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. 811-9054
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CREDIT SUISSE OPPORTUNITY FUNDS
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(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
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(Address of Principal Executive Offices) (Zip Code)
J. Kevin Gao, Esq.
Credit Suisse Opportunity Funds
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: October 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
HIGH INCOME FUND
The Fund's investment objectives, risks, charges and expenses (which should be
considered carefully before investing), and more complete information about the
Fund, are provided in the PROSPECTUS, which should be read carefully before
investing. You may obtain additional copies by calling 800-927-2874 or by
writing to Credit Suisse Funds, P.O. Box 55030, Boston, MA 02205-5030.
Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466
Lexington Ave., New York, NY 10017-3140. Credit Suisse Funds are advised by
Credit Suisse Asset Management, LLC.
INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD BE AWARE THAT THEY MAY BE ELIGIBLE
TO PURCHASE COMMON CLASS AND/OR ADVISOR CLASS SHARES (WHERE OFFERED) DIRECTLY OR
THROUGH CERTAIN INTERMEDIARIES. SUCH SHARES ARE NOT SUBJECT TO A SALES CHARGE
BUT MAY BE SUBJECT TO AN ONGOING SERVICE AND DISTRIBUTION FEE OF UP TO 0.50% OF
AVERAGE DAILY NET ASSETS. INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD ALSO BE
AWARE THAT THEY MAY BE ELIGIBLE FOR A REDUCTION OR WAIVER OF THE SALES CHARGE
WITH RESPECT TO CLASS A, B OR C SHARES. FOR MORE INFORMATION, PLEASE REVIEW THE
RELEVANT PROSPECTUSES OR CONSULT YOUR FINANCIAL REPRESENTATIVE.
THE VIEWS OF THE FUND'S MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND THE FUND
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF 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 HIGH INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2005 (unaudited)
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November 23, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/04 - 10/31/05
FUND & BENCHMARKS PERFORMANCE
Common Class 1 3.02%
Class A 1,2 2.75%
Class B 1,2 1.91%
Class C 1,2 1.91%
Citigroup High-Yield Market Index 3 (CHYMI) 3.55%
Lipper High Yield Bond Funds Index 3 4.12%
Performance for the Fund's Class A, Class B and Class C shares is without the
maximum sales charge of 4.75%, 4.00% and 1.00%, respectively. 2
MARKET OVERVIEW: A SHIFT IN THE CYCLE
In the Fund's fiscal year high yield outperformed the broad fixed income
market (as measured by the Lehman Brothers Aggregate Bond Index 4 , which
returned 1.13%), although the magnitude of outperformance narrowed significantly
from that of the last several years.
In our view, this was due to the natural progress of the credit and
business cycles. After intense focus on balance sheet repair prompted by strong
earnings growth and low interest rates, corporations are increasingly turning to
address their lackluster share prices (through share repurchases, dividend
increases and other measures) in an effort to boost shareholder value. But while
a number of signs suggest to us that the shift in the corporate credit cycle is
clearly underway, credit fundamentals remain sound.
Other signs of the market's transitional nature include the issuer default
rate (as measured by Moody's Investor Services), which remained below 2% through
the entire fiscal year period. Though Moody's now expects defaults to rise
toward 3.2% by September of 2006, that number is well below its historical
average. As for valuations, spreads also remained below their historical
averages for most of the period, but widened dramatically with the downgrade of
General Motors and Ford to junk status. These fallen angels brought
approximately $82 billion of debt (market value prior to downgrade) and a spike
in volatility into the high yield market. Together they now account for about
12% of the index. (As of October 31, 2005, the Fund's exposure to these
companies consisted of a 0.7% weighting in Ford Credit Co. securities and a 2.4%
weighting in General Motors Acceptance Co. securities.)
1
CREDIT SUISSE HIGH INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
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In our view, this influx of fallen angel debt caused the greatest
turbulence, and provided the greatest drag, on the high yield market in the
period. Although the fiscal year saw a 35% decline in the number of high yield
deals and a 32% drop in new issue volume, this decrease in new supply was easily
outweighed by the entrance of Ford, GM and Delphi debt into the high yield
arena. Meanwhile, on the demand side, high yield mutual funds reported an $8.3
billion outflow through October 2005 compared to a $3.2 billion outflow during
the same period in 2004, but this indicator does not account for the increasing
role of hedge funds and other market participants.
In sum, all of these factors, along with the impact of the Gulf Coast
hurricanes, growing inflation concerns due to persistently high energy costs,
and the general absence of any significant positive momentum in the space,
weighed on the market, resulting in greater caution among investors.
STRATEGIC REVIEW: SECTOR AND SECURITY SELECTION DRIVE PERFORMANCE
The Fund underperformed its CHYMI benchmark primarily due to its relative
positioning in underperforming industry sectors. Most notably, while we had
positive issue selection within the Diversified Telecommunications industry, it
was also our largest underweight relative to the Index, and one of this year's
better performing sectors. We were also underweight to the Energy sector, which
like Telecommunications was one of the year's winners.
On the positive side, aiding performance in the period was our significant
overweight to the Wireless sector, which was among the best performing
industries in high yield this year. Another sector decision that contributed
positively to performance was our underweight to Airlines, an industry that has
seen its margins squeezed by high energy costs and has suffered a number of high
profile bankruptcies in the past year.
OUTLOOK: RATES AND RISK AVERSION ON THE RISE
Looking ahead, we believe that high energy prices and broad inflation
fears could eventually prove to be a drag on earnings and a potential disruption
to economic growth. Although corporate credit fundamentals remain sound, we
expect issuer specific event risk to rise. Therefore, security selection will be
a critical driver of performance going forward and we will focus on those issues
experiencing stable or improving margins and cash flows.
2
CREDIT SUISSE HIGH INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
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In addition, fed funds futures are currently pricing in a target rate of
4.25% by year-end 2005, another potential catalyst for market weakness ahead.
With each step in the Federal Reserve's measured pace of monetary tightening,
the market has registered slightly greater risk aversion; low yields and tight
spreads only increase the vulnerability to interest rate risk. We will therefore
remain cautious on the most interest rate sensitive securities.
Credit Suisse High Yield Management Team
Michael E. Gray
Martha Metcalf
Wing Chan
HIGH YIELD BONDS ARE LOWER-QUALITY BONDS THAT ARE ALSO KNOWN AS "JUNK
BONDS." SUCH BONDS ENTAIL GREATER RISKS THAN THOSE FOUND IN HIGHER-RATED
SECURITIES.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS
FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND
FOREIGN MARKETS, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT
REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE
STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS,
DEVELOPMENTS AND REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE
MATERIALLY DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS
NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
3
CREDIT SUISSE HIGH INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE
HIGH INCOME FUND 1 COMMON CLASS SHARES, CITIGROUP HIGH-YIELD MARKET INDEX 3
AND THE LIPPER HIGH YIELD BOND FUNDS INDEX 3 FROM INCEPTION (08/01/00).
[LINE GRAPH]
Credit Suisse
High Income Citigroup High- Lipper High Yield
Fund 1 - Yield Market Bond Funds
Common Class Index 3 Index 3
------------- --------------- -----------------
08/00 $10,000 $10,000 $10,000
$10,079 $10,074 $10,052
$ 9,948 $ 9,966 $ 9,904
10/00 $ 9,713 $ 9,671 $ 9,566
$ 9,335 $ 9,276 $ 9,032
$ 9,542 $ 9,465 $ 9,188
$10,214 $10,103 $ 9,797
$10,406 $10,223 $ 9,829
$10,158 $10,037 $ 9,502
$10,173 $ 9,890 $ 9,378
$10,296 $10,048 $ 9,477
$ 9,999 $ 9,772 $ 9,198
$10,134 $ 9,956 $ 9,252
$10,244 $10,092 $ 9,293
$ 9,443 $ 9,365 $ 8,637
10/01 $ 9,798 $ 9,677 $ 8,835
$10,128 $10,044 $ 9,115
$10,136 $ 9,980 $ 9,091
$10,169 $10,023 $ 9,112
$10,118 $ 9,914 $ 8,951
$10,364 $10,177 $ 9,129
$10,469 $10,344 $ 9,224
$10,445 $10,216 $ 9,131
$10,046 $ 9,316 $ 8,617
$ 9,784 $ 8,895 $ 8,335
$ 9,854 $ 9,233 $ 8,478
$ 9,779 $ 9,052 $ 8,360
10/02 $ 9,739 $ 9,021 $ 8,308
$10,208 $ 9,709 $ 8,786
$10,317 $ 9,827 $ 8,872
$10,500 $10,192 $ 9,068
$10,653 $10,329 $ 9,190
$10,915 $10,677 $ 9,419
$11,343 $11,340 $ 9,881
$11,399 $11,415 $ 9,999
$11,698 $11,770 $10,268
$11,597 $11,596 $10,189
$11,724 $11,715 $10,326
$12,008 $12,058 $10,577
10/03 $12,222 $12,339 $10,814
$12,356 $12,510 $10,939
$12,641 $12,831 $11,210
$12,894 $13,053 $11,390
$12,863 $12,981 $11,368
$12,939 $13,063 $11,411
$12,940 $13,018 $11,385
$12,728 $12,793 $11,209
$12,934 $12,984 $11,366
$13,105 $13,151 $11,457
$13,336 $13,391 $11,644
$13,498 $13,573 $11,805
10/04 $13,751 $13,854 $12,015
$13,926 $14,014 $12,186
$14,106 $14,215 $12,369
$14,084 $14,196 $12,339
$14,298 $14,409 $12,528
$13,888 $14,004 $12,195
$13,697 $13,811 $12,053
$13,863 $14,096 $11,866
$14,023 $14,331 $12,443
$14,305 $14,539 $12,636
$14,382 $14,600 $12,696
$14,246 $14,454 $12,614
10/05 $14,166 $14,346 $12,510
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE HIGH INCOME FUND 1 CLASS A SHARES 2 AND CLASS B SHARES 2,
CITIGROUP HIGH-YIELD MARKET INDEX 3,5 AND THE LIPPER HIGH YIELD BOND
FUNDS INDEX 3,5 FROM INCEPTION (03/08/99).
[LINE GRAPH]
Credit Suisse
High Income
Credit Suisse Fund 1 --
High Income Class B 2
Fund 1 -- (with maximum
Class A 2 contingent Citigroup High- Lipper High Yield
(with maximum deferred sales Yield Market Bond Funds
sales charge) charge) Index 3,5 Index 3,5
------------- -------------- --------------- -----------------
03/99 $ 9,525 $10,000 $10,000 $10,000
$ 9,753 $10,233 $10,085 $10,176
$ 9,954 $10,432 $10,296 $10,440
$ 9,805 $10,268 $10,134 $10,241
$ 9,797 $10,253 $10,112 $10,242
$ 9,829 $10,280 $10,134 $10,245
$ 9,744 $10,185 $10,013 $10,142
$ 9,738 $10,172 $ 9,937 $10,063
10/99 $ 9,733 $10,160 $ 9,870 $10,034
$ 9,923 $10,363 $10,025 $10,210
$10,019 $10,457 $10,109 $10,333
$ 9,972 $10,391 $10,025 $10,282
$10,004 $10,417 $10,049 $10,355
$ 9,821 $10,221 $ 9,845 $10,176
$ 9,919 $10,317 $ 9,885 $10,131
$ 9,861 $10,250 $ 9,747 $ 9,951
$ 9,961 $10,347 $ 9,966 $10,135
$10,021 $10,403 $10,075 $10,153
$10,091 $10,470 $10,150 $10,206
$ 9,971 $10,338 $10,041 $10,056
10/00 $ 9,727 $10,078 $ 9,744 $ 9,712
$ 9,348 $ 9,680 $ 9,345 $ 9,170
$ 9,555 $ 9,888 $ 9,536 $ 9,329
$10,229 $10,578 $10,178 $ 9,947
$10,421 $10,771 $10,300 $ 9,979
$10,184 $10,507 $10,113 $ 9,648
$10,187 $10,516 $ 9,964 $ 9,521
$10,335 $10,638 $10,124 $ 9,623
$10,037 $10,336 $ 9,845 $ 9,339
$10,173 $10,457 $10,031 $ 9,394
$10,283 $10,576 $10,168 $ 9,436
$ 9,481 $ 9,732 $ 9,436 $ 8,769
10/01 $ 9,837 $10,092 $ 9,749 $ 8,970
$10,167 $10,425 $10,120 $ 9,255
$10,176 $10,427 $10,055 $ 9,230
$10,209 $10,454 $10,098 $ 9,252
$10,158 $10,396 $ 9,988 $ 9,088
$10,404 $10,642 $10,254 $ 9,268
$10,509 $10,743 $10,422 $ 9,365
$10,473 $10,698 $10,292 $ 9,271
$10,086 $10,295 $ 9,386 $ 8,749
$ 9,811 $10,021 $ 8,962 $ 8,462
$ 9,882 $10,086 $ 9,303 $ 8,608
$ 9,819 $10,003 $ 9,120 $ 8,488
10/02 $ 9,781 $ 9,955 $ 9,089 $ 8,435
$10,251 $10,427 $ 9,782 $ 8,921
$10,347 $10,518 $ 9,901 $ 9,008
$10,544 $10,712 $10,269 $ 9,207
$10,697 $10,861 $10,406 $ 9,330
$10,959 $11,107 $10,757 $ 9,563
$11,388 $11,551 $11,425 $10,033
$11,444 $11,600 $11,501 $10,152
$11,745 $11,898 $11,859 $10,425
$11,643 $11,787 $11,683 $10,345
$11,770 $11,908 $11,803 $10,484
$12,041 $12,175 $12,149 $10,739
10/03 $12,270 $12,399 $12,431 $10,979
$12,402 $12,525 $12,604 $11,107
$12,670 $12,787 $12,927 $11,382
$12,937 $13,049 $13,151 $11,564
$12,903 $13,006 $13,079 $11,542
$12,976 $13,057 $13,161 $11,586
$12,975 $13,047 $13,116 $11,559
$12,760 $12,838 $12,889 $11,381
$12,948 $13,019 $13,081 $11,540
$13,116 $13,180 $13,249 $11,632
$13,361 $13,418 $13,491 $11,822
$13,520 $13,553 $13,674 $11,986
10/04 $13,770 $13,812 $13,958 $12,199
$13,943 $13,977 $14,119 $12,372
$14,116 $14,150 $14,322 $12,559
$14,092 $14,100 $14,302 $12,528
$14,303 $14,303 $14,517 $12,719
$13,908 $13,897 $14,109 $12,382
$13,697 $13,678 $13,915 $12,237
$13,861 $13,833 $14,201 $12,048
$14,035 $13,998 $14,439 $12,634
$14,296 $14,267 $14,648 $12,830
$14,388 $14,332 $14,709 $12,891
$14,249 $14,185 $14,562 $12,807
10/05 $14,149 $14,075 $14,453 $12,702
4
CREDIT SUISSE HIGH INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
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COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE
HIGH INCOME FUND 1 CLASS C SHARES 2, CITIGROUP HIGH-YIELD MARKET INDEX 3,6
AND THE LIPPER HIGH YIELD BOND FUNDS INDEX 3,6 FROM INCEPTION (02/28/00).
[LINE GRAPH]
Credit Suisse
High Income
Fund 1
Class C 2
(with maximum
contingent Citigroup High- Lipper High Yield
deferred Yield Market Bond Funds
sales charge) Index 3,6 Index 3,6
------------- --------------- -----------------
02/00 $10,000 $10,000 $10,000
$10,005 $10,024 $10,071
$ 9,817 $ 9,821 $ 9,897
$ 9,909 $ 9,860 $ 9,853
$ 9,844 $ 9,723 $ 9,678
$ 9,937 $ 9,942 $ 9,857
$ 9,990 $10,050 $ 9,875
$10,053 $10,124 $ 9,926
$ 9,916 $10,016 $ 9,780
10/00 $ 9,667 $ 9,719 $ 9,446
$ 9,296 $ 9,322 $ 8,919
$ 9,484 $ 9,512 $ 9,073
$10,146 $10,153 $ 9,674
$10,331 $10,274 $ 9,705
$10,090 $10,087 $ 9,383
$10,087 $ 9,939 $ 9,260
$10,203 $10,099 $ 9,359
$ 9,914 $ 9,821 $ 9,083
$10,042 $10,006 $ 9,136
$10,144 $10,142 $ 9,177
$ 9,347 $ 9,412 $ 8,529
10/01 $ 9,680 $ 9,725 $ 8,724
$10,012 $10,095 $ 9,001
$10,014 $10,030 $ 8,977
$10,040 $10,073 $ 8,998
$ 9,984 $ 9,963 $ 8,839
$10,220 $10,228 $ 9,014
$10,317 $10,396 $ 9,108
$10,275 $10,267 $ 9,017
$ 9,888 $ 9,362 $ 8,509
$ 9,612 $ 8,939 $ 8,230
$ 9,688 $ 9,279 $ 8,372
$ 9,607 $ 9,097 $ 8,256
10/02 $ 9,561 $ 9,066 $ 8,203
$10,015 $ 9,758 $ 8,676
$10,101 $ 9,876 $ 8,761
$10,288 $10,243 $ 8,954
$10,431 $10,380 $ 9,074
$10,668 $10,730 $ 9,301
$11,094 $11,397 $ 9,757
$11,141 $11,472 $ 9,873
$11,426 $11,829 $10,139
$11,320 $11,654 $10,061
$11,437 $11,774 $10,196
$11,692 $12,118 $10,444
10/03 $11,908 $12,400 $10,678
$12,029 $12,572 $10,802
$12,280 $12,895 $11,070
$12,531 $13,118 $11,247
$12,491 $13,046 $11,225
$12,539 $13,128 $11,268
$12,530 $13,083 $11,242
$12,329 $12,857 $11,069
$12,503 $13,048 $11,224
$12,658 $13,216 $11,313
$12,886 $13,458 $11,498
$13,016 $13,640 $11,657
10/04 $13,264 $13,923 $11,865
$13,423 $14,084 $12,033
$13,589 $14,286 $12,214
$13,557 $14,266 $12,184
$13,735 $14,481 $12,371
$13,347 $14,074 $12,042
$13,136 $13,880 $11,902
$13,285 $14,166 $11,717
$13,444 $14,403 $12,287
$13,702 $14,611 $12,478
$13,764 $14,672 $12,537
$13,623 $14,526 $12,456
10/05 $13,518 $14,417 $12,353
5
CREDIT SUISSE HIGH INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
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AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2005 1
SINCE
1 YEAR 5 YEARS INCEPTION
------ ------- ---------
Common Class 5.54% 7.45% 7.09%
Class A Without Sales Charge 5.39% 7.40% 6.33%
Class A With Maximum Sales Charge 0.40% 6.36% 5.54%
Class B Without CDSC 4.66% 6.53% 5.47%
Class B With CDSC 0.83% 6.53% 5.47%
Class C Without CDSC 4.66% 6.56% 5.69%
Class C With CDSC 3.70% 6.56% 5.69%
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2005 1
SINCE
1 YEAR 5 YEARS INCEPTION
------ ------- ---------
Common Class 3.02% 7.84% 6.86%
Class A Without Sales Charge 2.75% 7.78% 6.13%
Class A With Maximum Sales Charge (2.17)% 6.73% 5.36%
Class B Without CDSC 1.91% 6.91% 5.27%
Class B With CDSC (1.82)% 6.91% 5.27%
Class C Without CDSC 1.91% 6.94% 5.46%
Class C With CDSC 0.98% 6.94% 5.46%
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 and/or
reimbursements may be discontinued at any time.
2 Total return for Class A shares for the reporting period, based on
offering price (including maximum sales charge of 4.75%), was down 2.17%.
Total return for Class B shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
4%), was down 1.82%. Total return for Class C shares for the reporting
period, based on redemption value (including maximum contingent deferred
sales charge of 1%), was 0.98%.
3 The Citigroup High-Yield Market Index is a broad-based, unmanaged index of
high yield securities that is compiled by Citigroup Global Markets Inc.
The Lipper High Yield Bond Funds Index is an equal-weighted performance
index, adjusted for capital-gain distributions and income dividends, of
the largest qualifying funds classified by Lipper Inc. as investing
primarily in high yield debt securities. It is compiled by Lipper Inc.
Lipper indices are net of fees and expenses. Investors cannot invest
directly in an index.
4 The Lehman Brothers U.S. Aggregate Bond Index is composed of the Lehman
Brothers Government/Corporate Bond Index and the Lehman Brothers
Mortgage-Backed Securities Index. It includes U.S. Treasury and agency
issues, corporate bond issues and mortgage-backed securities rated
investment-grade or higher by Moody's Investors Service; the Standard &
Poor's Division of The McGraw-Hill Companies, Inc.; or Fitch IBCA Inc.
Investors cannot invest directly in an index.
5 Performance for the benchmarks is not available for the period beginning
March 8, 1999 (commencement of operations). For that reason, performance
is shown for the period beginning March 1, 1999.
6 Performance for the benchmarks is not available for the period beginning
February 28, 2000 (commencement of operations). For that reason,
performance is shown for the period beginning March 1, 2000.
6
CREDIT SUISSE HIGH INCOME 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.
7
CREDIT SUISSE HIGH INCOME 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
ACTUAL FUND RETURN 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
Ending Account Value 10/31/05 $1,034.30 $1,033.00 $1,029.10 $1,029.10
Expenses Paid per $1,000* $ 4.36 $ 5.64 $ 9.46 $ 9.46
HYPOTHETICAL 5% FUND RETURN
Beginning Account Value 5/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value 10/31/05 $1,020.92 $1,019.66 $1,015.88 $1,015.88
Expenses Paid per $1,000* $ 4.33 $ 5.60 $ 9.40 $ 9.40
COMMON
CLASS CLASS A CLASS B CLASS C
--------- --------- --------- ---------
ANNUALIZED EXPENSE RATIOS* 0.85% 1.10% 1.85% 1.85%
________________
* 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.
8
CREDIT SUISSE HIGH INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
CREDIT QUALITY BREAKDOWN*
RATINGS
S&P
- --------------------------------------------
A 0.6%
BBB 1.6%
BB 28.1%
B 49.3%
CCC 16.8%
C 0.1%
NR 3.5%
------
Total 100.0%
======
________________
* Expressed as a percentage of total investments (excluding security lending
collateral) and may vary over time.
9
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS (89.4%)
AEROSPACE (1.7%)
$ 650 Aviall, Inc., Senior Notes
(Callable 07/01/07 @ $103.81) (BB , B1) 07/01/11 7.625 $ 663,000
500 BE Aerospace, Inc., Series B, Senior
Subordinated Notes (B- , Caa2) 03/01/08 8.000 501,250
750 L-3 Communications Corp., Global Senior
Subordinated Notes
(Callable 01/15/10 @ $102.94) (BB+ , Ba3) 01/15/15 5.875 716,250
620 Sequa Corp., Senior Notes (BB- , B1) 08/01/09 9.000 646,350
150 Sequa Corp., Series B, Senior Notes (BB- , B1) 04/01/08 8.875 154,500
------------
2,681,350
------------
AIRLINES (0.1%)
100 American Airlines, Inc., Series 01-2,
Pass Thru Certificates (B , B1) 10/01/06 7.800 95,382
------------
AUTOMOBILE MANUFACTURING/VEHICLE PARTS (5.6%)
260 ArvinMeritor, Inc., Notes (BB , Ba2) 03/01/12 8.750 245,050
320 Cooper-Standard Automotive, Inc., Global
Company Guaranteed Notes
(Callable 12/15/09 @ $104.19) ss. (B , B3) 12/15/14 8.375 241,600
275 Cummins, Inc., Global Senior Notes
(Callable 12/01/06 @ $104.75) # (BBB- , Ba1) 12/01/10 9.500 294,938
100 Delphi Corp., Global Notes ss.0 (NR , NR) 06/15/06 6.550 69,750
275 Dura Operating Corp., Series D, Company
Guaranteed Notes (Callable
05/01/06 @ $101.50) ss. (CCC+ , Caa2) 05/01/09 9.000 173,250
600 Ford Motor Credit Co., Global Notes ss. (BB+ , Baa3) 10/01/13 7.000 549,966
600 Ford Motor Credit Co., Notes (BB+ , Baa3) 06/16/08 6.625 575,710
850 General Motors Acceptance Corp., Global Bonds (BB , Ba1) 11/01/31 8.000 879,927
2,900 General Motors Acceptance Corp., Global Notes ss. (BB , Ba1) 12/01/14 6.750 2,777,684
850 Goodyear Tire & Rubber Co., Rule 144A,
Senior Notes (Callable 07/01/10 @ $104.50) ++ (B- , B3) 07/01/15 9.000 824,500
500 Group 1 Automotive, Inc., Senior Subordinated
Notes (Callable 08/15/08 @ $104.12) (B+ , B1) 08/15/13 8.250 483,750
600 Metaldyne Corp., Global Company Guaranteed
Notes (Callable 06/15/07 @ $105.50) ss. (CCC+ , Caa2) 06/15/12 11.000 438,000
250 Stanadyne Corp., Global Senior Subordinated
Notes (Callable 08/15/09 @ $105.00) (B- , Caa1) 08/15/14 10.000 245,000
520 TRW Automotive, Global Senior Subordinated
Notes (Callable 02/15/08 @ $105.50) (BB- , B1) 02/15/13 11.000 583,700
350 Visteon Corp., Global Senior Notes (B- , B3) 08/01/10 8.250 325,063
------------
8,707,888
------------
BROADCAST/OUTDOOR (1.2%)
450 Allbritton Communications Co.,
Global Senior Subordinated Notes
(Callable 12/15/07 @ $103.88) (B- , B3) 12/15/12 7.750 446,625
150 LIN Television Corp., Rule 144A,
Senior Subordinated Notes
(Callable 05/15/08 @ $103.25) ++ (B- , B1) 05/15/13 6.500 142,875
See Accompanying Notes to Financial Statements.
10
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
BROADCAST/OUTDOOR
$ 850 Nexstar Finance Holdings LLC,
Global Senior Discount Notes
(Callable 04/01/08 @ $105.69) + (CCC+ , Caa1) 04/01/13 0.000 $ 616,250
350 Sinclair Broadcast Group, Inc.,
Global Company Guaranteed Notes
(Callable 12/15/06 @ $104.38) (B , B2) 12/15/11 8.750 369,250
488 WMG Holdings Corp., Senior Discount Notes
(Callable 12/15/09 @ $104.75) + (B- , Caa2) 12/15/14 0.000 337,940
------------
1,912,940
------------
BUILDING PRODUCTS (0.7%)
350 Jacuzzi Brands, Inc., Global Secured Notes
(Callable 07/01/07 @ $104.81) ss. (B , B3) 07/01/10 9.625 367,500
250 Nortek, Inc., Global Senior Subordinated Notes
(Callable 09/01/09 @ $104.25) (CCC+ , Caa1) 09/01/14 8.500 240,000
500 Ply Gem Industries, Inc., Global Senior
Subordinated Notes
(Callable 02/15/08 @ $104.50) (B- , B3) 02/15/12 9.000 407,500
------------
1,015,000
------------
CABLE (5.5%)
375 Cablevision Systems Corp., Series B,
Global Senior Notes (B+ , B3) 04/15/12 8.000 360,000
165 CCO Holdings LLC, Global Senior Notes
(Callable 11/15/08 @ $104.38) ss. (CCC- , B3) 11/15/13 8.750 159,637
85 CCO Holdings LLC, Rule 144A, Senior Notes
(Callable 11/15/08 @ $104.38) ++ (CCC- , B3) 11/15/13 8.750 82,238
300 Charter Communications Holdings LLC, Senior
Notes (Callable 04/01/06 @ $101.44) ss. (CCC- , Ca) 04/01/09 8.625 247,500
1,700 Charter Communications Holdings LLC, Senior
Notes (Callable 09/15/08 @ $105.12) (CCC- , Caa1) 09/15/10 10.250 1,712,750
1,200 CSC Holdings, Inc., Rule 144A, Senior Notes #++ (BB- , B1) 04/15/12 7.000 1,164,000
275 CSC Holdings, Inc., Senior Notes (BB- , B1) 12/15/07 7.875 283,250
200 CSC Holdings, Inc., Series B, Debentures (BB- , B1) 08/15/09 8.125 205,500
200 CSC Holdings, Inc., Series B, Senior Notes (BB- , B1) 07/15/09 8.125 205,500
200 CSC Holdings, Inc., Series B, Senior Notes (BB- , B1) 04/01/11 7.625 201,500
180 Insight Communications Company, Inc.,
Senior Discount Notes (Callable
02/15/06 @ $106.12) ss.+ (CCC+ , Caa1) 02/15/11 0.000 185,850
20 Insight Midwest/Insight Capital Corp., Global
Senior Notes (Callable 11/01/05 @ $105.25) (B , B2) 11/01/10 10.500 21,100
1,110 Insight Midwest/Insight Capital Corp., Senior
Notes (Callable 10/01/06 @ $101.63) (B , B2) 10/01/09 9.750 1,146,075
250 Mediacom Broadband LLC, Rule 144A, Senior
Notes (Callable 10/15/10 @ $104.25) ++ (B , B2) 10/15/15 8.500 231,250
950 Mediacom LLC Capital Corp., Senior Notes
(Callable 02/15/06 @ $103.94) ss. (B , B3) 02/15/11 7.875 885,875
See Accompanying Notes to Financial Statements.
11
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
CABLE
$ 625 Olympus Communications LP, Series B,
Senior Notes 0 (NR , NR) 11/15/06 10.625 $ 859,375
597 Renaissance Media Group LLC, Company
Guaranteed Notes
(Callable 04/15/06 @ $100.00) (CCC+ , B3) 04/15/08 10.000 592,522
------------
8,543,922
------------
CAPITAL GOODS (1.0%)
250 Blount, Inc., Senior Subordinated Notes
(Callable 08/01/08 @ $104.44) (B , B3) 08/01/12 8.875 264,375
750 Case New Holland, Inc., Global Company
Guaranteed Notes
(Callable 08/01/07 @ $104.63) (BB- , Ba3) 08/01/11 9.250 793,125
280 JII Holdings LLC, Global Secured Notes
(Callable 01/01/06 @ $103.25) (CCC- , Caa2) 04/01/07 13.000 247,800
235 Motors & Gears, Inc., Series D, Senior Notes (CCC , Caa1) 11/15/06 10.750 226,775
------------
1,532,075
------------
CHEMICALS (4.2%)
488 Crystal US Holdings, Global Senior Discount
Notes (Callable 10/01/09 @ $105.25) + (B- , Caa2) 10/01/14 0.000 340,380
800 Equistar Chemicals Funding, Global Senior
Notes (Callable 05/01/07 @ $105.31) (BB- , B2) 05/01/11 10.625 876,000
378 Huntsman Company LLC, Global Company
Guaranteed Notes
(Callable 10/15/07 @ $105.81) (BB- , Ba3) 10/15/10 11.625 429,975
198 Huntsman LLC, Global Company Guaranteed
Notes (Callable 07/15/08 @ $105.75) # (B , B2) 07/15/12 11.500 224,978
500 IMC Global, Inc., Global Senior Notes
(Callable 08/01/08 @ $105.44) (BB , Ba3) 08/01/13 10.875 582,500
250 IMC Global, Inc., Rule 144A, Company
Guaranteed Notes
(Callable 06/01/06 @ $105.62) ++ (BB , Ba3) 06/01/11 11.250 272,500
500 KI Holdings, Inc., Global Senior Discount
Notes (Callable 11/15/09 @ $104.94) + (B- , Caa2) 11/15/14 0.000 338,125
1,100 Lyondell Chemical Co., Global Company
Guaranteed Notes
(Callable 06/01/08 @ $105.25) (BB- , B1) 06/01/13 10.500 1,252,625
350 Nalco Co., Global Senior Notes
(Callable 11/15/07 @ $103.88) (B- , B2) 11/15/11 7.750 359,187
550 PolyOne Corp., Rule 144A, Senior Notes
(Callable 05/15/07 @ $105.31) ss.++ (B+ , B3) 05/15/10 10.625 541,750
400 Resolution Performance Products LLC,
Global Senior Subordinated Notes
(Callable 11/15/05 @ $106.75) ss. (B- , Caa2) 11/15/10 13.500 423,500
747 Terra Capital, Inc., Global Secured Notes
(Callable 06/01/07 @ $105.75) (B- , B2) 06/01/10 11.500 859,050
------------
6,500,570
------------
See Accompanying Notes to Financial Statements.
12
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
COMPETITIVE LOCAL EXCHANGE CARRIER (0.4%)
$ 350 Block Communications, Inc., Global Company
Guaranteed Notes
(Callable 04/15/06 @ $104.63) (B- , B2) 04/15/09 9.250 $ 371,000
294 Time Warner Telecom LLC, Senior Notes
(Callable 07/15/06 @ $100.00) ss. (CCC+ , Caa1) 07/15/08 9.750 299,370
------------
670,370
------------
CONSUMER PRODUCTS/TOBACCO (3.5%)
400 AAC Group Holding Corp., Global Senior
Discount Notes
(Callable 10/01/08 @ $105.13) (B- , Caa1) 10/01/12 10.250 294,000
200 Central Garden & Pet Co., Senior Subordinated
Notes (Callable 02/01/08 @ $104.56) (B+ , B1) 02/01/13 9.125 211,000
95 Chattem, Inc., Global Senior Subordinated
Notes (Callable 03/01/09 @ $103.50) ss. (B , B2) 03/01/14 7.000 96,425
600 Jarden Corp., Global Company Guaranteed
Notes (Callable 05/01/07 @ $104.88) (B- , B3) 05/01/12 9.750 609,000
1,000 Johnsondiversey Holdings, Inc., Global
Discount Notes
(Callable 05/15/07 @ $105.34) ss.+ (B , Caa1) 05/15/13 0.000 725,000
950 Johnsondiversey, Inc., Series B, Global
Company Guaranteed Notes
(Callable 05/15/07 @ $104.81) (B , B3) 05/15/12 9.625 945,250
553 PCA LLC, Global Senior Notes (C , Ca) 08/01/09 11.875 143,780
350 Playtex Products, Inc., Global Company
Guaranteed Notes
(Callable 06/01/06 @ $104.69) (CCC+ , Caa2) 06/01/11 9.375 364,000
400 Prestige Brands, Inc., Global Senior
Subordinated Notes
(Callable 04/15/08 @ $104.63) ss. (B- , B3) 04/15/12 9.250 406,000
750 Remington Arms Company, Inc., Global
Company Guaranteed Notes
(Callable 02/01/07 @ $105.25) ss. (CCC+ , B3) 02/01/11 10.500 652,500
250 RJ Reynolds Tobacco Holdings, Rule 144A,
Notes ++ (BB+ , Ba2) 07/15/10 6.500 246,875
500 Sealy Mattress Co., Global Senior
Subordinated Notes
(Callable 06/15/09 @ $104.13) ss. (B- , B3) 06/15/14 8.250 510,000
275 True Temper Sports, Inc., Global
Company Guaranteed Notes
(Callable 03/15/08 @ $104.19) (CCC+ , Caa1) 09/15/11 8.375 248,875
------------
5,452,705
------------
CONTAINERS (2.8%)
800 Constar International, Inc., Senior
Subordinated Notes
(Callable 12/01/07 @ $105.50) ss. (CCC , Caa3) 12/01/12 11.000 460,000
400 Graham Packaging Company, Inc.,
Global Subordinated Notes
(Callable 10/15/09 @ $104.94) ss. (CCC+ , Caa2) 10/15/14 9.875 376,000
See Accompanying Notes to Financial Statements.
13
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
CONTAINERS
$ 400 Graphic Packaging International Corp.,
Global Senior Subordinated Notes
(Callable 08/15/08 @ $104.75) ss. (B- , B3) 08/15/13 9.500 $ 361,000
100 Intertape Polymer US, Inc., Global Senior
Subordinated Notes
(Callable 08/01/09 @ $104.25) (B- , B3) 08/01/14 8.500 96,511
50 Owens-Brockway, Global Company
Guaranteed Notes
(Callable 02/15/06 @ $104.44) (BB- , B1) 02/15/09 8.875 52,500
500 Owens-Brockway, Rule 144A, Senior
Notes (Callable 05/15/08 @ $104.13) ++ (B , B2) 05/15/13 8.250 512,500
400 Owens-Illinois, Inc., Senior Notes (B , B3) 05/15/07 8.100 408,000
35 Owens-Illinois, Inc., Senior Notes (B , B3) 05/15/08 7.350 35,175
250 Plastipak Holdings, Inc., Global Company
Guaranteed Senior Notes
(Callable 09/01/06 @ $105.38) (B+ , B3) 09/01/11 10.750 275,000
250 Pliant Corp., Company Guaranteed Notes
(Callable 06/01/06 @ $104.33) (CCC- , Ca) 06/01/10 13.000 37,500
750 Pliant Corp., Global Secured Notes
(Callable 06/01/07 @ $105.56) ss. (CCC- , Caa3) 09/01/09 11.125 615,000
300 Solo Cup Co., Global Senior Subordinated
Notes (Callable 02/15/09 @ $104.25) ss. (B- , Caa1) 02/15/14 8.500 247,500
800 U.S. Can Corp., Global Company Guaranteed
Notes (Callable 07/15/07 @ $105.44) ss. (CCC+ , Caa2) 07/15/10 10.875 828,000
------------
4,304,686
------------
DIVERSIFIED TELECOMMUNICATIONS (2.7%)
500 Cincinnati Bell, Inc., Global Senior
Subordinated Notes
(Callable 01/15/09 @ $104.19) ss. (B- , B3) 01/15/14 8.375 488,750
500 Citizens Communications Co., Senior Notes (BB+ , Ba3) 01/15/13 6.250 476,250
375 Hawaiian Telcom Communications, Inc.,
Rule 144A, Senior Notes
(Callable 05/01/09 @ $104.88) ss.++ (B- , B3) 05/01/13 9.750 375,000
1,000 Qwest Corp., Global Senior Notes (BB- , Ba3) 09/01/11 7.875 1,052,500
750 Qwest Corp., Notes ss. (BB , Ba3) 11/15/08 5.625 746,250
862 Qwest Corp., Rule 144A, Senior Notes ++ (BB , Ba3) 06/15/15 7.625 887,860
100 Qwest Services Corp., Global Secured Notes
(Callable 12/15/06 @ $106.75) (B , Caa1) 12/15/10 13.500 114,750
------------
4,141,360
------------
ENERGY - OTHER (4.2%)
550 Dynegy Holdings, Inc., Rule 144A, Secured
Notes (Callable 07/15/08 @ $105.06) ++ (B- , B3) 07/15/13 10.125 607,750
250 Dynegy Holdings, Inc., Senior Notes ss. (CCC+ , Caa2) 04/01/11 6.875 240,625
700 El Paso Corp., Senior Notes ss. (B- , Caa1) 05/15/11 7.000 693,000
1,000 El Paso Natural Gas Co., Global Senior Notes
(Callable 08/01/07 @ $103.81) (B , B1) 08/01/10 7.625 1,054,426
775 El Paso Production Holding Co., Global
Company Guaranteed Notes
(Callable 06/01/08 @ $103.02) (B , B3) 06/01/13 7.750 802,125
See Accompanying Notes to Financial Statements.
14
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
ENERGY - OTHER
$ 162 Giant Industries, Inc., Global Company
Guaranteed Notes
(Callable 05/15/07 @ $105.50) (B- , B3) 05/15/12 11.000 $ 181,035
400 Giant Industries, Inc., Senior Subordinated
Notes (Callable 05/15/09 @ $104.00) ss. (B- , B3) 05/15/14 8.000 416,000
250 Inergy LP / Inergy Finance Corp., Global Senior
Notes (Callable 12/15/09 @ $103.44) (B- , B1) 12/15/14 6.875 238,125
300 Reliant Energy, Inc., Secured Notes
(Callable 12/15/09 @ $103.38) (B+ , B1) 12/15/14 6.750 280,500
600 Reliant Resources, Inc., Global Secured Notes
(Callable 07/15/08 @ $104.75) (B+ , B1) 07/15/13 9.500 642,000
250 Southern Star Centennial Corp., Global Secured
Notes (Callable 08/01/07 @ $104.25) ss. (B+ , B1) 08/01/10 8.500 266,875
1,000 Williams Companies, Inc., Global Senior
Unsecured Notes # (B+ , B1) 03/15/12 8.125 1,085,000
------------
6,507,461
------------
ENVIRONMENTAL SERVICES (0.6%)
950 Allied Waste North America, Inc., Series B,
Global Senior Notes
(Callable 04/15/09 @ $103.69) ss. (B+ , Caa1) 04/15/14 7.375 895,375
------------
FINANCE - OTHER (0.1%)
100 Senior Housing Properties Trust, Senior Notes (BB+ , Ba2) 01/15/12 8.625 110,500
------------
FOOD PROCESSORS/BEVERAGE/BOTTLING (1.8%)
188 Birds Eye Foods, Inc., Company Guaranteed
Notes (Callable 11/01/05 @ $101.98) (B- , B3) 11/01/08 11.875 193,170
100 Chiquita Brands International, Inc., Global
Senior Notes (Callable 11/01/09 @ $103.75) ss. (B- , B3) 11/01/14 7.500 94,750
50 Del Monte Corp., Global Senior Subordinated
Notes (Callable 12/15/07 @ $104.31) (B , B2) 12/15/12 8.625 53,500
600 Eagle Family Foods, Inc., Series B, Company
Guaranteed Notes
(Callable 01/15/06 @ $100.00) (CCC , Caa2) 01/15/08 8.750 471,000
365 Land O' Lakes, Inc., Global Senior Notes
(Callable 11/15/06 @ $104.38) (B , B2) 11/15/11 8.750 384,163
500 National Beef Packing Company LLC, Global
Senior Notes (Callable 08/01/07 @ $105.25) (B- , B3) 08/01/11 10.500 518,750
280 National Wine & Spirits, Inc., Company
Guaranteed Notes
(Callable 01/15/06 @ $101.69) (CCC+ , B3) 01/15/09 10.125 284,200
200 Smithfield Foods, Inc., Series B, Global
Senior Notes (BB , Ba2) 10/15/09 8.000 212,250
100 Swift & Co., Global Company Guaranteed
Notes (Callable 10/01/06 @ $105.06) (B+ , B2) 10/01/09 10.125 106,000
450 Swift & Co., Global Senior Subordinated
Notes (Callable 10/01/06 @ $106.25) (B , B3) 01/01/10 12.500 480,375
------------
2,798,158
------------
See Accompanying Notes to Financial Statements.
15
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
GAMING (5.9%)
$ 560 Ameristar Casinos, Inc., Global Company
Guaranteed Notes
(Callable 02/15/06 @ $105.38) (B+ , B2) 02/15/09 10.750 $ 599,200
100 Aztar Corp., Global Senior Subordinated
Notes (Callable 08/15/06 @ $104.50) (B+ , Ba3) 08/15/11 9.000 106,250
475 CCM Merger, Inc., Rule 144A, Notes
(Callable 08/01/09 @ $104.00) ++ (B- , B3) 08/01/13 8.000 472,625
500 Choctaw Resort Development Enterprise,
Rule 144A, Senior Notes
(Callable 11/15/11 @ $103.63) ++ (BB- , B1) 11/15/19 7.250 497,500
350 Circus Circus & Eldorado, Global First
Mortgage Notes (Callable 03/01/07 @ $105.06) (B , B1) 03/01/12 10.125 367,500
250 Herbst Gaming, Inc., Global Senior Subordinated
Notes (Callable 06/01/08 @ $104.06) (B- , B3) 06/01/12 8.125 259,375
675 Inn of the Mountain Gods Resort, Global Senior
Notes (Callable 11/15/07 @ $106.00) ss. (B , B3) 11/15/10 12.000 725,625
250 Majestic Star Casino LLC, Company Guaranteed
Notes (Callable 10/15/07 @ $104.75) (B , B2) 10/15/10 9.500 245,938
975 MGM Mirage Inc., Company Guaranteed Notes (BB , Ba2) 10/01/09 6.000 962,812
150 MGM Mirage Inc., Company Guaranteed Notes (BB , Ba2) 09/15/10 8.500 161,625
400 MGM Mirage Inc., Company Guaranteed Notes ss. (B+ , Ba3) 02/01/11 8.375 425,000
450 Mohegan Tribal Gaming Authority, Global Senior
Subordinated Notes
(Callable 08/15/09 @ $103.56) (B+ , Ba3) 08/15/14 7.125 456,750
600 MTR Gaming Group, Inc., Series B, Global
Company Guaranteed Notes
(Callable 04/01/07 @ $104.88) (B+ , B2) 04/01/10 9.750 634,500
500 Penn National Gaming, Inc., Company
Guaranteed Notes (Callable 03/15/06 @ $104.44) (B , B2) 03/15/10 8.875 524,375
200 Riviera Holdings Corp., Global Company
Guaranteed Notes
(Callable 06/15/06 @ $105.50) ss. (B , B2) 06/15/10 11.000 218,500
350 Station Casinos, Inc., Global Senior
Subordinated Notes
(Callable 03/01/09 @ $102.58) ss. (B+ , Ba3) 03/01/16 6.875 354,375
837 Waterford Gaming LLC, Rule 144A, Senior
Notes (Callable 09/15/08 @ $103.55) ++ (B+ , B1) 09/15/12 8.625 903,960
500 Wheeling Island Gaming, Inc., Global Company
Guaranteed Notes (Callable 12/15/05 @ $105.06) (B+ , B3) 12/15/09 10.125 526,250
18 Windsor Woodmont Black Hawk, Series B,
First Mortgage Notes 0^ (NR , NR) 03/15/05 13.000 2,500
700 Wynn Las Vegas LLC, Global Notes
(Callable 12/01/09 @ $103.31) ss. (B+ , B2) 12/01/14 6.625 670,250
------------
9,114,910
------------
HEALTHCARE FACILITIES/SUPPLIES (4.0%)
500 Alpharma, Inc., Global Company Guaranteed
Notes (Callable 05/01/07 @ $104.31) (B- , B3) 05/01/11 8.625 537,500
250 DaVita, Inc., Global Company Guaranteed
Notes (Callable 03/15/10 @ $103.63) ss. (B , B3) 03/15/15 7.250 253,750
See Accompanying Notes to Financial Statements.
16
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
HEALTHCARE FACILITIES/SUPPLIES
$ 250 Extendicare Health Services, Inc., Company
Guaranteed Notes
(Callable 07/01/06 @ $104.75) (B , B1) 07/01/10 9.500 $ 267,500
250 Fisher Communications, Inc., Global Senior
Notes (Callable 09/15/09 @ $104.31) (B- , B2) 09/15/14 8.625 267,500
500 Fisher Scientific International, Inc., Global
Senior Subordinated Notes
(Callable 08/15/09 @ $103.38) (BB+ , Ba2) 08/15/14 6.750 518,750
200 Fisher Scientific International, Inc., Rule 144A,
Senior Subordinated Notes
(Callable 07/01/10 @ $103.06) ++ (BB+ , Ba2) 07/01/15 6.125 199,500
350 HCA, Inc., Notes (BB+ , Ba2) 10/01/12 6.300 346,180
350 Medical Device Manufacturing, Inc., Global
Company Guaranteed Notes
(Callable 07/15/08 @ $105.00) (B- , Caa1) 07/15/12 10.000 411,250
250 Medquest, Inc., Series B, Global Company
Guaranteed Notes
(Callable 08/15/07 @ $105.94) (CCC+ , Caa1) 08/15/12 11.875 248,125
800 MQ Associates, Inc., Global Senior Discount
Notes (Callable 08/15/08 @ $109.00) ss.+ (CCC+ , Caa2) 08/15/12 0.000 476,000
344 PacifiCare Health Systems, Inc., Global
Company Guaranteed Notes
(Callable 06/01/06 @ $105.38) (BBB- , Ba3) 06/01/09 10.750 371,090
150 Rotech Healthcare, Inc., Global Company
Guaranteed Notes
(Callable 04/01/07 @ $104.75) (B , B2) 04/01/12 9.500 160,125
350 Rural/Metro Corp., Rule 144A, Senior
Subordinated Notes
(Callable 03/15/10 @ $104.94) ++ (CCC+ , Caa1) 03/15/15 9.875 355,250
250 Tenet Healthcare Corp., Global Senior Notes (B , B3) 07/01/14 9.875 243,125
750 Triad Hospital, Inc., Senior Subordinated
Notes (Callable 11/15/08 @ $103.50) (B+ , B3) 11/15/13 7.000 753,750
500 Universal Hospital Services, Inc., Global Senior
Notes (Callable 11/01/07 @ $105.06) (B- , B3) 11/01/11 10.125 503,750
250 Vanguard Health Holding Co., Global Senior
Subordinated Notes
(Callable 10/01/09 @ $104.50) (CCC+ , Caa1) 10/01/14 9.000 261,875
------------
6,175,020
------------
HOME BUILDERS (2.6%)
380 Beazer Homes USA, Inc., Global Company
Guaranteed Notes
(Callable 04/15/07 @ $104.19) (BB , Ba1) 04/15/12 8.375 389,975
300 D.R. Horton, Inc., Global Company
Guaranteed Notes
(Callable 04/15/07 @ $104.25) (BB+ , Ba1) 04/15/12 8.500 323,284
350 K Hovnanian Enterprises, Global Company
Guaranteed Notes (BB , Ba1) 01/15/16 6.250 314,038
700 KB Home, Senior Notes (BB+ , Ba1) 06/15/15 6.250 662,054
200 KB Home, Senior Subordinated Notes ss. (BB- , Ba2) 12/15/08 8.625 211,764
See Accompanying Notes to Financial Statements.
17
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
HOME BUILDERS
$ 150 Ryland Group, Inc., Senior Subordinated Notes
(Callable 06/15/06 @ $104.56) (BB+ , Ba2) 06/15/11 9.125 $ 159,481
350 Technical Olympic USA, Inc., Global Senior
Subordinated Notes (B- , B2) 01/15/15 7.500 292,250
200 Toll Corp., Senior Subordinated Notes
(Callable 12/01/06 @ $104.12) ss. (BB+ , Ba2) 12/01/11 8.250 212,500
350 WCI Communities, Inc., Global Company
Guaranteed Notes
(Callable 05/01/07 @ $104.56) ss. (B+ , Ba3) 05/01/12 9.125 353,500
500 William Lyon Homes, Inc., Company Guaranteed
Notes (Callable 04/01/08 @ $105.38) (B , B2) 04/01/13 10.750 526,250
450 William Lyon Homes, Inc., Global Senior Notes
(Callable 02/15/09 @ $103.75) (B , B2) 02/15/14 7.500 393,750
150 William Lyon Homes, Inc., Global Senior Notes
(Callable 12/15/08 @ $103.81) (B , B2) 12/15/12 7.625 134,250
------------
3,973,096
------------
INDUSTRIAL - OTHER (1.1%)
350 Altra Industrial Motion, Inc., Rule 144A,
Secured Notes
(Callable 12/01/08 @ $104.50) #++ (CCC+ , B3) 12/01/11 9.500 341,250
500 Amsted Industries, Inc., Rule 144A, Senior
Notes (Callable 10/15/07 @ $105.12) ++ (B , B3) 10/15/11 10.250 537,500
350 Hawk Corp., Global Senior Notes
(Callable 11/01/09 @ $104.38) (B , B2) 11/01/14 8.750 355,250
500 Wolverine Tube, Inc., Rule 144A, Senior
Notes ss.++ (CCC+ , Caa1) 08/01/08 7.375 432,500
------------
1,666,500
------------
LEISURE (2.8%)
300 AMC Entertainment, Inc., Global Senior
Subordinated Notes
(Callable 02/01/07 @ $104.94) ss. (CCC+ , B3) 02/01/12 9.875 288,000
350 AMC Entertainment, Inc., Global Senior
Subordinated Notes
(Callable 03/01/09 @ $104.00) ss. (CCC+ , B3) 03/01/14 8.000 304,500
249 AMC Entertainment, Inc., Senior Subordinated
Notes (Callable 02/01/06 @ $101.58) (CCC+ , B3) 02/01/11 9.500 237,172
250 Bally Total Fitness Holding Corp., Global Senior
Notes (Callable 07/15/07 @ $105.25) ss. (CCC- , Caa1) 07/15/11 10.500 255,313
550 Carmike Cinemas, Inc., Global Senior
Subordinated Notes
(Callable 02/15/09 @ $103.75) ss. (CCC+ , Caa1) 02/15/14 7.500 473,000
750 Cinemark USA, Inc., Global Senior
Subordinated Notes
(Callable 02/01/08 @ $104.50) (B- , B3) 02/01/13 9.000 778,125
250 Cinemark, Inc., Global Senior Discount Notes
(Callable 03/15/09 @ $104.88) + (B- , Caa1) 03/15/14 0.000 178,125
400 Icon Health & Fitness, Global Company
Guaranteed Notes
(Callable 04/01/07 @ $105.62) ss. (CCC- , Caa3) 04/01/12 11.250 322,000
See Accompanying Notes to Financial Statements.
18
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
LEISURE
$ 400 Six Flags, Inc., Global Senior Notes
(Callable 02/01/06 @ $104.44) ss. (CCC , Caa1) 02/01/10 8.875 $ 399,000
400 Six Flags, Inc., Global Senior Notes
(Callable 06/01/09 @ $104.81) (CCC , Caa1) 06/01/14 9.625 398,000
700 Speedway Motorsports, Inc., Global Senior
Subordinated Notes
(Callable 06/01/08 @ $103.38) (B+ , Ba2) 06/01/13 6.750 719,250
------------
4,352,485
------------
LODGING (0.5%)
375 Host Marriott Corp., Global Senior Notes
(Callable 11/01/08 @ $103.56) (BB- , Ba2) 11/01/13 7.125 382,031
200 Host Marriott LP, Series O, Global Company
Guaranteed Notes
(Callable 03/15/10 @ $103.19) (B+ , Ba2) 03/15/15 6.375 195,000
150 San Pasqual Casino, Rule 144A, Notes
(Callable 09/15/09 @ $104.00) ++ (B+ , B2) 09/15/13 8.000 150,000
100 Starwood Hotels & Resorts Worldwide, Inc.,
Global Company Guaranteed Notes # (BB+ , Ba1) 05/01/12 7.875 108,250
------------
835,281
------------
METALS & MINING (1.9%)
350 AK Steel Corp., Global Company Guaranteed
Notes (Callable 06/15/07 @ $103.88) ss. (B+ , B1) 06/15/12 7.750 316,750
250 California Steel Industries, Inc., Global Senior
Notes (Callable 03/15/09 @ $103.06) (BB- , Ba2) 03/15/14 6.125 233,750
800 International Steel Group, Inc., Global
Senior Notes (BB , Ba2) 04/15/14 6.500 790,000
100 Southern Peru Copper Corp., Rule 144A, Notes ++ (BBB- , Ba1) 07/27/15 6.375 97,947
600 Southern Peru Copper Corp., Rule 144A, Notes ++ (BBB- , Ba1) 07/27/35 7.500 575,959
350 UCAR Finance, Inc., Global Company
Guaranteed Notes
(Callable 02/15/07 @ $105.13) ss. (B- , B2) 02/15/12 10.250 371,000
1,000 WCI Steel, Inc., Series B, Senior Notes 0 (NR , NR) 12/01/49 10.000 545,000
------------
2,930,406
------------
OIL EQUIPMENT (0.7%)
500 Parker Drilling Co., Global Senior Notes
(Callable 10/01/08 @ $104.81) ss. (B- , B2) 10/01/13 9.625 567,500
176 Parker Drilling Co., Series B, Company
Guaranteed Notes
(Callable 11/15/05 @ $103.38) ss. (B- , B2) 11/15/09 10.125 182,380
250 Pride International, Inc., Global Senior
Notes (Callable 07/15/09 @ $103.69) ss. (BB- , Ba2) 07/15/14 7.375 270,625
------------
1,020,505
------------
See Accompanying Notes to Financial Statements.
19
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
PAPER & FOREST PRODUCTS (2.2%)
$ 450 Appleton Papers, Inc., Series B, Global Senior
Subordinated Notes
(Callable 06/15/09 @ $104.88) ss. (B+ , B3) 06/15/14 9.750 $ 425,250
250 Caraustar Industries, Inc., Global Company
Guaranteed Notes
(Callable 04/01/06 @ $105.25) ss. (B- , Caa1) 04/01/11 9.875 246,250
650 Georgia-Pacific Corp., Global Company
Guaranteed Notes
(Callable 02/01/08 @ $104.69) (BB+ , Ba1) 02/01/13 9.375 719,875
500 Georgia-Pacific Corp., Global Senior Notes (BB+ , Ba2) 01/15/24 8.000 535,000
200 Georgia-Pacific Corp., Notes (BB+ , Ba2) 05/15/06 7.500 203,000
600 Neenah Paper, Inc., Global Senior Notes
(Callable 11/15/09 @ $103.69) (B+ , B1) 11/15/14 7.375 561,000
500 Newark Group, Inc., Global Senior
Subordinated Notes
(Callable 03/15/09 @ $104.88) (B- , Caa1) 03/15/14 9.750 432,500
150 Stone Container Corp., Global Senior Notes
(Callable 02/01/06 @ $104.88) (B , B2) 02/01/11 9.750 150,750
140 Stone Container Corp., Global Senior Notes
(Callable 07/01/07 @ $104.19) (B , B2) 07/01/12 8.375 134,400
------------
3,408,025
------------
PHARMACEUTICALS (0.6%)
425 Athena Neurosciences Finance LLC,
Company Guaranteed Notes (B , B3) 02/21/08 7.250 412,250
600 Mylan Laboratories, Inc., Rule 144A,
Senior Notes ss.++ (BB+ , Ba1) 08/15/10 5.750 595,500
------------
1,007,750
------------
PUBLISHING (1.9%)
150 Dex Media East LLC, Global Company
Guaranteed Notes
(Callable 11/15/06 @ $104.94) (B , B1) 11/15/09 9.875 163,875
250 Dex Media, Inc., Global Discount Notes
(Callable 11/15/08 @ $104.50) + (B , B3) 11/15/13 0.000 195,000
700 Dex Media, Inc., Global Notes
(Callable 11/15/08 @ $104.00) (B , B3) 11/15/13 8.000 715,750
750 Haights Cross Operating Co., Global Company
Guaranteed Notes
(Callable 08/15/08 @ $105.88) (CCC , Caa1) 08/15/11 11.750 817,500
250 Houghton Mifflin Co., Global Senior
Subordinated Notes
(Callable 02/01/08 @ $104.94) ss. (B- , Caa1) 02/01/13 9.875 259,375
400 Sheridan Acquisition Corp., Global Secured
Notes (Callable 08/15/07 @ $105.13) ss. (B , B1) 08/15/11 10.250 418,000
375 WDAC Subsidiary Corp., Rule 144A, Senior
Notes (Callable 12/01/09 @ $104.19) ss.++ (CCC+ , Caa1) 12/01/14 8.375 355,313
------------
2,924,813
------------
See Accompanying Notes to Financial Statements.
20
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ------ ------------
CORPORATE BONDS
RESTAURANTS (0.5%)
$ 250 Friendly Ice Cream Corp., Global Senior
Notes (Callable 06/15/08 @ $104.19) ss. (B- , B2) 06/15/12 8.375 $ 231,250
250 Morton's Restaurant Group, Inc., Global
Secured Notes
(Callable 07/01/07 @ $105.30) ss. (B- , B2) 07/01/10 7.500 246,875
330 Sbarro, Inc., Company Guaranteed Notes
(Callable 09/15/06 @ $101.83) ss. (CCC+ , Caa2) 09/15/09 11.000 323,400
------------
801,525
------------
RETAIL-FOOD & DRUG (1.1%)
550 Delhaize America, Inc., Global Company
Guaranteed Notes (BB+ , Ba1) 04/15/11 8.125 590,129
550 Rite Aid Corp., Global Secured Notes
(Callable 05/01/07 @ $104.06) (B+ , B2) 05/01/10 8.125 552,750
350 Roundy's, Inc., Series B, Global Company
Guaranteed Notes
(Callable 06/15/07 @ $104.44) (NR , NR) 06/15/12 8.875 385,833
150 Stater Brothers Holdings, Inc., Global Senior
Notes (Callable 06/15/08 @ $104.06) (BB- , B1) 06/15/12 8.125 147,375
------------
1,676,087
------------
RETAIL STORES (2.8%)
350 Asbury Automotive Group, Inc., Global
Company Guaranteed Notes
(Callable 06/15/07 @ $104.50) ss. (B , B3) 06/15/12 9.000 347,375
450 AutoNation, Inc., Global Company
Guaranteed Notes (BBB- , Ba2) 08/01/08 9.000 488,250
400 Brookstone Company, Inc., Rule 144A,
Secured Notes (Callable 10/15/09 @ $106.00) ++ (B , B3) 10/15/12 12.000 386,000
550 Finlay Fine Jewelry Corp., Global Senior
Notes (Callable 06/01/08 @ $104.19) ss. (B , B2) 06/01/12 8.375 470,250
700 JC Penney Company, Inc., Series MTNA,
Notes ss. (BB+ , Ba1) 10/15/15 6.875 732,942
500 Nebraska Book Company, Inc., Global Senior
Subordinated Notes
(Callable 03/15/08 @ $104.31) (CCC+ , Caa1) 03/15/12 8.625 470,000
420 Neiman Marcus Group, Inc., Rule 144A,
Senior Subordinated Notes
(Callable 10/15/10 @ $105.19) ++ (B- , B3) 10/15/15 10.375 407,400
500 Sonic Automotive, Inc., Series B,
Global Senior Subordinated Notes
(Callable 08/15/08 @ $104.31) ss. (B , B2) 08/15/13 8.625 480,000
500 Southern States Cooperative, Inc., Rule 144A,
Senior Notes (Callable 11/01/07 @ $108.00) ++ (B , B3) 11/01/10 10.500 528,750
------------
4,310,967
------------
See Accompanying Notes to Financial Statements.
21
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
------ ------------- -------- ------ ------------
CORPORATE BONDS
SATELLITE (1.0%)
$ 455 Directv Holdings LLC, Global Senior Notes
(Callable 03/15/08 @ $104.19) (BB- , Ba2) 03/15/13 8.375 $ 494,812
300 EchoStar DBS Corp., Global Company
Guaranteed Notes (BB- , Ba3) 10/01/14 6.625 292,500
500 EchoStar DBS Corp., Global Senior Notes (BB- , Ba3) 10/01/11 6.375 488,750
227 PanAmSat Corp., Global Company Guaranteed
Notes (Callable 08/15/09 @ $104.50) (B+ , B1) 08/15/14 9.000 240,053
------------
1,516,115
------------
SECONDARY OIL & GAS PRODUCERS (3.0%)
650 Chesapeake Energy Corp., Global Company
Guaranteed Notes
(Callable 07/15/10 @ $103.13) (BB , Ba2) 01/15/18 6.250 633,750
650 Chesapeake Energy Corp., Senior Notes
(Callable 01/15/09 @ $103.44) (BB , Ba2) 01/15/16 6.875 661,375
800 Forest Oil Corp., Global Senior Notes (BB- , Ba3) 12/15/11 8.000 878,000
350 Frontier Oil Corp., Global Senior Notes
(Callable 10/01/07 @ $103.31) (B+ , B1) 10/01/11 6.625 358,750
250 Houston Exploration Company, Global Senior
Subordinated Notes
(Callable 06/15/08 @ $103.50) (B+ , B2) 06/15/13 7.000 251,875
600 Plains Exploration & Production Company LP,
Global Senior Subordinated Notes
(Callable 07/01/07 @ $104.38) (B+ , Ba3) 07/01/12 8.750 643,500
200 Range Resources Corp., Global Company
Guaranteed Notes
(Callable 03/15/10 @ $103.19) (B , B3) 03/15/15 6.375 199,000
600 Swift Energy Co., Senior Notes
(Callable 07/15/08 @ $103.81) (BB- , B1) 07/15/11 7.625 613,500
345 Vintage Petroleum, Inc., Global Senior
Subordinated Notes
(Callable 05/15/06 @ $103.94) (B , B1) 05/15/11 7.875 363,113
------------
4,602,863
------------
SERVICES-OTHER (3.0%)
400 Allied Security Escrow, Global Senior
Subordinated Notes
(Callable 07/15/08 @ $105.69) (B- , Caa1) 07/15/11 11.375 383,731
400 Brand Services, Inc., Global Company
Guaranteed Notes
(Callable 10/15/07 @ $106.00) (CCC+ , Caa1) 10/15/12 12.000 426,000
400 Brickman Group, Ltd., Series B, Global
Company Guaranteed Notes
(Callable 12/15/06 @ $105.88) (B , B2) 12/15/09 11.750 447,000
500 Corrections Corporation of America, Senior
Notes (Callable 05/01/07 @ $103.75) (BB- , Ba3) 05/01/11 7.500 519,375
500 Integrated Alarm Services Group, Inc.,
Rule 144A, Secured Notes
(Callable 11/15/08 @ $106.00) #++ (B- , B3) 11/15/11 12.750 502,500
650 Iron Mountain, Inc., Company Guaranteed
Notes (Callable 07/01/08 @ $103.31) (B , Caa1) 01/01/16 6.625 601,250
See Accompanying Notes to Financial Statements.
22
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
------ ------------- -------- ------ ------------
CORPORATE BONDS
SERVICES-OTHER
$ 200 Protection One Alarm Monitor, Series B, Global
Company Guaranteed Notes (B- , Caa1) 01/15/09 8.125 $ 196,000
500 Rent-Way, Inc., Global Secured Notes (B- , B3) 06/15/10 11.875 540,000
590 United Rentals North America, Inc., Global
Company Guaranteed Notes
(Callable 02/15/08 @ $103.25) (BB- , B3) 02/15/12 6.500 568,613
425 Williams Scotsman, Inc., Rule 144A, Senior
Notes (Callable 10/01/10 @ $104.25) ++ (B , B3) 10/01/15 8.500 433,500
------------
4,617,969
------------
TECHNOLOGY (3.1%)
400 Advanced Micro Devices, Inc., Global Senior
Notes (Callable 11/01/08 @ $103.88) (B- , B3) 11/01/12 7.750 402,000
200 Amkor Technology, Inc., Global Senior Notes ss. (B- , Caa1) 02/15/08 9.250 192,000
800 Amkor Technology, Inc., Global Senior Notes
(Callable 05/15/08 @ $103.88) ss. (B- , Caa1) 05/15/13 7.750 686,000
450 Freescale Semiconductor, Inc., Global Senior
Notes (Callable 07/15/09 @ $103.56) (BB+ , Ba2) 07/15/14 7.125 474,188
600 Magnachip Semiconductor, Global Senior
Subordinated Notes
(Callable 12/15/09 @ $104.00) ss. (B- , B2) 12/15/14 8.000 552,000
550 Sanmina-SCI Corp., Global Company
Guaranteed Notes
(Callable 01/15/07 @ $105.19) (BB- , Ba2) 01/15/10 10.375 605,000
805 SunGard Data Systems, Inc., Rule 144A,
Senior Unsecured Notes
(Callable 08/15/09 @ $104.56) ++ (B- , B3) 08/15/13 9.125 821,100
1,050 Xerox Corp., Senior Notes
(Callable 06/15/08 @ $103.81) (BB- , Ba2) 06/15/13 7.625 1,107,750
------------
4,840,038
------------
TEXTILE/APPAREL/SHOE MANUFACTURING (1.0%)
200 BGF Industries, Inc., Series B, Senior
Subordinated Notes
(Callable 01/15/06 @ $101.75) (CCC- , Ca) 01/15/09 10.250 185,000
850 Levi Strauss & Co., Global Senior Notes
(Callable 12/15/07 @ $106.13) (B- , Caa2) 12/15/12 12.250 937,125
400 Phillips-Van Heusen Corp., Global Senior
Notes (Callable 02/15/08 @ $103.63) (BB , B1) 02/15/11 7.250 406,000
------------
1,528,125
------------
TOWER (0.3%)
500 American Tower Corp., Global Senior Notes
(Callable 10/15/08 @ $103.56) (BB- , B1) 10/15/12 7.125 518,125
------------
TRANSPORTATION/OTHER (1.0%)
250 H-Lines Finance Holding Corp., Global Senior
Discount Notes
(Callable 04/01/08 @ $105.50) + (CCC+ , Caa2) 04/01/13 0.000 206,875
See Accompanying Notes to Financial Statements.
23
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
------ ------------- -------- ------ ------------
CORPORATE BONDS
TRANSPORTATION/OTHER
$ 600 Horizon Lines LLC, Global Company
Guaranteed Notes
(Callable 11/01/08 @ $104.50) (CCC+ , B3) 11/01/12 9.000 $ 639,750
150 Kansas City Southern Railway, Global
Company Guaranteed Notes (B+ , B2) 10/01/08 9.500 163,125
500 Overseas Shipholding Group, Inc., Global
Senior Notes (Callable 03/15/08 @ $104.12) (BB+ , Ba1) 03/15/13 8.250 536,875
------------
1,546,625
------------
UTILITIES (7.0%)
500 AES Corp., Rule 144A, Senior Secured Notes
(Callable 05/15/08 @ $104.50) ++ (B+ , Ba3) 05/15/15 9.000 545,000
60 AES Corp., Senior Notes (B- , B1) 06/01/09 9.500 64,800
500 AES Corp., Senior Notes (B- , B1) 03/01/14 7.750 521,250
650 Allegheny Energy Supply Company LLC,
Global Notes ss. (B , Ba3) 03/15/11 7.800 702,000
700 Aquila, Inc., Senior Notes ss. (B- , B2) 11/15/09 7.625 721,000
260 Calpine Corp., Rule 144A, Secured Notes
(Callable 07/15/07 @ $104.25) ss.++ (B- , NR) 07/15/10 8.500 183,300
600 Calpine Corp., Rule 144A, Secured Notes
(Callable 07/15/08 @ $104.38) ss.++ (B- , NR) 07/15/13 8.750 418,500
750 Calpine Corp., Senior Notes ss. (CCC , Caa3) 02/15/11 8.500 356,250
500 Calpine Generating Company LLC, Global
Secured Notes (Callable 04/01/08 @ $103.50) # (B- , B3) 04/01/10 9.610 507,500
350 CMS Energy Corp., Global Senior Notes ss. (B+ , B1) 08/01/10 7.750 371,000
250 CMS Energy Corp., Senior Notes (B+ , B1) 07/15/08 8.900 268,750
775 Edison Mission Energy, Senior Notes (B+ , B1) 06/15/09 7.730 807,938
248 ESI Tractebel Acquisition Corp., Series B,
Company Guaranteed Notes
(Callable 06/30/08 @ $101.84) (BB , Ba1) 12/30/11 7.990 261,102
500 Mirant Americas Generation LLC, Senior Notes (NR , NR) 05/01/06 7.625 602,500
1,000 Mirant Corp., Rule 144A, Senior Notes 0++ (NR , NR) 01/15/06 7.400 1,165,000
500 NorthWestern Corp., Global Secured Notes
(Callable 11/01/09 @ $102.94) (BB+ , Ba1) 11/01/14 5.875 497,894
330 NRG Energy, Inc., Global Company Guaranteed
Notes (Callable 12/15/08 @ $104.00) (BB , B1) 12/15/13 8.000 361,350
900 PSEG Energy Holdings LLC, Global Notes (BB- , Ba3) 04/16/07 7.750 918,000
1,000 Sierra Pacific Resources, Global Senior Notes
(Callable 03/15/09 @ $104.31) (B- , B1) 03/15/14 8.625 1,095,000
450 TECO Energy, Inc., Notes ss. (BB , Ba2) 05/01/11 7.200 472,500
------------
10,840,634
------------
WIRELESS (5.3%)
470 AirGate PCS, Inc., Secured Notes
(Callable 01/01/06 @ $104.69) (CCC , Caa1) 09/01/09 9.375 493,395
425 American Cellular Corp., Global Senior Notes
(Callable 08/01/07 @ $105.00) (B- , B3) 08/01/11 10.000 461,125
600 Centennial Communications, Global Company
Guaranteed Notes
(Callable 06/15/08 @ $105.06) (CCC , B3) 06/15/13 10.125 673,500
See Accompanying Notes to Financial Statements.
24
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
------ ------------- -------- ------ ------------
CORPORATE BONDS
WIRELESS
$ 365 Dobson Cellular Systems, Inc.,
Global Secured Notes
(Callable 11/01/08 @ $104.94) (CCC , B2) 11/01/12 9.875 $ 396,025
400 Dobson Communications Corp., Global Senior
Notes (Callable 10/01/08 @ $104.44) ss. (CCC , Caa2) 10/01/13 8.875 393,000
400 Horizon PCS, Inc., , Global Company
Guaranteed Notes
(Callable 07/15/08 @ $105.69) (CCC , B3) 07/15/12 11.375 452,000
1,000 IWO Holdings, Inc., Global Secured Notes
(Callable 01/15/07 @ $102.00) # (CCC+ , B3) 01/15/12 7.900 1,045,000
800 Nextel Communications, Inc., Series D,
Senior Notes (Callable 08/01/08 @ $103.69) (A- , Baa2) 08/01/15 7.375 847,456
500 Nextel Partners, Inc., Global Senior Notes
(Callable 07/01/07 @ $104.06) (BB- , Ba3) 07/01/11 8.125 536,250
800 Rural Cellular Corp., Global Senior
Subordinated Notes
(Callable 01/15/06 @ $104.88) ss. (CCC , Caa2) 01/15/10 9.750 800,000
1,100 Triton PCS, Inc., Global Company Guaranteed
Notes (Callable 06/01/08 @ $104.25) (CCC- , Caa1) 06/01/13 8.500 1,034,000
750 Ubiquitel Operating Co., Global Senior Notes
(Callable 03/01/07 @ $107.41) (CCC , Caa1) 03/01/11 9.875 823,125
250 US Unwired, Inc., Global Secured Notes
(Callable 06/15/08 @ $105.00) (BBB- , Caa1) 06/15/12 10.000 285,625
------------
8,240,501
------------
TOTAL CORPORATE BONDS (Cost $135,741,430) 138,318,107
------------
FOREIGN BONDS (7.7%)
BROADCAST/OUTDOOR (0.3%)
449 Corus Entertainment, Inc., Global Senior
Subordinated Notes
(Callable 03/01/07 @ $104.38) (Canada) (B+ , B1) 03/01/12 8.750 481,552
------------
BUILDING PRODUCTS (0.3%)
1,025 Maax Holdings, Inc., Global Senior Discount
Notes (Callable 12/15/08 @ $105.63)
(Canada) + (CCC+ , Caa1) 12/15/12 0.000 410,000
------------
CABLE (0.9%)
500 Kabel Deutschland GmbH, Rule 144A,
Senior Notes (Callable 07/01/09 @ $105.31)
(Germany) ++ (B- , B2) 07/01/14 10.625 540,625
800 Videotron Ltee, Global Company Guaranteed
Notes (Callable 01/15/09 @ $103.44) (Canada) (B+ , Ba3) 01/15/14 6.875 812,000
------------
1,352,625
------------
CHEMICALS (0.3%)
385 Rhodia SA, Global Senior Notes (France) (CCC+ , B3) 06/01/10 10.250 411,950
------------
See Accompanying Notes to Financial Statements.
25
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
------ ------------- -------- ------ ------------
FOREIGN BONDS
CONTAINERS (0.8%)
$ 500 Crown European Holdings SA, Global Secured
Notes (Callable 03/01/07 @ $104.75) (France) (B+ , B1) 03/01/11 9.500 $ 550,000
600 Crown European Holdings SA, Global Secured
Notes (Callable 03/01/08 @ $105.44) (France) (B , B2) 03/01/13 10.875 706,500
------------
1,256,500
------------
GAMING (0.5%)
800 Kerzner International, Ltd., Rule 144A, Senior
Subordinated Notes
(Callable 10/01/10 @ $103.38) (Bahamas) ++ (B , B2) 10/01/15 6.750 764,000
------------
INDUSTRIAL - OTHER (0.0%)
350 International Utility Structures, Inc., Yankee
Senior Subordinated Notes
(Callable 02/01/06 @ $100.00) (Canada) 0^ (NR , NR) 02/01/08 10.750 0
------------
LEISURE (0.5%)
200 Intrawest Corp., Global Senior Notes
(Callable 10/15/08 @ $103.75) (Canada) (B+ , B1) 10/15/13 7.500 204,500
500 NCL Corp., Rule 144A, Senior Notes
(Callable 07/15/09 @ $105.31) (Bermuda) #++ (B+ , B2) 07/15/14 11.625 516,250
------------
720,750
------------
METALS & MINING (0.4%)
250 Gerdau Ameristeel Corp., Global Senior
Notes (Callable 07/15/07 @ $105.38) (Canada) (BB- , Ba3) 07/15/11 10.375 274,375
294 Ispat Inland ULC, Global Secured Notes
(Callable 04/01/09 @ $104.88) (Canada) (BBB+ , Ba1) 04/01/14 9.750 333,690
------------
608,065
------------
PAPER & FOREST PRODUCTS (1.3%)
500 Abitibi-Consolidated, Inc., Global Notes
(Canada) ss. (BB- , Ba3) 06/15/11 7.750 466,250
350 Ainsworth Lumber Company, Ltd., Global
Company Guaranteed Notes
(Callable 10/01/08 @ $103.63) (Canada) (B+ , B2) 10/01/12 7.250 317,625
250 Ainsworth Lumber Company, Ltd., Yankee
Senior Notes (Callable 03/15/09 @ $103.38)
(Canada) (B+ , B2) 03/15/14 6.750 217,500
1 Ainsworth Lumber Company, Ltd., Yankee
Senior Notes (Canada) (B+ , NR) 07/15/07 12.500 549
250 JSG Funding PLC, Global Senior Notes
(Callable 10/01/07 @ $104.81) (Ireland) (B- , B3) 10/01/12 9.625 241,250
650 Norske Skog Canada, Ltd., Series D, Global
Company Guaranteed Notes
(Callable 06/15/06 @ $104.31) (Canada) ss. (BB- , Ba3) 06/15/11 8.625 630,500
250 Tembec Industries, Inc., Yankee Company
Guaranteed Notes
(Callable 06/30/06 @ $101.44) (Canada) ss. (CCC+ , B3) 06/30/09 8.625 170,000
------------
2,043,674
------------
See Accompanying Notes to Financial Statements.
26
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
PAR
(000) VALUE
------ ------------
FOREIGN BONDS
PUBLISHING (0.2%)
$ 375 Sun Media Corp., Global Company Guaranteed
Notes (Callable 02/15/08 @ $103.81) (Canada) (B , Ba3) 02/15/13 7.625 $ 390,000
------------
RETAIL-FOOD & DRUG (0.3%)
550 Jean Coutu Group (PJC), Inc., Global Senior
Subordinated Notes
(Callable 08/01/09 @ $104.25) (Canada) ss. (B- , Caa1) 08/01/14 8.500 512,875
------------
SECONDARY OIL & GAS PRODUCERS (0.4%)
250 Compton Petroleum Corp., Global Senior Notes
(Callable 05/15/06 @ $104.95) (Canada) (B , B2) 05/15/09 9.900 266,875
400 Harvest Operations Corp., Global Senior Notes
(Callable 10/15/08 @ $103.94) (Canada) (B- , B3) 10/15/11 7.875 390,000
------------
656,875
------------
TECHNOLOGY (0.8%)
400 Celestica, Inc., Senior Subordinated Notes
(Callable 07/01/08 @ $103.94) (Canada) (B , B2) 07/01/11 7.875 398,000
325 Flextronics International, Ltd., Global Senior
Subordinated Notes
(Callable 11/15/09 @ $103.13) (Singapore) ss. (BB- , Ba2) 11/15/14 6.250 316,875
500 STATS ChipPAC, Ltd., Global Company
Guaranteed Notes
(Callable 11/15/08 @ $103.38) (Singapore) (BB , Ba2) 11/15/11 6.750 486,250
------------
1,201,125
------------
TRANSPORTATION/OTHER (0.6%)
450 Stena AB, Global Senior Notes
(Callable 12/01/09 @ $103.50) (Sweden) (BB- , Ba3) 12/01/16 7.000 407,250
500 Titan Petrochemicals Group, Ltd., Rule 144A,
Company Guaranteed Notes (Bermuda) ++ (B+ , B1) 03/18/12 8.500 475,000
------------
882,250
------------
WIRELESS (0.1%)
125 Rogers Wireless Communications, Inc.,
Global Secured Notes (Canada) (BB , Ba3) 05/01/11 9.625 144,063
------------
TOTAL FOREIGN BONDS (Cost $12,385,303) 11,836,304
------------
NUMBER OF
SHARES
---------
COMMON STOCKS (0.5%)
CHEMICALS (0.1%)
9,785 Huntsman Corp. * 194,526
------------
FOOD PROCESSORS/BEVERAGE/BOTTLING (0.3%)
352 Crunch Equity Holding LLC, Class A * 378,365
------------
WIRELESS (0.1%)
25,734 Dobson Communications Corp., Class A * 187,601
------------
TOTAL COMMON STOCKS (Cost $572,689) 760,492
------------
See Accompanying Notes to Financial Statements.
27
CREDIT SUISSE HIGH INCOME FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
--------- -------------
PREFERRED STOCKS (0.6%)
BROADCAST/OUTDOOR (0.6%)
138 Paxson Communications Corp. *ss $ 943,499
-------------
WIRELESS (0.0%)
8 Dobson Communications Corp. 11,220
-------------
TOTAL PREFERRED STOCKS (Cost $1,139,043) 954,719
-------------
WARRANTS (0.0%)
BROADBAND (0.0%)
100 GT Group Telecom, Inc., Rule 144A,
strike price $0.00, expires 2/01/10 *++^ 0
-------------
TEXTILE/APPAREL/SHOE MANUFACTURING (0.0%)
155 AGY Holding Corp., strike price $0.01
expires 01/02/10 *^ 1
-------------
TOTAL WARRANTS (Cost $2,502) 1
-------------
SHORT-TERM INVESTMENT (24.3%)
37,518,286 State Street Navigator Prime Fundss.ss
(Cost $37,518,286) 37,518,286
-------------
TOTAL INVESTMENTS AT VALUE (122.5%) (Cost $187,359,253) 189,387,909
LIABILITIES IN EXCESS OF OTHER ASSETS (-22.5%) (34,742,180)
-------------
NET ASSETS (100.0%) $ 154,645,729
=============
INVESTMENT ABBREVIATIONS
MTNA = Medium Term Notes, Series A
NR = Not Rated
- --------------------------------------------------------------------------------
+ Credit ratings given by the Standard & Poor's Division of The McGraw-Hill
Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's")
are unaudited.
++ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
2005, these securities amounted to a value of $19,090,826 or 12.34% of
net assets.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by, or under the direction of, the Board of
Trustees.
# Variable rate obligations - The interest rate shown is the rate as of
October 31, 2005.
+ Step Bond - The interest rate is as of October 31, 2005 and will reset at
a future date.
0 Security in default.
* 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.
28
CREDIT SUISSE HIGH INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2005
- --------------------------------------------------------------------------------
ASSETS
Investments at value, including collateral for securities on loan of
$37,518,286 (Cost $187,359,253) (Note 2) $ 189,387,909 1
Interest receivable 3,490,014
Receivable for investments sold 1,584,422
Receivable for fund shares sold 520,162
Prepaid expenses and other assets 39,911
----------------
Total Assets 195,022,418
----------------
LIABILITIES
Advisory fee payable (Note 3) 64,640
Administrative services fee payable (Note 3) 22,398
Distribution fee payable (Note 3) 87,244
Payable upon return of securities loaned (Note 2) 37,518,286
Loan payable (Note 4) 691,000
Payable for fund shares redeemed 599,182
Dividend payable 525,217
Due to custodian 416,481
Payable for investments purchased 377,672
Interest payable 8,326
Trustees' fee payable 5,502
Other accrued expenses payable 60,741
----------------
Total Liabilities 40,376,689
----------------
NET ASSETS
Capital stock, $0.001 par value (Note 6) 19,425
Paid-in capital (Note 6) 149,063,617
Accumulated net investment loss (500,151)
Accumulated net realized gain on investments 4,034,182
Net unrealized appreciation from investments 2,028,656
----------------
Net Assets $ 154,645,729
================
COMMON SHARES
Net assets $ 548,624
Shares outstanding 69,046
----------------
Net asset value, offering price, and redemption price per share $ 7.95
================
A SHARES
Net assets $ 71,650,993
Shares outstanding 8,993,493
----------------
Net asset value and redemption price per share $ 7.97
================
Maximum offering price per share (net asset value/(1-4.75%)) $ 8.37
================
B SHARES
Net assets $ 29,991,913
Shares outstanding 3,772,415
----------------
Net asset value and offering price per share $ 7.95
================
C SHARES
Net assets $ 52,454,199
Shares outstanding 6,589,598
----------------
Net asset value and offering price per share $ 7.96
================
- --------------------------------------------------------------------------------
1 Including $36,754,582 of securities on loan.
See Accompanying Notes to Financial Statements.
29
CREDIT SUISSE HIGH INCOME FUND
STATEMENT OF OPERATIONS
For the Year Ended October 31, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 2)
Interest $ 19,042,977
Dividends 127,820
Securities lending 180,195
----------------
Total investment income 19,350,992
----------------
EXPENSES
Investment advisory fees (Note 3) 1,280,542
Administrative services fees (Note 3) 432,454
Distribution fees (Note 3)
Class A 268,028
Class B 364,056
Class C 717,397
Transfer agent fees (Note 3) 76,850
Registration fees 54,258
Printing fees (Note 3) 41,712
Interest expense (Note 4) 40,045
Audit fees 38,124
Custodian fees 22,554
Legal fees 22,112
Trustees' fees 17,397
Insurance expense 8,219
Commitment fees (Note 4) 4,899
Miscellaneous expense 12,015
----------------
Total expenses 3,400,662
Less: fees waived (Note 3) (223,615)
----------------
Net expenses 3,177,047
----------------
Net investment income 16,173,945
----------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 4,534,975
Net change in unrealized appreciation (depreciation) from investments (15,108,927)
----------------
Net realized and unrealized loss from investments (10,573,952)
----------------
Net increase in net assets resulting from operations $ 5,599,993
================
See Accompanying Notes to Financial Statements.
30
CREDIT SUISSE HIGH INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
---------------- ----------------
FROM OPERATIONS
Net investment income $ 16,173,945 $ 20,548,579
Net realized gain from investments 4,534,975 6,470,970
Net change in unrealized appreciation (depreciation) from investments (15,108,927) 1,743,767
---------------- ----------------
Net increase in net assets resulting from operations 5,599,993 28,763,316
---------------- ----------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Common Class shares (64,845) (88,218)
Class A shares (8,989,785) (10,339,291)
Class B shares (2,732,419) (3,323,411)
Class C shares (5,422,674) (7,185,274)
Distributions from net realized gains
Common Class Shares (15,883) --
Class A Shares (2,045,433) --
Class B Shares (635,285) --
Class C Shares (1,398,027) --
---------------- ----------------
Net decrease in net assets resulting from dividends and distributions (21,304,351) (20,936,194)
---------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Proceeds from sale of shares 60,350,750 92,885,633
Reinvestment of dividends and distributions 9,351,473 7,720,668
Net asset value of shares redeemed (168,175,592) (111,553,386)
---------------- ----------------
Net decrease in net assets resulting from capital share transactions (98,473,369) (10,947,085)
---------------- ----------------
Net decrease in net assets (114,177,727) (3,119,963)
NET ASSETS
Beginning of year 268,823,456 271,943,419
---------------- ----------------
End of year $ 154,645,729 $ 268,823,456
================ ================
Undistributed net investment income (loss) $ (500,151) $ 106,780
================ ================
See Accompanying Notes to Financial Statements.
31
CREDIT SUISSE HIGH INCOME 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 $ 8.53 $ 8.27 $ 7.19 $ 7.96 $ 8.73
--------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income 0.67 1 0.71 0.70 0.72 1 0.80
Net gain (loss) on investments
(both realized and unrealized) (0.42) 0.27 1.08 (0.74) (0.71)
--------- --------- --------- --------- ---------
Total from investment operations 0.25 0.98 1.78 (0.02) 0.09
--------- --------- --------- --------- ---------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.70) (0.72) (0.70) (0.75) (0.86)
Distributions from net realized gains (0.13) -- -- -- --
--------- --------- --------- --------- ---------
Total dividends and distributions (0.83) (0.72) (0.70) (0.75) (0.86)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF YEAR $ 7.95 $ 8.53 $ 8.27 $ 7.19 $ 7.96
========= ========= ========= ========= =========
Total return 2 3.02% 12.37% 25.49% (0.60)% 0.88%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 549 $ 1,081 $ 1,029 $ 1,324 $ 599
Ratio of expenses to average net assets 0.85% 0.85% 1.10% 1.10% 1.10%
Ratio of net investment income to average
net assets 8.10% 8.46% 8.97% 9.16% 9.98%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.10% 0.05% 0.14% 2.04% 1.41%
Portfolio turnover rate 38% 16% 20% 86% 41%
- --------------------------------------------------------------------------------
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.
32
CREDIT SUISSE HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Class A 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 $ 8.55 $ 8.29 $ 7.21 $ 7.98 $ 8.73
--------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income 0.65 1 0.69 0.73 0.72 1 0.86
Net gain (loss) on investments
(both realized and unrealized) (0.42) 0.27 1.05 (0.74) (0.75)
--------- --------- --------- --------- ---------
Total from investment operations 0.23 0.96 1.78 (0.02) 0.11
--------- --------- --------- --------- ---------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.68) (0.70) (0.70) (0.75) (0.86)
Distributions from net realized gains (0.13) -- -- -- --
--------- --------- --------- --------- ---------
Total dividends and distributions (0.81) (0.70) (0.70) (0.75) (0.86)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF YEAR $ 7.97 $ 8.55 $ 8.29 $ 7.21 $ 7.98
========= ========= ========= ========= =========
Total return 2 2.75% 12.09% 25.44% (0.56)% 1.13%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 71,651 $ 131,699 $ 134,123 $ 9,390 $ 8,952
Ratio of expenses to average net assets 1.10% 1.10% 1.10% 1.10% 1.10%
Ratio of net investment income to average
net assets 7.85% 8.21% 8.58% 9.16% 10.01%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.10% 0.05% 0.14% 1.97% 1.30%
Portfolio turnover rate 38% 16% 20% 86% 41%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the years shown, total returns
would have been lower.
See Accompanying Notes to Financial Statements.
33
CREDIT SUISSE HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Class B 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 $ 8.52 $ 8.27 $ 7.19 $ 7.96 $ 8.73
--------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income 0.59 1 0.63 0.65 0.65 1 0.80
Net gain (loss) on investments
(both realized and unrealized) (0.42) 0.26 1.07 (0.73) (0.77)
--------- --------- --------- --------- ---------
Total from investment operations 0.17 0.89 1.72 (0.08) 0.03
--------- --------- --------- --------- ---------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.61) (0.64) (0.64) (0.69) (0.80)
Distributions from net realized gains (0.13) -- -- -- --
--------- --------- --------- --------- ---------
Total dividends and distributions (0.74) (0.64) (0.64) (0.69) (0.80)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF YEAR $ 7.95 $ 8.52 $ 8.27 $ 7.19 $ 7.96
========= ========= ========= ========= =========
Total return 2 1.91% 11.13% 24.55% (1.36)% 0.14%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 29,992 $ 43,077 $ 42,536 $ 2,860 $ 1,667
Ratio of expenses to average net assets 1.85% 1.85% 1.85% 1.85% 1.85%
Ratio of net investment income to average
net assets 7.10% 7.46% 7.87% 8.35% 9.22%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.10% 0.05% 0.14% 1.97% 1.35%
Portfolio turnover rate 38% 16% 20% 86% 41%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the years shown, total returns
would have been lower.
See Accompanying Notes to Financial Statements.
34
CREDIT SUISSE HIGH INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Class C 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 $ 8.54 $ 8.28 $ 7.20 $ 7.96 $ 8.73
--------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income 0.59 1 0.63 0.64 0.61 1 0.80
Net gain (loss) on investments
(both realized and unrealized) (0.42) 0.27 1.08 (0.68) (0.77)
--------- --------- --------- --------- ---------
Total from investment operations 0.17 0.90 1.72 (0.07) 0.03
--------- --------- --------- --------- ---------
LESS DIVIDENDS
Dividends from net investment income (0.62) (0.64) (0.64) (0.69) (0.80)
Distributions from net realized gains (0.13) -- -- -- --
--------- --------- --------- --------- ---------
Total dividends and distributions (0.75) (0.64) (0.64) (0.69) (0.80)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF YEAR $ 7.96 $ 8.54 $ 8.28 $ 7.20 $ 7.96
========= ========= ========= ========= =========
Total return 2 1.91% 11.26% 24.54% (1.22)% 0.14%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 52,454 $ 92,967 $ 94,255 $ 6,545 $ 623
Ratio of expenses to average net assets 1.85% 1.85% 1.85% 1.85% 1.85%
Ratio of net investment income to average
net assets 7.10% 7.46% 7.86% 8.03% 9.18%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.10% 0.05% 0.14% 2.61% 1.75%
Portfolio turnover rate 38% 16% 20% 86% 41%
- --------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the years shown, total returns
would have been lower.
See Accompanying Notes to Financial Statements.
35
CREDIT SUISSE HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Credit Suisse High Income Fund (the "Fund"), a portfolio of the Credit
Suisse Opportunity Funds (the "Trust"), a Delaware business trust, is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as a
diversified open-end management investment company that seeks to provide a high
level of current income and, secondarily, capital appreciation. The Trust was
organized under the laws of the State of Delaware as a business trust on May 31,
1995.
The Fund is authorized to offer four Classes of shares: Common Class,
Class A shares, Class B shares and Class C shares. Each class of shares
represents an equal pro rata interest in the Fund, except that they bear
different expenses which reflect the differences in the range of services
provided to them. Effective December 12, 2001, Common Class shares closed to new
investments, except for reinvestments of dividends. Common Class shareholders
may continue to hold Common Class shares but may not add to their accounts.
Although no further shares can be purchased, shareholders can redeem their
Common Class shares through any available method. Class A shares are sold
subject to a front-end sales charge up to 4.75%. 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 redeemed within the
first year of purchase.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
A) SECURITY VALUATION -- The net asset value of the Fund is determined
daily as of the close of regular trading on the New York Stock Exchange, Inc.
(the "Exchange") on each day the Exchange is open for business. Debt securities
with a remaining maturity greater than 60 days are valued in accordance with the
price supplied by a pricing service, which may use a matrix, formula or other
objective method that takes into consideration market indices, yield curves and
other specific adjustments. Debt obligations that will mature in 60 days or less
are valued on the basis of amortized cost, which approximates market value,
unless it is determined that using this method would not represent fair value.
The Fund's equity investments are valued at market value, which is generally
determined using the closing price on the exchange or market on which the
security is primarily traded at the time of valuation (the "Valuation Time"). If
no sales are reported, equity investments
36
CREDIT SUISSE HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
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.
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 the Fund's Valuation Time but
after the close of the securities' primary markets, are valued at fair value as
determined in good faith by, or under the direction of, the Board of Trustees
under procedures established by the Board of Trustees. The Fund may utilize a
service provided by an independent third party which has been approved by the
Board of Trustees to fair value certain securities. When fair-value pricing is
employed, the price of securities used by a fund to calculate its net asset
value may differ from quoted or published prices for the same securities.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions
are accounted for on a trade date basis. Interest income is recorded on the
accrual basis. Dividends are recorded on the ex-dividend date. Certain expenses
are class-specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon the relative net asset value
of the outstanding shares of that class. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income are declared daily and paid monthly. Distributions of net
realized capital gains, if any, are declared and paid at least annually.
However, to the extent that a net realized capital gain can be reduced by a
capital loss carryforward, such gain will not be distributed. Income and capital
gain distributions are determined in accordance with federal income tax
regulations, which may differ from accounting principles generally accepted in
the United States of America ("GAAP").
D) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is
the Fund's intention to have the fund 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.
37
CREDIT SUISSE HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
E) USE OF ESTIMATES -- The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.
F) SHORT-TERM INVESTMENTS -- The Fund, together with other
funds/portfolios advised by Credit Suisse Asset Management, LLC ("CSAM"), an
indirect, wholly-owned subsidiary of Credit Suisse Group, pools available cash
into either a short-term variable rate time deposit issued by State Street Bank
and Trust Company ("SSB"), the Fund's custodian, or a money market fund advised
by CSAM. The short-term time deposit issued by SSB is a variable rate account
classified as a short-term investment.
G) TBA PURCHASE COMMITMENTS -- The Fund may enter into "TBA" (to be
announced) purchase commitments to purchase securities for a fixed price at a
future date, typically not exceeding 45 days. TBA purchase commitments may be
considered securities in themselves, and involve a risk of loss if the value of
the security to be purchased declines prior to settlement date. This risk is in
addition to the risk of decline in the Fund's other assets. Unsettled TBA
purchase commitments are valued at the current market value of the underlying
securities, according to the procedures described above under "Security
Valuation".
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 Fund 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
Fund's 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 Fund to act as the Fund's securities lending
agent. The Fund's securities lending arrangement provides that the Fund and
38
CREDIT SUISSE HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
SSB will share the net income earned from the securities lending activities.
During the year ended October 31, 2005, total earnings from the fund's
investment in cash collateral received in connection with security lending
arrangements was $1,427,453 of which $1,171,215 was rebated to borrowers
(brokers). The fund retained $180,195 in income from the cash collateral
investment and SSB, as lending agent, was paid $76,043. The Fund may also be
entitled to certain minimum amounts of income from its securities lending
activities. Securities lending income is accrued as earned.
I) OTHER -- Lower-rated debt securities (commonly known as "junk bonds")
possess speculative characteristics and are subject to greater market
fluctuations and risk of lost income and principal than higher-rated debt
securities for a variety of reasons. Also, during an economic downturn or
substantial period of rising interest rates, highly leveraged issuers may
experience financial stress which would adversely affect their ability to
service their principal and interest payment obligations, to meet projected
business goals and to obtain additional financing.
In addition, periods of economic uncertainty and changes can be expected
to result in increased volatility of market prices of lower-rated debt
securities and (to the extent the Fund invests in junk bonds) the Fund's net
asset value.
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for the Fund. For its investment
advisory services, CSAM is entitled to receive a fee from the Fund at an annual
rate of 0.70% of the Fund's average daily net assets less than or equal to $100
million and 0.50% of the Fund's average daily net assets greater than $100
million. For the year ended October 31, 2005, investment advisory fees earned
and voluntarily waived were $1,280,542 and $223,615, respectively. 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 co-administrators to the Fund.
For its co-administrative services, CSAMSI currently receives a fee
calculated at an annual rate of 0.10% of the Fund's average daily net assets.
For the year
39
CREDIT SUISSE HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
ended October 31, 2005, co-administrative services fees earned by CSAMSI were
$216,108.
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 expenses) were $216,346.
In addition to serving as the Fund's co-administrator, CSAMSI currently
serves as distributor of the Fund's shares. Pursuant to distribution plans
adopted by the Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. CSAMSI is currently paid at the annual rate
of 0.25% of the average daily net assets of the Class A shares. For Class B and
Class C shares of the Fund, the fee is calculated at an annual rate of 1.00% of
the average daily net assets.
For the year ended October 31, 2005, CSAMSI and its affiliates advised the
Fund that they retained $183,883 from commissions earned on the sale of the
Fund's Class A shares.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Fund to provide certain financial printing and fulfillment services. For the
year ended October 31, 2005, Merrill was paid $11,955 for its services to the
Fund.
NOTE 4. LINE OF CREDIT
The Fund, together with other funds/portfolios advised by CSAM
(collectively, the "Participating Funds"), participates in a $75 million
committed, unsecured line of credit facility ("Credit Facility") for temporary
or emergency purposes with Deutsche Bank, A.G. as administrative agent and
syndication agent and SSB as operations agent. Under the terms of the Credit
Facility, the Participating Funds pay an aggregate commitment fee at a rate of
0.10% per annum on the average unused amount of the Credit Facility, which is
allocated among the Participating Funds in such manner as is determined by the
governing Boards of the Participating Funds. In addition, the Participating
Funds pay interest on borrowings at the Federal Funds rate plus 0.50%. At
40
CREDIT SUISSE HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 4. LINE OF CREDIT
October 31, 2005, the Fund had loans outstanding under the Credit Facility of
$691,000. During the year ended October 31, 2005, the Fund had borrowings under
the Credit Facility as follows:
AVERAGE DAILY WEIGHTED AVERAGE MAXIMUM DAILY
LOAN BALANCE INTEREST RATE% LOAN OUTSTANDING
------------- ---------------- ----------------
$5,281,679 2.984% $15,950,000
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 $80,054,911 and $141,717,941,
respectively.
NOTE 6. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue an unlimited number of full and fractional
shares of beneficial interest, $.001 par value per share, of which an unlimited
number of shares are classified as Common Class shares, Class A shares, Class B
shares and Class C shares. Transactions in capital shares for each class were as
follows:
COMMON CLASS
-------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-------------------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ -------------- ------------ --------------
Shares issued in reinvestment
of dividends and distributions 8,813 $ 73,187 9,690 $ 81,122
Shares redeemed (66,457) (543,991) (7,400) (62,119)
------------ -------------- ------------ --------------
Net increase (decrease) (57,644) $ (470,804) 2,290 $ 19,003
============ ============== ============ ==============
CLASS A
-------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-------------------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ -------------- ------------ --------------
Shares sold 5,273,064 $ 44,008,176 6,903,205 $ 58,155,863
Shares issued in reinvestment
of dividends and distributions 830,765 6,914,718 657,012 5,514,747
Shares redeemed (12,517,568) (103,132,963) (8,326,673) (69,954,781)
------------ -------------- ------------ --------------
Net decrease (6,413,739) $ (52,210,069) (766,456) $ (6,284,171)
============ ============== ============ ==============
41
CREDIT SUISSE HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS
CLASS B
-------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-------------------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ -------------- ------------ --------------
Shares sold 323,075 $ 2,685,673 756,214 $ 6,353,456
Shares issued in reinvestment
of dividends and distributions 96,071 795,984 73,558 615,051
Shares redeemed (1,699,939) (14,008,822) (919,871) (7,691,662)
------------ -------------- ------------ --------------
Net decrease (1,280,793) $ (10,527,165) (90,099) $ (723,155)
============ ============== ============ ==============
CLASS C
-------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2005 OCTOBER 31, 2004
-------------------------------------------------------------------------
SHARES VALUE SHARES VALUE
------------ -------------- ------------ --------------
Shares sold 1,630,042 $ 13,656,901 3,371,485 $ 28,376,314
Shares issued in reinvestment
of dividends and distributions 188,597 1,567,584 180,244 1,509,748
Shares redeemed (6,121,309) (50,489,816) (4,042,421) (33,844,824)
------------ -------------- ------------ --------------
Net decrease (4,302,670) $ (35,265,331) (490,692) $ (3,958,762)
============ ============== ============ ==============
On October 31, 2005, the number of shareholders that held 5% or more of
the outstanding shares of each class of the Fund was as follows:
NUMBER OF APPROXIMATE PERCENTAGE
SHAREHOLDERS OF OUTSTANDING SHARES
--------------- ----------------------
Common Class 5 80%
Class A 4 67%
Class B 1 57%
Class C 1 56%
Some of the shareholders are omnibus accounts, which hold shares on behalf
of individual shareholders.
NOTE 7. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP.
The tax characteristics of dividends and distributions paid during the
years ended October 31, 2005 and 2004 by the Fund were as follows:
ORDINARY INCOME LONG-TERM CAPITAL GAIN
--------------- ----------------------
2005 2004 2005 2004
---- ---- ---- ----
$ 17,449,559 $ 20,936,194 $ 3,854,792 $ --
42
CREDIT SUISSE HIGH INCOME FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
October 31, 2005
- --------------------------------------------------------------------------------
NOTE 7. FEDERAL INCOME TAXES
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 losses deferred on wash
sales and income from defaulted bonds. At October 31, 2005, the components of
distributable earnings on a tax basis for the Fund were as follows:
Undistributed net investment income $ 326,728
Accumulated Long-term capital gains 4,138,984
Unrealized appreciation 1,096,975
-----------
$ 5,562,687
===========
At October 31, 2005, the Fund had no capital loss carryforwards available
to offset possible future capital gains.
At 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 $188,290,936, $5,707,865,
($4,610,890) and $1,096,975, respectively.
At October 31, 2005, the Fund reclassified $428,847 from accumulated net
realized gain from investments to undistributed net investment loss, to adjust
for current period permanent book/tax differences which arose principally from
differing book/tax treatments of paydowns and defaulted bonds. Net assets were
not affected by these reclassifications.
NOTE 8. CONTINGENCIES
In the normal course of business, the Fund may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Fund's maximum exposure under these arrangements is dependent on future claims
that may be made against the Fund and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
43
CREDIT SUISSE HIGH INCOME FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Credit Suisse High Income Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Credit Suisse High Income Fund (the
"Fund") at October 31, 2005, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with 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 and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
December 19, 2005
44
CREDIT SUISSE HIGH INCOME FUND
INFORMATION CONCERNING TRUSTEES AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE 1 PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ----------------------- ----------- --------- --------------------- ------------- ------------------
INDEPENDENT TRUSTEES
Enrique Arzac Trustee, Since Professor of Finance 47 Director of
c/o Credit Suisse Asset Nominating 2005 and Economics, The Adams Express
Management, LLC Committee Graduate School of Company (a closed-
Attn: General Counsel Member and Business, Columbia end investment
466 Lexington Avenue Audit University since 1971 company); Director
New York, New York Committee of Petroleum and
10019-3140 Chairman Resources
Corporation (a
Date of Birth: 02/10/41 closed-end
investment Company)
Richard H. Francis Trustee, Since Currently retired 41 None
c/o Credit Suisse Asset Nominating 2001
Management, LLC and Audit
Attn: General Counsel Committee
466 Lexington Avenue Member
New York, New York
10017-3140
Date of Birth: 04/23/32
Jeffrey E. Garten Trustee, Since The Juan Trippe 40 Director of
Box 208200 Nominating 2001 Professor in the Practice Aetna, Inc.
New Haven, Connecticut and Audit of International Trade, (insurance company);
06520-8200 Committee Finance and Business from Director of
Member from July 2005 to present; CarMax Group
Date of Birth: 10/29/46 Partner and Chairman of (used car
Garten Rothkopf (consulting dealers)
firm) from October 2005
to present; Dean of Yale
School of Management
from November 1995 to
June 2005.
Peter F. Krogh Trustee, Since Dean Emeritus and 40 Director
301 ICC Nominating 2001 Distinguished Professor of Carlisle
Georgetown University and Audit of International Affairs Companies
Washington, DC 20057 Committee at the Edmund A. Incorporated
Member Walsh School of (diversified
Date of Birth: 02/11/37 Foreign Service, manufacturing
Georgetown University from company)
June 1995 to present
______________
1 Each Trustee and Officer serves until his or her respective successor has
been duly elected and qualified.
45
CREDIT SUISSE HIGH INCOME FUND
INFORMATION CONCERNING TRUSTEES AND OFFICERS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE 1 PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ----------------------- ----------- --------- --------------------- ------------- ------------------
INDEPENDENT TRUSTEES
James S. Pasman, Jr. Trustee, Since Currently retired 42 Director of
c/o Credit Suisse Asset Nominating 1999 Education
Management, LLC and Audit Management
Attn: General Counsel Committee Corp.
466 Lexington Avenue Member
New York, New York
10017-3140
Date of Birth: 12/20/30
Steven N. Rappaport Chairman of Trustee Partner of Lehigh Court, 46 Director of
Lehigh Court, LLC the Board of since LLC and RZ Capital Presstek, Inc.
40 East 52nd Street Trustees, 1999 and (private investment (digital imaging
New York, New York Nominating Chairman firms) from July 2002 technologies
10022 Committee since to present; Transition company);
Chairman 2005 Adviser to SunGard Director of
Date of Birth: 07/10/48 and Audit Securities Finance, Inc. Wood Resources,
Committee from February 2002 to LLC. (plywood
Member July 2002; President of manufacturing
SunGard Securities company)
Finance, Inc. from 2001
to February 2002; President
of Loanet, Inc. (on-line
accounting service) from
1997 to 2001.
INTERESTED TRUSTEE
Michael E. Kenneally 2,3 Trustee Since Chairman and Global 40 None
c/o Credit Suisse Asset 2004 Chief Executive
Management, LLC Officer of CSAM from
Attn: General Counsel March 2003 to July
466 Lexington Avenue 2005; Chairman and
New York, New York Chief Investment
10017-3140 Officer of Banc of
America Capital
Date of Birth: 03/30/54 Management from
1998 to March 2003.
______________
2 Mr. Kenneally is a 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.
3 Effective July 31, 2005, Steven B. Plump was appointed as Chief Executive
Officer and President of the Fund. Mr. Kenneally, who previously held
these positions, resigned effective July 31, 2005.
46
CREDIT SUISSE HIGH INCOME FUND
INFORMATION CONCERNING TRUSTEES AND OFFICERS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TERM OF
OFFICE 1
POSITION(S) AND LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ----------------------- ----------- ----------- --------------------------------------------------------
OFFICERS
Steven B. Plump 3 Chief Since Managing Director; Associated with CSAM or its
Credit Suisse Asset Executive 2005 predecessor since 1995; Officer of other
Management, LLC Officer and Credit Suisse Funds
466 Lexington Avenue President
New York, New York
10017-3140
Date of Birth: 02/08/59
Michael A. Pignataro Chief Since Director and Director of Fund Administration of CSAM;
Credit Suisse Asset Financial 2001 Associated with CSAM or its pedecessor 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 and
Management, LLC Officer Director of Compliance of Forstmann-Leff Associates from
466 Lexington Avenue 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 Since Director and General Counsel (Americas) of CSAM since
Credit Suisse Asset Legal 2004 September 2004; Senior Associate of Shearman & Sterling
Management, LLC Officer LLP from September 2000 to September 2004; Senior
466 Lexington Avenue Counsel of the SEC Division of Investment Management
New York, New York from June 1997 to September 2000; Officer of other
10017-3140 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
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
____________
3 Effective July 31, 2005, Steven B. Plump was appointed as Chief Executive
Officer and President of the Fund. Mr. Kenneally, who previously held
these positions, resigned effective July 31, 2005.
The Statement of Additional Information includes additional information
about the Trustees and is available, without charge, upon request, by calling
800-927-2874.
47
CREDIT SUISSE HIGH INCOME FUND
TAX INFORMATION LETTER
October 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS
For the fiscal year ended October 31, 2005 certain dividends paid by the
Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs
and Growth Tax Relief Reconciliation Act of 2003. Complete information will be
reported in conjunction with your 2005 Form 1099-DIV.
For the fiscal year ended October 31, 2005, the Fund designated
approximately $127,820, or up to the maximum amount of such dividends allowable
pursuant to the Internal Revenue Code, as qualified dividend income eligible for
reduced tax rates. These lower rates range from 5% to 15% depending on an
individual's tax bracket. If the Fund pays a distribution during calendar year
2005, completed information will be reported in conjunction with Form 1099-DIV.
Corporate shareholders should note for the year ended October 31, 2005,
the percentage of the Fund's investment income (i.e., net investment income plus
short-term capital gains) that qualified for the intercorporate dividends
received deduction is 0.08%.
IMPORTANT TAX INFORMATION FOR SHAREHOLDERS
During the year ended October 31, 2005, the Fund declared $3,854,620 in
dividends that were designated as 20% long-term capital gains dividends.
48
CREDIT SUISSE HIGH INCOME FUND
PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION
- --------------------------------------------------------------------------------
Information regarding how the 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 the Fund uses to determine how to vote proxies
relating to its portfolio securities are available:
o By calling 1-800-927-2874
o On the Fund's website, www.csam.com/us
o On the website of the Securities and Exchange Commission,
http://www.sec.gov.
The Fund files a complete schedule of its portfolio holdings for the first
and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms
N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC. Information on
the operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330.
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P.O. BOX 55030, BOSTON, MA 02205-5030 CREDIT | ASSET
800-927-2874 o www.csam.com/us SUISSE | MANAGEMENT
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. HI-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 $25,943 $28,730
- ---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees1 $9,000 $3,150
- ---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees2 $4,646 $2,439
- ---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees -- --
- ---------------------------------------- -------------------------------------- --------------------------------------
Total $39,589 $34,319
- ---------------------------------------- -------------------------------------- --------------------------------------
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 OPPORTUNITY FUNDS
/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