<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. 811-04604
-----------------------------------------------------
CREDIT SUISSE CAPITAL FUNDS
-----------------------------------------------------
(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 Funds
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code:(212) 875-3500
Date of fiscal year end: October 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
LARGE CAP VALUE FUND
- - CREDIT SUISSE
SMALLCAP VALUE 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.
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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 CHANGES 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.
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CREDIT SUISSE LARGE CAP VALUE FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2003 (Unaudited)
November 20, 2003
Dear Shareholder:
For the 12 months ended October 31, 2003, the Common Class shares of Credit
Suisse Large Cap Value Fund (the "Fund") had a gain of 13.63%, versus an
increase of 22.88% for the Russell 1000(R) Value 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 returns of 13.97%, 13.07% and 13.14%, respectively, for the same period. The
Fund's Advisor Class shares had a total return of 4.90% for the period beginning
June 6, 2003 (the inception date of the Fund's Advisor Class) and ending October
31, 2003.
The 12 month 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 participated in the market's rally, but it underperformed its
benchmark, which we attribute in large part to our focus on high quality
companies with relatively stable profits. The market's upward move was paced by
"high beta" stocks (i.e., stocks that tend to outperform in rallying markets),
representing companies with lackluster or even negative earnings. This was
particularly true among information technology companies, which benefited from
speculation that an improving economy would aid these long-struggling stocks.
The outperformance of lower-tier stocks for the period notwithstanding, we
continue to adhere to a discipline of owning profitable companies generating
current free cash flows, in the belief that this strategy will provide
competitive results over time.
Another factor that hindered the Fund was its underweighting in the
financial-services sector. The sector, which accounts for about a third of the
Fund's benchmark, outperformed the broader market for the 12 months.
In terms of noteworthy sector allocations, we ended the period with
overweighted positions in the materials and producer durables areas. This is
1
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based in part on evidence that capital spending appears to be improving.
Elsewhere of note, we intend to remain underweighted in the financial-services
sector over the next 12 months. Given the early stages of an economic rebound,
combined with burdensome budget and trade deficits and a weakening dollar, we
expect to see upward pressure on interest rates. While we do not believe there
will be a dramatic rise in rates, any increase might significantly hinder
earnings growth for certain financial companies.
Our search for opportunities in the technology sector continues, though
valuations have become more lofty here. We may selectively add technology stocks
if and when market volatility results in what we consider to be compelling
valuation stories.
THE CREDIT SUISSE VALUE TEAM
Stanley A. Nabi
Scott T. Lewis
Robert E. Rescoe
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 LARGE CAP VALUE FUND COMMON CLASS SHARES AND
THE RUSSELL 1000(R) VALUE INDEX(1) FROM INCEPTION (8/01/00).
<Table>
<Caption>
CREDIT SUISSE LARGE CAP VALUE FUND COMMON CLASS RUSSELL 1000(R) VALUE INDEX(1)
8/1/2000 $ 10,000 $ 10,000
8/31/2000 $ 10,432 $ 10,557
9/30/2000 $ 10,530 $ 10,654
10/31/2000 $ 10,870 $ 10,916
11/30/2000 $ 10,601 $ 10,511
12/31/2000 $ 11,296 $ 11,037
1/31/2001 $ 11,126 $ 11,079
2/28/2001 $ 10,956 $ 10,771
3/31/2001 $ 10,584 $ 10,391
4/30/2001 $ 11,027 $ 10,900
5/31/2001 $ 11,236 $ 11,145
6/30/2001 $ 10,898 $ 10,898
7/31/2001 $ 10,825 $ 10,875
8/31/2001 $ 10,430 $ 10,439
9/30/2001 $ 9,770 $ 9,704
10/31/2001 $ 9,751 $ 9,621
11/30/2001 $ 10,239 $ 10,180
12/31/2001 $ 10,548 $ 10,419
1/31/2002 $ 10,379 $ 10,339
2/28/2002 $ 10,506 $ 10,356
3/31/2002 $ 10,834 $ 10,845
4/30/2002 $ 10,504 $ 10,473
5/31/2002 $ 10,515 $ 10,526
6/30/2002 $ 9,897 $ 9,922
7/31/2002 $ 9,192 $ 8,999
8/31/2002 $ 9,208 $ 9,067
9/30/2002 $ 8,444 $ 8,059
10/31/2002 $ 9,006 $ 8,656
11/30/2002 $ 9,162 $ 9,201
12/31/2002 $ 8,886 $ 8,802
1/31/2003 $ 8,657 $ 8,589
2/28/2003 $ 8,482 $ 8,360
3/31/2003 $ 8,525 $ 8,374
4/30/2003 $ 9,089 $ 9,111
5/31/2003 $ 9,566 $ 9,700
6/30/2003 $ 9,675 $ 9,821
7/31/2003 $ 9,691 $ 9,967
8/31/2003 $ 9,839 $ 10,123
9/30/2003 $ 9,822 $ 10,023
10/31/2003 $ 10,234 $ 10,637
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE LARGE CAP VALUE FUND CLASS A SHARES AND
THE RUSSELL 1000(R) VALUE INDEX(1) FOR TEN YEARS.
<Table>
<Caption>
CREDIT SUISSE LARGE CAP VALUE FUND CLASS A RUSSELL 1000(R) VALUE INDEX(1)
(WITH MAXIMUM SALES CHARGE)
10/31/1993 $ 9,425 $ 10,000
11/30/1993 $ 9,312 $ 9,794
12/31/1993 $ 9,690 $ 9,980
1/31/1994 $ 10,149 $ 10,357
2/28/1994 $ 9,988 $ 10,003
3/31/1994 $ 9,490 $ 9,631
4/30/1994 $ 9,760 $ 9,816
5/31/1994 $ 9,789 $ 9,929
6/30/1994 $ 9,551 $ 9,691
7/31/1994 $ 9,882 $ 9,992
8/31/1994 $ 10,102 $ 10,280
9/30/1994 $ 9,834 $ 9,938
10/31/1994 $ 9,856 $ 10,077
11/30/1994 $ 9,560 $ 9,670
12/31/1994 $ 9,460 $ 9,781
1/31/1995 $ 9,623 $ 10,082
2/28/1995 $ 9,878 $ 10,481
3/31/1995 $ 10,088 $ 10,711
4/30/1995 $ 10,243 $ 11,049
5/31/1995 $ 10,625 $ 11,514
6/30/1995 $ 10,671 $ 11,670
7/31/1995 $ 10,906 $ 12,077
8/31/1995 $ 11,015 $ 12,247
9/30/1995 $ 11,475 $ 12,690
10/31/1995 $ 11,443 $ 12,564
11/30/1995 $ 11,970 $ 13,201
12/31/1995 $ 12,251 $ 13,532
1/31/1996 $ 12,760 $ 13,954
2/29/1996 $ 12,922 $ 14,059
3/31/1996 $ 12,912 $ 10,170
4/30/1996 $ 13,034 $ 10,209
5/31/1996 $ 13,325 $ 10,337
6/30/1996 $ 13,378 $ 10,345
7/31/1996 $ 13,045 $ 9,954
8/31/1996 $ 13,183 $ 10,239
9/30/1996 $ 13,710 $ 10,646
10/31/1996 $ 14,029 $ 11,057
11/30/1996 $ 15,131 $ 11,859
12/31/1996 $ 14,939 $ 11,708
1/31/1997 $ 15,670 $ 12,276
2/28/1997 $ 15,922 $ 12,456
3/31/1997 $ 15,153 $ 12,008
4/30/1997 $ 15,714 $ 12,512
5/31/1997 $ 16,792 $ 13,211
6/30/1997 $ 17,471 $ 13,778
7/31/1997 $ 18,607 $ 14,815
8/31/1997 $ 17,698 $ 14,287
9/30/1997 $ 18,549 $ 15,150
10/31/1997 $ 18,312 $ 14,727
11/30/1997 $ 19,238 $ 15,378
12/31/1997 $ 19,829 $ 15,827
1/31/1998 $ 19,686 $ 15,603
2/28/1998 $ 21,073 $ 16,653
3/31/1998 $ 21,925 $ 17,672
4/30/1998 $ 21,848 $ 17,790
5/31/1998 $ 21,553 $ 17,526
6/30/1998 $ 22,363 $ 17,751
7/31/1998 $ 21,844 $ 17,438
8/31/1998 $ 18,942 $ 14,843
9/30/1998 $ 20,272 $ 15,695
10/31/1998 $ 21,817 $ 16,911
11/30/1998 $ 22,672 $ 17,699
12/31/1998 $ 23,515 $ 18,301
1/31/1999 $ 23,716 $ 18,447
2/28/1999 $ 23,218 $ 18,187
3/31/1999 $ 23,811 $ 18,563
4/30/1999 $ 25,169 $ 20,297
5/31/1999 $ 24,639 $ 20,074
6/30/1999 $ 25,885 $ 20,657
7/31/1999 $ 25,715 $ 20,052
8/31/1999 $ 24,983 $ 19,308
9/30/1999 $ 24,071 $ 18,633
10/31/1999 $ 24,952 $ 19,705
11/30/1999 $ 25,104 $ 19,551
12/31/1999 $ 25,957 $ 19,645
1/31/2000 $ 24,983 $ 19,005
2/29/2000 $ 23,516 $ 17,593
3/31/2000 $ 25,515 $ 19,739
4/30/2000 $ 25,723 $ 19,510
5/31/2000 $ 26,216 $ 19,716
6/30/2000 $ 25,329 $ 18,815
7/31/2000 $ 24,626 $ 19,051
8/31/2000 $ 25,965 $ 20,111
9/30/2000 $ 26,223 $ 20,296
10/31/2000 $ 27,058 $ 20,795
11/30/2000 $ 26,389 $ 20,024
12/31/2000 $ 28,125 $ 21,027
1/31/2001 $ 27,690 $ 21,107
2/28/2001 $ 27,267 $ 20,520
3/31/2001 $ 26,347 $ 19,796
4/30/2001 $ 27,449 $ 20,766
5/31/2001 $ 27,982 $ 21,233
6/30/2001 $ 27,134 $ 20,761
7/31/2001 $ 26,952 $ 20,718
8/31/2001 $ 25,969 $ 19,887
9/30/2001 $ 24,327 $ 18,487
10/31/2001 $ 24,278 $ 18,328
11/30/2001 $ 25,494 $ 19,393
12/31/2001 $ 26,267 $ 19,850
1/31/2002 $ 25,833 $ 19,697
2/28/2002 $ 26,148 $ 19,728
3/31/2002 $ 26,965 $ 20,661
4/30/2002 $ 26,159 $ 19,953
5/31/2002 $ 26,186 $ 20,052
6/30/2002 $ 24,629 $ 18,901
7/31/2002 $ 22,876 $ 17,143
8/31/2002 $ 22,929 $ 17,274
9/30/2002 $ 21,014 $ 15,353
10/31/2002 $ 22,426 $ 16,491
11/30/2002 $ 22,812 $ 17,529
12/31/2002 $ 22,128 $ 16,769
1/31/2003 $ 21,542 $ 16,363
2/28/2003 $ 21,107 $ 15,926
3/31/2003 $ 21,228 $ 15,953
4/30/2003 $ 22,619 $ 17,357
5/31/2003 $ 23,806 $ 18,478
6/30/2003 $ 24,099 $ 18,709
7/31/2003 $ 24,140 $ 18,988
8/31/2003 $ 24,509 $ 19,284
9/30/2003 $ 24,465 $ 19,095
10/31/2003 $ 25,560 $ 20,264
</Table>
3
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[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE LARGE CAP VALUE FUND CLASS B SHARES AND
THE RUSSELL 1000(R) VALUE INDEX(1) FROM INCEPTION (2/28/96).
<Table>
<Caption>
CREDIT SUISSE LARGE CAP VALUE FUND CLASS B
(WITH MAXIMUM CONTINGENT DEFERRED SALES CHARGE) RUSSELL 1000(R) VALUE INDEX(1)
2/28/1996 $ 10,000
2/29/1996 $ 9,963 $ 10,000
3/31/1996 $ 9,946 $ 10,170
4/30/1996 $ 10,034 $ 10,209
5/31/1996 $ 10,252 $ 10,337
6/30/1996 $ 10,290 $ 10,345
7/31/1996 $ 10,023 $ 9,954
8/31/1996 $ 10,124 $ 10,239
9/30/1996 $ 10,529 $ 10,646
10/31/1996 $ 10,767 $ 11,057
11/30/1996 $ 11,608 $ 11,859
12/31/1996 $ 11,449 $ 11,708
1/31/1997 $ 12,003 $ 12,276
2/28/1997 $ 12,190 $ 12,456
3/31/1997 $ 11,592 $ 12,008
4/30/1997 $ 12,016 $ 12,512
5/31/1997 $ 12,827 $ 13,211
6/30/1997 $ 13,343 $ 13,778
7/31/1997 $ 14,204 $ 14,815
8/31/1997 $ 13,502 $ 14,287
9/30/1997 $ 14,148 $ 15,150
10/31/1997 $ 13,953 $ 14,727
11/30/1997 $ 14,654 $ 15,378
12/31/1997 $ 15,089 $ 15,827
1/31/1998 $ 14,973 $ 15,603
2/28/1998 $ 16,016 $ 16,653
3/31/1998 $ 16,661 $ 17,672
4/30/1998 $ 16,589 $ 17,790
5/31/1998 $ 16,357 $ 17,526
6/30/1998 $ 16,958 $ 17,751
7/31/1998 $ 16,557 $ 17,438
8/31/1998 $ 14,347 $ 14,843
9/30/1998 $ 15,349 $ 15,695
10/31/1998 $ 16,506 $ 16,911
11/30/1998 $ 17,146 $ 17,699
12/31/1998 $ 17,772 $ 18,301
1/31/1999 $ 17,909 $ 18,447
2/28/1999 $ 17,524 $ 18,187
3/31/1999 $ 17,965 $ 18,563
4/30/1999 $ 18,977 $ 20,297
5/31/1999 $ 18,567 $ 20,074
6/30/1999 $ 19,498 $ 20,657
7/31/1999 $ 19,354 $ 20,052
8/31/1999 $ 18,800 $ 19,308
9/30/1999 $ 18,094 $ 18,633
10/31/1999 $ 18,760 $ 19,705
11/30/1999 $ 18,858 $ 19,551
12/31/1999 $ 19,486 $ 19,645
1/31/2000 $ 18,742 $ 19,005
2/29/2000 $ 17,635 $ 17,593
3/31/2000 $ 19,122 $ 19,739
4/30/2000 $ 19,271 $ 19,510
5/31/2000 $ 19,626 $ 19,716
6/30/2000 $ 18,949 $ 18,815
7/31/2000 $ 18,411 $ 19,051
8/31/2000 $ 19,403 $ 20,111
9/30/2000 $ 19,577 $ 20,296
10/31/2000 $ 20,196 $ 20,795
11/30/2000 $ 19,676 $ 20,024
12/31/2000 $ 20,955 $ 21,027
1/31/2001 $ 20,628 $ 21,107
2/28/2001 $ 20,302 $ 20,520
3/31/2001 $ 19,596 $ 19,796
4/30/2001 $ 20,414 $ 20,766
5/31/2001 $ 20,787 $ 21,233
6/30/2001 $ 20,149 $ 20,761
7/31/2001 $ 20,004 $ 20,718
8/31/2001 $ 19,258 $ 19,887
9/30/2001 $ 18,027 $ 18,487
10/31/2001 $ 17,982 $ 18,328
11/30/2001 $ 18,873 $ 19,393
12/31/2001 $ 19,434 $ 19,850
1/31/2002 $ 19,100 $ 19,697
2/28/2002 $ 19,326 $ 19,728
3/31/2002 $ 19,911 $ 20,661
4/30/2002 $ 19,300 $ 19,953
5/31/2002 $ 19,310 $ 20,052
6/30/2002 $ 18,154 $ 18,901
7/31/2002 $ 16,849 $ 17,143
8/31/2002 $ 16,869 $ 17,274
9/30/2002 $ 15,461 $ 15,353
10/31/2002 $ 16,491 $ 16,491
11/30/2002 $ 16,758 $ 17,529
12/31/2002 $ 16,248 $ 16,769
1/31/2003 $ 15,814 $ 16,363
2/28/2003 $ 15,491 $ 15,926
3/31/2003 $ 15,562 $ 15,953
4/30/2003 $ 16,582 $ 17,357
5/31/2003 $ 17,430 $ 18,478
6/30/2003 $ 17,642 $ 18,709
7/31/2003 $ 17,652 $ 18,988
8/31/2003 $ 17,915 $ 19,284
9/30/2003 $ 17,868 $ 19,095
10/31/2003 $ 18,646 $ 20,264
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE LARGE CAP VALUE FUND CLASS C SHARES AND
THE RUSSELL 1000(R) VALUE INDEX(1),(3) FROM INCEPTION (2/28/00).
<Table>
<Caption>
CREDIT SUISSE LARGE CAP VALUE FUND CLASS C
(WITH MAXIMUM CONTINGENT DEFERRED SALES CHARGE) RUSSELL 1000(R) VALUE INDEX(1),(3)
2/28/2000 $ 10,000 $ 10,000
2/29/2000 $ 10,066 $ 9,257
3/31/2000 $ 10,910 $ 10,386
4/30/2000 $ 10,991 $ 10,266
5/31/2000 $ 11,193 $ 10,374
6/30/2000 $ 10,812 $ 9,900
7/31/2000 $ 10,500 $ 10,024
8/31/2000 $ 11,067 $ 10,582
9/30/2000 $ 11,166 $ 10,679
10/31/2000 $ 11,520 $ 10,942
11/30/2000 $ 11,227 $ 10,536
12/31/2000 $ 11,958 $ 11,064
1/31/2001 $ 11,766 $ 11,106
2/28/2001 $ 11,574 $ 10,797
3/31/2001 $ 11,174 $ 10,416
4/30/2001 $ 11,641 $ 10,926
5/31/2001 $ 11,854 $ 11,172
6/30/2001 $ 11,490 $ 10,924
7/31/2001 $ 11,407 $ 10,901
8/31/2001 $ 10,981 $ 10,464
9/30/2001 $ 10,279 $ 9,727
10/31/2001 $ 10,253 $ 9,644
11/30/2001 $ 10,763 $ 10,204
12/31/2001 $ 11,079 $ 10,444
1/31/2002 $ 10,888 $ 10,364
2/28/2002 $ 11,017 $ 10,380
3/31/2002 $ 11,354 $ 10,871
4/30/2002 $ 11,004 $ 10,499
5/31/2002 $ 11,009 $ 10,551
6/30/2002 $ 10,354 $ 9,945
7/31/2002 $ 9,607 $ 9,021
8/31/2002 $ 9,618 $ 9,089
9/30/2002 $ 8,813 $ 8,078
10/31/2002 $ 9,397 $ 8,677
11/30/2002 $ 9,556 $ 9,224
12/31/2002 $ 9,258 $ 8,823
1/31/2003 $ 9,016 $ 8,610
2/28/2003 $ 8,825 $ 8,380
3/31/2003 $ 8,871 $ 8,394
4/30/2003 $ 9,449 $ 9,133
5/31/2003 $ 9,935 $ 9,723
6/30/2003 $ 10,051 $ 9,844
7/31/2003 $ 10,062 $ 9,991
8/31/2003 $ 10,213 $ 10,147
9/30/2003 $ 10,186 $ 10,047
10/31/2003 $ 10,632 $ 10,662
</Table>
4
<Page>
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
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 16.31% -- -- (0.57)%
Advisor Class -- -- -- 0.47%(5)
Class A Without Sales Charge(4) 16.42% 3.83% 10.17% 11.37%
Class A With Maximum
Sales Charge(4) 9.74% 2.61% 9.51% 11.24%
Class B Without CDSC 15.57% 3.09% -- 7.95%
Class B With CDSC 11.57% 3.09% -- 7.95%
Class C Without CDSC 15.58% -- -- 0.52%
Class C With CDSC 14.58% -- -- 0.52%
</Table>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 13.63% -- -- 0.71%
Advisor Class -- -- -- 4.90%(5)
Class A Without Sales Charge(4) 13.97% 3.22% 10.49% 11.44%
Class A With Maximum
Sales Charge(4) 7.40% 2.00% 9.84% 11.32%
Class B Without CDSC 13.07% 2.47% -- 8.46%
Class B With CDSC 9.07% 2.47% -- 8.46%
Class C Without CDSC 13.14% -- -- 1.68%
Class C With CDSC 12.14% -- -- 1.68%
</Table>
- ----------
(1) The Russell 1000(R) Value Index measures the performance of those companies
in the Russell 1000(R) Index with lower price-to-book ratios and lower
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 7.40%. Total return for
Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was 9.07%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 12.14%.
(3) Performance for the benchmark is not available for February 28, 2000 (date
of inception). For that reason, performance of the benchmark is shown from
March 1, 2000.
(4) Inception Date: 9/19/49.
(5) Returns for periods less than one year are not annualized.
5
<Page>
CREDIT SUISSE SMALL CAP VALUE FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2003 (Unaudited)
November 20, 2003
Dear Shareholder:
For the 12 months ended October 31, 2003, the Common Class shares of Credit
Suisse Small Cap Value Fund(1) (the "Fund") had a gain of 17.75%, versus
increases of 43.37% and 40.29%, respectively, for the Russell 2000(R) Index(2)
and the Russell 2000(R) Value Index.(2) The Fund's Class A shares(3) (without
sales charge), Class B shares(3) (without contingent deferred sales charge) and
Class C shares(3) (without contingent deferred sales charge) had gains of
17.80%, 16.88% and 16.87%, respectively, for the same period.
The 12 month 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's underperformance of its benchmarks can be best described in terms
of what it did not own, specifically lower-quality companies with lackluster or
even negative earnings and/or heavily indebted balance sheets. The market's
strong upward move was paced by such stocks -- particularly in the technology
area, with the Russell 2000 Value Index's technology component rising about 80%
in the period -- on speculation that an improving economy would aid them the
most. This trend was evident across the market-capitalization spectrum, but was
most pronounced in the small-cap value area, which is inhabited by a large
number of financially struggling companies (in addition to many companies that
we believe to have sound or improving financial profiles). The Fund's relative
performance for the 12 months notwithstanding, we continue to adhere to a
discipline of owning profitable companies generating current free cash flows, in
the belief that this strategy will provide competitive results over time.
From a sector perspective, another factor that hindered the Fund was its
underweighting in the financial-services area. The sector, which accounts for
about a third of the Fund's benchmark, outperformed the broader market for the
12 months.
6
<Page>
In terms of noteworthy sector allocation, we ended the period with
overweighted positions in the materials and producer durables areas. This is
based in part on evidence that capital spending appears to be improving.
Elsewhere of note, we intend to remain underweighted in the financial-services
sector over the next 12 months. Given the early stages of an economic rebound,
combined with burdensome budget and trade deficits and a weakening dollar, we
expect to see upward pressure on interest rates. While we do not believe there
will be a dramatic rise in rates, any increase might significantly hinder
earnings growth for certain financial companies.
Our search for opportunities in the technology sector continues, though
valuations have become more lofty here. We may selectively add technology stocks
(we were underweighted in this sector as of the end of the period) if and when
market volatility results in what we consider to be compelling valuation
stories.
THE CREDIT SUISSE VALUE TEAM
Stanley A. Nabi
Scott T. Lewis
Robert E. Rescoe
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.
7
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP VALUE FUND(1) COMMON CLASS SHARES,
THE RUSSELL 2000(R) INDEX(2) AND THE RUSSELL 2000(R) VALUE INDEX(2)
FROM INCEPTION (8/01/00).
<Table>
<Caption>
CREDIT SUISSE SMALL CAP VALUE FUND(1) COMMON CLASS RUSSELL 2000(R) INDEX(2) RUSSELL 2000(R) VALUE INDEX(2)
8/1/2000 $ 10,000 $ 10,000 $ 10,000
8/31/2000 $ 10,511 $ 10,763 $ 10,447
9/30/2000 $ 10,482 $ 10,447 $ 10,388
10/31/2000 $ 10,562 $ 9,981 $ 10,351
11/30/2000 $ 10,308 $ 8,956 $ 10,140
12/31/2000 $ 11,546 $ 9,725 $ 11,230
1/31/2001 $ 11,661 $ 10,232 $ 11,540
2/28/2001 $ 11,403 $ 9,560 $ 11,524
3/31/2001 $ 11,298 $ 9,093 $ 11,339
4/30/2001 $ 11,953 $ 9,804 $ 11,864
5/31/2001 $ 12,300 $ 10,045 $ 12,169
6/30/2001 $ 12,581 $ 10,392 $ 12,658
7/31/2001 $ 12,393 $ 9,830 $ 12,375
8/31/2001 $ 12,316 $ 9,512 $ 12,331
9/30/2001 $ 11,172 $ 8,232 $ 10,970
10/31/2001 $ 11,595 $ 8,713 $ 11,256
11/30/2001 $ 12,118 $ 9,388 $ 12,066
12/31/2001 $ 12,842 $ 9,967 $ 12,805
1/31/2002 $ 12,980 $ 9,864 $ 12,974
2/28/2002 $ 13,345 $ 9,593 $ 13,054
3/31/2002 $ 14,137 $ 10,365 $ 14,031
4/30/2002 $ 14,451 $ 10,459 $ 14,525
5/31/2002 $ 13,935 $ 9,995 $ 14,044
6/30/2002 $ 13,420 $ 9,499 $ 13,734
7/31/2002 $ 12,050 $ 8,065 $ 11,693
8/31/2002 $ 12,395 $ 8,044 $ 11,642
9/30/2002 $ 11,427 $ 7,467 $ 10,810
10/31/2002 $ 11,666 $ 7,706 $ 10,973
11/30/2002 $ 12,081 $ 8,394 $ 11,848
12/31/2002 $ 11,850 $ 7,926 $ 11,342
1/31/2003 $ 11,404 $ 7,707 $ 11,022
2/28/2003 $ 11,253 $ 7,474 $ 10,652
3/31/2003 $ 11,170 $ 7,570 $ 10,766
4/30/2003 $ 11,939 $ 8,288 $ 11,789
5/31/2003 $ 12,557 $ 9,177 $ 12,993
6/30/2003 $ 12,625 $ 9,344 $ 13,212
7/31/2003 $ 12,948 $ 9,928 $ 13,871
8/31/2003 $ 13,407 $ 10,383 $ 14,398
9/30/2003 $ 13,044 $ 10,191 $ 14,233
10/31/2003 $ 13,737 $ 11,047 $ 15,393
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP VALUE FUND(1) CLASS A SHARES, THE RUSSELL 2000(R)
INDEX(2) AND THE RUSSELL 2000(R) VALUE INDEX(2) FOR TEN YEARS.
<Table>
<Caption>
CREDIT SUISSE SMALL CAP VALUE FUND(1) CLASS A
(WITH MAXIMUM SALES CHARGE) RUSSELL 2000(R) INDEX(2) RUSSELL 2000(R) VALUE INDEX(2)
10/31/1993 $ 9,425 $ 10,000 $ 10,000
11/30/1993 $ 9,310 $ 9,674 $ 9,746
12/31/1993 $ 9,710 $ 10,005 $ 10,032
1/31/1994 $ 10,012 $ 10,318 $ 10,390
2/28/1994 $ 10,170 $ 10,281 $ 10,359
3/31/1994 $ 9,754 $ 9,739 $ 9,896
4/30/1994 $ 9,804 $ 9,797 $ 9,993
5/31/1994 $ 9,728 $ 9,687 $ 9,979
6/30/1994 $ 9,615 $ 9,360 $ 9,720
7/31/1994 $ 9,817 $ 9,514 $ 9,899
8/31/1994 $ 10,075 $ 10,044 $ 10,289
9/30/1994 $ 10,000 $ 10,010 $ 10,179
10/31/1994 $ 9,867 $ 9,969 $ 9,992
11/30/1994 $ 9,438 $ 9,566 $ 9,589
12/31/1994 $ 9,643 $ 9,823 $ 9,877
1/31/1995 $ 9,563 $ 9,699 $ 9,829
2/28/1995 $ 9,953 $ 10,102 $ 10,193
3/31/1995 $ 10,111 $ 10,275 $ 10,243
4/30/1995 $ 10,355 $ 10,504 $ 10,547
5/31/1995 $ 10,481 $ 10,684 $ 10,773
6/30/1995 $ 10,672 $ 11,239 $ 11,141
7/31/1995 $ 11,088 $ 11,886 $ 11,548
8/31/1995 $ 11,187 $ 12,132 $ 11,891
9/30/1995 $ 11,359 $ 12,349 $ 12,069
10/31/1995 $ 10,963 $ 11,796 $ 11,587
11/30/1995 $ 11,441 $ 12,292 $ 12,047
12/31/1995 $ 11,588 $ 12,616 $ 12,420
1/31/1996 $ 11,405 $ 12,602 $ 12,503
2/29/1996 $ 11,724 $ 12,995 $ 12,699
3/31/1996 $ 12,042 $ 13,260 $ 12,965
4/30/1996 $ 12,184 $ 13,969 $ 13,319
5/31/1996 $ 12,530 $ 14,519 $ 13,656
6/30/1996 $ 12,279 $ 13,923 $ 13,495
7/31/1996 $ 11,391 $ 12,707 $ 12,777
8/31/1996 $ 12,001 $ 13,445 $ 13,332
9/30/1996 $ 12,435 $ 13,970 $ 13,696
10/31/1996 $ 12,476 $ 13,755 $ 13,855
11/30/1996 $ 12,909 $ 14,322 $ 14,600
12/31/1996 $ 13,278 $ 14,697 $ 15,074
1/31/1997 $ 13,356 $ 14,991 $ 15,306
2/28/1997 $ 13,412 $ 14,627 $ 15,451
3/31/1997 $ 13,129 $ 13,937 $ 15,037
4/30/1997 $ 13,164 $ 13,976 $ 15,258
5/31/1997 $ 14,375 $ 15,531 $ 16,472
6/30/1997 $ 15,034 $ 16,196 $ 17,306
7/31/1997 $ 15,898 $ 16,950 $ 18,032
8/31/1997 $ 16,188 $ 17,338 $ 18,319
9/30/1997 $ 17,052 $ 18,607 $ 19,537
10/31/1997 $ 16,528 $ 17,789 $ 19,006
11/30/1997 $ 16,709 $ 17,674 $ 19,214
12/31/1997 $ 16,750 $ 17,983 $ 19,865
1/31/1998 $ 16,615 $ 17,700 $ 19,506
2/28/1998 $ 17,786 $ 19,008 $ 20,685
3/31/1998 $ 18,395 $ 19,792 $ 21,524
4/30/1998 $ 18,312 $ 19,902 $ 21,630
5/31/1998 $ 17,554 $ 18,830 $ 20,865
6/30/1998 $ 17,005 $ 18,869 $ 20,747
7/31/1998 $ 15,781 $ 17,342 $ 19,122
8/31/1998 $ 13,392 $ 13,974 $ 16,127
9/30/1998 $ 13,918 $ 15,068 $ 17,038
10/31/1998 $ 14,677 $ 15,683 $ 17,543
11/30/1998 $ 15,243 $ 16,505 $ 18,018
12/31/1998 $ 15,977 $ 17,527 $ 18,583
1/31/1999 $ 14,944 $ 17,759 $ 18,162
2/28/1999 $ 14,053 $ 16,321 $ 16,922
3/31/1999 $ 14,129 $ 16,576 $ 16,782
4/30/1999 $ 15,396 $ 18,061 $ 18,314
5/31/1999 $ 15,675 $ 18,325 $ 18,877
6/30/1999 $ 16,377 $ 19,154 $ 19,561
7/31/1999 $ 16,392 $ 18,628 $ 19,096
8/31/1999 $ 15,788 $ 17,939 $ 18,399
9/30/1999 $ 15,419 $ 17,943 $ 18,031
10/31/1999 $ 15,479 $ 18,015 $ 17,670
11/30/1999 $ 15,945 $ 19,091 $ 17,761
12/31/1999 $ 16,212 $ 21,252 $ 18,307
1/31/2000 $ 15,259 $ 20,910 $ 17,828
2/29/2000 $ 15,911 $ 24,363 $ 18,918
3/31/2000 $ 17,457 $ 22,757 $ 19,007
4/30/2000 $ 17,106 $ 21,387 $ 19,119
5/31/2000 $ 17,073 $ 20,140 $ 18,828
6/30/2000 $ 17,566 $ 21,896 $ 19,378
7/31/2000 $ 17,842 $ 21,192 $ 20,023
8/31/2000 $ 18,744 $ 22,808 $ 20,919
9/30/2000 $ 18,694 $ 22,138 $ 20,800
10/31/2000 $ 18,836 $ 21,151 $ 20,726
11/30/2000 $ 18,383 $ 18,978 $ 20,304
12/31/2000 $ 20,594 $ 20,609 $ 22,486
1/31/2001 $ 20,790 $ 21,682 $ 23,106
2/28/2001 $ 20,330 $ 20,260 $ 23,075
3/31/2001 $ 20,153 $ 19,269 $ 22,704
4/30/2001 $ 21,319 $ 20,776 $ 23,756
5/31/2001 $ 21,927 $ 21,287 $ 24,366
6/30/2001 $ 22,426 $ 22,022 $ 25,346
7/31/2001 $ 22,093 $ 20,830 $ 24,778
8/31/2001 $ 21,956 $ 20,157 $ 24,691
9/30/2001 $ 19,908 $ 17,444 $ 21,965
10/31/2001 $ 20,663 $ 18,465 $ 22,539
11/30/2001 $ 21,594 $ 19,894 $ 24,160
12/31/2001 $ 22,888 $ 21,122 $ 25,639
1/31/2002 $ 23,134 $ 20,902 $ 25,979
2/28/2002 $ 23,793 $ 20,330 $ 26,138
3/31/2002 $ 25,190 $ 21,964 $ 28,095
4/30/2002 $ 25,760 $ 22,164 $ 29,084
5/31/2002 $ 24,832 $ 21,180 $ 28,122
6/30/2002 $ 23,927 $ 20,129 $ 27,500
7/31/2002 $ 21,491 $ 17,090 $ 23,414
8/31/2002 $ 22,105 $ 17,047 $ 23,311
9/30/2002 $ 20,384 $ 15,823 $ 21,646
10/31/2002 $ 20,809 $ 16,331 $ 21,971
11/30/2002 $ 21,547 $ 17,788 $ 23,724
12/31/2002 $ 21,135 $ 16,797 $ 22,711
1/31/2003 $ 20,330 $ 16,332 $ 22,071
2/28/2003 $ 20,062 $ 15,839 $ 21,329
3/31/2003 $ 19,928 $ 16,043 $ 21,557
4/30/2003 $ 21,294 $ 17,564 $ 23,605
5/31/2003 $ 22,391 $ 19,448 $ 26,015
6/30/2003 $ 22,526 $ 19,800 $ 26,455
7/31/2003 $ 23,087 $ 21,040 $ 27,775
8/31/2003 $ 23,916 $ 22,004 $ 28,831
9/30/2003 $ 23,257 $ 21,596 $ 28,499
10/31/2003 $ 24,514 $ 23,411 $ 30,822
</Table>
8
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP VALUE FUND(1) CLASS B SHARES, THE RUSSELL 2000(R)
INDEX(2),(4) AND THE RUSSELL 2000(R) VALUE INDEX(2),(4)
FROM INCEPTION (2/28/96).
<Table>
<Caption>
CREDIT SUISSE SMALL CAP VALUE FUND(1) CLASS B
(WITH MAXIMUM CONTINGENT DEFERRED SALES CHARGE) RUSSELL 2000(R) INDEX(2),(4) RUSSELL 2000(R) VALUE INDEX(2),(4)
2/28/1996 $ 10,000 $ 10,000 $ 10,000
3/31/1996 $ 10,195 $ 10,204 $ 10,210
4/30/1996 $ 10,310 $ 10,749 $ 10,488
5/31/1996 $ 10,603 $ 11,173 $ 10,754
6/30/1996 $ 10,385 $ 10,714 $ 10,627
7/31/1996 $ 9,627 $ 9,778 $ 10,062
8/31/1996 $ 10,138 $ 10,346 $ 10,499
9/30/1996 $ 10,499 $ 10,750 $ 10,785
10/31/1996 $ 10,528 $ 10,585 $ 10,910
11/30/1996 $ 10,884 $ 11,021 $ 11,497
12/31/1996 $ 11,196 $ 11,310 $ 11,871
1/31/1997 $ 11,250 $ 11,535 $ 12,053
2/28/1997 $ 11,298 $ 11,256 $ 12,168
3/31/1997 $ 11,052 $ 10,725 $ 11,841
4/30/1997 $ 11,070 $ 10,755 $ 12,015
5/31/1997 $ 12,083 $ 11,951 $ 12,972
6/30/1997 $ 12,634 $ 12,463 $ 13,628
7/31/1997 $ 13,347 $ 13,043 $ 14,200
8/31/1997 $ 13,580 $ 13,341 $ 14,426
9/30/1997 $ 14,299 $ 14,318 $ 15,385
10/31/1997 $ 13,850 $ 13,689 $ 14,967
11/30/1997 $ 13,991 $ 13,600 $ 15,131
12/31/1997 $ 14,016 $ 13,838 $ 15,644
1/31/1998 $ 13,896 $ 13,620 $ 15,361
2/28/1998 $ 14,872 $ 14,627 $ 16,289
3/31/1998 $ 15,367 $ 15,230 $ 16,950
4/30/1998 $ 15,291 $ 15,315 $ 17,034
5/31/1998 $ 14,644 $ 14,490 $ 16,431
6/30/1998 $ 14,187 $ 14,520 $ 16,338
7/31/1998 $ 13,154 $ 13,345 $ 15,058
8/31/1998 $ 11,157 $ 10,753 $ 12,700
9/30/1998 $ 11,588 $ 11,595 $ 13,417
10/31/1998 $ 12,191 $ 12,068 $ 13,815
11/30/1998 $ 12,656 $ 12,701 $ 14,189
12/31/1998 $ 13,259 $ 13,487 $ 14,634
1/31/1999 $ 12,396 $ 13,666 $ 14,302
2/28/1999 $ 11,647 $ 12,559 $ 13,326
3/31/1999 $ 11,704 $ 12,755 $ 13,216
4/30/1999 $ 12,745 $ 13,898 $ 14,422
5/31/1999 $ 12,973 $ 14,101 $ 14,866
6/30/1999 $ 13,544 $ 14,739 $ 15,404
7/31/1999 $ 13,544 $ 14,334 $ 15,038
8/31/1999 $ 13,043 $ 13,804 $ 14,489
9/30/1999 $ 12,726 $ 13,807 $ 14,199
10/31/1999 $ 12,770 $ 13,863 $ 13,915
11/30/1999 $ 13,143 $ 14,691 $ 13,987
12/31/1999 $ 13,353 $ 16,354 $ 14,417
1/31/2000 $ 12,566 $ 16,090 $ 14,040
2/29/2000 $ 13,093 $ 18,747 $ 14,898
3/31/2000 $ 14,358 $ 17,511 $ 14,968
4/30/2000 $ 14,063 $ 16,457 $ 15,056
5/31/2000 $ 14,028 $ 15,498 $ 14,827
6/30/2000 $ 14,422 $ 16,849 $ 15,260
7/31/2000 $ 14,640 $ 16,307 $ 15,768
8/31/2000 $ 15,370 $ 17,551 $ 16,473
9/30/2000 $ 15,321 $ 17,035 $ 16,380
10/31/2000 $ 15,427 $ 16,275 $ 16,322
11/30/2000 $ 15,045 $ 14,604 $ 15,989
12/31/2000 $ 16,838 $ 15,858 $ 17,707
1/31/2001 $ 16,995 $ 16,685 $ 18,196
2/28/2001 $ 16,615 $ 15,590 $ 18,171
3/31/2001 $ 16,450 $ 14,828 $ 17,880
4/30/2001 $ 17,400 $ 15,987 $ 18,707
5/31/2001 $ 17,888 $ 16,381 $ 19,188
6/30/2001 $ 18,284 $ 16,946 $ 19,960
7/31/2001 $ 17,995 $ 16,029 $ 19,512
8/31/2001 $ 17,871 $ 15,511 $ 19,444
9/30/2001 $ 16,202 $ 13,423 $ 17,298
10/31/2001 $ 16,797 $ 14,209 $ 17,749
11/30/2001 $ 17,549 $ 15,309 $ 19,026
12/31/2001 $ 18,591 $ 16,254 $ 20,190
1/31/2002 $ 18,771 $ 16,085 $ 20,458
2/28/2002 $ 19,291 $ 15,644 $ 20,583
3/31/2002 $ 20,417 $ 16,902 $ 22,125
4/30/2002 $ 20,862 $ 17,055 $ 22,904
5/31/2002 $ 20,105 $ 16,298 $ 22,146
6/30/2002 $ 19,357 $ 15,490 $ 21,656
7/31/2002 $ 17,371 $ 13,151 $ 18,438
8/31/2002 $ 17,853 $ 13,118 $ 18,357
9/30/2002 $ 16,453 $ 12,176 $ 17,046
10/31/2002 $ 16,784 $ 12,567 $ 17,302
11/30/2002 $ 17,371 $ 13,688 $ 18,683
12/31/2002 $ 17,026 $ 12,926 $ 17,885
1/31/2003 $ 16,373 $ 12,567 $ 17,381
2/28/2003 $ 16,145 $ 12,188 $ 16,797
3/31/2003 $ 16,021 $ 12,345 $ 16,976
4/30/2003 $ 17,109 $ 13,515 $ 18,589
5/31/2003 $ 17,990 $ 14,966 $ 20,487
6/30/2003 $ 18,073 $ 15,237 $ 20,833
7/31/2003 $ 18,519 $ 16,190 $ 21,873
8/31/2003 $ 19,171 $ 16,932 $ 22,704
9/30/2003 $ 18,633 $ 16,619 $ 22,443
10/31/2003 $ 19,617 $ 18,015 $ 24,272
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP VALUE FUND(1) CLASS C SHARES, THE RUSSELL 2000(R)
INDEX(2),(5) AND THE RUSSELL 2000(R) VALUE INDEX(2),(5)
FROM INCEPTION (2/28/00).
<Table>
<Caption>
CREDIT SUISSE SMALL CAP VALUE FUND(1) CLASS C
(WITH MAXIMUM CONTINGENT DEFERRED SALES CHARGE) RUSSELL 2000(R) INDEX(2),(5) RUSSELL 2000(R) VALUE INDEX(2),(5)
2/28/2000 $ 10,000 $ 10,000 $ 10,000
3/31/2000 $ 11,256 $ 9,341 $ 10,047
4/30/2000 $ 11,019 $ 8,778 $ 10,106
5/31/2000 $ 10,992 $ 8,267 $ 9,952
6/30/2000 $ 11,300 $ 8,987 $ 10,243
7/31/2000 $ 11,471 $ 8,698 $ 10,584
8/31/2000 $ 12,044 $ 9,362 $ 11,057
9/30/2000 $ 12,006 $ 9,087 $ 10,995
10/31/2000 $ 12,088 $ 8,681 $ 10,956
11/30/2000 $ 11,788 $ 7,790 $ 10,733
12/31/2000 $ 13,200 $ 8,459 $ 11,886
1/31/2001 $ 13,323 $ 8,900 $ 12,214
2/28/2001 $ 13,018 $ 8,316 $ 12,197
3/31/2001 $ 12,895 $ 7,909 $ 12,001
4/30/2001 $ 13,635 $ 8,528 $ 12,557
5/31/2001 $ 14,018 $ 8,738 $ 12,880
6/30/2001 $ 14,329 $ 9,039 $ 13,398
7/31/2001 $ 14,102 $ 8,550 $ 13,098
8/31/2001 $ 14,005 $ 8,274 $ 13,052
9/30/2001 $ 12,693 $ 7,160 $ 11,611
10/31/2001 $ 13,167 $ 7,579 $ 11,914
11/30/2001 $ 13,752 $ 8,166 $ 12,771
12/31/2001 $ 14,571 $ 8,670 $ 13,553
1/31/2002 $ 14,712 $ 8,580 $ 13,732
2/28/2002 $ 15,121 $ 8,345 $ 13,816
3/31/2002 $ 16,006 $ 9,015 $ 14,851
4/30/2002 $ 16,356 $ 9,097 $ 15,374
5/31/2002 $ 15,761 $ 8,694 $ 14,865
6/30/2002 $ 15,173 $ 8,262 $ 14,536
7/31/2002 $ 13,619 $ 7,015 $ 12,376
8/31/2002 $ 13,998 $ 6,997 $ 12,322
9/30/2002 $ 12,897 $ 6,495 $ 11,442
10/31/2002 $ 13,158 $ 6,703 $ 11,614
11/30/2002 $ 13,611 $ 7,301 $ 12,540
12/31/2002 $ 13,348 $ 6,895 $ 12,005
1/31/2003 $ 12,835 $ 6,704 $ 11,666
2/28/2003 $ 12,655 $ 6,501 $ 11,274
3/31/2003 $ 12,558 $ 6,585 $ 11,395
4/30/2003 $ 13,413 $ 7,209 $ 12,478
5/31/2003 $ 14,098 $ 7,983 $ 13,752
6/30/2003 $ 14,171 $ 8,127 $ 13,984
7/31/2003 $ 14,513 $ 8,636 $ 14,682
8/31/2003 $ 15,027 $ 9,032 $ 15,240
9/30/2003 $ 14,603 $ 8,864 $ 15,064
10/31/2003 $ 15,377 $ 9,609 $ 16,292
</Table>
9
<Page>
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
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 14.14% -- -- 8.75%
Class A Without Sales Charge(6) 14.09% 10.81% 9.68% 12.83%
Class A With Maximum
Sales Charge(6) 7.55% 9.51% 9.04% 12.65%
Class B Without CDSC 13.25% 9.96% -- 8.55%
Class B With CDSC 9.25% 9.96% -- 8.55%
Class C Without CDSC 13.23% -- -- 11.13%
Class C With CDSC 12.23% -- -- 11.13%
</Table>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 17.75% -- -- 10.26%
Class A Without Sales Charge(6) 17.80% 10.80% 10.03% 12.96%
Class A With Maximum
Sales Charge(6) 11.01% 9.50% 9.38% 12.78%
Class B Without CDSC 16.88% 9.98% -- 9.18%
Class B With CDSC 12.88% 9.98% -- 9.18%
Class C Without CDSC 16.87% -- -- 12.43%
Class C With CDSC 15.87% -- -- 12.43%
</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) Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, which represent approximately 8% of
the total market capitalization of the Russell 3000(R) Index. It is an
unmanaged index of common stocks which includes reinvestment of dividends
and is compiled by Frank Russell Company. The Russell 3000(R) Index is
composed of 3,000 of the largest U.S. companies by market capitalization.
The returns for the Russell 2000(R) Index do not include any sales charges,
fees or other expenses. The Russell 2000(R) Value Index measures the
performance of those Russell 2000(R) companies with lower price-to-book
ratios and lower forecasted growth values. 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 11.01%. Total return for
Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was 12.88%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 15.87%.
(4) Performance for the benchmark is not available for February 28, 1996 (date
of inception). For that reason, performance is shown from March 1, 1996.
(5) Performance for the benchmark is not available for February 28, 2000 (date
of inception). For that reason, performance is shown from March 1, 2000.
(6) Inception Date: 2/8/1967.
10
<Page>
CREDIT SUISSE LARGE CAP VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
-------------- --------------
COMMON STOCKS (98.3%)
AEROSPACE & DEFENSE (6.0%)
Alliant Techsystems, Inc.* 68,000 $ 3,519,680
General Dynamics Corp. 49,700 4,159,890
United Technologies Corp. 164,800 13,956,912
--------------
21,636,482
--------------
AUTO COMPONENTS (2.7%)
Johnson Controls, Inc. 46,000 4,946,380
Lear Corp.* 84,800 4,926,032
--------------
9,872,412
--------------
BANKS (10.8%)
Bank of America Corp. 113,737 8,613,303
Charter One Financial, Inc. 118,630 3,791,415
Mellon Financial Corp. 173,000 5,167,510
Wachovia Corp. 127,900 5,866,773
Washington Mutual, Inc. 132,600 5,801,250
Wells Fargo & Co. 178,200 10,036,224
--------------
39,276,475
--------------
BEVERAGES (1.0%)
Anheuser-Busch Companies, Inc. 70,900 3,492,534
--------------
BUILDING PRODUCTS (2.5%)
American Standard Companies, Inc.* 94,400 9,034,080
--------------
CHEMICALS (2.1%)
International Flavors & Fragrances, Inc. 113,000 3,740,300
PPG Industries, Inc. 69,500 4,006,675
--------------
7,746,975
--------------
COMMERCIAL SERVICES & SUPPLIES (3.3%)
Avery Dennison Corp. 97,400 5,121,292
Cendant Corp.* 338,600 6,917,598
--------------
12,038,890
--------------
COMPUTERS & PERIPHERALS (3.2%)
Hewlett-Packard Co. 329,920 7,360,515
Seagate Technology 183,200 4,209,936
--------------
11,570,451
--------------
DIVERSIFIED FINANCIALS (9.2%)
Citigroup, Inc. 348,833 16,534,684
Freddie Mac 132,300 7,425,999
Lehman Brothers Holdings, Inc. 74,100 5,335,200
Morgan Stanley 73,100 4,010,997
--------------
33,306,880
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES (3.1%)
ALLTEL Corp. 46,000 2,174,420
BellSouth Corp. 158,700 4,175,397
Verizon Communications, Inc. 140,700 4,727,520
--------------
11,077,337
--------------
</Table>
See Accompanying Notes to Financial Statements.
11
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
-------------- --------------
COMMON STOCKS
ELECTRIC UTILITIES (1.0%)
Progress Energy, Inc. 88,700 $ 3,822,970
--------------
ELECTRICAL EQUIPMENT (1.8%)
Emerson Electric Co. 117,700 6,679,475
--------------
FOOD PRODUCTS (2.8%)
Dean Foods Co.* 120,700 3,651,175
General Mills, Inc. 148,300 6,651,255
--------------
10,302,430
--------------
HEALTHCARE PROVIDERS & SERVICES (2.4%)
Aetna, Inc. 94,400 5,419,504
Cardinal Health, Inc. 56,500 3,352,710
--------------
8,772,214
--------------
HOUSEHOLD DURABLES (2.0%)
Newell Rubbermaid, Inc. 318,100 7,252,680
--------------
HOUSEHOLD PRODUCTS (2.0%)
Kimberly-Clark Corp. 134,800 7,118,788
--------------
INDUSTRIAL CONGLOMERATES (3.2%)
Textron, Inc. 91,600 4,551,604
Tyco International, Ltd. 345,800 7,220,304
--------------
11,771,908
--------------
INSURANCE (5.1%)
Hartford Financial Services Group, Inc. 199,800 10,969,020
St. Paul Companies, Inc. 198,100 7,553,553
--------------
18,522,573
--------------
IT CONSULTING & SERVICES (1.5%)
Unisys Corp.* 350,200 5,379,072
--------------
MACHINERY (3.5%)
Eaton Corp. 46,000 4,611,040
Harsco Corp. 75,000 2,873,250
ITT Industries, Inc. 77,900 5,296,421
--------------
12,780,711
--------------
MEDIA (2.4%)
Gannett Company, Inc. 46,400 3,902,704
Tribune Co. 52,400 2,570,220
Viacom, Inc. Class B 54,300 2,164,941
--------------
8,637,865
--------------
MULTI-UTILITIES (1.5%)
Calpine Corp.* 1,171,000 5,398,310
--------------
OIL & GAS (8.3%)
Apache Corp. 49,600 3,458,112
ConocoPhillips 168,050 9,604,057
Devon Energy Corp. 94,400 4,578,400
</Table>
See Accompanying Notes to Financial Statements.
12
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
-------------- --------------
COMMON STOCKS
OIL & GAS
Exxon Mobil Corp. 262,700 $ 9,609,566
Noble Energy, Inc. 73,100 2,903,532
--------------
30,153,667
--------------
PAPER & FOREST PRODUCTS (1.0%)
MeadWestvaco Corp. 138,200 3,582,144
--------------
PHARMACEUTICALS (8.4%)
Abbott Laboratories 166,100 7,079,182
Bristol-Myers Squibb Co. 132,400 3,358,988
Johnson & Johnson 159,900 8,047,767
Merck & Company, Inc. 40,600 1,796,550
Pfizer, Inc. 224,616 7,097,866
Wyeth 66,100 2,917,654
--------------
30,298,007
--------------
ROAD & RAIL (2.5%)
Burlington Northern Santa Fe Corp. 314,500 9,101,630
--------------
SOFTWARE (2.1%)
Microsoft Corp. 289,600 7,573,040
--------------
TOBACCO (2.9%)
Altria Group, Inc. 131,800 6,128,700
R.J. Reynolds Tobacco Holdings, Inc. 88,500 4,250,655
--------------
10,379,355
--------------
TOTAL COMMON STOCKS (Cost $297,506,970) 356,579,355
--------------
<Caption>
PAR
(000)
--------------
SHORT-TERM INVESTMENT (1.6%)
State Street Bank and Trust Co.
Euro Time Deposit, 0.750%, 11/03/03
(Cost $5,722,000) $ 5,722 5,722,000
--------------
TOTAL INVESTMENTS AT VALUE (99.9%)
(Cost $303,228,970) 362,301,355
OTHER ASSETS IN EXCESS OF LIABILITIES (0.1%) 356,711
--------------
NET ASSETS (100.0%) $ 362,658,066
==============
</Table>
* Non-income producing security.
See Accompanying Notes to Financial Statements.
13
<Page>
CREDIT SUISSE SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
-------------- --------------
COMMON STOCKS (91.4%)
AEROSPACE & DEFENSE (0.7%)
DRS Technologies, Inc.* 80,000 $ 1,924,800
--------------
AUTO COMPONENTS (0.9%)
Visteon Corp. 376,000 2,428,960
--------------
BANKS (16.5%)
Alabama National Bancorp. 77,100 4,059,315
Century Bancorp, Inc. Class A 36,500 1,269,470
Cullen/Frost Bankers, Inc. 79,700 3,089,172
First Financial Holdings, Inc. 141,100 4,254,165
FirstFed Financial Corp.* 134,000 6,030,000
FirstMerit Corp. 170,000 4,382,600
Hudson United Bancorp. 92,500 3,356,825
Prosperity Bancshares, Inc. 130,600 3,016,860
Sky Financial Group, Inc. 119,000 2,897,650
Susquehanna Bancshares, Inc. 158,900 3,980,445
Webster Financial Corp. 126,300 5,645,610
WSFS Financial Corp. 47,000 2,004,550
--------------
43,986,662
--------------
BUILDING PRODUCTS (1.0%)
Griffon Corp.* 141,000 2,728,350
--------------
CHEMICALS (3.5%)
Cambrex Corp. 86,400 2,042,496
H.B. Fuller Co. 180,000 4,460,400
Polyone Corp.* 609,800 2,945,334
--------------
9,448,230
--------------
COMMERCIAL SERVICES & SUPPLIES (3.4%)
Banta Corp. 130,000 4,973,800
Watson Wyatt & Company Holdings* 175,800 4,227,990
--------------
9,201,790
--------------
COMPUTERS & PERIPHERALS (1.0%)
Imation Corp. 78,200 2,662,710
--------------
CONSTRUCTION & ENGINEERING (1.1%)
EMCOR Group, Inc.* 75,000 2,826,750
--------------
CONTAINERS & PACKAGING (2.0%)
AptarGroup, Inc. 150,000 5,370,000
--------------
ELECTRIC UTILITIES (1.0%)
OGE Energy Corp. 116,000 2,645,960
--------------
ELECTRICAL EQUIPMENT (4.7%)
AMETEK, Inc. 64,400 3,030,020
Brady Corp. 120,000 4,236,000
C&D Technologies, Inc. 120,000 2,391,600
Rayovac Corp.* 177,200 2,913,168
--------------
12,570,788
--------------
</Table>
See Accompanying Notes to Financial Statements.
14
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
-------------- --------------
COMMON STOCKS
ELECTRONIC EQUIPMENT & INSTRUMENTS (8.0%)
Electro Scientific Industries, Inc.* 156,200 $ 3,836,272
OSI Systems, Inc.* 109,000 2,004,510
Rogers Corp.* 150,000 5,997,000
Roper Industries, Inc. 38,600 1,907,612
Varian, Inc.* 144,000 5,156,640
Woodhead Industries, Inc. 162,300 2,564,340
--------------
21,466,374
--------------
ENERGY EQUIPMENT & SERVICES (3.4%)
Oceaneering International, Inc.* 197,000 4,542,820
Varco International, Inc.* 261,767 4,604,482
--------------
9,147,302
--------------
FOOD & DRUG RETAILING (1.5%)
Ruddick Corp. 250,000 3,990,000
--------------
FOOD PRODUCTS (3.0%)
Del Monte Foods Co.* 398,800 3,792,588
Sensient Technologies Corp. 220,800 4,239,360
--------------
8,031,948
--------------
GAS UTILITIES (2.5%)
National Fuel Gas Co. 100,400 2,243,940
WGL Holdings, Inc. 160,000 4,424,000
--------------
6,667,940
--------------
HEALTHCARE EQUIPMENT & SUPPLIES (6.8%)
Arrow International, Inc. 200,000 5,276,000
Cooper Companies, Inc. 132,600 5,761,470
Invacare Corp. 110,000 4,512,200
STERIS Corp.* 121,200 2,523,384
--------------
18,073,054
--------------
HEALTHCARE PROVIDERS & SERVICES (3.1%)
Beverly Enterprises, Inc.* 443,400 2,691,438
LifePoint Hospitals, Inc.* 96,500 2,481,015
Service Corp. International* 643,900 3,122,915
--------------
8,295,368
--------------
HOTELS, RESTAURANTS & LEISURE (1.7%)
Marcus Corp. 182,575 2,729,496
O'Charley's, Inc.* 111,000 1,870,350
--------------
4,599,846
--------------
HOUSEHOLD DURABLES (1.4%)
Ethan Allen Interiors, Inc. 100,000 3,680,000
--------------
INDUSTRIAL CONGLOMERATES (4.1%)
Carlisle Companies, Inc. 80,000 4,588,000
Lydall, Inc.* 199,500 2,372,055
Teleflex, Inc. 85,000 3,910,850
--------------
10,870,905
--------------
</Table>
See Accompanying Notes to Financial Statements.
15
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
-------------- --------------
COMMON STOCKS
INSURANCE (2.8%)
HCC Insurance Holdings, Inc. 149,400 $ 4,353,516
Horace Mann Educators Corp. 28,000 371,000
Selective Insurance Group, Inc. 90,700 2,784,490
--------------
7,509,006
--------------
IT CONSULTING & SERVICES (1.1%)
Keane, Inc.* 230,200 3,024,828
--------------
LEISURE EQUIPMENT & PRODUCTS (0.3%)
K2, Inc.* 50,000 829,500
--------------
MACHINERY (5.4%)
AGCO Corp.* 91,900 1,654,200
ESCO Technologies, Inc.* 101,100 4,395,828
Flowserve Corp.* 167,600 3,429,096
Robbins & Myers, Inc. 70,500 1,487,550
The Manitowoc Company, Inc. 157,000 3,406,900
--------------
14,373,574
--------------
MEDIA (3.0%)
Harte-Hanks, Inc. 225,000 4,470,750
Scholastic Corp.* 113,300 3,504,369
--------------
7,975,119
--------------
METALS & MINING (0.5%)
Quanex Corp. 33,200 1,329,660
--------------
OIL & GAS (3.6%)
Denbury Resources, Inc.* 217,100 2,739,802
Evergreen Resources, Inc.* 98,000 2,687,160
Houston Explorational Co.* 117,500 4,112,500
--------------
9,539,462
--------------
PHARMACEUTICALS (0.2%)
K-V Pharmaceutical Co. Class A* 19,800 475,200
--------------
ROAD & RAIL (1.6%)
Werner Enterprises, Inc. 231,250 4,171,750
--------------
SOFTWARE (0.9%)
Progress Software Corp.* 114,500 2,527,015
--------------
TEXTILES & APPAREL (0.2%)
The Warnaco Group, Inc.* 27,400 478,130
--------------
TRADING COMPANIES & DISTRIBUTORS (0.5%)
MSC Industrial Direct Company, Inc. Class A 54,400 1,286,560
--------------
TOTAL COMMON STOCKS (Cost $182,312,474) 244,137,541
--------------
</Table>
See Accompanying Notes to Financial Statements.
16
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
-------------- --------------
WARRANTS (0.0%)
BANKS (0.0%)
Dime Bancorp. Expires 11/22/05*
(Cost $5,015) 22,100 $ 3,757
--------------
<Caption>
PAR
(000)
--------------
SHORT-TERM INVESTMENT (7.7%)
State Street Bank and Trust Co.
Euro Time Deposit, 0.750%, 11/03/03
(Cost $20,463,000) $ 20,463 20,463,000
--------------
TOTAL INVESTMENTS AT VALUE (99.1%)
(Cost $202,780,489) 264,604,298
OTHER ASSETS IN EXCESS OF LIABILITIES (0.9%) 2,488,530
--------------
NET ASSETS (100.0%) $ 267,092,828
==============
</Table>
* Non-income producing security.
See Accompanying Notes to Financial Statements.
17
<Page>
CREDIT SUISSE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 2003
<Table>
<Caption>
LARGE CAP SMALL CAP
VALUE FUND VALUE FUND
------------- -------------
ASSETS
Investments at value (Cost $303,228,970, and
$202,780,489, respectively) (Note 1) $ 362,301,355 $ 264,604,298
Cash 834 811
Receivable for investments sold 7,585,174 4,836,473
Dividend and interest receivable 649,692 185,039
Receivable for fund shares sold 104,618 318,452
Prepaid expenses 35,975 25,260
------------- -------------
Total Assets 370,677,648 269,970,333
------------- -------------
LIABILITIES
Advisory fee payable (Note 2) 194,780 197,215
Administrative services fee payable (Note 2) 66,513 48,809
Shareholder servicing/Distribution fee payable (Note 2) 101,715 75,457
Payable for investments purchased 7,193,656 2,050,166
Payable for fund shares redeemed 328,326 379,814
Trustees' fee payable 1,993 1,993
Other accrued expenses payable 132,599 124,051
------------- -------------
Total Liabilities 8,019,582 2,877,505
------------- -------------
NET ASSETS
Capital stock, $0.001 par value (Note 5) 19,437 13,395
Paid-in capital (Note 5) 296,095,477 191,973,280
Undistributed net investment income 197,878 --
Accumulated net realized gain on investments 7,272,889 13,282,344
Net unrealized appreciation from investments 59,072,385 61,823,809
------------- -------------
Net Assets $ 362,658,066 $ 267,092,828
============= =============
COMMON SHARES
Net assets $ 736,574 $ 47,968,590
Shares outstanding 39,576 2,395,581
------------- -------------
Net asset value, offering price, and redemption price per share $ 18.61 $ 20.02
============= =============
ADVISOR SHARES
Net assets $ 22,336,363 N/A
Shares outstanding 1,193,602 N/A
------------- -------------
Net asset value, offering price, and redemption price per share $ 18.71 N/A
============= =============
A SHARES
Net assets $ 306,409,693 $ 188,318,107
Shares outstanding 16,406,261 9,370,888
------------- -------------
Net asset value and redemption price per share $ 18.68 $ 20.10
============= =============
Maximum offering price per share (net asset value/(1-5.75%)) $ 19.82 $ 21.33
============= =============
B SHARES
Net assets $ 29,696,101 $ 22,668,531
Shares outstanding 1,608,607 1,197,413
------------- -------------
Net asset value and offering price per share $ 18.46 $ 18.93
============= =============
C SHARES
Net assets $ 3,479,335 $ 8,137,600
Shares outstanding 189,329 431,197
------------- -------------
Net asset value and offering price per share $ 18.38 $ 18.87
============= =============
</Table>
See Accompanying Notes to Financial Statements.
18
<Page>
STATEMENTS OF OPERATIONS
For the Year Ended October 31, 2003
<Table>
<Caption>
LARGE CAP SMALL CAP
VALUE FUND VALUE FUND
------------- -------------
INVESTMENT INCOME (Note 1)
Dividends $ 4,538,292 $ 2,963,973
Interest 87,745 209,407
------------- -------------
Total investment income 4,626,037 3,173,380
------------- -------------
EXPENSES
Investment advisory fees (Note 2) 1,327,469 1,823,244
Administrative services fees (Note 2) 364,181 372,343
Shareholder servicing/Distribution fees (Note 2) 825,294 777,333
Transfer agent fees (Note 2) 357,924 506,945
Legal fees 50,398 40,711
Registration fees 49,734 56,728
Printing fees (Note 2) 33,124 47,736
Audit fees 27,175 27,918
Custodian fees 20,277 20,749
Insurance expense 15,542 16,016
Interest expense 10,444 8,691
Trustees' fees 7,157 6,657
Miscellaneous expense 4,520 7,759
------------- -------------
Total expenses 3,093,239 3,712,830
Less: fees waived (Note 2) -- (88,077)
------------- -------------
Net expenses 3,093,239 3,624,753
------------- -------------
Net investment income (loss) 1,532,798 (451,373)
------------- -------------
NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS
Net realized gain from investments 16,763,424 14,641,903
Net change in unrealized appreciation (depreciation) from investments 11,390,112 24,977,630
------------- -------------
Net realized and unrealized gain from investments 28,153,536 39,619,533
------------- -------------
Net increase in net assets resulting from operations $ 29,686,334 $ 39,168,160
============= =============
</Table>
See Accompanying Notes to Financial Statements.
19
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
LARGE CAP VALUE FUND SMALL CAP VALUE FUND
-------------------------------- --------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002
-------------- -------------- -------------- --------------
FROM OPERATIONS
Net investment income (loss) $ 1,532,798 $ 1,449,341 $ (451,373) $ 118,128
Net realized gain from investments 16,763,424 3,173,446 14,641,903 19,290,175
Net change in unrealized appreciation
(depreciation) from investments 11,390,112 (13,538,321) 24,977,630 (14,804,671)
-------------- -------------- -------------- --------------
Net increase (decrease) in net
assets resulting from operations 29,686,334 (8,915,534) 39,168,160 4,603,632
-------------- -------------- -------------- --------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Common Class shares (17,331) (28,797) (39,448) (76,133)
Advisor shares (5,242) -- -- --
Class A shares (1,423,315) (1,322,171) (121,771) (268,011)
Class B shares (44,542) (111,266) -- --
Class C shares (3,968) (7,918) -- --
Class D shares -- (82,437) -- --
Distributions from net realized gains
Common Class shares (56,140) (222,334) (4,176,400) (4,111,025)
Class A shares (2,083,702) (11,038,633) (12,892,153) (26,202,108)
Class B shares (529,887) (2,788,798) (1,785,919) (2,444,105)
Class C shares (42,341) (165,188) (400,677) (221,991)
Class D shares -- (3,299,124) -- --
-------------- -------------- -------------- --------------
Net decrease in net assets resulting
from dividends and distributions (4,206,468) (19,066,666) (19,416,368) (33,323,373)
-------------- -------------- -------------- --------------
FROM CAPITAL SHARE
TRANSACTIONS (Note 5)
Proceeds from sale of shares 34,320,155 22,065,483 76,651,039 90,362,161
Exchange value of shares due to merger 201,050,472 14,973,364 -- --
Reinvestment of dividends
and distributions 3,640,201 16,059,536 18,257,578 31,664,945
Net asset value of shares redeemed (50,042,947) (90,669,775) (68,252,985) (121,800,767)
-------------- -------------- -------------- --------------
Net increase (decrease) in
net assets from capital
share transactions 188,967,881 (37,571,392) 26,655,632 226,339
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets 214,447,747 (65,553,592) 46,407,424 (28,493,402)
NET ASSETS
Beginning of year 148,210,319 213,763,911 220,685,404 249,178,806
-------------- -------------- -------------- --------------
End of year $ 362,658,066 $ 148,210,319 $ 267,092,828 $ 220,685,404
============== ============== ============== ==============
Undistributed Net Investment Income $ 197,878 $ 159,478 $ -- $ 128,931
============== ============== ============== ==============
</Table>
See Accompanying Notes to Financial Statements.
20
<Page>
CREDIT SUISSE LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2003 2002 2001 2000(1)
--------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 16.82 $ 19.95 $ 24.63 $ 22.44
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income(2) 0.14 0.17 0.19 0.02
Net gain (loss) on investments
(both realized and unrealized) 2.10 (1.45) (2.52) 2.21
--------- --------- --------- ---------
Total from investment operations 2.24 (1.28) (2.33) 2.23
--------- --------- --------- ---------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.14) (0.19) (0.22) (0.04)
Distributions from net realized gains (0.31) (1.66) (2.13) --
--------- --------- --------- ---------
Total dividends and distributions (0.45) (1.85) (2.35) (0.04)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 18.61 $ 16.82 $ 19.95 $ 24.63
========= ========= ========= =========
Total return(3) 13.63% (7.63)% (10.51)% 9.96%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 737 $ 3,061 $ 3,421 $ 96
Ratio of expenses to average net assets 1.24% 1.03% 1.03% 0.43%(4)
Ratio of net investment income
to average net assets 0.82% 0.92% 0.86% 0.07%(4)
Decrease reflected in above operating
expense ratios due to waivers -- 0.29% 0.18% --
Portfolio turnover rate 53% 28% 38% 55%
</Table>
(1) For the period August 1, 2000 (inception date) through October 31, 2000.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(4) Annualized.
See Accompanying Notes to Financial Statements.
21
<Page>
(For a Advisor Class Share of the Fund Outstanding Throughout the Period)
<Table>
<Caption>
FOR THE
PERIOD ENDED
OCTOBER 31,
2003(1)
------------
PER SHARE DATA
Net asset value, beginning of period $ 17.84
------------
INVESTMENT OPERATIONS
Net investment income(2) 0.04
Net gain on investments
(both realized and unrealized) 0.83
------------
Total from investment operations 0.87
------------
LESS DIVIDENDS
Dividends from net investment income (0.00)(3)
------------
NET ASSET VALUE, END OF PERIOD $ 18.71
============
Total return(4) 4.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 22,336
Ratio of expenses to average net assets 1.49%(5)
Ratio of net investment income
to average net assets 0.51%(5)
Portfolio turnover rate 53%
</Table>
(1) For the period June 6, 2003 (inception date) through October 31, 2003.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This amount represents less than $(0.01) per share.
(4) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(5) Annualized.
See Accompanying Notes to Financial Statements.
22
<Page>
(For a Class A 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 $ 16.83 $ 19.96 $ 24.62 $ 23.49 $ 22.60
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment income(1) 0.14 0.17 0.21 0.16 0.12
Net gain (loss) on investments
(both realized and unrealized) 2.15 (1.45) (2.55) 1.78 2.87
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.29 (1.28) (2.34) 1.94 2.99
---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.13) (0.19) (0.19) (0.12) (0.09)
Distributions from net realized gains (0.31) (1.66) (2.13) (0.69) (2.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (0.44) (1.85) (2.32) (0.81) (2.10)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 18.68 $ 16.83 $ 19.96 $ 24.62 $ 23.49
========== ========== ========== ========== ==========
Total return(2) 13.97% (7.63)% (10.48)% 8.44% 14.37%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 306,410 $ 114,733 $ 133,665 $ 162,871 $ 174,213
Ratio of expenses to average net assets 1.24% 1.03% 1.04% 1.08% 1.11%
Ratio of net investment income
to average net assets 0.78% 0.90% 0.94% 0.71% 0.52%
Decrease reflected in above operating
expense ratios due to waivers -- 0.28% 0.10% -- --
Portfolio turnover rate 53% 28% 38% 55% 25%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the years shown, total returns
would have been lower.
See Accompanying Notes to Financial Statements.
23
<Page>
(For a Class B 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 $ 16.66 $ 19.78 $ 24.44 $ 23.37 $ 22.55
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment income (loss)(1) 0.01 0.03 0.04 -- (0.04)
Net gain (loss) on investments
(both realized and unrealized) 2.13 (1.43) (2.52) 1.76 2.88
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.14 (1.40) (2.48) 1.76 2.84
---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.03) (0.06) (0.05) -- (0.01)
Distributions from net realized gains (0.31) (1.66) (2.13) (0.69) (2.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (0.34) (1.72) (2.18) (0.69) (2.02)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 18.46 $ 16.66 $ 19.78 $ 24.44 $ 23.37
========== ========== ========== ========== ==========
Total return(2) 13.07% (8.29)% (11.00)% 7.66% 13.66%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 29,696 $ 28,312 $ 33,087 $ 41,194 $ 41,144
Ratio of expenses to average net assets 1.99% 1.78% 1.79% 1.80% 1.81%
Ratio of net investment income (loss)
to average net assets 0.06% 0.15% 0.19% (0.01)% (0.18)%
Decrease reflected in above operating
expense ratios due to waivers -- 0.27% 0.10% -- --
Portfolio turnover rate 53% 28% 38% 55% 25%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the years shown, total returns
would have been lower.
See Accompanying Notes to Financial Statements.
24
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2003 2002 2001 2000(1)
--------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 16.58 $ 19.71 $ 24.39 $ 20.87
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income (loss)(2) 0.01 0.03 0.03 (0.01)
Net gain (loss) on investments
(both realized and unrealized) 2.13 (1.43) (2.51) 3.56
--------- --------- --------- ---------
Total from investment operations 2.14 (1.40) (2.48) 3.55
--------- --------- --------- ---------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.03) (0.07) (0.07) (0.03)
Distributions from net realized gains (0.31) (1.66) (2.13) --
--------- --------- --------- ---------
Total dividends and distributions (0.34) (1.73) (2.20) (0.03)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 18.38 $ 16.58 $ 19.71 $ 24.39
========= ========= ========= =========
Total return(3) 13.14% (8.35)% (11.07)% 17.02%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 3,479 $ 2,104 $ 1,916 $ 496
Ratio of expenses to average net assets 1.99% 1.78% 1.79% 1.28%(4)
Ratio of net investment income (loss)
to average net assets 0.06% 0.16% 0.13% (0.03)%(4)
Decrease reflected in above operating
expense ratios due to waivers -- 0.28% 0.10% --
Portfolio turnover rate 53% 28% 38% 55%
</Table>
(1) For the period February 28, 2000 (inception date) through October 31, 2000.
(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) Annualized.
See Accompanying Notes to Financial Statements.
25
<Page>
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------------
2003 2002 2001 2000(1)
--------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 18.56 $ 21.07 $ 22.62 $ 21.35
--------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income (loss)(2) (0.02) 0.02 0.04 0.02
Net gain on investments
(both realized and unrealized) 3.08 0.31 1.72 1.25
--------- --------- --------- ---------
Total from investment operations 3.06 0.33 1.76 1.27
--------- --------- --------- ---------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.01) (0.05) (0.09) --
Distributions from net realized gains (1.59) (2.79) (3.22) --
--------- --------- --------- ---------
Total dividends and distributions (1.60) (2.84) (3.31) --
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 20.02 $ 18.56 $ 21.07 $ 22.62
========= ========= ========= =========
Total return(3) 17.75% 0.61% 9.79% 5.95%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 47,969 $ 45,075 $ 30,667 $ 105
Ratio of expenses to average net assets 1.48% 1.32% 1.33% 0.34%(4)
Ratio of net investment income (loss)
to average net assets (0.10)% 0.12% 0.18% 0.09%(4)
Decrease reflected in above operating
expense ratios due to waivers 0.04% 0.14% 0.02% --
Portfolio turnover rate 30% 18% 54% 42%
</Table>
(1) For the period August 1, 2000 (inception date) through October 31, 2000.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(4) Annualized.
See Accompanying Notes to Financial Statements.
26
<Page>
(For a Class A 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 $ 18.62 $ 21.09 $ 22.54 $ 20.52 $ 19.54
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.02) 0.02 0.05 0.06 0.06
Net gain on investments
(both realized and unrealized) 3.10 0.33 1.76 4.05 1.01
---------- ---------- ---------- ---------- ----------
Total from investment operations 3.08 0.35 1.81 4.11 1.07
---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.01) (0.03) (0.04) (0.04) (0.07)
Distributions from net realized gains (1.59) (2.79) (3.22) (2.05) (0.02)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (1.60) (2.82) (3.26) (2.09) (0.09)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 20.10 $ 18.62 $ 21.09 $ 22.54 $ 20.52
========== ========== ========== ========== ==========
Total return(2) 17.80% 0.71% 9.70% 21.69% 5.47%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 188,318 $ 151,340 $ 199,213 $ 188,501 $ 188,192
Ratio of expenses to average net assets 1.48% 1.32% 1.33% 1.39% 1.37%
Ratio of net investment income (loss)
to average net assets (0.11)% 0.11% 0.25% 0.28% 0.33%
Decrease reflected in above operating
expense ratios due to waivers 0.04% 0.12% 0.02% -- --
Portfolio turnover rate 30% 18% 54% 42% 30%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the years shown, total returns
would have been lower.
See Accompanying Notes to Financial Statements.
27
<Page>
(For a Class B 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 $ 17.74 $ 20.33 $ 21.95 $ 20.13 $ 19.23
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment income (loss)(1) (0.15) (0.12) (0.10) (0.09) (0.14)
Net gain on investments
(both realized and unrealized) 2.93 0.32 1.70 3.96 1.06
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.78 0.20 1.60 3.87 0.92
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains (1.59) (2.79) (3.22) (2.05) (0.02)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 18.93 $ 17.74 $ 20.33 $ 21.95 $ 20.13
========== ========== ========== ========== ==========
Total return(2) 16.88% (0.08)% 8.88% 20.80% 4.75%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 22,669 $ 19,999 $ 17,818 $ 17,255 $ 19,257
Ratio of expenses to average net assets 2.23% 2.07% 2.08% 2.10% 2.07%
Ratio of net investment loss
to average net assets (0.86)% (0.63)% (0.50)% (0.43)% (0.71)%
Decrease reflected in above operating expense
ratios due to waivers 0.04% 0.13% 0.02% -- --
Portfolio turnover rate 30% 18% 54% 42% 30%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price,
reinvestment of all distributions, and no sales charge. Had certain
expenses not been reduced during the years shown, total returns would have
been lower.
See Accompanying Notes to Financial Statements.
28
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------
2003 2002 2001 2000(1)
---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of period $ 17.69 $ 20.28 $ 21.94 $ 17.96
---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss(2) (0.15) (0.12) (0.11) (0.07)
Net gain on investments
(both realized and unrealized) 2.92 0.32 1.67 4.05
---------- ---------- ---------- ----------
Total from investment operations 2.77 0.20 1.56 3.98
---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains (1.59) (2.79) (3.22) --
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 18.87 $ 17.69 $ 20.28 $ 21.94
========== ========== ========== ==========
Total return(3) 16.87% (0.07)% 8.93% 22.16%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 8,138 $ 4,271 $ 1,481 $ 220
Ratio of expenses to average net assets 2.23% 2.07% 2.08% 1.42%(4)
Ratio of net investment loss
to average net assets (0.86)% (0.63)% (0.52)% (0.33)%(4)
Decrease reflected in above operating
expense ratios due to waivers 0.04% 0.14% 0.02% --
Portfolio turnover rate 30% 18% 54% 42%
</Table>
(1) For the period February 28, 2000 (inception date) through October 31, 2000.
(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 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) Annualized.
See Accompanying Notes to Financial Statements.
29
<Page>
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 2003
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Credit Suisse Capital Funds (the "Trust") covered in this report are
comprised of Credit Suisse Large Cap Value Fund ("Large Cap Value") and Credit
Suisse Small Cap Value Fund ("Small Cap Value"), (each a "Fund" and
collectively, the "Funds"). The Trust is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end management investment
company. The Trust was organized under the laws of the Commonwealth of
Massachusetts as a business trust on November 26, 1985. Each Fund is classified
as diversified.
Investment objectives for each Fund are as follows: Large Cap Value seeks
long-term capital appreciation and continuity of income; Small Cap Value seeks a
high level of growth of capital.
Large Cap Value offers five classes of shares: Common Class, Advisor Class,
Class A, Class B, and Class C shares. Small Cap Value offers four classes of
shares: Common Class, Class A, and Class B and Class C shares. Effective
December 12, 2001, Small Cap Value closed the Common Class to new investors.
Effective December 12, 2001, Large Cap Value closed the Common Class to new
investments, except for reinvestment of dividends. Large Cap Value's Common
Class shareholders as of the close of business on December 12, 2001 may continue
to hold Common Class shares but may not add to their accounts. Although no
further shares can be purchased, Large Cap Value's shareholders can redeem their
Common Class shares through any available method. Effective March 18, 2002,
Large Cap Value ceased operations of its Class D shares. 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 front-end
sales charge of up to 5.75%. Class B shares are sold subject to a contingent
deferred sales charge which declines from 4% to zero depending on the period of
time the shares are held. Class C shares of each Fund are sold subject to a
contingent deferred sales charge of 1.00% if redeemed within the first year of
purchase.
Effective as of the close of business on April 12, 2002, Large Cap Value
acquired all of the net assets of the Credit Suisse Balanced Fund ("Balanced")
in a tax-free exchange of shares. The Fund was also the accounting survivor in
the tax-free exchange. The shares exchanged were 741,460 Class A shares (valued
at $14,901,765) of Large Cap Value for 1,561,419 Common Class shares of Balanced
and 3,563 Class A shares (valued at $71,599) of Large Cap Value for 7,511
Advisor Class shares of Balanced. Balanced's net assets of $14,973,364 at that
date, which included $476,771 of unrealized depreciation, were combined with
those of Large Cap Value. The aggregate
30
<Page>
net assets of Balanced and Large Cap Value immediately before the acquisition
were $14,973,364 and $178,554,035, respectively, and the combined net assets of
Large Cap Value after the acquisition were $193,527,399.
Effective as of the close of business on June 6, 2003, Large Cap Value
acquired all of the net assets of the Credit Suisse Strategic Value Fund
("Strategic Value") in a tax-free exchange of shares. The Fund was also the
accounting survivor in the tax-free exchange. The shares exchanged were
9,909,161 Class A shares (valued at $176,779,318) of Large Cap Value for
14,963,301 Common Class shares of Strategic Value, 1,330,026 Advisor Class
shares (valued at $23,727,605) of Large Cap Value for 2,012,115 Advisor Class
shares of Strategic Value, 17,274 Class A shares (valued at $308,174) of Large
Cap Value for 26,097 Class A shares of Strategic Value, 4,229 Class B shares
(valued at $74,648) of Large Cap Value for 6,370 Class B shares of Strategic
Value and 9,153 Class C shares (valued at $160,727) of Large Cap Value for
13,720 Class C shares of Strategic Value. The Strategic Value's net assets of
$201,050,472 at that date, which included $23,663,867 of unrealized
appreciation, were combined with those of Large Cap Value. The aggregate net
assets of Strategic Value and Large Cap Value immediately before the acquisition
were $201,050,472, and $157,976,111, respectively, and the combined net assets
of Large Cap Value after the acquisition were $359,026,583.
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 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 Funds' 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 under procedures established by the Board of Trustees. Debt obligations
that will mature in 60 days or less are valued on the basis of amortized cost,
31
<Page>
which approximates market value, unless it is determined that this method would
not represent fair value.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date. 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 outstanding shares of that class. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income, if any, are declared and paid quarterly by Large Cap Value
and at least annually by Small Cap Value. Distributions of net realized capital
gains, if any, are declared and paid at least annually by the Funds. However, to
the extent that a net realized capital gain can be reduced by a capital loss
carryforward, such gain will not be distributed. Income and capital gain
distributions are determined in accordance with federal income tax regulations,
which may differ from accounting principles generally accepted in the United
States of America (GAAP).
D) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is
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.
E) USE OF ESTIMATES -- The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from these estimates.
F) SHORT-TERM INVESTMENTS -- The Funds, together with other funds/portfolios
advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect,
wholly-owned subsidiary of Credit Suisse Group, pools available cash into either
a short-term variable rate time deposit issued by State Street Bank and Trust
Company ("SSB"), the 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.
32
<Page>
G) SECURITIES LENDING -- Loans of securities are required at all times to be
secured by collateral at least equal to 102% of the market value of domestic
securities on loan including any accrued interest thereon and 105% of the market
value of foreign securities on loan including any accrued interest thereon. Cash
collateral received by the 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 Assets 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. Neither Fund had 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 the Funds fees for its securities lending
activities equal to its costs in providing services as securities lending agent
and had voluntarily waived such fees through March 31, 2003. Effective April 1,
2003, the Funds and CSFB entered into an arrangement to share the income earned
from securities lending activities, whereby, generally, the Funds will receive
75% and CSFB will receive 25% of the income, in accordance with the provisions
of the securities lending agency agreement. If CSFB should enter into a
securities lending agency agreement with another comparable investment company
client under which it will receive a smaller proportion of the fees, its fee
agreement with the Funds shall be reduced to such lower fee amount. Neither Fund
received income from securities lending for the year ended October 31, 2003.
H) OTHER -- Large Cap Value may invest up to 10% and Small Cap Value may
invest up to 15% of its net assets in restricted and other illiquid 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 the Funds or the current carrying values, and the difference
could be material.
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for the Funds. For its investment advisory
services, CSAM is entitled to receive the following fees,
33
<Page>
computed daily and payable monthly, on each Fund's average daily net assets as
follows:
<Table>
<Caption>
FUND ANNUAL RATE
---- -----------
Large Cap Value 0.75% of average daily net assets up to and including $75 million
0.50% of average daily net assets in excess of $75 million
Small Cap Value 0.875% of first $100 million of average daily net assets
0.75% of next $100 million of average daily net assets
0.625% of average daily net assets over $200 million
</Table>
For the year ended October 31, 2003, investment advisory fees earned and
voluntarily waived for each Fund were as follows:
<Table>
<Caption>
GROSS NET
ADVISORY ADVISORY
FUND FEE WAIVER FEE
---- ------------ --------- ------------
Large Cap Value $ 1,327,469 $ -- $ 1,327,469
Small Cap Value 1,823,244 (88,077) 1,735,167
</Table>
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as co-administrators to the Funds.
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
---- ---------------------
Large Cap Value $ 227,994
Small Cap Value 231,719
</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>
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
---- ---------------------
Large Cap Value $ 136,187
Small Cap Value 140,624
</Table>
34
<Page>
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 of Small Cap Value and
Class A shares of each Fund. Prior to November 1, 2003, Common Class shares of
Large Cap Value paid such fees at an annual rate of 0.50% of its average daily
net assets. Advisor Class shares of Large Cap Value may pay this fee at an
annual rate not to exceed 0.75% of such classes average daily assets; such fee
is currently calculated at the annual rate of 0.50% of the average daily net
assets of such class. For the Class B and Class C shares, the fee is calculated
at annual rate of 1.00% of average daily net assets of such classes. Effective
November 1, 2003, CSAMSI no longer receives 12b-1 fees on the Common Class
shares of Large Cap Value. For the year ended October 31, 2003, shareholder
servicing distribution fees paid to CSAMSI were as follows:
<Table>
<Caption>
SHAREHOLDER SERVICING/
FUND DISTRIBUTION FEE
---- ----------------------
Large Cap Value
Common Class $ 5,447
Advisor Class 45,041
Class A 464,421
Class B 283,811
Class C 26,574
----------
$ 825,294
==========
Small Cap Value
Common Class $ 111,929
Class A 401,358
Class B 206,391
Class C 57,655
----------
$ 777,333
==========
</Table>
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
---- ------
Large Cap Value $ 2,043
Small Cap Value 93,495
</Table>
35
<Page>
For the year ended October 31, 2003, CSAMSI and its affiliates advised the
Funds that they retained the following amounts from commissions earned on the
sale of the Funds' Class A shares:
<Table>
<Caption>
FUND AMOUNT
---- ------
Large Cap Value $ 41,392
Small Cap Value 78,515
</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
---- ------
Large Cap Value $ 29,669
Small Cap Value 40,083
</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, and during the year ended October 31, 2003, the Funds had no
borrowings under the Credit Facility.
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
---- --------- -----
Large Cap Value $ 113,938,226 $ 118,550,134
Small Cap Value 64,471,697 66,683,289
</Table>
36
<Page>
NOTE 5. CAPITAL SHARE TRANSACTIONS
Large Cap Value is authorized to issue an unlimited number of full and
fractional shares of beneficial interest, $0.001 par value per share, of which
an unlimited number of shares are classified as Common Class shares, Advisor
Class shares, Class A shares, Class B shares and Class C shares. Small Cap Value
is authorized to issue an unlimited number of full and fractional shares of
beneficial interest, $.001 par value per share, of which an unlimited number of
shares are classified as Common Class shares, Class A shares, Class B shares and
Class C shares. Transactions in capital shares of the Funds were as follows:
<Table>
<Caption>
LARGE CAP VALUE
----------------------------------------------------------
COMMON CLASS
----------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
----------------------------------------------------------
SHARES VALUE SHARES VALUE
---------- ------------- ---------- -------------
Shares sold 1,352 $ 23,338 103,965 $ 2,023,735
Shares issued in reinvestment
of dividends and distributions 4,402 72,572 12,434 242,387
Shares redeemed (148,101) (2,636,135) (105,918) (2,094,726)
---------- ------------- ---------- -------------
Net increase (decrease) (142,347) $ (2,540,225) 10,481 $ 171,396
========== ============= ========== =============
</Table>
<Table>
<Caption>
LARGE CAP VALUE
---------------------------
ADVISOR CLASS
---------------------------
FOR THE PERIOD ENDED
OCTOBER 31, 2003(1)
---------------------------
SHARES VALUE
---------- -------------
Shares sold 44,498 $ 805,443
Shares exchanged due to merger 1,330,026 23,727,605
Shares issued in reinvestment
of dividends 293 5,242
Shares redeemed (181,215) (3,267,840)
---------- -------------
Net increase 1,193,602 $ 21,270,450
========== =============
</Table>
<Table>
<Caption>
LARGE CAP VALUE
----------------------------------------------------------
CLASS A
----------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
----------------------------------------------------------
SHARES VALUE SHARES VALUE
---------- ------------- ---------- -------------
Shares sold 1,631,978 $ 27,951,860 626,066 $ 12,458,395
Shares exchanged due to merger 9,926,435 177,087,492 745,023 14,973,364
Shares issued in reinvestment
of dividends and distributions 179,017 3,006,863 493,645 9,681,586
Shares redeemed (2,149,099) (37,384,797) (1,742,654) (33,021,060)
---------- ------------- ---------- -------------
Net increase 9,588,331 $ 170,661,418 122,080 $ 4,092,285
========== ============= ========== =============
</Table>
37
<Page>
<Table>
<Caption>
LARGE CAP VALUE
----------------------------------------------------------
CLASS B
----------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
----------------------------------------------------------
SHARES VALUE SHARES VALUE
---------- ------------- ---------- -------------
Shares sold 259,948 $ 4,319,275 290,681 $ 5,488,383
Shares exchanged due to merger 4,229 74,648 -- --
Shares issued in reinvestment
of dividends and distributions 31,262 512,465 133,172 2,598,132
Shares redeemed (386,324) (6,387,578) (396,941) (7,219,735)
---------- ------------- ---------- -------------
Net increase (decrease) (90,885) $ (1,481,190) 26,912 $ 866,780
========== ============= ========== =============
</Table>
<Table>
<Caption>
LARGE CAP VALUE
----------------------------------------------------------
CLASS C
----------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
----------------------------------------------------------
SHARES VALUE SHARES VALUE
---------- ------------- ---------- -------------
Shares sold 72,255 $ 1,220,239 54,693 $ 1,022,052
Shares exchanged due to merger 9,153 160,727 -- --
Shares issued in reinvestment
of dividends and distributions 2,638 43,059 8,035 155,964
Shares redeemed (21,597) (366,597) (33,052) (615,500)
---------- ------------- ---------- -------------
Net increase 62,449 $ 1,057,428 29,676 $ 562,516
========== ============= ========== =============
</Table>
<Table>
<Caption>
LARGE CAP VALUE
---------------------------
CLASS D
---------------------------
FOR THE YEAR ENDED
OCTOBER 31, 2002(2)
---------------------------
SHARES VALUE
---------- -------------
Shares sold 53,963 $ 1,072,918
Shares issued in reinvestment
of dividends and distributions 171,387 3,381,467
Shares redeemed (2,311,557) (47,718,754)
---------- -------------
Net decrease (2,086,207) (43,264,369)
========== =============
</Table>
<Table>
<Caption>
SMALL CAP VALUE
----------------------------------------------------------
COMMON CLASS
----------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
----------------------------------------------------------
SHARES VALUE SHARES VALUE
Shares sold 870,927 $ 15,846,132 2,037,442 $ 43,491,976
Shares issued in reinvestment
of dividends and distributions 239,082 4,181,492 206,532 4,122,723
Shares redeemed (1,142,820) (20,288,729) (1,271,379) (26,177,786)
---------- ------------- ---------- -------------
Net increase (decrease) (32,811) $ (261,105) 972,595 $ 21,436,913
========== ============= ========== =============
</Table>
38
<Page>
<Table>
<Caption>
SMALL CAP VALUE
----------------------------------------------------------
CLASS A
----------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
----------------------------------------------------------
SHARES VALUE SHARES VALUE
---------- ------------- ---------- -------------
Shares sold 2,925,201 $ 53,065,536 1,317,940 $ 35,671,755
Shares issued in reinvestment
of dividends and distributions 691,170 12,130,136 1,250,540 25,063,759
Shares redeemed (2,374,821) (42,655,211) (3,884,528) (90,304,871)
---------- ------------- ---------- -------------
Net increase (decrease) 1,241,550 $ 22,540,461 (1,316,048) $ (29,569,357)
========== ============= ========== =============
</Table>
<Table>
<Caption>
SMALL CAP VALUE
----------------------------------------------------------
CLASS B
----------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
----------------------------------------------------------
SHARES VALUE SHARES VALUE
---------- ------------- ---------- -------------
Shares sold 209,151 $ 3,537,721 352,858 $ 7,019,306
Shares issued in reinvestment
of dividends and distributions 94,731 1,577,261 117,607 2,258,049
Shares redeemed (233,802) (3,968,267) (219,418) (4,302,841)
---------- ------------- ---------- -------------
Net increase 70,080 $ 1,146,715 251,047 $ 4,974,514
========== ============= ========== =============
</Table>
<Table>
<Caption>
SMALL CAP VALUE
----------------------------------------------------------
CLASS C
----------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
----------------------------------------------------------
SHARES VALUE SHARES VALUE
---------- ------------- ---------- -------------
Shares sold 245,228 $ 4,201,650 210,925 $ 4,179,124
Shares issued in reinvestment
of dividends and distributions 22,210 368,689 11,516 220,414
Shares redeemed (77,702) (1,340,778) (54,000) (1,015,269)
---------- ------------- ---------- -------------
Net increase 189,736 $ 3,229,561 168,441 $ 3,384,269
========== ============= ========== =============
</Table>
(1) Large Cap Value Advisor Class commenced operations on June 6, 2003.
(2) Large Cap Value Class D ceased operations effective March 18, 2002.
On October 31, 2003, the number of shareholders that held 5% or more of the
outstanding shares of each class of the Funds were as follows:
<Table>
<Caption>
NUMBER OF APPROXIMATE PERCENTAGE
FUND SHAREHOLDERS OF OUTSTANDING SHARES
---- ------------ ----------------------
Large Cap Value
Common Class 3 32%
Advisor Class 1 98%
Class A 1 15%
Class C 3 24%
Small Cap Value
Common Class 3 63%
Class C 1 6%
</Table>
39
<Page>
Some of the shareholders are omnibus accounts, which hold shares on behalf of
individual shareholders.
NOTE 6. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP. These differences
are primarily due to differing treatments of losses deferred due to wash sales.
The tax characteristics of dividends and distributions paid during the years
ended October 31, 2003 and 2002, respectively, by the Funds were as follows:
<Table>
<Caption>
ORDINARY INCOME LONG-TERM CAPITAL GAIN
---------------------------- ------------------------------
FUND 2003 2002 2003 2002
------------ ------------- -------------- -------------
Large Cap Value $ 1,494,398 $ 1,552,589 $ 2,712,070 $ 17,514,077
Small Cap Value 781,563 10,814,993 18,634,805 22,508,380
</Table>
At October 31, 2003, the components of distributable earnings on a tax basis
were as follows:
<Table>
<Caption>
LARGE CAP VALUE SMALL CAP VALUE
--------------- ---------------
Undistributed ordinary income $ 197,878 $ 2,334,041
Accumulated realized gain 9,111,908 11,844,899
Unrealized appreciation 57,233,366 60,927,213
------------- -------------
$ 66,543,152 75,106,153
============= =============
</Table>
At October 31, 2003, Large Cap Value had a capital loss carryforward which
was acquired in the Credit Suisse Balanced Fund merger and is subject to IRS
limitations available to offset possible future capital gains as follows:
<Table>
<Caption>
EXPIRES OCTOBER 31,
FUND 2009
---- -------------------
Large Cap Value $ 566,004
</Table>
40
<Page>
At 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 from investments were as follows:
<Table>
<Caption>
GROSS GROSS
IDENTIFIED UNREALIZED UNREALIZED NET UNREALIZED
FUND COST APPRECIATION (DEPRECIATION) APPRECIATION
---- -------------- ------------ -------------- --------------
Large Cap Value $ 305,067,989 $ 62,549,677 $ (5,316,311) $ 57,233,366
Small Cap Value 203,677,085 64,108,340 (3,181,127) 60,927,213
</Table>
At October 31, 2003, accumulated undistributed net investment income,
accumulated net realized gain (loss) from investments, and paid-in capital have
been adjusted for current period permanent book/tax differences which arose
principally from differing book/tax treatments of REIT dividends, wash sales and
capital loss carryforwards from a fund acquisition. Net assets were not affected
by these reclassifications:
<Table>
<Caption>
ACCUMULATED NET
REALIZED
PAID-IN UNDISTRIBUTED NET GAIN ON
FUND CAPITAL INVESTMENT INCOME INVESTMENTS
---- ------------ ----------------- ---------------
Large Cap Value $ 6,428,804 $ -- $ (6,428,804)
Small Cap Value -- 483,661 (483,661)
</Table>
NOTE 7. 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.
41
<Page>
CREDIT SUISSE FUNDS
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors/Trustees and Shareholders of
Credit Suisse Large Cap Value Fund and
Credit Suisse Small Cap Value Fund:
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 Large Cap Value Fund
and Credit Suisse Small Cap Value Fund (each a series of the Credit Suisse
Capital Funds) (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 in the period then ended and
the financial highlights for each of the three years in the period ended October
31, 2003, 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. The financial highlights of the Funds for each of the periods
presented in the period ended October 31, 2000 were audited by other independent
auditors, whose report dated December 20, 2000 expressed an unqualified opinion
on those statements.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 23, 2003
42
<Page>
CREDIT SUISSE FUNDS
INFORMATION CONCERNING TRUSTEES AND OFFICERS (UNAUDITED)
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH TRUST SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- -------------------------- ------------- ------------ ---------------------------- -------------- ---------------------
INDEPENDENT TRUSTEES
Richard H. Francis Trustee, Since 2001 Currently retired 44 None
c/o Credit Suisse Asset Nominating
Management, LLC and Audit
466 Lexington Avenue Committee
New York, New York Member
10017-3140
Date of Birth: 04/23/32
Jeffrey E. Garten Trustee, Since 2001 Dean of Yale School of 43 Director of Aetna, Inc.
Box 208200 Nominating Management and William S. (insurance company);
New Haven, Connecticut and Audit Beinecke Professor in the Director of Calpine
06520-8200 Committee Practice of International Corporation (energy
Member Trade and Finance (11/95 -- provider); Director of
Date of Birth: 10/29/46 present) CarMax Group (used car
dealers)
</Table>
- ----------
(1) Each Trustee and Officer serves until his or her respective successor has
been duly elected and qualified.
43
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH TRUST SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- -------------------------- ------------- ------------ ---------------------------- -------------- ---------------------
INDEPENDENT TRUSTEES
Peter F. Krogh Trustee, Since 2001 Dean Emeritus and 43 Director of Carlisle
301 ICC Nominating Distinguished Professor of Companies Incorporated
Georgetown University and Audit International Affairs at the (diversified
Washington, DC 20057 Committee Edmund A. Walsh School of manufacturing company);
Member Foreign Service, Georgetown Member of Selection
Date of Birth: 02/11/37 University (6/95 -- Committee for Truman
present); Moderator of PBS Scholars and Henry Luce
foreign affairs television Scholars; Senior
series (1988 -- 2000) Associate of Center for
Strategic and
International Studies;
Trustee of numerous world
affairs organizations
James S. Pasman, Jr. Trustee, Since 2001 Currently retired 45 Director of Education
c/o Credit Suisse Asset Nominating Management Corp.
Management, LLC and Audit
466 Lexington Avenue Committee
New York, New York Member
10017-3140
Date of Birth: 12/20/30
</Table>
44
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH TRUST SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- -------------------------- ------------- ------------ ---------------------------- -------------- ---------------------
INDEPENDENT TRUSTEES
Steven N. Rappaport Trustee, Since 2001 Partner of Lehigh Court, LLC 45 None
Lehigh Court, LLC Nominating and RZ Capital (private
40 East 52nd Street Committee investment firms) (7/02 --
New York, New York Member and present); Consultant to
10022 Audit SunGard Securities Finance,
Committee Inc. from February 2002 to
Date of Birth: 07/10/48 Chairman July 2002; President of
SunGard Securities Finance,
Inc. from 2001 to February
2002; President of Loanet,
Inc. (on-line accounting
service) from 1997 to 2001
INTERESTED TRUSTEES
Joseph D. Gallagher(2) Trustee, Since 2003 Managing Director and Chief 46 None
Credit Suisse Asset Chairman of Executive Officer of CSAM
Management, LLC the Board and since 2003; Global Chief
466 Lexington Avenue Chief Financial Officer, Credit
New York, New York Executive Suisse Asset Management,
10017-3140 Officer since 1999; Chief Executive
Officer and Director of
Date of Birth: 12/14/62 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>
- ----------
(2) Mr. Gallagher is a Trustee who is an "interested person" of the Fund as
defined in the 1940 Act, because he is an officer of CSAM.
45
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH TRUST SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- -------------------------- ------------- ------------ ---------------------------- -------------- ---------------------
INTERESTED TRUSTEES
William W. Priest, Jr.(3) Trustee Since 2001 Co-Managing Partner, 50 Director of Globe
Steinberg Priest & Sloane Steinberg Priest & Sloane Wireless, LLC (a maritime
Capital Management, LLC Capital Management, LLC communications company);
12 East 49th Street since March 2001; Chairman Director of InfraRed X
12th Floor and Managing Director of (a medical device company)
New York, New York CSAM from 2000 to February
10017 2001, Chief Executive
Officer and Managing
Date of Birth: 09/24/41 Director of CSAM from 1990
to 2000
</Table>
- ----------
(3) Mr. Priest is a 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).
46
<Page>
<Table>
<Caption>
TERM
OF OFFICE(1)
AND
POSITION(S) LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH TRUST SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- -------------------------- -------------- ------------ ----------------------------------------------
OFFICERS
Hal Liebes Vice President Since 2001 Managing Director and Global General Counsel
Credit Suisse Asset and Secretary of CSAM; Associated with CSAM since 1997;
Management, LLC Officer of other Credit Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 07/06/64
Michael A. Pignataro Chief Financial Since 2001 Director and Director of Fund Administration
Credit Suisse Asset Officer and of CSAM; Associated with CSAM since 1984;
Management, LLC Treasurer Officer of other Credit Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 11/15/59
Gregory N. Bressler Assistant Since 2001 Director and Deputy General Counsel of CSAM;
Credit Suisse Asset Secretary Associated with CSAM since January 2000;
Management, LLC Associated with the law firm of Swidler
466 Lexington Avenue Berlin Shereff Friedman LLP from 1996 to
New York, New York 2000; Officer of other Credit Suisse Funds
10017-3140
Date of Birth: 11/17/66
Rocco A. Del Guercio Assistant Since 2001 Vice President of CSAM; Associated with CSAM
Credit Suisse Asset Treasurer since June 1996; Officer of other Credit
Management, LLC Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 04/28/63
</Table>
47
<Page>
<Table>
<Caption>
TERM
OF OFFICE(1)
AND
POSITION(S) LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH TRUST SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- -------------------------- -------------- ------------ ----------------------------------------------
OFFICERS
Joseph Parascondola Assistant Since 2001 Assistant Vice President of CSAM; Associated
Credit Suisse Asset Treasurer with CSAM since April 2000; Assistant Vice
Management, LLC President, Deutsche Asset Management from
466 Lexington Avenue January 1999 to April 2000; Assistant Vice
New York, New York President, Weiss, Peck & Greer LLC from
10017-3140 November 1995 to December 1998; Officer of
other Credit Suisse Funds
Date of Birth: 06/05/63
Robert M. Rizza Assistant Since 2002 Assistant Vice President of CSAM; Associated
Credit Suisse Asset Treasurer with CSAM since 1998; Officer of other Credit
Management, LLC Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 12/09/65
</Table>
The Statement of Additional Information includes additional information about
the Trustees and is available, without charge, upon request, by calling
800-927-2874.
48
<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
---- ----------
Large Cap Value 100%
</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.
IMPORTANT TAX INFORMATION FOR SHAREHOLDERS
During the year ended October 31, 2003, the Funds declared the following
dividends that were designated as long-term capital gains dividends:
<Table>
<Caption>
FUND AMOUNT
---- ------------
Large Cap Value $ 2,712,070
Small Cap Value 18,634,805
</Table>
49
<Page>
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<Page>
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<Page>
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<Page>
P.O. BOX 55030, BOSTON, MA 02205-5030 [CREDIT SUISSE ASSET MANAGEMENT LOGO]
800-927-2874 - www.csam-americas.com
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. CSVAL-2-1003
<Page>
[CREDIT SUISSE ASSET MANAGEMENT LOGO]
CREDIT SUISSE FUNDS
ANNUAL REPORT
OCTOBER 31, 2003
- - CREDIT SUISSE
TAX EFFICIENT FUND
MORE COMPLETE INFORMATION ABOUT THE FUND, 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 FUND'S 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 FUND'S 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 TAX EFFICIENT FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2003 (Unaudited)
November 24, 2003
Dear Shareholder:
For the 12 months ended October 31, 2003, the Common Class shares of Credit
Suisse Tax Efficient Fund(1) (the "Fund") had a gain of 18.74%, versus an
increase of 20.80% for the Standard & Poor's 500 Index.(2) The Fund's Class A
shares(3) (without sales charge), Class B shares(3) (without contingent deferred
sales charge) and Class C shares(3) (without contingent deferred sales charge)
had gains of 18.71%, 17.88% and 17.88%, respectively, for the same period.
RETURNS AFTER TAXES(4)
<Table>
<Caption>
COMMON CLASS A CLASS B CLASS C
SHARES SHARES SHARES SHARES
------ ------- ------- -------
After taxes on distributions,
without maximum sales load,
or CDSC, as applicable 18.64% 18.61% 17.88% 17.88%
After taxes on distributions,
with maximum sales load,
or CDSC, as applicable 18.64% 11.79% 13.88% 16.88%
After taxes on distributions
and sale of Fund shares,
without maximum sales load,
or CDSC, as applicable 12.16% 12.14% 11.62% 11.62%
After taxes on distributions
and sale of Fund shares,
with maximum sales load,
or CDSC, as applicable 12.16% 7.71% 9.02% 10.97%
</Table>
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.
1
<Page>
Against this backdrop, the Fund modestly trailed its benchmark, hindered in
part by weakness in certain media and telecommunications holdings. On the
positive side, factors that helped the Fund included good stock selection in the
health-care and technology sectors.
The U.S. economic recovery appears to be underway, as indicated by the
impressive annualized GDP growth rate of 8.2% for the third quarter of 2003. In
short, the potent mix of fiscal and monetary stimulus applied to the economy
over the last year seems to be taking hold at last. How sustainable the recovery
will be is unknown, but we see grounds for encouragement. What is unusual about
present conditions is the remarkably high rate of U.S. productivity growth, and
its potential to help keep inflation and interest rates low. Not so pleasing is
the effect rapid productivity growth can have on the labor market, specifically
resulting in slower job growth than would otherwise prevail. That said, recent
data suggest that the labor market is finally firming. Moderately faster job
growth might give equity investors even greater confidence in the robustness of
consumer demand, which could, in turn, bode well for the equity market.
In terms of portfolio strategy, we have been replacing certain less-cyclical
companies with companies that we believe might perform better in an environment
of growth combined with low inflation. As always, we continue to place a premium
on company managements with a history of good execution. Of course, valuation
remains a perennial concern, but even when replacing expensive holdings with
cheaper ones we strive for consistency with our economic outlook. Finally,
because the new tax law has made equity yields more attractive for taxable
investors, we are weighing yield more heavily within our stock-selection
process.
Hugh Neuburger
Portfolio Manager
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
2
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE TAX EFFICIENT FUND(1) ON COMMON CLASS SHARES AND THE
S&P 500 INDEX(2) FROM INCEPTION (08/01/00).
<Table>
<Caption>
CREDIT SUISSE TAX EFFICIENT FUND(1) COMMON CLASS S&P 500 INDEX(2)
8/1/2000 $ 10,000 $ 10,000
8/31/2000 $ 10,709 $ 10,621
9/30/2000 $ 9,991 $ 10,060
10/31/2000 $ 9,987 $ 10,018
11/30/2000 $ 9,118 $ 9,228
12/31/2000 $ 9,234 $ 9,273
1/31/2001 $ 9,586 $ 9,602
2/28/2001 $ 8,575 $ 8,726
3/31/2001 $ 7,883 $ 8,174
4/30/2001 $ 8,589 $ 8,809
5/31/2001 $ 8,635 $ 8,868
6/30/2001 $ 8,287 $ 8,652
7/31/2001 $ 8,083 $ 8,567
8/31/2001 $ 7,521 $ 8,031
9/30/2001 $ 6,914 $ 7,382
10/31/2001 $ 7,025 $ 7,523
11/30/2001 $ 7,633 $ 8,100
12/31/2001 $ 7,656 $ 8,171
1/31/2002 $ 7,568 $ 8,052
2/28/2002 $ 7,336 $ 7,896
3/31/2002 $ 7,633 $ 8,193
4/30/2002 $ 7,048 $ 7,697
5/31/2002 $ 6,937 $ 7,640
6/30/2002 $ 6,394 $ 7,096
7/31/2002 $ 5,888 $ 6,543
8/31/2002 $ 5,921 $ 6,586
9/30/2002 $ 5,248 $ 5,870
10/31/2002 $ 5,698 $ 6,387
11/30/2002 $ 6,041 $ 6,762
12/31/2002 $ 5,636 $ 6,365
1/31/2003 $ 5,515 $ 6,198
2/28/2003 $ 5,403 $ 6,105
3/31/2003 $ 5,491 $ 6,165
4/30/2003 $ 5,919 $ 6,673
5/31/2003 $ 6,184 $ 7,024
6/30/2003 $ 6,249 $ 7,114
7/31/2003 $ 6,421 $ 7,239
8/31/2003 $ 6,519 $ 7,381
9/30/2003 $ 6,431 $ 7,302
10/31/2003 $ 6,765 $ 7,716
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE TAX EFFICIENT FUND(1) CLASS A SHARES AND THE
S&P 500 INDEX(2) FOR TEN YEARS.
<Table>
<Caption>
CREDIT SUISSE TAX EFFICIENT FUND(1) CLASS A
(WITH MAXIMUM SALES CHARGE) S&P 500 INDEX(2)
10/31/1993 9425 10000
11/30/1993 9347 9906
12/31/1993 9779 10028
1/31/1994 10314 10363
2/28/1994 10042 10083
3/31/1994 9516 9644
4/30/1994 9761 9769
5/31/1994 9806 9929
6/30/1994 9471 9683
7/31/1994 9824 10004
8/31/1994 10160 10411
9/30/1994 9861 10159
10/31/1994 9815 10392
11/30/1994 9481 10010
12/31/1994 9364 10156
1/31/1995 9422 10421
2/28/1995 9617 10825
3/31/1995 9879 11145
4/30/1995 10024 11472
5/31/1995 10364 11926
6/30/1995 10422 12206
7/31/1995 10703 12613
8/31/1995 10597 12647
9/30/1995 10936 13178
10/31/1995 11014 13132
11/30/1995 11458 13710
12/31/1995 11571 13963
1/31/1996 12030 14444
2/29/1996 12322 14583
3/31/1996 12427 14722
4/30/1996 12573 14939
5/31/1996 12761 15324
6/30/1996 12678 15386
7/31/1996 12155 14701
8/31/1996 12343 15014
9/30/1996 12897 15857
10/31/1996 13252 16292
11/30/1996 14299 17528
12/31/1996 13906 17185
1/31/1997 14827 18252
2/28/1997 14839 18398
3/31/1997 14136 17633
4/30/1997 15034 18685
5/31/1997 15806 19832
6/30/1997 16381 20704
7/31/1997 17486 22349
8/31/1997 16508 21110
9/30/1997 17337 22261
10/31/1997 16761 21529
11/30/1997 17433 22516
12/31/1997 17845 22897
1/31/1998 18114 23156
2/28/1998 19470 24820
3/31/1998 20374 26094
4/30/1998 20398 26364
5/31/1998 20007 25906
6/30/1998 20826 26958
7/31/1998 20686 26671
8/31/1998 17617 22821
9/30/1998 18906 24299
10/31/1998 20281 26266
11/30/1998 21397 27859
12/31/1998 22906 29480
1/31/1999 23729 30693
2/28/1999 23205 29740
3/31/1999 24140 30934
4/30/1999 24888 32112
5/31/1999 24302 31370
6/30/1999 25687 33085
7/31/1999 25138 32077
8/31/1999 25138 31927
9/30/1999 24739 31043
10/31/1999 26522 33017
11/30/1999 27108 33692
12/31/1999 29301 35673
1/31/2000 28279 33880
2/29/2000 28400 33240
3/31/2000 31159 36492
4/30/2000 30163 35394
5/31/2000 29355 34667
6/30/2000 30890 35522
7/31/2000 30351 34967
8/31/2000 32532 37138
9/30/2000 30351 35177
10/31/2000 30338 35028
11/30/2000 27698 32267
12/31/2000 28050 32424
1/31/2001 29108 33575
2/28/2001 26049 30514
3/31/2001 23977 28580
4/30/2001 26133 30801
5/31/2001 26260 31008
6/30/2001 25203 30253
7/31/2001 24597 29955
8/31/2001 22877 28080
9/30/2001 21031 25813
10/31/2001 21369 26305
11/30/2001 23216 28323
12/31/2001 23300 28571
1/31/2002 23018 28154
2/28/2002 22314 27611
3/31/2002 23216 28650
4/30/2002 21440 26913
5/31/2002 21101 26714
6/30/2002 19438 24811
7/31/2002 17916 22877
8/31/2002 18000 23028
9/30/2002 15970 20525
10/31/2002 17338 22331
11/30/2002 18381 23646
12/31/2002 17149 22257
1/31/2003 16767 21674
2/28/2003 16442 21348
3/31/2003 16711 21556
4/30/2003 17996 23332
5/31/2003 18815 24561
6/30/2003 18999 24876
7/31/2003 19522 25314
8/31/2003 19832 25807
9/30/2003 19550 25534
10/31/2003 20581 26979
</Table>
3
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE TAX EFFICIENT FUND(1) CLASS B SHARES AND THE
S&P 500 INDEX(2) FROM INCEPTION (02/28/96).
<Table>
<Caption>
CREDIT SUISSE TAX EFFICIENT FUND(1) CLASS B
(WITH MAXIMUM CONTINGENT DEFERRED SALES CHARGE) S&P 500 INDEX(2)
2/28/1996 10,000.00 10,000.00
2/29/1996 9,941.03 10,096.10
3/31/1996 10,025.27 10,192.82
4/30/1996 10,134.79 10,342.96
5/31/1996 10,278.01 10,609.50
6/30/1996 10,210.61 10,652.57
7/31/1996 9,780.96 10,178.21
8/31/1996 9,924.18 10,394.40
9/30/1996 10,362.26 10,978.67
10/31/1996 10,640.27 11,279.16
11/30/1996 11,476.26 12,135.36
12/31/1996 11,162.02 11,897.87
1/31/1997 11,895.02 12,636.49
2/28/1997 11,895.02 12,737.83
3/31/1997 11,319.75 12,208.06
4/30/1997 12,034.19 12,936.40
5/31/1997 12,646.57 13,730.43
6/30/1997 13,101.22 14,334.16
7/31/1997 13,973.40 15,472.72
8/31/1997 13,184.73 14,615.23
9/30/1997 13,843.50 15,412.19
10/31/1997 13,370.30 14,904.98
11/30/1997 13,902.59 15,588.67
12/31/1997 14,227.28 15,852.12
1/31/1998 14,424.06 16,031.56
2/28/1998 15,496.52 17,183.59
3/31/1998 16,204.93 18,065.63
4/30/1998 16,224.61 18,252.79
5/31/1998 15,899.92 17,935.37
6/30/1998 16,539.46 18,663.90
7/31/1998 16,427.06 18,465.51
8/31/1998 13,974.38 15,799.83
9/30/1998 14,993.03 16,823.02
10/31/1998 16,071.03 18,184.85
11/30/1998 16,940.44 19,287.39
12/31/1998 18,126.08 20,409.73
1/31/1999 18,769.13 21,249.79
2/28/1999 18,347.12 20,589.77
3/31/1999 19,070.56 21,416.86
4/30/1999 19,653.33 22,232.42
5/31/1999 19,181.08 21,718.41
6/30/1999 20,266.24 22,905.53
7/31/1999 19,814.09 22,207.83
8/31/1999 19,783.95 22,104.34
9/30/1999 19,452.37 21,492.27
10/31/1999 20,849.01 22,858.75
11/30/1999 21,300.54 23,325.99
12/31/1999 23,006.76 24,697.32
1/31/2000 22,202.55 23,456.53
2/29/2000 22,278.63 23,012.96
3/31/2000 24,430.42 25,264.32
4/30/2000 23,637.08 24,504.12
5/31/2000 22,985.02 24,001.29
6/30/2000 24,180.46 24,592.93
7/31/2000 23,734.89 24,208.54
8/31/2000 25,430.24 25,711.89
9/30/2000 23,713.15 24,354.30
10/31/2000 23,680.55 24,251.28
11/30/2000 21,614.02 22,339.31
12/31/2000 21,864.82 22,448.55
1/31/2001 22,685.60 23,245.02
2/28/2001 20,280.24 21,125.54
3/31/2001 18,661.47 19,787.24
4/30/2001 20,325.84 21,324.91
5/31/2001 20,405.64 21,467.78
6/30/2001 19,573.46 20,945.26
7/31/2001 19,083.27 20,739.16
8/31/2001 17,749.49 19,440.89
9/30/2001 16,301.71 17,871.03
10/31/2001 16,552.51 18,211.83
11/30/2001 17,977.48 19,608.86
12/31/2001 18,023.08 19,780.64
1/31/2002 17,795.09 19,492.04
2/28/2002 17,247.90 19,116.23
3/31/2002 17,920.49 19,835.19
4/30/2002 16,541.11 18,632.59
5/31/2002 16,278.91 18,495.26
6/30/2002 14,990.74 17,177.66
7/31/2002 13,793.76 15,838.66
8/31/2002 13,862.16 15,942.72
9/30/2002 12,288.98 14,210.07
10/31/2002 13,326.37 15,460.84
11/30/2002 14,112.95 16,370.86
12/31/2002 13,166.77 15,409.07
1/31/2003 12,870.37 15,005.36
2/28/2003 12,608.18 14,780.28
3/31/2003 12,801.98 14,923.64
4/30/2003 13,793.76 16,153.35
5/31/2003 14,397.95 17,004.63
6/30/2003 14,534.75 17,222.29
7/31/2003 14,933.74 17,525.41
8/31/2003 15,150.33 17,867.15
9/30/2003 14,933.74 17,677.76
10/31/2003 15,708.93 18,678.32
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE TAX EFFICIENT FUND(1) CLASS C SHARES AND THE
S&P 500 INDEX(2) FROM INCEPTION (02/28/00).
<Table>
<Caption>
CREDIT SUISSE TAX EFFICIENT FUND(1) CLASS C
(WITH MAXIMUM CONTINGENT DEFERRED SALES CHARGE) S&P 500 INDEX(2)
2/28/2000 10,000.00 10,000.00
2/29/2000 10,143.42 9,810.90
3/31/2000 11,117.71 10,770.70
4/30/2000 10,756.68 10,446.61
5/31/2000 10,459.94 10,232.25
6/30/2000 11,003.96 10,484.47
7/31/2000 10,801.19 10,320.60
8/31/2000 11,572.70 10,961.51
9/30/2000 10,786.35 10,382.74
10/31/2000 10,776.46 10,338.82
11/30/2000 9,830.84 9,523.71
12/31/2000 9,950.16 9,570.28
1/31/2001 10,318.49 9,909.83
2/28/2001 9,229.06 9,006.25
3/31/2001 8,487.21 8,435.71
4/30/2001 9,244.62 9,091.25
5/31/2001 9,286.13 9,152.16
6/30/2001 8,907.42 8,929.39
7/31/2001 8,684.34 8,841.53
8/31/2001 8,072.19 8,288.05
9/30/2001 7,418.53 7,618.79
10/31/2001 7,532.66 7,764.08
11/30/2001 8,175.94 8,359.66
12/31/2001 8,201.88 8,432.89
1/31/2002 8,098.12 8,309.86
2/28/2002 7,843.92 8,149.64
3/31/2002 8,155.19 8,456.15
4/30/2002 7,527.47 7,943.45
5/31/2002 7,408.15 7,884.91
6/30/2002 6,816.74 7,323.19
7/31/2002 6,277.21 6,752.35
8/31/2002 6,308.34 6,796.71
9/30/2002 5,592.43 6,058.04
10/31/2002 6,064.51 6,591.27
11/30/2002 6,422.47 6,979.24
12/31/2002 5,991.89 6,569.21
1/31/2003 5,857.00 6,397.09
2/28/2003 5,737.68 6,301.14
3/31/2003 5,825.88 6,362.26
4/30/2003 6,277.21 6,886.51
5/31/2003 6,552.17 7,249.43
6/30/2003 6,614.42 7,342.22
7/31/2003 6,790.80 7,471.44
8/31/2003 6,894.56 7,617.13
9/30/2003 6,795.99 7,536.39
10/31/2003 7,148.76 7,962.95
</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.
4
<Page>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
COMMON CLASS
Return Before Taxes 22.54% - - (13.01)%
Return After Taxes
on Distributions 22.44% - - (13.28)%
Return After Taxes
on Distributions and
Sale of Fund Shares 14.64% - - (10.80)%
CLASS A(5)
Return Before Taxes
Without Sales Charge 22.41% 0.67% 7.87% 8.21%
Return Before Taxes With
Maximum Sales Charge 15.39% (0.51)% 7.23% 7.82%
Return After Taxes on
Distributions Without
Sales Charge 22.31% 0.11% 6.47% 6.44%
Return After Taxes on
Distributions With
Maximum Sales Charge 15.29% (1.07)% 5.84% 6.06%
Return After Taxes on
Distributions and Sale
of Fund Shares Without
Sales Charge 14.55% 0.55% 6.24% 6.27%
Return After Taxes on
Distributions and Sale
of Fund Shares With
Maximum Sales Charge 9.99% (0.46)% 5.66% 5.92%
CLASS B
Return Before Taxes
Without CDSC 21.52% (0.08)% - 5.43%
Return Before Taxes With
Maximum CDSC 17.52% (0.08)% - 5.43%
Return After Taxes on
Distributions Without CDSC 21.52% (0.63)% - 4.42%
Return After Taxes on
Distributions With
Maximum CDSC 17.52% (0.63)% - 4.42%
</Table>
5
<Page>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Return After Taxes
on Distributions and
Sale of Fund Shares
Without CDSC 13.99% (0.07)% -- 4.36%
Return After Taxes
on Distributions and
Sale of Fund Shares
With Maximum CDSC 11.39% (0.07)% -- 4.36%
CLASS C
Return Before Taxes
Without CDSC 21.52% -- -- (10.20)%
Return Before Taxes
With Maximum CDSC 20.52% -- -- (10.20)%
Return After Taxes on
Distributions Without CDSC 21.52% -- -- (10.44)%
Return After Taxes on
Distributions With
Maximum CDSC 20.52% -- -- (10.44)%
Return After Taxes on
Distributions and Sale of
Fund Shares Without CDSC 13.99% -- -- (8.47)%
Return After Taxes on
Distributions and Sale of
Fund Shares With
Maximum CDSC 13.34% -- -- (8.47)%
</Table>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
COMMON CLASS
Return Before Taxes 18.74% -- -- (11.32)%
Return After Taxes
on Distributions 18.64% -- -- (11.59)%
Return After Taxes
on Distributions and
Sale of Fund Shares 12.16% -- -- (9.43)%
</Table>
6
<Page>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
CLASS A(5)
Return Before Taxes Without
Sales Charge 18.71% 0.29% 8.12% 8.49%
Return Before Taxes With
Maximum Sales Charge 11.88% (0.89)% 7.48% 8.11%
Return After Taxes on
Distributions Without
Sales Charge 18.61% (0.26)% 6.72% 6.73%
Return After Taxes on
Distributions With
Maximum Sales Charge 11.79% (1.44)% 6.09% 6.36%
Return After Taxes on
Distributions and Sale of
Fund Shares Without
Sales Charge 12.14% 0.20% 6.44% 6.52%
Return After Taxes on
Distributions and Sale of
Fund Shares With
Maximum Sales Charge 7.71% (0.80)% 5.86% 6.17%
CLASS B
Return Before Taxes
Without CDSC 17.88% (0.45)% -- 6.06%
Return Before Taxes With
Maximum CDSC 13.88% (0.45)% -- 6.06%
Return After Taxes on
Distributions Without CDSC 17.88% (1.01)% -- 5.06%
Return After Taxes on
Distributions With
Maximum CDSC 13.88% (1.01)% -- 5.06%
Return After Taxes on
Distributions and Sale of
Fund Shares Without CDSC 11.62% (0.41)% -- 4.90%
Return After Taxes on
Distributions and Sale of Fund
Shares With Maximum CDSC 9.02% (0.41)% -- 4.90%
</Table>
7
<Page>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2003(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
CLASS C
Return Before Taxes
Without CDSC 17.88% -- -- (8.73)%
Return Before Taxes With
Maximum CDSC 16.88% -- -- (8.73)%
Return After Taxes on
Distributions Without CDSC 17.88% -- -- (8.96)%
Return After Taxes on
Distributions With
Maximum CDSC 16.88% -- -- (8.96)%
Return After Taxes on
Distributions and Sale of
Fund Shares Without CDSC 11.62% -- -- (7.28)%
Return After Taxes on
Distributions and Sale of
Fund Shares With Maximum
CDSC 10.97% -- -- (7.28)%
</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 Standard & Poor's 500 Index is an unmanaged index (with no defined
investment objective) of common stocks. It includes reinvestment of
dividends, and is a registered trademark of McGraw-Hill Co., Inc. 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 11.88%. Total return for
Class B shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge, or CDSC, of 4%), was
13.88%. Total return for Class C shares for the reporting period , based on
redemption value (including maximum CDSC of 1%), was 16.88%.
(4) After-tax returns are calculated using the historical highest individual
federal marginal income tax rates and do not reflect the impact of state or
local taxes. Actual returns depend on an investor's circumstances and may
differ from those shown. Actual after-tax returns may not be relevant to
investors who hold their shares through tax-advantaged arrangements, such
as IRA's or 401(k) plans. The after-tax performance figures provided in
this report may vary from the after-tax performance figures provided by
other sources. In some cases the returns after taxes may exceed the returns
before taxes due to an assumed tax benefit from any losses on a sale of
fund shares at the end of the period.
(5) Inception date: 12/15/86.
8
<Page>
CREDIT SUISSE TAX EFFICIENT FUND
SCHEDULE OF INVESTMENTS
October 31, 2003
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS (100.0%)
AEROSPACE & DEFENSE (2.1%)
United Technologies Corp. 22,000 $ 1,863,180
------------
AIR FREIGHT & COURIERS (1.4%)
FedEx Corp. 16,600 1,257,616
------------
BANKS (7.6%)
Bank of America Corp. 29,500 2,234,035
Mellon Financial Corp. 47,000 1,403,890
Wachovia Corp. 23,000 1,055,010
Wells Fargo & Co. 34,400 1,937,408
------------
6,630,343
------------
BEVERAGES (1.8%)
PepsiCo, Inc. 33,500 1,601,970
------------
BIOTECHNOLOGY (2.8%)
Amgen, Inc.* 40,000 2,470,400
------------
CHEMICALS (1.6%)
PPG Industries, Inc. 24,000 1,383,600
------------
COMMERCIAL SERVICES & SUPPLIES (2.4%)
Avery Dennison Corp. 25,000 1,314,500
Monster Worldwide, Inc.* 30,000 764,100
------------
2,078,600
------------
COMMUNICATIONS EQUIPMENT (3.5%)
Cisco Systems, Inc.* 101,500 2,129,470
Motorola, Inc. 71,000 960,630
------------
3,090,100
------------
COMPUTERS & PERIPHERALS (4.4%)
Dell, Inc.* 41,000 1,480,920
International Business Machines Corp. 18,000 1,610,640
Seagate Technology 32,500 746,850
------------
3,838,410
------------
DIVERSIFIED FINANCIALS (7.7%)
Citigroup, Inc. 56,000 2,654,400
J.P. Morgan Chase & Co. 12,000 430,800
Merrill Lynch & Company, Inc. 34,000 2,012,800
State Street Corp. 32,400 1,696,464
------------
6,794,464
------------
DIVERSIFIED TELECOMMUNICATION SERVICES (3.4%)
BellSouth Corp. 56,000 1,473,360
Verizon Communications, Inc. 44,000 1,478,400
------------
2,951,760
------------
ELECTRICAL EQUIPMENT (1.1%)
Emerson Electric Co. 16,400 930,700
------------
</Table>
See Accompanying Notes to Financial Statements.
9
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS
FOOD & DRUG RETAILING (1.6%)
CVS Corp. 41,000 $ 1,442,380
------------
FOOD PRODUCTS (1.3%)
General Mills, Inc. 25,000 1,121,250
------------
HEALTHCARE EQUIPMENT & SUPPLIES (2.4%)
Biomet, Inc. 25,000 896,500
Medtronic, Inc. 27,000 1,230,390
------------
2,126,890
------------
HOUSEHOLD PRODUCTS (2.9%)
Colgate-Palmolive Co. 20,000 1,063,800
Procter & Gamble Co. 14,750 1,449,777
------------
2,513,577
------------
INDUSTRIAL CONGLOMERATES (3.5%)
General Electric Co. 57,900 1,679,679
Tyco International, Ltd. 67,300 1,405,224
------------
3,084,903
------------
INSURANCE (4.7%)
Chubb Corp. 25,500 1,703,655
Hartford Financial Services Group, Inc. 36,700 2,014,830
Travelers Property Casualty Corp. Class B 23,000 376,510
------------
4,094,995
------------
MEDIA (6.9%)
Clear Channel Communications, Inc. 30,000 1,224,600
EchoStar Communications Corp. Class A* 18,000 689,760
Omnicom Group, Inc. 18,200 1,452,360
Tribune Co. 19,300 946,665
Viacom, Inc. Class B 43,000 1,714,410
------------
6,027,795
------------
MULTILINE RETAIL (7.0%)
Federated Department Stores, Inc. 29,800 1,416,990
Target Corp. 50,000 1,987,000
Wal-Mart Stores, Inc. 46,000 2,711,700
------------
6,115,690
------------
OIL & GAS (5.5%)
ConocoPhillips 40,704 2,326,234
Exxon Mobil Corp. 68,000 2,487,440
------------
4,813,674
------------
PERSONAL PRODUCTS (2.4%)
Avon Products, Inc. 12,500 849,500
Estee Lauder Companies, Inc. Class A 33,700 1,260,043
------------
2,109,543
------------
</Table>
See Accompanying Notes to Financial Statements.
10
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS
PHARMACEUTICALS (9.0%)
Abbott Laboratories 40,500 $ 1,726,110
Forest Laboratories, Inc.* 16,000 800,160
Johnson & Johnson 38,000 1,912,540
Pfizer, Inc. 87,000 2,749,200
Wyeth 16,500 728,310
------------
7,916,320
------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (7.3%)
Intel Corp. 92,000 3,040,600
Maxim Integrated Products, Inc. 15,500 770,505
Micron Technology, Inc.* 32,000 458,880
Texas Instruments, Inc. 73,300 2,119,836
------------
6,389,821
------------
SOFTWARE (5.7%)
Electronic Arts, Inc.* 8,200 812,128
Microsoft Corp. 100,000 2,615,000
Symantec Corp.* 11,000 733,150
VERITAS Software Corp.* 22,000 795,300
------------
4,955,578
------------
TOTAL COMMON STOCKS (Cost $69,353,505) 87,603,559
------------
TOTAL INVESTMENTS AT VALUE (100.0%)
(Cost $69,353,505) 87,603,559
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.0%) (32,700)
------------
NET ASSETS (100.0%) $ 87,570,859
============
</Table>
- ----------
* Non-income producing security.
See Accompanying Notes to Financial Statements.
11
<Page>
CREDIT SUISSE TAX EFFICIENT FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2003
<Table>
ASSETS
Investments at value (Cost $69,353,505) (Note 1) $ 87,603,559
Cash 1,702
Receivable for investments sold 194,881
Dividends receivable 121,390
Receivable for fund shares sold 4,712
Prepaid expenses 11,826
-------------
Total Assets 87,938,070
-------------
LIABILITIES
Advisory fee payable (Note 2) 77,968
Administrative services fee payable (Note 2) 21,195
Distribution fee payable (Note 2) 33,646
Loan payable 154,000
Payable for fund shares redeemed 17,013
Trustees' fee payable 1,993
Other accrued expenses payable 61,396
-------------
Total Liabilities 367,211
-------------
NET ASSETS
Capital stock, $0.001 par value (Note 5) 6,098
Paid-in capital (Note 5) 82,941,984
Undistributed net investment income 137,817
Accumulated net realized loss on investments (13,765,094)
Net unrealized appreciation from investments 18,250,054
-------------
Net Assets $ 87,570,859
=============
COMMON SHARES
Net assets $ 756,702
Shares outstanding 51,998
-------------
Net asset value, offering price, and redemption price per share $ 14.55
=============
A SHARES
Net assets $ 64,614,914
Shares outstanding 4,434,816
-------------
Net asset value and redemption price per share $ 14.57
=============
Maximum offering price per share (net asset value/(1-5.75%)) $ 15.46
=============
B SHARES
Net assets $ 19,265,245
Shares outstanding 1,398,264
-------------
Net asset value and offering price per share $ 13.78
=============
C SHARES
Net assets $ 2,933,998
Shares outstanding 212,994
-------------
Net asset value and offering price per share $ 13.78
=============
</Table>
See Accompanying Notes to Financial Statements.
12
<Page>
STATEMENT OF OPERATIONS
For the Year Ended October 31, 2003
<Table>
INVESTMENT INCOME (Note 1)
Dividends $ 1,406,212
Interest 1,106
-------------
Total investment income 1,407,318
-------------
EXPENSES
Investment advisory fees (Note 2) 651,196
Administrative services fees (Note 2) 141,508
Distribution fees (Note 2) 390,125
Transfer agent fees (Note 2) 175,717
Legal fees 43,714
Registration fees 35,199
Printing fees (Note 2) 28,625
Audit fees 23,090
Insurance expense 10,651
Custodian fees 10,081
Trustees' fees 7,157
Interest expense 3,779
Miscellaneous expense 5,659
-------------
Total expenses 1,526,501
Less: fees waived (Note 2) (257,011)
-------------
Net expenses 1,269,490
-------------
Net investment income 137,828
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized loss from investments (1,942,030)
Net change in unrealized appreciation (depreciation) from
investments 16,398,087
-------------
Net realized and unrealized gain from investments 14,456,057
-------------
Net increase in net assets resulting from operations $ 14,593,885
=============
</Table>
See Accompanying Notes to Financial Statements.
13
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002
---------------- ----------------
FROM OPERATIONS
Net investment income $ 137,828 $ 142,577
Net realized loss from investments (1,942,030) (10,387,080)
Net change in unrealized appreciation (depreciation)
from investments 16,398,087 (13,227,307)
------------- -------------
Net increase (decrease) in net assets resulting from operations 14,593,885 (23,471,810)
------------- -------------
FROM DIVIDENDS
Dividends from net investment income
Common Class shares (1,947) --
Class A shares (140,641) --
------------- -------------
Net decrease in net assets resulting from dividends (142,588) --
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5)
Proceeds from sale of shares 2,559,897 8,194,566
Reinvestment of dividends 121,024 --
Net asset value of shares redeemed (20,465,012) (57,525,553)
------------- -------------
Net decrease in net assets from capital share transactions (17,784,091) (49,330,987)
------------- -------------
Net decrease in net assets (3,332,794) (72,802,797)
NET ASSETS
Beginning of year 90,903,653 163,706,450
------------- -------------
End of year $ 87,570,859 $ 90,903,653
============= =============
Undistributed Net Investment Income $ 137,817 $ 142,577
============= =============
</Table>
See Accompanying Notes to Financial Statements.
14
<Page>
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-------------------------------------------
2003 2002 2001 2000(1)
-------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 12.28 $ 15.14 $ 22.55 $ 22.55
-------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income (loss)(2) 0.05 0.04 0.01 (0.02)
Net gain (loss) on investments
(both realized and unrealized) 2.25 (2.90) (6.47) 0.02
-------- -------- -------- --------
Total from investment operations 2.30 (2.86) (6.46) --
-------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.03) -- -- --
Distributions from net realized gains -- -- (0.95) --
-------- -------- -------- --------
Total dividends and distributions (0.03) -- (0.95) --
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 14.55 $ 12.28 $ 15.14 $ 22.55
======== ======== ======== ========
Total return(3) 18.74% (18.89)% (29.66)% 0.00%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 757 $ 899 $ 1,395 $ 1,002
Ratio of expenses to average net assets 1.26% 1.09% 1.10% 0.27%(4)
Ratio of net investment income (loss)
to average net assets 0.36% 0.28% 0.05% (0.11)%(4)
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.30% 0.38% 0.14% --
Portfolio turnover rate 42% 19% 17% 26%
</Table>
- ----------
(1) For the period August 1, 2000 (inception date) through October 31, 2000.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(4) Annualized.
See Accompanying Notes to Financial Statements.
15
<Page>
(For a Class A 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 $ 12.30 $ 15.16 $ 22.54 $ 21.27 $ 16.52
--------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment income (loss)(1) 0.05 0.04 0.01 (0.04) (0.03)
Net gain (loss) on investments
(both realized and unrealized) 2.25 (2.90) (6.44) 2.92 5.04
--------- --------- --------- --------- ---------
Total from investment operations 2.30 (2.86) (6.43) 2.88 5.01
--------- --------- --------- --------- ---------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.03) -- -- -- --
Distributions from net realized gains -- -- (0.95) (1.61) (0.26)
--------- --------- --------- --------- ---------
Total dividends and distributions (0.03) -- (0.95) (1.61) (0.26)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF YEAR $ 14.57 $ 12.30 $ 15.16 $ 22.54 $ 21.27
========= ========= ========= ========= =========
Total return(2) 18.71% (18.87)% (29.56)% 14.39% 30.77%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 64,615 $ 65,319 $ 102,935 $ 159,945 $ 135,677
Ratio of expenses to average net assets 1.26% 1.09% 1.10% 1.14% 1.23%
Ratio of net investment income (loss)
to average net assets 0.36% 0.29% 0.04% (0.19)% (0.16)%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.30% 0.39% 0.11% -- --
Portfolio turnover rate 42% 19% 17% 26% 35%
</Table>
- ----------
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the years shown, total returns
would have been lower.
See Accompanying Notes to Financial Statements.
16
<Page>
(For a Class B 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 $ 11.69 $ 14.52 $ 21.79 $ 20.75 $ 16.25
--------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss(1) (0.05) (0.07) (0.12) (0.20) (0.17)
Net gain (loss) on investments
(both realized and unrealized) 2.14 (2.76) (6.20) 2.85 4.93
--------- --------- --------- --------- ---------
Total from investment operations 2.09 (2.83) (6.32) 2.65 4.76
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- (0.95) (1.61) (0.26)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF YEAR $ 13.78 $ 11.69 $ 14.52 $ 21.79 $ 20.75
========= ========= ========= ========= =========
Total return(2) 17.88% (19.49)% (30.10)% 13.58% 29.73%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 19,265 $ 21,490 $ 35,270 $ 50,233 $ 32,783
Ratio of expenses to average net assets 2.01% 1.84% 1.85% 1.85% 1.93%
Ratio of net investment loss
to average net assets (0.39)% (0.46)% (0.71)% (0.91)% (0.86)%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.30% 0.39% 0.11% -- --
Portfolio turnover rate 42% 19% 17% 26% 35%
</Table>
- ----------
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the years shown, total returns
would have been lower.
See Accompanying Notes to Financial Statements.
17
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-------------------------------------------
2003 2002 2001 2000(1)
-------- -------- -------- --------
PER SHARE DATA
Net asset value, beginning of period $ 11.69 $ 14.52 $ 21.79 $ 20.01
-------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment loss(2) (0.05) (0.06) (0.12) (0.17)
Net gain (loss) on investments
(both realized and unrealized) 2.14 (2.77) (6.20) 1.95
-------- -------- -------- --------
Total from investment operations 2.09 (2.83) (6.32) 1.78
-------- -------- -------- --------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- (0.95) --
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 13.78 $ 11.69 $ 14.52 $ 21.79
======== ======== ======== ========
Total return(3) 17.88% (19.49)% (30.10)% 8.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 2,934 $ 3,195 $ 4,220 $ 4,412
Ratio of expenses to average net assets 2.01% 1.84% 1.85% 1.32%(4)
Ratio of net investment loss
to average net assets (0.39)% (0.45)% (0.71)% (0.91)%(4)
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.30% 0.40% 0.11% --
Portfolio turnover rate 42% 19% 17% 26%
</Table>
- ----------
(1) For the period February 28, 2000 (inception date) through October 31, 2000.
(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) Annualized.
See Accompanying Notes to Financial Statements.
18
<Page>
CREDIT SUISSE TAX EFFICIENT FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 2003
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Credit Suisse Tax Efficient Fund (the "Fund"), a series of the Credit Suisse
Capital Funds (the "Trust"), is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as a diversified, open-end management
investment company that seeks long-term capital appreciation on an after-tax
basis. The Trust was organized under the laws of the Commonwealth of
Massachusetts as a business trust on November 26, 1985.
The Fund is authorized to offer four classes of shares: Common Class, Class
A, Class B and Class C shares. Effective December 12, 2001, Common Class shares
closed to new investments, except for reinvestments of dividends. Common Class
shareholders may continue to hold Common Class shares but may not add to their
accounts. Although no further shares can be purchased, shareholders can redeem
their Common Class shares through any available method. Effective March 21,
2002, Class D shares ceased operations. Each class of shares in the Fund
represents an equal pro rata interest in the Fund, except that they bear
different expenses which reflect the differences in the range of services
provided to them. Class A shares are sold with a front-end sales charge of up to
5.75%. Class B shares are sold subject to a contingent deferred sales charge
which declines from 4.00% to zero depending on the period of time the shares are
held. Class C shares are sold subject to a contingent deferred sales charge of
1.00% if redeemed within the first year of purchase.
A) SECURITY VALUATION -- The net asset value of the Fund is determined daily
as of the close of regular trading on the New York Stock Exchange, Inc. (the
"Exchange") on each day the Exchange is open for business. The Fund's equity
investments are valued at market value, which is generally determined using the
closing price on the exchange or market on which the security is primarily
traded at the time of valuation (the "Valuation Time"). If no sales are
reported, equity investments are generally valued at the most recent bid
quotation as of the Valuation Time or at the lowest asked quotation in the case
of a short sale of securities. Debt securities with a remaining maturity greater
than 60 days are valued in accordance with the price supplied by a pricing
service, which may use a matrix, formula or other objective method that takes
into consideration market indices, yield curves and other specific adjustments.
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 under procedures established by the Board of Trustees. Debt obligations
that will mature in 60 days or less are valued on the basis of amortized cost,
which approximates market value, unless it is determined that using this method
would not represent fair value.
19
<Page>
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date. Certain expenses are
class specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon the relative net asset value
of outstanding shares of that class. The cost of investments sold is determined
by use of the specific identification method for both financial reporting and
income tax purposes.
C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income and distributions of net realized capital gains, if any, are
declared and paid at least annually. However, to the extent that a net realized
capital gain can be reduced by a capital loss carryforward, such gain will not
be distributed. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from accounting
principles generally accepted in the United States of America ("GAAP").
D) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is
the Fund's intention to 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.
E) USE OF ESTIMATES -- The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from these estimates.
F) SHORT-TERM INVESTMENTS -- The Fund, together with other funds/portfolios
advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect,
wholly-owned subsidiary of Credit Suisse Group, pools available cash into either
a short-term variable time deposit issued by State Street Bank and Trust Company
("SSB"), the Fund's custodian, or a money market fund advised by CSAM. The
short-term time deposit issued by SSB is a variable rate account classified as a
short-term investment.
20
<Page>
G) SECURITIES LENDING -- Loans of securities are required at all times to be
secured by collateral at least equal to 102% of the market value of domestic
securities on loan including any accrued interest thereon and 105% of the market
value of foreign securities on loan including any accrued interest thereon. Cash
collateral received by the Fund in connection with securities lending activity
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 Fund had no securities out on loan at
October 31, 2003.
Credit Suisse First Boston ("CSFB"), an affiliate of CSAM, has been engaged by
the Fund to act as the Fund's securities lending agent. Prior to April 1, 2003,
CSFB had agreed to charge the Fund fees for its securities lending activities
equal to its costs in providing services as securities lending agent and had
voluntarily waived such fees through March 31, 2003. Effective April 1, 2003,
the Fund and CSFB entered into an arrangement to share the income earned from
securities lending activities, whereby, generally, the 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
the Fund shall be reduced to such lower fee amount. There was no income from
securities lending for the year ended October 31, 2003.
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for the Fund. For its investment advisory
services, CSAM is entitled to receive a fee from the Fund based on the following
fee schedule:
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ -----------
First $100 million 0.75% of average daily net assets
Over $100 million 0.50% of average daily net assets
</Table>
For the year ended October 31, 2003, investment advisory fees earned and
voluntarily waived were $651,196 and $257,011, respectively.
21
<Page>
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as co-administrators to the Fund.
For its co-administrative services, CSAMSI currently receives a fee
calculated at an annual rate of 0.10% of the Fund's average daily net assets.
For the year ended October 31, 2003, co-administrative services fees earned by
CSAMSI were $86,826.
For its co-administrative services, SSB receives a fee, exclusive of
out-of-pocket expenses, based upon the following fee schedule calculated in
total for all the Credit Suisse funds/portfolios co-administered by SSB and
allocated based upon relative average net assets of each fund/portfolio, subject
to an annual minimum fee.
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ -----------
First $5 billion 0.050% of average daily net assets
Next $5 billion 0.035% of average daily net assets
Over $10 billion 0.020% of average daily net assets
</Table>
For the year ended October 31, 2003, co-administrative services fees earned
by SSB (including out-of-pocket expenses) were $54,682.
In addition to serving as the Fund's co-administrator, CSAMSI currently
serves as distributor of the Fund's shares. Pursuant to distribution plans
adopted by the Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. These fees are calculated at an annual rate
of 0.25% of the average daily net assets of the Common Class shares and Class A
shares of the Fund. For the Class B and Class C shares of the Fund, the fees are
calculated at an annual rate of 1.00% of average daily net assets. Effective
November 1, 2003, CSAMSI no longer receives 12b-1 fees on Common Class Shares.
For the year ended October 31, 2003, distribution fees paid to CSAMSI were as
follows:
<Table>
<Caption>
DISTRIBUTION FEE
----------------
Common Class $ 1,979
Class A 157,404
Class B 200,977
Class C 29,765
---------
$ 390,125
=========
</Table>
Certain brokers, dealers and financial representatives provide transfer agent
related services to the Fund, and receive compensation for these services from
CSAM. CSAM is then reimbursed by the Fund. For the year ended October 31, 2003,
the Fund reimbursed CSAM $3,056, which is included in the Fund's transfer agent
expense.
22
<Page>
For the year ended October 31, 2003, CSAMSI and its affiliates advised the
Fund that they retained $15,291 from commissions earned on the sales of the
Fund's Class A shares.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Fund to provide certain financial printing and fulfillment services. For the
year ended October 31, 2003, Merrill was paid $33,857 for its services to the
Fund.
NOTE 3. LINE OF CREDIT
The Fund, together with other funds/portfolios advised by CSAM (collectively,
the "Participating Funds"), participates 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 Fund
had a loan outstanding under the Credit Facility of $154,000. During the year
ended October 31, 2003, the Fund had borrowings under the Credit Facility as
follows:
<Table>
<Caption>
AVERAGE DAILY WEIGHTED AVERAGE MAXIMUM DAILY
LOAN BALANCE INTEREST RATE % LOAN OUTSTANDING
------------- ---------------- ----------------
$ 388,800 1.588% $ 1,374,000
</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 $35,929,237 and $53,469,205,
respectively.
NOTE 5. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue an unlimited number of full and fractional
shares of beneficial interest, $.001 par value per share, of which an unlimited
number of shares are classified as the Common Class shares, Class A shares,
23
<Page>
Class B shares, and Class C shares. Transactions in capital shares for each
class of the Fund were as follows:
<Table>
<Caption>
COMMON CLASS
-----------------------------------------------------------------------
FOR THE YEAR ENDED
-----------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
-----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 40 $ 505 29,164 $ 473,793
Shares issued in reinvestment
of dividends 147 1,860 -- --
Shares redeemed (21,358) (268,450) (48,090) (689,981)
-------------- -------------- -------------- --------------
Net decrease (21,171) $ (266,085) (18,926) $ (216,188)
============== ============== ============== ==============
<Caption>
CLASS A
-----------------------------------------------------------------------
FOR THE YEAR ENDED
-----------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
-----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 173,421 $ 2,134,433 204,856 $ 2,742,660
Shares issued in reinvestment
of dividends 9,415 119,164 -- --
Shares redeemed (1,060,493) (13,576,157) (1,680,530) (23,172,404)
-------------- -------------- -------------- --------------
Net decrease (877,657) $ (11,322,560) (1,475,674) $ (20,429,744)
============== ============== ============== ==============
<Caption>
CLASS B
-----------------------------------------------------------------------
FOR THE YEAR ENDED
-----------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
-----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 32,569 $ 401,177 121,941 $ 1,868,259
Shares redeemed (472,715) (5,856,909) (711,742) (9,536,588)
-------------- -------------- -------------- --------------
Net decrease (440,146) $ (5,455,732) (589,801) $ (7,668,329)
============== ============== ============== ==============
<Caption>
CLASS C
-----------------------------------------------------------------------
FOR THE YEAR ENDED
-----------------------------------------------------------------------
OCTOBER 31, 2003 OCTOBER 31, 2002
-----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 2,004 $ 23,782 96,550 $ 1,424,556
Shares redeemed (62,419) (763,496) (113,756) (1,664,618)
-------------- -------------- -------------- --------------
Net decrease (60,415) $ (739,714) (17,206) $ (240,062)
============== ============== ============== ==============
<Caption>
CLASS D
---------------------------------
FOR THE YEAR ENDED
OCTOBER 31, 2002(1)
---------------------------------
SHARES VALUE
-------------- --------------
Shares sold 103,477 $ 1,685,298
Shares redeemed (1,407,894) (22,461,962)
-------------- --------------
Net decrease (1,304,417) $ (20,776,664)
============== ==============
</Table>
- ----------
(1) Class D ceased operations on March 21, 2002.
24
<Page>
On October 31, 2003, the number of shareholders that held 5% or more of the
outstanding shares of each class of the Fund were as follows:
<Table>
<Caption>
NUMBER OF APPROXIMATE PERCENTAGE
SHAREHOLDERS OF OUTSTANDING SHARES
------------ ----------------------
Common Class 1 7%
Class C 2 12%
</Table>
Some of the shareholders are omnibus accounts, which hold shares on behalf of
individual shareholders.
NOTE 6. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP.
The tax characteristics of dividends paid during the year ended October 31,
2003 and 2002, respectively, by the Fund were as follows:
<Table>
<Caption>
ORDINARY INCOME
----------------------------
2003 2002
--------- --------
$ 142,588 $ --
</Table>
At October 31, 2003, the components of distributable earnings on a tax basis
for the Fund were as follows:
<Table>
Undistributed ordinary income $ 137,817
Accumulated net realized loss (13,765,094)
Unrealized appreciation 18,250,054
-------------
$ 4,622,777
=============
</Table>
At October 31, 2003, the Fund had capital loss carryforwards available to
offset possible future capital gains as follows:
<Table>
<Caption>
EXPIRES OCTOBER 31,
--------------------------------------------------------------
2009 2010 2011
----------- ------------ -----------
$ 1,435,984 $ 10,387,080 $ 1,942,030
</Table>
At 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 $69,353,505,
$21,389,883, $(3,139,829) and $18,250,054, respectively.
25
<Page>
NOTE 7. PROPOSED REORGANIZATION
On August 12, 2003, the Fund's Board of Trustees approved, subject to
shareholder approval, a proposed reorganization (the "Reorganization") whereby
all of the Fund's assets and liabilities would be transferred to Credit Suisse
Select Equity Fund (the "Acquiring Fund") in exchange for shares of the Fund.
The Fund would then be liquidated and shares of the Acquiring Fund would be
distributed to the Fund's shareholders.
If the Reorganization is completed, each shareholder of the Fund would become
a shareholder of the Acquiring Fund and would receive on a tax-free basis shares
of the Acquiring Fund with the same aggregate net asset value as their shares of
beneficial interest of the Fund. The Reorganization is subject to the completion
of certain conditions, including the approval of the Fund's shareholders.
NOTE 8. SUBSEQUENT EVENT
On December 19, 2003, the Fund's shareholders approved the Reorganization of
the Fund into the Acquiring Fund. The transfer of the Fund's assets and
liabilities to the Acquiring Fund in exchange for shares of the Acquiring Fund
is scheduled to take place on January 9, 2004. On that date, the Fund will be
liquidated and shares of the Acquiring Fund will be distributed to the Fund's
shareholders.
NOTE 9. CONTINGENCIES
In the normal course of business, the Fund may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Fund's maximum exposure under these arrangements is dependent on future claims
that may be made against the Fund and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
26
<Page>
CREDIT SUISSE TAX EFFICIENT FUND
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees and Shareholders of
Credit Suisse Tax Efficient Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Credit Suisse Tax Efficient Fund
(formally known as Credit Suisse Blue Chip Fund) (a series of Credit Suisse
Capital Funds) (the "Fund") at October 31, 2003, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended and the financial highlights for each of the three
years in the period ended October 31, 2003, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with 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
broker, provide a reasonable basis for our opinion. The financial highlights of
the Fund for each of the periods presented in the period ended October 31, 2000
were audited by other independent auditors, whose report dated December 20, 2000
expressed an unqualified opinion on those statements.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 23, 2003
27
<Page>
CREDIT SUISSE TAX EFFICIENT FUND
INFORMATION CONCERNING TRUSTEES AND OFFICERS (UNAUDITED)
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUNDS SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------ ----------- ------------ -------------------- ------------- ---------------
INDEPENDENT TRUSTEES
Richard H. Francis Trustee, Since 2001 Currently retired 44 None
c/o Credit Suisse Asset Nominating
Management, LLC and Audit
466 Lexington Avenue Committee
New York, New York Member
10017-3140
Date of Birth: 04/23/32
Jeffrey E. Garten Trustee, Since 2001 Dean of Yale 43 Director of
Box 208200 Nominating School of Aetna, Inc.
New Haven, Connecticut and Audit Management and (insurance
06520-8200 Committee William S. Beinecke company);
Member Professor in the Director of
Date of Birth: 10/29/46 Practice of Calpine
International Trade Corporation
and Finance (energy
(11/95 -- present) provider);
Director of
CarMax Group
(used car
dealers)
Peter F. Krogh Trustee, Since 2001 Dean Emeritus and 43 Director of
301 ICC Georgetown Nominating Distinguished Carlisle
University and Audit Professor of Companies
Washington, DC 20057 Committee International Incorporated
Member Affairs at the (diversified
Date of Birth: 02/11/37 Edmund A. Walsh manufacturing
School of Foreign company);
Service, Georgetown Member of
University Selection
(6/95 -- present); Committee for
Moderator of Truman
PBS foreign affairs Scholars and
television series Henry Luce
(1988 -- 2000) Scholars; Senior
Associate of
Center for
Strategic and
International
Studies; Trustee
of numerous
world affairs
organizations
</Table>
- ----------
(1) Each Trustee and Officer serves until his or her respective successor has
been duly elected and qualified.
28
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUNDS SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------ ----------- ------------ -------------------- ------------- ---------------
INDEPENDENT TRUSTEES
James S. Pasman, Jr. Trustee, Since 2001 Currently retired 45 Director of
c/o Credit Suisse Asset Nominating Education
Management, LLC and Audit Management
466 Lexington Avenue Committee Corp.
New York, New York Member
10017-3140
Date of Birth: 12/20/30
Steven N. Rappaport Trustee, Since 2001 Partner of Lehigh 45 None
Lehigh Court, LLC Nominating Court, LLC and RZ
40 East 52nd Street Committee Capital (private
New York, New York Member and investment firms)
10022 Audit (7/02 -- present);
Committee Consultant to
Date of Birth: 07/10/48 Chairman SunGard Securities
Finance, Inc. from
February 2002 to
July 2002; President
of SunGard
Securities Finance,
Inc. from 2001 to
February 2002;
President of Loanet,
Inc. (on-line
accounting service)
from 1997 to 2001
</Table>
29
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS
DATE OF BIRTH FUNDS SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ------------------------ ----------- ------------ -------------------- ------------- ---------------
INTERESTED TRUSTEES
Joseph D. Gallagher(2) Trustee, Since 2003 Managing Director 46 None
Credit Suisse Asset Chairman of and Chief Executive
Management, LLC the Board Officer of CSAM
466 Lexington Avenue and Chief since 2003; Global
New York, New York Executive Chief Financial
10017-3140 Officer Officer, Credit
Suisse Asset
Date of Birth: 12/14/62 Management since
1999; Chief
Executive 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
William W. Priest, Jr.(3) Trustee Since 2001 Co-Managing Partner, 50 Director of Globe
Steinberg Priest & Sloane Steinberg Priest & Wireless, LLC
Capital Management, LLC Sloane Capital (maritime
12 East 49th Street Management, LLC communications
12th Floor since March 2001; company); Director
New York, New York Chairman and of InfraRed X
10017 Managing Director (medical device
of CSAM from 2000 company)
Date of Birth: 09/24/41 to February 2001,
Chief Executive
Officer and Managing
Director of CSAM
from 1990 to 2000
</Table>
- ----------
(2) Mr. Gallagher is a Trustee who is an "interested person" of the Fund as
defined in the 1940 Act, because he is an officer of CSAM.
(3) Mr. Priest is a 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).
30
<Page>
<Table>
<Caption>
TERM
OF OFFICE(1)
AND
POSITION(S) LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH FUNDS SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ----------------------- ----------- ------------ ----------------------------------------------
OFFICERS
Hal Liebes Vice Since 1999 Managing Director and Global General Counsel of CSAM; Associated
Credit Suisse Asset President and with CSAM since 1997; Officer of other Credit Suisse Funds
Management, LLC Secretary
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 07/06/64
Michael A. Pignataro Chief Since 1999 Director and Director of Fund Administration of CSAM; Associated
Credit Suisse Asset Financial with CSAM since 1984; Officer of other Credit Suisse Funds
Management, LLC Officer and
466 Lexington Avenue Treasurer
New York, New York
10017-3140
Date of Birth: 11/15/59
Gregory N. Bressler Assistant Since 2000 Director and Deputy General Counsel of CSAM; Associated with CSAM
Credit Suisse Asset Secretary since January 2000; Associated with the law firm of Swidler Berlin
Management, LLC Shereff Friedman LLP from 1996 to 2000; Officer of other Credit
466 Lexington Avenue Suisse Funds
New York, New York
10017-3140
Date of Birth: 11/17/66
Rocco A. Del Guercio Assistant Since 1999 Vice President of CSAM; Associated with CSAM since June 1996;
Credit Suisse Asset Treasurer Officer of other Credit Suisse Funds
Management, LLC
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 04/28/63
Joseph Parascondola Assistant Since 2000 Assistant Vice President of CSAM; Associated with CSAM since April
Credit Suisse Asset Treasurer 2000; Assistant Vice President, Deutsche Asset Management from
Management, LLC January 1999 to April 2000; Assistant Vice President, Weiss, Peck
466 Lexington Avenue & Greer LLC from November 1995 to December 1998; Officer of other
New York, New York Credit Suisse Funds
10017-3140
Date of Birth: 06/05/63
</Table>
31
<Page>
<Table>
<Caption>
TERM
OF OFFICE(1)
AND
POSITION(S) LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH FUNDS SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ----------------------- ----------- ------------ ----------------------------------------------
OFFICERS
Robert M. Rizza Assistant Since 2002 Assistant Vice President of CSAM; Associated with CSAM since 1998;
Credit Suisse Asset Treasurer Officer of other Credit Suisse Funds
Management, LLC
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 Trustees and is available, without charge, upon request, by calling
800-927-2874.
32
<Page>
CREDIT SUISSE TAX EFFICIENT FUND
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 Fund's investment income (I.E., net investment income plus
short-term capital gains) that qualified for the intercorporate dividends
received deduction is 100.00%.
For the fiscal year ended October 31, 2003 certain dividends paid by the Fund
may be subject to a maximum tax rate of 15%, as provided for by the Jobs and
Growth Tax Relief Reconciliation Act of 2003. Complete information will be
reported in conjunction with your 2003 Form 1099-DIV.
33
<Page>
P.O. BOX 55030, BOSTON, MA 02205-5030
800-927-2874 - www.csam-americas.com
[CREDIT SUISSE ASSET MANAGEMENT LOGO]
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. CSTXE-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.
<Page>
(a)(1) The registrant's code of ethics is an exhibit to this report.
(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
(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 FUNDS
/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