<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. 811-5041
------------------------------------------
CREDIT SUISSE CAPITAL APPRECIATION FUND
--------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
---------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Hal Liebes, Esq.
Credit Suisse Capital Appreciation Fund
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code:(212) 875-3500
Date of fiscal year end: October 31, 2003
Date of reporting period: November 1, 2002 to October 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
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[CREDIT SUISSE ASSET MANAGEMENT LOGO]
CREDIT SUISSE FUNDS
ANNUAL REPORT
OCTOBER 31, 2003
- - CREDIT SUISSE
CAPITAL APPRECIATION FUND
- - CREDIT SUISSE
EMERGING GROWTH FUND
- - CREDIT SUISSE
SMALL CAP GROWTH FUND
- - CREDIT SUISSE
STRATEGIC SMALL CAP FUND
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. YOU MAY OBTAIN ADDITIONAL
COPIES BY CALLING 800-927-2874 OR BY WRITING TO CREDIT SUISSE FUNDS, P.O. BOX
55030, BOSTON, MA 02205-5030.
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR, IS LOCATED AT 466
LEXINGTON AVE., NEW YORK, NY 10017-3140. CREDIT SUISSE FUNDS ARE ADVISED BY
CREDIT SUISSE ASSET MANAGEMENT, LLC.
<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 LETTER AND FUND
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF OCTOBER 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 CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2003 (Unaudited)
November 18, 2003
Dear Shareholder:
For the 12 months ended October 31, 2003, the Common Class and Advisor
Class Shares of Credit Suisse Capital Appreciation Fund (the "Fund") had gains
of 17.72% and 17.11%, respectively, versus an increase of 21.82% for the Russell
1000(R) Growth Index.(1) The Fund's Class A Shares(2) (without sales charge),
Class B Shares(2) (without contingent deferred sales charge) and Class C
Shares(2) (without contingent deferred sales charge) had gains of 17.44%, 16.60%
and 16.60%, respectively, for the period.
The period was a positive one for the U.S. stock market, though equities
struggled early on. The market reached its low point for the period in early
March, hurt by a great deal of uncertainty regarding a looming conflict with
Iraq and a related decline in consumer sentiment. Stocks began to recover,
however, rising rapidly in 2003's second quarter, then continuing to rally in a
more subdued manner. When the war came to a swift and seemingly successful end
in April, a major cloud of uncertainty lifted and investors embraced risk.
Optimism over a potential economic recovery also supported equities. Grounds for
this optimism included historically low interest rates, a significant
tax-reduction package, and an upturn in leading economic indicators around the
world.
The Fund underperformed its benchmark for the 12 months. The stronger
performance of the Fund's benchmark was partly driven by a surge in "second
tier" technology companies and other high volatility stocks to which the Fund
had less exposure during the period. The uneven nature of the recovery in
advertising revenues also hindered some of our media holdings. On the positive
side, stocks that aided the Fund's performance included its health-care and
producer durables holdings and the technology names that we did own.
In terms of sector allocation, we remained fairly well diversified, holding
a mix of defensive stocks and economically sensitive stocks. We made a gradual
shift in favor of the latter in the second half of the period, based on
increasing evidence (positive earnings surprises) that the economy was starting
to benefit specific companies. One noteworthy overweighting in the Fund (as of
October 31, 2003) was the consumer-discretionary area, including media
companies. We were about neutrally weighted in the technology sector, and we
continue to seek purchase candidates there. We trimmed our exposure to the
health-care sector late in the period, as certain holdings rose to approach or
reach our sell targets. As a result, the Fund was roughly neutrally weighted
there as of the end of the period.
1
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We have a cautiously positive view on stocks generally. While we are
encouraged by the impressive third-quarter Gross Domestic Product growth rate of
8.20% (annualized), and by the amount of monetary and fiscal stimulus in the
country, we believe that a number of stocks may have gotten ahead of near-term
fundamentals. Hence we will remain highly selective as we seek to increase the
Fund's cyclicality on the margin, focusing on company fundamentals.
<Table>
Jeffrey T. Rose Marian U. Pardo
Co-Portfolio Manager Co-Portfolio Manager
</Table>
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
2
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[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE
CAPITAL APPRECIATION FUND COMMON CLASS SHARES, ADVISOR CLASS SHARES AND
THE RUSSELL 1000(R) GROWTH INDEX(1) FOR TEN YEARS.
<Table>
<Caption>
CREDIT SUISSE CAPITAL CREDIT SUISSE CAPITAL
APPRECIATION FUND COMMON CLASS APPRECIATION FUND ADVISOR CLASS RUSSELL 1000 GROWTH INDEX(1)
10/31/1993 $ 10,000 $ 10,000 $ 10,000
11/30/1993 $ 9,621 $ 9,627 $ 9,934
12/31/1993 $ 10,002 $ 10,002 $ 10,106
1/31/1994 $ 10,300 $ 10,293 $ 10,339
2/28/1994 $ 10,059 $ 10,051 $ 10,151
3/31/1994 $ 9,440 $ 9,425 $ 9,661
4/30/1994 $ 9,411 $ 9,396 $ 9,706
5/31/1994 $ 9,689 $ 9,674 $ 9,853
6/30/1994 $ 9,404 $ 9,382 $ 9,562
7/31/1994 $ 9,689 $ 9,660 $ 9,889
8/31/1994 $ 10,158 $ 10,123 $ 10,440
9/30/1994 $ 10,044 $ 10,002 $ 10,297
10/31/1994 $ 10,165 $ 10,123 $ 10,540
11/30/1994 $ 9,724 $ 9,681 $ 10,203
12/31/1994 $ 9,715 $ 9,665 $ 10,374
1/31/1995 $ 9,669 $ 9,611 $ 10,595
2/28/1995 $ 10,145 $ 10,080 $ 11,039
3/31/1995 $ 10,636 $ 10,572 $ 11,362
4/30/1995 $ 10,813 $ 10,741 $ 11,611
5/31/1995 $ 11,050 $ 10,979 $ 12,016
6/30/1995 $ 11,548 $ 11,463 $ 12,479
7/31/1995 $ 12,163 $ 12,070 $ 12,998
8/31/1995 $ 12,294 $ 12,193 $ 13,012
9/30/1995 $ 12,579 $ 12,469 $ 13,612
10/31/1995 $ 12,610 $ 12,492 $ 13,621
11/30/1995 $ 13,171 $ 13,046 $ 14,151
12/31/1995 $ 13,417 $ 13,288 $ 14,232
1/31/1996 $ 13,872 $ 13,734 $ 14,708
2/29/1996 $ 14,249 $ 14,101 $ 14,977
3/31/1996 $ 14,529 $ 14,372 $ 14,996
4/30/1996 $ 14,704 $ 14,539 $ 15,391
5/31/1996 $ 14,985 $ 14,810 $ 15,928
6/30/1996 $ 14,801 $ 14,626 $ 15,950
7/31/1996 $ 14,144 $ 13,970 $ 15,016
8/31/1996 $ 14,678 $ 14,495 $ 15,403
9/30/1996 $ 15,598 $ 15,396 $ 16,525
10/31/1996 $ 15,720 $ 15,510 $ 16,624
11/30/1996 $ 16,684 $ 16,446 $ 17,873
12/31/1996 $ 16,539 $ 16,306 $ 17,523
1/31/1997 $ 17,173 $ 16,927 $ 18,752
2/28/1997 $ 17,320 $ 17,063 $ 18,625
3/31/1997 $ 16,675 $ 16,422 $ 17,617
4/30/1997 $ 17,447 $ 17,170 $ 18,787
5/31/1997 $ 18,384 $ 18,083 $ 20,142
6/30/1997 $ 19,067 $ 18,753 $ 20,949
7/31/1997 $ 20,805 $ 20,453 $ 22,801
8/31/1997 $ 19,917 $ 19,569 $ 21,467
9/30/1997 $ 21,244 $ 20,870 $ 22,523
10/31/1997 $ 20,590 $ 20,220 $ 21,691
11/30/1997 $ 21,147 $ 20,754 $ 22,612
12/31/1997 $ 21,730 $ 21,323 $ 22,865
1/31/1998 $ 21,611 $ 21,193 $ 23,549
2/28/1998 $ 23,002 $ 22,551 $ 25,320
3/31/1998 $ 24,156 $ 23,674 $ 26,329
4/30/1998 $ 24,715 $ 24,217 $ 26,694
5/31/1998 $ 24,120 $ 23,626 $ 25,936
6/30/1998 $ 25,393 $ 24,867 $ 27,525
7/31/1998 $ 25,464 $ 24,914 $ 27,342
8/31/1998 $ 21,028 $ 20,567 $ 23,238
9/30/1998 $ 22,503 $ 22,008 $ 25,023
10/31/1998 $ 23,216 $ 22,693 $ 27,035
11/30/1998 $ 24,727 $ 24,170 $ 29,092
12/31/1998 $ 27,328 $ 26,697 $ 31,716
1/31/1999 $ 29,044 $ 28,353 $ 33,579
2/28/1999 $ 27,888 $ 27,216 $ 32,045
3/31/1999 $ 29,293 $ 28,575 $ 33,733
4/30/1999 $ 29,579 $ 28,847 $ 33,776
5/31/1999 $ 28,795 $ 28,068 $ 32,738
6/30/1999 $ 30,611 $ 29,823 $ 35,031
7/31/1999 $ 30,151 $ 29,366 $ 33,918
8/31/1999 $ 30,151 $ 29,353 $ 34,472
9/30/1999 $ 30,474 $ 29,662 $ 33,747
10/31/1999 $ 32,103 $ 31,231 $ 36,296
11/30/1999 $ 34,167 $ 33,220 $ 38,255
12/31/1999 $ 40,515 $ 39,369 $ 42,234
1/31/2000 $ 39,272 $ 38,166 $ 40,253
2/29/2000 $ 44,727 $ 43,431 $ 42,221
3/31/2000 $ 46,218 $ 44,867 $ 45,243
4/30/2000 $ 42,338 $ 41,079 $ 43,089
5/31/2000 $ 40,170 $ 38,959 $ 40,920
6/30/2000 $ 43,166 $ 41,844 $ 44,021
7/31/2000 $ 42,932 $ 41,612 $ 42,185
8/31/2000 $ 47,019 $ 45,550 $ 46,005
9/30/2000 $ 44,244 $ 42,856 $ 41,653
10/31/2000 $ 42,214 $ 40,860 $ 39,683
11/30/2000 $ 37,657 $ 36,443 $ 33,834
12/31/2000 $ 38,391 $ 37,139 $ 32,764
1/31/2001 $ 38,391 $ 37,123 $ 35,029
2/28/2001 $ 34,641 $ 33,483 $ 29,081
3/31/2001 $ 32,093 $ 30,997 $ 25,917
4/30/2001 $ 34,788 $ 33,595 $ 29,195
5/31/2001 $ 34,301 $ 33,114 $ 28,766
6/30/2001 $ 33,051 $ 31,879 $ 28,099
7/31/2001 $ 31,395 $ 30,276 $ 27,396
8/31/2001 $ 28,879 $ 27,838 $ 25,155
9/30/2001 $ 25,372 $ 24,455 $ 22,645
10/31/2001 $ 26,346 $ 25,369 $ 23,833
11/30/2001 $ 28,814 $ 27,742 $ 26,123
12/31/2001 $ 29,043 $ 27,953 $ 26,074
1/31/2002 $ 27,890 $ 26,830 $ 25,614
2/28/2002 $ 26,462 $ 25,451 $ 24,551
3/31/2002 $ 27,144 $ 26,092 $ 25,400
4/30/2002 $ 25,001 $ 24,023 $ 23,327
5/31/2002 $ 24,384 $ 23,414 $ 22,763
6/30/2002 $ 21,884 $ 21,025 $ 20,657
7/31/2002 $ 20,439 $ 19,613 $ 19,521
8/31/2002 $ 20,488 $ 19,661 $ 19,580
9/30/2002 $ 18,848 $ 18,074 $ 17,549
10/31/2002 $ 20,341 $ 19,501 $ 19,159
11/30/2002 $ 21,121 $ 20,239 $ 20,199
12/31/2002 $ 19,725 $ 18,892 $ 18,803
1/31/2003 $ 19,481 $ 18,651 $ 18,346
2/28/2003 $ 19,335 $ 18,507 $ 18,262
3/31/2003 $ 19,432 $ 18,603 $ 18,602
4/30/2003 $ 20,666 $ 19,758 $ 19,976
5/31/2003 $ 21,705 $ 20,736 $ 20,973
6/30/2003 $ 22,290 $ 21,297 $ 21,262
7/31/2003 $ 23,053 $ 22,003 $ 21,792
8/31/2003 $ 23,264 $ 22,211 $ 22,334
9/30/2003 $ 22,647 $ 21,602 $ 22,095
10/31/2003 $ 23,945 $ 22,837 $ 23,322
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE CAPITAL APPRECIATION FUND CLASS A, B, C SHARES AND THE
RUSSELL 1000(R) GROWTH INDEX(1) FROM INCEPTION (11/30/01).
<Table>
<Caption>
CREDIT SUISSE CAPITAL APPRECIATION FUND CLASS A CREDIT SUISSE CAPITAL APPRECIATION FUND CLASS B
(WITH MAXIMUM SALES CHARGE) (WITH MAXIMUM CONTIGENT DEFERRED SALES CHARGE)
11/30/2001 $ 9,425 $ 10,000
12/31/2001 $ 9,496 $ 10,068
1/31/2002 $ 9,119 $ 9,663
2/28/2002 $ 8,652 $ 9,161
3/31/2002 $ 8,869 $ 9,387
4/30/2002 $ 8,168 $ 8,637
5/31/2002 $ 7,961 $ 8,417
6/30/2002 $ 7,149 $ 7,555
7/31/2002 $ 6,676 $ 7,043
8/31/2002 $ 6,692 $ 7,060
9/30/2002 $ 6,150 $ 6,485
10/31/2002 $ 6,639 $ 6,992
11/30/2002 $ 6,894 $ 7,262
12/31/2002 $ 6,437 $ 6,772
1/31/2003 $ 6,352 $ 6,682
2/28/2003 $ 6,304 $ 6,626
3/31/2003 $ 6,336 $ 6,660
4/30/2003 $ 6,740 $ 7,071
5/31/2003 $ 7,074 $ 7,420
6/30/2003 $ 7,265 $ 7,617
7/31/2003 $ 7,510 $ 7,865
8/31/2003 $ 7,579 $ 7,939
9/30/2003 $ 7,377 $ 7,719
10/31/2003 $ 7,797 $ 7,908
<Caption>
CREDIT SUISSE CAPITAL APPRECIATION FUND CLASS C
(WITH MAXIMUM CONTIGENT DEFERRED SALES CHARGE) RUSSELL 1000 GROWTH INDEX(1)
11/30/2001 $ 10,000 $ 10,000
12/31/2001 $ 10,068 $ 9,981
1/31/2002 $ 9,663 $ 9,805
2/28/2002 $ 9,161 $ 9,398
3/31/2002 $ 9,387 $ 9,723
4/30/2002 $ 8,637 $ 8,930
5/31/2002 $ 8,417 $ 8,714
6/30/2002 $ 7,550 $ 7,908
7/31/2002 $ 7,043 $ 7,473
8/31/2002 $ 7,060 $ 7,495
9/30/2002 $ 6,485 $ 6,718
10/31/2002 $ 6,992 $ 7,334
11/30/2002 $ 7,257 $ 7,732
12/31/2002 $ 6,772 $ 7,198
1/31/2003 $ 6,682 $ 7,023
2/28/2003 $ 6,626 $ 6,991
3/31/2003 $ 6,654 $ 7,121
4/30/2003 $ 7,071 $ 7,647
5/31/2003 $ 7,415 $ 8,029
6/30/2003 $ 7,612 $ 8,139
7/31/2003 $ 7,865 $ 8,342
8/31/2003 $ 7,933 $ 8,550
9/30/2003 $ 7,713 $ 8,458
10/31/2003 $ 8,153 $ 8,934
</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.
3
<Page>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class(3) 20.16% 0.13% 8.62% 9.29%
Advisor Class(3) 19.52% (0.37)% 8.09% 8.90%
Class A Without
Sales Charge 19.95% -- -- (12.50)%
Class A With Maximum
Sales Charge 13.02% -- -- (15.27)%
Class B Without CDSC 19.03% -- -- (13.16)%
Class B With CDSC 15.03% -- -- (14.58)%
Class C Without CDSC 18.94% -- -- (13.19)%
Class C With CDSC 17.94% -- -- (13.19)%
</Table>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class(3) 17.72% 0.62% 9.12% 9.62%
Advisor Class(3) 17.11% 0.13% 8.61% 9.23%
Class A Without
Sales Charge 17.44% -- -- (9.41)%
Class A With Maximum
Sales Charge 10.71% -- -- (12.16)%
Class B Without CDSC 16.60% -- -- (10.09)%
Class B With CDSC 12.60% -- -- (11.50)%
Class C Without CDSC 16.60% -- -- (10.09)%
Class C With CDSC 15.60% -- -- (10.09)%
</Table>
- ----------
(1) The Russell 1000(R) Growth Index measures the performance of those
companies in the Russell 1000(R) Index with higher price-to-book ratios and
higher forecasted growth values. It is an unmanaged index of common stocks
that includes reinvestment of dividends and is compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(2) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was 10.71%. Total return for
Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was 12.60%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 15.60%.
(3) Inception Date: 8/17/87.
4
<Page>
CREDIT SUISSE EMERGING GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2003 (Unaudited)
November 18, 2003
Dear Shareholder:
For the 12 months ended October 31, 2003, the Common Class and Advisor
Class Shares of Credit Suisse Emerging Growth Fund (the "Fund") had gains of
41.15% and 40.45%, respectively, versus increases of 44.76% for the Russell
2500(TM) Growth Index(1) and 39.30% for the Russell Midcap(R) Growth Index.(2)
The Fund's Class A Shares(3) (without sales charge) had a gain of 40.74% for the
same period.
The period was a positive one for the U.S. stock market, though equities
struggled early on. The market reached its low point for the period in early
March, hurt by a great deal of uncertainty regarding a looming conflict with
Iraq and a related decline in consumer sentiment. Stocks began to recover,
however, rising rapidly in 2003's second quarter, then continuing to rally in a
more subdued manner. When the war came to a swift and seemingly successful end
in April, a major cloud of uncertainty lifted and investors embraced risk.
Optimism over a potential economic recovery also supported equities. Grounds for
this optimism included historically low interest rates, a significant
tax-reduction package, and an upturn in leading economic indicators around the
world.
Within this environment of lowered risk thresholds, emerging-growth stocks
performed well in both absolute terms and relative to larger-cap growth stocks
and value stocks across the market-capitalization spectrum.
Stocks that aided the Fund's performance included its consumer,
financial-services and producer-durables holdings. On the negative side,
relatively speaking, the Fund's underperformance of the Russell 2500 Growth
Index was attributable in part to its technology holdings. While the Fund's
technology stocks collectively had a strong gain in absolute terms for the
period, they lagged the Index's technology component (but outpaced the Russell
MidCap Growth Index's technology component).
We made no dramatic shifts in the Fund's sector allocation, though we did
selectively increase our exposure to the technology area in the middle part of
the period. Because some of these holdings rallied sharply, we trimmed back the
exposure based on our sell discipline. Our technology holdings continued to be
roughly evenly divided between software and electronics companies. The other
main areas of focus in the Fund remained the consumer-discretionary,
financial-services and health-care sectors. Our overweighting in the
consumer-discretionary area reflects the number of interesting company-specific
opportunities we continue to see here, ranging from media stocks to niche
5
<Page>
retail names. In the financial-services sector, we favored asset-management and
insurance companies. Our bias in the health-care area was toward services
companies, such as hospitals and managed-care companies.
We are generally optimistic that the economy could show sustained,
significant growth, aided by the considerable amount of monetary and fiscal
stimulus in the system. And since inventories have now declined to noteworthy
lows across almost all industries, re-stocking could be another source of growth
during the next few quarters; we will monitor this trend carefully. Finally, we
note that merger and acquisition activity appears to be picking up again after a
long lull. We expect to see a trend in which more large companies acquire
smaller, growing companies as they shift their focus away from cost-cutting and
toward growth-generating strategies. For our part, we will remain focused on
companies we deem to have healthy balance sheets and executable business plans.
The Credit Suisse Small/Mid-Cap Growth Team
Roger M. Harris
Sammy Oh
Robert S. Janis
INVESTING IN EMERGING-GROWTH COMPANIES ENTAILS SPECIAL RISK CONSIDERATIONS,
SUCH AS INVESTING IN THE SECURITIES OF START-UP COMPANIES OR COMPANIES INVOLVED
IN "SPECIAL SITUATIONS."
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.
6
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE
EMERGING GROWTH FUND COMMON CLASS SHARES, ADVISOR CLASS SHARES, THE RUSSELL
2500(TM) GROWTH INDEX(1), AND THE RUSSELL MIDCAP(R) GROWTH INDEX(2) FOR TEN
YEARS.
<Table>
<Caption>
CREDIT SUISSE EMERGING CREDIT SUISSE EMERGING RUSSELL 2500(TM)
GROWTH FUND COMMON CLASS GROWTH FUND ADVISOR CLASS GROWTH INDEX(1) RUSSELL MIDCAP(R) GROWTH INDEX(2)
10/31/1993 $ 10,000 $ 10,000 $ 10,000 $ 10,000
11/30/1993 $ 9,583 $ 9,583 $ 9,637 $ 9,767
12/31/1993 $ 9,985 $ 9,976 $ 10,061 $ 10,159
1/31/1994 $ 10,280 $ 10,270 $ 10,351 $ 10,421
2/28/1994 $ 10,110 $ 10,098 $ 10,369 $ 10,331
3/31/1994 $ 9,470 $ 9,456 $ 9,765 $ 9,844
4/30/1994 $ 9,309 $ 9,289 $ 9,754 $ 9,820
5/31/1994 $ 9,094 $ 9,071 $ 9,559 $ 9,835
6/30/1994 $ 8,955 $ 8,927 $ 9,134 $ 9,411
7/31/1994 $ 9,076 $ 9,044 $ 9,333 $ 9,672
8/31/1994 $ 9,613 $ 9,578 $ 10,019 $ 10,249
9/30/1994 $ 9,783 $ 9,745 $ 10,014 $ 10,080
10/31/1994 $ 10,016 $ 9,971 $ 10,186 $ 10,254
11/30/1994 $ 9,528 $ 9,483 $ 9,735 $ 9,802
12/31/1994 $ 9,842 $ 9,791 $ 9,932 $ 9,939
1/31/1995 $ 9,694 $ 9,637 $ 9,835 $ 10,059
2/28/1995 $ 10,191 $ 10,130 $ 10,370 $ 10,594
3/31/1995 $ 10,468 $ 10,401 $ 10,772 $ 11,014
4/30/1995 $ 10,764 $ 10,686 $ 10,894 $ 11,107
5/31/1995 $ 10,889 $ 10,808 $ 11,061 $ 11,380
6/30/1995 $ 11,824 $ 11,735 $ 11,733 $ 11,898
7/31/1995 $ 12,697 $ 12,594 $ 12,658 $ 12,647
8/31/1995 $ 13,158 $ 13,042 $ 12,763 $ 12,786
9/30/1995 $ 13,847 $ 13,720 $ 13,036 $ 13,070
10/31/1995 $ 13,413 $ 13,286 $ 12,576 $ 12,740
11/30/1995 $ 13,758 $ 13,621 $ 13,090 $ 13,309
12/31/1995 $ 14,390 $ 14,247 $ 13,264 $ 13,316
1/31/1996 $ 14,191 $ 14,040 $ 13,305 $ 13,552
2/29/1996 $ 14,732 $ 14,573 $ 13,890 $ 14,064
3/31/1996 $ 14,984 $ 14,818 $ 14,192 $ 14,175
4/30/1996 $ 16,238 $ 16,048 $ 15,164 $ 14,860
5/31/1996 $ 16,451 $ 16,255 $ 15,705 $ 15,163
6/30/1996 $ 15,839 $ 15,645 $ 14,917 $ 14,705
7/31/1996 $ 14,129 $ 13,949 $ 13,435 $ 13,564
8/31/1996 $ 14,960 $ 14,761 $ 14,360 $ 14,297
9/30/1996 $ 15,801 $ 15,582 $ 15,122 $ 15,205
10/31/1996 $ 15,578 $ 15,371 $ 14,652 $ 15,027
11/30/1996 $ 15,677 $ 15,462 $ 15,189 $ 15,912
12/31/1996 $ 15,811 $ 15,588 $ 15,263 $ 15,644
1/31/1997 $ 16,387 $ 16,151 $ 15,720 $ 16,336
2/28/1997 $ 15,659 $ 15,424 $ 15,031 $ 15,976
3/31/1997 $ 14,755 $ 14,529 $ 14,042 $ 15,074
4/30/1997 $ 14,788 $ 14,557 $ 14,105 $ 15,443
5/31/1997 $ 16,458 $ 16,195 $ 15,796 $ 16,827
6/30/1997 $ 17,144 $ 16,864 $ 16,324 $ 17,292
7/31/1997 $ 18,143 $ 17,842 $ 17,360 $ 18,947
8/31/1997 $ 18,524 $ 18,208 $ 17,784 $ 18,762
9/30/1997 $ 19,909 $ 19,566 $ 19,040 $ 19,712
10/31/1997 $ 18,876 $ 18,540 $ 17,852 $ 18,725
11/30/1997 $ 18,762 $ 18,424 $ 17,578 $ 18,922
12/31/1997 $ 19,173 $ 18,821 $ 17,516 $ 19,170
1/31/1998 $ 18,691 $ 18,342 $ 17,287 $ 18,825
2/28/1998 $ 20,559 $ 20,169 $ 18,771 $ 20,595
3/31/1998 $ 21,534 $ 21,121 $ 19,468 $ 21,458
4/30/1998 $ 21,732 $ 21,307 $ 19,645 $ 21,750
5/31/1998 $ 20,417 $ 20,010 $ 18,383 $ 20,855
6/30/1998 $ 21,270 $ 20,838 $ 18,518 $ 21,445
7/31/1998 $ 19,625 $ 19,217 $ 17,139 $ 20,526
8/31/1998 $ 15,772 $ 15,440 $ 13,245 $ 16,609
9/30/1998 $ 16,371 $ 16,021 $ 14,406 $ 17,865
10/31/1998 $ 17,102 $ 16,731 $ 15,379 $ 19,180
11/30/1998 $ 18,153 $ 17,750 $ 16,472 $ 20,474
12/31/1998 $ 20,290 $ 19,835 $ 18,058 $ 22,594
1/31/1999 $ 20,600 $ 20,133 $ 18,581 $ 23,272
2/28/1999 $ 18,549 $ 18,116 $ 17,073 $ 22,134
3/31/1999 $ 19,529 $ 19,068 $ 17,868 $ 23,366
4/30/1999 $ 19,529 $ 19,063 $ 19,294 $ 24,431
5/31/1999 $ 19,854 $ 19,372 $ 19,493 $ 24,117
6/30/1999 $ 21,397 $ 20,864 $ 20,871 $ 25,801
7/31/1999 $ 21,102 $ 20,571 $ 20,446 $ 24,979
8/31/1999 $ 20,630 $ 20,102 $ 20,004 $ 24,720
9/30/1999 $ 20,651 $ 20,113 $ 20,147 $ 24,509
10/31/1999 $ 22,199 $ 21,610 $ 21,128 $ 26,404
11/30/1999 $ 24,620 $ 23,957 $ 23,622 $ 29,139
12/31/1999 $ 28,773 $ 27,985 $ 28,077 $ 34,184
1/31/2000 $ 27,838 $ 27,067 $ 27,921 $ 34,177
2/29/2000 $ 33,493 $ 32,553 $ 35,083 $ 41,361
3/31/2000 $ 32,385 $ 31,465 $ 32,330 $ 41,403
4/30/2000 $ 28,998 $ 28,161 $ 29,181 $ 37,382
5/31/2000 $ 26,892 $ 26,108 $ 26,582 $ 34,657
6/30/2000 $ 29,898 $ 29,015 $ 30,097 $ 38,334
7/31/2000 $ 28,854 $ 27,985 $ 27,630 $ 35,908
8/31/2000 $ 32,310 $ 31,325 $ 31,232 $ 41,323
9/30/2000 $ 32,062 $ 31,067 $ 29,212 $ 39,302
10/31/2000 $ 28,992 $ 28,085 $ 27,405 $ 36,614
11/30/2000 $ 23,597 $ 22,850 $ 22,184 $ 28,658
12/31/2000 $ 25,312 $ 24,507 $ 23,560 $ 30,168
1/31/2001 $ 25,072 $ 24,256 $ 25,086 $ 31,891
2/28/2001 $ 20,546 $ 19,877 $ 21,215 $ 26,374
3/31/2001 $ 18,283 $ 17,676 $ 18,868 $ 22,599
4/30/2001 $ 20,574 $ 19,877 $ 21,743 $ 26,367
5/31/2001 $ 20,243 $ 19,547 $ 22,374 $ 26,243
6/30/2001 $ 20,229 $ 19,533 $ 22,882 $ 26,256
7/31/2001 $ 19,157 $ 18,493 $ 21,195 $ 24,486
8/31/2001 $ 18,064 $ 17,425 $ 19,786 $ 22,711
9/30/2001 $ 15,519 $ 14,967 $ 16,687 $ 18,957
10/31/2001 $ 16,640 $ 16,042 $ 18,333 $ 20,950
11/30/2001 $ 18,276 $ 17,612 $ 19,917 $ 23,206
12/31/2001 $ 19,032 $ 18,330 $ 21,009 $ 24,088
1/31/2002 $ 18,221 $ 17,549 $ 20,111 $ 23,306
2/28/2002 $ 17,177 $ 16,531 $ 18,869 $ 21,984
3/31/2002 $ 18,136 $ 17,449 $ 20,387 $ 23,662
4/30/2002 $ 17,868 $ 17,183 $ 19,711 $ 22,410
5/31/2002 $ 17,072 $ 16,409 $ 18,717 $ 21,742
6/30/2002 $ 15,838 $ 15,219 $ 16,997 $ 19,342
7/31/2002 $ 13,426 $ 12,896 $ 14,886 $ 17,462
8/31/2002 $ 13,475 $ 12,939 $ 14,883 $ 17,401
9/30/2002 $ 12,545 $ 12,043 $ 13,758 $ 16,019
10/31/2002 $ 13,384 $ 12,832 $ 14,549 $ 17,261
11/30/2002 $ 14,216 $ 13,628 $ 15,902 $ 18,612
12/31/2002 $ 13,292 $ 12,732 $ 14,897 $ 17,488
1/31/2003 $ 13,384 $ 12,818 $ 14,572 $ 17,316
2/28/2003 $ 13,214 $ 12,646 $ 14,233 $ 17,166
3/31/2003 $ 13,348 $ 12,775 $ 14,421 $ 17,485
4/30/2003 $ 14,314 $ 13,692 $ 15,678 $ 18,676
5/31/2003 $ 15,753 $ 15,061 $ 17,340 $ 20,472
6/30/2003 $ 16,070 $ 15,362 $ 17,697 $ 20,765
7/31/2003 $ 16,839 $ 16,086 $ 18,876 $ 21,507
8/31/2003 $ 17,791 $ 16,990 $ 19,888 $ 22,692
9/30/2003 $ 17,191 $ 16,409 $ 19,460 $ 22,251
10/31/2003 $ 18,891 $ 18,022 $ 21,063 $ 24,048
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE CREDIT SUISSE
EMERGING GROWTH FUND CLASS A SHARES, THE RUSSELL 2500(TM) GROWTH INDEX(1), AND
THE RUSSELL MIDCAP(R) GROWTH INDEX(2) FROM INCEPTION (11/30/01).
<Table>
<Caption>
CREDIT SUISSE EMERGING GROWTH FUND CLASS A
(WITH MAXIMUM SALES CHARGE) RUSSELL 2500(TM) GROWTH INDEX(1) RUSSELL MIDCAP(R) GROWTH INDEX(2)
11/30/2001 $ 9,425 $ 10,000 $ 10,000
12/31/2001 $ 9,812 $ 10,548 $ 10,380
1/31/2002 $ 9,390 $ 10,098 $ 10,043
2/28/2002 $ 8,848 $ 9,474 $ 9,474
3/31/2002 $ 9,339 $ 10,236 $ 10,196
4/30/2002 $ 9,197 $ 9,896 $ 9,657
5/31/2002 $ 8,786 $ 9,398 $ 9,369
6/30/2002 $ 8,146 $ 8,534 $ 8,335
7/31/2002 $ 6,903 $ 7,474 $ 7,525
8/31/2002 $ 6,928 $ 7,472 $ 7,498
9/30/2002 $ 6,448 $ 6,908 $ 6,903
10/31/2002 $ 6,873 $ 7,305 $ 7,438
11/30/2002 $ 7,303 $ 7,984 $ 8,020
12/31/2002 $ 6,823 $ 7,480 $ 7,536
1/31/2003 $ 6,870 $ 7,316 $ 7,462
2/28/2003 $ 6,779 $ 7,146 $ 7,397
3/31/2003 $ 6,844 $ 7,240 $ 7,535
4/30/2003 $ 7,339 $ 7,872 $ 8,048
5/31/2003 $ 8,077 $ 8,706 $ 8,822
6/30/2003 $ 8,237 $ 8,885 $ 8,948
7/31/2003 $ 8,630 $ 9,477 $ 9,268
8/31/2003 $ 9,117 $ 9,985 $ 9,778
9/30/2003 $ 8,808 $ 9,770 $ 9,589
10/31/2003 $ 9,674 $ 10,574 $ 10,361
</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.
7
<Page>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class(4) 37.04% 0.98% 5.41% 10.17%
Advisor Class(5) 36.25% 0.48% 4.91% 8.64%
Class A Without
Sales Charge 36.60% -- -- (3.62)%
Class A With Maximum
Sales Charge 28.76% -- -- (6.68)%
</Table>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class(4) 41.15% 2.01% 6.57% 10.77%
Advisor Class(5) 40.45% 1.50% 6.07% 9.41%
Class A Without
Sales Charge 40.74% -- -- 1.36%
Class A With Maximum
Sales Charge 32.67% -- -- (1.71)%
</Table>
- ----------
(1) The Russell 2500(TM) Growth Index measures the performance of those
companies in the Russell 2500(TM) Index with higher price-to-book ratios
and higher forecasted growth values. It is an unmanaged index of common
stocks that includes reinvestment of dividends and is compiled by Frank
Russell Company. Investors cannot invest directly in a an index.
(2) The Russell Midcap(R) Growth Index measures the performance of those
companies in the Russell Midcap(R) Index with higher price-to-book ratios
and higher forecasted growth values. The stocks are also members of the
Russell 1000(R) Growth Index. It is an unmanaged index of common stocks
that includes reinvestment of dividends and compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(3) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was 32.67%.
(4) Inception Date: 1/21/88.
(5) Inception Date: 6/20/91.
8
<Page>
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2003 (Unaudited)
November 18, 2003
Dear Shareholder:
For the 12 months ended October 31, 2003, the Common Class Shares of Credit
Suisse Small Cap Growth Fund(1) (the "Fund") had a gain of 44.20%, versus an
increase of 46.55% for the Russell 2000(R) Growth Index.(2) The Fund's Class A
Shares(3) (without sales charge) had a gain of 44.31% for the period.
The period was a positive one for the U.S. stock market, though equities
struggled early on. The market reached its low point for the period in early
March, hurt by a great deal of uncertainty regarding a looming conflict with
Iraq and a related decline in consumer sentiment. Stocks began to recover,
however, rising rapidly in 2003's second quarter, then continuing to rally in a
more subdued manner. When the war came to a swift and seemingly successful end
in April, a major cloud of uncertainty lifted and investors embraced risk.
Optimism over a potential economic recovery also supported equities. Grounds for
this optimism included historically low interest rates, a significant
tax-reduction package, and an upturn in leading economic indicators around the
world.
Within this environment of lowered risk thresholds, small-cap growth stocks
performed well in both absolute terms and relative to larger-cap growth stocks
and value stocks across the market-capitalization spectrum.
The Fund slightly underperformed its benchmark in the period. Stocks that
aided the Fund's return included its technology, financial-services and
transportation holdings. On the negative side, relatively speaking, while the
Fund's consumer-discretionary and materials stocks had gains, they lagged their
respective components in the Fund's benchmark.
In terms of sector positioning, the main areas of focus in the Fund
remained the health-care, consumer-discretionary and technology sectors.
Regarding the last, our exposure was roughly evenly divided between software and
electronics companies. Both areas, we believe, could continue to benefit from a
re-commitment to corporate capital spending. Our overweighting in the
consumer-discretionary area reflects the number of interesting company-specific
opportunities we continue to see here, ranging from media stocks to niche retail
names.
Within health care, one move we made late in the period was to trim our
exposure to HMOs. We decided to scale this exposure back based on valuations --
these stocks have performed well over the past year -- along with a likely
slowdown in the rate of HMO premium growth. These
9
<Page>
companies have been able to raise premium prices by 10% to 15% annually for
several years, and we think such growth may be less robust going forward. That
said, we still favor certain health-care service companies, such as hospitals,
where new technologies are being employed that could boost productivity over
time.
We are generally optimistic that the economy could show sustained,
significant growth, aided by the considerable amount of monetary and fiscal
stimulus in the system. And since inventories have now declined to noteworthy
lows across almost all industries, we believe that re-stocking could be another
source of growth during the next few quarters; we will monitor this trend
carefully. Finally, we note that merger and acquisition activity appears to be
picking up again after a long lull. We expect to see a trend in which more large
companies acquire small, growing companies as they shift their focus away from
cost-cutting and toward growth-generating strategies. For our part, we will
remain focused on companies we deem to have healthy balance sheets and
executable business plans.
The Credit Suisse Small/Mid-Cap Growth Team
Roger M. Harris
Sammy Oh
Robert S. Janis
INVESTMENTS IN SMALL COMPANIES MAY BE MORE VOLATILE AND LESS LIQUID THAN
INVESTMENTS IN LARGER COMPANIES.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
10
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP GROWTH FUND(1) COMMON CLASS SHARES AND THE
RUSSELL 2000(R) GROWTH INDEX(2) FROM INCEPTION (12/31/96).
<Table>
<Caption>
CREDIT SUISSE SMALL CAP GROWTH FUND(1) COMMON CLASS RUSSELL 2000 GROWTH INDEX(2)
12/31/1996 $ 10,000 $ 10,000
1/31/1997 $ 10,350 $ 10,250
2/28/1997 $ 10,020 $ 9,631
3/31/1997 $ 9,250 $ 8,951
4/30/1997 $ 8,940 $ 8,848
5/31/1997 $ 10,280 $ 10,177
6/30/1997 $ 10,840 $ 10,523
7/31/1997 $ 11,370 $ 11,062
8/31/1997 $ 11,650 $ 11,394
9/30/1997 $ 12,930 $ 12,303
10/31/1997 $ 12,250 $ 11,564
11/30/1997 $ 12,070 $ 11,288
12/31/1997 $ 12,229 $ 11,295
1/31/1998 $ 11,927 $ 11,144
2/28/1998 $ 12,802 $ 12,128
3/31/1998 $ 13,637 $ 12,637
4/30/1998 $ 13,496 $ 12,714
5/31/1998 $ 12,360 $ 11,790
6/30/1998 $ 12,591 $ 11,911
7/31/1998 $ 11,414 $ 10,916
8/31/1998 $ 8,951 $ 8,396
9/30/1998 $ 9,846 $ 9,248
10/31/1998 $ 10,167 $ 9,730
11/30/1998 $ 11,093 $ 10,485
12/31/1998 $ 12,058 $ 11,434
1/31/1999 $ 12,621 $ 11,948
2/28/1999 $ 11,646 $ 10,855
3/31/1999 $ 12,501 $ 11,242
4/30/1999 $ 12,993 $ 12,234
5/31/1999 $ 13,064 $ 12,254
6/30/1999 $ 14,572 $ 12,899
7/31/1999 $ 14,401 $ 12,500
8/31/1999 $ 14,391 $ 12,033
9/30/1999 $ 15,156 $ 12,265
10/31/1999 $ 16,694 $ 12,579
11/30/1999 $ 19,138 $ 13,909
12/31/1999 $ 24,023 $ 16,361
1/31/2000 $ 23,826 $ 16,208
2/29/2000 $ 32,636 $ 19,979
3/31/2000 $ 28,921 $ 17,879
4/30/2000 $ 24,531 $ 16,074
5/31/2000 $ 22,197 $ 14,666
6/30/2000 $ 26,628 $ 16,561
7/31/2000 $ 23,712 $ 15,142
8/31/2000 $ 27,427 $ 16,734
9/30/2000 $ 25,611 $ 15,903
10/31/2000 $ 23,981 $ 14,612
11/30/2000 $ 19,862 $ 11,959
12/31/2000 $ 21,833 $ 12,691
1/31/2001 $ 21,387 $ 13,718
2/28/2001 $ 18,824 $ 11,837
3/31/2001 $ 16,655 $ 10,761
4/30/2001 $ 19,032 $ 12,078
5/31/2001 $ 18,814 $ 12,358
6/30/2001 $ 19,270 $ 12,696
7/31/2001 $ 18,191 $ 11,613
8/31/2001 $ 17,101 $ 10,887
9/30/2001 $ 14,414 $ 9,130
10/31/2001 $ 15,960 $ 10,008
11/30/2001 $ 17,517 $ 10,844
12/31/2001 $ 18,980 $ 11,519
1/31/2002 $ 18,419 $ 11,109
2/28/2002 $ 16,801 $ 10,390
3/31/2002 $ 18,295 $ 11,293
4/30/2002 $ 17,807 $ 11,049
5/31/2002 $ 16,697 $ 10,403
6/30/2002 $ 15,223 $ 9,521
7/31/2002 $ 12,992 $ 8,057
8/31/2002 $ 12,847 $ 8,053
9/30/2002 $ 12,276 $ 7,472
10/31/2002 $ 13,054 $ 7,850
11/30/2002 $ 14,102 $ 8,628
12/31/2002 $ 13,137 $ 8,033
1/31/2003 $ 12,878 $ 7,814
2/28/2003 $ 12,629 $ 7,606
3/31/2003 $ 12,785 $ 7,720
4/30/2003 $ 13,739 $ 8,451
5/31/2003 $ 15,317 $ 9,403
6/30/2003 $ 15,493 $ 9,585
7/31/2003 $ 16,686 $ 10,309
8/31/2003 $ 17,620 $ 10,863
9/30/2003 $ 16,852 $ 10,588
10/31/2003 $ 18,824 $ 11,503
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP GROWTH FUND(1) CLASS A SHARES AND THE
RUSSELL 2000(R) GROWTH INDEX(2) FROM INCEPTION (11/30/01).
<Table>
<Caption>
CREDIT SUISSE SMALL CAP GROWTH FUND(1) CLASS A
(WITH MAXIMUM SALES CHARGE) RUSSELL 2000 GROWTH INDEX(2)
11/30/2001 $ 9,425 $ 10,000
12/31/2001 $ 10,207 $ 10,623
1/31/2002 $ 9,911 $ 10,245
2/28/2002 $ 9,040 $ 9,582
3/31/2002 $ 9,844 $ 10,414
4/30/2002 $ 9,581 $ 10,190
5/31/2002 $ 8,984 $ 9,593
6/30/2002 $ 8,191 $ 8,780
7/31/2002 $ 6,991 $ 7,430
8/31/2002 $ 6,912 $ 7,427
9/30/2002 $ 6,605 $ 6,891
10/31/2002 $ 7,018 $ 7,239
11/30/2002 $ 7,582 $ 7,957
12/31/2002 $ 7,063 $ 7,408
1/31/2003 $ 6,929 $ 7,206
2/28/2003 $ 6,790 $ 7,014
3/31/2003 $ 6,879 $ 7,120
4/30/2003 $ 7,387 $ 7,793
5/31/2003 $ 8,236 $ 8,671
6/30/2003 $ 8,331 $ 8,839
7/31/2003 $ 8,973 $ 9,507
8/31/2003 $ 9,481 $ 10,017
9/30/2003 $ 9,062 $ 9,764
10/31/2003 $ 10,128 $ 10,608
</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.
11
<Page>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS INCEPTION
------ ------- ---------
Common Class 37.28% 11.35% 8.04%
Class A Without
Sales Charge 37.19% -- (2.12)%
Class A With Maximum
Sales Charge 29.32% -- (5.22)%
</Table>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS INCEPTION
------ ------- ---------
Common Class 44.20% 13.11% 9.70%
Class A Without
Sales Charge 44.31% -- 3.82%
Class A With Maximum
Sales Charge 35.98% -- 0.67%
</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 Russell 2000(R) Growth Index measures the performance of those
companies in the Russell 2000(R) Index with higher price-to-book ratios and
higher forecasted growth values. It is an unmanaged index of common stocks
that includes reinvestment of dividends and is compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(3) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%) was 35.98%.
12
<Page>
CREDIT SUISSE STRATEGIC SMALL CAP FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2003 (Unaudited)
November 18, 2003
Dear Shareholder:
For the 12 months ended October 31, 2003, the Class A Shares(1) (without
sales charge) of Credit Suisse Strategic Small Cap Fund(2) (the "Fund") had a
gain of 32.59%, versus an increase of 43.37% for the Russell 2000(R) Index.(3)
The Fund's Class B Shares(1) (without contingent deferred sales charge) and
Class C Shares(1) (without contingent deferred sales charge) both had gains of
31.54% for the period.
The period was a positive one for the U.S. stock market, though equities
struggled early on. The market reached its low point for the period in early
March, hurt by a great deal of uncertainty regarding a looming conflict with
Iraq and a related decline in consumer sentiment. Stocks began to recover,
however, rising rapidly in 2003's second quarter, then continuing to rally in a
more subdued manner. When the war came to a swift and seemingly successful end
in April, a major cloud of uncertainty lifted and investors embraced risk.
Optimism over a potential economic recovery also supported equities. Grounds for
this optimism included historically low interest rates, a significant
tax-reduction package, and an upturn in leading economic indicators around the
world.
Within this environment of lowered risk thresholds, small-cap growth stocks
performed well in both absolute terms and relative to larger-cap stocks.
The Fund underperformed its benchmark for the 12 months, which we attribute
primarily to its avoidance of certain "lower tier" companies (e.g., companies
with lackluster or even negative current earnings) that had strong rallies in
the period, particularly in the technology area. Our investment process remains
focused on companies that we believe have compelling business models that
generate earnings and have relatively solid financial profiles. On the positive
side, stocks that helped the Fund included its transportation and health-care
holdings.
We are generally optimistic that the economy could show sustained,
significant growth, aided by the considerable amount of monetary and fiscal
stimulus in the system. And since inventories have now declined to noteworthy
lows across almost all industries, we believe that re-stocking could be another
source of growth during the next few quarters; we will monitor this trend
carefully. Finally, we note that merger and acquisition activity appears to be
picking up again after a long lull. We expect to see a trend in which more
13
<Page>
large companies acquire smaller companies as they shift their focus away from
cost-cutting and toward growth-generating strategies. For our part, we will
remain focused on companies we deem to have healthy balance sheets and
executable business plans.
The Credit Suisse Strategic Small Cap Team
Roger M. Harris
Sammy Oh
Robert S. Janis
INVESTMENTS IN SMALL COMPANIES MAY BE MORE VOLATILE AND LESS LIQUID THAN
INVESTMENTS IN LARGER COMPANIES.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
14
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE STRATEGIC SMALL CAP FUND(2) CLASS A, B, C SHARES AND THE
RUSSELL 2000(R) INDEX(3) FROM INCEPTION (8/15/02).
<Table>
<Caption>
CREDIT SUISSE STRATEGIC SMALL CAP FUND(2) CLASS A CREDIT SUISSE STRATEGIC SMALL CAP FUND(2) CLASS B
(WITH MAXIMUM SALES CHARGE) (WITH MAXIMUM CONTIGENT DEFERRED SALES CHARGE)
8/15/2002 $ 9,425 $ 10,000
8/31/2002 $ 9,557 $ 10,140
9/30/2002 $ 8,935 $ 9,470
10/31/2002 $ 8,982 $ 9,520
11/30/2002 $ 9,529 $ 10,080
12/31/2002 $ 9,087 $ 9,609
1/31/2003 $ 8,758 $ 9,260
2/28/2003 $ 8,339 $ 8,817
3/31/2003 $ 8,319 $ 8,785
4/30/2003 $ 8,967 $ 9,461
5/31/2003 $ 9,895 $ 10,443
6/30/2003 $ 10,084 $ 10,633
7/31/2003 $ 10,743 $ 11,319
8/31/2003 $ 11,152 $ 11,742
9/30/2003 $ 10,822 $ 11,383
10/31/2003 $ 11,910 $ 12,223
<Caption>
CREDIT SUISSE STRATEGIC SMALL CAP FUND(2) CLASS C
(WITH MAXIMUM CONTIGENT DEFERRED SALES CHARGE) RUSSELL 2000 INDEX(3)
8/15/2002 $ 10,000 $ 10,000
8/31/2002 $ 10,140 $ 9,975
9/30/2002 $ 9,470 $ 9,259
10/31/2002 $ 9,520 $ 9,556
11/30/2002 $ 10,080 $ 10,408
12/31/2002 $ 9,609 $ 9,829
1/31/2003 $ 9,260 $ 9,556
2/28/2003 $ 8,817 $ 9,268
3/31/2003 $ 8,785 $ 9,387
4/30/2003 $ 9,461 $ 10,277
5/31/2003 $ 10,443 $ 11,380
6/30/2003 $ 10,633 $ 11,586
7/31/2003 $ 11,319 $ 12,311
8/31/2003 $ 11,742 $ 12,875
9/30/2003 $ 11,383 $ 12,637
10/31/2003 $ 12,523 $ 13,698
</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 SEPTEMBER 30, 2003(2)
<Table>
<Caption>
SINCE
1 YEAR INCEPTION
------ ---------
Class A Without Sales Charge 21.13% 13.03%
Class A With Maximum Sales Charge 14.14% 7.25%
Class B Without CDSC 20.20% 12.16%
Class B With CDSC 16.20% 9.53%
Class C Without CDSC 20.20% 12.16%
Class C With CDSC 19.20% 12.16%
</Table>
15
<Page>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003(2)
<Table>
<Caption>
SINCE
1 YEAR INCEPTION
------ ---------
Class A Without Sales Charge 32.59% 21.26%
Class A With Maximum Sales Charge 24.99% 15.49%
Class B Without CDSC 31.54% 20.37%
Class B With CDSC 27.54% 17.99%
Class C Without CDSC 31.54% 20.37%
Class C With CDSC 30.54% 20.37%
</Table>
- ----------
(1) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was 24.99%. Total return for
Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was 27.54%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum deferred sales charge of 1%), was
30.54%.
(2) 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.
(3) The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies. It is unmanaged index of common stocks that includes
reinvestment of dividends, and is compiled by Frank Russell Company.
Investors cannot invest directly in an index.
16
<Page>
CREDIT SUISSE CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
October 31, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS (97.6%)
AEROSPACE & DEFENSE (1.8%)
United Technologies Corp. 115,200 $ 9,756,288
---------------
BANKS (3.2%)
Mellon Financial Corp. 329,400 9,839,178
Wachovia Corp. 161,800 7,421,766
---------------
17,260,944
---------------
BEVERAGES (2.0%)
PepsiCo, Inc. 223,200 10,673,424
---------------
BIOTECHNOLOGY (6.7%)
Amgen, Inc.* 166,300 10,270,688
Chiron Corp.* 46,100 2,518,443
Genentech, Inc.* 171,800 14,082,446
Gilead Sciences, Inc.* 157,800 8,612,724
---------------
35,484,301
---------------
CHEMICALS (1.0%)
E. I. du Pont de Nemours & Co. 127,100 5,134,840
---------------
COMMERCIAL SERVICES & SUPPLIES (3.0%)
Apollo Group, Inc. Class A* 150,100 9,535,853
Monster Worldwide, Inc.* 251,500 6,405,705
---------------
15,941,558
---------------
COMMUNICATIONS EQUIPMENT (6.2%)
Cisco Systems, Inc.* 593,800 12,457,924
Corning, Inc.* 952,600 10,459,548
Motorola, Inc. 769,900 10,416,747
---------------
33,334,219
---------------
COMPUTERS & PERIPHERALS (5.7%)
Dell, Inc.* 304,100 10,984,092
EMC Corp.* 191,800 2,654,512
International Business Machines Corp. 55,700 4,984,036
Seagate Technology 519,100 11,928,918
---------------
30,551,558
---------------
DIVERSIFIED FINANCIALS (4.7%)
Ameritrade Holding Corp.* 183,400 2,501,576
Capital One Financial Corp. 224,600 13,655,680
Morgan Stanley 167,000 9,163,290
---------------
25,320,546
---------------
ENERGY EQUIPMENT & SERVICES (0.0%)
Bonneville Pacific Corp.*^ 16,883 1
---------------
HEALTHCARE EQUIPMENT & SUPPLIES (1.7%)
St. Jude Medical, Inc.* 153,600 8,933,376
---------------
</Table>
See Accompanying Notes to Financial Statements.
17
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
HEALTHCARE PROVIDERS & SERVICES (6.1%)
Anthem, Inc.* 121,600 $ 8,321,088
Caremark Rx, Inc.* 209,400 5,245,470
Omnicare, Inc. 319,100 12,234,294
WebMD Corp.* 888,200 6,919,078
---------------
32,719,930
---------------
INDUSTRIAL CONGLOMERATES (2.9%)
General Electric Co. 325,500 9,442,755
Tyco International, Ltd. 286,700 5,986,296
---------------
15,429,051
---------------
INTERNET & CATALOG RETAIL (3.8%)
eBay, Inc.* 110,800 6,198,152
InterActiveCorp* 378,500 13,894,735
---------------
20,092,887
---------------
INTERNET SOFTWARE & SERVICES (1.9%)
Yahoo!, Inc.* 232,700 10,168,990
---------------
IT CONSULTING & SERVICES (1.2%)
Accenture, Ltd. Class A* 275,000 6,435,000
---------------
MACHINERY (1.5%)
Danaher Corp. 97,700 8,094,445
---------------
MEDIA (13.3%)
Clear Channel Communications, Inc. 118,600 4,841,252
Comcast Corp. Special Class A* 505,900 16,502,458
E.W. Scripps Co. Class A 58,600 5,444,526
General Motors Corp. Class H* 693,700 11,397,491
Time Warner, Inc.* 612,200 9,360,538
Univision Communications, Inc. Class A* 350,100 11,885,895
Viacom, Inc. Class B 291,592 11,625,773
---------------
71,057,933
---------------
MULTILINE RETAIL (2.2%)
Wal-Mart Stores, Inc. 195,900 11,548,305
---------------
OIL & GAS (1.2%)
XTO Energy, Inc. 258,700 6,123,429
---------------
PERSONAL PRODUCTS (1.8%)
Estee Lauder Companies, Inc. Class A 262,900 9,829,831
---------------
PHARMACEUTICALS (5.9%)
Allergan, Inc. 68,600 5,187,532
Eli Lilly & Co. 125,900 8,387,458
Watson Pharmaceuticals, Inc.* 195,200 7,665,504
Wyeth 234,500 10,350,830
---------------
31,591,324
---------------
</Table>
See Accompanying Notes to Financial Statements.
18
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
SEMICONDUCTOR EQUIPMENT & PRODUCTS (8.7%)
Analog Devices, Inc.* 232,400 $ 10,302,292
Applied Materials, Inc.* 313,700 7,331,169
Intel Corp. 663,000 21,912,150
Maxim Integrated Products, Inc. 136,700 6,795,357
---------------
46,340,968
---------------
SOFTWARE (4.0%)
Microsoft Corp. 395,700 10,347,555
VERITAS Software Corp.* 309,100 11,173,965
---------------
21,521,520
---------------
SPECIALTY RETAIL (2.9%)
Bed Bath & Beyond, Inc.* 129,100 5,453,184
Lowe's Companies, Inc. 171,200 10,088,816
---------------
15,542,000
---------------
TEXTILES & APPAREL (1.2%)
Coach, Inc.* 182,700 6,480,369
---------------
WIRELESS TELECOMMUNICATION SERVICES (3.0%)
Nextel Communications, Inc. Class A* 422,500 10,224,500
Sprint Corp. (PCS Group)* 1,308,000 5,689,800
---------------
15,914,300
---------------
TOTAL COMMON STOCKS (Cost $479,801,605) 521,281,337
---------------
<Caption>
PAR
(000)
-----
SHORT-TERM INVESTMENT (3.8%)
State Street Bank and Trust Co. Euro Time Deposit,
0.750%, 11/03/03
(Cost $20,188,000) $ 20,188 20,188,000
---------------
TOTAL INVESTMENTS AT VALUE (101.4%) (Cost $499,989,605) 541,469,337
LIABILITIES IN EXCESS OF OTHER ASSETS (-1.4%) (7,501,745)
---------------
NET ASSETS (100.0%) $ 533,967,592
===============
</Table>
- ----------
* Non-income producing security.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by the Board of Trustees.
See Accompanying Notes to Financial Statements.
19
<Page>
CREDIT SUISSE EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS (96.4%)
AGRICULTURE (1.0%)
Delta and Pine Land Co. 194,100 $ 4,437,126
---------------
AUTO COMPONENTS (1.1%)
BorgWarner, Inc. 60,800 4,839,072
---------------
BANKS (3.0%)
IndyMac Bancorp, Inc. 233,600 6,867,840
New York Community Bancorp, Inc. 177,666 6,431,509
---------------
13,299,349
---------------
COMMERCIAL SERVICES & SUPPLIES (5.4%)
Certegy, Inc. 137,700 4,634,982
Fiserv, Inc.* 112,400 3,969,968
Kroll, Inc.* 173,800 4,042,588
Monster Worldwide, Inc.* 302,300 7,699,581
The BISYS Group, Inc.* 268,900 3,845,270
---------------
24,192,389
---------------
COMMUNICATIONS EQUIPMENT (4.1%)
ADC Telecommunications, Inc.* 2,160,100 5,508,255
Advanced Fibre Communications, Inc.* 233,600 5,622,752
Andrew Corp. * 255,400 3,340,632
Polycom, Inc.* 188,300 3,771,649
---------------
18,243,288
---------------
COMPUTERS & PERIPHERALS (1.2%)
ATI Technologies, Inc.* 382,000 5,466,420
---------------
CONTAINERS & PACKAGING (2.1%)
Ball Corp. 82,400 4,630,880
Pactiv Corp.* 218,700 4,822,335
---------------
9,453,215
---------------
DIVERSIFIED FINANCIALS (4.5%)
Chicago Merchantile Exchange 119,800 8,140,410
Franklin Resources, Inc. 101,700 4,822,614
Legg Mason, Inc. 87,700 7,301,025
---------------
20,264,049
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.7%)
Sanmina-SCI Corp.* 719,500 7,590,725
---------------
ENERGY EQUIPMENT & SERVICES (0.8%)
ENSCO International, Inc. 137,500 3,623,125
---------------
HEALTHCARE PROVIDERS & SERVICES (16.4%)
Accredo Health, Inc.* 403,100 12,883,076
AmerisourceBergen Corp. 58,400 3,315,368
Anthem, Inc.* 76,400 5,228,052
Caremark Rx, Inc.* 193,000 4,834,650
Community Health Systems, Inc.* 404,700 9,720,894
Coventry Health Care, Inc.* 45,000 2,463,750
</Table>
See Accompanying Notes to Financial Statements.
20
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
HEALTHCARE PROVIDERS & SERVICES
Health Net, Inc.* 150,000 $ 4,738,500
Manor Care, Inc. 135,600 4,512,768
Mid Atlantic Medical Services, Inc.* 112,100 6,546,640
Omnicare, Inc. 185,300 7,104,402
Quest Diagnostics, Inc. 64,800 4,383,720
Triad Hospitals, Inc.* 245,200 7,534,996
---------------
73,266,816
---------------
HOTELS, RESTAURANTS & LEISURE (1.3%)
Yum! Brands, Inc.* 172,000 5,872,080
---------------
INSURANCE (6.1%)
Ambac Financial Group, Inc. 125,050 8,846,037
Radian Group, Inc. 133,000 7,035,700
SAFECO Corp. 129,900 4,767,330
UnumProvident Corp. 415,300 6,798,461
---------------
27,447,528
---------------
INTERNET SOFTWARE & SERVICES (4.9%)
Ask Jeeves, Inc.* 177,800 3,406,648
DoubleClick, Inc.* 410,700 3,421,131
MatrixOne, Inc.* 498,700 2,762,798
Openwave Systems, Inc.* 519,067 6,773,820
RealNetworks, Inc.* 321,400 2,137,310
webMethods, Inc.* 388,300 3,370,444
---------------
21,872,151
---------------
MEDIA (3.8%)
Cox Radio, Inc. Class A* 301,600 6,671,392
Entercom Communications Corp.* 65,600 3,005,136
Lamar Advertising Co. * 106,500 3,226,950
Westwood One, Inc.* 135,000 4,040,550
---------------
16,944,028
---------------
MULTILINE RETAIL (1.5%)
Dollar Tree Stores, Inc.* 174,000 6,643,320
---------------
OIL & GAS (2.2%)
Pioneer Natural Resources Co.* 187,800 4,967,310
Pogo Producing Co. 113,300 4,737,073
---------------
9,704,383
---------------
PHARMACEUTICALS (7.3%)
Angiotech Pharmaceuticals, Inc.* 123,500 5,647,655
Barr Laboratories, Inc.* 61,200 4,698,324
Mylan Laboratories, Inc. 264,900 6,397,335
Sepracor, Inc.* 345,900 9,211,317
SICOR, Inc.* 36,400 975,520
Watson Pharmaceuticals, Inc.* 150,400 5,906,208
---------------
32,836,359
---------------
</Table>
See Accompanying Notes to Financial Statements.
21
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
ROAD & RAIL (0.9%)
Swift Transportation Company, Inc.* 184,500 $ 4,138,335
---------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (10.7%)
Analog Devices, Inc.* 122,300 5,421,559
Cymer, Inc.* 142,600 6,511,116
Fairchild Semiconductor International, Inc.* 335,100 7,573,260
Integrated Circuit Systems, Inc.* 104,900 3,521,493
Lam Research Corp.* 267,000 7,673,580
Microchip Technology, Inc. 226,900 7,421,899
Novellus Systems, Inc.* 126,100 5,206,669
Semtech Corp.* 204,600 4,542,120
---------------
47,871,696
---------------
SOFTWARE (10.0%)
Activision, Inc.* 315,800 4,765,422
BEA Systems, Inc.* 288,700 4,012,930
Documentum, Inc.* 231,300 6,881,175
Hyperion Solutions Corp.* 265,100 8,878,199
Informatica Corp.* 451,000 4,915,900
Manugistics Group, Inc.* 540,000 3,920,400
Quest Software, Inc.* 329,300 4,906,570
Take-Two Interactive Software, Inc.* 163,200 6,454,560
---------------
44,735,156
---------------
SPECIALTY RETAIL (6.4%)
Abercrombie & Fitch Co. Class A* 219,200 6,247,200
AnnTaylor Stores Corp.* 245,300 8,781,740
Linens 'n Things, Inc.* 171,600 5,065,632
Office Depot, Inc.* 281,800 4,207,274
Pier 1 Imports, Inc. 193,900 4,479,090
---------------
28,780,936
---------------
TOTAL COMMON STOCKS (Cost $334,839,282) 431,521,546
---------------
PREFERRED STOCKS (0.0%)
COSMETICS-TOILETRY (0.0%)
Opal Concepts Series B*,++ 792,603 0
---------------
TELECOMMUNICATIONS (0.0%)
Celletra, Ltd. Series C*,++ 1,102,524 0
---------------
TOTAL PREFERRED STOCKS (Cost $8,999,999) 0
---------------
</Table>
See Accompanying Notes to Financial Statements.
22
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
WARRANT (0.0%)
HEALTHCARE PROVIDERS & SERVICES (0.0%)
Women First HeathCare, Inc. expires 3/18/04*
(Cost $0) 5,516 $ 2
---------------
<Caption>
PAR
(000)
-----
SHORT-TERM INVESTMENT (1.9%)
State Street Bank and Trust Co. Euro Time Deposit,
0.750%, 11/03/03
(Cost $8,564,000) $ 8,564 8,564,000
---------------
TOTAL INVESTMENTS AT VALUE (98.3%) (Cost $352,403,281) 440,085,548
OTHER ASSETS IN EXCESS OF LIABILITIES (1.7%) 7,572,472
---------------
NET ASSETS (100.0%) $ 447,658,020
===============
</Table>
- ----------
* Non-income producing security.
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith by the Board of Directors.
See Accompanying Notes to Financial Statements.
23
<Page>
CREDIT SUISSE SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS (94.5%)
AGRICULTURE (0.9%)
Delta and Pine Land Co. 31,900 $ 729,234
---------------
AUTO COMPONENTS (1.5%)
BorgWarner, Inc. 7,600 604,884
Quantum Fuel Systems Technologies Worldwide, Inc.* 61,400 560,582
---------------
1,165,466
---------------
BANKS (1.0%)
IndyMac Bancorp, Inc. 26,000 764,400
---------------
BIOTECHNOLOGY (1.8%)
BioMarin Pharmaceutical, Inc.* 55,300 387,100
Cubist Pharmaceuticals, Inc.* 62,200 722,764
Nabi Biopharmaceuticals* 26,400 291,192
---------------
1,401,056
---------------
BUILDING PRODUCTS (1.0%)
Griffon Corp.* 38,600 746,910
---------------
CHEMICALS (0.6%)
Airgas, Inc. 23,100 442,365
---------------
COMMERCIAL SERVICES & SUPPLIES (2.7%)
Headwaters, Inc.* 51,800 970,732
Kroll, Inc.* 28,600 665,236
Pegasus Solutions, Inc.* 42,600 465,192
---------------
2,101,160
---------------
COMMUNICATIONS EQUIPMENT (2.4%)
Extreme Networks, Inc.* 62,700 539,220
InterDigital Communications Corp.* 41,000 696,590
Polycom, Inc.* 30,600 612,918
---------------
1,848,728
---------------
COMPUTERS & PERIPHERALS (2.1%)
Avid Technology, Inc.* 31,800 1,645,332
---------------
CONTAINERS & PACKAGING (1.0%)
Crown Holdings, Inc.* 96,400 761,560
---------------
DIVERSIFIED FINANCIALS (3.2%)
Affiliated Managers Group, Inc.* 14,900 1,080,250
Jefferies Group, Inc. 23,000 713,000
Raymond James Financial, Inc. 16,800 685,272
---------------
2,478,522
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.1%)
Lexar Media, Inc.* 37,400 856,834
---------------
ENERGY EQUIPMENT & SERVICES (1.5%)
FMC Technologies, Inc.* 32,200 646,576
Newpark Resources, Inc.* 131,700 529,434
---------------
1,176,010
---------------
</Table>
See Accompanying Notes to Financial Statements.
24
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
FOOD & DRUG RETAILING (0.6%)
Performance Food Group Co.* 13,500 $ 502,875
---------------
FOOD PRODUCTS (1.2%)
Hain Celestial Group, Inc.* 43,200 911,520
---------------
HEALTHCARE EQUIPMENT & SUPPLIES (3.7%)
Fisher Scientific International, Inc.* 16,800 676,200
SonoSite, Inc.* 36,200 714,950
Therasense, Inc.* 48,900 893,892
Wilson Greatbatch Technologies, Inc.* 16,200 610,740
---------------
2,895,782
---------------
HEALTHCARE PROVIDERS & SERVICES (7.7%)
Accredo Health, Inc.* 68,600 2,192,456
Apria Healthcare Group, Inc.* 23,400 678,600
Centene Corp.* 33,100 1,013,191
Community Health Systems, Inc.* 30,000 720,600
LifePoint Hospitals, Inc.* 55,800 1,434,618
---------------
6,039,465
---------------
INSURANCE (1.5%)
HCC Insurance Holdings, Inc. 20,900 609,026
U.S.I. Holdings Corp.* 46,000 583,740
---------------
1,192,766
---------------
INTERNET & CATALOG RETAIL (0.2%)
ValueVision Media, Inc. Class A* 8,300 134,875
---------------
INTERNET SOFTWARE & SERVICES (7.0%)
Ask Jeeves, Inc.* 44,100 844,956
Chordiant Software, Inc.* 253,900 1,117,160
DoubleClick, Inc.* 69,800 581,434
MatrixOne, Inc.* 148,200 821,028
Openwave Systems, Inc.* 87,367 1,140,135
RealNetworks, Inc.* 55,000 365,750
webMethods, Inc.* 69,500 603,260
---------------
5,473,723
---------------
IT CONSULTING & SERVICES (1.0%)
CACI International, Inc. Class A* 15,800 782,574
---------------
MEDIA (3.7%)
Cumulus Media, Inc. Class A* 58,900 1,103,197
Emmis Communications Corp. Class A* 49,300 1,093,474
Getty Images, Inc.* 15,500 692,850
---------------
2,889,521
---------------
METALS & MINING (0.8%)
GrafTech International, Ltd.* 61,400 637,946
---------------
</Table>
See Accompanying Notes to Financial Statements.
25
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
MULTILINE RETAIL (1.0%)
BJ's Wholesale Club, Inc.* 31,100 $ 798,959
---------------
OIL & GAS (3.4%)
Remington Oil & Gas Corp.* 35,500 633,675
Spinnaker Exploration Co.* 21,600 552,744
Stone Energy Corp.* 25,900 936,026
Tom Brown, Inc.* 21,000 567,420
---------------
2,689,865
---------------
PHARMACEUTICALS (7.3%)
Angiotech Pharmaceuticals, Inc.* 18,600 850,578
Inspire Phamaceuticals, Inc.* 41,800 778,316
K-V Pharmaceutical Co. Class A* 47,100 1,130,400
Medicis Pharmaceutical Corp. Class A 24,200 1,533,070
Sepracor, Inc.* 54,300 1,446,009
---------------
5,738,373
---------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (11.6%)
Actel Corp.* 41,500 1,119,670
Axcelis Technologies, Inc.* 108,400 1,146,872
Brooks Automation, Inc.* 38,208 953,290
Cymer, Inc.* 22,700 1,036,482
Entegris, Inc.* 61,200 805,392
Integrated Device Technology, Inc.* 54,600 857,220
OmniVision Technologies, Inc.* 10,600 602,080
Semtech Corp.* 34,600 768,120
Varian Semiconductor Equipment Associates, Inc.* 36,400 1,759,940
---------------
9,049,066
---------------
SOFTWARE (11.4%)
Activision, Inc.* 54,000 814,860
Agile Software Corp.* 73,500 806,295
Documentum, Inc.* 39,400 1,172,150
FileNET Corp.* 37,900 1,012,688
Hyperion Solutions Corp.* 44,100 1,476,909
Informatica Corp.* 78,900 860,010
Manugistics Group, Inc.* 84,000 609,840
QRS Corp.* 5,850 59,494
Radiant Systems, Inc.* 58,800 391,608
Take-Two Interactive Software, Inc.* 31,600 1,249,780
Verisity, Ltd.* 38,500 480,865
---------------
8,934,499
---------------
SPECIALTY RETAIL (9.7%)
Aeropostale, Inc.* 30,700 947,095
American Eagle Outfitters, Inc.* 35,400 566,046
AnnTaylor Stores Corp.* 23,800 852,040
Cost Plus, Inc.* 22,300 1,022,901
Guitar Center, Inc.* 22,600 735,630
</Table>
See Accompanying Notes to Financial Statements.
26
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
SPECIALTY RETAIL
Gymboree Corp.* 47,800 $ 788,700
Hot Topic, Inc.* 35,125 1,008,439
Linens 'n Things, Inc.* 33,200 980,064
Movie Gallery, Inc.* 33,900 701,052
---------------
7,601,967
---------------
TEXTILES & APPAREL (1.1%)
Tommy Hilfiger Corp.* 57,500 844,675
---------------
TRADING COMPANIES & DISTRIBUTORS (0.8%)
MSC Industrial Direct Company, Inc. Class A 27,100 640,915
---------------
TOTAL COMMON STOCKS (Cost $59,152,143) 73,876,943
---------------
PREFERRED STOCK (0.0%)
INTERNET SOFTWARE & SERVICES (0.0%)
Planetweb, Inc.*,++
(Cost $149,913) 27,600 1,932
---------------
WARRANT (0.0%)
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.0%)
APW, Ltd. expires 7/31/09*,^
(Cost $0) 17 0
---------------
<Caption>
PAR
(000)
-----
SHORT-TERM INVESTMENT (5.7%)
State Street Bank and Trust Co. Euro Time Deposit,
0.750%, 11/03/03
(Cost $4,412,000) $ 4,412 4,412,000
---------------
TOTAL INVESTMENTS AT VALUE (100.2%) (Cost $63,714,056) 78,290,875
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.2%) (134,958)
---------------
NET ASSETS (100.0%) $ 78,155,917
===============
</Table>
- ----------
* Non-income producing security.
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith by the Board of Directors.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by the Board of Directors.
See Accompanying Notes to Financial Statements.
27
<Page>
CREDIT SUISSE STRATEGIC SMALL CAP FUND
SCHEDULE OF INVESTMENTS
October 31, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS (89.8%)
AGRICULTURE (1.0%)
Delta and Pine Land Co. 600 $ 13,716
---------------
AIR FREIGHT & COURIERS (0.2%)
J.B. Hunt Transport Services, Inc.* 100 2,538
---------------
AUTO COMPONENTS (1.2%)
BorgWarner, Inc. 200 15,918
---------------
BANKS (2.7%)
IndyMac Bancorp, Inc. 700 20,580
Southwest Bancorporation of Texas, Inc. 400 14,364
---------------
34,944
---------------
BIOTECHNOLOGY (0.5%)
BioMarin Pharmaceutical, Inc.* 900 6,300
---------------
BUILDING PRODUCTS (1.5%)
Griffon Corp.* 1,000 19,350
---------------
CHEMICALS (1.0%)
Airgas, Inc. 700 13,405
---------------
COMMERCIAL SERVICES & SUPPLIES (4.7%)
Banta Corp. 300 11,478
Headwaters, Inc.* 1,000 18,740
Kroll, Inc.* 600 13,956
Waste Connections, Inc.* 500 17,340
---------------
61,514
---------------
COMMUNICATIONS EQUIPMENT (1.8%)
Extreme Networks, Inc.* 1,000 8,600
InterDigital Communications Corp.* 900 15,291
---------------
23,891
---------------
COMPUTERS & PERIPHERALS (1.2%)
Avid Technology, Inc.* 300 15,522
---------------
CONSTRUCTION & ENGINEERING (0.6%)
EMCOR Group, Inc.* 200 7,538
---------------
CONTAINERS & PACKAGING (4.5%)
Constar International, Inc.* 1,400 7,056
Crown Holdings, Inc.* 4,900 38,710
Silgan Holdings, Inc.* 400 12,792
---------------
58,558
---------------
DIVERSIFIED FINANCIALS (2.6%)
Affiliated Managers Group, Inc.* 300 21,750
Raymond James Financial, Inc. 300 12,237
---------------
33,987
---------------
</Table>
See Accompanying Notes to Financial Statements.
28
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.7%)
Methode Electronics, Inc. Class A 600 $ 7,146
OSI Systems, Inc.* 800 14,712
---------------
21,858
---------------
ENERGY EQUIPMENT & SERVICES (1.9%)
Newpark Resources, Inc.* 3,400 13,668
SEACOR SMIT, Inc.* 300 11,496
---------------
25,164
---------------
HEALTHCARE EQUIPMENT & SUPPLIES (0.9%)
Respironics, Inc.* 300 12,507
---------------
HEALTHCARE PROVIDERS & SERVICES (10.5%)
Accredo Health, Inc.* 800 25,568
Apria Healthcare Group, Inc.* 300 8,700
Community Health Systems, Inc.* 600 14,412
Coventry Health Care, Inc.* 300 16,425
Genesis Health Ventures, Inc.* 500 13,450
LifePoint Hospitals, Inc.* 800 20,568
Pediatrix Medical Group, Inc.* 500 26,725
PSS World Medical, Inc.* 1,300 12,116
---------------
137,964
---------------
HOTELS, RESTAURANTS & LEISURE (3.3%)
Alliance Gaming Corp.* 700 16,975
CEC Entertainment, Inc.* 300 14,670
Extended Stay America, Inc.* 800 11,760
---------------
43,405
---------------
HOUSEHOLD DURABLES (2.2%)
Beazer Homes USA, Inc.* 200 19,900
Interface, Inc. Class A* 1,700 9,435
---------------
29,335
---------------
INSURANCE (3.4%)
HCC Insurance Holdings, Inc. 700 20,398
Platinum Underwriters Holdings, Ltd. 400 11,496
U.S.I. Holdings Corp.* 1,000 12,690
---------------
44,584
---------------
INTERNET & CATALOG RETAIL (0.4%)
ValueVision Media, Inc. Class A* 300 4,875
---------------
INTERNET SOFTWARE & SERVICES (1.3%)
Chordiant Software, Inc.* 3,900 17,160
---------------
IT CONSULTING & SERVICES (0.7%)
Tier Technologies, Inc. Class B* 900 9,225
---------------
</Table>
See Accompanying Notes to Financial Statements.
29
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
MACHINERY (3.1%)
Kennametal, Inc. 300 $ 11,064
Nordson Corp. 500 13,855
Wabash National Corp.* 700 16,149
---------------
41,068
---------------
MEDIA (6.3%)
Cox Radio, Inc. Class A* 300 6,636
Cumulus Media, Inc. Class A* 800 14,984
Emmis Communications Corp. Class A* 700 15,526
Entercom Communications Corp.* 200 9,162
Gray Television, Inc.* 900 11,448
MDC Corporation, Inc.* 2,200 24,816
---------------
82,572
---------------
METALS & MINING (1.0%)
GrafTech International, Ltd.* 1,300 13,507
---------------
MULTILINE RETAIL (1.0%)
BJ's Wholesale Club, Inc.* 500 12,845
---------------
OIL & GAS (5.0%)
Forest Oil Corp.* 300 7,035
Remington Oil & Gas Corp.* 500 8,925
Spinnaker Exploration Co.* 400 10,236
Stone Energy Corp.* 700 25,298
Tom Brown, Inc.* 500 13,510
---------------
65,004
---------------
PHARMACEUTICALS (3.0%)
K-V Pharmaceutical Co. Class A* 750 18,000
Sepracor, Inc.* 400 10,652
SICOR, Inc.* 400 10,720
---------------
39,372
---------------
REAL ESTATE (2.5%)
Meristar Hospitality Corp.* 1,100 7,513
Newcastle Investment Corp. 1,100 25,740
---------------
33,253
---------------
ROAD & RAIL (0.7%)
Werner Enterprises, Inc. 500 9,020
---------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (7.8%)
Actel Corp.* 500 13,490
Axcelis Technologies, Inc.* 1,400 14,812
Brooks Automation, Inc.* 700 17,465
Cymer, Inc.* 300 13,698
Entegris, Inc.* 900 11,844
Integrated Device Technology, Inc.* 1,100 17,270
Semtech Corp.* 600 13,320
---------------
101,899
---------------
</Table>
See Accompanying Notes to Financial Statements.
30
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- -----
COMMON STOCKS
SOFTWARE (6.3%)
Actuate Corp.* 2,800 $ 9,968
Hyperion Solutions Corp.* 500 16,745
Informatica Corp.* 1,200 13,080
Lawson Software, Inc.* 1,000 8,340
Manugistics Group, Inc.* 1,400 10,164
Radiant Systems, Inc.* 3,600 23,976
---------------
82,273
---------------
SPECIALTY RETAIL (2.0%)
Linens 'n Things, Inc.* 500 14,760
Too, Inc.* 700 11,550
---------------
26,310
---------------
TRADING COMPANIES & DISTRIBUTORS (1.3%)
MSC Industrial Direct Company, Inc. Class A 700 16,555
---------------
TOTAL COMMON STOCKS (Cost $933,563) 1,176,936
---------------
<Caption>
PAR
(000)
-----
SHORT-TERM INVESTMENT (8.9%)
State Street Bank and Trust Co. Euro Time Deposit,
0.750%, 11/03/03
(Cost $117,000) $ 117 117,000
---------------
TOTAL INVESTMENTS AT VALUE (98.7%) (Cost $1,050,563) 1,293,936
OTHER ASSETS IN EXCESS OF LIABILITIES (1.3%) 17,574
---------------
NET ASSETS (100.0%) $ 1,311,510
===============
</Table>
- ----------
* Non-income producing security.
See Accompanying Notes to Financial Statements.
31
<Page>
CREDIT SUISSE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 2003
<Table>
<Caption>
CAPITAL EMERGING SMALL CAP STRATEGIC
APPRECIATION GROWTH GROWTH SMALL CAP
FUND FUND FUND FUND
-------------- -------------- -------------- --------------
ASSETS
Investments at value (Cost $499,989,605,
$352,403,281, $63,714,056, and
$1,050,563, respectively) (Note 1) $ 541,469,337 $ 440,085,548 $ 78,290,875 $ 1,293,936
Cash 562 410 727 610
Receivable for investments sold 5,611,352 8,346,430 1,553,682 46,363
Receivable for fund shares sold 385,953 1,417,625 389,373 --
Dividend and interest receivable 120,020 48,265 1,460 89
Prepaid expenses 45,854 34,941 23,801 16,635
-------------- -------------- -------------- --------------
Total Assets 547,633,078 449,933,219 80,259,918 1,357,633
-------------- -------------- -------------- --------------
LIABILITIES
Advisory fee payable (Note 2) 316,393 333,229 34,609 5,087
Administrative services fee payable (Note 2) 97,942 80,497 13,615 737
Shareholder servicing/Distribution fee payable (Note 2) 11,339 20,436 15,426 706
Payable for investments purchased 12,609,008 474,257 1,928,077 17,888
Payable for fund shares redeemed 430,476 1,198,723 57,764 --
Trustees'/Directors' fee payable 5,986 5,986 5,986 5,986
Other accrued expenses payable 194,342 162,071 48,524 15,719
-------------- -------------- -------------- --------------
Total Liabilities 13,665,486 2,275,199 2,104,001 46,123
-------------- -------------- -------------- --------------
NET ASSETS
Capital stock, $0.001 par value (Note 6) 36,237 16,810 4,308 110
Paid-in capital (Note 6) 897,144,834 662,955,480 83,089,572 1,099,104
Accumulated net investment loss -- -- -- (69,826)
Accumulated net realized gain/loss on investments (404,693,211) (302,996,537) (19,514,782) 38,749
Net unrealized appreciation from investments 41,479,732 87,682,267 14,576,819 243,373
-------------- -------------- -------------- --------------
Net Assets $ 533,967,592 $ 447,658,020 $ 78,155,917 $ 1,311,510
============== ============== ============== ==============
COMMON SHARES
Net assets $ 514,667,858 $ 407,261,814 $ 77,236,117 N/A
Shares outstanding 34,885,180 15,203,389 4,257,480 N/A
-------------- -------------- -------------- --------------
Net asset value, offering price and redemption
price per share $ 14.75 $ 26.79 $ 18.14 N/A
============== ============== ============== ==============
ADVISOR SHARES
Net assets $ 17,380,266 $ 40,321,582 N/A N/A
Shares outstanding 1,220,280 1,603,883 N/A N/A
-------------- -------------- -------------- --------------
Net asset value, offering price and
redemption price per share $ 14.24 $ 25.14 N/A N/A
============== ============== ============== ==============
A SHARES
Net assets $ 1,151,563 $ 74,624 $ 919,800 $ 593,279
Shares outstanding 78,434 2,805 50,714 49,674
-------------- -------------- -------------- --------------
Net asset value and redemption price per share $ 14.68 $ 26.60 $ 18.14 $ 11.94
============== ============== ============== ==============
Maximum offering price per share
(net asset value/(1-5.75%)) $ 15.58 $ 28.22 $ 19.25 $ 12.67
============== ============== ============== ==============
B SHARES
Net assets $ 544,838 N/A N/A $ 355,858
Shares outstanding 37,648 N/A N/A 30,000
-------------- -------------- -------------- --------------
Net asset value and offering price per share $ 14.47 N/A N/A $ 11.86
============== ============== ============== ==============
C SHARES
Net assets $ 223,067 N/A N/A $ 362,373
Shares outstanding 15,417 N/A N/A 30,550
-------------- -------------- -------------- --------------
Net asset value and offering price per share $ 14.47 N/A N/A $ 11.86
============== ============== ============== ==============
</Table>
See Accompanying Notes to Financial Statements.
32
<Page>
STATEMENTS OF OPERATIONS
For the Year Ended October 31, 2003
<Table>
<Caption>
CAPITAL EMERGING SMALL CAP STRATEGIC
APPRECIATION GROWTH GROWTH SMALL CAP
FUND FUND FUND FUND
-------------- -------------- -------------- --------------
INVESTMENT INCOME (Note 1)
Dividends $ 3,873,898 $ 1,167,961 $ 51,929 $ 2,713
Interest 148,008 177,323 30,416 363
Foreign Taxes (990) -- -- --
-------------- -------------- -------------- --------------
Total investment income 4,020,916 1,345,284 82,345 3,076
-------------- -------------- -------------- --------------
EXPENSES
Investment advisory fees (Note 2) 3,683,895 3,518,018 495,712 9,756
Administrative services fees (Note 2) 839,843 625,090 85,423 7,529
Shareholder servicing/Distribution fees (Note 2) 83,524 188,439 123,928 6,977
Transfer agent fees (Note 2) 1,198,954 961,947 169,359 --
Audit fees 60,775 42,304 20,468 20,607
Printing fees (Note 2) 59,115 26,152 16,650 23,875
Registration fees 57,433 57,243 45,464 28,349
Custodian fees 48,069 35,462 20,036 3,604
Legal fees 35,131 34,296 35,843 53,372
Insurance expense 29,307 45,498 8,364 8,384
Interest expense 22,551 15,601 2,418 33
Trustees'/Directors' fees 18,987 18,988 18,988 18,630
Offering Costs -- -- -- 144,497
Miscellaneous expense 15,259 13,959 2,149 92
-------------- -------------- -------------- --------------
Total expenses 6,152,843 5,582,997 1,044,802 325,705
Less: fees waived and expenses reimbursed (Note 2) -- -- (350,805) (306,919)
-------------- -------------- -------------- --------------
Net expenses 6,152,843 5,582,997 693,997 18,786
-------------- -------------- -------------- --------------
Net investment loss (2,131,927) (4,237,713) (611,652) (15,710)
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investments (33,954,159) 13,936,296 (1,191,044) 67,185
Net change in unrealized appreciation
(depreciation) from investments 120,908,900 125,732,873 21,978,881 259,799
-------------- -------------- -------------- --------------
Net realized and unrealized gain from investments 86,954,741 139,669,169 20,787,837 326,984
-------------- -------------- -------------- --------------
Net increase in net assets resulting from
operations $ 84,822,814 $ 135,431,456 $ 20,176,185 $ 311,274
============== ============== ============== ==============
</Table>
See Accompanying Notes to Financial Statements.
33
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
CAPITAL APPRECIATION FUND
------------------------------------
FOR THE YEAR ENDED
------------------------------------
2003 2002
---------------- ----------------
FROM OPERATIONS
Net investment loss $ (2,131,927) $ (3,761,055)
Net realized gain (loss) from investments (33,954,159) (187,905,054)
Net change in unrealized appreciation (depreciation)
from investments 120,908,900 (1,820,396)
---------------- ----------------
Net increase (decrease) in net assets resulting
from operations 84,822,814 (193,486,505)
---------------- ----------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
---------------- ----------------
Distributions from net realized gains
Common Class shares -- (64,750)
Advisor shares -- (1,962)
---------------- ----------------
Net decrease in net assets resulting from dividends
and distributions -- (66,712)
---------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 86,270,380 283,614,582
Reinvestment of dividends and distributions -- 64,408
Net asset value of shares redeemed (220,631,129) (431,736,766)
---------------- ----------------
Net increase (decrease) in net assets from capital
share transactions (134,360,749) (148,057,776)
---------------- ----------------
Net increase (decrease) in net assets (49,537,935) (341,610,993)
NET ASSETS
Beginning of year 583,505,527 925,116,520
---------------- ----------------
End of year $ 533,967,592 $ 583,505,527
================ ================
ACCUMULATED NET INVESTMENT LOSS $ -- $ --
================ ================
</Table>
- ----------
(1) For the period August 15, 2002 (inception date) through October 31, 2002.
See Accompanying Notes to Financial Statements.
34
<Page>
<Table>
<Caption>
EMERGING GROWTH FUND
------------------------------------
FOR THE YEAR ENDED
------------------------------------
2003 2002
---------------- ----------------
FROM OPERATIONS
Net investment loss $ (4,237,713) $ (7,526,403)
Net realized gain (loss) from investments 13,936,296 (10,588,870)
Net change in unrealized appreciation (depreciation)
from investments 125,732,873 (84,278,177)
---------------- ----------------
Net increase (decrease) in net assets resulting
from operations 135,431,456 (102,393,450)
---------------- ----------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
---------------- ----------------
Distributions from net realized gains
Common Class shares -- (98,422)
Advisor shares -- (12,023)
---------------- ----------------
Net decrease in net assets resulting from dividends
and distributions -- (110,445)
---------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 101,028,267 131,226,241
Reinvestment of dividends and distributions -- 109,170
Net asset value of shares redeemed (189,580,871) (607,725,162)
---------------- ----------------
Net increase (decrease) in net assets from capital
share transactions (88,552,604) (476,389,751)
---------------- ----------------
Net increase (decrease) in net assets 46,878,852 (578,893,646)
NET ASSETS
Beginning of year 400,779,168 979,672,814
---------------- ----------------
End of year $ 447,658,020 $ 400,779,168
================ ================
ACCUMULATED NET INVESTMENT LOSS $ -- $ --
================ ================
<Caption>
SMALL CAP GROWTH FUND
------------------------------------
FOR THE YEAR ENDED
------------------------------------
2003 2002
---------------- ----------------
FROM OPERATIONS
Net investment loss $ (611,652) $ (498,823)
Net realized gain (loss) from investments (1,191,044) (5,878,573)
Net change in unrealized appreciation (depreciation)
from investments 21,978,881 (2,296,548)
---------------- ----------------
Net increase (decrease) in net assets resulting
from operations 20,176,185 (8,673,944)
---------------- ----------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
---------------- ----------------
Distributions from net realized gains
Common Class shares -- --
Advisor shares -- --
---------------- ----------------
Net decrease in net assets resulting from dividends
and distributions -- --
---------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 41,262,405 75,293,387
Reinvestment of dividends and distributions -- --
Net asset value of shares redeemed (26,522,563) (59,824,402)
---------------- ----------------
Net increase (decrease) in net assets from capital
share transactions 14,739,842 15,468,985
---------------- ----------------
Net increase (decrease) in net assets 34,916,027 6,795,041
NET ASSETS
Beginning of year 43,239,890 36,444,849
---------------- ----------------
End of year $ 78,155,917 $ 43,239,890
================ ================
ACCUMULATED NET INVESTMENT LOSS $ -- $ --
================ ================
<Caption>
STRATEGIC SMALL CAP FUND
------------------------------------
FOR THE YEAR FOR THE PERIOD
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2003 2002(1)
---------------- ----------------
FROM OPERATIONS
Net investment loss $ (15,710) $ (2,816)
Net realized gain (loss) from investments 67,185 (28,436)
Net change in unrealized appreciation (depreciation)
from investments 259,799 (16,426)
---------------- ----------------
Net increase (decrease) in net assets resulting
from operations 311,274 (47,678)
---------------- ----------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Class A shares (21,738) --
Class B shares (15,631) --
Class C shares (15,631) --
---------------- ----------------
Distributions from net realized gains
Common Class shares -- --
Advisor shares -- --
---------------- ----------------
Net decrease in net assets resulting from dividends
and distributions (53,000) --
---------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 128,640 1,000,279
Reinvestment of dividends and distributions -- --
Net asset value of shares redeemed (28,005) --
---------------- ----------------
Net increase (decrease) in net assets from capital
share transactions 100,635 1,000,279
---------------- ----------------
Net increase (decrease) in net assets 358,909 952,601
NET ASSETS
Beginning of year 952,601 --
---------------- ----------------
End of year $ 1,311,510 $ 952,601
================ ================
ACCUMULATED NET INVESTMENT LOSS $ (69,826) $ (1,355)
================ ================
</Table>
See Accompanying Notes to Financial Statements.
35
<Page>
CREDIT SUISSE CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-----------------------------------------------------
2003 2002 2001
------------- ------------- -------------
PER SHARE DATA
Net asset value, beginning of year $ 12.53 $ 16.23 $ 30.57
------------- ------------- -------------
INVESTMENT OPERATIONS
Net investment loss (0.05)(1) (0.07)(1) (0.02)
Net gain (loss) on investments
(both realized and unrealized) 2.27 (3.63) (10.04)
------------- ------------- -------------
Total from investment operations 2.22 (3.70) (10.06)
------------- ------------- -------------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -- -- --
Distributions from net realized gains -- 0.00(2) (4.28)
------------- ------------- -------------
Total dividends and distributions -- -- (4.28)
------------- ------------- -------------
NET ASSET VALUE, END OF YEAR $ 14.75 $ 12.53 $ 16.23
============= ============= =============
Total return(3) 17.72% (22.79)% (37.59)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 514,668 $ 566,064 $ 899,234
Ratio of expenses to average net assets(4) 1.15% 1.11% 0.99%
Ratio of net investment loss to average
net assets (0.39)% (0.45)% (0.09)%
Portfolio turnover rate 97% 50% 100%
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------
2000 1999
------------- -------------
PER SHARE DATA
Net asset value, beginning of year $ 25.82 $ 19.52
------------- -------------
INVESTMENT OPERATIONS
Net investment loss (0.05) (0.05)
Net gain (loss) on investments
(both realized and unrealized) 7.72 7.27
------------- -------------
Total from investment operations 7.67 7.22
------------- -------------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -- (0.01)
Distributions from net realized gains (2.92) (0.91)
------------- -------------
Total dividends and distributions (2.92) (0.92)
------------- -------------
NET ASSET VALUE, END OF YEAR $ 30.57 $ 25.82
============= =============
Total return(3) 31.50% 38.28%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 1,618,147 $ 1,005,670
Ratio of expenses to average net assets(4) 0.98% 1.01%
Ratio of net investment loss to average
net assets (0.19)% (0.23)%
Portfolio turnover rate 140% 144%
</Table>
- ----------
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction to
the Common Class shares' net expense ratio by .02%, and .01% for the years
ended October 31, 2000 and 1999, respectively. The Common Class shares'
operating expense ratios after reflecting these arrangements were .96% and
1.00% for the years ended October 31, 2000 and 1999, respectively. For the
years ended October 31, 2003, 2002 and 2001, there was no effect on the net
operating expense ratio because of transfer agent credits.
See Accompanying Notes to Financial Statements.
36
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 12.16 $ 15.82 $ 29.88 $ 25.28 $ 19.21
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss (0.11)(1) (0.14)(1) (0.12) (0.21) (0.20)
Net gain (loss) on investments
(both realized and unrealized) 2.19 (3.52) (9.81) 7.58 7.18
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.08 (3.66) (9.93) 7.37 6.98
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- 0.00(2) (4.13) (2.77) (0.91)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 14.24 $ 12.16 $ 15.82 $ 29.88 $ 25.28
========== ========== ========== ========== ==========
Total return(3) 17.11% (23.13)% (37.91)% 30.83% 37.62%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 17,380 $ 16,693 $ 25,882 $ 34,058 $ 29,299
Ratio of expenses to average net assets(4) 1.65% 1.61% 1.49% 1.48% 1.51%
Ratio of net investment loss to average
net assets (0.90)% (0.96)% (0.62)% (0.69)% (0.73)%
Portfolio turnover rate 97% 50% 100% 140% 144%
</Table>
- ----------
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction to
the Advisor Class shares' net expense ratio by .02% and .01% for the years
ended October 31, 2000 and 1999, respectively. The Advisor Class shares'
operating expense ratios after reflecting these arrangements were 1.46% and
1.50% for the years ended October 31, 2000 and 1999, respectively. For the
years ended October 31, 2003, 2002 and 2001, there was no effect on the net
operating expense ratio because of transfer agent credits.
See Accompanying Notes to Financial Statements.
37
<Page>
(For a Class A Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 12.50 $ 17.75
---------------- ----------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.09) (0.09)
Net gain (loss) on investments (both realized and unrealized) 2.27 (5.16)
---------------- ----------------
Total from investment operations 2.18 (5.25)
---------------- ----------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- 0.00(3)
---------------- ----------------
NET ASSET VALUE, END OF PERIOD $ 14.68 $ 12.50
================ ================
Total return(4) 17.44% (29.57)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 1,152 $ 450
Ratio of expenses to average net assets(5) 1.40% 1.40%(6)
Ratio of net investment loss to average net assets (0.69)% (0.77)%(6)
Portfolio turnover rate 97% 50%
</Table>
- ----------
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price, reinvestment
of all dividends and distributions, and no sales charge. Total returns for
periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2003 and
2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
38
<Page>
(For a Class B Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 12.41 $ 17.75
------------- -------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.19) (0.18)
Net gain (loss) on investments (both realized and unrealized) 2.25 (5.16)
------------- -------------
Total from investment operations 2.06 (5.34)
------------- -------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- 0.00(3)
------------- -------------
NET ASSET VALUE, END OF PERIOD $ 14.47 $ 12.41
============= =============
Total return(4) 16.60% (30.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 545 $ 206
Ratio of expenses to average net assets(5) 2.15% 2.15%(6)
Ratio of net investment loss to average net assets (1.44)% (1.51)%(6)
Portfolio turnover rate 97% 50%
</Table>
- ----------
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2003 and
2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
39
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 12.41 $ 17.75
------------- -------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.19) (0.18)
Net gain (loss) on investments (both realized and unrealized) 2.25 (5.16)
------------- -------------
Total from investment operations 2.06 (5.34)
------------- -------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- 0.00(3)
------------- -------------
NET ASSET VALUE, END OF PERIOD $ 14.47 $ 12.41
============= =============
Total return(4) 16.60% (30.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 223 $ 93
Ratio of expenses to average net assets(5) 2.15% 2.14%(6)
Ratio of net investment loss to average net assets (1.44)% (1.49)%(6)
Portfolio turnover rate 97% 50%
</Table>
- ----------
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2003 and
2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
40
<Page>
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ------------ ------------
PER SHARE DATA
Net asset value, beginning of year $ 18.98 $ 23.60 $ 50.24 $ 43.73 $ 33.69
---------- ---------- ---------- ------------ ------------
INVESTMENT OPERATIONS
Net investment loss (0.22)(1) (0.23)(1) (0.26) (0.33) (0.33)
Net gain (loss) on investments
(both realized and unrealized) 8.03 (4.39) (17.89) 13.07 10.37
---------- ---------- ---------- ------------ ------------
Total from investment operations 7.81 (4.62) (18.15) 12.74 10.04
---------- ---------- ---------- ------------ ------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- 0.00(2) (8.49) (6.23) --
---------- ---------- ---------- ------------ ------------
NET ASSET VALUE, END OF YEAR $ 26.79 $ 18.98 $ 23.60 $ 50.24 $ 43.73
========== ========== ========== ============ ============
Total return(3) 41.15% (19.57)% (42.61)% 30.60% 29.80%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 407,262 $ 357,872 $ 877,983 $ 2,114,737 $ 1,592,595
Ratio of expenses to average net assets(4) 1.38% 1.35% 1.28% 1.19% 1.23%
Ratio of net investment loss to average
net assets (1.04)% (0.98)% (0.73)% (0.65)% (0.75)%
Portfolio turnover rate 68% 67% 177% 191% 154%
</Table>
- ----------
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Common Class Shares' net expense ratio by .02% and .01% for the
years ended October 31, 2000 and 1999, respectively. The Common Class
Shares' operating expense ratio after reflecting these arrangements were
1.17% and 1.22% for the years ended October 31, 2000 and 1999,
respectively. For the years ended October 31, 2003, 2002 and 2001, there
was no effect on the net operating expense ratio because of transfer agent
credits.
See Accompanying Notes to Financial Statements.
41
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ------------ ------------
PER SHARE DATA
Net asset value, beginning of year $ 17.90 $ 22.3 $ 48.02 $ 41.99 $ 32.51
---------- ---------- ---------- ------------ ------------
INVESTMENT OPERATIONS
Net investment loss (0.31)(1) (0.33)(1) (0.46) (0.61) (0.65)
Net gain (loss) on investments
(both realized and unrealized) 7.55 (4.15) (16.96) 12.61 10.13
---------- ---------- ---------- ------------ ------------
Total from investment operations 7.24 (4.48) (17.42) 12.00 9.48
---------- ---------- ---------- ------------ ------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- 0.00(2) (8.22) (5.97) --
---------- ---------- ---------- ------------ ------------
NET ASSET VALUE, END OF YEAR $ 25.14 $ 17.90 $ 22.38 $ 48.02 $ 41.99
========== ========== ========== ============ ============
Total return(3) 40.45% (20.01)% (42.88)% 29.96% 29.16%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 40,322 $ 42,906 $ 101,690 $ 277,802 $ 228,2442
Ratio of expenses to average net assets(4) 1.88% 1.85% 1.78 1.69 1.72%(4)
Ratio of net investment loss to average
net assets (1.53)% (1.49)% (1.23)% (1.15)% (1.25)%
Portfolio turnover rate 68% 67% 177% 191% 154%
</Table>
- ----------
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Advisor Class Shares' net expense ratio by .02% and .01% for the
years ended October 31, 2000 and 1999, respectively. The Advisor Class
Shares' operating expense ratios after reflecting these arrangements were
1.67% and 1.71% for the years ended October 31, 2000 and 1999,
respectively. For the years ended October 31, 2003, 2002 and 2001, there
was no effect on the net operating expense ratio because of transfer agent
credits.
See Accompanying Notes to Financial Statements.
42
<Page>
(For a Class A Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 18.90 $ 25.92
----------- -------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.33) (0.28)
Net gain (loss) on investments (both realized and unrealized) 8.03 (6.74)
----------- -------------
Total from investment operations 7.70 (7.02)
----------- -------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- 0.00(3)
----------- -------------
NET ASSET VALUE, END OF PERIOD $ 26.60 $ 18.90
=========== =============
Total return(4) 40.74% (27.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 75 $ 1
Ratio of expenses to average net assets(5) 1.63% 1.71%(6)
Ratio of net investment loss to average net assets (1.36)% (1.35)%(6)
Portfolio turnover rate 68% 67%
</Table>
- ----------
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2003 and
2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
43
<Page>
CREDIT SUISSE SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------- ---------- ---------- ------------ ------------
PER SHARE DATA
Net asset value, beginning of year $ 12.58 $ 15.38 $ 23.11 $ 16.60 $ 10.11
---------- ---------- ---------- ------------ ------------
INVESTMENT OPERATIONS
Net investment loss (0.18)(1) (0.18)(1) (0.18) (0.13) (0.13)
Net gain (loss) on investments
(both realized and unrealized) 5.74 (2.62) (7.55) 7.28 6.62
---------- ---------- ---------- ------------ ------------
Total from investment operations 5.56 (2.80) (7.73) 7.15 6.49
---------- ---------- ---------- ------------ ------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- (0.64) --
---------- ---------- ---------- ------------ ------------
NET ASSET VALUE, END OF YEAR $ 18.14 $ 12.58 $ 15.38 $ 23.11 $ 16.60
========== ========== ========== ============ ============
Total return(2) 44.20% (18.21)% (33.45)% 43.65% 64.19%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 77,236 $ 42,918 $ 36,445 $ 47,900 $ 9,020
Ratio of expenses to average net assets(3) 1.40% 1.40% 1.40% 1.42% 1.41%
Ratio of net investment loss to average
net assets (1.23)% (1.18)% (1.04)% (0.80)% (1.06)%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements 0.71% 0.98% 0.54% 0.56% 2.13%
Portfolio turnover rate 69% 72% 74% 94% 192%
</Table>
- ----------
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the period shown, total returns would have been lower.
(3) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Common Class Shares' net expense ratio by .02%, and .01% for the
years ended October 31, 2000, and 1999, respectively. The Common Shares'
operating expense ratio after reflecting these arrangements was 1.40% for
the years ended October 31, 2000 and 1999, respectively. For the years
ended October 31, 2003, 2002 and 2001, there was no effect on the net
operating expense ratio because of transfer agent credits.
See Accompanying Notes to Financial Statements.
44
<Page>
(For a Class A Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 12.57 $ 16.88
----------- -------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.18) (0.15)
Net gain (loss) on investments (both realized and unrealized) 5.75 (4.16)
----------- -------------
Total from investment operations 5.57 (4.31)
----------- -------------
NET ASSET VALUE, END OF PERIOD $ 18.14 $ 12.57
=========== =============
Total return(3) 44.31% (25.53)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 920 $ 322
Ratio of expenses to average net assets(4) 1.40% 1.40%(5)
Ratio of net investment loss to average net assets (1.24)% (1.14)%(5)
Decrease reflected in above operating
expense ratios due to waivers/reimbursements 0.71% 1.13%(5)
Portfolio turnover rate 69% 72%
</Table>
- ----------
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the period shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2003 and
2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
45
<Page>
CREDIT SUISSE STRATEGIC SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 9.54 $ 10.00
----------- -------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.11) (0.02)
Net gain (loss) on investments (both realized and unrealized) 3.05 (0.44)
----------- -------------
Total from investment operations 2.94 (0.46)
----------- -------------
LESS DIVIDENDS
Dividends from net investment income (0.54) --
----------- -------------
NET ASSET VALUE, END OF PERIOD $ 11.94 $ 9.54
=========== =============
Total return(3) 32.59% (4.60)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 593 $ 381
Ratio of expenses to average net assets(4) 1.40% 1.40%(5)
Ratio of net investment loss to average net assets (1.10)% (0.90)%(5)
Decrease reflected in above operating
expense ratios due to waivers/reimbursements 29.89% 39.96%(5)
Portfolio turnover rate 71% 33%
</Table>
- ----------
(1) For the period August 15, 2002 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2003 and
2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
46
<Page>
(For a Class B Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 9.52 $ 10.00
----------- -------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.18) (0.03)
Net gain (loss) on investments (both realized and unrealized) 3.04 (0.45)
----------- -------------
Total from investment operations 2.86 (0.48)
----------- -------------
LESS DIVIDENDS
Dividends from net investment income (0.52) --
----------- -------------
NET ASSET VALUE, END OF PERIOD $ 11.86 $ 9.52
=========== =============
Total return(3) 31.54% (4.80)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 356 $ 286
Ratio of expenses to average net assets(4) 2.15% 2.15%(5)
Ratio of net investment loss to average net assets (1.85)% (1.65)%(5)
Decrease reflected in above operating
expense ratios due to waivers/reimbursements 29.89% 39.96%(5)
Portfolio turnover rate 71% 33%
</Table>
- ----------
(1) For the period August 15, 2002 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2003 and
2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
47
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 9.52 $ 10.00
----------- -------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.18) (0.03)
Net gain (loss) on investments (both realized and unrealized) 3.04 (0.45)
----------- -------------
Total from investment operations 2.86 (0.48)
----------- -------------
LESS DIVIDENDS
Dividends from net investment income (0.52) --
----------- -------------
NET ASSET VALUE, END OF PERIOD $ 11.86 $ 9.52
=========== =============
Total return(3) 31.54% (4.80)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 362 $ 286
Ratio of expenses to average net assets(4) 2.15% 2.15%(5)
Ratio of net investment loss to average net assets (1.85)% (1.65)%(5)
Decrease reflected in above operating
expense ratios due to waivers/reimbursements 29.89% 39.96%(5)
Portfolio turnover rate 71% 33%
</Table>
- ----------
(1) For the period August 15, 2002 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2003 and
2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
48
<Page>
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 2003
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Credit Suisse Funds covered in this report are Credit Suisse Capital
Appreciation Fund ("Capital Appreciation"), Credit Suisse Emerging Growth Fund
("Emerging Growth"), Credit Suisse Small Cap Growth Fund ("Small Cap Growth"),
and Credit Suisse Strategic Small Cap Fund ("Strategic Small Cap"), which are
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as open-end management investment companies. Capital Appreciation and
Small Cap Growth are diversified as define in the 1940 Act. Emerging Growth and
Strategic Small Cap are non-diversified. Capital Appreciation was organized
under the laws of the Commonwealth of Massachusetts as a business trust on
January 20, 1987. Emerging Growth, Small Cap Growth and Strategic Small Cap were
incorporated under the laws of the State of Maryland on November 12, 1987,
October 31, 1996, and June 26, 2001, respectively.
Investment objectives for each Fund are as follows: Capital Appreciation
seeks long-term capital appreciation, Emerging Growth seeks maximum capital
appreciation, Small Cap Growth seeks growth of capital and Strategic Small Cap
seeks capital appreciation.
Capital Appreciation offers five classes of shares, Common Class, Advisor
Class, Class A, Class B, and Class C shares. Emerging Growth offers three
classes of shares, Common Class, Advisor Class, and Class A shares. Small Cap
Growth offers two classes of shares, Common Class and Class A shares. Strategic
Small Cap offers three classes of shares, Class A, Class B and Class C shares.
Effective December 12, 2001, Capital Appreciation, Emerging Growth and Small Cap
Growth closed the Common Class shares to new investors. Each class of shares in
each Fund represents an equal pro rata interest in each Fund, except that they
bear different expenses, which reflect the difference in the range of services
provided to them. Class A shares of each Fund are sold subject to a maximum
front-end sales charge of 5.75%. Class B shares are sold subject to a contingent
deferred sales charge which declines from 4.00% to zero depending on the period
of time the shares are held. Class C shares are sold subject to a contingent
deferred sales charge of 1.00% if the shares are redeemed within the first year
of purchase.
A) SECURITY VALUATION -- The net asset value of each Fund is determined
daily as of the close of regular trading on the New York Stock Exchange, Inc.
(the "Exchange") on each day the Exchange is open for business. Each Fund's
equity investments are valued at market value, which is generally determined
using the closing price on the exchange or market on which the security is
primarily traded at the time of valuation (the "Valuation Time"). If no sales
are reported, equity investments are generally valued at the most recent bid
quotation as of the Valuation Time or at the
49
<Page>
lowest asked quotation in the case of a short sale of securities. Debt
securities with a remaining maturity greater than 60 days are valued in
accordance with the price supplied by a pricing service, which may use a matrix,
formula or other objective method that takes into consideration market indices,
yield curves and other specific adjustments. Securities and other assets for
which market quotations are not readily available, or whose values have been
materially affected by events occurring before the Fund's Valuation Time but
after the close of the securities' primary markets, are valued at fair value as
determined in good faith by the Board of Trustees/Directors under procedures
established by the Board of Trustees/Directors. 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. Certain expenses are
class-specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon the relative net asset value
of the outstanding shares of that class. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income and distributions of net realized capital gains, if any, are
declared and paid at least annually. However, to the
50
<Page>
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 deter October 31, 2003mined 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.
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 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) SECURITIES LENDING -- Loans of securities are required at all times to
be secured by collateral at least equal to 102% of the market value of domestic
securities on loan including any accrued interest thereon and 105% of the market
value of foreign securities on loan including any accrued interest thereon. Cash
collateral received by the Funds in connection with securities lending activity
is pooled together with cash collateral for other funds/portfolios advised by
CSAM and may be invested in a variety of investments, including certain
CSAM-advised funds, money market instruments and 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 Funds had no securities out on loan at
October 31, 2003.
Credit Suisse First Boston ("CSFB"), an affiliate of CSAM, has been engaged
by the Funds to act as the Funds' securities lending agent. Prior to April 1,
2003, CSFB had agreed to charge each Fund fees for its securities
51
<Page>
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, each
Fund 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 each Fund shall be reduced to such lower fee
amount. There were no securities on loan, and no Fund received income from
securities lending for the year ended October 31, 2003.
I) OTHER -- The Funds may invest in securities of foreign countries and
governments which involve certain risks in addition to those inherent in
domestic investments. Such risks generally include, among others, currency risks
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.
Other risks of investing in foreign securities include liquidity and
valuation risks. The Funds may be subject to taxes imposed by countries in which
they invest, with respect to their investments in issuers existing or operating
in such countries. Such taxes are generally based on income earned or
repatriated and capital gains realized on the sale of such investments. These
Funds accrue such taxes when the related income or gains are earned.
Each of Capital Appreciation and Emerging Growth may invest up to 10% of
its total assets in non-publicly traded securities. Each of Small Cap Growth and
Strategic Small Cap may invest up to 15% of its net assets in such securities.
Non-publicly traded securities may be less liquid than publicly traded
securities. Although these securities may be resold in privately negotiated
transactions, the prices realized from such sales could differ from the price
originally paid by such Fund or the current carrying values, and the difference
could be material.
Strategic Small Cap capitalized certain costs which were included in the
offering of its shares. These costs amounted to $183,800 and were amortized over
a twelve month period from inception date, and are fully amortized at October
31, 2003.
52
<Page>
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser to each Fund. For its investment advisory
services, CSAM is entitled to receive a fee from each Fund based on the
following fee schedule:
<Table>
<Caption>
FUND ANNUAL RATE
---- -----------
Capital Appreciation 0.70% of average daily net assets
Emerging Growth 0.90% of average daily net assets
Small Cap Growth 1.00% of average daily net assets
Strategic Small Cap 0.95% of average daily net assets
</Table>
For the year ended October 31, 2003, investment advisory fees earned,
voluntarily waived, and expenses reimbursed for the Funds were as follows:
<Table>
<Caption>
GROSS NET
ADVISORY ADVISORY EXPENSE
FUND FEE WAIVER FEE REIMBURSEMENT
---- -------- ------ -------- -------------
Capital Appreciation $ 3,683,895 $ -- $ 3,683,895 $ --
Emerging Growth 3,518,018 -- 3,518,018 --
Small Cap Growth 495,712 (350,805) 144,907 --
Strategic Small Cap 9,756 (9,756) -- (297,163)
</Table>
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as each Fund's co-administrators.
For its co-administrative services, CSAMSI currently receives a fee
calculated at an annual rate of 0.10% of each Fund's average daily net assets.
For the year ended October 31, 2003, co-administrative services fees earned
by CSAMSI were as follows:
<Table>
<Caption>
FUND CO-ADMINISTRATION FEE
---- ---------------------
Capital Appreciation $ 526,271
Emerging Growth 390,891
Small Cap Growth 49,571
Strategic Small Cap 1,027
</Table>
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>
53
<Page>
For the year ended October 31, 2003, co-administrative services fees earned
by SSB (including out-of-pocket fees) were as follows:
<Table>
<Caption>
FUND CO-ADMINISTRATION FEE
---- ---------------------
Capital Appreciation $ 313,572
Emerging Growth 234,199
Small Cap Growth 35,852
Strategic Small Cap 6,502
</Table>
In addition to serving as each Fund's co-administrator, CSAMSI currently
serves as distributor of each Fund's shares. Pursuant to distribution plans
adopted by each Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. This fee is calculated at an annual rate of
0.25% of the average daily net assets of the Common Class shares of Small Cap
Growth. For the Advisor Class shares of Capital Appreciation and Emerging
Growth, the shareholder servicing fee is calculated at an annual rate of 0.50%
of the average daily net assets. For the Class A shares of each Fund, the fee is
calculated at an annual rate of 0.25% of average daily net assets. For the Class
B and Class C shares of Capital Appreciation and Strategic Small Cap, the fee is
calculated at an annual rate of 1.00% of average daily net assets. For the year
ended October 31, 2003, shareholder servicing and distribution fees paid to
CSAMSI were as follows:
<Table>
<Caption>
SHAREHOLDER SERVICING/
FUND DISTRIBUTION FEE
---- ----------------------
Capital Appreciation
Advisor $ 77,875
Class A 1,747
Class B 2,854
Class C 1,048
-----------
$ 83,524
===========
Emerging Growth
Advisor $ 188,397
Class A 42
-----------
$ 188,439
===========
Small Cap Growth
Common $ 122,793
Class A 1,135
-----------
$ 123,928
===========
Strategic Small Cap
Class A $ 1,098
Class B 2,921
Class C 2,958
-----------
$ 6,977
===========
</Table>
54
<Page>
Certain brokers, dealers and financial representatives provide transfer
agent related services to the Funds, and receive compensation for these services
from CSAM. CSAM is then reimbursed by the Funds. For the year ended October 31,
2003, the Funds reimbursed CSAM the following amounts, which are included in
each Fund's transfer agent expense as follows:
<Table>
<Caption>
FUND AMOUNT
---- ------
Capital Appreciation $ 870,748
Emerging Growth 739,821
Small Cap Growth 113,631
Strategic Small Cap --
</Table>
For the year ended October 31, 2003, CSAMSI and its affiliates advised the
Funds that it retained the following amounts from commissions earned on the sale
of the Funds' Class A shares:
<Table>
<Caption>
FUND AMOUNT
---- ------
Capital Appreciation $ 5,822
Emerging Growth 94
Small Cap Growth 5,906
Strategic Small Cap 1,573
</Table>
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Funds to provide certain financial printing and fulfillment services. For
the year ended October 31, 2003, Merrill was paid for its services by the Funds
as follows:
<Table>
<Caption>
FUND AMOUNT
---- ------
Capital Appreciation $ 15,524
Emerging Growth 16,122
Small Cap Growth 16,228
Strategic Small Cap 27,992
</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
October 31, 2003 the Funds had no loans outstanding under the Credit Facility.
55
<Page>
During the year ended October 31, 2003, the following Funds had borrowings
under the Credit Facility:
<Table>
<Caption>
WEIGHTED
AVERAGE MAXIMUM
AVERAGE DAILY INTEREST DAILY LOAN
FUND LOAN BALANCE RATE% OUTSTANDING
---- ------------- --------- -------------
Capital Appreciation $ 10,061,000 1.772% $ 10,840,000
Emerging Growth 5,362,000 1.750% 5,765,000
Small Cap Growth 2,565,200 1.760% 2,713,000
</Table>
NOTE 4. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 2003, purchases and sales of investment
securities (excluding short-term investments) were as follows:
<Table>
<Caption>
FUND PURCHASES SALES
---- --------- -----
Capital Appreciation $ 498,310,745 $ 644,094,777
Emerging Growth 257,101,970 339,723,441
Small Cap Growth 46,903,848 32,920,059
Strategic Small Cap 757,756 632,358
</Table>
NOTE 5. RESTRICTED SECURITIES
Certain investments of the Funds are restricted as to resale and are valued
at fair value as determined in good faith by or under the direction of the Board
of Trustees/Directors under procedures established by the Board of
Trustees/Directors in the absence of readily ascertainable market values. The
table below shows the number of shares held, the acquisition dates, aggregate
cost, fair value as of October 31, 2003, value per share of such security and
percentage of net assets that the securities represent.
<Table>
<Caption>
PERCENTAGE
SECURITY NUMBER OF ACQUISITION FAIR VALUE PER OF NET ASSET
FUND DESCRIPTION SHARES DATE COST VALUE SHARE VALUE
- ---- --------------- ------------ ------------ ------------ ------- --------- ---------------
Emerging Growth Celletra Ltd 1,102,524 4/05/2000 $ 7,000,000 $ -- $ -- 0.00%
Opal Concepts 792,603 8/31/1995 1,999,999 -- -- 0.00%
Small Cap Growth Planetweb, Inc. 27,600 9/08/2000 149,913 1,932 0.07 0.00%
</Table>
NOTE 6. CAPITAL SHARE TRANSACTIONS
Capital Appreciation is authorized to issue an unlimited number of full and
fractional shares of beneficial interest. Each of Emerging Growth and Small Cap
Growth have four billion full and fractional shares of capital stock authorized.
Strategic Small Cap has three billion full and fractional shares of capital
stock authorized. Emerging Growth has one billion and Small Cap
56
<Page>
Growth has two billion shares classified as Common Class shares. Emerging Growth
has two billion and Small Cap Growth has one billion shares classified as
Advisor Class shares. Emerging Growth, Small Cap Growth and Strategic Small Cap
have one billion shares classified as Class A shares. Strategic Small Cap has
one billion shares classified as Class B shares and Class C shares. Each Fund
has a par value of $.001 per share. Transactions in classes of each Fund were as
follows:
<Table>
<Caption>
CAPITAL APPRECIATION
--------------------------------------------------------------------------
COMMON CLASS
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 6,096,105 $ 80,336,248 17,137,894 $ 273,794,775
Shares issued in reinvestment
of distributions -- -- 3,458 62,484
Shares redeemed (16,395,532) (213,752,796) (27,374,743) (419,401,989)
-------------- ---------------- --------------- ----------------
Net decrease (10,299,427) $ (133,416,548) (10,233,391) $ (145,544,730)
============== ================ =============== ================
<Caption>
CAPITAL APPRECIATION
--------------------------------------------------------------------------
ADVISOR CLASS
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 363,509 $ 4,570,624 619,470 $ 8,855,133
Shares issued in reinvestment
of distributions -- -- 109 1,924
Shares redeemed (516,459) (6,499,704) (882,304) (12,218,492)
-------------- ---------------- --------------- ----------------
Net decrease (152,950) $ (1,929,080) (262,725) $ (3,361,435)
============== ================ =============== ================
<Caption>
CAPITAL APPRECIATION
--------------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 59,616 $ 810,749 41,079 $ 563,424
Shares redeemed (17,150) (229,812) (5,111) (59,757)
-------------- ---------------- --------------- ----------------
Net increase 42,466 $ 580,937 35,968 $ 503,667
============== ================ =============== ================
</Table>
57
<Page>
<Table>
<Caption>
CAPITAL APPRECIATION
--------------------------------------------------------------------------
CLASS B
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 31,099 $ 411,329 19,968 $ 279,354
Shares redeemed (10,030) (121,559) (3,389) (42,956)
-------------- ---------------- --------------- ----------------
Net increase 21,069 $ 289,770 16,579 $ 236,398
============== ================ =============== ================
<Caption>
CAPITAL APPRECIATION
--------------------------------------------------------------------------
CLASS C
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 10,123 $ 141,430 8,584 $ 121,896
Shares redeemed (2,182) (27,258) (1,108) (13,572)
-------------- ---------------- --------------- ----------------
Net increase 7,941 $ 114,172 7,476 $ 108,324
============== ================ =============== ================
<Caption>
EMERGING GROWTH
--------------------------------------------------------------------------
COMMON CLASS
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 3,872,754 $ 85,663,702 5,219,691 $ 124,703,050
Shares issued in reinvestment
of distributions -- -- 3,599 97,148
Shares redeemed (7,524,829) (159,014,240) (23,572,373) (551,953,242)
-------------- ---------------- --------------- ----------------
Net decrease (3,652,075) $ (73,350,538) (18,349,083) $ (427,153,044)
============== ================ =============== ================
<Caption>
EMERGING GROWTH
--------------------------------------------------------------------------
ADVISOR CLASS
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 713,469 $ 15,298,835 290,550 $ 6,522,051
Shares issued in reinvestment
of distributions -- -- 470 12,022
Shares redeemed (1,506,326) (30,566,605) (2,438,342) (55,771,920)
-------------- ---------------- --------------- ----------------
Net decrease (792,857) $ (15,267,770) (2,147,322) $ (49,237,847)
============== ================ =============== ================
</Table>
58
<Page>
<Table>
<Caption>
EMERGING GROWTH
--------------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 2,762 $ 65,730 44 $ 1,140
Shares redeemed (1) (26) -- --
-------------- ---------------- --------------- ----------------
Net increase 2,761 $ 65,704 44 $ 1,140
============== ================ =============== ================
<Caption>
SMALL CAP GROWTH
--------------------------------------------------------------------------
COMMON CLASS
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 2,756,033 $ 40,668,973 4,756,064 $ 74,660,322
Shares redeemed (1,910,389) (26,349,264) (3,714,321) (59,611,761)
-------------- ---------------- --------------- ----------------
Net increase 845,644 $ 14,319,709 1,041,743 $ 15,048,561
============== ================ =============== ================
<Caption>
SMALL CAP GROWTH
--------------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002(1)
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 36,233 $ 593,432 42,063 $ 633,065
Shares redeemed (11,111) (173,299) (16,471) (212,641)
-------------- ---------------- --------------- ----------------
Net increase 25,122 $ 420,133 25,592 $ 420,424
============== ================ =============== ================
<Caption>
STRATEGIC SMALL CAP
--------------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002(2)
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 12,591 $ 124,050 40,000 $ 400,000
Shares redeemed (2,917) (28,005) -- --
-------------- ---------------- --------------- ----------------
Net increase 9,674 $ 96,045 40,000 $ 400,000
============== ================ =============== ================
<Caption>
STRATEGIC SMALL CAP
--------------------------------------------------------------------------
CLASS B
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002(2)
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold -- $ -- 30,000 $ 300,000
-------------- ---------------- --------------- ----------------
Net increase -- $ -- 30,000 $ 300,000
============== ================ =============== ================
</Table>
59
<Page>
<Table>
<Caption>
STRATEGIC SMALL CAP
--------------------------------------------------------------------------
CLASS C
--------------------------------------------------------------------------
FOR THE YEAR ENDED
--------------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002(2)
---------------------------------- -----------------------------------
SHARES VALUE SHARES VALUE
-------------- ---------------- --------------- ----------------
Shares sold 550 $ 4,590 30,000 $ 300,279
-------------- ---------------- --------------- ----------------
Net increase 550 $ 4,590 30,000 $ 300,279
============== ================ =============== ================
</Table>
- ----------
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) For the period August 15, 2002 (inception date) through October 31, 2002.
On October 31, 2003, the number of shareholders that held 5% or more of the
outstanding shares of each Fund were as follows:
<Table>
<Caption>
NUMBER OF APPROXIMATE PERCENTAGE
FUND SHAREHOLDERS OF OUTSTANDING SHARES
---- ------------ ----------------------
Capital Appreciation
Common 3 37%
Advisor 2 66%
Class A 5 54%
Class B 6 78%
Class C 4 88%
Emerging Growth
Common 4 56%
Advisor 1 92%
Class A 3 97%
Small Cap Growth
Common 4 78%
Class A 5 39%
Strategic Small Cap
Class A 2 85%
Class C 1 98%
</Table>
Some of the shareholders are omnibus accounts, which hold shares on behalf
of several individual shareholders.
NOTE 7. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP. These differences
are primarily due to differing treatments of losses deferred due to wash sales.
60
<Page>
NOTE 7. FEDERAL INCOME TAXES
The tax character of dividends and distributions paid during the years
ended October 31, 2003 and 2002 by the Funds were as follows:
<Table>
<Caption>
ORDINARY INCOME LONG-TERM CAPITAL GAIN
-------------------------------------------------------
FUND 2003 2002 2003 2002
---- ---------- ------------ ---------- -----------
Capital Appreciation $ -- $ 66,712 $ -- $ --
Emerging Growth -- 110,445 -- --
Small Cap Growth -- -- -- --
Strategic Small Cap 53,000 -- -- --
</Table>
At October 31, 2003, the components of distributable earnings on a tax
basis were as follows:
<Table>
<Caption>
CAPITAL EMERGING SMALL CAP STRATEGIC
APPRECIATION GROWTH GROWTH SMALL CAP
-------------- -------------- ------------- -------------
Undistributed ordinary income $ -- $ -- $ -- $ 102,872
Accumulated realized gain (loss) (402,273,375) (301,768,602) (18,232,078) 8,967
Unrealized appreciation 39,059,896 86,454,332 13,294,115 239,533
Undistributed ordinary loss - other -- -- -- (139,076)
-------------- -------------- ------------- -------------
(363,213,479) (215,314,270) (4,937,963) 212,296
============== ============== ============= =============
</Table>
At October 31, 2003, the Funds had capital loss carryforwards available to
offset possible future capital gains as follows:
<Table>
<Caption>
EXPIRES OCTOBER 31,
-----------------------------------------------------------------
FUND 2008 2009 2010 2011
---- ------------- -------------- ------------- -------------
Capital Appreciation $ -- $ 177,790,442 $ 186,923,215 $ 37,559,718
Emerging Growth -- 277,098,677 24,669,925 --
Small Cap Growth 1,468,533 10,615,419 5,907,087 241,039
Strategic Small Cap -- -- -- --
</Table>
As of October 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>
GROSS GROSS
UNREALIZED UNREALIZED NET UNREALIZED
FUND IDENTIFIED COST APPRECIATION (DEPRECIATION) APPRECIATION
---- --------------- -------------- -------------- --------------
Capital Appreciation $ 502,409,441 $ 72,799,462 $ (33,739,566) $ 39,059,896
Emerging Growth 353,631,216 107,103,828 (20,649,496) 86,454,332
Small Cap Growth 64,996,760 14,770,486 (1,476,371) 13,294,115
Strategic Small Cap 1,054,403 271,697 (32,164) 239,533
</Table>
61
<Page>
At October 31, 2003, accumulated undistributed net investment income and
paid-in capital have been adjusted for current period permanent book/tax
differences which arose principally from differing book/tax treatments of net
operating losses. Net assets were not affected by these reclassifications:
<Table>
<Caption>
PAID-IN UNDISTRIBUTED NET
FUND CAPITAL INVESTMENT INCOME
---- ------------- -----------------
Capital Appreciation $ (2,131,927) $ 2,131,927
Emerging Growth (4,237,713) 4,237,713
Small Cap Growth (611,652) 611,652
Strategic Small Cap (239) 239
Rider B
</Table>
NOTE 8. CONTINGENCIES
In the normal course of business, each Fund may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Funds' maximum exposure under these arrangements is dependent on future claims
that may be made against the Funds and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
62
<Page>
CREDIT SUISSE FUNDS
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors/Trustees and Shareholders of
Credit Suisse Capital Appreciation Fund;
Credit Suisse Emerging Growth Fund, Inc.;
Credit Suisse Small Cap Growth Fund, Inc.;
Credit Suisse Strategic Small Cap Fund, Inc.:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Credit Suisse Capital Appreciation
Fund, Credit Suisse Emerging Growth Fund, Inc., Credit Suisse Small Cap Growth
Fund, Inc. and Credit Suisse Strategic Small Cap Fund, Inc. (collectively
referred to as the "Funds") at October 31, 2003, the results of each of their
operations for the year then ended, the changes in each of their net assets for
each of the two years (or periods) in the period then ended and the financial
highlights for each of the years (or periods) presented, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with 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 October 31, 2003 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 23, 2003
63
<Page>
CREDIT SUISSE FUNDS
INFORMATION CONCERNING DIRECTORS/TRUSTEES AND OFFICERS (UNAUDITED)
<Table>
<Caption>
NUMBER OF
TERM PORTFOLIOS IN
OF OFFICE(1) FUND
AND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING DIRECTOR/ HELD BY
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE DIRECTOR/TRUSTEE
- ----------------- ----------- ------------- -------------------------- ------------- ----------------
INDEPENDENT DIRECTORS/TRUSTEES
Richard H. Francis Director/ Since Currently retired 44 None
c/o Credit Suisse Asset Trustee, 1999
Management, LLC Nominating (Capital
466 Lexington Avenue and Audit Appreciation,
New York, New York Committee Emerging
10017-3140 Member Growth and
Small Cap
Date of Birth: 04/23/32 Growth);
since
Fund
Inception
(Strategic
Small Cap)
Jeffrey E. Garten Director/ Since 1998(2) Dean of Yale School of 43 Director of
Box 208200 Trustee, (Capital Management and William S. Aetna, Inc.
New Haven, Connecticut Nominating Appreciation, Beinecke Professor in the (insurance
06520-8200 and Audit Emerging Practice of International company);
Committee Growth and Trade and Finance (11/95 Director of
Date of Birth: 10/29/46 Member Small Cap - present) Calpine
Growth); Corporation
since (energy
Fund provider);
Inception Director of
(Strategic CarMax Group
Small Cap) (used car
dealers)
</Table>
- ----------
(1) Each Director/Trustee and Officer serves until his or her respective
successor has been duly elected and qualified.
(2) Mr. Garten was initially appointed as a Director/Trustee of Capital
Appreciation, Emerging Growth and Small Cap Growth on February 6, 1998. He
resigned as Director/Trustee on February 3, 2000 and was subsequently
reappointed on December 21, 2000.
64
<Page>
<Table>
<Caption>
NUMBER OF
TERM PORTFOLIOS IN
OF OFFICE(1) FUND
AND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING DIRECTOR/ HELD BY
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE DIRECTOR/TRUSTEE
- ----------------- ----------- ------------- -------------------------- ------------- ----------------
INDEPENDENT DIRECTORS/TRUSTEES
Peter F. Krogh Director/ Since 2001 Dean Emeritus and 43 Director of
301 ICC Trustee, (Capital Distinguished Professor Carlisle
Georgetown University Nominating Appreciation, of International Affairs Companies
Washington, DC 20057 and Audit Emerging at the Edmund A. Walsh Incorporated
Committee Growth and School of Foreign (diversified
Date of Birth: 02/11/37 Member Small Cap Service, Georgetown manufacturing
Growth); University (6/95 - company);
since Fund present); Moderator of Member of
Inception PBS foreign affairs Selection
(Strategic television series (1988 - Committee for
Small Cap) 2000) Truman
Scholars and
Henry Luce
Scholars; Senior
Associate of
Center for
Strategic and
International
Studies; Trustee
of numerous
world affairs
organizations
James S. Pasman, Jr. Director/ Since 1999 Currently retired 45 Director of
c/o Credit Suisse Asset Trustee, (Capital Education
Management, LLC Nominating Appreciation, Management
466 Lexington Avenue and Audit Emerging Corp.
New York, New York Committee Growth and
10017-3140 Member Small Cap
Growth);
Date of Birth: 12/20/30 since Fund
Inception
(Strategic
Small Cap)
</Table>
65
<Page>
<Table>
<Caption>
NUMBER OF
TERM PORTFOLIOS IN
OF OFFICE(1) FUND
AND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING DIRECTOR/ HELD BY
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE DIRECTOR/TRUSTEE
- ----------------- ----------- ------------- -------------------------- ------------- ----------------
INDEPENDENT DIRECTORS/TRUSTEES
Steven N. Rappaport Director/ Since 1999 Partner of Lehigh Court, 45 None
Lehigh Court, LLC Trustee, (Capital LLC and RZ Capital
40 East 52nd Street Nominating Appreciation, (private investment
New York, New York Committee Emerging firms) (7/02 - present);
10022 Member and Growth and Consultant to SunGard
Audit Small Cap Securities Finance, Inc.
Date of Birth: 07/10/48 Committee Growth); from February 2002 to
Chairman since Fund July 2002; President of
Inception SunGard Securities
(Strategic Finance, Inc. from 2001
Small Cap) to February 2002;
President of Loanet,
Inc. (on-line accounting
service) from
1997 to 2001
INDEPENDENT DIRECTORS/TRUSTEES
Joseph D. Gallagher(3) Director/ Since 2003 Managing Director and 46 None
Credit Suisse Asset Trustee, (all Funds) Chief Executive Officer
Management, LLC Chairman of of CSAM since 2003;
466 Lexington Avenue the Board and Global Chief Financial
New York, New York Chief Officer, Credit Suisse
10017-3140 Executive Asset Management since
Officer 1999; Chief Executive
Date of Birth: 12/14/62 Officer and Director
of Credit Suisse 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,
Credit Suisse First
Boston, Hong Kong,
China, from January
1998 to May 1999
</Table>
- ----------
(3) Mr. Gallagher is a Director/Trustee who is an "interested person" of the
Fund as defined in the 1940 Act, because he is an officer of CSAM.
66
<Page>
<Table>
<Caption>
NUMBER OF
TERM PORTFOLIOS IN
OF OFFICE(1) FUND
AND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING DIRECTOR/ HELD BY
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE DIRECTOR/TRUSTEE
- ----------------- ----------- ------------- -------------------------- ------------- ----------------
INDEPENDENT DIRECTORS/TRUSTEES
William W. Priest, Jr.(4) Director/ Since 1999 Co-Managing Partner, 50 Director of
Steinberg Priest & Sloane Trustee (Capital Steinberg Priest & Globe Wireless,
Capital Management, LLC Appreciation, Sloane Capital LLC (a maritime
12 East 49th Street Emerging Management, LLC since communications
12th Floor Growth and March 2001; Chairman company);
New York, New York 10017 Small Cap and Managing Director of
Growth); Director of CSAM InfraRed X (a
Date of Birth: 09/24/41 since Fund from 2000 to medical device
Inception February 2001, Chief company)
(Strategic Executive Officer and
Small Cap) Managing Director of
CSAM from
1990 to 2000;
</Table>
- ------------
(4) Mr. Priest is a Director/Trustee 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)
67
<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 Since 1999 Managing Director and Global General Counsel of
Credit Suisse Asset President and (Capital CSAM; Associated with CSAM since 1997; Officer of
Management, LLC Secretary Appreciation, other Credit Suisse Funds
466 Lexington Avenue Emerging
New York, New York Growth and
10017-3140 Small Cap
Growth);
Date of Birth: 07/06/64 since Fund
Inception
(Strategic
Small Cap)
Michael A. Pignataro Chief Since 1999 Director and Director of Fund Administration of
Credit Suisse Asset Financial (Capital CSAM; Associated with CSAM since 1984; Officer of
Management, LLC Officer and Appreciation, other Credit Suisse Funds
466 Lexington Avenue Treasurer Emerging
New York, New York Growth and
10017-3140 Small Cap
Growth);
Date of Birth: 11/15/59 since Fund
Inception
(Strategic
Small Cap)
Gregory N. Bressler Assistant Since 2000 Director and Deputy General Counsel of CSAM;
Credit Suisse Asset Secretary (Capital Associated with CSAM since January 2000;
Management, LLC Appreciation, Associated with the law firm of Swidler Berlin
466 Lexington Avenue Emerging Shereff Friedman LLP from 1996 to 2000; Officer of
New York, New York Growth and other Credit Suisse Funds
10017-3140 Small Cap
Growth);
Date of Birth: 11/17/66 since Fund
Inception
(Strategic
Small Cap)
</Table>
68
<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
Rocco A. Del Guercio Assistant Since 1999 Vice President of CSAM; Associated with CSAM
Credit Suisse Asset Treasurer (Capital since June 1996; Officer of other Credit Suisse
Management, LLC Appreciation, Funds
466 Lexington Avenue Emerging
New York, New York Growth and
10017-3140 Small Cap
Growth);
Date of Birth: 04/28/63 since Fund
Inception
(Strategic
Small Cap)
Joseph Parascondola Assistant Since 2000 Assistant Vice President of CSAM; Associated with
Credit Suisse Asset Treasurer (Capital CSAM since April 2000; Assistant Vice President,
Management, LLC Appreciation, Deutsche Asset Management from January 1999 to
466 Lexington Avenue Emerging April 2000; Assistant Vice President, Weiss, Peck &
New York, New York Growth and Greer LLC from November 1995 to December 1998;
10017-3140 Small Cap Officer of other Credit Suisse Funds
Growth);
Date of Birth: 06/05/63 since Fund
Inception
(Strategic
Small Cap)
Robert M. Rizza Assistant Since 2002 Assistant Vice President of CSAM; Associated with
Credit Suisse Asset Treasurer (all Funds) CSAM since 1998; Officer of other Credit Suisse
Management, LLC 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/Trustees and is available, without charge, upon request, by
calling 800-927-2874.
69
<Page>
CREDIT SUISSE FUNDS
TAX INFORMATION LETTER (UNAUDITED)
October 31, 2003
IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS
Corporate shareholders should note for the year ended October 31, 2003, the
percentage of the Funds' 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
---- ----------
Capital Appreciation 0.00%
Emerging Growth 0.00%
Small Cap Growth 0.00%
Strategic Small Cap 1.57%
</Table>
For the fiscal year ended October 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.
70
<Page>
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<Page>
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<Page>
P.O. BOX 55030, BOSTON, MA 02205-5030 [CREDIT SUISSE ASSET MANAGEMENT LOGO]
800-927-8974 - www.csam-americas.com
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. CSGTH-2-1003
<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
11(a)(1) to this Form. There were no amendments to the code during the fiscal
year ended October 31, 2003. There were no waivers or implicit waivers from the
code granted by the registrant during the fiscal year ended October 31, 2003.
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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
N-CSR disclosure requirement not yet effective with respect to the registrant.
ITEM 10. 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 11. EXHIBITS.
(a)(1) The registrant's code of ethics is an exhibit to this report.
<Page>
(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
(a)(3) Not applicable.
(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
CREDIT SUISSE CAPITAL APPRECIATION FUND
/s/ Joseph D. Gallagher
-----------------------
Name: Joseph D. Gallagher
Title: Chief Executive Officer
Date: January 5, 2004
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: January 5, 2004
/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: January 5, 2004