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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. 811-05041
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CREDIT SUISSE CAPITAL APPRECIATION FUND
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(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
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(Address of Principal Executive Offices) (Zip Code)
Hal Liebes, Esq.
Credit Suisse Capital Appreciation Fund
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code:(212) 875-3500
Date of fiscal year end: October 31, 2004
Date of reporting period: November 1, 2003 to April 30, 2004
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ITEM 1. REPORTS TO STOCKHOLDERS.
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[CREDIT SUISSE ASSET MANAGEMENT LOGO]
CREDIT SUISSE FUNDS
SEMIANNUAL REPORT
APRIL 30, 2004
(UNAUDITED)
- - CREDIT SUISSE
CAPITAL APPRECIATION FUND
- - CREDIT SUISSE
MID-CAP GROWTH FUND
- - CREDIT SUISSE
SMALL CAP GROWTH FUND
- - CREDIT SUISSE
STRATEGIC SMALL CAP FUND
THE FUNDS' INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES (WHICH SHOULD BE
CONSIDERED CAREFULLY BEFORE INVESTING), AND MORE COMPLETE INFORMATION ABOUT THE
THE FUNDS ARE PROVIDED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE
INVESTING. YOU MAY OBTAIN ADDITIONAL COPIES BY CALLING 800-927-2874 OR BY 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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INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD BE AWARE THAT THEY MAY BE ELIGIBLE
TO PURCHASE COMMON CLASS AND/OR ADVISOR CLASS SHARES (WHERE OFFERED) DIRECTLY OR
THROUGH CERTAIN INTERMEDIARIES. SUCH SHARES ARE NOT SUBJECT TO A SALES CHARGE
BUT MAY BE SUBJECT TO AN ONGOING SERVICE AND DISTRIBUTION FEE OF UP TO 0.50% OF
AVERAGE DAILY NET ASSETS. INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD ALSO BE
AWARE THAT THEY MAY BE ELIGIBLE FOR A REDUCTION OR WAIVER OF THE SALES CHARGE
WITH RESPECT TO CLASS A, B OR C SHARES. FOR MORE INFORMATION, PLEASE REVIEW THE
RELEVANT PROSPECTUSES OR CONSULT YOUR FINANCIAL REPRESENTATIVE.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND FUND
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF APRIL 30, 2004; THESE VIEWS AND
FUND HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS
DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
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CREDIT SUISSE CAPITAL APPRECIATION FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT
April 30, 2004 (unaudited)
May 18, 2004
Dear Shareholder:
For the six months ended April 30, 2004, the Common Class and Advisor Class
shares of Credit Suisse Capital Appreciation Fund (the "Fund") had gains of
3.86% and 3.58%, respectively, versus an increase of 4.14% for the Russell
1000(R) Growth Index.(1) The Fund's Class A Shares (without sales charge), Class
B Shares (without contingent deferred sales charge) and Class C Shares (without
contingent deferred sales charge) had gains of 3.75%(2), 3.32%(2) and 3.32%(2),
respectively, for the period.
The period was a mostly positive one for the U.S. stock market, though stocks
became increasingly volatile. In general, the market was aided by optimism that
a reviving U.S. economy would lead to better corporate earnings results in due
course. In fact, earnings reported late in the period exceeded expectations in
many cases. The period ended on an uncertain note in the stock market. While the
economic news remained generally good, inflation pressures appeared to be
building. The Federal Reserve hinted that rate hikes could therefore come sooner
rather than later, and stocks gave back some gains in March and April.
The Fund slightly trailed its benchmark for the period; the underperformance
occurred in the period's first half, in part due to the Fund's underweighting or
avoidance of certain higher-risk stocks (e.g., stocks of companies with low or
no earnings), as such stocks initially rallied on expectations that an improving
economy would benefit them the most. However, these types of stocks
underperformed over the February-through-April span, a period in which the
Fund's relative performance improved. From a sector perspective, its healthcare,
consumer discretionary and transportation stocks aided its performance, while
the Fund's consumer staples, producer durables, and technology holdings hampered
return.
In terms of sector allocation, which results from our bottom-up
stock-selection process, we maintained a significant overweight in the consumer
discretionary area, where our adjustments included establishing a position in a
food/beverage retail chain exhibiting solid growth in the U.S. and abroad.
Within the media subsector, which we also continued to overweight, we shifted a
little more toward "new media" companies. We believe that these companies have
the potential for strong growth rates as advertisers allocate more dollars to
Internet ad campaigns over time.
Elsewhere of note, we remained underweight in the consumer staples sector,
where we continue to see relatively few compelling growth stories. We became
1
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somewhat more underweighted in technology, paring exposure to certain names
based on valuations and company growth prospects. We also became a little more
underweighted in financial services, where we sold an asset management stock
that had become richly valued in the wake of good performance. However, we
continued to see opportunities in the sector as well. We established a position
in an outsourcing services company that we believe stands to benefit from an
improving labor market. We continued to slightly overweight the producer
durables sector, reflecting our view that the group is well leveraged to an
expanding economy and a recovery in industrial America.
Our investment process remains bottom-up and focused on stock selection. We
continue to look for companies we think are leveraged to benefit from an
improving economy along with companies leveraged to secularly improving
businesses.
Jeffrey T. Rose Marian U. Pardo
Co-Portfolio Manager Co-Portfolio Manager
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
2
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AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2004
<Table>
<Caption>
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 29.41% (3.01)% 10.29% 9.69% 08/17/87
Advisor Class 28.62% (3.49)% 9.76% 9.48% 04/04/91
Class A Without
Sales Charge 29.09% -- -- (5.90)% 11/30/01
Class A With Maximum
Sales Charge 21.64% -- -- (8.25)% 11/30/01
Class B Without CDSC 28.00% -- -- (6.61)% 11/30/01
Class B With CDSC 24.00% -- -- (7.41)% 11/30/01
Class C Without CDSC 28.11% -- -- (6.61)% 11/30/01
Class C With CDSC 27.11% -- -- (6.61)% 11/30/01
</Table>
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004
<Table>
<Caption>
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 20.35% (3.41)% 10.21% 9.57% 08/17/87
Advisor Class 19.72% (3.89)% 9.67% 9.33% 04/04/91
Class A Without
Sales Charge 20.02% -- -- (6.13)% 11/30/01
Class A With Maximum
Sales Charge 13.15% -- -- (8.40)% 11/30/01
Class B Without CDSC 19.12% -- -- (6.85)% 11/30/01
Class B With CDSC 15.12% -- -- (7.63)% 11/30/01
Class C Without CDSC 19.12% -- -- (6.85)% 11/30/01
Class C With CDSC 18.12% -- -- (6.85)% 11/30/01
</Table>
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 REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE
FUTURE RESULTS. DUE TO MARKET VOLATILITY, THE PERFORMANCE OF THE FUNDS MAY BE
LOWER OR HIGHER THAN THE FIGURES SHOWN. RETURNS AND SHARE PRICE WILL FLUCTUATE,
AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. THE PERFORMANCE
RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT www.csam.com/us.
- ----------
(1) The Russell 1000(R) Growth Index measures the performance of those
companies in the Russell 1000(R) Index with higher price-to-book ratios and
higher forecasted growth values. It is an unmanaged index of common stocks
that includes reinvestment of dividends and is compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(2) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was -2.25%. Total return for
Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was -0.68%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 2.32%.
3
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CREDIT SUISSE MID-CAP GROWTH FUND
(NAME CHANGED FROM CREDIT SUISSE EMERGING GROWTH FUND ON MAY 1, 2004)
SEMIANNUAL INVESTMENT ADVISER'S REPORT
April 30, 2004 (unaudited)
May 18, 2004
Dear Shareholder:
For the six months ended April 30, 2004, the Common Class and Advisor Class
Shares of Credit Suisse Mid-Cap Growth Fund(1) (the "Fund") had gains of 5.30%
and 5.05%, respectively, versus increases of 4.56% for the Russell 2500(TM)
Growth Index(2) and 5.75% for the Russell Midcap(R) Growth Index.(3) The Fund's
Class A Shares (without sales charge) had a gain of 5.19%(4) for the same
period.
The period was a mostly positive one for the U.S. stock market, though stocks
became increasingly volatile. In general, the market was aided by optimism that
a reviving U.S. economy would lead to better corporate earnings results in due
course. In fact, earnings reported late in the period exceeded expectations in
many cases. The period ended on an uncertain note in the stock market. While the
economic news remained generally good, inflation pressures appeared to be
building. The Federal Reserve hinted that rate hikes could therefore come sooner
rather than later, and stocks gave back some gains in April.
The Fund performed roughly in line with its benchmarks. Stocks that aided the
Fund's relative return included its financial services, consumer discretionary
and materials holdings. On the negative side, the Fund's technology and
producer-durables stocks detracted from its performance.
Through our bottom-up investment process, healthcare remained the Fund's
largest sector allocation and overweight (the Fund's sector allocation results
from our bottom-up stock selection process). However, we trimmed or eliminated
positions in certain healthcare services names in the latter half of the period,
based on valuations and our belief that premium growth is likely to flatten
going forward. In the biotechnology area, we continued to focus on companies
with FDA-approved products. We aim to avoid the excessive downside risk
associated with companies that have only "in development" products.
In terms of other noteworthy recent portfolio activity, in the financial area
we established a position in a company that offers online services, including
retail and institutional brokerage accounts. We have a favorable outlook on the
company's earnings potential, based on its recent cost-cutting efforts combined
with rising transaction volumes in financial markets. We view the stock as
reasonably valued from both a price/earnings and price/book perspective.
4
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Another recent addition, in the consumer discretionary sector, is a company
offering post-secondary education services. Our thesis is that demand for these
services should grow as working adults seek to either shift careers or further
existing careers. On the sell side, one stock we eliminated was an
office-products retail chain, based on our concerns that an anticipated company
turnaround was slow in developing, due in part to several management departures.
Going forward, while our general view on the U.S. economy and corporate
profits is positive, we believe that market volatility could remain high for a
spell, with stocks vulnerable to interest rate worries and the ever-present
threat of geopolitical tensions. Still, on a company specific basis, we also
believe that good opportunities exist in a variety of sectors, and we will
remain focused on companies we deem to be well-managed companies with healthy
finances and compelling long-term business models.
The Credit Suisse Small/Mid-Cap Growth Team
Marion U. Pardo
Leo M. Bernstein
Calvin E. Chung
INVESTING IN THE FUND ENTAILS SPECIAL RISK CONSIDERATIONS, SUCH AS INVESTING
IN THE SECURITIES OF START-UP COMPANIES OR COMPANIES INVOLVED IN "SPECIAL
SITUATIONS."
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
5
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AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2004
<Table>
<Caption>
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 57.42% 1.48% 8.30% 11.21% 01/21/88
Advisor Class 56.62% 0.97% 7.78% 9.99% 04/04/91
Class A Without Sales Charge 57.07% -- -- 5.79% 11/30/01
Class A With Maximum
Sales Charge 48.02% -- -- 3.14% 11/30/01
Class B Without CDSC -- -- -- 1.55%(5) 02/27/04
Class B With CDSC -- -- -- (2.45)%(5) 02/27/04
Class C Without CDSC -- -- -- 1.58%(5) 02/27/04
Class C With CDSC -- -- -- 0.58%(5) 02/27/04
</Table>
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004
<Table>
<Caption>
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
------ ------- -------- --------- ---------
Common Class 38.97% 0.37% 7.89% 10.77% 01/21/88
Advisor Class 38.27% (0.14)% 7.38% 9.45% 04/04/91
Class A Without Sales Charge 38.65% -- -- 3.22% 11/30/01
Class A With Maximum
Sales Charge 30.69% -- -- 0.72% 11/30/01
Class B Without CDSC -- -- -- (3.95)%(5) 02/27/04
Class B With CDSC -- -- -- (7.79)%(5) 02/27/04
Class C Without CDSC -- -- -- (3.88)%(5) 02/27/04
Class C With CDSC -- -- -- (4.84)%(5) 02/27/04
</Table>
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 REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE
FUTURE RESULTS. DUE TO MARKET VOLATILITY, THE PERFORMANCE OF THE FUNDS MAY BE
LOWER OR HIGHER THAN THE FIGURES SHOWN. RETURNS AND SHARE PRICE WILL FLUCTUATE,
AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. THE PERFORMANCE
RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT www.csam.com/us.
- ----------
(1) Effective May 1, 2004 the Fund changed its name from Credit Suisse Emerging
Growth Fund to Credit Suisse Mid-Cap Growth Fund.
(2) The Russell 2500(TM) Growth Index measures the performance of those
companies in the Russell 2500(TM) Index with higher price-to-book ratios
and higher forecasted growth values. It is an unmanaged index of common
stocks that includes reinvestment of dividends and is compiled by Frank
Russell Company. Investors cannot invest directly in a an index.
(3) The Russell Midcap(R) Growth Index measures the performance of those
companies in the Russell Midcap(R) Index with higher price-to-book ratios
and higher forecasted growth values. The stocks are also members of the
Russell 1000(R) Growth Index. It is an unmanaged index of common stocks
that includes reinvestment of dividends and compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(4) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was -0.85%. Total return for
Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was -7.79%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was -4.84%.
(5) Returns for periods less than one year are not annualized.
6
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CREDIT SUISSE SMALL CAP GROWTH FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT
April 30, 2004 (unaudited)
May 18, 2004
Dear Shareholder:
For the six months ended April 30, 2004, the Common Class Shares of Credit
Suisse Small Cap Growth Fund(1) (the "Fund") had a gain of 4.74%, versus an
increase of 4.02% for the Russell 2000(R) Growth Index.(2) The Fund's Class A
Shares (without sales charge) also had a gain of 4.74%(3) for the period.
The period was a mostly positive one for the U.S. stock market, though stocks
became increasingly volatile. In general, the market was aided by optimism that
a reviving U.S. economy would lead to better corporate earnings results in due
course. In fact, earnings reported late in the period exceeded expectations in
many cases. The period ended on an uncertain note in the stock market. While the
economic news remained generally good, inflation pressures appeared to be
building. The Federal Reserve hinted that rate hikes could therefore come sooner
rather than later, and small cap stocks gave back some gains in April.
The Fund outperformed its benchmark, due to good stock selection in the
consumer discretionary, healthcare and energy sectors. The Fund's overweighting
in energy was an additional positive, as the sector was a strong performer amid
rising energy prices.
As a result of our bottom up investment approach, the Fund remained
well-diversified by sector, with overweightings in the consumer discretionary
and energy sectors as of the end of the period, along with a modest
underweighting in healthcare and financial services areas. With respect to
noteworthy recent portfolio activity, new purchases included a company that
provides physical intellectual property components for the design and
manufacture of complex integrated circuits. The company offers libraries that
facilitate semiconductor design, demand for which could increase as leading edge
technologies become more expensive to develop. We also added to a video game
manufacturer whose products are entering a favorable cycle in our view. On the
sell side, our activity included eliminating certain technology, energy and
healthcare stocks based on valuations, in the wake of strong performance.
Going forward, while our general view on the U.S. economy and corporate
profits is positive, we believe that market volatility could remain high for a
spell, with stocks vulnerable to interest-rate worries and the ever-present
threat of geopolitical tensions. Still, on a company-specific basis, we also
believe that good opportunities exist in a variety of sectors, and we will
remain focused on companies we deem to be well-managed companies with healthy
finances and compelling long-term business models.
7
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The Credit Suisse Small/Mid-Cap Growth Team
Marian U. Pardo
Leo M. Bernstein
Calvin E. Chung
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.
8
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AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2004(1)
<Table>
<Caption>
SINCE INCEPTION
1 YEAR 5 YEARS INCEPTION DATE
------ ------- --------- ---------
Common Class 63.39% 10.81% 10.69% 12/31/96
Advisor Class -- -- 2.39%(4) 02/27/04
Class A Without Sales Charge 63.31% -- 7.81% 11/30/01
Class A With Maximum Sales Charge 53.94% -- 5.11% 11/30/01
Class B Without CDSC -- -- 2.34%(4) 02/27/04
Class B With CDSC -- -- (1.66)%(4) 02/27/04
Class C Without CDSC -- -- 2.34%(4) 02/27/04
Class C With CDSC -- -- 1.34%(4) 02/27/04
</Table>
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004(1)
<Table>
<Caption>
SINCE INCEPTION
1 YEAR 5 YEARS INCEPTION DATE
------ ------- --------- ---------
Common Class 43.50% 8.70% 9.70% 12/31/96
Advisor Class -- -- (3.36)%(4) 02/27/04
Class A Without Sales Charge 43.61% -- 5.01% 11/30/01
Class A With Maximum Sales Charge 35.33% -- 2.47% 11/30/01
Class B Without CDSC -- -- (3.46)%(4) 02/27/04
Class B With CDSC -- -- (7.32)%(4) 02/27/04
Class C Without CDSC -- -- (3.46)%(4) 02/27/04
Class C With CDSC -- -- (4.43)%(4) 02/27/04
</Table>
RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE
FUTURE RESULTS. DUE TO MARKET VOLATILITY, THE PERFORMANCE OF THE FUNDS MAY BE
LOWER OR HIGHER THAN THE FIGURES SHOWN. RETURNS AND SHARE PRICE WILL FLUCTUATE,
AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. THE PERFORMANCE
RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT www.csam.com/us.
- ----------
(1) Fee waivers and/or expense reimbursements reduced expenses for the Fund,
without which performance would be lower. Waivers and/or reimbursements may
be discontinued at any time.
(2) The Russell 2000(R) Growth Index measures the performance of those
companies in the Russell 2000(R) Index with higher price-to-book ratios and
higher forecasted growth values. It is an unmanaged index of common stocks
that includes reinvestment of dividends and is compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(3) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was -1.30%. Total return for
Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was -7.32%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was -4.43%.
(4) Returns for periods less than one year are not annualized.
9
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CREDIT SUISSE STRATEGIC SMALL CAP FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT
April 30, 2004 (unaudited)
May 18, 2004
Dear Shareholder:
For the six months ended April 30, 2004, the Class A Shares (without sales
charge) of Credit Suisse Strategic Small Cap Fund(1) (the "Fund") had a gain of
8.23%(3), versus an increase of 6.55% for the Russell 2000(R) Index.(2) The
Fund's Class B Shares (without contingent deferred sales charge) and Class C
Shares (without contingent deferred sales charge) both had gains of 7.87%(3) for
the same period.
The period was a mostly positive one for the U.S. stock market, though stocks
became increasingly volatile. In general, the market was aided by optimism that
a reviving U.S. economy would lead to better corporate earnings results in due
course. In fact, earnings reported late in the period exceeded expectations in
many cases. The period ended on an uncertain note in the stock market. While the
economic news remained generally good, inflation pressures appeared to be
building. The Federal Reserve hinted that rate hikes could therefore come sooner
rather than later, and small cap stocks gave back some gains in April.
The Fund outperformed its benchmark for the period, aided primarily by good
stock selection in the healthcare, consumer discretionary, energy and financial
services sectors. And while the Fund's technology stocks performed in line with
its benchmark's technology names, the Fund's overweighting in the sector, which
struggled, detracted from its performance.
With regard to recent portfolio activity, stocks we purchased late in the
period included a company that offers one of the fastest growing search sites in
the Internet search market. Its revenues have benefited from advertisers
increasing their budgets on interactive media. Our other purchases included an
Internet-based advertising agency specializing in services such as digital
marketing campaigns. We also added several semiconductor equipment stocks that
we believe will be supported by increased technology spending going forward.
On the sell side, we pared or eliminated a number of names based on valuation
late in the period, with a particular focus on "classic cyclical" companies
(e.g., certain industrial and financial-services holdings).
Given the general elevation in valuations over the past year, and market
concerns over interest rates, we expect to see continued volatility in the
market. We also believe that investors are likely to place ever-more emphasis on
quality of earnings, making stock selection critical. In that context, we
10
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remain committed to our bottom-up stock selection discipline. Our process
stresses the evaluation of business models and company managements, and we
strive to compare our expectations of a company's worth and prospects with that
of the broader market. Specific factors we emphasize include the potential for
positive earnings surprises, management's ability to control operations,
historical valuation parameters, and information gleaned from our ongoing
contact with a company's competitors and suppliers.
The Credit Suisse Strategic Small Cap Team
Marian U. Pardo
Leo M. Bernstein
Calvin E. Chung
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.
11
<Page>
AVERAGE ANNUAL RETURNS AS OF MARCH 31, 2004(1)
<Table>
<Caption>
SINCE INCEPTION
1 YEAR INCEPTION DATE
------ --------- ---------
Class A Without Sales Charge 64.10% 25.55% 08/14/02
Class A With Maximum Sales Charge 54.65% 21.06% 08/14/02
Class B Without CDSC 62.89% 24.62% 08/14/02
Class B With CDSC 58.89% 23.01% 08/14/02
Class C Without CDSC 62.89% 24.62% 08/14/02
Class C With CDSC 61.89% 24.62% 08/14/02
</Table>
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004(1)
<Table>
<Caption>
SINCE INCEPTION
1 YEAR INCEPTION DATE
------ --------- ---------
Class A Without Sales Charge 43.75% 20.09% 08/14/02
Class A With Maximum Sales Charge 35.46% 16.00% 08/14/02
Class B Without CDSC 42.79% 19.23% 08/14/02
Class B With CDSC 38.79% 17.67% 08/14/02
Class C Without CDSC 42.79% 19.23% 08/14/02
Class C With CDSC 41.79% 19.23% 08/14/02
</Table>
RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE
FUTURE RESULTS. DUE TO MARKET VOLATILITY, THE PERFORMANCE OF THE FUNDS MAY BE
LOWER OR HIGHER THAN THE FIGURES SHOWN. RETURNS AND SHARE PRICE WILL FLUCTUATE,
AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. THE PERFORMANCE
RESULTS DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON
FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. PERFORMANCE INFORMATION
CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT www.csam.com/us.
- ----------
(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
unmanaged index of common stocks that includes reinvestment of dividends,
and is compiled by Frank Russell Company. Investors cannot invest directly
in an index.
(3) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was 2.00%. Total return for
Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was 3.89%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum deferred sales charge of 1%), was
6.88%.
12
<Page>
CREDIT SUISSE CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
April 30, 2004 (unaudited)
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS (97.6%)
AEROSPACE & DEFENSE (1.7%)
United Technologies Corp. 95,300 $ 8,220,578
--------------
AUTO COMPONENTS (1.1%)
Autoliv, Inc. 122,900 5,226,937
--------------
BANKS (1.5%)
Wachovia Corp. 159,800 7,310,850
--------------
BEVERAGES (1.5%)
Coca-Cola Co. 150,100 7,590,557
--------------
BIOTECHNOLOGY (9.4%)
Amgen, Inc.* 164,300 9,245,161
Biogen Idec, Inc.* 90,100 5,315,900
Genentech, Inc.* 131,900 16,197,320
Genzyme Corp.*~ 147,500 6,425,100
Gilead Sciences, Inc.* 155,900 9,483,397
--------------
46,666,878
--------------
CHEMICALS (1.9%)
Dow Chemical Co. 99,800 3,961,062
Du Pont (E. I.) de Nemours & Co. 125,500 5,390,225
--------------
9,351,287
--------------
COMMERCIAL SERVICES & SUPPLIES (3.9%)
Apollo Group, Inc. Class A* 109,100 9,915,008
Automatic Data Processing, Inc. 213,600 9,357,816
--------------
19,272,824
--------------
COMMUNICATIONS EQUIPMENT (7.7%)
Cisco Systems, Inc.* 586,500 12,240,255
Comverse Technology, Inc.* 205,200 3,357,072
Corning, Inc.* 823,300 9,080,999
Motorola, Inc. 760,400 13,877,300
--------------
38,555,626
--------------
COMPUTERS & PERIPHERALS (2.3%)
Dell, Inc.* 156,100 5,418,231
EMC Corp.* 556,300 6,208,308
--------------
11,626,539
--------------
DIVERSIFIED FINANCIALS (3.6%)
Capital One Financial Corp. 195,500 12,811,115
Morgan Stanley 97,100 4,989,969
--------------
17,801,084
--------------
ENERGY EQUIPMENT & SERVICES (1.3%)
BJ Services Co.* 149,100 6,634,950
Bonneville Pacific Corp.*^ 16,883 1
--------------
6,634,951
--------------
</Table>
See Accompanying Notes to Financial Statements.
13
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
FOOD PRODUCTS (0.5%)
Dean Foods Co.* 70,600 $ 2,370,748
--------------
HEALTHCARE EQUIPMENT & SUPPLIES (4.2%)
Guidant Corp. 120,500 7,592,705
St. Jude Medical, Inc.* 171,900 13,109,094
--------------
20,701,799
--------------
HEALTHCARE PROVIDERS & SERVICES (4.8%)
Anthem, Inc.*~ 69,800 6,182,884
Caremark Rx, Inc.* 378,600 12,815,610
Omnicare, Inc. 118,200 4,902,936
--------------
23,901,430
--------------
HOTELS, RESTAURANTS & LEISURE (2.6%)
Starbucks Corp.*~ 333,300 12,952,038
--------------
INDUSTRIAL CONGLOMERATES (5.5%)
General Electric Co. 476,700 14,277,165
Tyco International, Ltd. 481,700 13,222,665
--------------
27,499,830
--------------
INSURANCE (1.0%)
Progressive Corp. 57,200 5,006,144
--------------
INTERNET & CATALOG RETAIL (4.1%)
eBay, Inc.* 129,700 10,352,654
InterActiveCorp*~ 317,800 10,128,286
--------------
20,480,940
--------------
INTERNET SOFTWARE & SERVICES (3.1%)
VeriSign, Inc.*~ 150,300 2,424,339
Yahoo!, Inc.*~ 262,600 13,250,796
--------------
15,675,135
--------------
MACHINERY (3.1%)
Caterpillar, Inc. 31,100 2,417,403
Danaher Corp. 116,800 10,806,336
Deere & Co. 35,400 2,408,616
--------------
15,632,355
--------------
MEDIA (8.1%)
Clear Channel Communications, Inc. 117,100 4,858,479
E.W. Scripps Co. Class A 66,900 7,061,295
News Corporation, Ltd. ADR 161,971 5,466,521
Time Warner, Inc.* 604,700 10,171,054
Viacom, Inc. Class B 328,392 12,692,351
--------------
40,249,700
--------------
MULTILINE RETAIL (1.0%)
Wal-Mart Stores, Inc. 86,400 4,924,800
--------------
OIL & GAS (2.0%)
XTO Energy, Inc. 379,375 10,129,313
--------------
</Table>
See Accompanying Notes to Financial Statements.
14
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
PERSONAL PRODUCTS (2.4%)
Avon Products, Inc. 66,300 $ 5,569,200
Estee Lauder Companies, Inc. Class A 138,100 6,312,551
--------------
11,881,751
--------------
PHARMACEUTICALS (7.1%)
Allergan, Inc. 67,800 5,969,790
Pfizer, Inc. 330,300 11,811,528
Teva Pharmaceutical Industries, Ltd. ADR 173,000 10,649,880
Watson Pharmaceuticals, Inc.*~ 192,800 6,865,608
--------------
35,296,806
--------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (4.8%)
Analog Devices, Inc. 192,600 8,204,760
Applied Materials, Inc.* 309,800 5,647,654
Intel Corp. 317,500 8,169,275
KLA-Tencor Corp.* 45,000 1,875,150
--------------
23,896,839
--------------
SOFTWARE (4.2%)
BEA Systems, Inc.* 427,500 4,877,775
Microsoft Corp. 618,100 16,052,057
--------------
20,929,832
--------------
SPECIALTY RETAIL (3.2%)
Best Buy Company, Inc. 95,900 5,202,575
The Gap, Inc.~ 234,600 5,163,546
TJX Companies, Inc. 236,600 5,813,262
--------------
16,179,383
--------------
TOTAL COMMON STOCKS (Cost $439,764,455) 485,966,954
--------------
SHORT-TERM INVESTMENTS (5.4%)
State Street Navigator Prime Fund~~ 13,947,838 13,947,838
--------------
<Caption>
PAR
(000)
----------
State Street Bank and Trust Co. Euro Time Deposit,
0.750%, 5/03/04 $ 13,001 13,001,000
--------------
TOTAL SHORT-TERM INVESTMENTS (Cost $26,948,838) 26,948,838
--------------
TOTAL INVESTMENTS AT VALUE (103.0%) (Cost $466,713,293) 512,915,792
LIABILITIES IN EXCESS OF OTHER ASSETS (-3.0%) (14,775,476)
--------------
NET ASSETS (100.0%) $ 498,140,316
==============
</Table>
INVESTMENT ABBREVIATION
ADR = American Depositary Receipt
* Non-income producing security.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by, or under the direction of, the Board of
Trustees.
~ Security or portion thereof is out on loan.
~~ Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
15
<Page>
CREDIT SUISSE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 2004 (unaudited)
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS (95.1%)
AGRICULTURE (1.1%)
Delta and Pine Land Co.~ 194,100 $ 4,708,866
--------------
BANKS (0.9%)
New York Community Bancorp, Inc.~ 155,820 3,906,408
--------------
COMMERCIAL SERVICES & SUPPLIES (8.9%)
BISYS Group, Inc.* 268,900 3,899,050
Certegy, Inc. 137,700 4,926,906
Corinthian Colleges, Inc.* 149,400 4,574,628
Education Management Corp.* 131,200 4,652,352
Fiserv, Inc.* 181,500 6,635,640
Intersections, Inc.* 53,100 1,311,570
Kroll, Inc.*~ 190,600 5,649,384
Monster Worldwide, Inc.* 302,300 7,741,903
--------------
39,391,433
--------------
COMMUNICATIONS EQUIPMENT (5.2%)
ADC Telecommunications, Inc.*~ 2,160,100 5,400,250
Advanced Fibre Communications, Inc.* 233,600 3,901,120
Andrew Corp.*~ 242,200 4,105,290
Avaya, Inc.*~ 430,100 5,883,768
Polycom, Inc.* 188,300 3,592,764
--------------
22,883,192
--------------
CONTAINERS & PACKAGING (2.4%)
Ball Corp. 82,400 5,438,400
Pactiv Corp.* 218,700 5,019,165
--------------
10,457,565
--------------
DIVERSIFIED FINANCIALS (7.0%)
Chicago Merchantile Exchange~ 40,500 4,750,650
E*TRADE Financial Corp.*~ 526,700 5,983,312
eSPEED, Inc. Class A* 125,400 2,207,040
Franklin Resources, Inc. 101,700 5,576,211
Legg Mason, Inc.~ 87,700 8,073,662
SEI Investments Co. 146,600 4,327,632
--------------
30,918,507
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.9%)
Sanmina-SCI Corp.* 375,600 3,763,512
--------------
ENERGY EQUIPMENT & SERVICES (3.0%)
ENSCO International, Inc. 137,500 3,763,375
National-Oilwell, Inc.* 156,300 4,363,896
Smith International, Inc.* 89,500 4,900,125
--------------
13,027,396
--------------
</Table>
See Accompanying Notes to Financial Statements.
16
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
HEALTHCARE PROVIDERS & SERVICES (14.7%)
Accredo Health, Inc.* 403,100 $ 15,579,815
Anthem, Inc.*~ 76,400 6,767,512
Caremark Rx, Inc.* 155,300 5,256,905
Community Health Systems, Inc.* 404,700 10,437,213
Coventry Health Care, Inc.* 67,500 2,824,200
Health Net, Inc.* 150,000 3,816,000
Manor Care, Inc. 135,600 4,398,864
Omnicare, Inc. 108,900 4,517,172
PacifiCare Health Systems, Inc.*~ 161,000 5,757,360
Quest Diagnostics, Inc.~ 64,800 5,465,880
--------------
64,820,921
--------------
HOTELS, RESTAURANTS & LEISURE (3.8%)
Harrah's Entertainment, Inc. 85,800 4,562,844
Starbucks Corp.*~ 187,400 7,282,364
Yum! Brands, Inc.* 130,600 5,065,974
--------------
16,911,182
--------------
INSURANCE (2.9%)
Ambac Financial Group, Inc. 125,050 8,628,450
Radian Group, Inc. 90,300 4,199,853
--------------
12,828,303
--------------
INTERNET SOFTWARE & SERVICES (6.8%)
Ask Jeeves, Inc.*~ 253,800 9,002,286
Check Point Software Technologies, Ltd.*~ 219,700 5,147,571
DoubleClick, Inc.* 481,800 3,888,126
MatrixOne, Inc.* 498,700 2,997,187
Openwave Systems, Inc.* 486,366 4,143,838
RealNetworks, Inc.*~ 260,100 1,495,575
webMethods, Inc.* 388,300 3,339,380
--------------
30,013,963
--------------
MEDIA (6.9%)
Cox Radio, Inc. Class A* 301,600 6,246,136
Entercom Communications Corp.* 102,900 4,692,240
Getty Images, Inc.* 87,500 4,777,500
Lamar Advertising Co.*~ 179,000 7,349,740
Netflix, Inc.*~ 77,600 1,962,504
Radio One, Inc. Class A* 64,000 1,221,120
Westwood One, Inc.* 147,000 4,342,380
--------------
30,591,620
--------------
</Table>
See Accompanying Notes to Financial Statements.
17
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
MULTILINE RETAIL (1.4%)
Dollar Tree Stores, Inc.* 234,300 $ 6,314,385
--------------
OIL & GAS (3.8%)
Pioneer Natural Resources Co. 227,600 7,444,796
Pogo Producing Co. 97,000 4,784,040
XTO Energy, Inc. 178,400 4,763,280
--------------
16,992,116
--------------
PHARMACEUTICALS (6.2%)
Angiotech Pharmaceuticals, Inc.* 247,000 5,149,950
Barr Laboratories, Inc.* 91,800 3,802,356
Sepracor, Inc.*~ 277,300 13,257,713
Watson Pharmaceuticals, Inc.* 150,400 5,355,744
--------------
27,565,763
--------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (6.8%)
Cymer, Inc.*~ 129,200 4,131,816
Fairchild Semiconductor International, Inc.*~ 191,200 3,722,664
Integrated Circuit Systems, Inc.*~ 230,700 5,465,283
Lam Research Corp.* 182,900 4,049,406
National Semiconductor Corp.* 109,400 4,462,426
Novellus Systems, Inc.* 154,300 4,468,528
Semtech Corp.* 176,900 3,718,438
--------------
30,018,561
--------------
SOFTWARE (6.9%)
Activision, Inc.* 479,100 7,215,246
BEA Systems, Inc.*~ 363,400 4,146,394
Hyperion Solutions Corp.* 202,300 7,764,274
Informatica Corp.* 391,900 2,837,356
Quest Software, Inc.*~ 329,300 3,704,625
Take-Two Interactive Software, Inc.*~ 163,200 4,714,848
--------------
30,382,743
--------------
SPECIALTY RETAIL (5.5%)
AnnTaylor Stores Corp.*~ 112,500 4,559,625
Hughes Supply, Inc. 99,100 5,538,699
Linens 'n Things, Inc.* 171,600 5,566,704
Pier 1 Imports, Inc. 193,900 4,005,974
Staples, Inc. 174,100 4,484,816
--------------
24,155,818
--------------
TOTAL COMMON STOCKS (Cost $350,689,343) 419,652,254
--------------
PREFERRED STOCK (0.0%)
TELECOMMUNICATIONS (0.0%)
Celletra, Ltd. Series C*++
(Cost $7,000,000) 1,102,524 0
--------------
</Table>
See Accompanying Notes to Financial Statements.
18
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
SHORT-TERM INVESTMENTS (22.9%)
State Street Navigator Prime Fund~~ 62,464,370 $ 62,464,370
--------------
<Caption>
PAR
(000)
----------
State Street Bank and Trust Co. Euro Time Deposit,
0.750%, 5/03/04 $ 38,727 38,727,000
--------------
TOTAL SHORT-TERM INVESTMENTS (Cost $101,191,370) 101,191,370
--------------
TOTAL INVESTMENTS AT VALUE (118.0%) (Cost $458,880,713) 520,843,624
LIABILITIES IN EXCESS OF OTHER ASSETS (-18.0%) (79,339,952)
--------------
NET ASSETS (100.0%) $ 441,503,672
==============
</Table>
* Non-income producing security.
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith by, or under the direction of, the Board
of Directors.
~ Security or portion thereof is out on loan.
~~ Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
19
<Page>
CREDIT SUISSE SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
April 30, 2004 (unaudited)
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS (92.2%)
AGRICULTURE (1.1%)
Delta and Pine Land Co.~ 43,100 $ 1,045,606
--------------
AUTO COMPONENTS (0.6%)
Quantum Fuel Systems Technologies Worldwide, Inc.* 101,300 615,904
--------------
BANKS (0.9%)
Boston Private Financial Holdings, Inc. 38,700 901,710
--------------
BIOTECHNOLOGY (2.6%)
BioMarin Pharmaceutical, Inc.*~ 61,300 424,196
Cubist Pharmaceuticals, Inc.*~ 93,300 927,402
Cytokinetics, Inc.* 2,700 43,902
Nabi Biopharmaceuticals*~ 66,500 1,087,275
--------------
2,482,775
--------------
BUILDING PRODUCTS (1.1%)
Griffon Corp.* 47,000 1,031,650
--------------
COMMERCIAL SERVICES & SUPPLIES (2.8%)
Headwaters, Inc.*~ 17,700 406,923
Kroll, Inc.* 52,500 1,556,100
Pegasus Solutions, Inc.*~ 68,500 732,950
--------------
2,695,973
--------------
COMMUNICATIONS EQUIPMENT (2.4%)
Extreme Networks, Inc.*~ 90,200 498,806
InterDigital Communications Corp.*~ 66,700 1,162,581
Polycom, Inc.*~ 35,700 681,156
--------------
2,342,543
--------------
COMPUTERS & PERIPHERALS (2.1%)
Avid Technology, Inc.* 42,000 2,014,740
--------------
CONTAINERS & PACKAGING (0.9%)
Crown Holdings, Inc.* 104,500 881,980
--------------
DIVERSIFIED FINANCIALS (5.6%)
Affiliated Managers Group, Inc.*~ 34,149 1,663,056
eSPEED, Inc. Class A* 54,500 959,200
Jefferies Group, Inc. 37,800 1,288,980
Nelnet, Inc. Class A*~ 24,000 488,400
Raymond James Financial, Inc.~ 39,650 996,008
--------------
5,395,644
--------------
ENERGY EQUIPMENT & SERVICES (2.6%)
FMC Technologies, Inc.* 39,300 1,070,925
Grey Wolf, Inc.* 121,100 481,978
Newpark Resources, Inc.*~ 160,700 920,811
--------------
2,473,714
--------------
FOOD PRODUCTS (2.5%)
American Italian Pasta Co. Class A~ 18,300 566,568
Hain Celestial Group, Inc.*~ 60,400 1,195,920
John B. Sanfilippo & Son, Inc.*~ 22,500 705,825
--------------
2,468,313
--------------
</Table>
See Accompanying Notes to Financial Statements.
20
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
HEALTHCARE EQUIPMENT & SUPPLIES (3.1%)
I-Flow Corp.*~ 62,600 $ 916,464
SonoSite, Inc.*~ 49,700 1,069,544
Wilson Greatbatch Technologies, Inc.*~ 28,600 986,700
--------------
2,972,708
--------------
HEALTHCARE PROVIDERS & SERVICES (5.7%)
Accredo Health, Inc.*~ 51,400 1,986,610
Apria Healthcare Group, Inc.* 34,500 994,980
Centene Corp.*~ 51,800 1,735,300
Kindred Healthcare, Inc.*~ 17,400 852,252
--------------
5,569,142
--------------
INSURANCE (1.4%)
Direct General Corp. 15,100 539,825
U.S.I. Holdings Corp.* 56,000 848,400
--------------
1,388,225
--------------
INTERNET SOFTWARE & SERVICES (9.1%)
24/7 Real Media, Inc.* 86,600 469,372
Ask Jeeves, Inc.*~ 60,000 2,128,200
Chordiant Software, Inc.*~ 265,000 1,033,500
Digitas, Inc.* 19,800 196,218
DoubleClick, Inc.*~ 99,400 802,158
FileNET Corp.* 37,300 1,024,258
MatrixOne, Inc.*~ 181,000 1,087,810
Openwave Systems, Inc.* 112,266 956,506
RealNetworks, Inc.*~ 47,400 272,550
webMethods, Inc.* 101,100 869,460
--------------
8,840,032
--------------
IT CONSULTING & SERVICES (1.5%)
CACI International, Inc. Class A* 31,000 1,410,500
--------------
MEDIA (4.5%)
aQuantive, Inc.*~ 83,800 842,190
Cumulus Media, Inc. Class A*~ 81,000 1,702,620
Emmis Communications Corp. Class A*~ 78,300 1,832,220
--------------
4,377,030
--------------
METALS & MINING (0.7%)
GrafTech International, Ltd.*~ 72,700 644,849
--------------
OIL & GAS (2.7%)
Remington Oil & Gas Corp.*~ 43,200 946,080
Stone Energy Corp.* 34,100 1,677,720
--------------
2,623,800
--------------
PHARMACEUTICALS (7.8%)
Angiotech Pharmaceuticals, Inc.* 51,600 1,075,860
Inspire Phamaceuticals, Inc.*~ 50,800 835,152
K-V Pharmaceutical Co. Class A*~ 48,400 1,162,568
Medicis Pharmaceutical Corp. Class A~ 54,000 2,317,680
Sepracor, Inc.*~ 45,300 2,165,793
--------------
7,557,053
--------------
</Table>
See Accompanying Notes to Financial Statements.
21
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
ROAD & RAIL (1.0%)
Pacer International, Inc.* 51,100 $ 960,680
--------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (9.4%)
Actel Corp.* 50,400 1,003,968
Artisan Components, Inc.*~ 58,000 1,357,200
Asyst Technologies, Inc.*~ 124,900 825,589
Axcelis Technologies, Inc.*~ 129,000 1,355,790
Cymer, Inc.*~ 28,300 905,034
Entegris, Inc.*~ 66,400 673,960
MKS Instruments, Inc.* 36,700 705,374
OmniVision Technologies, Inc.*~ 37,300 831,865
Semtech Corp.*~ 43,000 903,860
Varian Semiconductor Equipment Associates, Inc.* 17,800 579,568
--------------
9,142,208
--------------
SOFTWARE (8.8%)
Activision, Inc.* 126,150 1,899,819
Agile Software Corp.*~ 89,800 677,990
Hyperion Solutions Corp.* 46,900 1,800,022
Informatica Corp.*~ 85,300 617,572
QRS Corp.* 20,850 109,046
Radiant Systems, Inc.*~ 58,800 261,660
Take-Two Interactive Software, Inc.*~ 28,600 826,254
THQ, Inc.*~ 64,500 1,195,830
TIBCO Software, Inc.* 147,700 1,107,750
--------------
8,495,943
--------------
SPECIALTY RETAIL (9.9%)
Aeropostale, Inc.*~ 61,950 1,362,280
American Eagle Outfitters, Inc.*~ 52,900 1,359,001
AnnTaylor Stores Corp.*~ 28,500 1,155,105
Cost Plus, Inc.*~ 35,100 1,270,620
Guitar Center, Inc.*~ 35,900 1,490,568
Gymboree Corp.*~ 58,100 1,025,465
J. Jill Group, Inc.* 34,000 720,120
Linens 'n Things, Inc.* 38,500 1,248,940
--------------
9,632,099
--------------
TEXTILES & APPAREL (1.4%)
Tommy Hilfiger Corp.*~ 88,500 1,380,600
--------------
TOTAL COMMON STOCKS (Cost $78,248,623) 89,345,421
--------------
PREFERRED STOCK (0.0%)
INTERNET SOFTWARE & SERVICES (0.0%)
Planetweb, Inc.*++
(Cost $149,913) 27,600 643
--------------
WARRANT (0.0%)
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.0%)
APW, Ltd. expires 7/31/09*^
(Cost $0) 17 0
--------------
See Accompanying Notes to Financial Statements.
</Table>
22
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
SHORT-TERM INVESTMENTS (32.8%)
State Street Navigator Prime Fund~~ 24,130,809 $ 24,130,809
--------------
<Caption>
PAR
(000)
----------
State Street Bank and Trust Co. Euro Time Deposit,
0.750%, 5/03/04 $ 7,674 7,674,000
--------------
TOTAL SHORT-TERM INVESTMENTS (Cost $31,804,809) 31,804,809
--------------
TOTAL INVESTMENTS AT VALUE (125.0%) (Cost $110,203,345) 121,150,873
LIABILITIES IN EXCESS OF OTHER ASSETS (-25.0%) (24,230,290)
--------------
NET ASSETS (100.0%) $ 96,920,583
==============
</Table>
* Non-income producing security.
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith by, or under the direction of, the Board
of Directors.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by, or under the direction of, the Board of
Directors.
~ Security or portion thereof is out on loan.
~~ Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
23
<Page>
CREDIT SUISSE STRATEGIC SMALL CAP FUND
SCHEDULE OF INVESTMENTS
April 30, 2004 (unaudited)
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS (99.8%)
AGRICULTURE (1.3%)
Delta and Pine Land Co. 700 $ 16,982
--------------
BANKS (5.0%)
BankUnited Financial Corp. Class A*~ 500 13,215
Fidelity Bankshares, Inc. 500 16,625
Southwest Bancorporation of Texas, Inc.~ 500 20,335
Sterling Bancshares, Inc.~ 1,200 15,252
--------------
65,427
--------------
BIOTECHNOLOGY (0.4%)
BioMarin Pharmaceutical, Inc.*~ 800 5,536
--------------
BUILDING PRODUCTS (1.2%)
Griffon Corp.*~ 700 15,365
--------------
COMMERCIAL SERVICES & SUPPLIES (3.9%)
Geo Group, Inc.* 300 7,050
Kroll, Inc.*~ 700 20,748
Waste Connections, Inc.*~ 600 24,162
--------------
51,960
--------------
COMMUNICATIONS EQUIPMENT (1.8%)
Extreme Networks, Inc.*~ 1,500 8,295
InterDigital Communications Corp.*~ 900 15,687
--------------
23,982
--------------
COMPUTERS & PERIPHERALS (3.2%)
Avid Technology, Inc.* 300 14,391
Imation Corp.~ 700 27,279
--------------
41,670
--------------
CONTAINERS & PACKAGING (2.1%)
Constar International, Inc.* 400 1,904
Crown Holdings, Inc.* 1,500 12,660
Silgan Holdings, Inc.* 300 12,621
--------------
27,185
--------------
DIVERSIFIED FINANCIALS (5.7%)
Affiliated Managers Group, Inc.*~ 550 26,785
Apollo Investment Corp.* 900 12,375
eSPEED, Inc. Class A* 800 14,080
Nelnet, Inc. Class A*~ 400 8,140
Raymond James Financial, Inc. 550 13,816
--------------
75,196
--------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.1%)
Methode Electronics, Inc. Class A 1,300 14,742
--------------
ENERGY EQUIPMENT & SERVICES (4.2%)
Newpark Resources, Inc.* 3,500 20,055
SEACOR SMIT, Inc.* 500 20,740
Unit Corp.* 500 14,125
--------------
54,920
--------------
</Table>
See Accompanying Notes to Financial Statements.
24
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
FOOD & DRUG RETAILING (1.0%)
NeighborCare, Inc.* 600 $ 13,884
--------------
FOOD PRODUCTS (1.7%)
American Italian Pasta Co. Class A 200 6,192
John B. Sanfilippo & Son, Inc.* 500 15,685
--------------
21,877
--------------
HEALTHCARE EQUIPMENT & SUPPLIES (0.9%)
I-Flow Corp.* 800 11,712
--------------
HEALTHCARE PROVIDERS & SERVICES (10.9%)
Accredo Health, Inc.* 500 19,325
Apria Healthcare Group, Inc.* 300 8,652
Coventry Health Care, Inc.* 350 14,644
Genesis HealthCare Corp.* 250 5,847
Gentiva Health Services, Inc.* 1,200 17,532
Hanger Orthopedic Group, Inc.* 900 14,733
Kindred Healthcare, Inc.*~ 300 14,694
Pediatrix Medical Group, Inc.* 200 14,300
PSS World Medical, Inc.* 1,400 15,666
Psychiatric Solutions, Inc.* 800 18,600
--------------
143,993
--------------
HOTELS, RESTAURANTS & LEISURE (4.2%)
Alliance Gaming Corp.* 800 19,976
CEC Entertainment, Inc.* 550 18,794
Red Robin Gourmet Burgers, Inc.*~ 600 17,250
--------------
56,020
--------------
HOUSEHOLD DURABLES (1.2%)
Interface, Inc. Class A*~ 1,900 16,207
--------------
INSURANCE (3.9%)
Direct General Corp. 500 17,875
Platinum Underwriters Holdings, Ltd.~ 500 15,990
U.S.I. Holdings Corp.* 1,200 18,180
--------------
52,045
--------------
INTERNET SOFTWARE & SERVICES (2.4%)
Ask Jeeves, Inc.*~ 500 17,735
Chordiant Software, Inc.*~ 3,600 14,040
--------------
31,775
--------------
MACHINERY (3.5%)
Kennametal, Inc.~ 300 12,948
Nordson Corp. 600 20,736
Wabash National Corp.*~ 500 12,705
--------------
46,389
--------------
</Table>
See Accompanying Notes to Financial Statements.
25
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
MEDIA (6.5%)
aQuantive, Inc.*~ 1,400 $ 14,070
Cumulus Media, Inc. Class A*~ 800 16,816
Emmis Communications Corp. Class A*~ 700 16,380
Entercom Communications Corp.* 300 13,680
Gray Television, Inc. 900 13,338
MDC Partners, Inc. Class A*~ 900 11,034
--------------
85,318
--------------
METALS & MINING (0.9%)
GrafTech International, Ltd.*~ 1,400 12,418
--------------
OIL & GAS (2.6%)
Stone Energy Corp.* 700 34,440
--------------
PHARMACEUTICALS (3.4%)
K-V Pharmaceutical Co. Class A*~ 650 15,613
Sepracor, Inc.*~ 600 28,686
--------------
44,299
--------------
REAL ESTATE (1.0%)
Government Properties Trust, Inc.~ 1,200 13,140
--------------
ROAD & RAIL (2.8%)
Pacer International, Inc.* 1,200 22,560
Werner Enterprises, Inc. 700 13,993
--------------
36,553
--------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (9.6%)
Actel Corp.* 700 13,944
Artisan Components, Inc.*~ 900 21,060
Asyst Technologies, Inc.* 1,900 12,559
Axcelis Technologies, Inc.* 1,500 15,765
Cymer, Inc.* 400 12,792
Entegris, Inc.*~ 800 8,120
Integrated Circuit Systems, Inc.* 600 14,214
MKS Instruments, Inc.* 500 9,610
Semtech Corp.*~ 600 12,612
Varian Semiconductor Equipment Associates, Inc.* 200 6,512
--------------
127,188
--------------
SOFTWARE (7.8%)
Actuate Corp.* 2,900 9,483
Hyperion Solutions Corp.* 600 23,028
Informatica Corp.* 1,300 9,412
JDA Software Group, Inc.* 1,100 14,443
Lawson Software, Inc.* 1,800 12,762
Radiant Systems, Inc.* 4,007 17,831
TIBCO Software, Inc.* 2,100 15,750
--------------
102,709
--------------
</Table>
See Accompanying Notes to Financial Statements.
26
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCKS
SPECIALTY RETAIL (4.3%)
Hughes Supply, Inc.~ 300 $ 16,767
J. Jill Group, Inc.* 400 8,472
Linens 'n Things, Inc.* 600 19,464
Too, Inc.* 700 12,278
--------------
56,981
--------------
TEXTILES & APPAREL (1.3%)
The Warnaco Group, Inc.*~ 900 17,217
--------------
TOTAL COMMON STOCKS (Cost $1,137,467) 1,317,130
--------------
SHORT-TERM INVESTMENT (26.5%)
State Street Navigator Prime Fund
(Cost $349,940)~~ 349,940 349,940
--------------
TOTAL INVESTMENTS AT VALUE (126.3%) (Cost $1,487,407) 1,667,070
LIABILITIES IN EXCESS OF OTHER ASSETS (-26.3%) (347,126)
--------------
NET ASSETS (100.0%) $ 1,319,944
==============
</Table>
* Non-income producing security.
~ Security or portion thereof is out on loan.
~~ Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
27
<Page>
CREDIT SUISSE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2004 (unaudited)
<Table>
<Caption>
CAPITAL MID-CAP SMALL CAP STRATEGIC SMALL
APPRECIATION FUND GROWTH FUND GROWTH FUND CAP FUND
----------------- -------------- -------------- ---------------
ASSETS
Investments at value, including collateral
for securities on loan of $13,947,838,
$62,464,370, $24,130,809 and $349,940,
respectively (cost $466,713,293,
$458,880,713, $110,203,345 and
$1,487,407, respectively) (Note 1) $ 512,915,792(1) $ 520,843,624(2) $ 121,150,873(3) $ 1,667,070(4)
Cash 106 78 230 20,612
Receivable for investments sold 4,920,273 3,397,626 2,113,469 36,975
Receivable for fund shares sold 396,894 710,918 152,386 --
Dividend and interest receivable 33,791 87,465 2,482 57
Receivable from investment adviser
(Note 2) -- -- -- 15,596
Prepaid expenses and other assets 90,371 90,785 69,608 22,520
----------------- -------------- -------------- ---------------
Total Assets 518,357,227 525,130,496 123,489,048 1,762,830
----------------- -------------- -------------- ---------------
LIABILITIES
Advisory fee payable (Note 2) 295,944 348,505 28,942 --
Administrative services fee payable
(Note 2) 89,594 81,851 17,791 764
Shareholder servicing/Distribution fee
payable (Note 2) 13,958 22,442 20,787 753
Payable for investments purchased 5,184,000 17,244,274 2,192,061 47,819
Payable for fund shares redeemed 389,611 3,250,476 122,311 --
Payable upon return of securities loaned 13,947,838 62,464,370 24,130,809 349,940
Other accrued expenses payable 295,966 214,906 55,764 43,610
----------------- -------------- -------------- ---------------
Total Liabilities 20,216,911 83,626,824 26,568,465 442,886
----------------- -------------- -------------- ---------------
NET ASSETS
Capital stock, $0.001 par value (Note 6) 32,562 15,730 5,102 112
Paid-in capital (Note 6) 841,004,861 633,800,035 98,772,107 1,115,974
Accumulated net investment loss (1,604,413) (2,470,457) (550,441) (148,238)
Accumulated net realized gain (loss)
on investments (387,495,193) (251,804,547) (12,253,713) 172,433
Net unrealized appreciation from investments 46,202,499 61,962,911 10,947,528 179,663
----------------- -------------- -------------- ---------------
Net Assets $ 498,140,316 $ 441,503,672 $ 96,920,583 $ 1,319,944
================= ============== ============== ===============
COMMON SHARES
Net assets $ 479,170,843 $ 407,213,423 $ 89,353,955 N/A
Shares outstanding 31,280,270 14,433,098 4,703,245 N/A
----------------- -------------- -------------- ---------------
Net asset value, offering price and
redemption price per share $ 15.32 $ 28.21 $ 19.00 N/A
================= ============== ============== ===============
ADVISOR SHARES
Net assets $ 16,278,275 $ 33,841,192 $ 966 N/A
Shares outstanding 1,103,466 1,281,235 51 N/A
----------------- -------------- -------------- ---------------
Net asset value, offering price and
redemption price per share $ 14.75 $ 26.41 $ 18.99 N/A
================= ============== ============== ===============
</Table>
See Accompanying Notes to Financial Statements.
28
<Page>
<Table>
<Caption>
CAPITAL MID-CAP SMALL CAP STRATEGIC SMALL
APPRECIATION FUND GROWTH FUND GROWTH FUND CAP FUND
----------------- -------------- -------------- ---------------
A SHARES
Net assets $ 1,642,242 $ 440,713 $ 7,563,731 $ 598,334
Shares outstanding 107,857 15,750 398,227 50,475
----------------- -------------- -------------- ---------------
Net asset value and redemption
price per share $ 15.23 $ 27.98 $ 18.99 $ 11.85
================= ============== ============== ===============
Maximum offering price per share
(net asset value/(1-5.75%)) $ 16.16 $ 29.69 $ 20.15 $ 12.57
================= ============== ============== ===============
B SHARES
Net assets $ 550,617 $ 7,384 $ 966 $ 360,644
Shares outstanding 36,825 264 51 30,568
----------------- -------------- -------------- ---------------
Net asset value and offering price per share $ 14.95 $ 27.95 $ 18.97 $ 11.80
================= ============== ============== ===============
C SHARES
Net assets $ 498,339 $ 960 $ 965 $ 360,966
Shares outstanding 33,335 34 51 30,596
----------------- -------------- -------------- ---------------
Net asset value and offering price per share $ 14.95 $ 27.95 $ 18.97 $ 11.80
================= ============== ============== ===============
</Table>
(1) Including $13,212,656 of securities on loan.
(2) Including $59,397,336 of securities on loan.
(3) Including $22,964,910 of securities on loan.
(4) Including $335,589 of securities on loan.
See Accompanying Notes to Financial Statements.
29
<Page>
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2004 (unaudited)
<Table>
<Caption>
CAPITAL MID-CAP SMALL CAP STRATEGIC SMALL
APPRECIATION FUND GROWTH FUND GROWTH FUND CAP FUND
----------------- -------------- -------------- ---------------
INVESTMENT INCOME (Note 1)
Dividends $ 1,420,320 $ 677,461 $ 45,613 $ 2,903
Interest 39,655 88,678 23,971 140
Securities lending 8,723 20,320 3,643 51
Foreign taxes (6,414) -- -- --
----------------- -------------- -------------- ---------------
Total investment income 1,462,284 786,459 73,227 3,094
----------------- -------------- -------------- ---------------
EXPENSES
Investment advisory fees (Note 2) 1,831,098 2,053,089 445,475 6,444
Administrative services fees (Note 2) 405,238 354,540 72,001 4,154
Shareholder servicing/Distribution
fees (Note 2)
Common Class -- -- 104,250 --
Advisor Class 43,131 93,157 1 --
Class A 1,802 328 7,117 776
Class B 2,730 6 2 1,823
Class C 2,121 2 2 1,856
Transfer agent fees (Note 2) 594,872 601,004 128,539 519
Printing fees (Note 2) 41,651 31,261 15,915 12,424
Audit fees 24,514 17,839 7,871 6,960
Insurance expense 23,904 13,582 7,232 6,194
Custodian fees 23,156 20,821 12,200 1,977
Registration fees 22,621 21,953 20,449 18,142
Legal fees 17,844 20,778 21,161 23,922
Trustees'/Directors' fees 8,659 8,659 8,659 8,657
Commitment fees (Note 3) 8,001 6,312 807 13
Interest expense (Note 3) -- -- 8 --
Miscellaneous expense 15,355 13,585 7,798 6,243
----------------- -------------- -------------- ---------------
Total expenses 3,066,697 3,256,916 859,487 100,104
Less: fees waived and expenses
reimbursed (Note 2) -- -- (235,819) (87,848)
----------------- -------------- -------------- ---------------
Net expenses 3,066,697 3,256,916 623,668 12,256
----------------- -------------- -------------- ---------------
Net investment loss (1,604,413) (2,470,457) (550,441) (9,162)
----------------- -------------- -------------- ---------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain from investments 17,198,018 51,191,990 7,261,069 176,274
Net change in unrealized appreciation
(depreciation) from investments 4,722,767 (25,719,356) (3,629,291) (63,710)
----------------- -------------- -------------- ---------------
Net realized and unrealized gain
from investments 21,920,785 25,472,634 3,631,778 112,564
----------------- -------------- -------------- ---------------
Net increase in net assets resulting
from operations $ 20,316,372 $ 23,002,177 $ 3,081,337 $ 103,402
================= ============== ============== ===============
</Table>
See Accompanying Notes to Financial Statements.
30
<Page>
This page intentionally left blank
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
CAPITAL APPRECIATION FUND
----------------------------------------
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 2004 ENDED
(UNAUDITED) OCTOBER 31, 2003
------------------ ------------------
FROM OPERATIONS
Net investment loss $ (1,604,413) $ (2,131,927)
Net realized gain (loss) from investments 17,198,018 (33,954,159)
Net change in unrealized appreciation
(depreciation) from investments 4,722,767 120,908,900
------------------ ------------------
Net increase in net assets resulting from
operations 20,316,372 84,822,814
------------------ ------------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
------------------ ------------------
Distributions from net realized gains
Class A shares -- --
Class B shares -- --
Class C shares -- --
------------------ ------------------
Net decrease in net assets resulting from
dividends and distributions -- --
------------------ ------------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 36,509,225 86,270,380
Reinvestment of dividends and distributions -- --
Net asset value of shares redeemed (92,652,873) (220,631,129)
------------------ ------------------
Net increase (decrease) in net assets from
capital share transactions (56,143,648) (134,360,749)
------------------ ------------------
Net increase (decrease) in net assets (35,827,276) (49,537,935)
------------------ ------------------
NET ASSETS
Beginning of period 533,967,592 583,505,527
------------------ ------------------
End of period $ 498,140,316 $ 533,967,592
================== ==================
ACCUMULATED NET INVESTMENT LOSS $ (1,604,413) $ --
================== ==================
</Table>
32
<Page>
<Table>
<Caption>
MID-CAP GROWTH FUND
----------------------------------------
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 2004 ENDED
(UNAUDITED) OCTOBER 31, 2003
------------------ ------------------
FROM OPERATIONS
Net investment loss $ (2,470,457) $ (4,237,713)
Net realized gain (loss) from investments 51,191,990 13,936,296
Net change in unrealized appreciation
(depreciation) from investments (25,719,356) 125,732,873
------------------ ------------------
Net increase in net assets resulting from
operations 23,002,177 135,431,456
------------------ ------------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
------------------ ------------------
Distributions from net realized gains
Class A shares -- --
Class B shares -- --
Class C shares -- --
------------------ ------------------
Net decrease in net assets resulting from
dividends and distributions -- --
------------------ ------------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 63,268,168 101,028,267
Reinvestment of dividends and distributions -- --
Net asset value of shares redeemed (92,424,693) (189,580,871)
------------------ ------------------
Net increase (decrease) in net assets from
capital share transactions (29,156,525) (88,552,604)
------------------ ------------------
Net increase (decrease) in net assets (6,154,348) 46,878,852
------------------ ------------------
NET ASSETS
Beginning of period 447,658,020 400,779,168
------------------ ------------------
End of period $ 441,503,672 $ 447,658,020
================== ==================
ACCUMULATED NET INVESTMENT LOSS $ (2,470,457) $ --
================== ==================
<Caption>
SMALL CAP GROWTH FUND
----------------------------------------
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 2004 ENDED
(UNAUDITED) OCTOBER 31, 2003
------------------ ------------------
FROM OPERATIONS
Net investment loss $ (550,441) $ (611,652)
Net realized gain (loss) from investments 7,261,069 (1,191,044)
Net change in unrealized appreciation
(depreciation) from investments (3,629,291) 21,978,881
------------------ ------------------
Net increase in net assets resulting from
operations 3,081,337 20,176,185
------------------ ------------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
------------------ ------------------
Distributions from net realized gains
Class A shares -- --
Class B shares -- --
Class C shares -- --
------------------ ------------------
Net decrease in net assets resulting from
dividends and distributions -- --
------------------ ------------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 36,699,690 41,262,405
Reinvestment of dividends and distributions -- --
Net asset value of shares redeemed (21,016,361) (26,522,563)
------------------ ------------------
Net increase (decrease) in net assets from
capital share transactions 15,683,329 14,739,842
------------------ ------------------
Net increase (decrease) in net assets 18,764,666 34,916,027
------------------ ------------------
NET ASSETS
Beginning of period 78,155,917 43,239,890
------------------ ------------------
End of period $ 96,920,583 $ 78,155,917
================== ==================
ACCUMULATED NET INVESTMENT LOSS $ (550,441) $ --
================== ==================
<Caption>
STRATEGIC SMALL CAP FUND
----------------------------------------
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 2004 ENDED
(UNAUDITED) OCTOBER 31, 2003
------------------ ------------------
FROM OPERATIONS
Net investment loss $ (9,162) $ (15,710)
Net realized gain (loss) from investments 176,274 67,185
Net change in unrealized appreciation
(depreciation) from investments (63,710) 259,799
------------------ ------------------
Net increase in net assets resulting from
operations 103,402 311,274
------------------ ------------------
FROM DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
Class A shares (33,406) (21,738)
Class B shares (17,754) (15,631)
Class C shares (18,090) (15,631)
------------------ ------------------
Distributions from net realized gains
Class A shares (19,194) --
Class B shares (11,592) --
Class C shares (11,804) --
------------------ ------------------
Net decrease in net assets resulting from
dividends and distributions (111,840) (53,000)
------------------ ------------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 29,240 128,640
Reinvestment of dividends and distributions 10,957 --
Net asset value of shares redeemed (23,325) (28,005)
------------------ ------------------
Net increase (decrease) in net assets from
capital share transactions 16,872 100,635
------------------ ------------------
Net increase (decrease) in net assets 8,434 358,909
------------------ ------------------
NET ASSETS
Beginning of period 1,311,510 952,601
------------------ ------------------
End of period $ 1,319,944 $ 1,311,510
================== ==================
ACCUMULATED NET INVESTMENT LOSS $ (148,238) $ (69,826)
================== ==================
</Table>
See Accompanying Notes to Financial Statements.
33
<Page>
CREDIT SUISSE CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2004 -------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
-------------- --------- --------- --------- ----------- -----------
PER SHARE DATA
Net asset value, beginning of period $ 14.75 $ 12.53 $ 16.23 $ 30.57 $ 25.82 $ 19.52
-------------- --------- --------- --------- ----------- -----------
INVESTMENT OPERATIONS
Net investment loss (0.05)(1) (0.05)(1) (0.07)(1) (0.02) (0.05) (0.05)
Net gain (loss) on investments
(both realized and unrealized) 0.62 2.27 (3.63) (10.04) 7.72 7.27
-------------- --------- --------- --------- ----------- -----------
Total from investment operations 0.57 2.22 (3.70) (10.06) 7.67 7.22
-------------- --------- --------- --------- ----------- -----------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -- -- -- -- -- (0.01)
Distributions from net realized gains -- -- 0.00(2) (4.28) (2.92) (0.91)
-------------- --------- --------- --------- ----------- -----------
Total dividends and distributions -- -- -- (4.28) (2.92) (0.92)
-------------- --------- --------- --------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 15.32 $ 14.75 $ 12.53 $ 16.23 $ 30.57 $ 25.82
============== ========= ========= ========= =========== ===========
Total return(3) 3.86% 17.72% (22.79)% (37.59)% 31.50% 38.28%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s
omitted) $ 479,171 $ 514,668 $ 566,064 $ 899,234 $ 1,618,147 $ 1,005,670
Ratio of expenses to average net
assets(4) 1.15%(5) 1.15% 1.11% 0.99% 0.98% 1.01%
Ratio of net investment loss to
average net assets (0.59)%(5) (0.39)% (0.45)% (0.09)% (0.19)% (0.23)%
Portfolio turnover rate 41% 97% 50% 100% 140% 144%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Total returns for periods
less than one year are not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Common Class shares' net expense ratio by .02% and .01% for the
years ended October 31, 2000 and 1999, respectively. The Common Class
shares' operating expense ratios after reflecting these arrangements were
.96% and 1.00% for the years ended October 31, 2000 and 1999, respectively.
For the six months ended April 30, 2004, and for the years ended October
31, 2003, 2002 and 2001, there was no effect on the net operating expense
ratio because of transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
34
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2004 -------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
-------------- --------- --------- --------- ----------- -----------
PER SHARE DATA
Net asset value, beginning of period $ 14.24 $ 12.16 $ 15.82 $ 29.88 $ 25.28 $ 19.21
-------------- --------- --------- --------- ----------- -----------
INVESTMENT OPERATIONS
Net investment loss (0.08)(1) (0.11)(1) (0.14)(1) (0.12) (0.21) (0.20)
Net gain (loss) on investments
(both realized and unrealized) 0.59 2.19 (3.52) (9.81) 7.58 7.18
-------------- --------- --------- --------- ----------- -----------
Total from investment operations 0.51 2.08 (3.66) (9.93) 7.37 6.98
-------------- --------- --------- --------- ----------- -----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(2) (4.13) (2.77) (0.91)
-------------- --------- --------- --------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 14.75 $ 14.24 $ 12.16 $ 15.82 $ 29.88 $ 25.28
============== ========= ========= ========= =========== ===========
Total return(3) 3.58% 17.11% (23.13)% (37.91)% 30.83% 37.62%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s
omitted) $ 16,278 $ 17,380 $ 16,693 $ 25,882 $ 34,058 $ 29,299
Ratio of expenses to average net
assets(4) 1.65%(5) 1.65% 1.61% 1.49% 1.48% 1.51%
Ratio of net investment loss to
average net assets (1.09)%(5) (0.90)% (0.96)% (0.62)% (0.69)% (0.73)%
Portfolio turnover rate 41% 97% 50% 100% 140% 144%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Total returns for periods
less than one year are not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Advisor Class shares' net expense ratio by .02% and .01% for the
years ended October 31, 2000 and 1999, respectively. The Advisor Class
shares' operating expense ratios after reflecting these arrangements were
1.46% and 1.50% for the years ended October 31, 2000, and 1999,
respectively. For the six months ended April 30, 2004, and for the years
ended October 31, 2003, 2002 and 2001, there was no effect on the net
operating expense ratio because of transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
35
<Page>
(For a Class A Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, 2004 ENDED ENDED
(UNAUDITED) OCTOBER 31, 2003 OCTOBER 31, 2002(1)
------------------ ---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 14.68 $ 12.50 $ 17.75
------------------ ---------------- -------------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.07) (0.09) (0.09)
Net gain (loss) on investments
(both realized and unrealized) 0.62 2.27 (5.16)
------------------ ---------------- -------------------
Total from investment operations 0.55 2.18 (5.25)
------------------ ---------------- -------------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(3)
------------------ ---------------- -------------------
NET ASSET VALUE, END OF PERIOD $ 15.23 $ 14.68 $ 12.50
================== ================ ===================
Total return(4) 3.75% 17.44% (29.57)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 1,642 $ 1,152 $ 450
Ratio of expenses to average net assets(5) 1.40%(6) 1.40% 1.40%(6)
Ratio of net investment loss to average
net assets (0.84)%(6) (0.69)% (0.77)%(6)
Portfolio turnover rate 41% 97% 50%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the six months ended April 30, 2004, and
for the years ended October 31, 2003 and 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
36
<Page>
(For a Class B Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, 2004 ENDED ENDED
(UNAUDITED) OCTOBER 31, 2003 OCTOBER 31, 2002(1)
------------------ ---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 14.47 $ 12.41 $ 17.75
------------------ ---------------- -------------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.12) (0.19) (0.18)
Net gain (loss) on investments
(both realized and unrealized) 0.60 2.25 (5.16)
------------------ ---------------- -------------------
Total from investment operations 0.48 2.06 (5.34)
------------------ ---------------- -------------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(3)
------------------ ---------------- -------------------
NET ASSET VALUE, END OF PERIOD $ 14.95 $ 14.47 $ 12.41
================== ================ ===================
Total return(4) 3.32% 16.60% (30.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 551 $ 545 $ 206
Ratio of expenses to average net assets(5) 2.15%(6) 2.15% 2.15%(6)
Ratio of net investment loss to average
net assets (1.59)%(6) (1.44)% (1.51)%(6)
Portfolio turnover rate 41% 97% 50%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the six months ended April 30, 2004, and
for the years ended October 31, 2003 and 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
37
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, 2004 ENDED ENDED
(UNAUDITED) OCTOBER 31, 2003 OCTOBER 31, 2002(1)
------------------ ---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 14.47 $ 12.41 $ 17.75
------------------ ---------------- -------------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.12) (0.19) (0.18)
Net gain (loss) on investments
(both realized and unrealized) 0.60 2.25 (5.16)
------------------ ---------------- -------------------
Total from investment operations 0.48 2.06 (5.34)
------------------ ---------------- -------------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(3)
------------------ ---------------- -------------------
NET ASSET VALUE, END OF PERIOD $ 14.95 $ 14.47 $ 12.41
================== ================ ===================
Total return(4) 3.32% 16.60% (30.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 498 $ 223 $ 93
Ratio of expenses to average net assets(5) 2.15%(6) 2.15% 2.14%(6)
Ratio of net investment loss to average
net assets (1.59)%(6) (1.44)% (1.49)%(6)
Portfolio turnover rate 41% 97% 50%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the six months ended April 30, 2004, and
for the years ended October 31, 2003 and 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
38
<Page>
CREDIT SUISSE MID-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2004 -------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
-------------- --------- --------- --------- ----------- -----------
PER SHARE DATA
Net asset value, beginning of period $ 26.79 $ 18.98 $ 23.60 $ 50.24 $ 43.73 $ 33.69
-------------- --------- --------- --------- ----------- -----------
INVESTMENT OPERATIONS
Net investment loss (0.15)(1) (0.22)(1) (0.23)(1) (0.26) (0.33) (0.33)
Net gain (loss) on investments
(both realized and unrealized) 1.57 8.03 (4.39) (17.89) 13.07 10.37
-------------- --------- --------- --------- ----------- -----------
Total from investment operations 1.42 7.81 (4.62) (18.15) 12.74 10.04
-------------- --------- --------- --------- ----------- -----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(2) (8.49) (6.23) --
-------------- --------- --------- --------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 28.21 $ 26.79 $ 18.98 $ 23.60 $ 50.24 $ 43.73
============== ========= ========= ========= =========== ===========
Total return(3) 5.30% 41.15% (19.57)% (42.61)% 30.60% 29.80%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s
omitted) $ 407,213 $ 407,262 $ 357,872 $ 877,983 $ 2,114,737 $ 1,592,595
Ratio of expenses to average net
assets(4) 1.38%(5) 1.38% 1.35% 1.28% 1.19% 1.23%
Ratio of net investment loss to
average net assets (1.04)%(5) (1.04)% (0.98)% (0.73)% (0.65)% (0.75)%
Portfolio turnover rate 28% 68% 67% 177% 191% 154%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Total returns for periods
less than one year are not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Common Class shares' net expense ratio by .02% and .01% for the
years ended October 31, 2000 and 1999, respectively. The Common Class
shares' operating expense ratio after reflecting these arrangements were
1.17% and 1.22% for the years ended October 31, 2000 and 1999,
respectively. For the six months ended April 30, 2004, and for the years
ended October 31, 2003, 2002 and 2001, there was no effect on the net
operating expense ratio because of transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
39
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2004 -------------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
-------------- --------- --------- --------- ----------- -----------
PER SHARE DATA
Net asset value, beginning of period $ 25.14 $ 17.90 $ 22.38 $ 48.02 $ 41.99 $ 32.51
-------------- --------- --------- --------- ----------- -----------
INVESTMENT OPERATIONS
Net investment loss (0.20)(1) (0.31)(1) (0.33)(1) (0.46) (0.61) (0.65)
Net gain (loss) on investments
(both realized and unrealized) 1.47 7.55 (4.15) (16.96) 12.61 10.13
-------------- --------- --------- --------- ----------- -----------
Total from investment operations 1.27 7.24 (4.48) (17.42) 12.00 9.48
-------------- --------- --------- --------- ----------- -----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(2) (8.22) (5.97) --
-------------- --------- --------- --------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 26.41 $ 25.14 $ 17.90 $ 22.38 $ 48.02 $ 41.99
============== ========= ========= ========= =========== ===========
Total return(3) 5.05% 40.45% (20.01)% (42.88)% 29.96% 29.16%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s
omitted) $ 33,841 $ 40,322 $ 42,906 $ 101,690 $ 277,802 $ 228,244
Ratio of expenses to average net
assets(4) 1.88%(5) 1.88% 1.85% 1.78% 1.69% 1.72%
Ratio of net investment loss to
average net assets (1.54)%(5) (1.53)% (1.49)% (1.23)% (1.15)% (1.25)%
Portfolio turnover rate 28% 68% 67% 177% 191% 154%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Total returns for periods
less than one year are not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Advisor Class shares' net expense ratio by .02% and .01% for the
years ended October 31, 2000 and 1999, respectively. The Advisor Class
shares' operating expense ratio after reflecting these arrangements were
1.67% and 1.71% for the years ended October 31, 2000 and 1999,
respectively. For the six months ended April 30, 2004, and for the years
ended October 31, 2003, 2002 and 2001, there was no effect on the net
operating expense ratio because of transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
40
<Page>
(For a Class A Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, 2004 ENDED ENDED
(UNAUDITED) OCTOBER 31, 2003 OCTOBER 31, 2002(1)
------------------ ---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 26.60 $ 18.90 $ 25.92
------------------ ---------------- -------------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.19) (0.33) (0.28)
Net gain (loss) on investments
(both realized and unrealized) 1.57 8.03 (6.74)
------------------ ---------------- -------------------
Total from investment operations 1.38 7.70 (7.02)
------------------ ---------------- -------------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(3)
------------------ ---------------- -------------------
NET ASSET VALUE, END OF PERIOD $ 27.98 $ 26.60 $ 18.90
================== ================ ===================
Total return(4) 5.19% 40.74% (27.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 441 $ 75 $ 1
Ratio of expenses to average net assets(5) 1.63%(6) 1.63% 1.71%(6)
Ratio of net investment loss to average
net assets (1.29)%(6) (1.36)% (1.35)%(6)
Portfolio turnover rate 28% 68% 67%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the six months ended April 30, 2004 and
for the years ended October 31, 2003 and 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
41
<Page>
(For a Class B and Class C Share of the Fund Outstanding Throughout the Period)
<Table>
<Caption>
FOR THE PERIOD ENDED APRIL 30, 2004 (UNAUDITED)(1)
--------------------------------------------------
CLASS B CLASS C
---------- ----------
PER SHARE DATA
Net asset value, beginning of period $ 29.10 $ 29.10
---------- ----------
INVESTMENT OPERATIONS
Net investment loss(2) (0.10) (0.09)
Net loss on investments (both realized and unrealized) (1.05) (1.06)
---------- ----------
Total from investment operations (1.15) (1.15)
---------- ----------
NET ASSET VALUE, END OF PERIOD $ 27.95 $ 27.95
========== ==========
Total return(3) (3.95)% (3.88)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 7 $ 1
Ratio of expenses to average net assets(4) 2.38%(5) 2.38%(5)
Ratio of net investment loss to average net assets (2.04)%(5) (2.04)%(5)
Portfolio turnover rate 28% 28%
</Table>
(1) For the period February 27, 2004 (inception date) through April 30, 2004.
(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. Total
returns for periods less than one year are not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the period ended April 30, 2004 there
was no effect on the net operating expense ratio because of transfer agent
credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
42
<Page>
CREDIT SUISSE SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2004 -----------------------------------------------------------------
(UNAUDITED) 2003 2002 2001 2000 1999
-------------- --------- --------- --------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 18.14 $ 12.58 $ 15.38 $ 23.11 $ 16.60 $ 10.11
-------------- --------- --------- --------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss (0.12)(1) (0.18)(1) (0.18)(1) (0.18) (0.13) (0.13)
Net gain (loss) on investments (both
realized and unrealized) 0.98 5.74 (2.62) (7.55) 7.28 6.62
-------------- --------- --------- --------- --------- ---------
Total from investment operations 0.86 5.56 (2.80) (7.73) 7.15 6.49
-------------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- -- (0.64) --
-------------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 19.00 $ 18.14 $ 12.58 $ 15.38 $ 23.11 $ 16.60
============== ========= ========= ========= ========= =========
Total return(2) 4.74% 44.20% (18.21)% (33.45)% 43.65% 64.19%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s
omitted) $ 89,354 $ 77,236 $ 42,918 $ 36,445 $ 47,900 $ 9,020
Ratio of expenses to average net
assets(3) 1.40%(4) 1.40% 1.40% 1.40% 1.42% 1.41%
Ratio of net investment loss to
average net assets (1.24)%(4) (1.23)% (1.18)% (1.04)% (0.80)% (1.06)%
Decrease reflected in above
operating expense ratios due to
waivers/ reimbursements 0.53%(4) 0.71% 0.98% 0.54% 0.56% 2.13%
Portfolio turnover rate 38% 69% 72% 74% 94% 192%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
(3) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Common Class shares' net expense ratio by .02% and .01% for the
years ended October 31, 2000 and 1999, respectively. The Common Class
shares' operating expense ratio after reflecting these arrangements was
1.40% for the years ended October 31, 2000 and 1999, respectively. For the
six months ended April 30, 2004, and for the years ended October 31, 2003,
2002 and 2001, there was no effect on the net operating expense ratio
because of transfer agent credits.
(4) Annualized.
See Accompanying Notes to Financial Statements.
43
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout the Period)
<Table>
<Caption>
FOR THE PERIOD
ENDED
APRIL 30, 2004
(UNAUDITED)(1)
--------------
PER SHARE DATA
Net asset value, beginning of period $ 19.65
--------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.04)
Net loss on investments (both realized and unrealized) (0.62)
--------------
Total from investment operations (0.66)
--------------
NET ASSET VALUE, END OF PERIOD $ 18.99
==============
Total return(3) (3.36)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 1
Ratio of expenses to average net assets(4) 1.65%(5)
Ratio of net investment loss to average net assets (1.27)%(5)
Decrease reflected in above operating expense ratios due to
waivers/reimbursements 0.54%(5)
Portfolio turnover rate 38%
</Table>
(1) For the period February 27, 2004 (inception date) through April 30, 2004.
(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 period shown, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the period ended April 30, 2004 there
was no effect on the net operating expense ratio because of transfer agent
credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
44
<Page>
FINANCIAL HIGHLIGHTS
(For a Class A, Class B and Class C Share of the Fund Outstanding Throughout
Each Period)
<Table>
<Caption>
FOR THE SIX
MONTHS ENDED
APRIL 30, 2004 FOR THE YEAR ENDED OCTOBER 31,
(UNAUDITED) 2003 2002(1)
-------------- --------- ---------
CLASS A CLASS A CLASS A
-------------- --------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 18.14 $ 12.57 $ 16.88
-------------- --------- ---------
INVESTMENT OPERATIONS
Net investment loss(3) (0.12) (0.18) (0.15)
Net gain (loss) on investments
(both realized and unrealized) 0.97 5.75 (4.16)
-------------- --------- ---------
Total from investment operations 0.85 5.57 (4.31)
-------------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 18.99 $ 18.14 $ 12.57
============== ========= =========
Total return(4) 4.74% 44.31% (25.53)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 7,564 $ 920 $ 322
Ratio of expenses to average net assets(5) 1.40%(6) 1.40% 1.40%(6)
Ratio of net investment loss to average
net assets (1.24)%(6) (1.24)% (1.14)%(6)
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 0.55%(6) 0.71% 1.13%(6)
Portfolio turnover rate 38% 69% 72%
<Caption>
FOR THE PERIOD ENDED APRIL 30, 2004
(UNAUDITED)(2)
-----------------------------------
CLASS B CLASS C
--------- ---------
PER SHARE DATA
Net asset value, beginning of period $ 19.65 $ 19.65
--------- ---------
INVESTMENT OPERATIONS
Net investment loss(3) (0.06) (0.06)
Net gain (loss) on investments
(both realized and unrealized) (0.62) (0.62)
--------- ---------
Total from investment operations (0.68) (0.68)
--------- ---------
NET ASSET VALUE, END OF PERIOD $ 18.97 $ 18.97
========= =========
Total return(4) (3.46)% (3.46)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 1 $ 1
Ratio of expenses to average net assets(5) 2.15%(6) 2.15%(6)
Ratio of net investment loss to average
net assets (1.90)%(6) (1.90)%(6)
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 0.63%(6) 0.63%(6)
Portfolio turnover rate 38% 38%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) For the period February 27, 2004 (inception date) through April 30, 2004.
(3) Per share information is calculated using the average shares outstanding
method.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the six months ended April 30, 2004 and
for the years ended October 31, 2003 and 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
45
<Page>
CREDIT SUISSE STRATEGIC SMALL CAP FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, 2004 ENDED ENDED
(UNAUDITED) OCTOBER 31, 2003 OCTOBER 31, 2002(1)
------------------ ---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 11.94 $ 9.54 $ 10.00
------------------ ---------------- -------------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.06) (0.11) (0.02)
Net gain (loss) on investments
(both realized and unrealized) 1.03 3.05 (0.44)
------------------ ---------------- -------------------
Total from investment operations 0.97 2.94 (0.46)
------------------ ---------------- -------------------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.67) (0.54) --
Distributions from net realized gains (0.39) -- --
------------------ ---------------- -------------------
Total dividends and distributions (1.06) -- --
------------------ ---------------- -------------------
NET ASSET VALUE, END OF PERIOD $ 11.85 $ 11.94 $ 9.54
================== ================ ===================
Total return(3) 8.23% 32.59% (4.60)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 598 $ 593 $ 381
Ratio of expenses to average net assets(4) 1.40%(5) 1.40% 1.40%(5)
Ratio of net investment loss to average
net assets (0.94)%(5) (1.10)% (0.90)%(5)
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 12.95%(5) 29.89% 39.96%(5)
Portfolio turnover rate 56% 71% 33%
</Table>
(1) For the period August 15, 2002 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the six months ended April 30, 2004 and
for the years ended October 31, 2003 and 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
46
<Page>
(For a Class B Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, 2004 ENDED ENDED
(UNAUDITED) OCTOBER 31, 2003 OCTOBER 31, 2002(1)
------------------ ---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 11.86 $ 9.52 $ 10.00
------------------ ---------------- -------------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.10) (0.18) (0.03)
Net gain (loss) on investments
(both realized and unrealized) 1.02 3.04 (0.45)
------------------ ---------------- -------------------
Total from investment operations 0.92 2.86 (0.48)
------------------ ---------------- -------------------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.59) (0.52) --
Distributions from net realized gains (0.39) -- --
------------------ ---------------- -------------------
Total dividends and distributions (0.98) (0.52) --
------------------ ---------------- -------------------
NET ASSET VALUE, END OF PERIOD $ 11.80 $ 11.86 $ 9.52
================== ================ ===================
Total return(3) 7.87% 31.54% (4.80)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 361 $ 356 $ 286
Ratio of expenses to average net assets(4) 2.15%(5) 2.15% 2.15%(5)
Ratio of net investment loss to average
net assets (1.69)%(5) (1.85)% (1.65)%(5)
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 12.95%(5) 29.89% 39.96%(5)
Portfolio turnover rate 56% 71% 33%
</Table>
(1) For the period August 15, 2002 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the six months ended April 30, 2004 and
for the years ended October 31, 2003 and 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
47
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE SIX MONTHS
ENDED FOR THE YEAR FOR THE PERIOD
APRIL 30, 2004 ENDED ENDED
(UNAUDITED) OCTOBER 31, 2003 OCTOBER 31, 2002(1)
------------------ ---------------- -------------------
PER SHARE DATA
Net asset value, beginning of period $ 11.86 $ 9.52 $ 10.00
------------------ ---------------- -------------------
INVESTMENT OPERATIONS
Net investment loss(2) (0.10) (0.18) (0.03)
Net gain (loss) on investments
(both realized and unrealized) 1.02 3.04 (0.45)
------------------ ---------------- -------------------
Total from investment operations 0.92 2.86 (0.48)
------------------ ---------------- -------------------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.59) (0.52) --
Distributions from net realized gains (0.39) -- --
------------------ ---------------- -------------------
Total dividends and distributions (0.98) (0.52) --
------------------ ---------------- -------------------
NET ASSET VALUE, END OF PERIOD $ 11.80 $ 11.86 $ 9.52
================== ================ ===================
Total return(3) 7.87% 31.54% (4.80)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 361 $ 362 $ 286
Ratio of expenses to average net assets(4) 2.15%(5) 2.15% 2.15%(5)
Ratio of net investment loss to average
net assets (1.69)%(5) (1.85)% (1.65)%(5)
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 12.95%(5) 29.89% 39.96%(5)
Portfolio turnover rate 56% 71% 33%
</Table>
(1) For the period August 15, 2002 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the six months ended April 30, 2004 and
for the years ended October 31, 2003 and 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
48
<Page>
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 2004 (unaudited)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Credit Suisse Funds covered in this report are Credit Suisse Capital
Appreciation Fund ("Capital Appreciation"), Credit Suisse Mid-Cap Growth Fund,
formerly Credit Suisse Emerging Growth Fund ("Mid-Cap Growth"), Credit Suisse
Small Cap Growth Fund ("Small Cap Growth"), and Credit Suisse Strategic Small
Cap Fund ("Strategic Small Cap"), which are registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as open-end management
investment companies. Capital Appreciation, Mid-Cap Growth and Small Cap Growth
are diversified as defined in the 1940 Act. Strategic Small Cap is
non-diversified. Capital Appreciation was organized under the laws of the
Commonwealth of Massachusetts as a business trust on January 20, 1987. Mid-Cap
Growth, Small Cap Growth and Strategic Small Cap were incorporated under the
laws of the State of Maryland on November 12, 1987, October 31, 1996, and June
26, 2001, respectively.
Investment objectives for each Fund are as follows: Capital Appreciation
seeks long-term capital appreciation, Mid-Cap Growth seeks maximum capital
appreciation, Small Cap Growth seeks growth of capital and Strategic Small Cap
seeks capital appreciation.
Capital Appreciation, Mid-Cap Growth and Small Cap Growth offer five classes
of shares, Common Class, Advisor Class, Class A, Class B, and Class C shares.
Strategic Small Cap offers three classes of shares, Class A, Class B and Class C
shares. Effective December 12, 2001, Capital Appreciation, Mid-Cap Growth and
Small Cap Growth closed Common Class shares to new investors. Each class of
shares in each Fund represents an equal pro rata interest in each Fund, except
that they bear different expenses, which reflect the difference in the range of
services provided to them. Class A shares of each Fund are sold subject to a
maximum front-end sales charge of 5.75%. Class B shares are sold subject to a
contingent deferred sales charge which declines from 4.00% to zero depending on
the period of time the shares are held. Class C shares are sold subject to a
contingent deferred sales charge of 1.00% if the shares are redeemed within the
first year of purchase.
A) SECURITY VALUATION -- The net asset value of each Fund is determined daily
as of the close of regular trading on the New York Stock Exchange, Inc. (the
"Exchange") on each day the Exchange is open for business. Each Fund's equity
investments are valued at market value, which is generally determined using the
closing price on the exchange or market on which the security is primarily
traded at the time of valuation (the "Valuation Time"). If no sales are
reported, equity investments are generally valued at the
49
<Page>
most recent bid quotation as of the Valuation Time or at the lowest asked
quotation in the case of a short sale of securities. Debt securities with a
remaining maturity greater than 60 days are valued in accordance with the price
supplied by a pricing service, which may use a matrix, formula or other
objective method that takes into consideration market indices, yield curves and
other specific adjustments. Debt obligations that will mature in 60 days or less
are valued on the basis of amortized cost, which approximates market value,
unless it is determined that this method would not represent fair value.
Securities and other assets for which market quotations are not readily
available, or whose values have been materially affected by events occurring
before each Fund's Valuation Time but after the close of the securities' primary
markets, are valued at fair value as determined in good faith by, or under the
direction of, the Board of Trustees/Directors under procedures established by
the Board of Trustees/Directors. The Funds may utilize a service provided by an
independent third party which has been approved by the Board of
Trustees/Directors to fair value certain Funds' portfolio securities.
B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Funds are
maintained in U.S. dollars. Transactions denominated in foreign currencies are
recorded at the current prevailing exchange rates. All assets and liabilities
denominated in foreign currencies are translated into U.S. dollar amounts at the
current exchange rate at the end of the period. Translation gains or losses
resulting from changes in the exchange rate during the reporting period and
realized gains and losses on the settlement of foreign currency transactions are
reported in the results of operations for the current period. The Funds do not
isolate that portion of realized gains and losses on investments in equity
securities which is due to changes in the foreign exchange rate from that which
is due to changes in market prices of equity securities. The Funds isolate that
portion of realized gains and losses on investments in debt securities which is
due to changes in the foreign exchange rate from that which is due to changes in
market prices of debt securities.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date. Certain expenses are
class-specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon the relative net asset value
of the outstanding shares of that class. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
50
<Page>
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income and distributions of net realized capital gains, if any, are
declared and paid at least annually. However, to the extent that a net realized
capital gain can be reduced by a capital loss carryforward, such gain will not
be distributed. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from accounting
principles generally accepted in the United States of America ("GAAP").
E) FEDERAL INCOME TAXES -- No provision is made for federal taxes, as it is
each Fund's intention to continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code of
1986, as amended, and make the requisite distributions to its shareholders,
which will be sufficient to relieve it from federal income and excise taxes.
F) USE OF ESTIMATES -- The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from these estimates.
G) SHORT-TERM INVESTMENTS -- The Funds, together with other funds/portfolios
advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect,
wholly-owned subsidiary of Credit Suisse Group, pool available cash into a
short-term variable rate time deposit issued by State Street Bank and Trust
Company ("SSB"), the Funds' custodian, or a money market fund advised by CSAM.
The short-term time deposit issued by SSB is a variable rate account classified
as a short-term investment.
H) SECURITIES LENDING -- Loans of securities are required at all times to be
secured by collateral at least equal to 102% of the market value of domestic
securities on loan (including any accrued interest thereon) and 105% of the
market value of foreign securities on loan (including any accrued interest
thereon). Cash collateral received by the Funds in connection with securities
lending activity may be pooled together with cash collateral for other
funds/portfolios advised by CSAM and may be invested in a variety of
investments, including certain CSAM-advised funds, funds advised by SSB, the
Funds' securities lending agent or money market instruments. However, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
51
<Page>
The market value of securities on loan to brokers and the value of collateral
held by each Fund with respect to such loans at April 30, 2004 are as follows:
<Table>
<Caption>
MARKET VALUE OF VALUE OF
FUND SECURITIES LOANED COLLATERAL RECEIVED
---- ----------------- -------------------
Capital Appreciation $ 13,212,656 $ 13,947,838
Mid-Cap Growth 59,397,336 62,464,370
Small Cap Growth 22,964,910 24,130,809
Strategic Small Cap 335,589 349,940
</Table>
Prior to March 17, 2004, Credit Suisse First Boston ("CSFB"), an affiliate of
CSAM, had been engaged by the Funds to act as the Funds' securities lending
agent.
Effective March 17, 2004, SSB has been engaged by the Funds to act as the
Funds' securities lending agent. The Funds' securities lending arrangement
provides that the Funds and SSB will share the net income earned from securities
lending activities, with each Fund receiving 70% and SSB receiving 30% of the
earnings from the investment of cash collateral or any other securities lending
income in accordance with the provisions of the securities lending agency
agreement. Securities lending income is accrued as earned.
I) OTHER -- The Funds may invest in securities of foreign countries and
governments, which involves certain risks in addition to those inherent in
domestic investments. Such risks generally include, among others, currency risks
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.
Other risks of investing in foreign securities include liquidity and
valuation risks. The Funds may be subject to taxes imposed by countries in which
they invest, with respect to their investments in issuers existing or operating
in such countries. Such taxes are generally based on income earned or
repatriated and capital gains realized on the sale of such investments. These
Funds accrue such taxes when the related income or gains are earned.
Each of Capital Appreciation and Mid-Cap Growth may invest up to 10% of its
total assets in non-publicly traded securities. Each of Small Cap Growth and
Strategic Small Cap may invest up to 15% of its net assets in such securities.
Non-publicly traded securities may be less liquid than publicly
52
<Page>
traded securities. Although these securities may be resold in privately
negotiated transactions, the prices realized from such sales could differ from
the price originally paid by such Fund or the current carrying values, and the
difference could be material.
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser to each Fund. For its investment advisory
services, CSAM is entitled to receive a fee from each Fund based on the
following fee schedule:
<Table>
<Caption>
FUND ANNUAL RATE
---- -----------
Capital Appreciation 0.70% of average daily net assets
Mid-Cap Growth 0.90% of average daily net assets
Small Cap Growth 1.00% of average daily net assets
Strategic Small Cap 0.95% of average daily net assets
</Table>
For the six months ended April 30, 2004, investment advisory fees earned,
voluntarily waived, and expenses reimbursed for the Funds were as follows:
<Table>
<Caption>
GROSS NET
ADVISORY ADVISORY EXPENSE
FUND FEE WAIVER FEE REIMBURSEMENT
---- ----------- --------- ----------- -------------
Capital Appreciation $ 1,831,098 $ -- $ 1,831,098 $ --
Mid-Cap Growth 2,053,089 -- 2,053,089 --
Small Cap Growth 445,475 (235,819) 209,656 --
Strategic Small Cap 6,444 (6,444) -- (81,404)
</Table>
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as each Fund's co-administrators.
For 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 six months ended April 30, 2004, co-administrative services fees
earned by CSAMSI were as follows:
<Table>
<Caption>
FUND CO-ADMINISTRATION FEE
---- ---------------------
Capital Appreciation $ 261,586
Mid-Cap Growth 228,121
Small Cap Growth 44,547
Strategic Small Cap 678
</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
53
<Page>
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 six months ended April 30, 2004, co-administrative service fees
earned by SSB (including out-of-pocket fees) were as follows:
<Table>
<Caption>
FUND CO-ADMINISTRATION FEE
---- ---------------------
Capital Appreciation $ 143,652
Mid-Cap Growth 126,419
Small Cap Growth 27,454
Strategic Small Cap 3,476
</Table>
In addition to serving as each Fund's co-administrator, CSAMSI currently
serves as distributor of each Fund's shares. Pursuant to distribution plans
adopted by each Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. This fee is calculated at an annual rate of
0.25% of the average daily net assets of the Common Class shares of Small Cap
Growth. For the Advisor Class shares of Capital Appreciation, Mid-Cap Growth and
Small Cap Growth, the shareholder servicing fee is calculated at an annual rate
of 0.50% of the average daily net assets. For the Class A shares of each Fund,
the fee is calculated at an annual rate of 0.25% of average daily net assets.
For the Class B and Class C shares of each Fund, the fee is calculated at an
annual rate of 1.00% of average daily net assets.
Certain brokers, dealers and financial representatives provide transfer agent
related services to the Funds, and receive compensation for these services from
CSAM. CSAM is then reimbursed by the Funds. For the six months ended April 30,
2004, the Funds reimbursed CSAM the following amounts, which are included in
each Fund's transfer agent expense as follows:
<Table>
<Caption>
FUND AMOUNT
---- ---------
Capital Appreciation $ 417,075
Mid-Cap Growth 485,247
Small Cap Growth 98,373
Strategic Small Cap --
</Table>
54
<Page>
For the period November 1, 2003 through March 16, 2004, CSFB received fees
for its securities lending activities as follows:
<Table>
<Caption>
FUND AMOUNT
---- --------
Capital Appreciation $ 630
Mid-Cap Growth 1,875
Small Cap Growth --
Strategic Small Cap --
</Table>
For the six months ended April 30, 2004, CSAMSI and its affiliates advised
the Funds that it retained the following amounts from commissions earned on the
sale of the Funds' Class A shares:
<Table>
<Caption>
FUND AMOUNT
---- --------
Capital Appreciation $ 527
Mid-Cap Growth 1,993
Small Cap Growth 1,666
Strategic Small Cap 785
</Table>
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Funds to provide certain financial printing and fulfillment services. For
the six months ended April 30, 2004, Merrill was paid for its services by the
Funds as follows:
<Table>
<Caption>
FUND AMOUNT
---- --------
Capital Appreciation $ 6,241
Mid-Cap Growth 6,570
Small Cap Growth 6,570
Strategic Small Cap 6,570
</Table>
NOTE 3. LINE OF CREDIT
The Funds, together with other funds/portfolios advised by CSAM
(collectively, the "Participating Funds"), participate in a $75 million
committed, unsecured line of credit facility ("Credit Facility") for temporary
or emergency purposes with Deutsche Bank, A.G. as administrative agent and
syndication agent and SSB as operations agent. Under the terms of the Credit
Facility, the Participating Funds pay an aggregate commitment fee at a rate of
0.10% per annum on the average unused amount of the Credit Facility, which is
allocated among the Participating Funds in such manner as is determined by the
governing Boards of the Participating Funds. In addition, the Participating
Funds pay interest on borrowings at the Federal Funds rate plus 0.50%. At April
30, 2004 and during the six months ended April 30, 2004, the Funds had no
borrowings under the Credit Facility.
55
<Page>
NOTE 4. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2004, purchases and sales of investment
securities (excluding short-term investments) were as follows:
<Table>
<Caption>
FUND PURCHASES SALES
---- ------------- -------------
Capital Appreciation $ 211,927,130 $ 269,113,956
Mid-Cap Growth 123,958,103 164,576,949
Small Cap Growth 43,356,345 31,520,900
Strategic Small Cap 753,703 726,073
</Table>
At April 30, 2004, 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 UNREALIZED GROSS UNREALIZED NET UNREALIZED
FUND IDENTIFIED COST APPRECIATION (DEPRECIATION) APPRECIATION
---- --------------- ---------------- ------------------- --------------
Capital Appreciation $ 466,713,293 $ 78,569,555 $ (32,367,056) $ 46,202,499
Mid-Cap Growth 458,880,713 87,356,209 (25,393,298) 61,962,911
Small Cap Growth 110,203,345 15,204,854 (4,257,326) 10,947,528
Strategic Small Cap 1,487,407 239,018 (59,355) 179,663
</Table>
NOTE 5. RESTRICTED SECURITIES
Certain investments of the Funds are restricted as to resale and are valued
at fair value as determined in good faith by or under the direction of the Board
of Trustees/Directors under procedures established by the Board of
Trustees/Directors in the absence of readily ascertainable market values. The
table below shows the number of shares held, the acquisition dates, aggregate
cost, fair value as of April 30, 2004, value per share of such security and
percentage of net assets that the securities represent.
<Table>
<Caption>
PERCENTAGE
SECURITY NUMBER ACQUISITION FAIR VALUE PER OF NET ASSET
FUND DESCRIPTION OF SHARES DATE COST VALUE SHARE VALUE
---- --------------- --------- ----------- ----------- ----- --------- ------------
Mid-Cap Growth Celletra Ltd 1,105,524 4/5/2000 $ 7,000,000 $ -- $ -- 0.00%
Small Cap Growth Planetweb, Inc. 27,600 9/8/2000 149,913 643 0.02 0.00%
</Table>
NOTE 6. CAPITAL SHARE TRANSACTIONS
Capital Appreciation is authorized to issue an unlimited number of full and
fractional shares of beneficial interest. Each of Mid-Cap Growth and Small Cap
Growth has four billion full and fractional shares of capital stock authorized.
Strategic Small Cap has three billion full and fractional shares of capital
stock authorized. Mid-Cap Growth has one billion and Small Cap Growth has two
billion shares classified as Common Class shares.
56
<Page>
Mid-Cap Growth has two billion and Small Cap Growth has one billion shares
classified as Advisor Class shares. Each of Mid-Cap Growth, Small Cap Growth and
Strategic Small Cap has one billion shares classified as Class A shares.
Strategic Small Cap has one billion shares classified as Class B shares and
Class C shares. Each Fund has a par value of $.001 per share. Transactions in
classes of each Fund were as follows:
<Table>
<Caption>
CAPITAL APPRECIATION
----------------------------------------------------------------------
COMMON CLASS
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 2,210,002 $ 33,925,011 6,096,105 $ 80,336,248
Shares redeemed (5,814,912) (89,036,181) (16,395,532) (213,752,796)
-------------- -------------- --------------- ---------------
Net decrease (3,604,910) $ (55,111,170) (10,299,427) $ (133,416,548)
============== ============== =============== ===============
<Caption>
CAPITAL APPRECIATION
----------------------------------------------------------------------
ADVISOR CLASS
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 106,651 $ 1,587,729 363,509 $ 4,570,624
Shares redeemed (223,465) (3,335,608) (516,459) (6,499,704)
-------------- -------------- --------------- ---------------
Net decrease (116,814) $ (1,747,879) (152,950) $ (1,929,080)
============== ============== =============== ===============
<Caption>
CAPITAL APPRECIATION
----------------------------------------------------------------------
CLASS A
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 44,321 $ 689,208 59,616 $ 810,749
Shares redeemed (14,898) (228,108) (17,150) (229,812)
-------------- -------------- --------------- ---------------
Net increase 29,423 $ 461,100 42,466 $ 580,937
============== ============== =============== ===============
<Caption>
CAPITAL APPRECIATION
----------------------------------------------------------------------
CLASS B
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 2,504 $ 38,584 31,099 $ 411,329
Shares redeemed (3,327) (48,859) (10,030) (121,559)
-------------- -------------- --------------- ---------------
Net increase (decrease) (823) $ (10,275) 21,069 $ 289,770
============== ============== =============== ===============
</Table>
57
<Page>
<Table>
<Caption>
CAPITAL APPRECIATION
----------------------------------------------------------------------
CLASS C
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 18,182 $ 268,693 10,123 $ 141,430
Shares redeemed (264) (4,117) (2,182) (27,258)
-------------- -------------- --------------- ---------------
Net increase 17,918 $ 264,576 7,941 $ 114,172
============== ============== =============== ===============
<Caption>
MID-CAP GROWTH
----------------------------------------------------------------------
COMMON CLASS
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 1,799,314 $ 51,766,008 3,872,754 $ 85,663,702
Shares redeemed (2,569,605) (73,032,626) (7,524,829) (159,014,240)
-------------- -------------- --------------- ---------------
Net decrease (770,291) $ (21,266,618) (3,652,075) $ (73,350,538)
============== ============== =============== ===============
<Caption>
MID-CAP GROWTH
----------------------------------------------------------------------
ADVISOR CLASS
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 416,237 $ 11,073,556 713,469 $ 15,298,835
Shares redeemed (738,885) (19,340,847) (1,506,326) (30,566,605)
-------------- -------------- --------------- ---------------
Net decrease (322,648) $ (8,267,291) (792,857) $ (15,267,770)
============== ============== =============== ===============
<Caption>
MID-CAP GROWTH
----------------------------------------------------------------------
CLASS A
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 14,770 $ 419,604 2,762 $ 65,730
Shares redeemed (1,825) (51,220) (1) (26)
-------------- -------------- --------------- ---------------
Net increase 12,945 $ 368,384 2,761 $ 65,704
============== ============== =============== ===============
<Caption>
MID-CAP GROWTH
----------------------------------------------------------------------
CLASS B CLASS C
-------------------------------- ----------------------------------
FOR THE PERIOD ENDED FOR THE PERIOD ENDED
APRIL 30, 2004 (UNAUDITED)(1) APRIL 30, 2004 (UNAUDITED)(1)
-------------------------------- ----------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 264 $ 8,000 34 $ 1,000
-------------- -------------- --------------- ---------------
Net increase 264 $ 8,000 34 $ 1,000
============== ============== =============== ===============
</Table>
58
<Page>
<Table>
<Caption>
SMALL CAP GROWTH
----------------------------------------------------------------------
COMMON CLASS
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 1,533,266 $ 29,749,310 2,756,033 $ 40,668,973
Shares redeemed (1,087,501) (20,470,604) (1,910,389) (26,349,264)
-------------- -------------- --------------- ---------------
Net increase 445,765 $ 9,278,706 845,644 $ 14,319,709
============== ============== =============== ===============
<Caption>
SMALL CAP GROWTH
--------------------------------
ADVISOR CLASS
--------------------------------
FOR THE PERIOD ENDED
APRIL 30, 2004 (UNAUDITED)(1)
--------------------------------
SHARES VALUE
-------------- --------------
Shares sold 51 $ 1,000
-------------- --------------
Net increase 51 $ 1,000
============== ==============
<Caption>
SMALL CAP GROWTH
----------------------------------------------------------------------
CLASS A
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 375,920 $ 6,947,380 36,233 $ 593,432
Shares redeemed (28,407) (545,757) (11,111) (173,299)
-------------- -------------- --------------- ---------------
Net increase 347,513 $ 6,401,623 25,122 $ 420,133
============== ============== =============== ===============
<Caption>
SMALL CAP GROWTH
----------------------------------------------------------------------
CLASS B CLASS C
-------------------------------- ----------------------------------
FOR THE PERIOD ENDED FOR THE PERIOD ENDED
APRIL 30, 2004 (UNAUDITED)(1) APRIL 30, 2004 (UNAUDITED)(1)
-------------------------------- ----------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 51 $ 1,000 51 $ 1,000
-------------- -------------- --------------- ---------------
Net increase 51 $ 1,000 51 $ 1,000
============== ============== =============== ===============
<Caption>
STRATEGIC SMALL CAP
----------------------------------------------------------------------
CLASS A
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 1,812 $ 22,240 12,591 $ 124,050
Shares issued in reinvestment
of dividends and distributions 876 10,409 -- --
Shares redeemed (1,887) (23,325) (2,917) (28,005)
-------------- -------------- --------------- ---------------
Net increase 801 $ 9,324 9,674 $ 96,045
============== ============== =============== ===============
</Table>
59
<Page>
<Table>
<Caption>
STRATEGIC SMALL CAP
----------------------------------------------------------------------
CLASS B
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold 568 $ 7,000 -- $ --
-------------- -------------- --------------- ---------------
Net increase 568 $ 7,000 -- $ --
============== ============== =============== ===============
<Caption>
STRATEGIC SMALL CAP
----------------------------------------------------------------------
CLASS C
----------------------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2004 (UNAUDITED) OCTOBER 31, 2003
----------------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- --------------- ---------------
Shares sold -- $ -- 550 $ 4,590
Shares issued in reinvestment
of dividends and
distributions 46 548 -- --
-------------- -------------- --------------- ---------------
Net increase 46 $ 548 550 $ 4,590
============== ============== =============== ===============
</Table>
(1) For the period February 27, 2004 (inception date) through April 30, 2004.
On April 30, 2004, the number of shareholders that held 5% or more of the
outstanding shares of each Fund were as follows:
<Table>
<Caption>
NUMBER OF APPROXIMATE PERCENTAGE
FUND SHAREHOLDERS OF OUTSTANDING SHARES
---- ------------ ----------------------
Capital Appreciation
Common 3 38%
Advisor 2 66%
Class A 5 61%
Class B 6 73%
Class C 3 79%
Mid-Cap Growth
Common 3 51%
Advisor 1 90%
Class A 4 76%
Class B 2 99%
Small Cap Growth
Common 2 93%
Strategic Small Cap
Class A 3 90%
Class B 1 98%
Class C 1 98%
</Table>
Some of the shareholders are omnibus accounts, which hold shares on behalf of
individual shareholders.
60
<Page>
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.
61
<Page>
CREDIT SUISSE FUNDS
PRIVACY POLICY NOTICE
IMPORTANT PRIVACY CHOICES FOR CONSUMERS
We are committed to maintaining the privacy of every current and prospective
customer. We recognize that you entrust important personal information to us,
and we wish to assure you that we take seriously our responsibilities in
protecting and safeguarding this information.
In connection with making available investment products and services to
current and potential customers, we may obtain nonpublic personal information
about you. This information may include your name, address, e-mail address,
social security number, account number, assets, income, financial situation,
transaction history and other personal information.
We may collect nonpublic information about you from the following sources:
- Information we receive on applications, forms, questionnaires, web sites,
agreements or in the course of establishing or maintaining a customer
relationship; and
- Information about your transactions with us, our affiliates, or others.
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except with your consent or as otherwise permitted
by law.
RESTRICT INFORMATION SHARING WITH AFFILIATES: In cases where we believe that
additional products and services may be of interest to you, we may share the
information described above with our affiliates unless you say "No."
/ / No, please do not share personal and financial information with your
affiliated companies. [If you check this box, you must send this notice
back to us with your name, address and account number to Credit Suisse
Funds, 466 Lexington Avenue, New York, New York 10017.]
We may also disclose this information to firms that perform services on our
behalf. These agents and service providers are required to treat the information
confidentially and use it only for the purpose for which it is provided.
We restrict access to nonpublic personal information about you to those
employees, agents or other parties who need to know that information to provide
products or services to you or in connection with your investments with or
through us. We maintain physical, electronic and procedural safeguards that
comply with federal standards to guard your nonpublic personal information.
NOTE: THIS NOTICE IS PROVIDED TO CLIENTS AND PROSPECTIVE CLIENTS OF CREDIT
SUISSE ASSET MANAGEMENT, LLC ("CSAM"), CSAM CAPITAL INC., AND CREDIT SUISSE
ASSET MANAGEMENT SECURITIES, INC., AND SHAREHOLDERS AND PROSPECTIVE SHAREHOLDERS
IN CSAM-SPONSORED AND-ADVISED INVESTMENT COMPANIES, INCLUDING CREDIT SUISSE
FUNDS, AND OTHER CONSUMERS AND CUSTOMERS, AS APPLICABLE. THIS NOTICE IS NOT
INTENDED TO BE INCORPORATED IN ANY OFFERING MATERIALS BUT IS MERELY A STATEMENT
OF OUR CURRENT PRIVACY POLICY, AND MAY BE AMENDED FROM TIME TO TIME UPON NOTICE
TO YOU. THIS NOTICE IS DATED AS OF MAY 19, 2004.
62
<Page>
CREDIT SUISSE FUNDS
PROXY VOTING (unaudited)
The policies and procedures that the Funds use to determine how to vote
proxies relating to their portfolio securities are available:
- By calling 1-800-927-2874
- On the Funds' website, www.csam.com/us
- On the website of the Securities and Exchange Commission,
http://www.sec.gov.
63
<Page>
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<Page>
P.O. BOX 55030, BOSTON, MA 02205-5030 [CREDIT SUISSE ASSET MANAGEMENT LOGO]
800-927-2874 - www.csam.com/us
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. CSGTH-3-0404
<Page>
ITEM 2. CODE OF ETHICS.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. SCHEDULE OF INVESTMENTS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
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.
The Nominating Committee recommends Board member candidates. Shareholders of the
registrant may also submit nominees that will be considered by the Committee.
Recommendations should be mailed to the registrant's Secretary, c/o Credit
Suisse Asset Management, LLC, 466 Lexington Avenue, New York, NY 10017. Any
submission should include at a minimum the following information: the name, age,
business address, residence address and principal occupation or employment of
such individual; the class, series and number of shares of the registrant that
are beneficially owned by such individual; the date such shares were acquired
and the investment intent of such acquisition; whether such shareholder believes
such individual is, or is not, an "interested person" of the registrant (as
defined in the Investment Company Act of 1940) and information regarding such
individual that is sufficient, in the Committee's discretion, to make such
determination; and all other information relating to such individual that is
required to be disclosed in solicitation of proxies for election of directors in
an election contest (even if an election contest is not involved) or is
otherwise required pursuant to the rules for proxy materials under the
Securities Exchange Act of 1934.
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
<Page>
principal financial officer concluded that the registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940 (the "Act")) were effective based on their evaluation of the disclosure
controls and procedures required by Rule 30a-3(b) under the Act and Rules
13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.
(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
registrant's second fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Not applicable.
(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.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
CREDIT SUISSE CAPITAL APPRECIATION FUND
/s/ Joseph D. Gallagher
-----------------------
Name: Joseph D. Gallagher
Title: Chief Executive Officer
Date: July 6, 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: July 6, 2004
/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: July 6, 2004