 119,043 $ 1,813,009
Shares redeemed (90,972) (1,443,783) (33,093) (497,864)
------------- --------------- -------------- --------------
Net increase (decrease) (67,290) $ (1,058,508) 85,950 $ 1,315,145
============= =============== ============== ==============
CAPITAL APPRECIATION
-----------------------------------------------------------------
CLASS B
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 6,301 $ 95,350 9,821 $ 147,233
Shares redeemed (3,524) (55,323) (10,851) (158,817)
------------- --------------- -------------- --------------
Net increase (decrease) 2,777 $ 40,027 (1,030) $ (11,584)
============= =============== ============== ==============
CAPITAL APPRECIATION
-----------------------------------------------------------------
CLASS C
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 3,834 $ 61,028 48,042 $ 717,594
Shares redeemed (31,412) (492,672) (6,169) (90,752)
------------- --------------- -------------- --------------
Net increase (decrease) (27,578) $ (431,644) 41,873 $ 626,842
============= =============== ============== ==============
MID-CAP GROWTH
-----------------------------------------------------------------
COMMON CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 1,019,244 $ 31,542,889 2,492,444 $ 70,859,091
Shares redeemed (4,837,382) (148,538,062) (4,703,603) (131,227,801)
------------- --------------- -------------- --------------
Net decrease (3,818,138) $ (116,995,173) (2,211,159) $ (60,368,710)
============= =============== ============== ==============
65
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 7. CAPITAL SHARE TRANSACTIONS
MID-CAP GROWTH
-----------------------------------------------------------------
ADVISOR CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 156,080 $ 4,491,001 668,569 $ 17,674,545
Shares redeemed (322,505) (9,285,894) (1,261,363) (32,765,904)
------------- --------------- -------------- --------------
Net decrease (166,425) $ (4,794,893) (592,794) $ (15,091,359)
============= =============== ============== ==============
MID-CAP GROWTH
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 7,969 $ 250,387 25,692 $ 720,949
Shares redeemed (6,383) (190,430) (8,077) (221,074)
------------- --------------- -------------- --------------
Net increase 1,586 $ 59,957 17,615 $ 499,875
============= =============== ============== ==============
MID-CAP GROWTH
-----------------------------------------------------------------
CLASS B
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004 1
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 1,530 $ 46,060 264 $ 8,000
------------- --------------- -------------- --------------
Net increase 1,530 $ 46,060 264 $ 8,000
============= =============== ============== ==============
MID-CAP GROWTH
-----------------------------------------------------------------
CLASS C
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004 1
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold -- $ -- 34 $ 1,000
------------- --------------- -------------- --------------
Net increase -- $ -- 34 $ 1,000
============= =============== ============== ==============
66
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 7. CAPITAL SHARE TRANSACTIONS
SMALL CAP GROWTH
-----------------------------------------------------------------
COMMON CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 317,122 $ 6,265,352 1,948,573 $ 37,517,015
Shares redeemed (1,030,817) (20,496,570) (1,998,668) (37,333,447)
------------- --------------- -------------- --------------
Net increase (decrease) (713,695) $ (14,231,218) (50,095) $ 183,568
============= =============== ============== ==============
SMALL CAP GROWTH
-----------------------------------------------------------------
ADVISOR CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004 1
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 53 $ 1,100 51 $ 1,000
------------- --------------- -------------- --------------
Net increase 53 $ 1,100 51 $ 1,000
============= =============== ============== ==============
SMALL CAP GROWTH
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 160,159 $ 3,154,418 600,195 $ 11,024,774
Shares redeemed (685,237) (13,644,555) (66,165) (1,237,657)
------------- --------------- -------------- --------------
Net increase (decrease) (525,078) $ (10,490,137) 534,030 $ 9,787,117
============= =============== ============== ==============
SMALL CAP GROWTH
-----------------------------------------------------------------
CLASS B
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004 1
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold 272 $ 5,300 564 $ 10,251
------------- --------------- -------------- --------------
Net increase 272 $ 5,300 564 $ 10,251
============= =============== ============== ==============
67
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 7. CAPITAL SHARE TRANSACTIONS
SMALL CAP GROWTH
-----------------------------------------------------------------
CLASS C
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004 1
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------- --------------- -------------- --------------
Shares sold -- $ -- 50 $ 1,000
------------- --------------- -------------- --------------
Net increase -- $ -- 50 $ 1,000
============= =============== ============== ==============
________________________________________________________________________________
1 For the period February 27, 2004 (inception date) through October 31,
2004.
On October 31, 2005, the number of shareholders that held 5% or more of
the outstanding shares of each Fund were as follows:
NUMBER OF APPROXIMATE PERCENTAGE
FUND SHAREHOLDERS OF OUTSTANDING SHARES
---- ------------ ----------------------
Capital Appreciation
Common 4 46%
Advisor 5 60%
Class A 3 41%
Class B 5 65%
Class C 4 76%
Mid-Cap Growth
Common 4 55%
Advisor 1 89%
Class A 4 72%
Class B 9 93%
Small Cap Growth
Common 2 81%
Advisor 2 99%
Class A 3 43%
Class B 4 99%
Some of the shareholders are omnibus accounts, which hold shares on behalf
of individual shareholders.
NOTE 8. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP. There were no
distributions for the years ended October 31, 2005 and October 31, 2004. The tax
basis components of distributable earnings differ from the amounts reflected in
the Statement of Assets and Liabilities by temporary book/tax differences. These
differences are primarily due to differing treatments of losses deferred due to
wash sales.
68
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 8. FEDERAL INCOME TAXES
At October 31, 2005, the components of distributable earnings on a tax
basis for the Funds were as follows:
CAPITAL MID-CAP SMALL CAP
APPRECIATION GROWTH GROWTH
--------------- -------------- ----------
Accumulated net realized loss $ (355,060,852) $ (180,548,642) $ (280,634)
Net unrealized appreciation 45,756,715 38,358,602 3,370,512
Undistributed net
investment income 277,820 -- --
--------------- -------------- ----------
$ (309,026,317) $ (142,190,040) $3,089,878
=============== ============== ==========
At October 31, 2005, the Funds had capital loss carryforwards available to
offset possible future capital gains as follows:
EXPIRES OCTOBER 31,
----------------------------------------------
FUND 2009 2010 2011
- ---- --------------- -------------- -----------
Capital Appreciation $ 130,577,919 $ 186,923,215 $37,559,718
Mid-Cap Growth 155,878,717 24,669,925 --
Small Cap Growth -- 39,595 241,039
During the tax year ended October 31, 2005, Capital Appriciation, Mid-Cap
Growth and Small Cap Growth have utilized $30,017,969, $41,478,404 and
$8,924,859 of the capital loss carryforwards, respectively.
As of October 31, 2005, the identified cost for federal income tax
purposes, as well as the gross unrealized appreciation from investments for
those securities having an excess of value over cost, gross unrealized
depreciation from investments for those securities having an excess of cost over
value and the net unrealized appreciation from investments were as follows:
GROSS UNREALIZED GROSS UNREALIZED NET UNREALIZED
FUND IDENTIFIED COST APPRECIATION (DEPRECIATION) APPRECIATION
- ---- --------------- ---------------- ---------------- --------------
Capital Appreciation $ 280,517,670 $ 51,898,452 $ (6,141,737) $ 45,756,715
Mid-Cap Growth 330,576,555 55,612,746 (17,254,144) 38,358,602
Small Cap Growth 84,840,481 9,757,861 (6,387,349) 3,370,512
At October 31, 2005, accumulated undistributed net investment income and
paid-in capital have been adjusted for current period permanent book/tax
differences which arose principally from differing book/tax treatments of net
operating losses. Net assets were not affected by these reclassifications:
PAID-IN UNDISTRIBUTED
FUND CAPITAL NET INVESTMENT INCOME
---- ------------ ---------------------
Mid-Cap Growth $ (3,208,392) $ 3,208,392
Small Cap Growth $ (927,136) $ 927,136
69
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 9. CONTINGENCIES
In the normal course of business, the Funds may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Funds' maximum exposure under these arrangements is dependent on future claims
that may be made against the Funds and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
70
CREDIT SUISSE FUNDS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Directors/Trustees and Shareholders of
Credit Suisse Capital Appreciation Fund;
Credit Suisse Mid-Cap Growth Fund, Inc.;
Credit Suisse Small Cap Growth Fund, Inc.:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Credit Suisse Capital Appreciation
Fund, Credit Suisse Mid-Cap Growth Fund, Inc., and Credit Suisse Small Cap
Growth Fund, Inc. (hereafter referred to as the "Funds") at October 31, 2005,
the results of each of their operations for the year then ended, the changes in
each of their net assets for each of the two years in the period then ended and
the financial highlights for each of the years (or periods) presented, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2005 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
December 19, 2005
71
CREDIT SUISSE FUNDS
INFORMATION CONCERNING DIRECTORS/TRUSTEES AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
TERM NUMBER OF
OF OFFICE 1 PORTFOLIOS IN
AND FUND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING BY DIRECTOR/ HELD BY
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE DIRECTOR/TRUSTEE
- ----------------------- ------------- ----------- ------------------------- -------------- -----------------------
INDEPENDENT DIRECTORS/TRUSTEES
Enrique Arzac Director/ Since Professor of Finance 47 Director of The
c/o Credit Suisse Asset Trustee, 2005 and Economics, Adams Express
Management, LLC. Nominating Graduate School of Company
Attn: General Counsel Committee Business, Columbia (a closed-end
466 Lexington Avenue Member University since 1971. investment company);
New York, New York and Audit Director of Petroleum
10017-3140 Committee and Resources
Chairman Corporation (a closed-
Date of Birth: 02/10/41 end investment company)
Richard H. Francis Director/ Since Currently retired 41 None
c/o Credit Suisse Asset Trustee, 1999
Management, LLC Nominating
Attn: General Counsel and Audit
466 Lexington Avenue Committee
New York, New York Member
10017-3140
Date of Birth: 04/23/32
Jeffrey E. Garten Director/ Since The Juan Trippe 40 Director of
Box 208200 Trustee, 1998 2 Professor in the Aetna, Inc.
New Haven, Connecticut Nominating Practice of International (insurance company);
06520-8200 and Audit Trade, Finance and Director of
Committee Business from July CarMax Group
Date of Birth: 10/29/46 Member 2005 to present; Partner (used car
and Chairman of Garten dealers)
Rothkopf (consulting
firm) from October 2005
to present; Dean of Yale
School of Management
from November 1995
to June 2005.
Peter F. Krogh Director/ Since Dean Emeritus and 40 Director
301 ICC Trustee, 2001 Distinguished Professor of Carlisle
Georgetown University Nominating of International Affairs Companies
Washington, DC 20057 and Audit at the Edmund A. Incorporated
Committee Walsh School of (diversified
Date of Birth: 02/11/37 Member Foreign Service, manufacturing
Georgetown University company)
from June 1995
to present.
_______________
1 Each Director/Trustee and Officer serves until his or her respective
successor has been duly elected and qualified.
2 Mr. Garten was initially appointed as a Director/Trustee of Capital
Appreciation, Mid-Cap Growth and Small Cap Growth on February 6, 1998. He
resigned as Director/Trustee on February 3, 2000 and was subsequently
reappointed on December 21, 2000.
72
CREDIT SUISSE FUNDS
INFORMATION CONCERNING DIRECTORS/TRUSTEES AND OFFICERS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TERM NUMBER OF
OF OFFICE 1 PORTFOLIOS IN
AND FUND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING BY DIRECTOR/ HELD BY
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE DIRECTOR/TRUSTEE
- ----------------------- ------------- ----------- ------------------------- -------------- -----------------------
INDEPENDENT DIRECTORS/TRUSTEES
James S. Pasman, Jr. Director/ Since Currently retired 42 Director of
c/o Credit Suisse Asset Trustee, 1999 Education
Management, LLC Nominating Management
Attn: General Counsel and Audit Corp.
466 Lexington Avenue Committee
New York, New York Member
10017-3140
Date of Birth: 12/20/30
Steven N. Rappaport Chairman of Director/ Partner of Lehigh 46 Director of
Lehigh Court, LLC the Board of Trustee Court, LLC and RZ Presstek, Inc.
40 East 52nd Street Directors/ since Capital (private (digital imaging
New York, New York Trustees, 1999 investment firms) technologies
10022 Nominating and from July 2002 to company); Director
Committee Chairman present; Transition of Wood Resources,
Date of Birth: 07/10/48 Chairman since Adviser to SunGard LLC. (plywood
and Audit 2005 Securities Finance, manufacturing
Committee Inc. from February company)
Member 2002 to July 2002;
President of SunGard
Securities Finance, Inc.
from 2001 to February
2002; President of
Loanet, Inc. (on-line
accounting service)
from 1997 to 2001
INTERESTED DIRECTORS/TRUSTEES
Michael E. Kenneally 3, 4 Director/ Since Chairman and Global 40 None
c/o Credit Suisse Asset Trustee 2004 Chief Executive Officer
Management, LLC of CSAM from March
Attn: General Counsel 2003 to July 2005;
466 Lexington Avenue Chairman and Chief
New York, New York Investment Officer of
10017-3140 Banc of America Capital
Management from
Date of Birth: 03/30/54 1998 to March 2003.
_______________
3 Mr. Kenneally is a Director/Trustee who is an "interested person" of the
Fund as defined in the 1940 Act, because he was an officer of CSAM within
the last two fiscal years.
4 Effective July 31, 2005, Steven B. Plump was appointed as Chief Executive
Officer and President of the Funds. Mr. Kenneally, who previously held
these positions, resigned effective July 31, 2005.
73
CREDIT SUISSE FUNDS
INFORMATION CONCERNING DIRECTORS/TRUSTEES AND OFFICERS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TERM OF
OFFICE 1 AND
POSITION(S) LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ----------------------- -------------- ------------ ---------------------------------------------------------
OFFICERS
Steven Plump 4 Chief Since Managing Director; Associated with CSAM or its predecessor
Credit Suisse Asset Executive 2005 since 1995; Officer of other Credit Suisse Funds
Management, LLC Officer
466 Lexington Avenue and
New York, New York President
11017-3140
Date of Birth: 02/8/59
Michael A. Pignataro Chief Since Director and Director of Fund Administration of CSAM;
Credit Suisse Asset Financial 1999 Associated with CSAM or its predecessor since 1984;
Management, LLC Officer and Officer of other Credit Suisse Funds
466 Lexington Avenue Treasurer
New York, New York
10017-3140
Date of Birth:11/15/59
Emidio Morizio Chief Since Director and Global Head of Compliance of CSAM;
Credit Suisse Asset Compliance 2004 Associated with CSAM since July 2000; Vice President
Management, LLC Officer and Director of Compliance of Forstmann-Leff Associates
466 Lexington Avenue from 1998 to June 2000; Officer of other Credit Suisse Funds
New York, New York
10017-3140
Date of Birth: 09/21/66
Ajay Mehra Chief Legal Since Director and General Counsel (Americas) of CSAM since
Credit Suisse Asset Officer 2004 September 2004; Senior Associate of Shearman & Sterling
Management, LLC LLP from September 2000 to September 2004; Senior
466 Lexington Avenue Counsel of the SEC Division of Investment
New York, New York Management from June 1997 to September 2000; Officer
10017-3140 of other Credit Suisse Funds
Date of Birth: 08/14/70
J. Kevin Gao Vice Since Vice President and Associate General Counsel of CSAM;
Credit Suisse Asset President 2004 Associated with CSAM since July 2003; Associated with
Management, LLC and the law firm of Willkie Farr & Gallagher LLP from 1998
466 Lexington Avenue Secretary to 2003; Officer of other Credit Suisse Funds
New York, New York
10017-3140
Date of Birth: 10/13/67
_______________
4 Effective July 31, 2005, Steven B. Plump was appointed as Chief Executive
Officer and President of the Funds. Mr. Kenneally, who previously held
these positions, resigned effective July 31, 2005.
74
CREDIT SUISSE FUNDS
INFORMATION CONCERNING DIRECTORS/TRUSTEES AND OFFICERS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TERM OF
OFFICE 1 AND
POSITION(S) LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ----------------------- -------------- ------------ ---------------------------------------------------------
OFFICERS
Robert Rizza Assistant Since Assistant Vice President of CSAM; Associated with CSAM
Credit Suisse Asset Treasurer 2002 since 1998; Officer of other Credit Suisse Funds
Management, LLC
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 12/09/65
The Statement of Additional Information includes additional information
about the Directors/Trustees and is available, without charge, upon request, by
calling 800-927-2874.
75
CREDIT SUISSE FUNDS
PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION
- --------------------------------------------------------------------------------
Information regarding how each Fund voted proxies related to its portfolio
securities during the 12-month period ended June 30 of each year, 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 Funds' website, www.csam.com/us
o On the website of the Securities and Exchange Commission,
http://www.sec.gov.
Each 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.
76
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. USEQGTH-AR-1005
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics applicable to its Chief Executive
Officer, President, Chief Financial Officer and Chief Accounting Officer, or
persons performing similar functions. A copy of the code is filed as Exhibit
12(a)(1) to this Form. There were no amendments to the code during the fiscal
year ended October 31, 2005. There were no waivers or implicit waivers from the
code granted by the registrant during the fiscal year ended October 31, 2005.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's governing board has determined that it has four audit committee
financial experts serving on its audit committee: Enrique R. Arzac, Richard H.
Francis, James S. Pasman, Jr., and Steven N. Rappaport. Each audit committee
financial expert is "independent" for purposes of this item.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) through (d). The information in the table below is provided for services
rendered to the registrant by its independent registered public accounting firm,
PricewaterhouseCoopers LLP ("PwC"), for its fiscal years ended October 31, 2004
and October 31, 2005.
- ---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
- ---------------------------------------- -------------------------------------- --------------------------------------
Audit Fees $46,401 $42,472
- ---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees1 $4,500 $3,150
- ---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees2 $2,323 $2,439
- ---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees -- --
- ---------------------------------------- -------------------------------------- --------------------------------------
Total $53,224 $48,061
- ---------------------------------------- -------------------------------------- --------------------------------------
1 Services include agreed-upon procedures in connection with the registrant's
semi-annual financial statements ($3,000 for 2004 and $3,150 for 2005), the
registrant's third quarter 2004 Form N-Q filing ($1,500) in 2004.
2 Tax services in connection with the registrant's excise tax calculations
and review of the registrant's applicable tax returns.
The information in the table below is provided with respect to non-audit
services that directly relate to the registrant's operations and financial
reporting and that were rendered by PwC to the registrant's investment adviser,
Credit Suisse Asset Management, LLC ("CSAM"), and any service provider to the
registrant controlling, controlled by or under common control with CSAM that
provided ongoing services to the registrant ("Covered Services Provider"), for
the registrant's fiscal years ended October 31, 2004 and October 31, 2005.
- ---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
- ---------------------------------------- -------------------------------------- --------------------------------------
2
- ---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees N/A $394,000
- ---------------------------------------- -------------------------------------- --------------------------------------
Total N/A $394,000
- ---------------------------------------- -------------------------------------- --------------------------------------
(e)(1) Pre-Approval Policies and Procedures. The Audit Committee ("Committee")
of the registrant is responsible for pre-approving (i) all audit and permissible
non-audit services to be provided by the independent registered public
accounting firm to the registrant and (ii) all permissible non-audit services to
be provided by the independent registered public accounting firm to CSAM and any
Covered Services Provider if the engagement relates directly to the operations
and financial reporting of the registrant. The Committee may delegate its
responsibility to pre-approve any such audit and permissible non-audit services
to the Chairperson of the Committee, and the Chairperson shall report to the
Committee, at its next regularly scheduled meeting after the Chairperson's
pre-approval of such services, his or her decision(s). The Committee may also
establish detailed pre-approval policies and procedures for pre-approval of such
services in accordance with applicable laws, including the delegation of some or
all of the Committee's pre-approval responsibilities to other persons (other
than CSAM or the registrant's officers). Pre-approval by the Committee of any
permissible non-audit services shall not be required so long as: (i) the
aggregate amount of all such permissible non-audit services provided to the
registrant, CSAM and any Covered Services Provider constitutes not more than 5%
of the total amount of revenues paid by the registrant to its independent
registered public accounting firm during the fiscal year in which the
permissible non-audit services are provided; (ii) the permissible non-audit
services were not recognized by the registrant at the time of the engagement to
be non-audit services; and (iii) such services are promptly brought to the
attention of the Committee and approved by the Committee (or its delegate(s))
prior to the completion of the audit.
(e)(2) The information in the table below sets forth the percentages of fees for
services (other than audit, review or attest services) rendered by PwC to the
registrant for which the pre-approval requirement was waived pursuant to Rule
2-01(c)(7)(i)(C) of Regulation S-X:
- ---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
- ---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
Total N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
3
The information in the table below sets forth the percentages of fees for
services (other than audit, review or attest services) rendered by PwC to CSAM
and any Covered Services Provider required to be approved pursuant to Rule
2-01(c)(7)(ii)of Regulation S-X, for the registrant's fiscal years ended October
31, 2004 and October 31, 2005:
- ---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
- ---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
Total N/A N/A
- ---------------------------------------- -------------------------------------- --------------------------------------
(f) Not Applicable.
(g) The aggregate fees billed by PwC for non-audit services rendered to the
registrant, CSAM and Covered Service Providers for the fiscal years ended
October 31, 2004 and October 31, 2005 were $6,823 and $ 5,589, respectively.
(h) Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Form N-CSR disclosure requirement 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.
4
Form N-CSR disclosure requirement is not applicable to the registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Form N-CSR disclosure requirement is not applicable to the registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Form N-CSR disclosure requirement is not applicable to the registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
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
second fiscal quarter of the period covered by this
5
report that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Registrant's Code of Ethics is an exhibit to this report.
(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.
6
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 Appreciation Fund
/s/ Steven B. Plump
-------------------
Name: Steven B. Plump
Title: Chief Executive Officer
Date: January 9, 2006
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/ Steven B. Plump
-------------------
Name: Steven B. Plump
Title: Chief Executive Officer
Date: January 9, 2006
/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: January 9, 2006
7