<Page>
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. 811-08917
-----------------------------------------------------
CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND, INC.
----------------------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
---------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Hal Liebes, Esq.
Credit Suisse Institutional Fixed Income 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: August 31, 2003
Date of reporting period: September 1, 2002 to August 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
CREDIT SUISSE INSTITUTIONAL FUNDS
[CREDIT SUISSE ASSET MANAGEMENT LOGO]
FIXED INCOME FUND
HIGH YIELD FUND
AUGUST 31, 2003 ANNUAL REPORT
MORE COMPLETE INFORMATION ABOUT THE FUNDS, INCLUDING CHARGES AND EXPENSES, IS
PROVIDED IN THE PROSPECTUS, WHICH MUST PRECEDE OR ACCOMPANY THIS DOCUMENT AND
WHICH SHOULD BE READ CAREFULLY BEFORE INVESTING. INSTITUTIONAL SHAREHOLDERS MAY
OBTAIN ADDITIONAL COPIES BY CALLING 800-222-8977 OR BY WRITING TO CREDIT SUISSE
INSTITUTIONAL FUNDS, P.O. BOX 8500, BOSTON, MA 02266-8500.
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR, IS LOCATED AT 466
LEXINGTON AVE., NEW YORK, NY 10017-3140. CREDIT SUISSE INSTITUTIONAL FUNDS ARE
ADVISED BY CREDIT SUISSE ASSET MANAGEMENT, LLC.
<Page>
THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE SOME FEES AND/OR
REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE LOWER. WAIVERS
AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL
GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. RETURNS AND SHARE PRICE
WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND FUND
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF AUGUST 31, 2003; THESE VIEWS AND
FUND HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS
DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE.
<Page>
CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT
September 19, 2003
Dear Shareholder:
We are writing to report on the results of the Credit Suisse Institutional Fixed
Income Fund(1) (the "Fund") for the fiscal year ended August 31, 2003.
At August 31, 2003, the net asset value ("NAV") per share of the Fund's shares
was $14.27, compared to an NAV per share of $14.12 on August 31, 2002. Assuming
the reinvestment of distributions totaling $0.87251 per share, the Fund's total
return was 7.40%. By comparison, the Lehman Brothers U.S. Aggregate Bond
Index(2) returned 4.36% during the same period.
The investment environment for fixed income was favorable throughout most of the
fiscal year, in two key ways. First, monetary policy was accommodative, so much
so that perhaps the key influence on trading activity was the widespread
perception that interest rates (which were already historically low) were likely
to continue to decline. The Federal Reserve cut its benchmark fed funds rate
twice in the period, by a total of 75 bps, to 1.00%, the lowest such level since
1958. The Fed additionally helped to fuel the perception that rates would fall
further via highly publicized comments regarding its concerns about deflation.
Second, falling rates helped to incentivize investors to look for comparatively
higher yields. This, in turn, meant that riskier debt sectors performed best,
whether in absolute or relative terms. Returns were thus highest among
lower-quality corporate bonds -- both high yield and in the lower tiers of
investment-grade credits -- and longer-maturity instruments more broadly. [Note:
heartier risk appetite tended to work in favor of our general approach of
emphasizing spread product (I.E., debt securities whose valuations are based on
the difference, or "spread," between their yields and those of
comparable-maturity Treasury debt) at the expense of Treasury securities.]
The Fund meaningfully outperformed its Lehman benchmark as a result of the
collective impact of several aspects of our strategy. The most successful of
these included:
- - We maintained exposure to non-benchmark sectors that greatly outperformed
investment-grade securities. Specifically, these were high yield corporates
and, to a lesser extent, emerging market debt. Our risk management
discipline prompted us to gradually reduce exposure to each of these
sectors in the second half of the fiscal year, as we felt that their price
gains would limit their potential for additional outperformance.
- - We enjoyed good security selection in securitized debt. This was especially
true in mortgage-backed securities, in which we focused on the
identification of areas of the mortgage market with pricing anomalies that
we considered sizeable (E.G., newly issued mortgage pools and pools with
low loan balances).
- - We enjoyed good relative performance in investment-grade corporates, in
which the avoidance of poor-performing issues proved just as important as
the ownership of strong performers. Our preferences were for comparatively
lower-quality credits within sectors such as telecommunications and
consumer durables, and we maintained wide diversification in terms of the
number of individual issuers whose bonds we owned.
- - We briefly held a small allocation to inflation-linked Treasury bonds
(known as TIPS, or Treasury Inflation-Protected Securities), which we felt
offered attractive valuations as well as the potential for capital
appreciation if perceived or actual inflation should rise. Our analysis at
the time proved on target, as nominal inflation moved higher and TIPS
prices gained accordingly.
- - In the second half of the fiscal year we held a small currency allocation
to euros, which appreciated substantially versus the U.S. dollar. We also
owned some German government bonds that outperformed their U.S.
counterparts.
The most negative contributions to the Fund's overall return were fairly modest
and came from two underweightings. These were in government agency issues and,
within our corporate allocation, banks and other financial companies, which
significantly outperformed the benchmark as a whole.
Sincerely yours,
Credit Suisse Fixed Income Management Team
Jo Ann Corkran, Managing Director and Co-Portfolio Manager
Leland E. Crabbe, Director and Co-Portfolio Manager
Suzanne E. Moran, Director and Co-Portfolio Manager
David N. Fisher, Vice President and Co-Portfolio Manager
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.
3
<Page>
COMPARISON OF CHANGE IN VALUE OF $3 MILLION INVESTMENT IN THE CREDIT SUISSE
INSTITUTIONAL FIXED INCOME FUND(1) AND THE LEHMAN BROTHERS U.S. AGGREGATE BOND
INDEX(2) FROM INCEPTION (3/31/94). (UNAUDITED)
[CHART]
<Table>
<Caption>
CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND(1) $5,397,000 LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX(2) $5,872,389
Mar-94 $ 3,000,000 $ 3,000,000
Apr-94 $ 2,966,000 $ 2,976,000
May-94 $ 2,974,000 $ 2,975,702
Jun-94 $ 2,946,000 $ 2,969,156
Jul-94 $ 2,992,794 $ 3,028,242
Aug-94 $ 3,005,001 $ 3,031,876
Sep-94 $ 2,961,948 $ 2,987,307
Oct-94 $ 2,949,590 $ 2,984,619
Nov-94 $ 2,943,410 $ 2,978,053
Dec-94 $ 2,951,958 $ 2,998,601
Jan-95 $ 2,998,181 $ 3,057,973
Feb-95 $ 3,061,212 $ 3,130,753
Mar-95 $ 3,088,700 $ 3,149,851
Apr-95 $ 3,131,303 $ 3,193,949
May-95 $ 3,259,111 $ 3,317,555
Jun-95 $ 3,282,568 $ 3,341,773
Jul-95 $ 3,280,413 $ 3,335,089
Aug-95 $ 3,323,519 $ 3,375,444
Sep-95 $ 3,354,806 $ 3,408,186
Oct-95 $ 3,396,413 $ 3,452,492
Nov-95 $ 3,442,399 $ 3,504,279
Dec-95 $ 3,490,679 $ 3,553,339
Jan-96 $ 3,526,851 $ 3,576,791
Feb-96 $ 3,477,114 $ 3,514,555
Mar-96 $ 3,450,670 $ 3,489,953
Apr-96 $ 3,439,236 $ 3,470,410
May-96 $ 3,439,236 $ 3,463,469
Jun-96 $ 3,478,678 $ 3,509,879
Jul-96 $ 3,494,934 $ 3,519,356
Aug-96 $ 3,497,256 $ 3,513,373
Sep-96 $ 3,559,041 $ 3,574,506
Oct-96 $ 3,634,664 $ 3,653,860
Nov-96 $ 3,698,472 $ 3,716,341
Dec-96 $ 3,680,026 $ 3,681,779
Jan-97 $ 3,699,433 $ 3,693,192
Feb-97 $ 3,726,117 $ 3,702,425
Mar-97 $ 3,688,958 $ 3,661,328
Apr-97 $ 3,728,280 $ 3,716,248
May-97 $ 3,770,061 $ 3,751,553
Jun-97 $ 3,820,619 $ 3,796,196
Jul-97 $ 3,920,309 $ 3,898,693
Aug-97 $ 3,900,371 $ 3,865,554
Sep-97 $ 3,955,277 $ 3,922,765
Oct-97 $ 3,978,052 $ 3,979,645
Nov-97 $ 3,998,297 $ 3,997,951
Dec-97 $ 4,035,589 $ 4,038,330
Jan-98 $ 4,090,441 $ 4,090,021
Feb-98 $ 4,100,890 $ 4,086,749
Mar-98 $ 4,127,243 $ 4,100,644
Apr-98 $ 4,143,086 $ 4,121,967
May-98 $ 4,169,492 $ 4,161,126
Jun-98 $ 4,195,336 $ 4,196,496
Jul-98 $ 4,214,054 $ 4,205,308
Aug-98 $ 4,203,358 $ 4,273,855
Sep-98 $ 4,265,481 $ 4,373,863
Oct-98 $ 4,249,222 $ 4,350,681
Nov-98 $ 4,314,261 $ 4,375,480
Dec-98 $ 4,333,528 $ 4,388,607
Jan-99 $ 4,367,013 $ 4,419,766
Feb-99 $ 4,305,624 $ 4,342,420
Mar-99 $ 4,349,517 $ 4,366,303
Apr-99 $ 4,394,648 $ 4,380,275
May-99 $ 4,346,696 $ 4,341,729
Jun-99 $ 4,331,583 $ 4,327,836
Jul-99 $ 4,314,383 $ 4,309,659
Aug-99 $ 4,302,916 $ 4,307,504
Sep-99 $ 4,347,613 $ 4,357,471
Oct-99 $ 4,368,011 $ 4,373,593
Nov-99 $ 4,391,322 $ 4,373,156
Dec-99 $ 4,381,702 $ 4,352,165
Jan-00 $ 4,369,787 $ 4,337,803
Feb-00 $ 4,426,383 $ 4,390,290
Mar-00 $ 4,464,629 $ 4,448,242
Apr-00 $ 4,404,297 $ 4,435,342
May-00 $ 4,392,230 $ 4,433,124
Jun-00 $ 4,496,817 $ 4,525,333
Jul-00 $ 4,527,449 $ 4,566,514
Aug-00 $ 4,579,524 $ 4,632,728
Sep-00 $ 4,607,461 $ 4,661,915
Oct-00 $ 4,610,568 $ 4,692,683
Nov-00 $ 4,647,850 $ 4,769,643
Dec-00 $ 4,761,083 $ 4,858,359
Jan-01 $ 4,922,315 $ 4,937,550
Feb-01 $ 4,941,284 $ 4,980,507
Mar-01 $ 4,955,257 $ 5,005,409
Apr-01 $ 4,955,257 $ 4,984,386
May-01 $ 5,009,887 $ 5,014,492
Jun-01 $ 5,015,350 $ 5,033,547
Jul-01 $ 5,113,690 $ 5,146,299
Aug-01 $ 5,175,972 $ 5,205,481
Sep-01 $ 5,155,878 $ 5,265,865
Oct-01 $ 5,232,237 $ 5,375,921
Nov-01 $ 5,182,438 $ 5,301,733
Dec-01 $ 5,142,779 $ 5,267,802
Jan-02 $ 5,163,572 $ 5,310,472
Feb-02 $ 5,170,503 $ 5,361,983
Mar-02 $ 5,115,679 $ 5,272,974
Apr-02 $ 5,168,310 $ 5,375,270
May-02 $ 5,182,344 $ 5,420,960
Jun-02 $ 5,046,382 $ 5,468,122
Jul-02 $ 4,928,942 $ 5,534,286
Aug-02 $ 5,025,030 $ 5,627,816
Sep-02 $ 5,044,987 $ 5,718,986
Oct-02 $ 5,041,371 $ 5,692,679
Nov-02 $ 5,113,700 $ 5,690,971
Dec-02 $ 5,233,572 $ 5,808,774
Jan-03 $ 5,266,931 $ 5,814,002
Feb-03 $ 5,348,474 $ 5,894,236
Mar-03 $ 5,365,753 $ 5,889,520
Apr-03 $ 5,436,650 $ 5,938,403
May-03 $ 5,533,666 $ 6,048,857
Jun-03 $ 5,529,319 $ 6,036,844
Jul-03 $ 5,347,782 $ 5,833,886
Aug-03 $ 5,397,000 $ 5,872,389
</Table>
Past performance is not predictive of future performance. Investment return and
principal value of an investment will fluctuate so that an investor's shares
upon redemption may be worth more or less than their 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.
AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2003(1)
<Table>
<Caption>
ONE YEAR THREE YEAR FIVE YEAR SINCE INCEPTION
-------- ---------- --------- ---------------
7.40% 5.63% 5.13% 6.43%
</Table>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003(1)
<Table>
<Caption>
ONE YEAR THREE YEAR FIVE YEAR SINCE INCEPTION
-------- ---------- --------- ---------------
9.87% 6.36% 5.38% 6.67%
</Table>
(1) Fee waivers and/or expense reimbursements reduced expenses for the Fund,
without which performance would be lower. Waivers and/or reimbursements may
be discontinued at any time.
(2) The Lehman Brothers U.S. Aggregate Bond Index is composed of the Lehman
Brothers Government/Corporate Bond Index and the Lehman Brothers
Mortgage-Backed Securities Index. The Lehman Brothers U.S. Aggregate Bond
Index includes U.S. Treasury and agency issues, corporate bond issues and
mortgage-backed securities rated investment-grade or higher by Moody's
Investors Service, Standard & Poor's Corporation, or Fitch Investors'
Service. Investors cannot invest directly in an index.
4
<Page>
SCHEDULE OF INVESTMENTS
AUGUST 31, 2003
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ------- --------------
CORPORATE BONDS (37.9%)
AEROSPACE & DEFENSE (1.0%)
$ 585 Lockheed Martin Corp., Bonds (BBB , Baa2) 12/01/29 8.500 $ 745,017
120 Raytheon Co., Global Notes (BBB- , Baa3) 03/01/06 8.200 134,941
185 Raytheon Co., Notes (BBB- , Baa3) 08/15/07 6.750 205,323
121 Sequa Corp., Senior Notes (BB- , B1) 08/01/09 9.000 127,128
175 Sequa Corp., Series B, Senior Notes (BB- , B1) 04/01/08 8.875 182,875
--------------
1,395,284
--------------
AGRICULTURE (0.4%)
475 Cargill, Inc., Rule 144A, Notes++ (A+ , A1) 05/01/06 6.250 517,210
--------------
APPAREL (0.1%)
240 Levi Strauss & Co., Notes (BB- , B3) 11/01/06 7.000 210,600
--------------
AUTOMOBILE MANUFACTURERS (0.2%)
250 Ford Motor Co., Global Notes (BBB , Baa1) 07/16/31 7.450 222,718
95 General Motors Corp., Global Debenture (BBB , Baa1) 07/15/33 8.375 94,153
--------------
316,871
--------------
AUTOMOBILE PARTS & EQUIPMENT (0.1%)
30 Collins & Aikman Products Corp., Company
Guaranteed Notes
(Callable 04/15/04 @ $100.00)~ (B- , B3) 04/15/06 11.500 22,800
150 Metaldyne Corp., Global Company
Guaranteed Notes
(Callable 06/15/07 @ $105.50) (B , Caa1) 06/15/12 11.000 131,250
--------------
154,050
--------------
BUILDING MATERIALS (0.4%)
195 American Standard Inc., Company
Guaranteed Notes (BB+ , Ba2) 02/01/08 7.375 210,600
100 Dayton Superior Corp., Company
Guaranteed Notes
(Callable 06/15/07 @ $102.17) (B- , Caa2) 06/15/09 13.000 86,500
260 Nortek, Inc., Series B, Global
Senior Subordinated Notes
(Callable 06/15/06 @ $104.94) (B- , B3) 06/15/11 9.875 273,000
--------------
570,100
--------------
CHEMICALS (0.1%)
155 Applied Extrusion Technologies, Inc.,
Series B, Company Guaranteed Notes
(Callable 07/01/06 @ $105.38) (B , Caa1) 07/01/11 10.750 103,850
100 Scotts Co., Company Guaranteed Notes
(Callable 01/15/04 @ $104.31) (B+ , Ba3) 01/15/09 8.625 105,250
--------------
209,100
--------------
COMMERCIAL SERVICES (0.2%)
120 Iron Mountain, Inc., Company Guaranteed Notes
(Callable 04/01/06 @ $104.31) (B , B2) 04/01/13 8.625 125,400
215 La Petite Academy, Inc./LPA Holdings, Series B,
Company Guaranteed Notes
(Callable 05/15/04 @ $103.33) (CC , Ca) 05/15/08 10.000 130,075
--------------
255,475
--------------
</Table>
See Accompanying Notes to Financial Statements.
5
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ------ --------------
COMPUTERS (0.0%)
$ 238 DIVA Systems Corp., Series B,
Senior Discount Notes
(Callable 03/01/04 @ $104.20)@@ (NR , NR) 03/01/08 12.625% $ 17,850
--------------
COSMETICS/PERSONAL CARE (0.3%)
325 Armkel LLC, Global Senior Subordinated Notes
(Callable 08/15/05 @ $104.75) (B , B2) 08/15/09 9.500 357,500
--------------
DIVERSIFIED FINANCIALS (10.2%)
1,515 American International Group, Inc.,
Rule 144A, Notes++ (AAA , Aaa) 05/15/13 4.250 1,409,271
775 Bear Stearns Companies, Inc., Global Notes (A , A2) 07/02/08 2.875 733,474
255 Chukchansi Economic Development Authority,
Rule 144A, Senior Notes
(Callable 10/01/06 @ $113.00)++ (NR , NR) 06/15/09 14.500 314,287
245 Countrywide Home Loan, Inc., Global
Company Guaranteed Notes (A , A3) 06/15/04 6.850 255,258
435 Countrywide Home Loan, Inc., Global Notes (A , A3) 12/19/07 4.250 439,550
390 Countrywide Home Loan, Inc., Global Notes (A , A3) 05/21/08 3.250 372,753
255 Erac USA Finance Co., Rule 144A, Notes++ (BBB+ , Baa1) 05/15/06 6.625 275,653
525 FMR Corp., Rule 144A, Notes++ (AA , Aa3) 03/01/13 4.750 510,058
1,295 Ford Motor Credit Co., Global Bonds (BBB , A3) 02/01/11 7.375 1,320,067
1,020 Ford Motor Credit Co., Global Notes (BBB , A3) 02/01/06 6.875 1,071,886
945 General Electric Capital Corp., Series MTNA,
Global Notes (AAA , Aaa) 06/15/12 6.000 999,415
925 General Motors Acceptance Corp.,
Global Bonds (BBB , A3) 11/01/31 8.000 892,358
485 Goldman Sachs Group, Inc., Global Notes (A+ , Aa3) 01/15/08 4.125 488,293
855 Goldman Sachs Group, Inc., Global Notes (A+ , Aa3) 04/01/13 5.250 844,331
545 Household Finance Corp., Global Notes (A , A1) 01/30/07 5.750 583,794
345 Household Finance Corp., Global Notes (A , A1) 07/15/10 8.000 404,544
530 Merrill Lynch & Company, Inc.,
Series MTNB, Notes (A+ , Aa3) 07/15/08 3.125 509,776
825 Morgan Stanley, Global Notes (A+ , Aa3) 03/01/13 5.300 815,590
200 PCA LLC/PCA Finance Corp.,
Global Senior Notes (B- , B3) 08/01/09 11.875 218,000
565 Textron, Inc., Senior Notes (A- , A3) 08/01/10 4.500 550,660
380 Verizon Global Funding Corp., Global Notes (A+ , A2) 06/15/12 6.875 419,468
830 Verizon Global Funding Corp., Global Notes (A+ , A2) 12/01/30 7.750 956,010
--------------
14,384,496
--------------
ELECTRIC (4.9%)
100 AES Corp., Rule 144A, Secured Notes
(Callable 5/15/08 @ $104.50)++ (B+ , B2) 05/15/15 9.000 102,000
510 American Electric Power Company, Inc.,
Series A, Global Notes (BBB , Baa3) 05/15/06 6.125 547,297
820 Cilcorp, Inc., Bonds (BBB+ , Baa2) 10/15/29 9.375 1,052,315
510 Cincinnati Gas & Electric Co., Notes (BBB , Baa1) 09/15/12 5.700 523,156
115 CMS Energy Corp., Senior Notes~ (B+ , B3) 01/15/09 7.500 110,544
785 Consolidated Edison Company
of New York, Debentures (A , A1) 02/01/13 4.875 769,944
200 Constellation Energy Group Inc., Notes (BBB+ , Baa1) 04/01/07 6.350 215,504
240 Constellation Energy Group Inc., Notes (BBB+ , Baa1) 04/01/12 7.000 263,048
415 Dominion Resources, Inc., Series B,
Global Senior Notes (BBB+ , Baa1) 07/15/05 7.625 453,009
185 Energy East Corp., Notes (BBB , Baa2) 06/15/12 6.750 199,167
</Table>
See Accompanying Notes to Financial Statements.
6
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ------ --------------
ELECTRIC -- (CONTINUED)
$ 319 FPL Group Capital, Inc., Company
Guaranteed Notes (A- , A2) 09/15/06 7.625 $ 360,620
380 FPL Group Capital, Inc., Notes (A- , A2) 04/11/06 3.250 382,373
210 Ohio Edison Co., Rule 144A,
Senior Notes++ (BBB- , Baa2) 05/01/08 4.000 200,364
490 Oncor Electric Delivery Co.,
Global Secured Notes (BBB , Baa1) 05/01/32 7.000 521,273
380 Progress Energy, Inc., Senior Notes (BBB- , Baa2) 03/01/06 6.750 412,326
320 PSE&G Power LLC, Global Company
Guaranteed Notes (BBB , Baa1) 06/01/12 6.950 346,194
345 Public Service Company of Colorado,
Global Collateral Trust (BBB+ , Baa1) 10/01/12 7.875 405,769
--------------
6,864,903
--------------
ELECTRICAL COMPONENTS & EQUIPMENT (0.1%)
100 Motors & Gears, Inc., Series D, Senior Notes
(Callable 11/15/03 @ $101.79) (CCC+ , Caa1) 11/15/06 10.750 87,000
--------------
ELECTRONICS (0.1%)
155 Sanmina-SCI Corp., Global Company
Guaranteed Notes
(Callable 01/15/07 @ $105.19) (BB- , Ba2) 01/15/10 10.375 177,475
--------------
ENTERTAINMENT (0.8%)
100 Argosy Gaming Co., Company
Guaranteed Notes
(Callable 06/01/04 @ $105.38) (B+ , B2) 06/01/09 10.750 109,750
285 Horseshoe Gaming Holdings Corp.,
Series B, Company Guaranteed Notes
(Callable 05/15/04 @ $104.31) (B+ , B2) 05/15/09 8.625 301,387
155 Intrawest Corp., Global Company
Guaranteed Notes
(Callable 02/01/05 @ $105.25) (B+ , B1) 02/01/10 10.500 167,400
100 Isle of Capri Casinos, Inc., Company
Guaranteed Notes
(Callable 04/15/04 @ $104.38) (B , B2) 04/15/09 8.750 106,500
145 Kerzner International, Ltd.,
Global Company Guaranteed Notes
(Callable 08/15/06 @ $104.44) (B+ , B2) 08/15/11 8.875 156,962
85 Mohegan Tribal Gaming,
Global Senior Subordinated Notes
(Callable 07/01/06 @ $104.19) (BB- , Ba3) 07/01/11 8.375 92,013
185 Penn National Gaming, Inc.,
Company Guaranteed Notes
(Callable 03/15/06 @ $104.44) (B- , B3) 03/15/10 8.875 199,800
--------------
1,133,812
--------------
ENVIRONMENTAL CONTROL (0.7%)
100 Allied Waste North America,
Series B, Company Guaranteed Notes
(Callable 01/01/04 @ $103.94) (BB- , Ba3) 01/01/09 7.875 102,875
350 Waste Management, Inc.,
Global Company Guaranteed Notes (BBB , Baa3) 05/15/32 7.750 396,276
</Table>
See Accompanying Notes to Financial Statements.
7
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ------ --------------
ENVIRONMENTAL CONTROL -- (CONTINUED)
$ 125 Waste Management, Inc., Notes (BBB , Baa3) 04/30/04 8.000 $ 129,673
375 Waste Management, Inc., Senior Notes (BBB , Baa3) 08/01/10 7.375 421,702
--------------
1,050,526
--------------
FOOD (2.3%)
390 ConAgra Foods, Inc., Notes (BBB+ , Baa1) 09/15/11 6.750 431,285
335 ConAgra Foods, Inc., Notes (BBB+ , Baa1) 09/15/30 8.250 411,417
5 Fleming Companies, Inc.,
Global Company Guaranteed Notes
(Callable 04/01/05 @ $105.06)@@ (NR , NR) 04/01/08 10.125 625
575 General Mills, Inc., Global Notes (BBB+ , Baa2) 02/15/12 6.000 608,320
310 Kellogg Co., Global Senior Notes (BBB , Baa2) 06/01/08 2.875 296,161
555 Kellogg Co., Series B, Global Notes (BBB , Baa2) 04/01/11 6.600 616,078
280 Land O' Lakes, Inc.,
Global Senior Notes
(Callable 11/15/06 @ $104.38) (B+ , B2) 11/15/11 8.750 226,100
70 Premier International Foods PLC,
Yankee Senior Notes
(Callable 09/01/04 @ $106.00) (B- , B3) 09/01/09 12.000 77,000
550 Sara Lee Corp., Notes (A+ , A3) 06/15/13 3.875 497,195
120 Stater Brothers Holdings, Inc., Senior Notes
(Callable 8/15/04 @ $102.6875) (B- , B2) 08/15/06 10.750 126,900
--------------
3,291,081
--------------
FOREST PRODUCTS, PAPER (0.1%)
105 Appleton Papers, Inc., Series B,
Global Company Guaranteed Notes
(Callable 12/15/05 @ $106.25) (B+ , B3) 12/15/08 12.500 114,450
--------------
HEALTHCARE PRODUCTS (0.4%)
550 Baxter International, Inc., Notes (A , A3) 05/01/07 5.250 581,495
--------------
HEALTHCARE SERVICES (0.2%)
100 Extendicare Health Services, Inc.,
Company Guaranteed Notes
(Callable 12/15/03 @ $103.12) (CCC+ , B3) 12/15/07 9.350 103,000
248 Genesis Health Ventures Inc., Secured Notes# (B , B1) 04/02/07 6.114 246,262
--------------
349,262
--------------
HOLDING COMPANIES - DIVERSIFIED (0.1%)
100 Werner Holding Company, Inc.,
Series A, Company Guaranteed Notes
(Callable 11/15/03 @ $103.33) (B- , B2) 11/15/07 10.000 102,000
--------------
HOME BUILDERS (0.3%)
175 KB Home, Senior Subordinated Notes
(Callable 02/15/06 @ $104.75) (BB- , Ba3) 02/15/11 9.500 188,125
170 Ryland Group, Senior Notes
(Callable 09/01/05 @ $104.88) (BB+ , Ba1) 09/01/10 9.750 189,550
--------------
377,675
--------------
INSURANCE (0.4%)
595 MetLife Inc., Debentures (A , A2) 05/15/05 3.911 613,026
--------------
INTERNET SOFTWARE & SERVICES (0.2%)
300 Thomson Corp., Global Notes (A- , A3) 01/05/12 6.200 322,706
--------------
</Table>
See Accompanying Notes to Financial Statements.
8
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ------ --------------
IRON & STEEL (0.1%)
$ 220 AK Steel Corp., Company Guaranteed Notes
(Callable 02/15/04 @ $103.94)~ (B+ , B2) 02/15/09 7.875 $ 174,900
--------------
LEISURE TIME (0.2%)
100 Hard Rock Hotel, Inc., Rule 144A, Notes
(Callable 06/01/08 @ 104.44)++ (B , B3) 06/01/13 8.875 103,500
100 Hockey Co./Sports Maska, Inc., Global Units
(Callable 04/15/06 @ $105.63) (B , B2) 04/15/09 11.250 113,500
--------------
217,000
--------------
LODGING (1.3%)
60 Ameristar Casinos, Inc., Global Company
Guaranteed Notes
(Callable 02/15/06 @ $105.38) (B , B3) 02/15/09 10.750 67,200
110 Aztar Corp., Senior Subordinated Notes
(Callable 05/15/04 @ $102.96) (B+ , Ba3) 05/15/07 8.875 115,775
270 Majestic Investor Holdings, Company
Guaranteed Notes
(Callable 11/30/05 @ $105.83) (B , B2) 11/30/07 11.653 284,850
155 MGM Mirage, Inc., Company Guaranteed Notes (BB+ , Ba2) 06/01/07 9.750 173,600
250 Prime Hospitality Corp., Series B,
Global Senior Subordinated Notes
(Callable 05/01/07 @ $104.19) (B , B2) 05/01/12 8.375 242,500
255 Riviera Holdings Corp., Global Company
Guaranteed Notes
(Callable 06/15/06 @ $105.50) (B , B2) 06/15/10 11.000 249,900
150 Station Casinos, Inc., Senior Subordinated Notes
(Callable 07/01/05 @ $103.70) (B+ , B2) 07/01/10 9.875 165,750
780 Windsor Woodmont Black Hawk,
Series B, First Mortgage
(Callable 03/15/04 @ $104.33)@@ (NR , NR) 03/15/05 13.000 511,875
--------------
1,811,450
--------------
MEDIA (2.1%)
470 AOL Time Warner, Inc., Global Company
Guaranteed Notes (BBB+ , Baa1) 04/15/31 7.625 510,697
100 Clear Channel Communications, Company
Guaranteed Notes (BBB- , Ba1) 11/01/08 8.000 114,000
135 Coaxial Communications/Phoenix, Company
Guaranteed Notes
(Callable 08/15/04 @ $101.667) (B , B3) 08/15/06 10.000 141,244
710 Comcast Cable Communications, Inc., Senior Notes~ (BBB , Baa3) 01/30/11 6.750 772,610
250 CSC Holdings, Inc., Series B, Senior Notes (BB- , B1) 04/01/11 7.625 251,250
100 Mediacom LLC/Capital Corp., Senior Notes
(Callable 01/15/06 @ $104.75) (B+ , B2) 01/15/13 9.500 101,500
280 News America Holdings, Inc., Company
Guaranteed Notes (BBB- , Baa3) 02/01/13 9.250 353,612
515 News America Holdings, Inc., Debentures (BBB- , Baa3) 08/10/18 8.250 612,201
100 Northland Cable Television, Company
Guaranteed Notes (Callable 11/15/03 @ $103.42) (CC , Caa3) 11/15/07 10.250 96,500
50 Rogers Cable, Inc., Rule 144A, Notes++ (BBB- , Ba2) 06/15/13 6.250 47,187
20 Young Broadcasting, Inc., Global Company
Guaranteed Notes
(Callable 03/01/06 @ $105.00) (CCC+ , Caa1) 03/01/11 10.000 21,600
--------------
3,022,401
--------------
</Table>
See Accompanying Notes to Financial Statements.
9
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ------ --------------
METAL FABRICATE/HARDWARE (0.1%)
$ 100 Jarden Corp., Global Company
Guaranteed Notes
(Callable 05/01/07 @ $104.88) (B- , B2) 05/01/12 9.750 $ 104,000
--------------
MISCELLANEOUS MANUFACTURING (0.5%)
100 Building Materials Corp., Company
Guaranteed Notes (B , B2) 12/01/08 8.000 94,750
535 Norsk Hydro A/S, Yankee Debentures (A , A2) 06/15/23 7.750 632,316
--------------
727,066
--------------
OIL & GAS (1.8%)
100 Chesapeake Energy Corp., Global Company
Guaranteed Notes
(Callable 04/01/06 @ $104.06) (BB- , Ba3) 04/01/11 8.125 105,000
385 Enterprise Products Partners LP, Company
Guaranteed Notes (BBB , Baa2) 02/01/11 7.500 436,269
270 Forest Oil Corp., Global Company
Guaranteed Notes
(Callable 05/01/07 @ $103.88) (BB , Ba3) 05/01/14 7.750 266,625
515 KeySpan Corp., Senior Notes (A , A3) 11/15/30 8.000 646,717
85 Magnum Hunter Resources, Inc., Company
Guaranteed Notes
(Callable 06/01/04 @ $101.67) (B+ , B2) 06/01/07 10.000 88,188
100 Parker Drilling Co., Series B, Company
Guaranteed Notes
(Callable 11/15/04 @ $105.06)~ (B+ , B2) 11/15/09 10.125 98,750
520 Sempra Energy, Notes (A- , Baa1) 12/01/05 6.950 565,832
270 Southwest Royalties, Inc., Company
Guaranteed, Notes
(Callable 10/8/03 @ $100.00)# (NR , NR) 06/30/04 11.500 270,675
--------------
2,478,056
--------------
PACKAGING & CONTAINERS (0.8%)
550 Crown Packaging, Ltd., Yankee
Senior Discount Notes
(Callable 8/1/04 @ $101.00)@@ (NR , NR) 08/01/06 14.000 55
160 Four M Corp., Series B, Senior Notes
(Callable 06/01/04 @ $100.00) (B , B3) 06/01/06 12.000 160,800
100 Owens-Brockway Glass Containers,
Global Company Guaranteed Notes
(Callable 02/15/06 @ $104.44) (BB , B1) 02/15/09 8.875 105,500
100 Owens-Illinois, Inc., Senior Notes~ (B+ , B3) 05/15/08 7.350 97,000
155 Sealed Air Corp., Rule 144A, Notes++ (BBB , Baa3) 05/15/09 6.950 165,683
255 Sealed Air Corp., Rule 144A, Senior Notes++ (BBB , Baa3) 04/15/08 5.375 258,515
330 Stone Container Corp., Global Senior Notes
(Callable 07/01/07 @ $104.19) (B , B2) 07/01/12 8.375 341,550
--------------
1,129,103
--------------
PHARMACEUTICALS (0.0%)
30 NBTY, Inc., Series B, Senior Subordinated Notes
(Callable 09/15/03 @ $102.88) (B+ , B1) 09/15/07 8.625 30,750
--------------
PIPELINES (0.7%)
330 Duke Capital Corp., Global Senior Notes (BBB , Baa3) 10/01/19 8.000 353,670
320 Equitable Resources, Inc., Global Bonds (A , A2) 11/15/12 5.150 321,154
--------------
</Table>
See Accompanying Notes to Financial Statements.
10
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ---------- --------------
PIPELINES -- (CONTINUED)
$ 240 Western Gas Resources, Inc.,
Company Guaranteed Notes
(Callable 06/15/04 @ $105.00) (BB- , Ba3) 06/15/09 10.000 $ 256,800
--------------
931,624
--------------
REAL ESTATE (0.4%)
495 EOP Operating LP, Senior Notes (BBB+ , Baa1) 02/15/05 6.625 524,321
--------------
RETAIL (0.9%)
175 Leslie's Poolmart, Rule 144A, Senior Notes
(Callable 07/15/05 @ 102.59)++ (B- , B2) 07/15/08 10.375 175,875
100 Sbarro, Inc., Company Guaranteed Notes
(Callable 09/15/04 @ $105.50)~ (B- , B3) 09/15/09 11.000 85,500
605 Target Corp., Notes (A+ , A2) 08/15/10 7.500 703,817
290 Yum! Brands, Inc., Senior Notes (BB+ , Ba1) 07/01/12 7.700 311,025
--------------
1,276,217
--------------
SAVINGS & LOANS (0.6%)
100 Sovereign Bancorp, Inc., Senior Notes (BBB- , Ba1) 11/15/06 10.500 117,499
620 Washington Mutual, Inc., Global Senior Notes (BBB+ , A3) 01/15/07 5.625 664,255
--------------
781,754
--------------
SOVEREIGN (1.5%)
290 Government of Malaysia, Global Bonds (BBB+ , Baa1) 07/15/11 7.500 334,515
1,055 Republic of Philippines, Series B, Restructured Debt,
Foreign Government Guaranteed
(Callable 12/01/03 @ $100.00)(Philippines) (BB , Ba1) 12/01/17 6.500 1,022,717
245 Russian Federation, Unsubordinated Notes (BB , Ba2) 03/31/10 8.250 271,788
475 United Mexican States, MTN Global Notes (BBB- , Baa2) 01/16/13 6.375 480,938
--------------
2,109,958
--------------
TELECOMMUNICATIONS (3.3%)
250 Alamosa PCS Holdings, Inc., Company Guaranteed Notes
(Callable 02/15/05 @ $106.44)+ (CCC- , Caa3) 02/15/10 12.875 185,000
455 AT&T Broadband Corp., Global
Company Guaranteed Notes (BBB , Baa3) 03/15/13 8.375 541,541
705 AT&T Corp., Global Senior Notes~,# (BBB , Baa2) 11/15/31 8.500 798,133
505 AT&T Wireless Services, Inc., Global Senior Notes (BBB , Baa2) 03/01/11 7.875 571,412
255 AT&T Wireless Services, Inc., Global Senior Notes (BBB , Baa2) 03/01/31 8.750 303,192
235 Citizens Communications Co., Global Senior Notes (BBB , Baa2) 08/15/31 9.000 294,824
130 Citizens Communications Co., Notes (BBB , Baa2) 05/15/06 8.500 147,327
240 Cox Communications, Inc., Notes (BBB , Baa2) 06/15/05 6.875 257,856
155 Insight Midwest/Insight Capital Corp.,
Global Senior Notes
(Callable 11/01/05 @ $105.25) (B+ , B2) 11/01/10 10.500 163,913
100 Insight Midwest/Insight Capital Corp., Senior Notes
(Callable 10/01/04 @ $104.88) (B+ , B2) 10/01/09 9.750 103,000
178 Level 3 Communications, Inc., Senior Notes
(Callable 05/01/04 @ $103.04)~ (CC , Caa3) 05/01/08 9.125 145,960
80 Rogers Wireless Communications, Inc.,
Global Secured (BB+ , Ba3) 05/01/11 9.625 88,500
555 Sprint Capital Corp., Global Company
Guaranteed Notes (BBB- , Baa3) 03/15/32 8.750 632,754
420 Verizon Wireless Capital, Inc., Global Notes (A+ , A3) 12/15/06 5.375 445,911
--------------
4,679,323
--------------
</Table>
See Accompanying Notes to Financial Statements.
11
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ------ --------------
TEXTILES (0.0%)
$ 35 Simmons Co., Series B, Senior Subordinated Notes
(Callable 03/15/04 @ $105.13) (B , B2) 03/15/09 10.250 $ 37,538
--------------
TOTAL CORPORATE BONDS (Cost $52,326,775) 53,489,408
--------------
ASSET BACKED SECURITIES (16.1%)
2,500 Aesop Funding II LLC,
Series 2003-2A Class A2# (AAA , Aaa) 06/20/07 1.360 2,511,285
1,951 Ameriquest Mortgage Services, Inc.,
Series 2003-AR2, Class A4# (AAA , Aaa) 05/25/33 1.460 1,952,206
1,150 Citibank Credit Card Issuance Trust,
Series 2000-A3, Class A3# (AAA , Aaa) 11/16/09 6.875 1,297,797
1,135 Citibank Credit Card Issuance Trust,
Series 2002-A1, Class A1 (AAA , Aaa) 02/09/09 4.950 1,197,874
1,610 Citibank Credit Card Issuance Trust,
Series 2002-A9, Class A9# (AAA , Aaa) 12/17/07 1.159 1,611,358
1,090 Citibank Credit Card Issuance Trust,
Series 2003-A7, Class A7# (AAA , Aaa) 07/07/17 4.150 975,685
1,784 Conseco Finance, Series 2000-D, Class A4 (AAA , Aaa) 12/15/25 8.170 1,861,868
763 Contimortgage Home Equity Loan Trust,
Series 1996-4, Class A8 (AAA , Aaa) 01/15/28 7.220 766,041
1,531 Countrywide Home Equity Loan Trust,
Series 2002-C, Class A# (AAA , Aaa) 05/15/28 1.350 1,528,548
1,610 First USA Credit Card Master Trust,
Series 2001-1, Class A# (AAA , Aaa) 09/19/08 1.260 1,615,456
177 Green Tree Recreational, Equipment &
Consumer Trust, Series 1997-C, Class A1 (AAA , NR) 02/15/18 6.490 177,603
1,199 Greenpoint Home Equity Loan Trust,
Series 2003-1, Class A# (AAA , Aaa) 04/15/29 1.380 1,197,420
1,610 MBNA Credit Card Master Note Trust,
Series 2002-A4, Class A4# (AAA , Aaa) 08/17/09 1.220 1,611,916
2,000 MBNA Master Credit Card Trust,
Series 1998-G, Class A# (AAA , Aaa) 02/17/09 1.240 2,006,442
1,610 SLM Student Loan Trust,
Series 2003-1, Class A2# (AAA , Aaa) 06/17/13 1.159 1,611,355
820 UCFC Home Equity Loan Trust,
Series 1998-A, Class A7 (AAA , Aaa) 07/15/29 6.870 852,348
--------------
TOTAL ASSET BACKED SECURITIES (Cost $22,693,448) 22,775,202
--------------
MORTGAGE-BACKED SECURITIES (52.7%)
MORTGAGE BACKED SECURITIES (52.7%)
855 Fannie Mae Global Bonds (AAA , Aaa) 11/15/30 6.625 942,702
3,050 Fannie Mae Global Notes^^ (AAA , Aaa) 03/15/12 6.125 3,329,563
187 Fannie Mae Pool #077774 (AAA , Aaa) 01/01/10 10.000 206,750
7 Fannie Mae Pool #124032 (AAA , Aaa) 02/01/05 10.000 7,098
638 Fannie Mae Pool #254702 (AAA , Aaa) 03/01/33 7.000 673,328
12 Fannie Mae Pool #531072 (AAA , Aaa) 01/01/30 6.000 11,957
193 Fannie Mae Pool #588970 (AAA , Aaa) 06/01/31 7.000 203,411
367 Fannie Mae Pool #589625 (AAA , Aaa) 11/01/24 6.500 382,598
772 Fannie Mae Pool #652310 (AAA , Aaa) 09/01/32 6.500 799,966
305 Fannie Mae Pool #656862 (AAA , Aaa) 04/01/33 6.000 310,314
331 Fannie Mae Pool #662830 (AAA , Aaa) 10/01/32 7.500 354,353
2,047 Fannie Mae Pool #667742 (AAA , Aaa) 04/01/33 6.000 2,081,564
1,474 Fannie Mae Pool #674585 (AAA , Aaa) 12/01/32 6.500 1,527,593
424 Fannie Mae Pool #678886 (AAA , Aaa) 01/01/33 7.000 448,074
712 Fannie Mae Pool #685447 (AAA , Aaa) 02/01/33 7.000 751,522
</Table>
See Accompanying Notes to Financial Statements.
12
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ---------- --------------
MORTGAGE BACKED SECURITIES -- (CONTINUED)
$ 1,023 Fannie Mae Pool #695851 (AAA , Aaa) 05/01/18 5.500 $ 1,045,205
452 Fannie Mae Pool #696915 (AAA , Aaa) 04/01/33 6.000 459,375
1,578 Fannie Mae Pool #702129 (AAA , Aaa) 03/01/33 6.500 1,635,029
2,358 Fannie Mae Pool #702130^^ (AAA , Aaa) 03/01/33 7.000 2,488,896
1,632 Fannie Mae Pool #703443 (AAA , Aaa) 05/01/18 5.000 1,640,791
1,621 Fannie Mae Pool #703444^^ (AAA , Aaa) 05/01/18 5.000 1,628,804
287 Fannie Mae Pool #703598 (AAA , Aaa) 05/01/18 5.500 293,007
394 Fannie Mae Pool #704142 (AAA , Aaa) 05/01/18 5.500 403,067
269 Fannie Mae Pool #705651 (AAA , Aaa) 06/01/18 5.500 275,012
1,811 Fannie Mae Pool #708487^^ (AAA , Aaa) 04/01/33 6.000 1,842,068
1,092 Fannie Mae Pool #708704 (AAA , Aaa) 06/01/33 6.000 1,110,622
319 Fannie Mae Pool #709515 (AAA , Aaa) 05/01/18 5.500 326,499
488 Fannie Mae Pool #712118 (AAA , Aaa) 05/01/33 6.000 496,061
456 Fannie Mae Pool #712119 (AAA , Aaa) 05/01/33 6.000 464,185
2 Fannie Mae Series 1991-165 Class M (AAA , Aaa) 12/25/21 8.250 2,164
2,160 Fannie Mae TBA (AAA , Aaa) 09/02/18 4.500 2,122,200
315 Fannie Mae TBA (AAA , Aaa) 09/02/18 5.500 321,792
2,180 Fannie Mae TBA (AAA , Aaa) 09/02/33 5.000 2,109,830
6,660 Fannie Mae TBA (AAA , Aaa) 09/02/33 5.500 6,632,947
2,720 Fannie Mae TBA (AAA , Aaa) 09/02/33 6.000 2,818,600
1,405 Fannie Mae TBA (AAA , Aaa) 09/02/33 6.000 1,428,709
2,345 Fannie Mae TBA (AAA , Aaa) 09/02/33 6.500 2,424,876
6,945 Freddie Mac^^ (AAA , Aaa) 07/15/08 2.625 6,596,910
4,760 Freddie Mac~ (AAA , Aaa) 07/15/13 4.500 4,563,431
4,295 Freddie Mac, Global Notes~ (AAA , Aaa) 01/15/13 4.500 4,155,576
38 Freddie Mac, Series Gold (AAA , Aaa) 12/01/09 7.000 40,342
4,000 Freddie Mac Discount Notes^^ (AAA , Aaa) 09/02/03 0.850 3,999,906
1,600 Freddie Mac TBA (AAA , Aaa) 09/02/18 5.000 1,606,000
1,870 Ginnie Mae (AAA , Aaa) 09/15/33 6.500 1,945,383
0 Ginnie Mae Pool #003322(1) (AAA , Aaa) 11/15/04 9.000 39
0 Ginnie Mae Pool #003766(1) (AAA , Aaa) 08/15/04 8.250 10
0 Ginnie Mae Pool #004923(1) (AAA , Aaa) 12/15/04 9.000 62
0 Ginnie Mae Pool #009827(1) (AAA , Aaa) 04/15/06 8.250 122
1 Ginnie Mae Pool #112986 (AAA , Aaa) 07/15/14 13.500 830
8 Ginnie Mae Pool #186563 (AAA , Aaa) 12/15/16 9.000 9,009
16 Ginnie Mae Pool #210216 (AAA , Aaa) 04/15/17 8.000 16,935
137 Ginnie Mae Pool #312635 (AAA , Aaa) 08/15/21 9.000 152,878
479 Ginnie Mae Pool #598105 (AAA , Aaa) 03/15/33 6.000 489,165
427 Ginnie Mae Pool #598128 (AAA , Aaa) 03/15/33 6.000 436,206
448 Ginnie Mae Pool #598145 (AAA , Aaa) 03/15/33 6.000 457,531
250 Ginnie Mae Pool #600025 (AAA , Aaa) 03/15/33 6.000 255,385
183 Ginnie Mae Pool #604170 (AAA , Aaa) 04/15/33 6.500 190,157
521 Ginnie Mae Pool #604205 (AAA , Aaa) 04/15/33 6.500 542,297
1,460 Ginnie Mae TBA (AAA , Aaa) 09/02/33 5.500 1,459,088
2 GMAC Commercial Mortgage Securities, Inc.,
Series 1996-C1, Class A2B (AAA , Aaa) 02/15/06 7.220 2,419
1,420 Morgan Stanley Capital I,
Series 2003-T11, Class A4# (AAA , Aaa) 06/13/41 5.150 1,407,131
1,050 Salomon Brothers Mortgage Securities VII,
Series 1997-TZH, Class B (AAA , Aa1) 03/25/25 7.491 1,130,832
950 Vanderbilt Mortgage Finance,
Series 1998-C, Class 1B1 (BBB , NR) 02/07/15 6.970 974,293
--------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $75,002,203) 74,432,469
--------------
</Table>
See Accompanying Notes to Financial Statements.
13
<Page>
<Table>
<Caption>
PAR RATINGS**
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ---------- --------------
FOREIGN BONDS (1.4%)
BANKS (0.8%)
$ 940 Royal Bank of Scotland Group PLC,
Series 3, Perpetual Global Bonds
(Callable 12/31/05 @ $100.00)
(United Kingdom) (A- , A1) 11/29/49 7.816 $ 1,045,223
--------------
OIL & GAS (0.3%)
385 Petroleos Mexicano, Bonds (BB , Ba1) 06/01/07 9.000 444,906
--------------
TELECOMMUNICATIONS (0.3%)
385 Deutsche Telekom International Finance BV,
Global Company Guaranteed Notes# (BBB+ , Baa3) 06/15/05 8.250 422,309
--------------
TOTAL FOREIGN BONDS (Cost $1,804,819) 1,912,438
--------------
UNITED STATES TREASURY OBLIGATIONS (0.2%)
330 United States Treasury Bills##
(Cost $329,350) (AAA , Aaa) 11/06/03 0.855 329,445
--------------
<Caption>
NUMBER
OF SHARES
- ---------
COMMON STOCKS (0.1%)
FOOD (0.0%)
836 Archibald Candy Corp.*, ^ 20,900
--------------
OIL & GAS SERVICES (0.1%)
5,252 Southwest Royalties, Inc.*, ^ 79,463
--------------
PACKAGING & CONTAINERS (0.0%)
45,544 Crown Packaging Enterprises, Ltd.* 455
--------------
TOTAL COMMON STOCKS (Cost $244,293) 100,818
--------------
PREFERRED STOCK (0.3%)
TELECOMMUNICATIONS (0.3%)
350 Centaur Funding Corp., Rule 144A++(Cost $371,652) 401,844
--------------
WARRANTS (0.0%)
BUILDING MATERIALS (0.0%)
240 Dayton Superior Corp., Rule 144A, strike $0.01, expires June 2009*,++ 2
--------------
TELECOMMUNICATIONS (0.0%)
130 GT Group Telecom, Inc., Rule 144A, strike $0.00 expires Feburary 2010*,++ 97
50 IWO Holdings, Inc., Rule 144A, strike $7.00, expires January 2011*,++ 1
9,343 XO Communications Inc., Series A Wts., strike $6.25, expires January 2010* 25,226
7,008 XO Communications Inc., Series B Wts., strike $7.50, expires January 2010* 14,016
7,008 XO Communications Inc., Series C Wts., strike $10.00, expires January 2010* 10,512
--------------
49,852
--------------
TOTAL WARRANTS (Cost $21,326) 49,854
--------------
</Table>
See Accompanying Notes to Financial Statements.
14
<Page>
<Table>
<Caption>
NUMBER
OF SHARES VALUE
------------- --------------
SHORT-TERM INVESTMENTS (10.7%)
AIM Institutional Fund - Liquid Asset Portfolio~~ (Cost $10,564,305) 10,564,305 $ 10,564,305
<Caption>
PAR
(000)
-------------
State Street Bank and Trust Co. Euro Time Deposit, 0.750%, 09/02/03^^ (Cost $4,515,000) $ 4,515 4,515,000
--------------
TOTAL SHORT-TERM INVESTMENTS (Cost $15,079,305) 15,079,305
--------------
TOTAL INVESTMENTS AT VALUE (119.4%) (Cost $167,873,171) 168,570,783
LIABILITIES IN EXCESS OF OTHER ASSETS (-19.4%) (27,330,528)
--------------
NET ASSETS (100.0%) $ 141,240,255
==============
</Table>
** Credit ratings given by the Standard & Poor's Division of The McGraw-Hill
Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are
unaudited.
# Variable rate obligations -- The interest rate shown is the rate as of
August 31, 2003.
+ Step Bond -- The interest stated is as of August 31, 2003 and will reset at
a future date.
++ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At August 31,
2003, these securities amounted to a value of $4,481,547 or 3.2% of net
assets.
@@ Security in default.
* Non-income producing security.
~ Security or portion thereof is out on loan.
~~ Represents security purchased with cash collateral received for securities
on loan.
## Collateral segregated for futures contracts.
^^ Collateral segregated for TBA securities.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by the Board of Directors.
(1) Par value of security held is less than $1,000.
INVESTMENT ABBREVIATIONS
<Table>
TBA To Be Announced
</Table>
See Accompanying Notes to Financial Statements.
15
<Page>
CREDIT SUISSE INSTITUTIONAL HIGH YIELD FUND
ANNUAL INVESTMENT ADVISER'S REPORT
September 19, 2003
Dear Shareholder:
We are writing to report on the results of the Credit Suisse Institutional High
Yield Fund(1) (the "Fund") for the fiscal year ended August 31, 2003.
At August 31, 2003, the net asset value ("NAV") per share of the Fund was
$10.26, compared to an NAV per share of $9.90 on August 31, 2002. Assuming the
reinvestment of distributions totalling $1.19091 per share, the Fund's total
return was 16.96%. By comparison, the Citigroup High-Yield Market Index(2)
(CHYMI) and the Credit Suisse First Boston High Yield Index, Developed Countries
Only(2) gained 26.89% and 22.95%, respectively, during the same period.
The Fund's performance was more in line with that of its peers, while still
underperforming them. As represented by the Lipper High Yield Bond Funds
Index,(3) the broad universe of high yield funds returned 21.79%.
The high yield market's buoyancy throughout most of the fiscal year was due to a
combination of several favorable factors. Investors' appetite for relatively
risky financial assets revived in late 2002, for example. There was a
generalized sense that the long string of accounting-based irregularities and
corporate governance issues that had plagued high yield in 2001 and 2002 may
have finally run its course.
In addition, there was a widespread search for yield at a time when interest
rates -- and, therefore, the returns available from money market funds -- were
historically low. The Federal Reserve cut its benchmark fed funds rate twice in
the period, by a total of 75 bps, to 1.00% (I.E., the lowest such level since
1958). Investors thus poured fresh cash into high yield mutual funds, which
acted aggressively to put the cash to work.
Other factors that helped to enhance high yield's popularity included valuations
that, early in the period, remained near historically low levels by certain
measures; a default rate that continued to decline, suggesting that overall
credit quality was improving; and vigorous buying of the bonds of "fallen
angels" (I.E., investment-grade companies whose debt had been downgraded to high
yield status), which had lost substantial value during much of 2002.
We attribute the Fund's underperformance primarily to our positioning of the
portfolio in certain industry sectors:
- - Our relative results in utilities and energy trading companies each suffered
from the combined impact of our underweight allocation and security
selection.
- - As represented by CHYMI, the strongest sectors in the broad high yield market
during the period tended to be those that had absorbed harsh punishment in
most of 2002 and had sold off in line with their equity-market counterparts.
These notably included many telecommunications and technology subcategories,
whose sharp gains reflected the period's revival of risk tolerance. We
maintained a decidedly underweight stance in most of these as a defensive
measure, which detracted from our performance accordingly.
A big-picture factor that dampened performance in the fiscal year's first half
was that, at the time, we chose not to own the securities of many of the most
prominent fallen angels. Our avoidance of such companies was based on our belief
that their underlying fundamentals remained problematic. As we mentioned
earlier, however, the bonds of fallen angels enjoyed momentum-fuelled rallies in
late 2002 and well into 2003.
16
<Page>
The most positive contributions to the Fund's overall return came from our
overweight exposure and security selection in cable television, which proved
particularly effective. To a lesser degree, performance additionally benefited
from our overweight and security selection in health care facilities/supplies;
and our overweights in consumer products/tobacco, gaming and competitive
local-exchange telecom service providers.
Sincerely yours,
Credit Suisse High Yield Management Team
Richard J. Lindquist, CFA, Managing Director
Misia K. Dudley, Director
Philip L. Schantz, Director
Mary Ann Thomas, CFA, Director
John M. Tobin, CFA, Director
John F. Dessauer, CFA, Vice President
Michael J. Dugan, Vice President
NOTE: HIGH YIELD BONDS ARE LOWER-QUALITY BONDS ALSO KNOWN AS "JUNK BONDS." SUCH
BONDS ENTAIL GREATER RISKS THAN THOSE FOUND IN HIGHER-RATED SECURITIES.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN 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.
17
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $3 MILLION INVESTMENT IN THE CREDIT SUISSE
INSTITUTIONAL HIGH YIELD FUND(1), THE CITIGROUP HIGH-YIELD MARKET INDEX(2),(4)
AND THE CREDIT SUISSE FIRST BOSTON HIGH YIELD INDEX, DEVELOPED COUNTRIES
ONLY(2),(4) FROM INCEPTION (2/26/93). (UNAUDITED)
<Table>
<Caption>
CREDIT SUISSE FIRST BOSTON
CREDIT SUISSE INSTITUTIONAL CITIGROUP HIGH-YIELD HIGH YIELD INDEX, DEVELOPED
HIGH YIELD FUND(1) $5,379,300 MARKET INDEX(2),(4) $6,181,046 COUNTRIES ONLY(2),(4) $6,223,429
2/28/1993 $ 3,000,000 $ 3,000,000 $ 3,000,000
3/31/1993 $ 3,094,000 $ 3,046,500 $ 3,063,330
4/30/1993 $ 3,122,000 $ 3,069,958 $ 3,080,852
5/31/1993 $ 3,182,000 $ 3,112,323 $ 3,125,740
6/30/1993 $ 3,276,000 $ 3,181,728 $ 3,182,316
7/31/1993 $ 3,344,000 $ 3,212,909 $ 3,215,412
8/31/1993 $ 3,388,000 $ 3,247,609 $ 3,242,808
9/30/1993 $ 3,402,000 $ 3,255,403 $ 3,261,227
10/31/1993 $ 3,550,000 $ 3,318,558 $ 3,320,907
11/30/1993 $ 3,564,000 $ 3,336,478 $ 3,362,684
12/31/1993 $ 3,486,000 $ 3,373,179 $ 3,405,121
1/31/1994 $ 3,746,010 $ 3,446,377 $ 3,465,732
2/28/1994 $ 3,640,962 $ 3,430,524 $ 3,470,931
3/31/1994 $ 3,404,814 $ 3,302,908 $ 3,368,920
4/30/1994 $ 3,364,179 $ 3,272,852 $ 3,323,743
5/31/1994 $ 3,447,588 $ 3,284,307 $ 3,342,688
6/30/1994 $ 3,377,011 $ 3,287,920 $ 3,320,226
7/31/1994 $ 3,374,838 $ 3,320,141 $ 3,335,930
8/31/1994 $ 3,463,935 $ 3,338,734 $ 3,359,949
9/30/1994 $ 3,505,472 $ 3,330,053 $ 3,373,322
10/31/1994 $ 3,467,827 $ 3,330,719 $ 3,375,649
11/30/1994 $ 3,436,824 $ 3,294,081 $ 3,336,593
12/31/1994 $ 3,370,391 $ 3,330,975 $ 3,371,894
1/31/1995 $ 3,281,396 $ 3,378,941 $ 3,407,333
2/28/1995 $ 3,290,524 $ 3,491,460 $ 3,491,153
3/31/1995 $ 3,312,297 $ 3,527,771 $ 3,530,603
4/30/1995 $ 3,458,838 $ 3,610,674 $ 3,608,982
5/31/1995 $ 3,605,379 $ 3,718,272 $ 3,710,720
6/30/1995 $ 3,624,627 $ 3,744,672 $ 3,735,248
7/31/1995 $ 3,679,258 $ 3,789,608 $ 3,793,144
8/31/1995 $ 3,733,889 $ 3,813,103 $ 3,803,803
9/30/1995 $ 3,800,734 $ 3,857,335 $ 3,847,546
10/31/1995 $ 3,820,188 $ 3,889,737 $ 3,890,254
11/30/1995 $ 3,837,209 $ 3,925,133 $ 3,908,538
12/31/1995 $ 3,916,355 $ 3,987,543 $ 3,958,099
1/31/1996 $ 4,021,458 $ 4,046,160 $ 4,033,382
2/29/1996 $ 4,101,537 $ 4,071,246 $ 4,054,799
3/31/1996 $ 4,089,815 $ 4,050,890 $ 4,043,770
4/30/1996 $ 4,120,317 $ 4,049,675 $ 4,065,687
5/31/1996 $ 4,199,114 $ 4,072,353 $ 4,098,538
6/30/1996 $ 4,184,330 $ 4,103,710 $ 4,107,637
7/31/1996 $ 4,158,244 $ 4,130,384 $ 4,144,605
8/31/1996 $ 4,197,374 $ 4,173,340 $ 4,189,781
9/30/1996 $ 4,320,463 $ 4,270,996 $ 4,261,804
10/31/1996 $ 4,323,133 $ 4,320,113 $ 4,297,603
11/30/1996 $ 4,373,868 $ 4,403,059 $ 4,364,560
12/31/1996 $ 4,415,130 $ 4,437,843 $ 4,449,712
1/31/1997 $ 4,480,661 $ 4,471,127 $ 4,482,284
2/28/1997 $ 4,559,844 $ 4,547,136 $ 4,566,506
3/31/1997 $ 4,477,208 $ 4,500,300 $ 4,515,361
4/30/1997 $ 4,493,883 $ 4,532,252 $ 4,555,593
5/31/1997 $ 4,607,828 $ 4,623,804 $ 4,647,069
6/30/1997 $ 4,701,436 $ 4,701,946 $ 4,710,270
7/31/1997 $ 4,817,486 $ 4,809,621 $ 4,810,174
8/31/1997 $ 4,834,469 $ 4,821,645 $ 4,836,149
9/30/1997 $ 4,958,410 $ 4,906,024 $ 4,931,905
10/31/1997 $ 4,993,104 $ 4,945,272 $ 4,931,363
11/30/1997 $ 4,998,886 $ 4,970,493 $ 4,966,425
12/31/1997 $ 5,070,574 $ 5,022,683 $ 5,011,569
1/31/1998 $ 5,180,224 $ 5,135,693 $ 5,096,716
2/28/1998 $ 5,257,275 $ 5,170,616 $ 5,136,572
3/31/1998 $ 5,332,451 $ 5,226,459 $ 5,162,255
4/30/1998 $ 5,335,460 $ 5,254,682 $ 5,200,920
5/31/1998 $ 5,356,525 $ 5,268,869 $ 5,216,471
6/30/1998 $ 5,369,774 $ 5,280,461 $ 5,227,478
7/31/1998 $ 5,357,486 $ 5,322,704 $ 5,264,070
8/31/1998 $ 5,099,442 $ 4,966,083 $ 4,906,535
9/30/1998 $ 4,995,678 $ 5,027,166 $ 4,905,995
10/31/1998 $ 4,872,988 $ 4,957,791 $ 4,808,415
11/30/1998 $ 5,001,970 $ 5,206,672 $ 5,052,249
12/31/1998 $ 5,005,871 $ 5,203,028 $ 5,040,579
1/31/1999 $ 5,070,172 $ 5,281,073 $ 5,104,796
2/28/1999 $ 5,060,527 $ 5,236,712 $ 5,085,448
3/31/1999 $ 5,134,520 $ 5,281,224 $ 5,119,979
4/30/1999 $ 5,262,229 $ 5,391,602 $ 5,218,845
5/31/1999 $ 5,186,914 $ 5,306,953 $ 5,166,657
6/30/1999 $ 5,186,978 $ 5,295,278 $ 5,159,372
7/31/1999 $ 5,200,381 $ 5,306,928 $ 5,164,583
8/31/1999 $ 5,133,366 $ 5,243,775 $ 5,115,003
9/30/1999 $ 5,081,169 $ 5,203,923 $ 5,068,917
10/31/1999 $ 5,046,837 $ 5,168,536 $ 5,033,891
11/30/1999 $ 5,125,801 $ 5,249,682 $ 5,095,405
12/31/1999 $ 5,230,720 $ 5,293,779 $ 5,154,460
1/31/2000 $ 5,276,634 $ 5,249,841 $ 5,123,070
2/29/2000 $ 5,460,292 $ 5,262,441 $ 5,142,537
3/31/2000 $ 5,386,440 $ 5,155,613 $ 5,049,509
4/30/2000 $ 5,285,151 $ 5,176,235 $ 5,048,449
5/31/2000 $ 5,209,183 $ 5,104,286 $ 4,977,720
6/30/2000 $ 5,261,311 $ 5,219,132 $ 5,083,247
7/31/2000 $ 5,253,901 $ 5,276,021 $ 5,123,354
8/31/2000 $ 5,227,965 $ 5,315,063 $ 5,153,582
9/30/2000 $ 5,157,678 $ 5,258,192 $ 5,105,654
10/31/2000 $ 5,005,535 $ 5,102,550 $ 4,948,451
11/30/2000 $ 4,743,086 $ 4,893,855 $ 4,738,092
12/31/2000 $ 4,810,749 $ 4,993,690 $ 4,835,176
1/31/2001 $ 5,061,472 $ 5,330,115 $ 5,135,972
2/28/2001 $ 5,057,555 $ 5,393,756 $ 5,193,032
3/31/2001 $ 4,968,039 $ 5,295,757 $ 5,091,716
4/30/2001 $ 4,899,653 $ 5,217,920 $ 5,041,869
5/31/2001 $ 4,972,061 $ 5,301,553 $ 5,134,588
6/30/2001 $ 4,850,214 $ 5,155,750 $ 5,044,733
7/31/2001 $ 4,871,030 $ 5,252,910 $ 5,114,905
8/31/2001 $ 4,929,316 $ 5,324,586 $ 5,182,883
9/30/2001 $ 4,582,057 $ 4,941,210 $ 4,845,995
10/31/2001 $ 4,701,849 $ 5,105,387 $ 4,970,053
11/30/2001 $ 4,830,198 $ 5,299,463 $ 5,136,549
12/31/2001 $ 4,853,545 $ 5,265,414 $ 5,137,577
1/31/2002 $ 4,889,037 $ 5,287,955 $ 5,184,175
2/28/2002 $ 4,826,926 $ 5,230,438 $ 5,141,509
3/31/2002 $ 4,913,970 $ 5,369,667 $ 5,263,877
4/30/2002 $ 4,959,135 $ 5,457,537 $ 5,347,309
5/31/2002 $ 4,913,970 $ 5,389,847 $ 5,327,310
6/30/2002 $ 4,692,209 $ 4,915,152 $ 5,145,063
7/31/2002 $ 4,553,112 $ 4,692,938 $ 4,997,760
8/31/2002 $ 4,590,205 $ 4,871,537 $ 5,061,781
9/30/2002 $ 4,512,551 $ 4,775,729 $ 4,994,520
10/31/2002 $ 4,455,189 $ 4,759,453 $ 4,962,151
11/30/2002 $ 4,675,080 $ 5,122,633 $ 5,231,853
12/31/2002 $ 4,713,174 $ 5,184,975 $ 5,293,359
1/31/2003 $ 4,788,224 $ 5,377,447 $ 5,442,394
2/28/2003 $ 4,878,285 $ 5,449,563 $ 5,522,914
3/31/2003 $ 4,978,998 $ 5,632,996 $ 5,664,908
4/30/2003 $ 5,182,430 $ 5,983,064 $ 5,953,745
5/31/2003 $ 5,243,459 $ 6,022,768 $ 6,033,632
6/30/2003 $ 5,384,544 $ 6,210,052 $ 6,207,220
7/31/2003 $ 5,374,079 $ 6,118,255 $ 6,154,651
8/31/2003 $ 5,379,300 $ 6,181,046 $ 6,223,429
</Table>
Past performance is not predictive of future performance. Investment return and
principal value of an investment will fluctuate so that an investor's shares
upon redemption may be worth more or less than their 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.
AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2003(1)
<Table>
<Caption>
SINCE
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS INCEPTION
-------- ----------- ---------- --------- ---------
16.96% 0.89% 1.03% 4.71% 5.69%
</Table>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003(1)
<Table>
<Caption>
SINCE
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS INCEPTION
-------- ----------- ---------- --------- ---------
21.69% 2.11% 1.91% 4.90% 5.87%
</Table>
(1) Fee waivers and/or expense reimbursements reduced expenses for the Fund,
without which performance would be lower. Waivers and/or reimbursements may
be discontinued at any time.
(2) Effective December 12, 2002, the Fund changed its performance benchmark from
the CSFB High Yield Index, Developed Countries Only to the Citigroup
High-Yield Market Index because the construction methodology and sector
codes of the latter index more closely resemble those of the Fund's
portfolio. The Citigroup High-Yield Market Index is a broad-based, unmanaged
index of high yield securities that is compiled by Citigroup Global Markets
Inc. Its name was changed from the Salomon Smith Barney High-Yield Market
Index effective April 7, 2003. The Credit Suisse First Boston High Yield
Index, Developed Countries Only is an unmanaged index (with no defined
investment objective) of domestic high yield bonds and is compiled by Credit
Suisse First Boston, an affiliate of the Fund's advisor. Its name changed
from The Credit Suisse First Boston Domestic+ High Yield Index effective May
31, 2001. Investors cannot invest directly in an index.
(3) The Lipper High Yield Bond Funds Index is an equal-weighted performance
index, adjusted for capital-gain distributions and income dividends, of the
largest qualifying funds classified by Lipper Inc. as investing primarily in
high yield debt securities. It is compiled by Lipper Inc. Investors cannot
invest directly in an index.
(4) Performance for both indices are shown from March 1, 1993 to August 31,
2003.
18
<Page>
SCHEDULE OF INVESTMENTS
AUGUST 31, 2003
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
----- --------------- -------- ----- -----------
CORPORATE BONDS (101.0%)
AEROSPACE (0.4%)
$ 100 L-3 Communications Corp., Global Company
Guaranteed Notes (Callable 07/15/08 @ $103.06) (BB- , Ba3) 07/15/13 6.125 $ 95,000
-----------
AUTOMOBILE MANUFACTURING/VEHICLE PARTS (4.8%)
100 Collins & Aikman Products Corp., Company
Guaranteed Notes (Callable 04/15/04 @ $100.00)~ (B- , B3) 04/15/06 11.500 76,000
100 Cummins, Inc., Rule 144A, Senior Notes
(Callable 12/01/06 @ $104.75)++ (BB+ , Ba2) 12/01/10 9.500 112,000
200 Delco Remy International, Inc., Company
Guaranteed Notes (Callable 08/01/04 @ $100.00)~ (CCC+ , B3) 08/01/06 10.625 179,000
100 Holley Performance Products, Series B, Company
Guaranteed Notes (Callable 09/15/03 @ $106.12) (CCC- , Caa3) 09/15/07 12.250 38,500
450 Motor Coach Industries International, Inc., Company
Guaranteed Notes (Callable 05/01/04 @ $105.62) (CCC+ , Caa1) 05/01/09 11.250 227,812
200 Stanadyne Automotive Corp., Series B, Company
Guaranteed Notes (Callable 12/15/03 @ $103.42) (B , Caa1) 12/15/07 10.250 175,000
150 Tenneco Automotive, Inc., Rule 144A, Secured Notes
(Callable 07/15/08 @ $105.12)++ (CCC+ , B2) 07/15/13 10.250 156,000
350 Titan International, Inc., Senior Subordinated Notes
(Callable 04/01/04 @ $101.46) (CCC , Caa3) 04/01/07 8.750 204,750
100 TRW Automotive, Rule 144A, Senior Subordinated Notes
(Callable 02/15/08 @ $105.50)++, ~ (B+ , B2) 02/15/13 11.000 115,000
-----------
1,284,062
-----------
BROADCAST/OUTDOOR (1.8%)
100 Entravision Communications Corp., Global Company
Guaranteed Notes (Callable 03/15/06 @ $104.06) (B- , B3) 03/15/09 8.125 103,750
100 Interep National Radio Sales, Inc., Series B, Company
Guaranteed Notes (Callable 07/01/04 @ $103.33) (CCC- , Caa2) 07/01/08 10.000 87,500
100 Paxson Communications Corp., Global Company
Guaranteed Notes (Callable 01/15/06 @ $106.12)+ (CCC+ , Caa1) 01/15/09 12.250 80,500
100 Radio One, Inc., Series B, Global Company Guaranteed
Notes (Callable 07/01/06 @ $104.44) (B- , B2) 07/01/11 8.875 109,750
100 Sinclair Broadcast Group, Inc., Global Company
Guaranteed Notes (B , B2) 12/15/11 8.750 108,250
-----------
489,750
-----------
BUILDING PRODUCTS (1.6%)
100 Associated Materials, Inc., Global Company
Guaranteed Notes (Callable 04/15/07 @ $104.88) (B- , B3) 04/15/12 9.750 105,500
250 Building Materials Corp., Company Guaranteed Notes (B , B2) 12/01/08 8.000 236,875
100 Dayton Superior Corp., Company Guaranteed Notes
(Callable 06/15/07 @ $102.17) (B- , Caa2) 06/15/09 13.000 86,500
-----------
428,875
-----------
CABLE (10.1%)
250 Adelphia Communications Corp., Series B,
Senior Notes@@ (NR , NR) 07/15/04 10.500 167,500
250 Century Communications Corp.,
Senior Discount Notes@@ (NR , NR) 03/15/49 0.00 151,250
200 Charter Communications Holdings LLC, Senior
Discount Notes (Callable 04/01/04 @ $104.96)+ (CCC- , Ca) 04/01/11 9.920 135,000
</Table>
See Accompanying Notes to Financial Statements.
19
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
----- --------------- -------- ----- -------------
CABLE -- (CONTINUED)
$ 100 Charter Communications Holdings LLC, Senior Notes
(Callable 01/15/05 @ $105.12) (CCC- , Ca) 01/15/10 10.250 $ 77,000
400 Coaxial LLC, Company Guaranteed Notes
(Callable 08/15/04 @ $104.29)+ (CCC+ , NR) 08/15/08 12.875 423,000
100 Comcast UK Cable Partners, Ltd., Yankee Debentures
(Callable 11/15/03 @ $100.00) (C , Caa2) 11/15/07 11.200 99,750
100 CSC Holdings, Inc., Senior Subordinated Debentures
(Callable 02/15/04 @ $103.60) (B+ , B2) 02/15/13 9.875 105,000
250 Frontiervision Holdings LP, Senior Discount Notes
(Callable 09/15/03 @ $103.96)@@ (NR , NR) 09/15/07 11.875 225,000
250 Insight Communications Company, Inc., Senior
Discount Notes (Callable 02/15/06 @ $106.12)+ (B- , Caa1) 02/15/11 12.250 190,625
150 Insight Midwest, Senior Notes
(Callable 10/01/04 @ $104.88) (B+ , B2) 10/01/09 9.750 154,500
410 James Cable Partners LP, Series B, Senior Notes@@ (NR , Ca) 08/15/04 10.750 231,650
100 LodgeNet Entertainment Corp., Senior Subordinated
Debentures (Callable 06/15/08 $104.75) (B- , B3) 06/15/13 9.500 104,500
100 Mediacom LLC Capital Corp., Senior Notes
(Callable 01/15/06 @ $104.75) (B+ , B2) 01/15/13 9.500 101,500
150 Mediacom LLC Capital Corp., Senior Notes
(Callable 02/15/06 @ $103.94) (B+ , B2) 02/15/11 7.875 140,250
150 Northland Cable Television, Inc., Company
Guaranteed Notes (Callable 11/15/03 @ $103.42) (CC , Caa3) 11/15/07 10.250 144,750
250 Olympus Communications LP, Series B, Senior Notes
(Callable 11/15/03 @ $101.77)@@ (NR , NR) 11/15/06 10.625 251,562
-----------
2,702,837
-----------
CAPITAL GOODS (0.7%)
100 Intermet Corp., Global Company Guaranteed Notes
(Callable 06/15/06 @ $104.88) (B+ , B2) 06/15/09 9.750 95,500
100 SPX Corp., Senior Notes
(Callable 01/01/08 @ $103.75) (BB+ , Ba3) 01/01/13 7.500 104,500
-----------
200,000
-----------
CHEMICALS (2.7%)
100 Acetex Corp., Global Senior Notes
(Callable 08/01/05 @ $105.44) (B+ , B2) 08/01/09 10.875 109,500
150 Applied Extrusion Technologies, Inc., Series B,
Company Guaranteed Notes
(Callable 07/01/06 @ $105.38) (B , Caa1) 07/01/11 10.750 100,500
100 Equistar Chemicals LP/ Equistar Funding Corp.,
Global Company Guaranteed Notes (BB- , B1) 09/01/08 10.125 100,500
110 Lyondell Chemical Co., Series B, Senior Secured
Notes (Callable 05/01/04 @ $104.94) (BB- , Ba3) 05/01/07 9.875 109,450
100 Radnor Holdings Corp., Rule 144A, Senior Notes
(Callable 03/15/07 @ $105.50)++ (B , B2) 03/15/10 11.000 80,500
250 Terra Capital, Inc., Global Secured Notes
(Callable 06/01/07 @ $105.75) (B- , Caa1) 06/01/10 11.500 213,750
-----------
714,200
-----------
COMPETITIVE LOCAL EXCHANGE CARRIER (CLEC) (3.1%)
100 Block Communications, Inc., Global Company
Guaranteed Notes (Callable 04/15/06 @ $104.62) (B- , B2) 04/15/09 9.250 106,500
250 FairPoint Communications, Inc., Series B, Senior
Subordinated Notes (Callable 05/01/04 @ $103.17) (B- , Caa1) 05/01/08 9.500 238,750
</Table>
See Accompanying Notes to Financial Statements.
20
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
----- --------------- -------- ----- -------------
COMPETITIVE LOCAL EXCHANGE CARRIER (CLEC) -- (CONTINUED)
$ 400 RCN Corp., Senior Notes
(Callable 10/15/03 @ $103.33) (NR , Ca) 10/15/07 10.000 $ 160,000
232 RCN Corp., Series B, Senior Unsecured Discount Notes
(Callable 02/15/04 @ $103.27)+ (CCC- , Ca) 02/15/08 9.800 92,800
250 Time Warner Telecom LLC, Senior Notes
(Callable 07/15/04 @ $103.25) (CCC+ , B3) 07/15/08 9.750 236,250
-----------
834,300
-----------
COMPUTERS (0.7%)
2,427 DIVA Systems Corp., Series B, Senior Discount
Notes (Callable 03/01/04 @ $104.20)@@ (NR , NR) 03/01/08 12.625 182,025
-----------
CONGLOMERATE/DIVERSIFIED MANUFACTURING (0.8%)
150 Jordan Industries, Inc., Series D, Senior Notes
(Callable 08/01/04 @ $100.00) (CCC- , Caa3) 08/01/07 10.375 68,250
150 TriMas Corp., Global Company Guaranteed Notes
(Callable 06/15/07 @ $104.94) (B , B3) 06/15/12 9.875 147,750
-----------
216,000
-----------
CONSUMER PRODUCTS/TOBACCO (6.0%)
125 Central Garden & Pet Co., Global Company Guaranteed
Notes (Callable 02/01/08 @ $104.56) (B+ , B2) 02/01/13 9.125 132,500
715 Diamond Brands Operating, Company
Guaranteed Notes (Callable 04/15/04 @ $103.38)@@ (D , NR) 04/15/08 10.125 8,937
100 DIMON, Inc., Series B, Global Company
Guaranteed Notes (Callable 10/15/06 @ $104.81) (BB , Ba3) 10/15/11 9.625 110,500
250 General Binding Corp., Company Guaranteed Notes
(Callable 06/01/04 @ $103.13) (B- , Caa1) 06/01/08 9.375 242,500
100 Hockey Co./Sports Maska, Inc., Senior Secured,
Global Notes, Units (Callable 04/15/06 @ $105.62) (B , B2) 04/15/09 11.250 113,500
250 Holmes Products Corp., Series D, Senior
Subordinated Notes (Callable 11/15/03 @ $103.29) (B- , Caa2) 11/15/07 9.875 218,750
100 Jafra Cosmetics/Distribution, Rule 144A, Senior
Subordinated Notes (Callable 05/15/07 @ $105.38)++ (B- , B3) 05/15/11 10.750 105,500
100 Johnsondiversey, Inc., Series B, Global Company
Guaranteed Notes (Callable 05/15/07 @ $104.81) (B , B2) 05/15/12 9.625 106,250
150 Playtex Products, Inc., Global Company Guaranteed
Notes (Callable 06/01/06 @ $104.69) (B- , B3) 06/01/11 9.375 148,500
150 Revlon Consumer Products Corp., Global Company
Guaranteed Notes (CCC+ , Caa1) 12/01/05 12.000 144,750
100 Scotts Co., Company Guaranteed Notes
(Callable 01/15/04 @ $104.31) (B+ , Ba3) 01/15/09 8.625 105,250
151 Werner Holding Company, Inc., Series A, Company
Guaranteed Notes (Callable 11/15/03 @ $103.33) (B- , B2) 11/15/07 10.000 153,510
-----------
1,590,447
-----------
CONTAINERS (2.1%)
150 Berry Plastics Corp., Global Company Guaranteed Notes
(Callable 07/15/07 @ $105.38) (B- , B3) 07/15/12 10.750 165,375
100 Constar International, Inc., Senior Subordinated Notes
(Callable 12/01/07 @ $105.50) (B , B3) 12/01/12 11.000 90,750
100 Crown European Holdings SA, Rule 144A, Secured Notes
(Callable 03/01/08 @ $105.44)++ (B , B2) 03/01/13 10.875 111,000
100 Owens-Illinois, Inc., Senior Notes~ (B+ , B3) 05/15/08 7.350 97,000
100 Tekni-Plex, Inc., Series B, Company Guaranteed Notes
(Callable 06/15/05 @ $106.38) (B- , B3) 06/15/10 12.750 97,000
-----------
561,125
-----------
</Table>
See Accompanying Notes to Financial Statements.
21
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
----- --------------- -------- ----- -------------
DIVERSIFIED TELECOMMUNICATIONS (1.1%)
$ 125 Gray Television, Inc., Global Company Guaranteed Notes
(Callable (12/15/06 @ $104.62) (B- , B3) 12/15/11 9.250 $ 136,563
150 Primus Telecommunications Group, Inc., Senior Notes
(Callable 01/15/04 @ $105.62) (CCC- , Caa3) 01/15/09 11.250 147,750
-----------
284,313
-----------
ELECTRIC UTILITIES (0.5%)
150 Sierra Pacific Resources, Notes (B- , B2) 05/15/05 8.750 146,250
-----------
ELECTRONICS/INFORMATION/DATA TECHNOLOGY (1.0%)
332 Ampex Corp., Secured Notes (NR , NR) 08/15/08 12.000 49,755
100 Seagate Technology HDD Holdings, Global Company
Guaranteed Notes (Callable 05/15/06 @ $104.00) (BB+ , Ba2) 05/15/09 8.000 108,250
100 Solectron Corp., Senior Notes
(Callable 02/15/06 @ $104.81)~ (BB- , Ba3) 02/15/09 9.625 108,250
-----------
266,255
-----------
ENERGY - OTHER (2.4%)
100 Amerigas Partners LP Eagle Finance Corp., Series B,
Global Senior Notes
(Callable 05/20/06 @ $104.44) (BB- , B2) 05/20/11 8.875 107,500
115 Chesapeake Energy Corp., Global Company Guaranteed
Notes (Callable 04/01/06 @ $104.06) (BB- , Ba3) 04/01/11 8.125 120,750
500 Eagle Geophysical, Inc., Senior Notes^ (NR , NR) 07/15/08 10.750 50
100 Giant Industries, Inc., Global Company Guaranteed
Notes (Callable 05/15/07 @ $105.50) (B- , B3) 05/15/12 11.000 97,500
100 Swift Energy Co., Senior Subordinated Notes
(Callable 05/01/07 @ $104.69) (B , B3) 05/01/12 9.375 106,500
150 Trico Marine Services, Inc., Global Company
Guaranteed Notes (Callable 05/15/07 @ $104.44) (CCC+ , Caa1) 05/15/12 8.875 110,250
100 Williams Companies, Inc., Notes (B+ , B3) 12/01/08 6.500 95,500
-----------
638,050
-----------
ENVIRONMENTAL SERVICES (0.8%)
100 Allied Waste North America, Inc., Series B,
Company Guaranteed Notes
(Callable 01/01/04 @ $103.94) (BB- , Ba3) 01/01/09 7.875 102,875
100 IMC Global, Inc., Series B, Global Company
Guaranteed Notes (Callable 06/01/06 @ $105.62) (B+ , B1) 06/01/11 11.250 104,000
-----------
206,875
-----------
FOOD PROCESSORS/BEVERAGE/BOTTLING (5.1%)
125 Aurora Foods, Inc., Series B, Senior Subordinated
Notes (Callable 02/15/04 @ $103.65) (D , Ca) 02/15/07 9.875 63,125
100 B&G Foods, Inc., Series D, Global Company
Guaranteed Notes (Callable 08/01/04 @ $101.60) (B- , B3) 08/01/07 9.625 102,000
100 Curtice Burns Food, Inc., Company Guaranteed Notes
(Callable 11/01/03 @ $105.94) (B- , B3) 11/01/08 11.875 107,250
350 Eagle Family Foods, Inc., Series B, Company
Guaranteed Notes (Callable 01/15/04 @ $102.92) (CCC+ , Caa2) 01/15/08 8.750 239,750
150 Land O' Lakes, Inc., Global Senior Notes
(Callable 11/15/06 @ $104.38) (B+ , B2) 11/15/11 8.750 121,125
100 Luigino's, Inc., Senior Subordinated Notes
(Callable 02/01/04 @ $102.50) (B- , B3) 02/01/06 10.000 103,000
</Table>
See Accompanying Notes to Financial Statements.
22
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ----- --------------
FOOD PROCESSORS/BEVERAGE/BOTTLING -- (CONTINUED)
$ 200 National Wine & Spirits, Inc., Company Guaranteed
Notes (Callable 01/15/04 @ $105.06) (CCC+ , B3) 01/15/09 10.125 $ 176,000
250 New World Pasta Co., Company Guaranteed Notes
(Callable 02/15/04 @ $104.62) (NR , Caa3) 02/15/09 9.250 67,500
100 Pilgrim's Pride Corp., Company Guaranteed Notes
(Callable 09/15/06 @ $104.81) (BB- , B1) 09/15/11 9.625 106,500
150 Premier International Foods PLC, Yankee Senior
Notes (Callable 09/01/04 @ $106.00) (B- , B3) 09/01/09 12.000 165,000
100 Roundy's, Inc., Series B, Global Company
Guaranteed Notes (Callable 06/15/07 @ $104.44) (B , B2) 06/15/12 8.875 104,750
--------------
1,356,000
--------------
GAMING (9.9%)
100 Ameristar Casinos, Inc., Global Company Guaranteed
Notes (Callable 02/15/06 @ $105.38) (B , B3) 02/15/09 10.750 112,000
100 Argosy Gaming Co., Senior Subordinated Notes
(Callable 09/01/06 @ $104.50) (B+ , B2) 09/01/11 9.000 108,250
100 Aztar Corp., Global Senior Subordinated Notes
(Callable 08/15/06 @ $104.50) (B+ , Ba3) 08/15/11 9.000 107,250
100 Coast Hotels & Casinos, Inc., Company Guaranteed
Notes (Callable 04/01/04 @ 104.75) (B , B2) 04/01/09 9.500 107,000
150 Hard Rock Hotel, Inc., Rule 144A, Notes
(Callable 06/01/08 @ $104.44)++ (B , B3) 06/01/13 8.875 155,250
150 Herbst Gaming, Inc., Series B, Global Secured
Notes (Callable 09/01/05 @ $105.38) (B , B2) 09/01/08 10.750 165,750
100 Isle of Capri Casinos, Inc., Company Guaranteed
Notes (Callable 04/15/04 @ $104.38) (B , B2) 04/15/09 8.750 106,500
100 Kerzner International, Ltd., Global Company
Guaranteed Notes (Callable 08/15/06 @ $104.44) (B+ , B2) 08/15/11 8.875 108,250
250 Majestic Investor Holdings, Company Guaranteed
Notes (Callable 11/30/05 @ $105.83) (B , B2) 11/30/07 11.653 263,750
250 Majestic Star Casino LLC, Series B, Company
Guaranteed Notes (Callable 07/01/04 @ $102.72) (B , B2) 07/01/06 10.875 264,845
250 Old Evangeline Downs, Rule 144A, Secured Notes
(Callable 03/01/07 @ $106.50)++ (B- , Caa1) 03/01/10 13.000 255,938
250 Peninsula Gaming LLC, Series B, Company Guaranteed
Notes (Callable 07/01/04 @ $105.33) (B , B2) 07/01/06 12.250 260,312
100 Penn National Gaming, Inc., Series B, Global Company
Guaranteed Notes (Callable 03/01/05 @ $105.56) (B- , B3) 03/01/08 11.125 112,000
200 Waterford Gaming LLC, Rule 144A, Senior Notes
(Callable 09/15/08 @ $103.55)++ (B+ , B1) 09/15/12 8.625 208,000
300 Windsor Woodmont Black Hawk, Series B, First
Mortgage (Callable 03/15/04 @ $104.33)@@ (NR , NR) 03/15/05 13.000 196,875
100 Wynn Las Vegas LLC, Second Mortgage Note
(Callable 11/01/06 @ $112.00) (CCC+ , B3) 11/01/10 12.000 114,000
--------------
2,645,970
--------------
GAS PIPELINES (1.9%)
100 El Paso CGP Co., Notes (B , Caa1) 02/01/09 6.375 83,750
100 El Paso Corp., Senior Notes~ (B , Caa1) 05/15/11 7.000 86,750
100 El Paso Production Holdings Co., Rule 144A,
Company Guaranteed Notes
(Callable 06/01/08 @ $103.88)++ (B+ , B2) 06/01/13 7.750 97,500
</Table>
See Accompanying Notes to Financial Statements.
23
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ----- --------------
GAS PIPELINES -- (CONTINUED)
$ 150 Gemstone Investors, Ltd., Rule 144A, Company
Guaranteed Notes++ (B , Caa1) 10/31/04 7.710 $ 148,875
100 Reliant Resources, Inc., Rule 144A, Secured Notes
(Callable 07/15/08 @ $104.75)++ (B , B1) 07/15/13 9.500 92,500
--------------
509,375
--------------
HEALTHCARE FACILITIES/SUPPLIES (4.0%)
100 Alpharma, Inc., Rule 144A, Senior Notes
(Callable 05/01/07 @ $104.31)++ (B+ , B3) 05/01/11 8.625 101,500
100 Extendicare Health Services, Inc., Company
Guaranteed Notes (Callable 12/15/03 @ $103.12) (CCC+ , B3) 12/15/07 9.350 103,000
100 HEALTHSOUTH Corp., Global Notes@@,~ (D , Caa2) 06/01/12 7.625 82,000
300 Magellan Health Services, Inc., Rule 144A, Senior
Notes (Callable 11/15/05 @ $104.69)++, @@ (D , NR) 11/15/07 9.375 315,000
100 Magellan Health Services, Inc., Senior
Subordinated Notes (Callable 02/15/04 @ $103.00)@@ (D , NR) 02/15/08 9.000 49,500
50 Rotech Healthcare, Inc., Global Company Guaranteed
Notes (Callable 04/01/07 @ $104.75) (B+ , B2) 04/01/12 9.500 52,250
100 Vanguard Health Systems, Inc., Global Company
Guaranteed Notes (Callable 08/01/06 @ $104.88) (CCC+ , B3) 08/01/11 9.750 102,500
150 Ventas Realty LP, Global Company Guaranteed Notes (BB- , Ba3) 05/01/12 9.000 160,875
100 Vicar Operating, Inc., Company Guaranteed Notes
(Callable 12/01/05 @ $104.94) (B- , B3) 12/01/09 9.875 108,500
--------------
1,075,125
--------------
HOME BUILDERS (1.0%)
100 Beazer Homes USA, Inc., Global Company Guaranteed
Notes (Callable 04/15/07 @ $104.19) (BB , Ba2) 04/15/12 8.375 106,000
150 Toll Corp., Senior Subordinated Notes
(Callable 12/01/06 @ $104.12) (BB+ , Ba2) 12/01/11 8.250 159,750
--------------
265,750
--------------
INDUSTRIAL - OTHER (0.9%)
100 Day International Group, Inc., Series B, Senior
Notes (Callable 06/01/04 @ $100.00) (B- , B2) 06/01/05 11.125 101,625
504 International Utility Structures, Inc., Subordinated
Notes (Callable 02/01/04 @ $104.33)@@ (NR , NR) 02/01/08 13.000 25,200
100 Wolverine Tube, Inc., Global Company Guaranteed Notes
(Callable 04/01/06 @ $105.25) (BB- , B1) 04/01/09 10.500 104,000
--------------
230,825
--------------
LEISURE (3.7%)
100 AMC Entertainment, Inc., Senior Subordinated Notes
(Callable 02/01/04 @ $104.75) (CCC+ , Caa1) 02/01/11 9.500 105,500
200 Booth Creek Ski Holdings, Inc., Series B, Company
Guaranteed Notes (Callable 03/15/04 @ $102.08) (CCC+ , Caa1) 03/15/07 12.500 191,750
100 Cinemark USA, Inc., Global Senior Subordinated
Notes (Callable 02/01/08 @ $104.50) (B- , B3) 02/01/13 9.000 107,000
250 Icon Health & Fitness, Inc., Global Company
Guaranteed Notes (Callable 04/01/07 @ 105.62) (B- , B3) 04/01/12 11.250 263,750
121 Imax Corp., Yankee Senior Unsecured Notes
(Callable 12/01/03 @ $101.97) (CCC , Caa2) 12/01/05 7.875 118,693
100 Intrawest Corp., Yankee Senior Notes
(Callable 08/15/04 @ $103.25) (B+ , B1) 08/15/08 9.750 104,500
</Table>
See Accompanying Notes to Financial Statements.
24
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ----- --------------
LEISURE -- (CONTINUED)
$ 100 Speedway Motorsports, Inc., Rule 144A, Senior
Subordinated Notes (Callable 06/01/08 @ $103.38)++ (B+ , Ba2) 06/01/13 6.750 $ 99,500
--------------
990,693
--------------
LODGING (0.4%)
100 HMH Properties, Inc., Series C, Senior Notes
(Callable 12/01/03 @ $104.22) (B+ , Ba3) 12/01/08 8.450 102,625
--------------
MACHINERY (0.5%)
160 Motors & Gears, Inc., Series D, Senior Notes
(Callable 11/15/03 @ $101.79) (CCC+ , Caa1) 11/15/06 10.750 139,200
--------------
METALS & MINING (1.4%)
100 Earle M. Jorgensen Co., Global Secured Notes
(Callable 06/01/07 @ $104.88) (B- , B2) 06/01/12 9.750 106,000
100 Jarden Corp., Global Company Guaranteed Notes
(Callable 05/01/07 @ $104.88) (B- , B2) 05/01/12 9.750 104,000
150 Metallurg, Inc., Series B, Company Guaranteed
Notes (Callable 12/01/03 @ $103.67) (CCC , Caa2) 12/01/07 11.000 72,750
100 UCAR Finance, Inc., Global Company Guaranteed
Notes (Callable 02/15/07 @ $105.12) (B , B3) 02/15/12 10.250 104,125
--------------
386,875
--------------
OIL EQUIPMENT (0.9%)
115 Parker Drilling Co., Series B, Company Guaranteed
Notes (Callable 11/15/04 @ $105.06)~ (B+ , B2) 11/15/09 10.125 113,563
135 Pride International, Inc., Senior Notes
(Callable 05/01/04 @ $101.56) (BB , Ba2) 05/01/07 9.375 139,725
--------------
253,288
--------------
PAPER & FOREST PRODUCTS (2.6%)
100 Ainsworth Lumber Company, Ltd., Yankee Senior Notes (B- , B3) 07/15/07 12.500 112,500
150 Box USA Holdings, Series B, Senior Notes
(Callable 06/01/04 @ $100.00) (B , B3) 06/01/06 12.000 150,750
100 Buckeye Technologies, Inc., Senior Subordinated
Notes (Callable 12/15/03 @ $100.00) (B , Caa1) 12/15/05 8.500 99,000
100 Caraustar Industries, Inc., Global Company
Guaranteed Notes (Callable 04/01/06 @ $105.25) (B+ , B2) 04/01/11 9.875 96,500
118 Doman Industries, Ltd., Yankee Company
Guaranteed Notes@@ (D , Caa2) 07/01/04 12.000 121,025
100 Georgia-Pacific Corp., Notes (BB+ , Ba3) 05/15/06 7.500 101,750
--------------
681,525
--------------
PHARMACEUTICALS (0.7%)
100 aaiPharma, Inc., Global Company Guaranteed Notes
(Callable 04/01/06 @ 105.50) (B- , Caa1) 04/01/10 11.000 110,000
82 Biovail Corp., Yankee Senior Subordinated Notes
(Callable 04/01/06 @ 103.94) (BB- , B2) 04/01/10 7.875 82,820
--------------
192,820
--------------
POWER (1.2%)
150 AES Corp., Rule 144A, Secured Notes
(Callable 05/15/08 @ $104.50)++ (B+ , B2) 05/15/15 9.000 153,000
</Table>
See Accompanying Notes to Financial Statements.
25
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ----- --------------
POWER -- (CONTINUED)
$ 48 AES Corp., Senior Unsecured Notes (B- , B3) 06/01/09 9.500 $ 46,440
150 Edison Mission Energy, Senior Notes (BB- , B2) 06/15/09 7.730 117,000
--------------
316,440
--------------
PUBLISHING (2.9%)
250 Dex Media East LLC, Global Company Guaranteed Notes
(Callable 11/15/06 @ $104.94) (B , B2) 11/15/09 9.875 284,375
100 Hollinger, Inc., Rule 144A, Secured Notes
(Callable 03/01/07 @ $105.94)++ (B , B3) 03/01/11 11.875 109,750
300 Liberty Group Publishing, Inc., Debentures
(Callable 02/01/04 @ $103.88)+ (CCC+ , Caa2) 02/01/09 11.625 276,000
100 Phoenix Color Corp., Company Guaranteed Notes
(Callable 02/01/04 @ 105.19) (CCC+ , Caa2) 02/01/09 10.375 94,750
500 Premier Graphics, Inc., Company Guaranteed Notes
(Callable 12/01/03 @ $102.88)**, @@ (NR , NR) 12/01/05 11.500 0
--------------
764,875
--------------
RESTAURANTS (1.1%)
100 American Restaurant Group, Inc., Series D, Company
Guaranteed Notes (Callable 11/01/04 @ $105.75) (CCC+ , Caa2) 11/01/06 11.500 70,500
215 AmeriKing, Inc., Senior Notes
(Callable 12/01/03 @ $100.00)@@ (NR , NR) 11/15/07 10.750 21,500
229 AmeriKing, Inc., Unit, Senior Notes
(Callable 12/01/03 @ $100.00)@@ (NR , NR) 05/15/08 13.000 22,945
100 Carrols Corp., Company Guaranteed Notes
(Callable 12/01/03 @ $104.75) (B- , B3) 12/01/08 9.500 96,500
100 Sbarro, Inc., Company Guaranteed Notes
(Callable 09/15/04 @ $105.50)~ (B- , B3) 09/15/09 11.000 85,500
--------------
296,945
--------------
RETAIL-FOOD & DRUG (1.4%)
100 Great Atlantic & Pacific Tea Company, Inc., Notes (B , B3) 04/15/07 7.750 91,500
95 Nutritional Sourcing Corp., Notes
(Callable 06/05/04 @ $102.00) (NR , NR) 08/01/09 10.125 70,560
110 Pantry, Inc., Company Guaranteed Notes
(Callable 10/15/03 @ $103.42) (B- , B3) 10/15/07 10.250 113,300
100 Rite Aid Corp., Rule 144A, Secured Notes
(Callable 05/01/07 @ $104.06)++ (B+ , B2) 05/01/10 8.125 103,500
--------------
378,860
--------------
RETAIL STORES (4.1%)
100 AutoNation, Inc., Global Company Guaranteed Notes (BB+ , Ba2) 08/01/08 9.000 110,750
370 Flooring America, Inc., Series B, Company
Guaranteed Notes (Callable 10/15/03 @ $102.31)@@ (NR , NR) 10/15/07 9.250 37
250 Jostens, Inc., Senior Subordinated Notes
(Callable 05/01/05 @ $106.38) (B , B3) 05/01/10 12.750 288,750
150 Leslie's Poolmart, Rule 144A, Senior Notes
(Callable 07/15/05 @ $102.59)++ (B- , B2) 07/15/08 10.375 150,750
100 Michaels Stores, Inc., Senior Notes
(Callable 07/01/05 @ $104.62) (BB+ , Ba1) 07/01/09 9.250 108,750
100 Pep Boys - Manny, Moe & Jack, Notes (BB- , B2) 06/01/05 7.000 101,500
125 Pep Boys - Manny, Moe & Jack, Series MTNB, Notes (BB- , B2) 07/07/06 6.920 125,937
</Table>
See Accompanying Notes to Financial Statements.
26
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ----- --------------
RETAIL STORES -- (CONTINUED)
$ 100 Petco Animal Supplies, Inc., Global Senior
Subordinated Notes (Callable 11/01/06 @ $105.38) (B , B2) 11/01/11 10.750 $ 113,500
100 United Auto Group, Inc., Global Company Guaranteed
Notes (Callable 03/15/07 @ $104.81) (B , B3) 03/15/12 9.625 107,625
--------------
1,107,599
--------------
SATELLITE (1.3%)
100 EchoStar DBS Corp., Senior Notes
(Callable 02/01/04 @ $104.69) (BB- , Ba3) 02/01/09 9.375 106,875
100 Pegasus Communications Corp., Series B, Senior
Notes (Callable 12/01/03 @ $103.25) (CCC- , Ca) 12/01/06 9.750 81,500
250 Pegasus Satellite Communication, Global Senior
Discount Notes (Callable 03/01/04 @ $106.75)+ (CCC- , C) 03/01/07 13.500 162,500
--------------
350,875
--------------
SECONDARY OIL & GAS PRODUCERS (3.4%)
100 Compton Petroleum Corp., Global Senior Notes
(Callable 05/15/06 @ $104.95) (B , B2) 05/15/09 9.900 107,500
100 Continental Resources, Inc., Company Guaranteed Notes
(Callable 08/01/04 @ $103.42) (CCC+ , Caa1) 08/01/08 10.250 98,750
86 Magnum Hunter Resources, Inc., Company Guaranteed
Notes (Callable 06/01/04 @ $101.67) (B+ , B2) 06/01/07 10.000 89,225
100 Magnum Hunter Resources, Inc., Global Company
Guaranteed Notes (Callable 03/15/07 @ $104.80) (B+ , B2) 03/15/12 9.600 106,500
100 Plains Exploration & Production Co., Series B,
Global Company Guaranteed Notes
(Callable 07/01/07 @ $104.38) (B , B2) 07/01/12 8.750 104,000
209 Southwest Royalties, Inc., Company Guaranteed Notes+ (NR , NR) 06/30/04 11.500 209,523
100 Vintage Petroleum, Inc., Global Senior
Subordinated Notes (Callable 05/15/06 @ $ 103.94) (B , B1) 05/15/11 7.875 101,500
100 Wiser Oil Co., Company Guaranteed Notes
(Callable 05/15/04 @ $101.58) (CCC+ , Caa3) 05/15/07 9.500 90,000
--------------
906,998
--------------
SERVICES (4.7%)
250 Ameriserve Finance Trust, Rule 144A, Senior
Secured Notes (Callable 09/15/03 @ $106.00)@@,++ (NR , NR) 09/15/06 12.000 13,750
250 Brand Services, Inc., Global Company Guaranteed Notes
(Callable 10/15/07 @ $106.00) (B- , B3) 10/15/12 12.000 281,563
100 IESI Corp., Global Company Guaranteed Notes
(Callable 06/15/07 @ $105.12) (B- , B3) 06/15/12 10.250 106,500
150 Iron Mountain, Inc., Company Guaranteed Notes
(Callable 01/15/08 @ $103.88) (B , B2) 01/15/15 7.750 153,750
350 La Petite Academy, Inc., Series B, Company
Guaranteed Notes (Callable 05/15/04 @ $103.33) (CC , Ca) 05/15/08 10.000 211,750
150 Mail-Well, Inc., Series B, Company Guaranteed
Notes (Callable 12/15/03 @ $104.38) (B , B3) 12/15/08 8.750 144,000
100 Morton's Restaurant Group, Inc., Rule 144A,
Secured Notes (Callable 07/01/07 @ $105.30)++ (B , B2) 07/01/10 7.500 88,000
100 Muzak LLC/Muzak Finance Corp., Rule 144A, Senior
Notes (Callable 02/15/06 @ $105.00)++ (B , B3) 02/15/09 10.000 106,000
150 United Rentals, Inc., Series B, Company Guaranteed
Notes (Callable 01/15/04 @ $104.62)~ (B+ , B2) 01/15/09 9.250 150,000
--------------
1,255,313
--------------
</Table>
See Accompanying Notes to Financial Statements.
27
<Page>
<Table>
<Caption>
PAR RATINGS#
(000) (S&P / MOODY'S) MATURITY RATE% VALUE
- --------- --------------- -------- ----- --------------
TECHNOLOGY (0.7%)
$ 100 Lucent Technologies, Inc., Notes~ (B- , Caa1) 07/15/06 7.250 $ 95,500
100 Lucent Technologies, Inc., Notes (B- , Caa1) 11/15/08 5.500 83,750
--------------
179,250
--------------
TEXTILE/APPAREL/SHOE MANUFACTURING (0.8%)
700 Advanced Glassfiber Yarns LLC, Senior Subordinated
Notes (Callable 01/15/04 @ $105.06)@@ (NR , C) 01/15/09 9.875 39,375
100 BGF Industries, Inc., Series B, Senior Subordinated
Notes (Callable 01/15/04 @ $105.25) (CC , Ca) 01/15/09 10.250 71,500
100 Levi Strauss & Co., Global Senior Notes
(Callable 12/15/07 @ $106.12) (BB- , B3) 12/15/12 12.250 92,000
--------------
202,875
--------------
TRANSPORTATION/OTHER (0.4%)
100 Overseas Shipholding Group, Inc., Rule 144A,
Senior Notes (Callable 03/15/08 @ $104.12)++ (BB+ , Ba1) 03/15/13 8.250 103,500
--------------
UTILITIES (1.9%)
100 Calpine Corp., Senior Notes (CCC+ , B1) 04/15/09 7.750 73,500
100 CMS Energy Corp., Senior Notes (B+ , B3) 01/15/09 7.500 96,125
150 Cogentrix Energy, Inc., Series B, Company
Guaranteed Notes (BB , B1) 10/15/08 8.750 129,750
100 Mirant Americas Generation LLC, Senior Notes@@ (D , Caa3) 05/01/06 7.625 74,000
100 Mirant Corp., Rule 144A, Senior Notes++, @@, ~ (B , Ca) 07/15/04 7.400 45,500
100 PG&E Corp., Rule 144A, Secured Notes
(Callable 07/15/06 @ $103.44)++ (NR , NR) 07/15/08 6.875 102,000
--------------
520,875
--------------
WIRELESS (3.5%)
250 AirGate PCS, Inc., Senior Subordinated Notes
(Callable 10/01/04 @ $106.75)+ (CC , Caa2) 10/01/09 13.500 151,250
100 Centennial Cellular Corp., Senior Subordinated Notes
(Callable 12/15/03 @ $105.38) (CCC , Caa2) 12/15/08 10.750 96,000
600 iPCS, Inc., Senior Discount Notes
(Callable 07/15/05 @ $107.00)@@, + (D , Ca) 07/15/10 14.000 39,000
200 Nextel Communications, Inc., Senior Discount Notes
(Callable 02/15/04 @ $103.32) (B+ , B2) 02/15/08 9.950 210,500
150 Nextel Partners, Inc., Rule 144A, Senior Notes
(Callable 07/01/07 @ $104.06)++, ~ (CCC+ , Caa1) 07/01/11 8.125 145,500
200 Triton PCS, Inc., Global Company Guaranteed Notes
(Callable 11/15/06 @ $104.38)~ (B- , B3) 11/15/11 8.750 203,000
150 U.S. Unwired, Inc., Series B, Company Guaranteed Notes
(Callable 11/01/04 @ $106.69)+ (C , Caa2) 11/01/09 13.375 84,000
--------------
929,250
--------------
TOTAL CORPORATE BONDS (Cost $32,427,053) 26,984,090
--------------
<Caption>
NUMBER
OF SHARES
- ---------
COMMON STOCKS (2.1%)
AUTOMOBILE MANUFACTURING/VEHICLE PARTS (0.0%)
413,097 Cambridge Industries Liquidating Trust* 2,065
--------------
CABLE (0.6%)
4,126 NTL, Inc.* 166,030
--------------
ENERGY - OTHER (0.0%)
3,914 Eagle Geophysical, Inc.*, ^ 9,785
--------------
</Table>
See Accompanying Notes to Financial Statements.
28
<Page>
<Table>
<Caption>
NUMBER
OF SHARES VALUE
- --------- --------------
INDUSTRIAL - OTHER (0.0%)
287 First Wave Marine, Inc.*, ^ $ 1,794
--------------
RETAIL-FOOD & DRUG (0.1%)
682 Archibald Candy Corp.*, ^ 17,050
--------------
RETAIL STORES (0.0%)
8,710 Safelite Glass Corp., Class B*, ^ 435
588 Safelite Realty Corp.*, ^ 6
--------------
441
--------------
SECONDARY OIL & GAS PRODUCERS (0.2%)
3,135 Southwest Royalties, Inc.*, ^ 47,433
--------------
TEXTILE/APPAREL/SHOE MANUFACTURING (0.5%)
24,285 HCI Direct, Inc.*, ^ 121,425
2,800 Worldtex, Inc*, ^ 5,600
--------------
127,025
--------------
WIRELESS (0.7%)
19,309 Dobson Communications Corp., Class A* 177,643
--------------
TOTAL COMMON STOCKS (Cost $1,921,441) 549,266
--------------
PREFERRED STOCKS (1.5%)
BROADCAST/OUTDOOR (0.9%)
2,600 Paxson Communications Corp. 232,050
--------------
CABLE (0.0%)
8 Adelphia Business Solutions, Inc., Series B*, @@ 0
11,890 DIVA Systems Corp., Series C* 119
4 NTL Europe, Inc.* 12
--------------
131
--------------
ENERGY - OTHER (0.1%)
150 Metretek Technologies, Inc., Series B*, ^ 30,000
--------------
GAMING (0.0%)
1,145 Peninsula Gaming LLC* 6,871
--------------
RESTAURANTS (0.0%)
10,084 AmeriKing, Inc.* 101
--------------
SERVICES (0.0%)
14,036 Source Media, Inc.* 14
--------------
TEXTILE/APPAREL/SHOE MANUFACTURING (0.1%)
857 Worldtex, Inc*, ^ 25,710
--------------
WIRELESS (0.4%)
300 Dobson Communications Corp., Rule 144A*, ++ 51,300
880 Rural Cellular Corp., Series B 63,360
--------------
114,660
--------------
TOTAL PREFERRED STOCKS (Cost $1,130,923) 409,537
--------------
WARRANTS (0.0%)
CABLE (0.0%)
7,581 DIVA Systems Corp., Rule 144A, strike $0.01 expires March 2008*, ++, ^ 76
--------------
</Table>
See Accompanying Notes to Financial Statements.
29
<Page>
<Table>
<Caption>
NUMBER
OF SHARES VALUE
- --------- --------------
COMPETITIVE LOCAL EXCHANGE CARRIER (CLEC) (0.0%)
500 Carrier1 International, Rule 144A, strike $6.71 expires February 2009* $ 5
2,960 Loral Space & Communications, Ltd., strike $2.37 expires December 2006* 29
--------------
34
--------------
ELECTRONICS/INFORMATION/DATA TECHNOLOGY (0.0%)
500 Orbital Imaging Corp., Rule 144A, strike $1.00 expires March 2005*,++ 250
--------------
ENERGY - OTHER (0.0%)
15,000 Metretek Technologies, Inc., strike $4.00 expires September 2003*, ^ 150
--------------
RESTAURANTS (0.0%)
175 New World Restaurant Group, Inc., strike $13.00 expires June 2006* 2
--------------
RETAIL STORES (0.0%)
21,345 Safelite Glass Corp., Class A, strike $6.50 expires January 2010*, ^ 214
14,230 Safelite Glass Corp., Class B, strike $6.50 expires January 2010*, ^ 142
--------------
356
--------------
WIRELESS (0.0%)
500 AirGate PCS, Inc., strike $0.01 expires October 2009* 1,875
500 iPCS, Inc., Rule 144A, strike $5.50 expires July 2010*,++ 5
300 Metricom, Inc., strike $87.00 expires February 2010* 3
--------------
1,883
--------------
TOTAL WARRANTS (Cost $101,765) 2,751
--------------
SHORT-TERM INVESTMENT (5.8%)
1,562,940 AIM Institutional Fund - Liquid Asset Portfolio~~
(Cost $1,562,940) 1,562,940
--------------
TOTAL INVESTMENTS AT VALUE (110.4%) (Cost $37,144,122) 29,508,584
--------------
LIABILITIES IN EXCESS OF OTHER ASSETS (-10.4%) (2,779,373)
--------------
NET ASSETS (100.0%) $ 26,729,211
==============
</Table>
# Credit ratings given by the Standard & Poor's Division of The McGraw-Hill
Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are
unaudited.
+ Step Bond -- The interest stated is as of August 31, 2003 and will reset at a
future date.
++ Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At August 31, 2003
these securities amounted to a value of $3,326,949 or 12.4% of net assets.
@@ Security in default.
* Non-income producing security.
~ Security or portion thereof is out on loan.
~~ Represents security purchased with cash collateral received for securities on
loan.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by the Board of Directors.
** Company filed for bankruptcy on 12/3/02.
See Accompanying Notes to Financial Statements.
30
<Page>
CREDIT SUISSE INSTITUTIONAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 2003
<Table>
<Caption>
FIXED HIGH
INCOME FUND YIELD FUND
------------- -------------
ASSETS
Investments at value, including collateral for securities on loan of $10,564,305 and
$1,562,940, respectively (cost $167,873,171 and $37,144,122, respectively)(Note 1) $ 168,570,783(1) $ 29,508,584(2)
Cash 109 8,053
Receivable for investments sold 8,427,463 103,257
Dividend and interest receivable 1,343,808 665,852
Receivable from investment adviser -- 18,234
Prepaid expenses and other assets 56,825 16,356
------------- -------------
Total Assets 178,398,988 30,320,336
------------- -------------
LIABILITIES
Advisory fee payable (Note 2) 31,277 --
Administrative services fee payable (Note 2) 17,574 7,346
Payable for investments purchased 26,225,821 18,775
Payable upon return of securities loaned (Note 1) 10,564,305 1,562,940
Unrealized depreciation on forward currency contracts (Note 1) 152,714 --
Payable for fund shares redeemed 93,213 91,144
Variation margin payable (Note 1) 12,890 --
Interest payable -- 7,445
Loan payable (Note 3) -- 1,872,000
Other accrued expenses payable 60,939 31,475
------------- -------------
Total Liabilities 37,158,733 3,591,125
------------- -------------
NET ASSETS
Capital stock, $0.001 par value (Note 5) 9,895 2,604
Paid-in capital (Note 5) 174,639,676 78,302,509
Undistributed net investment income 1,753,149 1,231,598
Accumulated net realized loss from investments, futures
transactions and foreign currency transactions (35,736,018) (45,171,962)
Net unrealized appreciation (depreciation) from investments, futures
transactions and foreign currency translations 573,553 (7,635,538)
------------- -------------
Net Assets $ 141,240,255 $ 26,729,211
============= =============
Shares outstanding 9,895,369 2,604,020
------------- -------------
Net asset value, offering price, and redemption price per share $ 14.27 $ 10.26
============= =============
</Table>
(1) Including $10,262,047 of securities on loan.
(2) Including $1,511,263 of securities on loan.
See Accompanying Notes to Financial Statements.
31
<Page>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2003
<Table>
<Caption>
FIXED HIGH
INCOME FUND YIELD FUND
------------- -------------
INVESTMENT INCOME (Note 1)
Dividends $ 85,587 $ 45,322
Interest 9,924,969 8,038,282
Securities lending 56,072 18,997
------------- -------------
Total investment income 10,066,628 8,102,601
------------- -------------
EXPENSES
Investment advisory fees (Note 2) 814,838 522,534
Administrative services fees (Note 2) 179,575 99,291
Custodian fees 70,083 23,979
Legal fees 50,829 45,898
Printing fees (Note 2) 41,001 23,084
Audit fees 32,774 23,478
Registration fees 23,785 26,466
Insurance expense 17,921 9,924
Transfer agent fees 14,178 9,885
Directors' fees 11,537 11,515
Interest expense 8,840 19,199
Miscellaneous expense 11,827 6,272
------------- -------------
Total expenses 1,277,188 821,525
Less: fees waived (Note 2) (299,383) (299,045)
------------- -------------
Net expenses 977,805 522,480
------------- -------------
Net investment income 9,088,823 7,580,121
------------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS,
FUTURES CONTRACTS AND FOREIGN CURRENCY RELATED ITEMS
Net realized loss from investments (5,819,574) (6,051,826)
Net realized gain from futures contracts 1,276,230 --
Net realized gain from foreign currency transactions 423,714 --
Net change in unrealized appreciation (depreciation) from investments 14,090,439 11,745,307
Net change in unrealized appreciation (depreciation) from futures contracts 57,254 --
Net change in unrealized appreciation (depreciation) from foreign currency
translations (152,715) --
------------- -------------
Net realized and unrealized gain from investments, futures contracts and
foreign currency related items 9,875,348 5,693,481
------------- -------------
Net increase in net assets resulting from operations $ 18,964,171 $ 13,273,602
============= =============
</Table>
See Accompanying Notes to Financial Statements.
32
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FIXED INCOME FUND HIGH YIELD FUND
-------------------------------- -------------------------------
FOR THE YEAR ENDED AUGUST 31, FOR THE YEAR ENDED AUGUST 31,
2003 2002 2003 2002
-------------- -------------- ------------- -------------
FROM OPERATIONS
Net investment income $ 9,088,823 $ 25,104,303 $ 7,580,121 $ 10,667,959
Net realized loss from investments, futures
contracts and foreign currency transactions (4,119,630) (19,914,987) (6,051,826) (23,260,912)
Net change in unrealized appreciation
(depreciation) from investments, futures
contracts and foreign currency translations 13,994,978 (20,405,640) 11,745,307 5,900,085
-------------- -------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations 18,964,171 (15,216,324) 13,273,602 (6,692,868)
-------------- -------------- ------------- -------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (13,658,022) (26,229,334) (9,351,559) (10,578,107)
Distributions from net realized gains -- (13,093,545) -- --
-------------- -------------- ------------- -------------
Net decrease in net assets from dividends
and distributions (13,658,022) (39,322,879) (9,351,559) (10,578,107)
-------------- -------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5)
Proceeds from sale of shares 18,386,288 52,659,591 23,594,172 51,739,931
Reinvestment of dividends and distributions 13,267,833 38,737,562 3,822,498 8,243,070
Net asset value of shares redeemed (171,583,121) (293,621,793) (91,455,967) (53,873,881)
-------------- -------------- ------------- -------------
Net increase (decrease) in net assets from
capital share transactions (139,929,000) (202,224,640) (64,039,297) 6,109,120
-------------- -------------- ------------- -------------
Net decrease in net assets (134,622,851) (256,763,843) (60,117,254) (11,161,855)
NET ASSETS
Beginning of year 275,863,106 532,626,949 86,846,465 98,008,320
-------------- -------------- ------------- -------------
End of year $ 141,240,255 $ 275,863,106 $ 26,729,211 $ 86,846,465
============== ============== ============= =============
UNDISTRIBUTED NET INVESTMENT INCOME $ 1,753,149 $ 5,128,511 $ 1,231,598 $ 2,345,554
============== ============== ============= =============
</Table>
See Accompanying Notes to Financial Statements.
33
<Page>
CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
(FOR AN INSTITUTIONAL CLASS SHARE OF THE FUND OUTSTANDING THROUGHOUT EACH YEAR)
<Table>
<Caption>
FOR THE YEAR ENDED AUGUST 31,
-----------------------------------------------------------------
2003 2002(1) 2001 2000 1999
--------- --------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 14.12 $ 15.79 $ 14.95 $ 15.01 $ 15.72
--------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income 0.67 0.83 1.02 0.94 0.93
Net gain (loss) on investments, future contracts
and foreign currency related items
(both realized and unrealized) 0.35 (1.27) 0.85 (0.01) (0.56)
--------- --------- --------- --------- ---------
Total from investment operations 1.02 (0.44) 1.87 0.93 0.37
--------- --------- --------- --------- ---------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.87) (0.83) (1.03) (0.97) (0.91)
Distributions from net realized gains -- (0.40) -- (0.02) (0.17)
--------- --------- --------- --------- ---------
Total dividends and distributions (0.87) (1.23) (1.03) (0.99) (1.08)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 14.27 $ 14.12 $ 15.79 $ 14.95 $ 15.01
========= ========= ========= ========= =========
Total return(2) 7.40% (2.92)% 13.02% 6.43% 2.37%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $ 141,240 $ 275,863 $ 532,627 $ 440,345 $ 350,844
Ratio of expenses to average net assets 0.45%(3) 0.45%(3) 0.45%(3) 0.45%(3) 0.44%
Ratio of net investment income to average net assets 4.18% 5.41% 6.71% 6.51% 5.90%
Decrease reflected in above operating expense ratios
due to waivers/reimbursements 0.14% 0.05% 0.06% 0.11% 0.18%
Portfolio turnover rate 519% 526% 449% 520% 569%
</Table>
- ----------
(1) As required, effective September 1, 2001, the Fund adopted the provisions
of AICPA Audit and Accounting Guide for Investment Companies and began
including paydown gains and losses in interest income. The effect of this
change for the year ended August 31, 2002 was to increase net investment
income per share by $0.01, decrease net realized and unrealized gains and
losses per share by $0.01 and increase the ratio of net investment income
to average net assets from 5.37% to 5.41%. Per share ratios and
supplemental data for prior periods have not been restated to reflect this
change.
(2) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
(3) Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements had no effect on the Fund's
expense ratio. For the year ended August 31, 2003, there were no transfer
agent credits.
See Accompanying Notes to Financial Statements.
34
<Page>
CREDIT SUISSE INSTITUTIONAL HIGH YIELD FUND
FINANCIAL HIGHLIGHTS
(FOR AN INSTITUTIONAL CLASS SHARE OF THE FUND OUTSTANDING THROUGHOUT EACH YEAR)
<Table>
<Caption>
FOR THE YEAR ENDED AUGUST 31,
-----------------------------------------------------------------
2003 2002 2001 2000 1999
--------- --------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 9.90 $ 11.84 $ 14.11 $ 15.32 $ 16.60
--------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income 1.14 1.17 1.40 1.41 1.42
Net gain (loss) on investments
(both realized and unrealized) 0.41 (1.94) (2.21) (1.13) (1.33)
--------- --------- --------- --------- ---------
Total from investment operations 1.55 (0.77) (0.81) 0.28 0.09
--------- --------- --------- --------- ---------
LESS DIVIDENDS
Dividends from net investment income (1.19) (1.17) (1.46) (1.49) (1.37)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.26 $ 9.90 $ 11.84 $ 14.11 $ 15.32
========= ========= ========= ========= =========
Total return(1) 16.96% (6.88)% (5.71)% 1.84% 0.67%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000s omitted) $ 26,729 $ 86,846 $ 98,008 $ 94,333 $ 95,129
Ratio of expenses to average net assets 0.70%(2) 0.70%(2) 0.70%(2) 0.70%(2) 0.69%
Ratio of net investment income to average net assets 10.15% 10.15%(3) 11.06% 9.59% 9.10%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.40% 0.27% 0.30% 0.45% 0.35%
Portfolio turnover rate 56% 52% 20% 31% 40%
</Table>
- ----------
(1) 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.
(2) Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements had no effect on the Fund's
expense ratio. For the year ended August 31, 2003, there were no transfer
agent credits.
(3) During the year ended August 31, 2002, the Fund experienced an increase in
its interest income of 0.67% as a result of additional accretion income not
accrued for in prior periods. The Fund's net investment income ratio
disclosed above excludes the effect of the increase.
See Accompanying Notes to Financial Statements.
35
<Page>
CREDIT SUISSE INSTITUTIONAL FUNDS
NOTES TO FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Credit Suisse Institutional Funds are non-diversified, open-end
management investment companies registered under the Investment Company Act of
1940, as amended, and are currently comprised of Credit Suisse Institutional
Fixed Income Fund ("Fixed Income"), and Credit Suisse Institutional High Yield
Fund ("High Yield") (each, a "Fund" and collectively, the "Funds"). Each Fund
was incorporated under the laws of the State of Maryland on July 31, 1998.
Fixed Income and High Yield seek high total return as their investment
objective.
Fixed Income and High Yield are each authorized to offer three classes of
shares, Common Class, Advisor Class and Institutional Class shares, although
each Fund currently offers only Institutional Class shares.
A) SECURITY VALUATION -- The net asset value of each Fund is
determined daily as of the close of regular trading on the New York Stock
Exchange, Inc. (the "Exchange") on each day the Exchange is open for
business. 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.
Each Fund's equity investments are valued at market value, which is
generally determined using the closing price on the exchange or market on
which the security is primarily traded at the time of valuation (the
"Valuation Time"). If no sales are reported, equity investments are
generally valued at the most recent bid quotation as of the Valuation Time
or at the lowest asked quotation in the case of a short sale of securities.
Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by the Board
of Directors under procedures established by the Board of Directors in the
absence of readily ascertainable market values. Debt obligations that will
mature in 60 days or less are valued on the basis of amortized cost, which
approximates market value, unless it is determined that this method would
not represent fair value.
B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Funds
are maintained in U.S. dollars. Transactions denominated in foreign
currencies are recorded at the current prevailing exchange rates. All
assets and liabilities denominated in foreign currencies are translated
into U.S. dollar amounts at the current exchange rate at the end of the
period. Translation gains or losses resulting from changes in the exchange
rate during the reporting period and realized gains and losses on the
settlement of foreign currency transactions are reported in the results of
operations for the current period. The Funds do not isolate that portion of
realized gains and losses on investments in equity securities which is due
to changes in the foreign exchange rate from that which is due to changes
in market prices of equity securities. The Funds isolate that portion of
realized gains and losses on investments in debt securities which is due to
changes in the foreign exchange rate from that which is due to changes in
market prices of debt securities.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security
transactions are accounted for on a trade date basis. Interest income is
recorded on the accrual basis. Dividends are recorded on the ex-dividend
date. The cost of investments sold is determined by use of the specific
identification method for both financial reporting and income tax purposes.
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income are declared and paid quarterly. Distributions of net
realized capital gains, if any, are declared and paid at least annually.
However, to the extent that a net realized capital gain can be reduced by a
capital loss carryforward, such gain will not be distributed. Income and
capital gain distributions are determined in accordance with federal income
tax regulations which may differ from accounting principles generally
accepted in the United States of America ("GAAP").
E) FEDERAL INCOME TAXES -- No provision is made for federal taxes as
it is each Fund's intention to continue to qualify for and elect the tax
treatment applicable to regulated investment companies under the Internal
Revenue Code of 1986, as amended, and make the requisite distributions to
its shareholders, which will be sufficient to relieve it from federal
income and excise taxes.
36
<Page>
F) USE OF ESTIMATES -- The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
G) SHORT-TERM INVESTMENTS -- The Funds, together with other
funds/portfolios advised by Credit Suisse Asset Management, LLC ("CSAM"),
an indirect, wholly-owned subsidiary of Credit Suisse Group, pool available
cash into either a short-term variable rate time deposit issued by State
Street Bank and Trust Company ("SSB"), the Funds' custodian, or a money
market fund advised by CSAM. The short-term time deposit issued by SSB is a
variable rate account classified as a short-term investment.
H) FORWARD FOREIGN CURRENCY CONTRACTS -- Each Fund may enter into
forward foreign currency contracts for the purchase or sale of a specific
foreign currency at a fixed price on a future date. Risks may arise upon
entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency. Each Fund will enter into
forward foreign currency contracts primarily for hedging purposes. Forward
foreign currency contracts are adjusted by the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial
statement purposes as unrealized until the contract settlement date or an
offsetting position is entered into. At August 31, 2003, Fixed Income had
the following open forward foreign currency contracts:
<Table>
<Caption>
FOREIGN
EXPIRATION CURRENCY TO BE CONTRACT CONTRACT UNREALIZED
FORWARD FOREIGN CURRENCY CONTRACT DATE PURCHASED/(SOLD) AMOUNT VALUE GAIN (LOSS)
--------------------------------- ---------- ---------------- ------------- ------------ -----------
Canadian Dollar 9/5/03 C$ 4,300,000 $ 3,123,684 $ 3,103,892 $ (19,792)
Canadian Dollar 9/5/03 C$ (1,900,000) (1,347,231) (1,371,487) (24,256)
Canadian Dollar 9/5/03 C$ (2,400,000) (1,729,493) (1,732,405) (2,912)
European Economic Unit 9/5/03 EURO 1,300,000 1,524,666 1,428,877 (95,789)
European Economic Unit 9/5/03 EURO 230,000 263,833 252,801 (11,032)
European Economic Unit 9/5/03 EURO 608,000 697,437 668,275 (29,162)
European Economic Unit 9/5/03 EURO 246,000 279,948 270,388 (9,560)
European Economic Unit 9/5/03 EURO (661,000) (748,219) (726,529) 21,690
European Economic Unit 9/5/03 EURO (639,000) (722,358) (702,348) 20,010
European Economic Unit 9/5/03 EURO (230,000) (261,280) (252,801) 8,479
European Economic Unit 9/5/03 EURO (854,000) (928,272) (938,663) (10,391)
------------- ------------ ----------
$ 152,715 $ -- $ (152,715)
============= ============ ==========
</Table>
I) TBA PURCHASE COMMITMENTS -- Each Fund may enter into "TBA" (to be
announced) purchase commitments to purchase securities for a fixed price at
a future date, typically not exceeding 45 days. TBA purchase commitments
may be considered securities in themselves, and involve a risk of loss if
the value of the security to be purchased declines prior to settlement
date. This risk is in addition to the risk of decline in the Fund's other
assets. Unsettled TBA purchase commitments are valued at the current market
value of the underlying securities, according to the procedures described
under "Security Valuation" above.
J) FUTURES -- Each Fund may enter into futures contracts to the extent
permitted by its investment policies and objectives. Upon entering into a
futures contract, each Fund is required to deposit cash or pledge U.S.
Government securities as initial margin. Subsequent payments, which are
dependent on the daily fluctuations in the value of the underlying
instrument, are made or received by the Fund each day (daily variation
margin) and are recorded as unrealized gains or losses until the contracts
are closed. When the contracts are closed, the Fund records a realized gain
or loss equal to the difference between the proceeds from (or cost of) the
closing transactions and the Fund's basis in the contract. Risks of
entering into futures contracts for hedging purposes include the
possibility that a change in the value of the contract may not correlate
with the changes in the value of the underlying instruments.
37
<Page>
In addition, the purchase of a futures contract involves the risk that the
Fund could lose more than the original margin deposit and subsequent
payments required for a futures transaction. At August 31, 2003, Fixed
Income had the following open futures contracts:
<Table>
<Caption>
UNREALIZED
FUTURES NUMBER OF EXPIRATION CONTRACT CONTRACT APPRECIATION/
CONTRACTS CONTRACTS DATE AMOUNT VALUE (DEPRECIATION)
---------- --------- ---------- --------------- --------------- ---------------
US Treasury Bond Futures 37 12/19/03 $ 3,881,753 $ 3,922,000 $ 40,247
US Treasury 2 Year Notes Futures 75 12/29/03 15,962,466 15,978,516 16,050
--------------- --------------- ---------------
19,844,219 19,900,516 56,297
--------------- --------------- ---------------
US Treasury 10 Year Notes Futures (25) 12/19/03 (2,722,897) (2,742,969) (20,072)
US Treasury 5 Year Notes Futures (14) 12/19/03 (1,530,400) (1,538,031) (7,631)
--------------- --------------- ---------------
(4,253,297) (4,281,000) (27,703)
--------------- --------------- ---------------
$ 15,590,922 $ 15,619,516 $ 28,594
=============== =============== ===============
</Table>
K) 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 each Fund in connection with
securities lending activity may be invested in a variety of investments,
including certain CSAM-advised funds or the AIM Institutional Funds-Liquid
Asset Portfolio. 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.
The market value of securities on loan to brokers and the value of
collateral held by each Fund with respect to such loans at August 31, 2003
are as follows:
<Table>
<Caption>
MARKET VALUE OF VALUE OF
FUND SECURITIES LOANED COLLATERAL RECEIVED
---- ----------------- --------------------
Fixed Income $ 10,262,047 $ 10,564,305
High Yield 1,511,263 1,562,940
</Table>
Credit Suisse First Boston ("CSFB"), an affiliate of CSAM, has been
engaged by the Funds to act as each Fund's securities lending agent. Prior
to April 1, 2003, CSFB had agreed to charge the Funds fees for its
securities lending activities equal to its costs in providing services as
securities lending agent and had voluntarily waived such fees through March
31, 2003. Effective April 1, 2003, the Funds and CSFB entered into an
arrangement to share the income earned from securities lending activities,
whereby, generally, the Funds will receive 75% and CSFB will receive 25% of
the income, in accordance with the provisions of the securities lending
agency agreement. If CSFB should enter into a securities lending agency
agreement with another comparable investment company client under which it
will receive a smaller proportion of the fees, its fee agreement with the
Funds shall be reduced to such lower fee amount.
L) OTHER -- Lower-rated debt securities (commonly known as "junk
bonds") possess speculative characteristics and are subject to greater
market fluctuations and risk of lost income and principal than higher-rated
debt securities for a variety of reasons. Also, during an economic downturn
or substantial period of rising interest rates, highly leveraged issuers
may experience financial stress which would adversely affect their ability
to service their principal and interest payment obligations, to meet
projected business goals and to obtain additional financing.
In addition, periods of economic uncertainty and changes can be
expected to result in increased volatility of market prices of lower-rated
debt securities and (to the extent a Fund invests in junk bonds) each
Fund's net asset value.
The Funds may invest in securities of foreign countries and
governments which involve certain risks in addition to those inherent in
domestic investments. Such risks generally include, among others, currency
risks (fluctuations in currency exchange rates), information risk (key
information may be inaccurate or unavailable) and political risk
(expropriation, nationalization or the imposition of capital or currency
controls or punitive taxes). Other risks of investing in foreign securities
include liquidity and valuation risks.
38
<Page>
The Funds may be subject to taxes imposed by countries in which they
invest, with respect to their investments in issuers existing or operating
in such countries. Such taxes are generally based on income earned or
repatriated and capital gains realized on the sale of such investments. The
Funds accrue such taxes when the related income or gains are earned.
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for each Fund. For its investment
advisory services, CSAM is entitled to receive a fee from each Fund based on the
following fee schedule:
<Table>
<Caption>
FUND ANNUAL RATE
---------------------------- ----------------------------------
Fixed Income 0.375% of average daily net assets
High Yield 0.70% of average daily net assets
</Table>
For the year ended August 31, 2003, investment advisory fees earned and
voluntarily waived for each Fund were as follows:
<Table>
<Caption>
GROSS NET
ADVISORY ADVISORY
FUND FEE WAIVER FEE
---------------------------- --------- ----------- ----------
Fixed Income $ 814,838 $ (299,383) $ 515,455
High Yield 522,534 (299,045) 223,489
</Table>
During the period covered by this report, CSAM determined that the Funds'
advisory contract had lapsed due to an administrative error. CSAM has taken all
necessary steps to remedy this error, including obtaining Board of Directors and
shareholder approval of retention or payment of fees paid or payable to CSAM
during the period the contract had lapsed and approval of a new contract on the
same terms as in the lapsed contract.
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as co-administrators to the Funds.
No compensation is payable by the Funds to CSAMSI for co-administrative
services.
For its co-administrative services, SSB receives a fee, exclusive of
out-of-pocket expenses, based upon the following fee schedule 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.
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL RATE
---------------------------- ----------------------------------
First $5 billion 0.050% of average daily net assets
Next $5 billion 0.035% of average daily net assets
Over $10 billion 0.020% of average daily net assets
</Table>
For the year ended August 31, 2003, co-administrative service fees earned
by SSB (including out-of-pocket expenses) were as follows:
<Table>
<Caption>
FUND CO-ADMINISTRATION FEE
---------------------------- ---------------------
Fixed Income $ 179,575
High Yield 99,291
</Table>
In addition to serving as each Fund's co-administrator, CSAMSI currently
serves as distributor of each Fund's shares without compensation.
For the year ended August 31, 2003, CSFB received fees for its securities
lending activities as follows:
<Table>
<Caption>
FUND AMOUNT
---------------------------- -------
Fixed Income $ 9,155
High Yield 2,230
</Table>
39
<Page>
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Funds to provide certain financial printing and fulfillment services. For
the year ended August 31, 2003, Merrill was paid for its services to the Funds
as follows:
<Table>
<Caption>
FUND AMOUNT
---------------------------- --------
Fixed Income $ 13,212
High Yield 13,212
</Table>
NOTE 3. LINE OF CREDIT
The Funds, together with other funds/portfolios advised by CSAM
(collectively, the "Participating Funds"), participate in a $100 million
committed, unsecured line of credit facility ("Credit Facility") for temporary
or emergency purposes with Deutsche Bank, A.G. as administrative agent and
syndication agent and SSB as operations agent. Under the terms of the Credit
Facility, the Participating Funds pay an aggregate commitment fee at a rate of
0.10% per annum on the average unused amount of the Credit Facility, which is
allocated among the Participating Funds in such manner as is determined by the
governing Boards of the Participating Funds. In addition, the Participating
Funds pay interest on borrowings at the Federal Funds rate plus 0.50%. At August
31, 2003, High Yield had a loan outstanding under the Credit Facility of
$1,852,000. During the year ended August 31, 2003, the Funds had borrowings
under the Credit Facility as follows:
<Table>
<Caption>
WEIGHTED
AVERAGE MAXIMUM
AVERAGE DAILY INTEREST DAILY LOAN
FUND LOAN BALANCE RATE % OUTSTANDING
---------------- ------------- --------- ------------
Fixed Income $ 1,735,000 1.624% $ 1,770,000
High Yield 3,054,793 1.712% 9,162,000
</Table>
NOTE 4. PURCHASES AND SALES OF SECURITIES
For the year ended August 31, 2003, purchases and sales of investment
securities (excluding short-term investments) and U.S. Government and Agency
Obligations were as follows:
<Table>
<Caption>
INVESTMENTS U.S. GOVERNMENT AND AGENCY OBLIGATIONS
--------------------------------------- ---------------------------------------
FUND PURCHASES SALES PURCHASES SALES
------------- ------------------ ------------------ ------------------ ------------------
Fixed Income $ 1,118,245,742 $ 1,231,866,053 $ 926,028,025 $ 1,112,023,491
High Yield 39,573,633 101,700,938 -- --
</Table>
In connection with a review of the Funds, CSAM has become aware of certain
portfolio transactions that CSAM has determined to examine further. Presently,
CSAM does not believe that any improprieties occurred in connection with these
transactions. If CSAM's further examination reveals that amounts should be paid
to the Funds, CSAM will make the appropriate payments with interest. Presently,
CSAM does not anticipate that any such payments will have a material effect on
either Fund's net asset value per share as of August 31, 2003.
40
<Page>
NOTE 5. CAPITAL SHARE TRANSACTIONS
Fixed Income and High Yield are each authorized to issue three billion full
and fractional shares of capital stock, $.001 par value per share. Transactions
in capital shares for each Fund were as follows:
<Table>
<Caption>
FIXED INCOME HIGH YIELD
---------------------------------------- -----------------------------------------
INSTITUTIONAL CLASS INSTITUTIONAL CLASS
---------------------------------------- -----------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
AUGUST 31, 2003 AUGUST 31, 2002 AUGUST 31, 2003 AUGUST 31, 2002
------------------ ------------------ ------------------ ------------------
Shares sold 1,281,297 3,512,892 2,400,294 4,709,817
Shares issued in reinvestment
of dividends and
distributions 936,435 2,624,602 396,530 766,978
Shares redeemed (11,864,210) (20,325,988) (8,965,487) (4,982,604)
----------- ----------- ---------- ----------
Net increase (decrease) (9,646,478) (14,188,494) (6,168,663) 494,191
=========== =========== ========== ==========
</Table>
On August 31, 2003, the number of shareholders that held 5% or more of the
outstanding shares of each Fund was as follows:
<Table>
<Caption>
NUMBER OF APPROXIMATE PERCENTAGE
FUND SHAREHOLDERS OF OUTSTANDING SHARES
------------ ------------ ----------------------
Fixed Income 3 85%
High Yield 3 71%
</Table>
Some of the shareholders are omnibus accounts, which hold shares on behalf
of several individual shareholders.
NOTE 6. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP. These differences
are primarily due to differing treatments of foreign currency transactions,
losses deferred due to wash sales, Post-October losses and paydowns.
The tax character of dividends and distributions paid during the year ended
August 31, 2003 and 2002 were as follows:
<Table>
<Caption>
ORDINARY INCOME LONG-TERM CAPITAL GAIN
---------------------------------- ----------------------------------
FUND 2003 2002 2003 2002
---- --------------- --------------- --------------- ---------------
Fixed Income $ 13,658,022 $ 37,144,329 $ -- $ 2,178,550
High Yield 9,351,559 10,578,107 -- --
</Table>
At August 31, 2003, the components of distributable earnings on a tax basis
were as follows:
<Table>
<Caption>
FIXED INCOME HIGH YIELD
---------------- ---------------
Undistributed ordinary income $ 1,869,486 $ 1,987,202
Accumulated net realized loss (35,788,313) (40,058,979)
Unrealized appreciation/(depreciation) 563,548 (8,398,323)
Undistributed Capital-Other (54,037) (5,105,802)
---------------- ---------------
$ (33,409,316) $ (51,575,902)
================ ===============
</Table>
At August 31, 2003, the Funds had capital loss carryforwards available to
offset possible future capital gains as follows:
<Table>
<Caption>
EXPIRES AUGUST 31,
--------------------------------------------------------------------------------------------
FUND 2005 2007 2008 2010 2011
---- --------------- --------------- --------------- --------------- ----------------
Fixed Income $ -- $ -- $ -- $ -- $ 35,788,313
High Yield 3,354,749 341,638 1,857,162 9,989,083 24,516,347
</Table>
41
<Page>
Under current tax law, certain capital losses realized after October 31
within a taxable year may be deferred and treated as occurring on the first day
of the following tax year. The Fund will be unable to realize the benefit from
these losses if it cannot realize gains on investments prior to the expiration
of the loss carryforwards. For the tax year ended August 31, 2003, the Funds
elected to defer net losses arising between November 1, 2002 and August 31, 2003
as follows:
<Table>
<Caption>
FUND AMOUNT
------------------- --------------
Fixed Income $ 54,037
High Yield 5,105,802
</Table>
As of August 31, 2003, 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 (depreciation) from investments were as follows:
<Table>
<Caption>
NET UNREALIZED
GROSS UNREALIZED GROSS UNREALIZED APPRECIATION/
FUND IDENTIFIED COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
----------------- --------------- ---------------- ---------------- ---------------
Fixed Income $ 168,007,296 $ 2,869,391 $ (2,305,903) $ 563,488
High Yield 37,906,907 1,347,184 (9,745,507) (8,398,323)
</Table>
At August 31, 2003, accumulated undistributed net investment income,
accumulated net realized gain (loss) from investments and paid-in capital have
been adjusted for current period permanent book/tax differences, which arose
principally from differing book/tax treatments of paydowns, defaulted bonds and
forward foreign currency contracts. Net assets were not affected by these
reclassifications:
<Table>
<Caption>
INCREASE (DECREASE)
-----------------------------------------------------
ACCUMULATED NET
REALIZED GAIN
PAID-IN UNDISTRIBUTED NET (LOSS) ON
FUND CAPITAL INVESTMENT INCOME INVESTMENTS
------------ --------------- ----------------- ---------------
Fixed Income $ -- $ 1,193,837 $ (1,193,837)
High Yield (4,986,021) 657,482 4,328,539
</Table>
42
<Page>
CREDIT SUISSE INSTITUTIONAL FUNDS
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Shareholders of
Credit Suisse Institutional Fixed Income Fund, Inc.;
Credit Suisse Institutional High Yield Fund, Inc.
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Credit Suisse Institutional Fixed
Income Fund, Inc. and Credit Suisse Institutional High Yield Fund, Inc.,
(collectively referred to as the "Funds") at August 31, 2003, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended and the financial highlights for
each of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States of America, which 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 August 31, 2003 by correspondence with the custodian and
brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
October 30, 2003
43
<Page>
CREDIT SUISSE INSTITUTIONAL FIXED INCOME FUND
SHAREHOLDER MEETING RESULTS (UNAUDITED)
A special meeting of shareholders of the Credit Suisse Institutional Fixed
Income Fund (the "Fund") was held at 466 Lexington Avenue, 16th Floor, New York,
NY 10017 on April 11, 2003 adjourned to May 2, 2003 and May 16, 2003. The
following matters were voted upon by the shareholders of the Fund and the
results are presented below. Shares delivered not voted are included in the
total for the proposals. Shareholders approved proposals 1, 2-A and 2-B but did
not approve the remaining proposals.
1. To Elect the Following Nominees as Directors:
<Table>
<Caption>
FOR WITHHELD
--------------- ---------------
Richard H. Francis 9,706,633 1,082,660
Jack W. Fritz 9,705,977 1,083,316
Joseph D. Gallagher 9,705,589 1,083,704
Jeffrey E. Garten 9,712,952 1,076,341
Peter F. Krogh 9,712,952 1,076,341
James S. Pasman, Jr. 9,705,977 1,083,316
Steven N. Rappaport 9,706,633 1,082,660
William W. Priest 9,706,633 1,082,660
Total Eligible Shares 15,839,480
Total Shares Voted 10,789,293
% of Shares Voted 68.12%
</Table>
2-A. To Approve a New Investment Advisory Agreement:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 9,520,745 60.11% 88.24%
Against 30,480 0.19% 0.28%
Abstain 1,238,068 7.82% 11.48%
</Table>
2-B. To Approve the Retention or payment of Fees Paid or payable to CSAM:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 9,490,017 59.91% 87.96%
Against 126,042 0.80% 1.17%
Abstain 1,173,234 7.41% 10.87%
</Table>
3-A. To Modify the Fundamental Investment Restriction on Borrowing Money:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 4,801,563 30.31% 39.85%
Against 6,036,222 38.11% 50.09%
Abstain 1,207,235 7.62% 10.02%
Broker Non-votes 4,565 0.03% 0.04%
</Table>
3-B. To Modify the Fundamental Investment Restriction on Lending:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 4,915,343 31.03% 40.79%
Against 5,998,760 37.87% 49.78%
Abstain 1,130,917 7.14% 9.39%
Broker Non-votes 4,565 0.03% 0.04%
</Table>
44
<Page>
3-C. To Modify the Fundamental Investment Restriction on Real Estate
Investments:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 4,914,334 31.03% 40.78%
Against 5,928,622 37.43% 49.20%
Abstain 1,202,064 7.59% 9.98%
Broker Non-votes 4,565 0.03% 0.04%
</Table>
3-D To Remove the Fundamental Investment Restriction on Pledging Assets:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 4,908,728 30.99% 40.74%
Against 5,926,843 37.42% 49.19%
Abstain 1,209,449 7.64% 10.03%
Broker Non-votes 4,565 0.03% 0.04%
</Table>
4. To Change the Fund's Investment Objective from Fundamental to
Non-Fundamental:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 4,898,334 30.93% 40.65%
Against 5,940,771 37.51% 49.30%
Abstain 1,205,915 7.61% 10.01%
Broker Non-votes 4,565 0.03% 0.04%
</Table>
5. To Amend the Charter Document to Allow Involuntary Redemptions:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 4,921,431 31.07% 40.84%
Against 5,903,738 37.27% 49.00%
Abstain 1,219,851 7.70% 10.12%
Broker Non-votes 4,565 0.03% 0.04%
</Table>
45
<Page>
CREDIT SUISSE INSTITUTIONAL HIGH YIELD FUND
SHAREHOLDER MEETING RESULTS (UNAUDITED)
A special meeting of shareholders of the Credit Suisse Institutional High
Yield Fund (the "Fund") was held at 466 Lexington Avenue, 16th Floor, New York,
NY 10017 on April 11, 2003. The following matters were voted upon by the
shareholders of the Fund and the results are presented below. Shares delivered
not voted are included in the total for the proposals. All proposals were
approved.
1. To Elect the Following Nominees as Directors:
<Table>
<Caption>
FOR WITHHELD
--------------- ------------
Richard H. Francis 6,755,244 6,894
Jack W. Fritz 6,755,244 6,894
Joseph D. Gallagher 6,740,564 21,574
Jeffrey E. Garten 6,754,920 7,218
Peter F. Krogh 6,755,500 6,638
James S. Pasman, Jr. 6,755,133 7,005
Steven N. Rappaport 6,753,394 8,744
William W. Priest 6,733,401 28,737
Total Eligible Shares 8,322,032
Total Shares Voted 6,762,137
% of Shares Voted 81.26%
</Table>
2-A. To Approve a New Investment Advisory Agreement:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 6,739,691 80.99% 99.67%
Against 14,789 0.18% 0.22%
Abstain 7,657 0.09% 0.11%
</Table>
2-B. To Approve the Retention or payment of Fees Paid or payable to CSAM:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 6,688,716 80.37% 98.91%
Against 64,892 0.78% 0.96%
Abstain 8,529 0.10% 0.13%
</Table>
3-A. To Modify the Fundamental Investment Restriction on Borrowing Money:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 6,029,198 72.45% 89.16%
Against 31,200 0.38% 0.46%
Abstain 17,523 0.21% 0.26%
Broker Non-votes 684,216 8.22% 10.12%
</Table>
3-B. To Modify the Fundamental Investment Restriction on Lending:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 6,030,426 72.46% 89.18%
Against 29,972 0.36% 0.44%
Abstain 17,523 0.21% 0.26%
Broker Non-votes 684,216 8.22% 10.12%
</Table>
46
<Page>
3-C. To Modify the Fundamental Investment Restriction on Real Estate
Investments:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 6,045,446 72.64% 89.40%
Against 25,485 0.31% 0.38%
Abstain 6,990 0.08% 0.10%
Broker Non-votes 684,216 8.22% 10.12%
</Table>
3-D. To Remove the Fundamental Investment Restriction on Pledging Assets:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 6,047,182 72.67% 89.42%
Against 23,527 0.28% 0.35%
Abstain 7,212 0.09% 0.11%
Broker Non-votes 684,216 8.22% 10.12%
</Table>
4. To Change the Fund's Investment Objective from Fundamental to
Non-Fundamental:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 5,286,829 63.53% 78.18%
Against 778,404 9.35% 11.51%
Abstain 12,689 0.15% 0.19%
Broker Non-votes 684,216 8.22% 10.12%
</Table>
5. To Amend the Charter Document on Involuntary Redemptions:
<Table>
<Caption>
% OF TOTAL SHARES % OF TOTAL
SHARES OUTSTANDING SHARES VOTED
------------- ----------------- ---------------
For 5,315,605 63.87% 78.61%
Against 749,240 9.00% 11.08%
Abstain 13,076 0.16% 0.19%
Broker Non-votes 684,216 8.22% 10.12%
</Table>
47
<Page>
CREDIT SUISSE INSTITUTIONAL FUNDS
INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED)
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR
- ----------------- ----------- ------------ -------------------- ------------- ----------------
INDEPENDENT DIRECTORS
Richard H. Francis Director, Since Currently retired 44 None
c/o Credit Suisse Asset Nominating and 1999
Management, LLC Audit
466 Lexington Avenue Committee
New York, New York Member
10017-3140
Date of Birth: 04/23/32
Jack W. Fritz Director, Since Private investor; 43 Director of
2425 North Fish Creek Road Nominating and 1998 Consultant and Advo, Inc.
P.O. Box 1287 Audit Director of Fritz (direct mail
Wilson, Wyoming 83014 Committee Broadcasting, Inc. advertising)
Member and Fritz
Date of Birth: 04/22/27 Communications
(developers and
operators of
radio stations)
(1987 - present)
Jeffrey E. Garten Director, Since Dean of Yale 43 Director of
Box 208200 Nominating and 1998 School of Aetna, Inc.;
New Haven, Connecticut Audit Management and Director of
06520-8200 Committee William S. Beinecke Calpine
Member Professor in the Corporation;
Date of Birth: 10/29/46 Practice of Director of
International CarMax Group
Trade and Finance (used car
(11/95 - present) dealers)
</Table>
- ----------
(1) Each Director and Officer serves until his or her respective successor has
been duly elected and qualified.
48
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR
- ----------------- ----------- ------------ -------------------- ------------- ----------------
INDEPENDENT DIRECTORS--(CONTINUED)
Peter F. Krogh Director, Since Dean Emeritus and 43 Director
301 ICC Nominating 2001 Distinguished of Carlisle
Georgetown University and Audit Professor of Companies
Washington, DC 20057 Committee International Affairs Incorporated
Member at the Edmund A. (diversified
Date of Birth: 02/11/37 Walsh School of manufacturing
Foreign Service, company);
Georgetown Member of
University (6/95 - Selection
present); Moderator Committee
of PBS foreign affairs for Truman
television series Scholars and
(1988 - 2000) Henry Luce
Scholars; Senior
Associate of
Center for
Strategic and
International
Studies; Trustee
of numerous
world affairs
organizations
James S. Pasman, Jr. Director, Since Currently retired 45 Director of
c/o Credit Suisse Asset Nominating 1999 Education
Management, LLC and Audit Management
466 Lexington Avenue Committee Corp.
New York, New York Member
10017-3140
Date of Birth: 12/20/30
</Table>
49
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR
- ----------------- ----------- ------------ -------------------- ------------- ----------------
INDEPENDENT DIRECTORS--(CONTINUED)
Steven N. Rappaport Director, Since Partner of Lehigh Court, 45 None
Lehigh Court, LLC Nominating 1999 LLC and RZ Capital
40 East 52nd Street Committee (private investment
New York, New York Member and firms) (7/02 - present);
10022 Audit Consultant to SunGard
Committee Securities Finance, Inc.
Date of Birth: 07/10/48 Chairman from February 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
Joseph D. Gallagher(2) Director, Since Managing Director 46 None
Credit Suisse Asset Chairman of 2003 and Chief Executive
Management, LLC the Board and Officer of CSAM
466 Lexington Avenue Chief Executive since 2003;
New York, New York Officer Chief Executive
10017-3140 Officer and Director
of Credit Suisse
Date of Birth: 12/14/62 Asset Management
Limited, London,
England, from
June 2000 to 2003;
Director of Credit
Suisse Asset
Management Funds
(UK) Limited, London,
England, from
June 2000 to 2003;
Managing Director,
Head -- Asian Corporate
Finance and M&A's,
Credit Suisse First
Boston, Hong Kong,
China, from January
1998 to May 1999
</Table>
- ----------
(2) Mr. Gallagher is a Director who is an "interested person" of the Fund as
defined in the 1940 Act, because he is an officer of CSAM.
50
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR
- ----------------- ----------- ------------ -------------------- ------------- ----------------
INTERESTED DIRECTORS--(CONTINUED)
William W. Priest(3) Director Since Co-managing Partner, 50 None
Steinberg Priest & Sloane 1999 Steinberg Priest &
Capital Management Sloane Capital
12 East 49th Street Management since
12th Floor March 2001;
New York, New York Chairman and Managing
10017 Director of CSAM
from 2000 to
Date of Birth: 09/24/41 February 2001,
Chief Executive Officer
and Managing Director
of CSAM from 1990
to 2000
</Table>
- ----------
(3) Mr. Priest is a Director who is an "interested person" of the Fund as
defined in the 1940 Act, because he provided consulting services to CSAM
within the last two years (ended 12/31/02).
51
<Page>
<Table>
<Caption>
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
Hal Liebes Vice President Since Managing Director and Global General Counsel
Credit Suisse Asset and Secretary 1999 of CSAM; Associated with CSAM since 1997;
Management, LLC Officer of other Credit Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 07/06/64
Michael A. Pignataro Chief Financial Since Director and Director of Fund Administration
Credit Suisse Asset Officer and 1999 of CSAM; Associated with CSAM since 1984;
Management, LLC Treasurer Officer of other Credit Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 11/15/59
Gregory N. Bressler Assistant Since Director and Deputy General Counsel of CSAM;
Credit Suisse Asset Secretary 2000 Associated with CSAM since January 2000;
Management, LLC Associated with the law firm of Swidler Berlin
466 Lexington Avenue Shereff Friedman LLP from 1996 to 2000;
New York, New York Officer of other Credit Suisse Funds
10017-3140
Date of Birth: 11/17/66
</Table>
52
<Page>
<Table>
<Caption>
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--(CONTINUED)
Rocco A. Del Guercio Assistant Since Vice President and Administrative Officer of CSAM;
Credit Suisse Asset Treasurer 1999 Associated with CSAM since June 1996;
Management, LLC Officer of other Credit Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 04/28/63
Joseph Parascondola Assistant Since Assistant Vice President of CSAM; Associated with
Credit Suisse Asset Treasurer 2000 CSAM since April 2000; Assistant Vice President,
Management, LLC Deutsche Asset Management from January 1999 to
466 Lexington Avenue April 2000; Assistant Vice President,
New York, New York Weiss, Peck & Greer LLC from November 1995 to
10017-3140 December 1998; Officer of other Credit Suisse Funds
Date of Birth: 06/05/63
Robert M. Rizza Assistant Since Assistant Vice President of CSAM since January 2001;
Credit Suisse Asset Treasurer 2002 Associated with CSAM since 1998;
Management, LLC Officer of other Credit Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 12/09/65
</Table>
The Statement of Additional Information includes additional information
about the Directors and is available, without charge, upon request, by calling
800-222-8977.
53
<Page>
CREDIT SUISSE INSTITUTIONAL FUNDS
TAX INFORMATION LETTER (UNAUDITED)
AUGUST 31, 2003
IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS
Corporate shareholders should note for the year ended August 31, 2003, the
percentage of the Fixed Income Fund's investment income (I.E., net investment
income plus short-term capital gains) that qualified for the intercorporate
dividends received deduction are as follows:
<Table>
<Caption>
FUND PERCENTAGE
----------------------- ----------
Fixed Income 0.79%
High Yield 0.37%
</Table>
For the fiscal year ended August 31, 2003 certain dividends paid by each
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 2003 Form 1099-DIV.
54
<Page>
(This page has been left blank intentionally.)
<Page>
P.O. Box 8500, Boston, MA 02266-8500
800-222-8977
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. CSIUS-2-0803
<Page>
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
10(a)(1) to this Form. There were no amendments to the code during the fiscal
year ended August 31, 2003. There were no waivers or implicit waivers from the
code granted by the registrant during the fiscal year ended August 31, 2003.
<Page>
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: Richard H. Francis,
James S. Pasman, Jr., and Steven N. Rappaport. Each audit committee financial
expert is "independent" for purposes of this item.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Form N-CSR disclosure requirement is not yet effective with respect to the
Registrant.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the Registrant.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.
(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
registrant's second fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 10. EXHIBITS.
(a)(1) The 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.
(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.
<Page>
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 INSTITUTIONAL FIXED INCOME FUND, INC.
/s/ Joseph D. Gallagher
-----------------------
Name: Joseph D. Gallagher
Title: Chief Executive Officer
Date: November 10, 2003
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/ Joseph D. Gallagher
-----------------------
Name: Joseph D. Gallagher
Title: Chief Executive Officer
Date: November 10, 2003
/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: November 10, 2003