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. 811-08921
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CREDIT SUISSE LARGE CAP BLEND FUND, INC.
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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 Large Cap Blend Fund, Inc.
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: December 31st
Date of reporting period: January 1, 2005 to December 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
CREDIT SUISSE [LOGO]
CREDIT SUISSE FUNDS
Annual Report
December 31, 2005
o CREDIT SUISSE
LARGE CAP BLEND 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 DECEMBER 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 ("CREDIT SUISSE") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE
NOT GUARANTEED BY CREDIT SUISSE OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
CREDIT SUISSE LARGE CAP BLEND FUND
ANNUAL INVESTMENT ADVISER'S REPORT
December 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
January 26, 2006
Dear Shareholder:
PERFORMANCE SUMMARY
01/01/05 - 12/31/05
SHARE CLASS/BENCHMARK PERFORMANCE
Common 1 2.70%
Class A 1,2 2.69%
Class B 1,2 1.91%
Class C 1,2 1.91%
S&P 500 Index 3 4.91%
PERFORMANCE FOR THE FUND'S CLASS A, CLASS B AND CLASS C SHARES IS WITHOUT THE
MAXIMUM SALES CHARGE OF 5.75%, 4.00% AND 1.00%, RESPECTIVELY. 2
Effective August 8, 2005, the Fund's name was changed to Credit Suisse
Large Cap Blend Fund. With its new policies, the Fund focuses on striving to
identify companies with favorable growth or value characteristics using both
fundamental and quantitative stock analyses. The portfolio managers will
assemble what they believe is an optimal blend of growth and value stocks that
is well diversified and presents a desired capital appreciation potential and
risk level relative to the Fund's S&P 500 Index benchmark. The portion of the
Fund's assets invested in growth and value stocks will vary over time, and,
depending on market conditions the Fund may be predominantly invested in one or
the other.
THE MARKET: POSITIVE DESPITE RISING ENERGY COSTS, INTEREST RATES
The period was an overall positive one for equities. Stocks initially
struggled, but rallied into the summer, aided by benign inflation data and good
earnings reports from a number of visible companies. To be sure, headwinds were
ever-present, notably in the form of hurricane activity, surging energy prices
and a Federal Reserve that continued to raise short-term interest rates in small
but steady increments. In the face of all this, the economy nonetheless appeared
resilient, at least as of late 2005: Third-quarter GDP growth was reported at an
annualized rate of 4.1%, the tenth consecutive quarter of 3% or greater growth.
The earnings backdrop remained generally supportive late in the year.
In the market, high energy prices helped drive the outperformance of
energy related stocks, which, despite some late-period weakness, outpaced all
other economic sectors in the period. This was reflected in the outperformance
of
1
CREDIT SUISSE LARGE CAP BLEND FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
December 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
value stocks over growth stocks, as energy companies comprise a relatively large
portion of the value universe. Mid-capitalization stocks generally outperformed
both large- and small-cap stocks for the period.
STRATEGIC REVIEW: CONSUMER STOCKS COUNTERED BY INDUSTRIAL, HEALTH CARE HOLDINGS
The Fund participated in the market's rise but trailed its benchmark in
the period. Stocks that detracted from the Fund's performance included its
industrial and health care holdings. In addition, while the Fund's utilities
stocks had good performance in absolute terms, they trailed the utilities
component of the Fund's benchmark. On the positive side, the Fund's consumer
discretionary holdings performed relatively well, with solid showings from its
retail companies. The Fund's consumer staples stocks performed well in both
relative and absolute terms.
With regard to recent portfolio activity, our purchases have included
Grant Prideco (0.8% of the Fund's net assets as of December 31, 2005), a
manufacturer of metal tubes used in energy exploration and production. We
initiated the position based on our view on its long-term growth prospects. Our
sales included XM Satellite Radio, based on valuation in the wake of good
performance along with our concerns over the company's subscription growth going
forward.
The Credit Suisse Large Cap Core Team
Stephen J. Kaszynski
Jeffrey T. Rose
William D. Butler
THE VALUE OF INVESTMENTS GENERALLY WILL FLUCTUATE IN RESPONSE TO MARKET
MOVEMENTS.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS
FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND
FOREIGN MARKET, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT
REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE
STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS,
DEVELOPMENTS AND REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE
MATERIALLY DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS
NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
2
CREDIT SUISSE LARGE CAP BLEND FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
December 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE LARGE CAP BLEND FUND 1 COMMON CLASS SHARES AND
THE S&P 500 INDEX 3 FROM INCEPTION (10/30/98).
[LINE GRAPH]
Credit Suisse Large
Cap Blend Fund 1 --
Date Common Class S&P 500 Index 3
------- -------------------- -----------------
10/98 10000 10000
10000 10117
10765 10731
11220 11355
12/98 11289 11823
11056 11455
11634 11916
12437 12369
11960 12083
12744 12744
12155 12356
12619 12298
12286 11958
12929 12718
13844 12978
12/99 14292 13741
13782 13050
14310 12804
15568 14056
15780 13633
15780 13353
16105 13683
16000 13469
16836 14305
16642 13550
16809 13493
15260 12429
12/00 15076 12490
15720 12933
14148 11753
12841 11009
13817 11864
14148 11944
13893 11653
13438 11539
12680 10816
11506 9943
11696 10132
12832 10910
12/01 12766 11005
12529 10845
12140 10636
12539 11036
11855 10367
12017 10290
11067 9557
10128 8812
10118 8870
9008 7906
9757 8602
10374 9108
12/02 9721 8573
9436 8348
9341 8223
9465 8303
10007 8987
10396 9461
10501 9582
10757 9751
10852 9941
10605 9835
11175 10392
11327 10483
12/03 11802 11033
11755 11235
11840 11391
11660 11220
11527 11043
11650 11195
11888 11413
11479 11035
11422 11080
11565 11200
11745 11371
12268 11831
12/04 12644 12233
12441 11935
12664 12186
12481 11971
12176 11743
12441 12117
12481 12134
12806 12586
12694 12471
12794 12572
12498 12362
12947 12829
12/05 12984 12834
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE LARGE CAP BLEND FUND 1 CLASS A SHARES 2, CLASS B SHARES 2,
CLASS C SHARES 2 AND THE S&P 500 INDEX 3,4 FROM INCEPTION (07/31/01).
[LINE GRAPH]
Credit Suisse Large Credit Suisse Large Credit Suisse Large
Cap Blend Fund 1 Cap Blend Fund 1 Cap Blend Fund 1
-- Class A 2 -- Class B 2 -- Class C 2
(with maximum (with maximum contingent (with maximum contingent
Date sales charge) deferred sales charge) deferred sales charge) S&P 500 Index 3,4
------- -------------------- ------------------------ ------------------------ -----------------
07/01 9425 10000 10000 10000
8891 9429 9436 9374
8068 8555 8548 8617
8207 8696 8682 8781
9011 9535 9521 9455
12/01 8958 9477 9463 9538
8792 9293 9279 9399
8519 8997 8990 9217
8798 9293 9279 9564
8319 8778 8764 8984
8432 8884 8877 8918
06/02 7767 8178 8178 8283
7108 7480 7473 7637
7101 7473 7452 7687
6323 6647 6626 6852
6855 7205 7183 7455
7288 7649 7628 7894
12/02 6826 7162 7141 7430
6626 6951 6929 7235
6560 6873 6859 7127
6646 6965 6943 7196
7026 7353 7339 7789
7305 7642 7621 8199
06/03 7372 7713 7684 8304
7552 7889 7868 8450
7618 7953 7931 8615
7452 7776 7755 8524
7851 8185 8164 9006
7951 8284 8263 9086
12/03 8291 8630 8609 9562
8257 8595 8574 9737
8317 8651 8630 9872
8191 8510 8489 9724
8098 8411 8390 9571
8178 8489 8468 9702
06/04 8351 8658 8637 9891
8064 8355 8341 9564
8024 8312 8291 9602
8118 8404 8390 9706
8251 8538 8517 9855
8617 8905 8884 10253
12/04 8880 9180 9159 10602
8738 9022 9001 10344
8895 9180 9159 10561
8774 9045 9024 10374
8553 8819 8797 10178
8738 8999 8978 10501
06/05 8766 9030 9008 10516
8994 9256 9235 10907
8916 9165 9144 10808
8986 9230 9209 10895
8778 9019 8998 10714
9093 9336 9315 11119
12/05 9119 9355 9334 11123
3
CREDIT SUISSE LARGE CAP BLEND FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
December 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS AS OF DECEMBER 31, 2005 1
SINCE
1 YEAR 5 YEARS INCEPTION
------ ------- ---------
Common Class 2.70% (2.94)% 3.71%
Class A Without Sales Charge 2.69% -- (0.74)%
Class A With Maximum Sales Charge (3.21)% -- (2.06)%
Class B Without CDSC 1.91% -- (1.50)%
Class B With CDSC (2.01)% -- (1.50)%
Class C Without CDSC 1.91% -- (1.55)%
Class C With CDSC 0.93% -- (1.55)%
RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND
REINVESTMENTS 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 MORE OR 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.CREDIT-SUISSE.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 (with maximum sales charge of 5.75%) was down 3.21%. Total
return for Class B shares for the reporting period, based on redemption
value (including contingent deferred sales charge of 4.00%), was down
2.01%. Total return for Class C shares for the reporting period, based on
redemption value (including contingent deferred sales charge of 1.00%),
was 0.93%.
3 The Standard & Poor's 500 Index is an unmanaged index (with no defined
investment objective) of common stocks, includes reinvestment of
dividends, and is a registered trademark of McGraw-Hill Co., Inc.
Investors cannot invest directly in an index.
4 Performance for the index is not available for the period 7/31/01
(inception date). For that reason, performance is shown for the period
beginning 8/1/01.
4
CREDIT SUISSE LARGE CAP BLEND FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
December 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
December 31, 2005.
The table illustrates your Fund's expenses in two ways:
o ACTUAL FUND RETURN. This helps you estimate the actual dollar amount
of ongoing expenses paid on a $1,000 investment in the Fund using
the Fund's actual return during the period. To estimate the expenses
you paid over the period, simply divide your account value by $1,000
(for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the "Expenses Paid per $1,000"
line under the share class you hold.
o HYPOTHETICAL 5% FUND RETURN. This helps you to compare your Fund's
ongoing expenses with those of other mutual funds using the Fund's
actual expense ratio and a hypothetical rate of return of 5% per
year before expenses. Examples using a 5% hypothetical fund return
may be found in the shareholder reports of other mutual funds. The
hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the
period.
Please note that the expenses shown in these tables are meant to highlight
your ongoing expenses only and do not reflect any transaction costs, such as
sales charges (loads) or redemption fees. If these transaction costs had been
included, your costs would have been higher. The "Expenses Paid per $1,000" line
of the tables is useful in comparing ongoing expenses only and will not help you
determine the relative total expenses of owning different funds.
5
CREDIT SUISSE LARGE CAP BLEND FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
December 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2005
- --------------------------------------------------------------------------------
COMMON
ACTUAL FUND RETURN CLASS CLASS A CLASS B CLASS C
--------- --------- --------- ---------
Beginning Account Value 7/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value 12/31/05 $1,040.30 $1,040.20 $1,036.10 $1,036.20
Expenses Paid per $1,000* $ 6.69 $ 6.69 $ 10.52 $ 10.52
HYPOTHETICAL 5% FUND RETURN
Beginning Account Value 7/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Ending Account Value 12/31/05 $1,018.65 $1,018.65 $1,014.87 $1,014.87
Expenses Paid per $1,000* $ 6.61 $ 6.61 $ 10.41 $ 10.41
COMMON
CLASS CLASS A CLASS B CLASS C
--------- --------- --------- ---------
ANNUALIZED EXPENSE RATIOS* 1.30% 1.30% 2.05% 2.05%
______________
* EXPENSES ARE EQUAL TO THE FUN0D'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 "EXPENSE PAID PER $1,000" AND THE "ANNUALIZED EXPENSE RATIOS" IN THE
TABLES ARE BASED ON ACTUAL EXPENSES PAID BY THE FUND DURING THE PERIOD,
NET OF FEE WAIVERS AND/OR EXPENSE REIMBURSEMENTS. IF THOSE FEE WAIVERS
AND/OR EXPENSE REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE FUND'S ACTUAL
EXPENSES WOULD HAVE BEEN HIGHER.
For more information, please refer to the Fund's prospectus.
6
CREDIT SUISSE LARGE CAP BLEND FUND
ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
December 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
SECTOR BREAKDOWN*
[BAR CHART]
Financials 21.3%
Industrial Technology 15.7%
Health Care 13.7%
Industrials 12.3%
Energy 10.5%
Consumer Discretionary 8.8%
Consumer Staples 8.2%
Telecomm Services 3.1%
Materials 3.0%
Utilities 2.6%
Short-Term Investment 0.8%
_____________
* Expressed as a percentage of total investments (excluding security lending
collateral) and may vary over time.
7
CREDIT SUISSE LARGE CAP BLEND FUND
SCHEDULE OF INVESTMENTS
December 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ ------------
COMMON STOCKS (99.3%)
AEROSPACE & DEFENSE (6.0%)
Boeing Co. 17,100 $ 1,201,104
Goodrich Corp. 16,200 665,820
L-3 Communications Holdings, Inc. 11,100 825,285
United Technologies Corp. 25,700 1,436,887
------------
4,129,096
------------
BANKS (6.6%)
North Fork Bancorporation, Inc. 35,650 975,384
South Financial Group, Inc. ss. 24,600 677,484
U.S. Bancorp 35,100 1,049,139
Wells Fargo & Co. 29,700 1,866,051
------------
4,568,058
------------
BIOTECHNOLOGY (1.0%)
Amgen, Inc.* 8,500 670,310
------------
BUILDING PRODUCTS (0.7%)
American Standard Companies, Inc. 12,600 503,370
------------
CHEMICALS (1.7%)
Dow Chemical Co. 11,200 490,784
Monsanto Co. 9,200 713,276
------------
1,204,060
------------
COMMERCIAL SERVICES & SUPPLIES (0.8%)
Avery Dennison Corp. ss. 10,400 574,808
------------
COMMUNICATIONS EQUIPMENT (1.3%)
Motorola, Inc. 39,800 899,082
------------
COMPUTERS & PERIPHERALS (3.7%)
Dell, Inc.* 20,700 620,793
EMC Corp.* 38,000 517,560
International Business Machines Corp. 17,200 1,413,840
------------
2,552,193
------------
CONTAINERS & PACKAGING (1.2%)
Crown Holdings, Inc.* 43,900 857,367
------------
DIVERSIFIED FINANCIALS (7.8%)
American Express Co. 14,000 720,440
Citigroup, Inc. 30,771 1,493,317
Goldman Sachs Group, Inc. 6,400 817,344
JPMorgan Chase & Co. 20,500 813,645
MBNA Corp. 57,700 1,566,555
------------
5,411,301
------------
See Accompanying Notes to Financial Statements.
8
CREDIT SUISSE LARGE CAP BLEND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ ------------
COMMON STOCKS
DIVERSIFIED TELECOMMUNICATION SERVICES (3.1%)
ALLTEL Corp. 14,300 $ 902,330
Sprint Nextel Corp. 53,800 1,256,768
------------
2,159,098
------------
ELECTRIC UTILITIES (2.6%)
Dominion Resources, Inc. 4,700 362,840
Exelon Corp. 13,200 701,448
TXU Corp. 15,100 757,869
------------
1,822,157
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.1%)
Broadcom Corp. Class A* 16,200 763,830
------------
ENERGY EQUIPMENT & SERVICES (0.8%)
Grant Prideco, Inc.* 12,700 560,324
------------
FOOD & DRUG RETAILING (1.2%)
CVS Corp. 31,300 826,946
------------
FOOD PRODUCTS (2.6%)
Campbell Soup Co. 25,800 768,066
Kellogg Co. 23,800 1,028,636
------------
1,796,702
------------
HEALTHCARE EQUIPMENT & SUPPLIES (2.0%)
Dade Behring Holdings, Inc. 9,700 396,633
St. Jude Medical, Inc.* 19,100 958,820
------------
1,355,453
------------
HEALTHCARE PROVIDERS & SERVICES (2.7%)
UnitedHealth Group, Inc. 20,800 1,292,512
WellPoint, Inc.* 7,300 582,467
------------
1,874,979
------------
HOTELS, RESTAURANTS & LEISURE (1.6%)
McDonald's Corp. 32,100 1,082,412
------------
HOUSEHOLD DURABLES (0.7%)
D.R. Horton, Inc. 13,600 485,928
------------
HOUSEHOLD PRODUCTS (2.1%)
Procter & Gamble Co. 25,300 1,464,364
------------
INDUSTRIAL CONGLOMERATES (3.1%)
General Electric Co. 40,700 1,426,535
Tyco International, Ltd. 25,500 735,930
------------
2,162,465
------------
See Accompanying Notes to Financial Statements.
9
CREDIT SUISSE LARGE CAP BLEND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ ------------
COMMON STOCKS
INSURANCE (6.9%)
American International Group, Inc. 29,000 $ 1,978,670
Genworth Financial, Inc. Class A 32,700 1,130,766
Hartford Financial Services Group, Inc. 10,400 893,256
St. Paul Travelers Companies, Inc. 18,200 812,994
------------
4,815,686
------------
INTERNET SOFTWARE & SERVICES (1.5%)
Google, Inc. Class A* 1,700 705,262
VeriSign, Inc.* 15,700 344,144
------------
1,049,406
------------
IT CONSULTING & SERVICES (1.4%)
CACI International, Inc. Class A* 9,000 516,420
NAVTEQ Corp.* 10,700 469,409
------------
985,829
------------
MACHINERY (1.7%)
Deere & Co. 17,000 1,157,870
------------
MEDIA (2.2%)
E.W. Scripps Co. Class A 14,400 691,488
Time Warner, Inc. 48,000 837,120
------------
1,528,608
------------
MULTILINE RETAIL (2.4%)
J.C. Penney Company, Inc. 14,300 795,080
Kohl's Corp.* 17,600 855,360
------------
1,650,440
------------
OIL & GAS (9.7%)
Apache Corp. 17,000 1,164,840
Burlington Resources, Inc. 5,200 448,240
Chevron Corp. 23,500 1,334,095
ConocoPhillips 19,500 1,134,510
Exxon Mobil Corp. 23,100 1,297,527
Newfield Exploration Co.* 7,200 360,504
Noble Energy, Inc. 16,500 664,950
XTO Energy, Inc. 8,000 351,520
------------
6,756,186
------------
PHARMACEUTICALS (8.1%)
Barr Pharmaceuticals, Inc.* 15,200 946,808
Johnson & Johnson 18,700 1,123,870
Medco Health Solutions, Inc.* 14,900 831,420
Pfizer, Inc. 34,000 792,880
Sepracor, Inc.* ss. 14,600 753,360
Wyeth 25,500 1,174,785
------------
5,623,123
------------
See Accompanying Notes to Financial Statements.
10
CREDIT SUISSE LARGE CAP BLEND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
------------ ------------
COMMON STOCKS
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.3%)
Intel Corp. 46,300 $ 1,155,648
Maxim Integrated Products, Inc. 12,200 442,128
------------
1,597,776
------------
SOFTWARE (4.4%)
Activision, Inc.* 27,533 378,303
Electronic Arts, Inc.* 12,200 638,182
Microsoft Corp. 78,700 2,058,005
------------
3,074,490
------------
SPECIALTY RETAIL (2.0%)
Best Buy Company, Inc. 14,300 621,764
Ross Stores, Inc. ss. 27,000 780,300
------------
1,402,064
------------
TOBACCO (2.3%)
Altria Group, Inc. 21,700 1,621,424
------------
TOTAL COMMON STOCKS (COST $61,520,714) 68,987,205
------------
SHORT-TERM INVESTMENTS (3.6%)
State Street Navigator Prime Fund ss.ss. 1,998,868 1,998,868
PAR
(000)
------------
State Street Bank and Trust Co. Euro Time
Deposit, 3.350%, 1/03/06 $ 521 521,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,519,868) 2,519,868
------------
TOTAL INVESTMENTS AT VALUE (102.9%)
(COST $64,040,582) 71,507,073
LIABILITIES IN EXCESS OF OTHER ASSETS (-2.9%) (2,046,587)
------------
NET ASSETS (100.0%) $ 69,460,486
============
- --------------------------------------------------------------------------------
* 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.
11
CREDIT SUISSE LARGE CAP BLEND FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2005
- --------------------------------------------------------------------------------
ASSETS
Investments at value, including collateral for securities
on loan of $1,998,868 (Cost $64,040,582) (Note 2) $ 71,507,073 1
Cash 633
Dividend and interest receivable 80,975
Receivable for fund shares sold 300
Prepaid expenses and other assets 30,063
------------
Total Assets 71,619,044
------------
LIABILITIES
Advisory fee payable (Note 3) 27,355
Administrative services fee payable (Note 3) 11,639
Distribution fee payable (Note 3) 21,191
Payable upon return of securities loaned (Note 2) 1,998,868
Payable for fund shares redeemed 28,040
Other accrued expenses payable 71,465
------------
Total Liabilities 2,158,558
------------
NET ASSETS
Capital stock, $0.001 par value (Note 6) 5,688
Paid-in capital (Note 6) 64,183,601
Accumulated net realized loss on investments (2,195,294)
Net unrealized appreciation from investments 7,466,491
------------
Net Assets $ 69,460,486
============
COMMON SHARES
Net assets $ 2,809,395
Shares outstanding 229,704
------------
Net asset value, offering price, and redemption price per share $ 12.23
============
A SHARES
Net assets $ 57,199,713
Shares outstanding 4,664,953
------------
Net asset value and redemption price per share $ 12.26
============
Maximum offering price per share (net asset value/(1-5.75%)) $ 13.01
============
B SHARES
Net assets $ 8,342,035
Shares outstanding 699,792
------------
Net asset value and offering price per share $ 11.92
============
C SHARES
Net assets $ 1,109,343
Shares outstanding 93,312
------------
Net asset value and offering price per share $ 11.89
============
- --------------------------------------------------------------------------------
1 Including $1,953,080 of securities on loan.
See Accompanying Notes to Financial Statements.
12
CREDIT SUISSE LARGE CAP BLEND FUND
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2005
- --------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 2)
Dividends $ 1,173,135
Interest 24,165
Securities lending 1,198
------------
Total investment income 1,198,498
------------
EXPENSES
Investment advisory fees (Note 3) 555,498
Administrative services fees (Note 3) 97,365
Distribution fees (Note 3)
Common Class 7,727
Class A 147,908
Class B 103,819
Class C 14,306
Transfer agent fees (Note 3) 138,303
Registration fees 46,595
Printing fees (Note 3) 40,692
Audit and tax fees 21,460
Custodian fees 19,252
Directors' fees 16,899
Legal fees 14,970
Insurance expense 6,395
Commitment fees (Note 4) 1,870
Miscellaneous expense 12,875
------------
Total expenses 1,245,934
Less: fees waived (Note 3) (194,477)
------------
Net expenses 1,051,457
------------
Net investment income 147,041
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 6,624,939
Net change in unrealized appreciation (depreciation)
from investments (5,106,356)
------------
Net realized and unrealized gain from investments 1,518,583
------------
Net increase in net assets resulting from operations $ 1,665,624
============
- --------------------------------------------------------------------------------
See Accompanying Notes to Financial Statements.
13
CREDIT SUISSE LARGE CAP BLEND FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE PERIOD
FOR THE YEAR SEPTEMBER FOR THE YEAR
ENDED 1, 2004 TO ENDED
DECEMBER 31, DECEMBER 31, AUGUST 31,
2005 2004 1 2004
------------ ------------ ------------
FROM OPERATIONS
Net investment income $ 147,041 $ 332,103 $ 80,646
Net realized gain from investments 6,624,939 1,756,240 14,143,446
Net change in unrealized appreciation
(depreciation) from investments (5,106,356) 6,219,001 (16,515,698)
------------ ------------ ------------
Net increase (decrease) in net assets resulting
from operations 1,665,624 8,307,344 (2,291,606)
------------ ------------ ------------
FROM DIVIDENDS
Dividends from net investment income
Common Class shares (16,332) (4,071) (4,482)
Class A shares (310,397) (73,821) (1,625)
Class B shares (4,698) -- --
Class C shares (623) -- --
Distributions from net realized gains
Common Class shares (110,598) (214,769) --
Class A shares (2,237,090) (3,950,170) --
Class B shares (333,667) (885,822) --
Class C shares (46,449) (120,536) --
------------ ------------ ------------
Net decrease in net assets resulting
from dividends and distributions (3,059,854) (5,249,189) (6,107)
------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 2,342,378 1,038,674 3,060,914
Exchange value of shares due to merger -- -- 88,620,976
Reinvestment of dividends and distributions 2,668,195 4,593,125 5,774
Net asset value of shares redeemed (16,365,188) (8,854,717) (15,996,481)
------------ ------------ ------------
Net increase (decrease) in net assets
from capital share transactions (11,354,615) (3,222,918) 75,691,183
------------ ------------ ------------
Net increase (decrease) in net assets (12,748,845) (164,763) 73,393,470
NET ASSETS
Beginning of period 82,209,331 82,374,094 8,980,624
------------ ------------ ------------
End of period $ 69,460,486 $ 82,209,331 $ 82,374,094
============ ============ ============
Undistributed net investment income $ -- $ 332,017 $ 77,863
============ ============ ============
- --------------------------------------------------------------------------------
1 The Fund changed its fiscal year end from August 31 to December 31.
See Accompanying Notes to Financial Statements.
14
CREDIT SUISSE LARGE CAP BLEND FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE PERIOD
SEPTEMBER
FOR THE YEAR 1, 2004
ENDED TO FOR THE YEAR ENDED AUGUST 31,
DECEMBER DECEMBER -----------------------------------------------------------
31, 2005 31, 2004 1 2004 2003 2002 2001
----------- -------------- ----------- ----------- ----------- -----------
PER SHARE DATA
Net asset value,
beginning of period $ 12.45 $ 12.01 $ 11.42 $ 10.66 $ 13.39 $ 19.13
----------- ----------- ----------- ----------- ----------- -----------
INVESTMENT OPERATIONS
Net investment income 0.04 2 0.05 2 0.03 2 0.01 0.01 2 0.02
Net gain (loss) on
investments (both
realized and unrealized) 0.30 1.21 0.57 0.76 (2.71) (4.48)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations 0.34 1.26 0.60 0.77 (2.70) (4.46)
----------- ----------- ----------- ----------- ----------- -----------
LESS DIVIDENDS
AND DISTRIBUTIONS
Dividends from net
investment income (0.07) (0.01) (0.01) (0.01) (0.01) (0.03)
Distributions from net
realized gains (0.49) (0.81) -- -- (0.02) (1.25)
----------- ----------- ----------- ----------- ----------- -----------
Total dividends and
distributions (0.56) (0.82) (0.01) (0.01) (0.03) (1.28)
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE,
END OF PERIOD $ 12.23 $ 12.45 $ 12.01 $ 11.42 $ 10.66 $ 13.39
=========== =========== =========== =========== =========== ===========
Total return 3 2.70% 10.70% 5.25% 7.26% (20.21)% (24.68)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $ 2,809 $ 3,471 $ 4,383 $ 5,653 $ 4,545 $ 7,696
Ratio of expenses to
average net assets 1.30% 1.30% 4 1.30% 1.25% 1.19% 1.22%
Ratio of net investment
income to average
net assets 0.32% 1.37% 4 0.23% 0.17% 0.12% 0.09%
Decrease reflected in above
operating expense ratios due
to waivers/reimbursements 0.26% 0.32% 4 0.40% 2.87% 2.24% 1.98%
Portfolio turnover rate 101% 34% 168% 155% 122% 141%
- --------------------------------------------------------------------------------
1 The Fund changed its fiscal year end from August 31 to December 31.
2 Per share information is calculated using the average shares outstanding
method.
3 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been
lower. Total returns for periods less than one year are not annualized.
4 Annualized.
See Accompanying Notes to Financial Statements.
15
CREDIT SUISSE LARGE CAP BLEND FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE PERIOD
SEPTEMBER
FOR THE YEAR 1, 2004
ENDED TO FOR THE YEAR ENDED AUGUST 31,
DECEMBER DECEMBER -----------------------------------------------------------
31, 2005 31, 2004 1 2004 2003 2002 2001 2
----------- -------------- ----------- ----------- ----------- -----------
PER SHARE DATA
Net asset value,
beginning of period $ 12.48 $ 12.04 $ 11.44 $ 10.67 $ 13.39 $ 14.19
----------- ----------- ----------- ----------- ----------- -----------
INVESTMENT OPERATIONS
Net investment income 0.04 3 0.06 3 0.04 3 0.01 0.01 3 0.01
Net gain (loss) on
investments (both
realized and unrealized) 0.30 1.20 0.57 0.77 (2.70) (0.81)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations 0.34 1.26 0.61 0.78 (2.69) (0.80)
----------- ----------- ----------- ----------- ----------- -----------
LESS DIVIDENDS
AND DISTRIBUTIONS
Dividends from net
investment income (0.07) (0.01) (0.01) (0.01) (0.01) --
Distributions from net
realized gains (0.49) (0.81) -- -- (0.02) --
----------- ----------- ----------- ----------- ----------- -----------
Total dividends and
distributions (0.56) (0.82) (0.01) (0.01) (0.03) --
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE,
END OF PERIOD $ 12.26 $ 12.48 $ 12.04 $ 11.44 $ 10.67 $ 13.39
=========== =========== =========== =========== =========== ===========
Total return 4 2.69% 10.67% 5.33% 7.28% (20.13)% (5.64)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $ 57,200 $ 63,160 $ 61,089 $ 1,778 $ 566 $ 64
Ratio of expenses to
average net assets 1.30% 1.30% 5 1.30% 1.25% 1.19% 1.19% 5
Ratio of net investment
income to average
net assets 0.32% 1.37% 5 0.32% 0.22% 0.09% 0.77% 5
Decrease reflected in above
operating expense ratios due
to waivers/reimbursements 0.26% 0.32% 5 0.39% 2.90% 2.30% 6.44% 5
Portfolio turnover rate 101% 34% 168% 155% 122% 141%
- --------------------------------------------------------------------------------
1 The Fund changed its fiscal year end from August 31 to December 31.
2 For the period July 31, 2001 (inception date) through August 31, 2001.
3 Per share information is calculated using the average shares outstanding
method.
4 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are
not annualized.
5 Annualized
See Accompanying Notes to Financial Statements.
16
CREDIT SUISSE LARGE CAP BLEND FUND
FINANCIAL HIGHLIGHTS
(For a Class B Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE PERIOD
SEPTEMBER
FOR THE YEAR 1, 2004
ENDED TO FOR THE YEAR ENDED AUGUST 31,
DECEMBER DECEMBER -----------------------------------------------------------
31, 2005 31, 2004 1 2004 2003 2002 2001 2
----------- -------------- ----------- ----------- ----------- -----------
PER SHARE DATA
Net asset value,
beginning of period $ 12.18 $ 11.78 $ 11.27 $ 10.59 $ 13.38 $ 14.19
----------- ----------- ----------- ----------- ----------- -----------
INVESTMENT OPERATIONS
Net investment income (loss) (0.05) 3 0.02 3 (0.05) 3 (0.06) 3 (0.06) 3 0.00 4
Net gain (loss) on
investments (both
realized and unrealized) 0.29 1.19 0.56 0.74 (2.71) (0.81)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations 0.24 1.21 0.51 0.68 (2.77) (0.81)
----------- ----------- ----------- ----------- ----------- -----------
LESS DIVIDENDS
AND DISTRIBUTIONS
Dividends from net
investment income (0.01) -- -- -- -- --
Distributions from net
realized gains (0.49) (0.81) -- -- (0.02) --
----------- ----------- ----------- ----------- ----------- -----------
Total dividends and
distributions (0.50) (0.81) -- -- (0.02) --
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE,
END OF PERIOD $ 11.92 $ 12.18 $ 11.78 $ 11.27 $ 10.59 $ 13.38
=========== =========== =========== =========== =========== ===========
Total return 5 1.91% 10.44% 4.53% 6.42% (20.75)% (5.71)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $ 8,342 $ 13,714 $ 14,745 $ 1,109 $ 518 $ 1
Ratio of expenses to
average net assets 2.05% 2.05% 6 2.05% 2.00% 1.94% 1.94% 6
Ratio of net investment
income (loss) to
average net assets (0.44)% 0.62% 6 (0.45)% (0.55)% (0.67)% (0.31)% 6
Decrease reflected in above
operating expense ratios due
to waivers/reimbursements 0.26% 0.32% 6 0.39% 2.90% 2.25% 6.47% 6
Portfolio turnover rate 101% 34% 168% 155% 122% 141%
- --------------------------------------------------------------------------------
1 The Fund changed its fiscal year end from August 31 to December 31.
2 For the period July 31, 2001 (inception date) through August 31, 2001.
3 Per share information is calculated using the average shares outstanding
method.
4 This amount represents less than $0.01 per share.
5 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are
not annualized.
6 Annualized.
See Accompanying Notes to Financial Statements.
17
CREDIT SUISSE LARGE CAP BLEND FUND
FINANCIAL HIGHLIGHTS
(For a Class C Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
FOR THE PERIOD
SEPTEMBER
FOR THE YEAR 1, 2004
ENDED TO FOR THE YEAR ENDED AUGUST 31,
DECEMBER DECEMBER -----------------------------------------------------------
31, 2005 31, 2004 1 2004 2003 2002 2001 2
----------- -------------- ----------- ----------- ----------- -----------
PER SHARE DATA
Net asset value,
beginning of period $ 12.15 $ 11.75 $ 11.24 $ 10.56 $ 13.39 $ 14.19
----------- ----------- ----------- ----------- ----------- -----------
INVESTMENT OPERATIONS
Net investment income (loss) (0.05) 3 0.03 3 (0.06) 3 (0.06) 3 (0.06) 3 0.00 4
Net gain (loss) on
investments (both
realized and unrealized) 0.29 1.18 0.57 0.74 (2.75) (0.80)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations 0.24 1.21 0.51 0.68 (2.81) (0.80)
----------- ----------- ----------- ----------- ----------- -----------
LESS DIVIDENDS
AND DISTRIBUTIONS
Dividends from net
investment income (0.01) -- -- -- -- --
Distributions from net
realized gains (0.49) (0.81) -- -- (0.02) --
----------- ----------- ----------- ----------- ----------- -----------
Total dividends and
distributions (0.50) (0.81) -- -- (0.02) --
----------- ----------- ----------- ----------- ----------- -----------
NET ASSET VALUE,
END OF PERIOD $ 11.89 $ 12.15 $ 11.75 $ 11.24 $ 10.56 $ 13.39
=========== =========== =========== =========== =========== ===========
Total return 5 1.91% 10.47% 4.54% 6.44% (21.03)% (5.64)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $ 1,109 $ 1,864 $ 2,156 $ 441 $ 271 $ 102
Ratio of expenses to
average net assets 2.05% 2.05% 6 2.05% 2.00% 1.94% 1.94% 6
Ratio of net investment
income (loss) to
average net assets (0.44)% 0.62% 6 (0.47)% (0.55)% (0.65)% (0.25)% 6
Decrease reflected in above
operating expense ratios due
to waivers/reimbursements 0.26% 0.32% 6 0.39% 2.90% 2.25% 6.43% 6
Portfolio turnover rate 101% 34% 168% 155% 122% 141%
- --------------------------------------------------------------------------------
1 The Fund changed its fiscal year end from August 31 to December 31.
2 For the period July 31, 2001 (inception date) through August 31, 2001.
3 Per share information is calculated using the average shares outstanding
method.
4 This amount represents less than $0.01 per share.
5 Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are
not annualized.
6 Annualized.
See Accompanying Notes to Financial Statements.
18
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Credit Suisse Large Cap Blend Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as a
diversified, open-end management investment company. The Fund's investment
objective is long-term capital appreciation. The Fund was incorporated under the
laws of the State of Maryland on July 31, 1998. The name of the Fund was changed
from Credit Suisse Select Equity Fund, Inc. effective August 8, 2005.
The Fund is authorized to offer six classes of shares: Common Class
shares, Advisor Class shares, Institutional Class shares, 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. The Fund currently offers
Common Class shares, Class A shares, Class B shares and Class C shares. The
Fund's Common Class shares are closed to new investors, other than (1) investors
in employee retirement, stock, bonus, pension or profit-sharing plans, (2)
investment advisory clients of Credit Suisse Asset Management, LLC ("Credit
Suisse"), (3) certain registered investment advisers ("RIA"), (4) certain
broker-dealers and RIAs with clients participating in comprehensive fee programs
and (5) employees of Credit Suisse or its affiliates and current and former
Directors or Trustees of funds advised by Credit Suisse or its affiliates, and
(6) a corporation, partnership, association, joint-stock company, trust, fund or
any organized group of persons whether incorporated or not that has a formal or
informal consulting or advisory relationship with Credit Suisse or a third party
through which the investment is made. Any Common Class shareholder as of the
close of business on December 12, 2001 can continue to buy Common Class shares
of the Fund and open new accounts under the same social security number.
Effective October 24, 2002, Institutional Class shares ceased operations. Class
A shares are sold subject to a front-end sales charge of up to 5.75%. Class B
shares are sold subject to a contingent deferred sales charge which declines
from 4.00% 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.
Effective as of the close of business on January 9, 2004, the Fund
acquired all of the net assets of the Credit Suisse Tax Efficient Fund ("Tax
Efficient") in a tax-free exchange of shares. The Fund was also the accounting
survivor in the tax-free exchange. The shares exchanged were 58,722 Class A
shares (valued at $731,097) of the Fund for 47,899 Common Class shares of Tax
Efficient, 5,280,784
19
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Class A shares (valued at $65,745,895) of the Fund for 4,294,302 Class A shares
of Tax Efficient, 1,563,233 Class B shares (valued at $19,133,980) of the Fund
for 1,320,686 Class B shares of Tax Efficient, and 246,518 Class C shares
(valued at $3,010,004) of the Fund for 207,812 Class C shares of Tax Efficient.
Tax Efficient's net assets of $88,620,976 at that date, which included
$21,904,658 of unrealized appreciation, were combined with those of the Fund.
The aggregate net assets of Tax Efficient and the Fund immediately before the
acquisition were $88,620,976 and $9,412,634, respectively, and the combined net
assets of the Fund after the acquisition were $98,033,610.
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. 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 are generally valued at the most recent bid
quotation as of the Valuation Time or at the lowest asked quotation in the case
of a short sale of securities. Debt securities with a remaining maturity greater
than 60 days are valued in accordance with the price supplied by a pricing
service, which may use a matrix, formula or other objective method that takes
into consideration market indices, yield curves and other specific adjustments.
Debt obligations that will mature in 60 days or less are valued on the basis of
amortized cost, which approximates market value, unless it is determined that
using this method would not represent fair value. Investments in mutual funds
are valued at the mutual fund's closing net asset value per share on the day of
valuation. Securities and other assets for which market quotations are not
readily available, or whose values have been materially affected by events
occurring before 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 Directors under procedures
established by the Board of Directors. The Fund may utilize a service provided
by an independent third party which has been approved by the Board of Directors
to fair value certain Fund securities. When fair-value pricing is employed, the
prices of securities used by a fund to calculate its net asset value may differ
from quoted or published prices for the same securities.
20
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
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 and distributions of net realized capital gains, if any, are
declared and paid at least annually. However, to the extent that a net realized
capital gain can be reduced by a capital loss carryforward, such gain will not
be distributed. Income and capital gain distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States of America ("GAAP").
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.
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, 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 Credit Suisse. The
short-term time deposit issued by SSB is a variable rate account classified as a
short-term investment.
21
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
G) SECURITIES LENDING -- Loans of securities are required at all times to
be secured by collateral at least equal to 102% of the market value of domestic
securities on loan (including any accrued interest thereon) and 105% of the
market value of foreign securities on loan (including any accrued interest
thereon). Cash collateral received by the Fund in connection with securities
lending activity may be pooled together with cash collateral for other
funds/portfolios advised by Credit Suisse and may be invested in a variety of
investments, including certain Credit Suisse-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 SSB
will share the net income earned from securities lending activities. During the
year ended December 31, 2005, total earnings from the Fund's investment in cash
collateral received in connection with security lending arrangements was
$54,326, of which $52,621 was rebated to borrowers (brokers). The Fund retained
$1,198 in income from the cash collateral investment, and SSB, as lending agent,
was paid $507. The Fund may also be entitled to certain minimum amounts of
income from its securities lending activities. Securities lending income is
accrued as earned.
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Credit Suisse serves as investment adviser for the Fund. For its
investment advisory services, Credit Suisse is entitled to receive a fee from
the Fund at an annual rate of 0.75% of the Fund's average daily net assets. For
the year ended December 31, 2005, investment advisory fees earned and
voluntarily waived for the Fund were $555,498 and $194,477, respectively. Credit
Suisse will not recapture from the Fund any fees it waived during the fiscal
year ended December 31, 2005. Fee waivers and reimbursements are voluntary and
may be discontinued by Credit Suisse at any time.
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate
of Credit Suisse, 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 0.05% of the Fund's average daily net assets.
For the year
22
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
ended December 31, 2005, co-administrative services fees earned by CSAMSI were
$37,033.
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 December 31, 2005, co-administrative services fees earned by SSB
(including out-of-pocket expenses) were $60,332.
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. For the Common Class and Class A shares of
the Fund, the fee is calculated at an annual rate of 0.25% of the average daily
net assets. For Class B and Class C shares of the Fund, the fee is calculated at
an annual rate of 1.00% of average daily net assets.
Certain brokers, dealers and financial representatives provide transfer
agent related services to the Fund, and receive compensation from Credit Suisse.
Credit Suisse is then reimbursed by the Fund. For the year ended December 31,
2005, the Fund reimbursed Credit Suisse $1,235, which is included in the Fund's
transfer agent expense. For the year ended December 31, 2005, CSAMSI and its
affiliates advised the Fund that they retained $833 from commissions earned on
the sale of the Fund's Class A shares.
Merrill Corporation ("Merrill"), an affiliate of Credit Suisse, has been
engaged by the Fund to provide certain financial printing and fulfillment
services. For the year ended December 31, 2005, Merrill was paid $14,023 for its
services to the Fund.
NOTE 4. LINE OF CREDIT
The Fund, together with other funds/portfolios advised by Credit Suisse
(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
23
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NOTE 4. LINE OF CREDIT
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
December 31, 2005, and during the year ended December 31, 2005, the Fund had no
borrowings under the Credit Facility.
NOTE 5. PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 2005, purchases and sales of investment
securities (excluding short-term investments) were $73,959,639 and $88,347,035,
respectively.
NOTE 6. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue six billion full and fractional shares of
capital stock, $.001 par value per share. Transactions in capital shares for
each class were as follows:
COMMON CLASS
--------------------------------------------------------------------------------------------
FOR THE PERIOD
FOR THE YEAR ENDED SEPTEMBER 1, 2004 TO FOR THE YEAR ENDED
DECEMBER 31, 2005 DECEMBER 31, 2004 1 AUGUST 31, 2004
---------------------------- ---------------------------- ----------------------------
SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------
Shares sold 2,894 $ 35,694 1,230 $ 15,506 28,860 $ 339,653
Shares issued in
reinvestment of
dividends and
distributions 10,165 125,707 17,807 217,154 358 4,437
Shares redeemed (62,116) (767,303) (105,147) (1,287,413) (159,529) (1,923,821)
------------ ------------ ------------ ------------ ------------ ------------
Net decrease (49,057) $ (605,902) (86,110) $ (1,054,753) (130,311) $ (1,579,731)
============ ============ ============ ============ ============ ============
CLASS A
--------------------------------------------------------------------------------------------
FOR THE PERIOD
FOR THE YEAR ENDED SEPTEMBER 1, 2004 TO FOR THE YEAR ENDED
DECEMBER 31, 2005 DECEMBER 31, 2004 1 AUGUST 31, 2004
---------------------------- ---------------------------- ----------------------------
SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------
Shares sold 176,736 $ 2,196,744 75,840 $ 966,295 155,404 $ 1,901,131
Shares exchanged
due to merger -- -- -- -- 5,339,506 66,476,992
Shares issued in
reinvestment of
dividends and
distributions 177,984 2,206,481 286,271 3,499,528 108 1,337
Shares redeemed (748,706) (9,275,324) (375,995) (4,701,043) (577,634) (7,092,219)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease) (393,986) $ (4,872,099) (13,884) $ (235,220) 4,917,384 $ 61,287,241
============ ============ ============ ============ ============ ============
24
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS
CLASS B
--------------------------------------------------------------------------------------------
FOR THE PERIOD
FOR THE YEAR ENDED SEPTEMBER 1, 2004 TO FOR THE YEAR ENDED
DECEMBER 31, 2005 DECEMBER 31, 2004 1 AUGUST 31, 2004
---------------------------- ---------------------------- ----------------------------
SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------
Shares sold 5,090 $ 61,068 2,407 $ 28,945 20,107 $ 240,576
Shares exchanged
due to merger -- -- -- -- 1,563,233 19,133,980
Shares issued in
reinvestment of
dividends and
distributions 25,333 305,295 66,383 790,622 -- --
Shares redeemed (456,555) (5,522,816) (194,227) (2,373,273) (430,337) (5,170,229)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease) (426,132) $ (5,156,453) (125,437) $ (1,553,706) 1,153,003 $ 14,204,327
============ ============ ============ ============ ============ ============
CLASS C
--------------------------------------------------------------------------------------------
FOR THE PERIOD
FOR THE YEAR ENDED SEPTEMBER 1, 2004 TO FOR THE YEAR ENDED
DECEMBER 31, 2005 DECEMBER 31, 2004 1 AUGUST 31, 2004
---------------------------- ---------------------------- ----------------------------
SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------
Shares sold 4,098 $ 48,872 2,351 $ 27,928 48,452 $ 579,554
Shares exchanged
due to merger -- -- -- -- 246,518 3,010,004
Shares issued in
reinvestment of
dividends and
distributions 2,555 30,712 7,224 85,821 -- --
Shares redeemed (66,794) (799,745) (39,558) (492,988) (150,796) (1,810,212)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease) (60,141) $ (720,161) (29,983) $ (379,239) 144,174 $ 1,779,346
============ ============ ============ ============ ============ ============
- --------------------------------------------------------------------------------
1 The Fund changed its fiscal year from August 31 to December 31.
On December 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 2 36%
Class C 3 48%
Some of the shareholders are omnibus accounts, which hold shares on behalf
of individual shareholders.
25
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
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
year ended December 31, 2005, the period ended December 31, 2004 and the year
ended August 31, 2004 for the Fund were as follows:
ORDINARY INCOME LONG-TERM CAPITAL GAIN
- ------------------------------------------------------- -----------------------------------------------------
DECEMBER 31, 2005 DECEMBER 31, 2004 AUGUST 31, 2004 DECEMBER 31, 2005 DECEMBER 31, 2004 AUGUST 31, 2004
- ----------------- ----------------- --------------- ----------------- ----------------- ---------------
$667,882 $77,949 $6,107 $2,391,972 $5,171,240 $--
The tax basis of components of distributable earnings differ from the
amounts reflected in the Statement of Assets and Liabilities by temporary
book/tax differences. These differences are primarily due to differing
treatments of losses deferred due to wash sales.
At December 31, 2005, the components of distributable earnings on a tax
basis for the Fund were as follows:
Accumulated net realized loss $(2,155,492)
Unrealized appreciation 7,426,689
-----------
$ 5,271,197
===========
At December 31, 2005, the Fund had capital loss carryforwards available to
offset possible future capital gains as follows:
EXPIRES DECEMBER 31,
--------------------------
2009 2010
---------- --------
$1,349,994 $805,498
It is uncertain that the Fund will realize the full benefit of these
losses prior to expiration due to section 382 limitations related to the Fund's
merger with Credit Suisse Tax Efficient Fund.
During the tax year ended December 2005, the Fund utilized $4,312,764 of
the capital loss carryforward.
At December 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 $64,080,384, $8,892,746,
($1,466,057) and $7,426,689, respectively.
26
CREDIT SUISSE LARGE CAP BLEND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2005
- --------------------------------------------------------------------------------
NOTE 7. FEDERAL INCOME TAXES
At December 31, 2005, the Fund reclassified $147,008 from undistributed
net investment income and $82,029 from paid in capital to accumulated net
realized loss from investments, to adjust for current year permanent book/tax
differences which arose principally from differing book/tax treatments of
dividend redesignations, distributions in excess, and capital loss carryforward
acquired from the merger with Credit Suisse Tax Efficient Fund. 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.
27
CREDIT SUISSE LARGE CAP BLEND FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
Credit Suisse Large Cap Blend Fund, Inc.:
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 Large Cap Blend Fund,
Inc. (the "Fund") at December 31, 2005, the results of its operations for the
year then ended, and the changes in its net assets and the financial highlights
for each of the years (or periods) presented, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the 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 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 December 31, 2005 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
February 6, 2006
28
CREDIT SUISSE LARGE CAP BLEND FUND
BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED)
- --------------------------------------------------------------------------------
In approving the Advisory Agreement, the Board of Directors, including the
Independent Directors, considered the following factors with respect to the
Large Cap Blend Fund (the "Fund"):
INVESTMENT ADVISORY FEE RATES
The Board reviewed and considered the contractual advisory fee rate of
0.75% for the Fund ("Contractual Advisory Fee"), which was reduced to 0.43%
after voluntary fee waivers and/or expense reimbursements ("Net Advisory Fee"),
in light of the extent and quality of the advisory services provided by Credit
Suisse Asset Management, LLC ("Credit Suisse"). The Board acknowledged that fee
waivers and expense reimbursements could be discontinued at any time.
Additionally, the Board received and considered information comparing the
Fund's Contractual Advisory Fee, Net Advisory Fee and the Fund's overall
expenses with those of funds in both the relevant expense group ("Expense
Group") and universe of funds (the "Expense Universe") provided by Lipper Inc.,
an independent provider of investment company data.
NATURE, EXTENT AND QUALITY OF THE SERVICES UNDER THE ADVISORY AGREEMENT
The Board received and considered information regarding the nature, extent
and quality of services provided to the Fund by Credit Suisse under the Advisory
Agreement. The Board also noted information received at regular meetings
throughout the year related to the services rendered by Credit Suisse. The Board
reviewed background information about Credit Suisse, including its Form ADV. The
Board considered the background and experience of Credit Suisse's senior
management and the expertise of, and the amount of attention given to the Fund
by, senior personnel of Credit Suisse. In addition, the Board reviewed the
qualifications, backgrounds and responsibilities of the portfolio management
team primarily responsible for the day-to-day portfolio management of the Fund
and the extent of the resources devoted to research and analysis of actual and
potential investments. The Board also received and considered information about
the nature, extent and quality of services and fee rates offered to other Credit
Suisse clients for comparable services.
FUND PERFORMANCE
The Board received and considered the one-, two-, three-, four- and
five-year performance of the Fund, along with comparisons, for all presented
periods, both to the relevant performance group ("Performance Group") and
universe of funds ("Performance Universe") for the Fund. The Board was provided
with
29
CREDIT SUISSE LARGE CAP BLEND FUND
BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
a description of the methodology used to arrive at the data for the funds
included in the Performance Group and the Performance Universe.
The Board reviewed information comparing the performance of various Credit
Suisse Funds to performance benchmarks that the Board had previously established
and progress that had been made in certain instances toward achieving those
benchmarks. The Board also reviewed comparisons between the Fund and its
identified benchmark over various time periods.
CREDIT SUISSE PROFITABILITY
The Board received and considered a profitability analysis of Credit
Suisse based on the fees payable under the Advisory Agreement for the Fund,
including other relationships between the Fund on the one hand and Credit Suisse
affiliates on the other. The Board received profitability information for the
other funds in the Credit Suisse family of funds.
ECONOMIES OF SCALE
The Board considered whether economies of scale in the provision of
services to the Fund were being passed along to the shareholders. Accordingly,
the Board considered whether alternative fee structures (such as breakpoint fee
structures) would be more appropriate or reasonable taking into consideration
economies of scale or other efficiencies that might accrue from increases in the
Fund's asset levels.
OTHER BENEFITS TO CREDIT SUISSE
The Board considered other benefits received by Credit Suisse and its
affiliates as a result of their relationships with the Fund. Such benefits
include, among others, research arrangements with brokers who execute
transactions on behalf of the Fund, administrative and brokerage relationships
with affiliates of Credit Suisse and benefits potentially derived from an
increase in Credit Suisse's businesses as a result of its relationship with the
Fund (such as the ability to market to shareholders other financial products
offered by Credit Suisse and its affiliates).
The Board considered the standards applied in seeking best execution,
whether and to what extent soft dollar credits are sought and how any such
credits are utilized, any benefits that may be achieved by using an affiliated
broker and the existence of quality controls applicable to brokerage allocation
procedures. The Board also reviewed Credit Suisse's method for allocating
portfolio investment opportunities among its advisory clients.
30
CREDIT SUISSE LARGE CAP BLEND FUND
BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
CONCLUSIONS
In selecting Credit Suisse, and approving the Advisory Agreement and the
investment advisory fee under such agreement, the Board concluded that:
o The Contractual Advisory Fee of 0.75% was slightly below the median
of 0.768% for its Expense Group and its Net Advisory Fee of 0.43%
was the lowest in its Expense Group. Thus, the fees were considered
reasonable.
o The Fund's performance for each period was in the fourth or fifth
quintile for its Performance Group. Its performance for the one-year
period was slightly below the median for its Performance Universe
and otherwise in the fourth or fifth quintile for the Performance
Universe. The Board noted that it had approved changes to the Fund's
investment strategies and portfolio managers that became effective
in August 2005, but that Credit Suisse had noted that the effect of
these changes was not reflected in the Lipper performance data. The
Board stated that it would continue to monitor steps undertaken by
Credit Suisse to improve performance.
o Aside from performance (as described above), the Board was satisfied
with the nature and extent of the investment advisory services
provided to the Fund by Credit Suisse and that, based on dialogue
with management and counsel, the services provided by Credit Suisse
under the Advisory Agreement is typical of, and consistent with,
those provided to similar mutual funds by other investment advisers.
The Board understood that Credit Suisse had or was in the process of
addressing any performance issues.
o In light of the costs of providing investment management and other
services to the Fund and Credit Suisse's ongoing commitment to the
Fund, the profits and other ancillary benefits that Credit Suisse
and its affiliates received were considered reasonable.
o Credit Suisse's profitability based on fees payable under the
Advisory Agreement was reasonable in light of the nature, extent and
quality of the services provided to the Fund thereunder.
o In light of the relatively small size of the Fund and the amount of
the Net Advisory Fees, the Fund's current fee structure (without
breakpoints) was considered reasonable.
No single factor reviewed by the Board was identified by the Board as the
principal factor in determining whether to approve the Advisory Agreement. The
Independent Directors were advised by separate independent legal counsel
throughout the process.
31
CREDIT SUISSE LARGE CAP BLEND FUND
INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
TERM
OF OFFICE 1 NUMBER OF
AND PORTFOLIOS IN OTHER
POSITION(S) LENGTH PRINCIPAL FUND COMPLEX DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN HELD BY
DATE OF BIRTH FUND SERVED PAST FIVE YEARS BY DIRECTOR DIRECTOR
- -------------------------- ----------- ---------- ------------------------- ------------- ------------------------
INDEPENDENT DIRECTORS
Enrique Arzac Director, Since Professor of Finance 47 Director of The
c/o Credit Suisse Asset Nominating 2005 and Economics, Adams Express
Management, LLC Committee Graduate School of Company
Attn: General Counsel Member Business, Columbia (a closed-end
466 Lexington Avenue and Audit University since 1971 investment company);
New York, New York Committee Director of Petroleum
10017-3140 Chairman and Resources
Corporation (a closed-
Date of Birth: 10/02/41 end investment
company)
Richard H. Francis Director, Since Currently retired 41 None
c/o Credit Suisse Asset Nominating 1999
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 2 Director, Since The Juan Trippe 40 Director of
Box 208200 Nominating Fund Professor in the Aetna, Inc.
New Haven, Connecticut and Audit Inception Practice of International (insurance company);
06520-8200 Committee Trade, Finance and Director of
Member Business from July CarMax Group
Date of Birth: 10/29/46 2005 to present; Partner (used car
and Chairman of Garten dealers)
Rothkopf (consulting
firm) from October 2005
to present; Dean of Yale
School of Management
from November 1995
to June 2005
Peter F. Krogh Director, Since Dean Emeritus and 40 Director
301 ICC 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 company)
from June 1995
to present
______________
1 Each Director and Officer serves until his or her respective successor has
been duly elected and qualified.
2 Mr. Garten was initially appointed as a Director of the Fund on February
6, 1998. He resigned as Director on February 3, 2000 and was subsequently
reappointed on December 21, 2000.
32
CREDIT SUISSE LARGE CAP BLEND FUND
INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TERM
OF OFFICE 1 NUMBER OF
AND PORTFOLIOS IN OTHER
NAME, ADDRESS AND POSITION(S) LENGTH PRINCIPAL FUND COMPLEX DIRECTORSHIPS
DATE OF BIRTH HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN HELD BY
FUND SERVED PAST FIVE YEARS BY DIRECTOR DIRECTOR
- -------------------------- ----------- ---------- ------------------------- ------------- ------------------------
INDEPENDENT DIRECTORS
James S. Pasman, Jr. Director, 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 Director Partner of Lehigh 46 Director of
Lehigh Court, LLC the Board of since Court, LLC and RZ Presstek, Inc.
40 East 52nd Street Directors, 1999 Capital (private (digital imaging
New York, New York Nominating and investment firms) technologies
10022 Committee Chairman from July 2002 to company); Director
Chairman since present; Transition of Wood Resources,
Date of Birth: 07/10/48 and Audit 2005 Adviser to SunGard LLC. (plywood
Committee Securities Finance, manufacturing
Member Inc. from February company)
2002 to July 2002;
President of SunGard
Securities Finance, Inc.
from 2001 to February
2002; President of
Loanet, Inc. (on-line
accounting service)
from 1997 to 2001
INTERESTED DIRECTORS
Michael E. Kenneally 3,4 Director Since Chairman and Global 40 None
c/o Credit Suisse Asset 2004 Chief Executive Officer
Management, LLC of Credit Suisse from
Attn: General Counsel March 2003 to July
466 Lexington Avenue 2005; Chairman and
New York, New York Chief Investment Officer
10017-3140 of Banc of America
Capital Management from
Date of Birth: 03/30/54 1998 to March 2003
________________
3 Mr. Kenneally is a Director who is an "interested person" of the Fund as
defined in the 1940 Act, because he was an officer of Credit Suisse within
the last two fiscal years.
4 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.
33
CREDIT SUISSE LARGE CAP BLEND FUND
INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TERM OF
OFFICE 1 AND
POSITION(S) LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- -------------------------- ----------- ---------- --------------------------------------------------------------
OFFICERS
Steven B. Plump 4 Chief Since Managing Director; Associated with Credit Suisse or its
Credit Suisse Asset Executive 2005 predecessor since 1995; Officer of other Credit Suisse Funds
Management, LLC Officer and
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 Credit Suisse;
Credit Suisse Asset Financial 1999 Associated with Credit Suisse or its predecessors 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 Credit Suisse;
Credit Suisse Asset Compliance 2004 Associated with Credit Suisse since July 2000; Vice President
Management, LLC Officer and Director of Compliance of Forstmann-Leff
466 Lexington Avenue Associates from 1998 to June 2000; Officer of other
New York, New York Credit Suisse Funds
10017-3140
Date of Birth: 09/21/66
Ajay Mehra Chief Since Director and Head of Legal Americas Traditional Asset
Credit Suisse Asset Legal 2004 Management and Hedge Funds; Associated with Credit Suisse
Management, LLC Officer since September 2004; Senior Associate of Shearman & Sterling
466 Lexington Avenue LLP from September 2000 to September 2004; Senior Counsel
New York, New York of the SEC Division of Investment Management from June
10017-3140 1997 to September 2000; Officer of other Credit Suisse Funds
Date of Birth: 08/14/70
J. Kevin Gao Vice Since Director and Legal Counsel of Credit Suisse; Associated with
Credit Suisse Asset President 2004 Credit Suisse since July 2003; Associated with the law firm of
Management, LLC and Willkie Farr & Gallagher LLP from 1998 to 2003; Officer of other
466 Lexington Avenue Secretary Credit Suisse Funds
New York, New York
10017-3140
Date of Birth: 10/13/67
Robert Rizza Assistant Since Vice President of Credit Suisse; Associated with Credit Suisse
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
______________
4 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 Directors and is available, without charge, upon request, by calling
800-927-2874.
34
CREDIT SUISSE LARGE CAP BLEND FUND
TAX INFORMATION LETTER
December 31, 2005 (unaudited)
- --------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS
Corporate Shareholders should note for the year ended December 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 100.00%.
For the fiscal year ended December 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 December 31, 2005, the Fund designated
approximately $332,050, 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. Complete information will be reported in conjunction
with Form 1099-DIV.
IMPORTANT TAX INFORMATION FOR SHAREHOLDERS
During the year ended December 31, 2005, the Fund declared $2,391,972 in
dividends that were designated as 20% long-term capital gains dividends.
35
CREDIT SUISSE LARGE CAP BLEND 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 Portfolio's website, www.credit-suisse.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.
36
CREDIT SUISSE [LOGO]
P.O. BOX 55030, BOSTON, MA 02205-5030
800-927-2874 o www.credit-suisse.com/us
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. LCB-AR-1205
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 December 31, 2005. There were no waivers or implicit waivers from the
code granted by the registrant during the fiscal year ended December 31, 2005.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's governing board has determined that it has three audit
committee financial experts serving on its audit committee: Enrique R. Arzac,
Richard H. Francis 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 December 31, 2004
and December 31, 2005.
- ---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
- ---------------------------------------- -------------------------------------- --------------------------------------
Audit Fees $6,580 $15,630
- ---------------------------------------- -------------------------------------- --------------------------------------
Audit-Related Fees(1) $1,500 $3,150
- ---------------------------------------- -------------------------------------- --------------------------------------
Tax Fees(2) $1,327 $2,443
- ---------------------------------------- -------------------------------------- --------------------------------------
All Other Fees -- --
- ---------------------------------------- -------------------------------------- --------------------------------------
Total $9,407 $21,223
- ---------------------------------------- -------------------------------------- --------------------------------------
(1) Services include agreed-upon procedures in connection with the
registrant's third quarter 2004 Form N-Q filing ($1,500) and the
registrant's semi-annual financial statements ($3,150) for 2005.
(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 ("Credit Suisse"), and any service provider
to the registrant controlling, controlled by or under common control with Credit
Suisse that provided ongoing services to the registrant ("Covered Services
Provider"), for the registrant's fiscal years ended December 31, 2004 and
December 31, 2005.
- ---------------------------------------- -------------------------------------- --------------------------------------
2004 2005
- ---------------------------------------- -------------------------------------- --------------------------------------
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 Credit
Suisse 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 Credit Suisse 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, Credit Suisse 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
- ---------------------------------------- -------------------------------------- --------------------------------------
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 Credit
Suisse 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
December 31, 2004 and December 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, Credit Suisse and Covered Service Providers for the fiscal years
ended December 31, 2004 and December 31, 2005 were $2,827 and $5,593,
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.
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 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.
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 LARGE CAP BLEND FUND, INC.
/s/ Steven B. Plump
-------------------
Name: Steven B. Plump
Title: Chief Executive Officer
Date: March 8, 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: March 8, 2006
/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: March 8, 2006