<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-5039
----------------------------------------
CREDIT SUISSE FIXED INCOME FUND
-------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
---------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
J. Kevin Gao, Esq.
Credit Suisse Fixed Income 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
Date of reporting period: November 1, 2003 to October 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
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[CREDIT SUISSE ASSET MANAGEMENT LOGO]
CREDIT SUISSE FUNDS
ANNUAL REPORT
OCTOBER 31, 2004
- - CREDIT SUISSE
FIXED INCOME FUND
THE FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES (WHICH SHOULD BE
CONSIDERED CAREFULLY BEFORE INVESTING), AND MORE COMPLETE INFORMATION ABOUT THE
FUND, ARE PROVIDED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE
INVESTING. YOU MAY OBTAIN ADDITIONAL COPIES BY CALLING 800-927-2874 OR BY
WRITING TO CREDIT SUISSE FUNDS, P.O. BOX 55030, BOSTON, MA 02205-5030.
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR, IS LOCATED AT 466
LEXINGTON AVE., NEW YORK, NY 10017-3140. CREDIT SUISSE FUNDS ARE ADVISED BY
CREDIT SUISSE ASSET MANAGEMENT, LLC.
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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 FUND'S MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND THE FUND
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF OCTOBER 31, 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 FIXED INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2004 (unaudited)
November 24, 2004
Dear Shareholders:
PERFORMANCE SUMMARY
11/01/03 - 10/31/04
<Table>
<Caption>
SHARE CLASS/BENCHMARK PERFORMANCE
Common(1) 5.95%
Advisor(1) 5.42%
Class A(1),(2) 5.68%
Class B(1),(2) 4.90%
Class C(1),(2) 4.79%
Lehman Brothers US Aggregate Bond Index(3) 5.53%
</Table>
Performance for the Fund's Class A, Class B and Class C shares is without the
maximum sales charge of 4.75%, 4.00% and 1.00%, respectively.(3)
MARKET OVERVIEW: POSITIVE BUT CHOPPY YEAR FOR BONDS
Bond prices rallied early in the fiscal year. Global economic growth was
slow, employment numbers were below expectations and market sentiment was
generally shaken. The U.S. dollar weakened and oil prices exhibited upward
pressure. As usual, the sour economic news came as music to the ears of bond
investors. Prices of U.S. Treasury securities, which tend to set the tone for
bonds generally, additionally benefited from significant purchases by Asian
central banks seeking to support the U.S. dollar and investors seeking a risk
averse haven in response to geopolitical uncertainty.
All of this changed rapidly, however, with the release of a
better-than-expected March U.S. payroll report on April 2. It served as a
catalyst reversing the bond market's upward course. By the end of June, yields
had risen sharply across the maturity spectrum in response to falling bond
prices. The U.S. dollar, buoyed by the strong employment report, rose 8% against
the euro and yen.
As the year wore on, the market turned yet again. Having accommodated to the
steady consistency of the Fed's interest rate increases, bonds rallied on signs
of economic slack in late October that pushed yields to yearly lows. Employment
numbers disappointed and data suggested that industrial output might be slowing.
The threat of inflation, as measured by growth in the Consumer Price Index,
seemed remote, despite rising commodity prices, notably in oil.
1
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STRATEGIC REVIEW: OUTPERFORMANCE FROM A WIDE RANGE OF FACTORS
The Fund (with the exception of its Advisor, Class B and C shares)
outperformed the broad fixed income market (as represented by the Fund's
benchmark) due to the collective impact of several elements of our strategy:
- We maintained exposure to non-benchmark sectors that greatly outperformed
investment-grade securities: high yield corporates, global bonds and, to a
lesser extent, emerging market debt.
- We enjoyed good security selection in spread sectors. This was especially
true in mortgage-backed securities.
- We enjoyed good relative performance in investment-grade corporates
boosted by strong performance in our BBB credits. Wide diversification in
terms of the number of individual issuers whose bonds we owned moderated
the risk in these lower quality credits.
- Currency was a positive contributor. The Fund benefited from being
underweight the U.S. dollar and British pound and overweight the
Australian dollar.
The most negative contribution to the Fund's overall return came from our
duration positioning. We chose to keep the portfolio's average duration (a
measure of sensitivity to interest rates) somewhat lower than its benchmark, out
of concern that rising economic activity might push bond yields higher. This
cost some relative performance as yields moderated for the period contrary to
our expectation.
2
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OUTLOOK:
- Although economic recovery has not proceeded smoothly, we feel it has
taken hold.
- Expecting high energy prices to persist, we are overweighting sectors
that, in our view, stand to benefit: energy suppliers, including
utilities, and oil exporters' sovereign debt.
- We are prepared to establish a position in TIPS as inflation expectations
warrant.
Credit Suisse Fixed Income Management Team
Jo Ann Corkran
Michael Buchanan
Kevin D. Barry
Suzanne E. Moran
Craig Ruch
David N. Fisher
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKETS,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
3
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[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE FIXED INCOME FUND(1) COMMON CLASS SHARES
AND THE LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX(3)
FOR TEN YEARS.
<Table>
<Caption>
CREDIT SUISSE FIXED INCOME LEHMAN BROTHERS U.S. AGGREGATE
FUND(1) -- COMMON CLASS BOND INDEX(3)
10/31/94 $ 10,000 $ 10,000
11/30/94 $ 9,964 $ 9,978
12/31/94 $ 10,006 $ 10,047
1/31/95 $ 10,087 $ 10,246
2/28/95 $ 10,261 $ 10,490
3/31/95 $ 10,230 $ 10,554
4/30/95 $ 10,387 $ 10,701
5/31/95 $ 10,739 $ 11,116
6/30/95 $ 10,825 $ 11,197
7/31/95 $ 10,867 $ 11,174
8/31/95 $ 11,016 $ 11,309
9/30/95 $ 11,133 $ 11,419
10/31/95 $ 11,259 $ 11,568
11/30/95 $ 11,356 $ 11,741
12/31/95 $ 11,520 $ 11,906
1/31/96 $ 11,631 $ 11,984
2/29/96 $ 11,524 $ 11,776
3/31/96 $ 11,472 $ 11,693
4/30/96 $ 11,414 $ 11,628
5/31/96 $ 11,467 $ 11,604
6/30/96 $ 11,533 $ 11,760
7/31/96 $ 11,571 $ 11,792
8/31/96 $ 11,627 $ 11,772
9/30/96 $ 11,812 $ 11,976
10/31/96 $ 12,024 $ 12,242
11/30/96 $ 12,235 $ 12,452
12/31/96 $ 12,228 $ 12,336
1/31/97 $ 12,303 $ 12,374
2/28/97 $ 12,393 $ 12,405
3/31/97 $ 12,293 $ 12,267
4/30/97 $ 12,405 $ 12,451
5/31/97 $ 12,527 $ 12,570
6/30/97 $ 12,676 $ 12,719
7/31/97 $ 12,993 $ 13,063
8/31/97 $ 12,902 $ 12,952
9/30/97 $ 13,083 $ 13,143
10/31/97 $ 13,200 $ 13,334
11/30/97 $ 13,223 $ 13,395
12/31/97 $ 13,305 $ 13,530
1/31/98 $ 13,509 $ 13,704
2/28/98 $ 13,461 $ 13,693
3/31/98 $ 13,501 $ 13,739
4/30/98 $ 13,563 $ 13,811
5/31/98 $ 13,665 $ 13,942
6/30/98 $ 13,775 $ 14,060
7/31/98 $ 13,773 $ 14,090
8/31/98 $ 13,929 $ 14,320
9/30/98 $ 14,140 $ 14,655
10/31/98 $ 14,055 $ 14,577
11/30/98 $ 14,130 $ 14,660
12/31/98 $ 14,171 $ 14,704
1/31/99 $ 14,213 $ 14,808
2/28/99 $ 14,038 $ 14,549
3/31/99 $ 14,145 $ 14,629
4/30/99 $ 14,194 $ 14,676
5/31/99 $ 14,093 $ 14,547
6/30/99 $ 14,087 $ 14,500
7/31/99 $ 14,067 $ 14,440
8/31/99 $ 14,048 $ 14,432
9/30/99 $ 14,160 $ 14,600
10/31/99 $ 14,185 $ 14,654
11/30/99 $ 14,195 $ 14,652
12/31/99 $ 14,165 $ 14,582
1/31/2000 $ 14,107 $ 14,534
2/29/2000 $ 14,222 $ 14,710
3/31/2000 $ 14,331 $ 14,904
4/30/2000 $ 14,199 $ 14,861
5/31/2000 $ 14,186 $ 14,853
6/30/2000 $ 14,515 $ 15,162
7/31/2000 $ 14,653 $ 15,300
8/31/2000 $ 14,870 $ 15,522
9/30/2000 $ 14,986 $ 15,620
10/31/2000 $ 14,978 $ 15,723
11/30/2000 $ 15,128 $ 15,981
12/31/2000 $ 15,496 $ 16,278
1/31/2001 $ 15,987 $ 16,543
2/28/2001 $ 16,036 $ 16,687
3/31/2001 $ 16,047 $ 16,771
4/30/2001 $ 16,003 $ 16,700
5/31/2001 $ 16,150 $ 16,801
6/30/2001 $ 16,169 $ 16,865
7/31/2001 $ 16,493 $ 17,243
8/31/2001 $ 16,643 $ 17,441
9/30/2001 $ 16,612 $ 17,643
10/31/2001 $ 16,853 $ 18,012
11/30/2001 $ 16,665 $ 17,764
12/31/2001 $ 16,527 $ 17,650
1/31/2002 $ 16,585 $ 17,793
2/28/2002 $ 16,636 $ 17,965
3/31/2002 $ 16,446 $ 17,667
4/30/2002 $ 16,566 $ 18,010
5/31/2002 $ 16,620 $ 18,163
6/30/2002 $ 16,178 $ 18,321
7/31/2002 $ 15,742 $ 18,543
8/31/2002 $ 16,090 $ 18,856
9/30/2002 $ 16,181 $ 19,162
10/31/2002 $ 16,166 $ 19,073
11/30/2002 $ 16,433 $ 19,068
12/31/2002 $ 16,804 $ 19,462
1/31/2003 $ 16,913 $ 19,480
2/28/2003 $ 17,176 $ 19,749
3/31/2003 $ 17,213 $ 19,733
4/30/2003 $ 17,481 $ 19,897
5/31/2003 $ 17,763 $ 20,267
6/30/2003 $ 17,770 $ 20,227
7/31/2003 $ 17,175 $ 19,547
8/31/2003 $ 17,307 $ 19,676
9/30/2003 $ 17,757 $ 20,196
10/31/2003 $ 17,653 $ 20,008
11/30/2003 $ 17,745 $ 20,056
12/31/2003 $ 17,908 $ 20,260
1/31/2004 $ 18,069 $ 20,423
2/29/2004 $ 18,230 $ 20,644
3/31/2004 $ 18,373 $ 20,799
4/30/2004 $ 17,893 $ 20,258
5/31/2004 $ 17,793 $ 20,176
6/30/2004 $ 17,917 $ 20,290
7/31/2004 $ 18,115 $ 20,492
8/31/2004 $ 18,429 $ 20,883
9/30/2004 $ 18,500 $ 20,939
10/31/2004 $ 18,702 $ 21,115
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE FIXED INCOME FUND(1) ADVISOR CLASS SHARES AND
THE LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX(3),(4)
FROM INCEPTION (7/03/96).
<Table>
<Caption>
CREDIT SUISSE FIXED INCOME LEHMAN BROTHERS U.S. AGGREGATE
FUND(1) ADVISOR CLASS BOND INDEX(3),(4)
7/3/96 $ 10,000 $ 10,000
7/31/96 $ 10,014 $ 10,000
8/31/96 $ 10,058 $ 9,983
9/30/96 $ 10,214 $ 10,157
10/31/96 $ 10,393 $ 10,382
11/30/96 $ 10,573 $ 10,560
12/31/96 $ 10,565 $ 10,462
1/31/97 $ 10,638 $ 10,494
2/28/97 $ 10,703 $ 10,520
3/31/97 $ 10,615 $ 10,403
4/30/97 $ 10,709 $ 10,559
5/31/97 $ 10,813 $ 10,660
6/30/97 $ 10,939 $ 10,787
7/31/97 $ 11,210 $ 11,078
8/31/97 $ 11,129 $ 10,984
9/30/97 $ 11,272 $ 11,146
10/31/97 $ 11,381 $ 11,308
11/30/97 $ 11,388 $ 11,360
12/31/97 $ 11,467 $ 11,475
1/31/98 $ 11,629 $ 11,622
2/28/98 $ 11,596 $ 11,612
3/31/98 $ 11,617 $ 11,652
4/30/98 $ 11,668 $ 11,712
5/31/98 $ 11,765 $ 11,824
6/30/98 $ 11,846 $ 11,924
7/31/98 $ 11,841 $ 11,949
8/31/98 $ 11,973 $ 12,144
9/30/98 $ 12,164 $ 12,428
10/31/98 $ 12,088 $ 12,362
11/30/98 $ 12,149 $ 12,433
12/31/98 $ 12,171 $ 12,470
1/31/99 $ 12,205 $ 12,558
2/28/99 $ 12,063 $ 12,339
3/31/99 $ 12,153 $ 12,407
4/30/99 $ 12,180 $ 12,446
5/31/99 $ 12,091 $ 12,337
6/30/99 $ 12,083 $ 12,297
7/31/99 $ 12,064 $ 12,246
8/31/99 $ 12,045 $ 12,239
9/30/99 $ 12,150 $ 12,381
10/31/99 $ 12,169 $ 12,427
11/30/99 $ 12,175 $ 12,426
12/31/99 $ 12,135 $ 12,366
1/31/2000 $ 12,094 $ 12,326
2/29/2000 $ 12,179 $ 12,475
3/31/2000 $ 12,282 $ 12,639
4/30/2000 $ 12,166 $ 12,603
5/31/2000 $ 12,140 $ 12,596
6/30/2000 $ 12,432 $ 12,858
7/31/2000 $ 12,535 $ 12,975
8/31/2000 $ 12,731 $ 13,164
9/30/2000 $ 12,814 $ 13,247
10/31/2000 $ 12,818 $ 13,334
11/30/2000 $ 12,931 $ 13,553
12/31/2000 $ 13,256 $ 13,805
1/31/2001 $ 13,672 $ 14,030
2/28/2001 $ 13,699 $ 14,152
3/31/2001 $ 13,718 $ 14,223
4/30/2001 $ 13,678 $ 14,163
5/31/2001 $ 13,800 $ 14,248
6/30/2001 $ 13,814 $ 14,302
7/31/2001 $ 14,088 $ 14,623
8/31/2001 $ 14,227 $ 14,791
9/30/2001 $ 14,184 $ 14,963
10/31/2001 $ 14,387 $ 15,275
11/30/2001 $ 14,238 $ 15,065
12/31/2001 $ 14,117 $ 14,968
1/31/2002 $ 14,149 $ 15,089
2/28/2002 $ 14,190 $ 15,236
3/31/2002 $ 14,040 $ 14,983
4/30/2002 $ 14,125 $ 15,273
5/31/2002 $ 14,168 $ 15,403
6/30/2002 $ 13,788 $ 15,537
7/31/2002 $ 13,428 $ 15,725
8/31/2002 $ 13,708 $ 15,991
9/30/2002 $ 13,782 $ 16,250
10/31/2002 $ 13,767 $ 16,175
11/30/2002 $ 14,005 $ 16,170
12/31/2002 $ 14,304 $ 16,505
1/31/2003 $ 14,394 $ 16,520
2/28/2003 $ 14,614 $ 16,748
3/31/2003 $ 14,643 $ 16,735
4/30/2003 $ 14,865 $ 16,874
5/31/2003 $ 15,114 $ 17,187
6/30/2003 $ 15,098 $ 17,153
7/31/2003 $ 14,587 $ 16,577
8/31/2003 $ 14,693 $ 16,686
9/30/2003 $ 15,084 $ 17,128
10/31/2003 $ 14,974 $ 16,968
11/30/2003 $ 15,046 $ 17,009
12/31/2003 $ 15,194 $ 17,182
1/31/2004 $ 15,308 $ 17,320
2/29/2004 $ 15,438 $ 17,507
3/31/2004 $ 15,552 $ 17,639
4/30/2004 $ 15,140 $ 17,180
5/31/2004 $ 15,050 $ 17,111
6/30/2004 $ 15,148 $ 17,207
7/31/2004 $ 15,309 $ 17,378
8/31/2004 $ 15,567 $ 17,710
9/30/2004 $ 15,622 $ 17,758
10/31/2004 $ 15,785 $ 17,907
</Table>
4
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE FIXED INCOME FUND(1) CLASS A SHARES(2), CLASS B SHARES(2),
CLASS C SHARES(2) AND THE LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX(3)
FROM INCEPTION (7/31/01).
<Table>
<Caption>
CREDIT SUISSE FIXED CREDIT SUISSE FIXED
CREDIT SUISSE FIXED INCOME FUND(1) -- CLASS B(2) INCOME FUND(1) -- CLASS C(2)
INCOME FUND(1) -- CLASS A(2) (WITH MAXIMUM CONTINGENT (WITH MAXIMUM CONTINGENT LEHMAN BROTHERS
(WITH MAXIMUM SALES CHARGE) DEFERRED SALES CHARGE) DEFERRED SALES CHARGE) U.S. AGGREGATE BOND INDEX(3)
7/31/2001 $ 9,525 $ 10,000 $ 10,000 $ 10,000
8/31/2001 $ 9,620 $ 10,092 $ 10,087 $ 10,115
9/30/2001 $ 9,592 $ 10,058 $ 10,051 $ 10,232
10/31/2001 $ 9,729 $ 10,196 $ 10,189 $ 10,446
11/30/2001 $ 9,628 $ 10,074 $ 10,076 $ 10,302
12/31/2001 $ 9,546 $ 9,982 $ 9,985 $ 10,236
1/31/2002 $ 9,568 $ 10,009 $ 10,001 $ 10,319
2/28/2002 $ 9,596 $ 10,032 $ 10,024 $ 10,419
3/31/2002 $ 9,484 $ 9,909 $ 9,902 $ 10,246
4/30/2002 $ 9,552 $ 9,973 $ 9,966 $ 10,445
5/31/2002 $ 9,580 $ 9,997 $ 9,990 $ 10,534
6/30/2002 $ 9,324 $ 9,723 $ 9,716 $ 10,625
7/31/2002 $ 9,071 $ 9,453 $ 9,446 $ 10,754
8/31/2002 $ 9,260 $ 9,654 $ 9,647 $ 10,936
9/30/2002 $ 9,320 $ 9,701 $ 9,693 $ 11,113
10/31/2002 $ 9,314 $ 9,684 $ 9,676 $ 11,062
11/30/2002 $ 9,475 $ 9,835 $ 9,827 $ 11,058
12/31/2002 $ 9,677 $ 10,049 $ 10,041 $ 11,287
1/31/2003 $ 9,748 $ 10,106 $ 10,098 $ 11,297
2/28/2003 $ 9,897 $ 10,255 $ 10,246 $ 11,453
3/31/2003 $ 9,906 $ 10,268 $ 10,249 $ 11,444
4/30/2003 $ 10,059 $ 10,420 $ 10,401 $ 11,539
5/31/2003 $ 10,229 $ 10,579 $ 10,571 $ 11,754
6/30/2003 $ 10,231 $ 10,574 $ 10,565 $ 11,730
7/31/2003 $ 9,886 $ 10,211 $ 10,203 $ 11,336
8/31/2003 $ 9,961 $ 10,281 $ 10,273 $ 11,411
9/30/2003 $ 10,217 $ 10,540 $ 10,531 $ 11,713
10/31/2003 $ 10,155 $ 10,469 $ 10,461 $ 11,604
11/30/2003 $ 10,196 $ 10,505 $ 10,496 $ 11,632
12/31/2003 $ 10,298 $ 10,603 $ 10,595 $ 11,750
1/31/2004 $ 10,388 $ 10,690 $ 10,681 $ 11,844
2/29/2004 $ 10,478 $ 10,776 $ 10,767 $ 11,973
3/31/2004 $ 10,547 $ 10,851 $ 10,842 $ 12,062
4/30/2004 $ 10,280 $ 10,559 $ 10,550 $ 11,748
5/31/2004 $ 10,221 $ 10,492 $ 10,483 $ 11,701
6/30/2004 $ 10,290 $ 10,556 $ 10,547 $ 11,768
7/31/2004 $ 10,401 $ 10,664 $ 10,655 $ 11,884
8/31/2004 $ 10,579 $ 10,839 $ 10,830 $ 12,111
9/30/2004 $ 10,618 $ 10,872 $ 10,864 $ 12,144
10/31/2004 $ 10,731 $ 10,883 $ 10,962 $ 12,246
</Table>
5
<Page>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2004(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 4.19% 5.49% 6.38% 6.94%
Advisor Class 3.56% 5.15% -- 5.56%
Class A Without Sales Charge 3.92% -- -- 3.48%
Class A With Maximum
Sales Charge (1.05)% -- -- 1.91%
Class B Without CDSC 3.15% -- -- 2.67%
Class B With Maximum CDSC (0.85)% -- -- 2.38%
Class C Without CDSC 3.15% -- -- 2.65%
Class C With Maximum CDSC 2.15% -- -- 2.65%
</Table>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2004(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------ ------- -------- ---------
Common Class 5.95% 5.66% 6.45% 6.97%
Advisor Class 5.42% 5.32% -- 5.62%
Class A Without Sales Charge 5.68% -- -- 3.70%
Class A With Maximum
Sales Charge 0.67% -- -- 2.16%
Class B Without CDSC 4.90% -- -- 2.89%
Class B With Maximum CDSC 0.90% -- -- 2.60%
Class C Without CDSC 4.79% -- -- 2.83%
Class C With Maximum CDSC 3.79% -- -- 2.83%
</Table>
RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE CHANGE IN SHARE PRICE AND
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE
FUTURE RESULTS. THE CURRENT PERFORMANCE OF THE FUND MAY BE LOWER OR HIGHER THAN
THE FIGURES SHOWN. RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE
MAY BE 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) Total return for Class A shares for the reporting period, based on offering
price (with maximum sales charge of 4.75%), was 0.67%. Total return for
Class B shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was 0.90%.
Total return for Class C shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 3.79%.
(3) The Lehman Brothers U.S. Aggregate Bond Index is composed of the Lehman
Brothers Government/Corporate Bond Index and the Lehman Brothers
Mortgage-Backed Securities Index. It includes U.S. Treasury and agency
issues, corporate bond issues and mortgage-backed securities rated
investment-grade or higher by Moody's Investors Service; the Standard &
Poor's division of The McGraw-Hill Companies, Inc.; or Fitch IBCA Inc.
Investors cannot invest directly in an index.
(4) Performance for the benchmarks is not available for the period beginning
July 3, 1996 (commencement of operations). For that reason, performance is
shown for the period beginning August 1, 1996.
6
<Page>
INFORMATION ABOUT YOUR FUND'S EXPENSES
As an investor of the Fund, you incur two types of costs: ongoing expenses
and transaction costs. Ongoing expenses include management fees, distribution
and service (12b-1) fees and other Fund expenses. Examples of transaction costs
include sales charges (loads), redemption fees and account maintenance fees,
which are not shown in this section and which would result in higher total
expenses. The following table is intended to help you understand your ongoing
expenses of investing in the Fund and to help you compare these expenses with
the ongoing expenses of investing in other mutual funds. The table is based on
an investment of $1,000 made at the beginning of the six-month period ended
October 31, 2004.
The table illustrates your Fund's expenses in two ways:
- ACTUAL FUND RETURN. This helps you estimate the actual dollar amount of
ongoing expenses paid on a $1,000 investment in the Fund using the Fund's
actual return during the period. To estimate the expenses you paid over
the period, simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the "Expenses Paid per $1,000" line under the share class
you hold.
- HYPOTHETICAL 5% FUND RETURN. This helps you to compare your Fund's ongoing
expenses with those of other mutual funds using the Fund's actual expense
ratio and a hypothetical rate of return of 5% per year before expenses.
Examples using a 5% hypothetical fund return may be found in the
shareholder reports of other mutual funds. The hypothetical account values
and expenses may not be used to estimate the actual ending account balance
or expense you paid for the period.
Please note that the expenses shown in these tables are meant to highlight
your ongoing expenses only and do not reflect any transaction costs, such as
sales charges (loads) or redemption fees. If these transaction costs had been
included, your costs would have been higher. The "Expenses Paid per $1,000" line
of the tables is useful in comparing ongoing expenses only and will not help you
determine the relative total expenses of owning different funds.
7
<Page>
EXPENSES AND VALUE OF A $1,000 INVESTMENT FOR THE
SIX MONTH PERIOD ENDED OCTOBER 31, 2004
<Table>
<Caption>
COMMON ADVISOR
CLASS CLASS CLASS A CLASS B CLASS C
-------- -------- -------- -------- --------
ACTUAL FUND RETURN
Beginning Account
Value 4/30/04 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Ending Account
Value 10/31/04 $ 1,045 $ 1,043 $ 1,044 $ 1,040 $ 1,039
Expenses Paid
per $1,000* $ 3.60 $ 6.16 $ 4.88 $ 8.71 $ 8.71
HYPOTHETICAL 5%
FUND RETURN
Beginning Account
Value 4/30/04 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Ending Account
Value 10/31/04 $ 1,025 $ 1,025 $ 1,025 $ 1,025 $ 1,025
Expenses Paid
per $1,000* $ 3.56 $ 6.11 $ 4.84 $ 8.65 $ 8.65
<Caption>
COMMON ADVISOR
CLASS CLASS CLASS A CLASS A CLASS A
-------- -------- ------- ------- -------
ANNUALIZED
EXPENSE RATIOS*
0.70% 1.20% 0.95% 1.70% 1.70%
</Table>
- ----------
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO FOR EACH SHARE
CLASS, MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED
BY THE NUMBER OF DAYS IN THE MOST RECENT FISCAL HALF YEAR PERIOD, THEN
DIVIDED BY 366.
THE "EXPENSES PAID PER $1,000" AND THE "ANNUALIZED EXPENSE RATIOS" IN THE
TABLES ARE BASED ON ACTUAL EXPENSES PAID BY THE FUND DURING THE PERIOD, NET
OF FEE WAIVERS AND/OR EXPENSE REIMBURSEMENTS. IF THOSE FEE WAIVERS AND/OR
EXPENSE REIMBURSEMENTS HAD NOT BEEN IN EFFECT, THE FUND'S ACTUAL EXPENSES
WOULD HAVE BEEN HIGHER.
For more information, please refer to the Fund's prospectus.
8
<Page>
[CHART]
SECTOR BREAKDOWN*
<Table>
US Gov't Agencies 35.0%
Corporate Bonds 25.4%
Asset Backed Securities 16.0%
Cash/Money Markets 9.1%
Foreign Bonds 8.7%
Mortgage Backed Securities 5.5%
Preferred Stocks 0.3%
Warrants 0.0%
</Table>
- ----------
* The Fund's sector breakdown is expressed as a percentage of total
investments (excluding security lending collateral) and may vary over time.
9
<Page>
CREDIT SUISSE FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2004
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
CORPORATE BONDS (30.4%)
AEROSPACE & DEFENSE (0.6%)
$ 760 Goodrich Corp., Notes~ (BBB- , Baa3) 04/15/08 7.500 $ 851,645
180 L-3 Communications Corp., Global Company
Guaranteed Notes
(Callable 07/15/08 @ $103.06) (BB- , Ba3) 07/15/13 6.125 187,650
-------------
1,039,295
-------------
AUTOMOBILE MANUFACTURERS (0.3%)
245 Ford Motor Co., Global Notes (BBB- , Baa1) 07/16/31 7.450 239,280
335 General Motors Corp., Global Debentures~ (BBB- , Baa2) 07/15/33 8.375 349,567
-------------
588,847
-------------
AUTOMOBILE PARTS & EQUIPMENT (0.1%)
265 Collins & Aikman Products Corp.,
Rule 144A, Senior Subordinated Notes++~ (B- , B3) 08/15/12 12.875 230,550
-------------
BANKS (0.9%)
635 Bank of America Corp., Global Notes (A+ , Aa2) 10/01/10 4.250 640,297
300 National City Bank, Series BKNT, Notes (A+ , Aa3) 08/01/09 4.150 304,206
610 Wachovia Corp., Global Subordinated Notes (A- , A1) 08/01/14 5.250 631,350
-------------
1,575,853
-------------
BUILDING MATERIALS (0.3%)
435 American Standard, Inc., Company
Guaranteed Notes (BBB- , Ba2) 02/15/10 7.625 501,337
-------------
CHEMICALS (0.6%)
160 Huntsman LLC, Global Company Guaranteed
Notes (Callable 10/15/07 @ $105.81) (B , B2) 10/15/10 11.625 189,400
180 Lyondell Chemicals Co.,
Global Company Guaranteed Notes
(Callable 06/01/08 @ $105.25)~ (B+ , B1) 06/01/13 10.500 213,300
625 RPM International, Inc., Senior Notes (BBB , Baa3) 10/15/09 4.450 621,810
-------------
1,024,510
-------------
COMMERCIAL SERVICES (0.6%)
450 Cendant Corp., Units (BBB , Baa1) 08/17/06 4.890 457,796
270 Erac USA Finance Co., Rule 144A, Notes++ (BBB+ , Baa1) 05/15/06 6.625 284,502
245 Iron Mountain, Inc., Company Guaranteed
Notes (Callable 07/01/08 @ $103.31) (B , Caa1) 01/01/16 6.625 245,000
-------------
987,298
-------------
DISTRIBUTION & WHOLESALE (0.2%)
360 Hughes Supply, Inc., Rule 144A, Notes++ (BBB- , Ba1) 10/15/14 5.500 359,847
-------------
DIVERSIFIED FINANCIALS (7.6%)
700 Capital One Bank, Subordinated Notes (BBB- , Baa3) 06/13/13 6.500 769,978
1,035 Countrywide Home Loans, Inc., Global Notes (A , A3) 12/19/07 4.250 1,054,980
300 Countrywide Home Loans, Inc.,
Series MTN, Global Notes (A , A3) 09/15/09 4.125 300,230
100 Farmers Exchange Capital, Rule 144A, Notes++ (BBB+ , Baa3) 07/15/28 7.050 101,565
</Table>
See Accompanying Notes to Financial Statements.
10
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
CORPORATE BONDS
DIVERSIFIED FINANCIALS
$ 745 FMR Corp., Rule 144A, Notes++ (AA , Aa3) 03/01/13 4.750 $ 752,514
540 Ford Motor Credit Co., Global Notes (BBB- , A3) 01/25/07 6.500 567,647
235 Ford Motor Credit Co., Global Notes (BBB- , A3) 10/28/09 7.375 255,854
430 General Electric Capital Corp., Series MTNA,
Global Notes (AAA , Aaa) 12/15/09 3.750 428,545
1,190 General Electric Capital Corp., Series MTNA,
Global Notes (AAA , Aaa) 06/15/12 6.000 1,308,580
245 General Motors Acceptance Corp., Global Bonds (BBB- , Baa1) 11/01/31 8.000 254,300
780 General Motors Acceptance Corp.,
Series MTN, Notes~ (BBB , Baa1) 12/10/07 4.375 781,052
425 Goldman Sachs Group L.P., Notes~ (A+ , Aa3) 10/01/14 5.000 425,704
1,625 Household Finance Corp., Global Notes (A , A1) 12/15/08 4.125 1,651,170
470 Household Finance Corp., Global Notes (A , A1) 07/15/10 8.000 558,715
230 JPMorgan Chase & Co.,
Global Subordinated Notes (A , A1) 09/15/14 5.125 234,148
680 Lehman Brothers Holdings, Inc., Series MTNG,
Global Notes (A , A1) 11/30/10 4.375 686,729
530 MBNA America Bank, Rule 144A,
Subordinated Notes++ (BBB , Baa2) 03/15/08 6.750 580,519
207 Merey Sweeny L.P., Rule 144A, Senior Notes++ (NR , Baa3) 12/18/19 8.850 246,430
400 Merrill Lynch & Company, Inc., Notes (A+ , Aa3) 07/15/14 5.450 418,525
385 Morgan Stanley, Global Subordinated Notes (A , A1) 04/01/14 4.750 377,866
870 SLM Corp., Series MTNA, Notes (A , A2) 01/15/09 4.000 875,650
90 Textron Financial Corp., Global Notes~ (A- , A3) 06/01/07 5.875 95,935
310 Textron Financial Corp., Series MTNE, Notes# (A- , A3) 10/06/06 2.381 311,155
-------------
13,037,791
-------------
ELECTRIC (3.6%)
240 AES Corp., Senior Notes (B- , B2) 06/01/09 9.500 277,800
740 American Electric Power Company, Inc.,
Series A, Global Notes (BBB , Baa3) 05/15/06 6.125 774,859
400 Cincinnati Gas & Electric Co., Notes (BBB , Baa1) 09/15/12 5.700 428,090
695 Consolidated Edison Company of New York,
Debentures (A , A1) 02/01/13 4.875 713,511
285 Constellation Energy Group, Inc., Notes (BBB , Baa1) 04/01/07 6.350 305,149
160 Detroit Edison Co., First Mortgage Notes (A- , A3) 08/01/14 5.400 169,254
355 Dominion Resources, Inc., Series B,
Global Senior Notes (BBB+ , Baa1) 07/15/05 7.625 367,362
665 FirstEnergy Corp., Series C, Global Notes (BB+ , Baa3) 11/15/31 7.375 760,088
669 FPL Group Capital, Inc., Company
Guaranteed Notes (A- , A2) 09/15/06 7.625 725,121
490 FPL Group Capital, Inc., Notes (A- , A2) 04/11/06 3.250 493,503
400 Oklahoma Gas & Electric Co., Bonds
(Callable 08/01/14 @ $103.25) (BBB+ , A2) 08/01/34 6.500 418,524
290 Pacific Gas & Electric Co., First Mortgage Notes (BBB , Baa2) 03/01/34 6.050 299,718
480 Pinnacle West Capital Corp., Senior Notes
(Callable 11/01/04 @ $100.00)# (BBB- , Baa2) 11/01/05 2.494 480,744
-------------
6,213,723
-------------
</Table>
See Accompanying Notes to Financial Statements.
11
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
CORPORATE BONDS
ENTERTAINMENT (0.2%)
$ 160 AMC Entertainment, Inc., Senior Subordinated
Notes (Callable 02/01/05 @ $103.17) (CCC+ , B3) 02/01/11 9.500 $ 166,000
240 Six Flags, Inc., Global Senior Notes
(Callable 02/01/05 @ $104.75)~ (CCC+ , B3) 02/01/09 9.500 240,900
-------------
406,900
-------------
ENVIRONMENTAL CONTROL (0.7%)
125 Allied Waste North America, Inc., Senior Notes
(Callable 04/15/08 @ $103.94) (BB- , B2) 04/15/13 7.875 127,813
265 Allied Waste North America, Inc., Series B,
Global Senior Notes
(Callable 04/15/09 @ $103.69)~ (B+ , Caa1) 04/15/14 7.375 246,450
625 Waste Management, Inc., Global Company
Guaranteed Notes (BBB , Baa3) 05/15/32 7.750 769,994
-------------
1,144,257
-------------
FOOD (1.3%)
445 ConAgra Foods, Inc., Notes (BBB+ , Baa1) 09/15/11 6.750 506,284
430 ConAgra Foods, Inc., Notes (BBB+ , Baa1) 09/15/30 8.250 571,263
375 Corn Products International, Inc., Senior Notes (BBB- , Ba1) 07/15/07 8.250 415,313
620 Kellogg Co., Global Senior Notes (BBB+ , Baa1) 06/01/08 2.875 608,196
155 Land O' Lakes, Inc., Global Senior Notes
(Callable 11/15/06 @ $104.38)~ (B- , B3) 11/15/11 8.750 144,150
-------------
2,245,206
-------------
FOREST PRODUCTS, PAPER (0.3%)
405 Georgia-Pacific Corp., Global Company
Guaranteed Notes (BB+ , Ba2) 02/01/10 8.875 478,912
-------------
GAS (0.4%)
585 Sempra Energy, Notes (BBB+ , Baa1) 12/01/05 6.950 610,058
-------------
HOME BUILDERS (0.4%)
270 D.R. Horton, Inc., Senior Notes (BB+ , Ba1) 05/01/13 6.875 293,625
270 KB Home, Senior Subordinated Notes (BB- , Ba2) 12/15/08 8.625 307,125
90 NVR, Inc., Senior Notes~ (BB+ , Baa3) 06/15/10 5.000 90,675
-------------
691,425
-------------
HOUSEHOLD PRODUCTS (0.1%)
160 Johnsondiversey, Inc., Series B,
Global Company Guaranteed Notes
(Callable 05/15/07 @ $104.81) (B , B2) 05/15/12 9.625 180,800
-------------
INSURANCE (2.0%)
900 American International Group, Inc.,
Global Notes# (AAA , Aaa) 05/15/13 4.250 876,927
235 Florida Windstorm Underwriting Association,
Rule 144A, Senior Notes++ (A- , A3) 08/25/07 6.850 255,641
650 Genworth Financial, Inc., Notes (A , A2) 06/15/14 5.750 690,196
</Table>
See Accompanying Notes to Financial Statements.
12
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
CORPORATE BONDS
INSURANCE
$ 1,010 MetLife, Inc., Senior Notes (A , A2) 11/24/13 5.000 $ 1,019,177
610 Nationwide Mutual Insurance Co.,
Rule 144A, Bonds
(Callable 04/15/14 @ $100.00)++ (A- , A2) 04/15/34 6.600 601,017
-------------
3,442,958
-------------
IRON & STEEL (0.4%)
390 AK Steel Corp., Company Guaranteed Notes
(Callable 02/15/05 @ $102.65)~ (B+ , B3) 02/15/09 7.875 397,800
215 International Steel Group, Inc., Global
Senior Notes (BB , Ba3) 04/15/14 6.500 231,125
-------------
628,925
-------------
LEISURE TIME (0.1%)
100 Hard Rock Hotel, Inc., Global Notes
(Callable 06/01/08 @ $104.44) (B , B3) 06/01/13 8.875 109,500
-------------
LODGING (0.5%)
180 Caesars Entertainment, Inc., Global
Senior Notes~ (BB+ , Ba1) 04/15/13 7.000 203,175
310 MGM Mirage, Rule 144A, Senior Notes++ (BB+ , Ba1) 09/01/12 6.750 330,150
340 Windsor Woodmont Black Hawk, Series B,
First Mortgage Notes| (CCC+ , NR) 03/15/05 13.000 340,850
-------------
874,175
-------------
MEDIA (2.8%)
330 CCO Holdings LLC, Global Senior Notes
(Callable 11/15/08 @ $104.38)~ (CCC- , B3) 11/15/13 8.750 330,825
505 Comcast Cable Communications Holdings, Inc.,
Global Company Guaranteed Notes (BBB , Baa3) 03/15/13 8.375 620,556
10 Comcast Cable Communications, Inc.,
Senior Notes (BBB , Baa3) 01/30/11 6.750 11,232
325 Cox Communications, Inc., Notes~ (BBB , Baa3) 06/15/05 6.875 332,813
295 CSC Holdings, Inc., Series B, Senior Notes (BB- , B1) 07/15/09 8.125 325,975
245 Dex Media West LLC, Series B, Global Senior
Subordinated Notes
(Callable 08/15/08 @ $104.94) (B , B2) 08/15/13 9.875 290,937
120 EchoStar DBS Corp., Global Senior Notes (BB- , Ba3) 10/01/11 6.375 124,950
155 EchoStar DBS Corp., Rule 144A, Company
Guaranteed Notes++ (BB- , Ba3) 10/01/14 6.625 159,263
550 Liberty Media Corp., Global Senior Notes# (BBB- , Baa3) 09/17/06 3.380 556,385
225 Mediacom LLC/Capital Corp., Senior Notes
(Callable 01/15/06 @ $104.75)~ (B , B3) 01/15/13 9.500 221,625
425 News America Holdings, Inc., Company
Guaranteed Notes~ (BBB- , Baa3) 02/01/13 9.250 550,835
700 News America, Inc., Company
Guaranteed Notes (BBB- , Baa3) 11/30/28 7.625 839,291
320 Time Warner, Inc., Global Company
Guaranteed Notes (BBB+ , Baa1) 04/15/31 7.625 380,321
-------------
4,745,008
-------------
</Table>
See Accompanying Notes to Financial Statements.
13
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
CORPORATE BONDS
MINING (0.2%)
$ 365 Phelps Dodge Corp., Bonds (BBB- , Baa3) 03/15/34 6.125 $ 378,186
-------------
MISCELLANEOUS MANUFACTURING (0.5%)
810 Textron, Inc., Senior Notes (A- , A3) 08/01/10 4.500 830,648
-------------
OIL & GAS (1.7%)
240 Chesapeake Energy Corp., Senior Notes
(Callable 01/15/09 @ $103.44) (BB- , Ba3) 01/15/16 6.875 258,000
240 Devon Financing Corp. ULC, Global Company
Guaranteed Notes (BBB , Baa2) 09/30/11 6.875 275,192
415 Enterprise Products Operating LP, Rule 144A,
Senior Notes++ (BB+ , Baa3) 10/15/14 5.600 423,697
385 Giant Industries, Inc., Company Guaranteed
Notes (Callable 05/15/09 @ $104.00) (B- , B3) 05/15/14 8.000 403,287
320 Pemex Project Funding Master Trust,
Rule 144A, Notes++# (BBB- , Baa1) 06/15/10 3.180 326,240
520 Pioneer Natural Resources Co., Senior Notes (BBB- , Baa3) 07/15/16 5.875 553,484
255 Premcor Refining Group, Inc., Company
Guaranteed Notes
(Callable 05/01/09 @ $103.38) (BB- , Ba3) 05/01/14 6.750 270,300
455 SEACOR Holdings, Inc., Notes (BBB , Baa3) 10/01/12 5.875 453,505
-------------
2,963,705
-------------
PACKAGING & CONTAINERS (0.3%)
125 Owens-Brockway Glass Containers, Global
Secured Notes (Callable 11/15/07 @ $104.38) (BB- , B2) 11/15/12 8.750 141,563
270 Owens-Illinois, Inc., Debentures~ (B , Caa1) 05/15/10 7.500 283,500
-------------
425,063
-------------
PHARMACEUTICALS (0.1%)
130 Wyeth, Notes# (A , Baa1) 03/15/13 5.500 133,988
-------------
PIPELINES (0.6%)
170 El Paso Production Holding Co., Global
Company Guaranteed Notes
(Callable 06/01/08 @ $103.88) (B- , B3) 06/01/13 7.750 178,075
580 Plains All American Pipelines,
Rule 144A, Notes++ (BBB- , Baa3) 08/15/09 4.750 598,350
215 Williams Companies, Inc., Global Notes#~ (B+ , B3) 03/15/12 8.125 253,700
-------------
1,030,125
-------------
REAL ESTATE (0.5%)
400 EOP Operating LP, Notes (BBB+ , Baa2) 10/01/10 4.650 406,782
500 EOP Operating LP, Senior Notes (BBB+ , Baa2) 02/15/05 6.625 505,845
-------------
912,627
-------------
RETAIL (0.6%)
845 Target Corp., Notes~ (A+ , A2) 08/15/10 7.500 999,556
-------------
</Table>
See Accompanying Notes to Financial Statements.
14
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
CORPORATE BONDS
SEMICONDUCTORS (0.1%)
$ 240 Amkor Technology, Inc., Global Senior Notes
(Callable 05/15/08 @ $103.88)~ (B , B3) 05/15/13 7.750 $ 208,200
-------------
TELECOMMUNICATIONS (1.7%)
160 AT&T Wireless Services, Inc., Global
Senior Notes (A , Baa2) 03/01/31 8.750 215,459
310 BellSouth Corp., Global Bonds (A , A2) 09/15/14 5.200 316,847
245 Centennial Communications Corp.,
Global Company Guaranteed Notes
(Callable 06/15/08 @ $105.06) (CCC , Caa1) 06/15/13 10.125 267,050
370 Motorola, Inc., Notes (BBB , Baa3) 11/16/07 4.608 381,261
320 Nextel Communications, Inc., Senior Notes
(Callable 03/15/09 @ $102.98) (BB , Ba3) 03/15/14 5.950 328,800
345 SBC Communications, Inc., Global Notes (A , A2) 09/15/14 5.100 348,068
305 Sprint Capital Corp., Global Company
Guaranteed Notes (BBB- , Baa3) 03/15/32 8.750 400,867
650 Verizon Wireless Capital LLC, Global Notes (A+ , A3) 12/15/06 5.375 681,628
-------------
2,939,980
-------------
TRANSPORTATION (0.1%)
175 Horizon Lines LLC, Rule 144A, Notes
(Callable 11/01/08 @ $104.50)++ (B- , B3) 11/01/12 9.000 190,094
-------------
TOTAL CORPORATE BONDS (Cost $50,434,900) 52,129,347
-------------
ASSET BACKED SECURITIES (19.1%)
2,200 Aesop Funding II LLC, Series 2003-2A,
Class A2# (AAA , Aaa) 06/20/07 2.160 2,205,964
969 Ameriquest Mortgage Securities, Inc.,
Series 2003-AR2, Class A4# (AAA , Aaa) 05/25/33 2.283 970,526
549 Capital Auto Receivables Asset Trust,
Series 2002-5, Class A3B# (AAA , Aaa) 04/17/06 2.300 549,544
1,800 Capital One Master Trust, Series 2001-1,
Class A# (AAA , Aaa) 12/15/10 2.070 1,810,315
900 Chase Credit Card Master Trust, Series 2001-1,
Class A# (AAA , Aaa) 06/15/07 2.040 900,422
1,800 Chase Credit Card Master Trust, Series 2003-2,
Class A# (AAA , Aaa) 07/15/10 1.980 1,805,184
125 Chase Funding Mortgage Loan, Series 2002-2,
Class 1A4 (AAA , Aaa) 08/25/28 4.877 126,152
2,245 Citibank Credit Card Issuance Trust,
Series 2002-A9, Class A9# (AAA , Aaa) 12/17/07 1.920 2,246,585
233 CNH Equipment Trust, Series 2002-A,
Class A3# (AAA , Aaa) 07/17/06 2.120 232,959
861 Countrywide Home Equity Loan Trust,
Series 2002-C, Class A# (AAA , Aaa) 05/15/28 2.110 861,779
1,290 DaimlerChrysler Auto Trust, Series 2004-B,
Class A4 (AAA , Aaa) 10/08/09 3.710 1,300,481
</Table>
See Accompanying Notes to Financial Statements.
15
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
ASSET BACKED SECURITIES
$ 105 DaimlerChrysler Master Owner Trust,
Series 2002-A, Class A# (AAA , Aaa) 05/15/07 1.930 $ 105,094
2,245 Discover Card Master Trust I, Series 2003-4,
Class A1# (AAA , Aaa) 05/15/11 1.980 2,248,509
500 Embarcadero Aircraft Securitization Trust,
Series 2000-A, Class A1# (BB , B3) 08/15/25 2.350 235,000
2,245 First USA Credit Card Master Trust,
Series 2001-1, Class A# (AAA , Aaa) 09/19/08 2.040 2,250,384
370 First USA Credit Card Master Trust,
Series 2001-4, Class A# (AAA , Aaa) 01/12/09 1.998 370,636
1,800 Fleet Credit Card Master Trust, Series 2002-B,
Class A# (AAA , Aaa) 04/15/10 2.010 1,805,726
123 GE Capital Mortgage Services, Inc.,
Series 1998-HE1, Class A7 (AAA , Aaa) 06/25/28 6.465 123,261
532 Greenpoint Home Equity Loan Trust,
Series 2003-1, Class A# (AAA , Aaa) 04/15/29 2.140 531,743
705 Greenpoint Home Equity Loan Trust,
Series 2004-3, Class A# (AAA , Aaa) 03/15/35 2.100 704,343
865 Honda Auto Receivables Owner Trust,
Series 2003-1, Class A4 (AAA , Aaa) 07/18/08 2.480 860,405
2,245 MBNA Credit Card Master Note Trust,
Series 2002-A4, Class A4# (AAA , Aaa) 08/17/09 1.980 2,251,009
2,515 MBNA Master Credit Card Trust,
Series 1996-G, Class A# (AAA , Aaa) 12/15/08 2.050 2,523,716
3,000 MBNA Master Credit Card Trust,
Series 1998-G, Class A# (AAA , Aaa) 02/17/09 2.000 3,008,413
85 Mortgage Lenders Network Home Equity Loan,
Series 1998-2, Class A1# (AAA , Aaa) 07/25/29 6.605 87,501
2,076 SLM Student Loan Trust, Series 2003-1,
Class A2# (AAA , Aaa) 06/17/13 1.920 2,076,347
534 Vanderbilt Mortgage Finance, Series 1998-C,
Class 1B1 (BBB , Baa1) 02/07/15 6.970 546,826
-------------
TOTAL ASSET BACKED SECURITIES (Cost $32,890,441) 32,738,824
-------------
MORTGAGE-BACKED SECURITIES (47.7%)
1,545 Bear Stearns Commercial Mortgage
Securities, Inc., Series 2002-TOP6, Class A2 (AAA , Aaa) 10/15/36 6.460 1,731,564
2,265 Fannie Mae Global Notes^^ (AAA , Aaa) 11/15/10 6.625 2,596,290
16 Fannie Mae Pool #004542++++ (AAA , Aaa) 12/01/08 12.000 17,406
1,476 Fannie Mae Pool #254372++++ (AAA , Aaa) 07/01/17 6.000 1,550,143
0(1) Fannie Mae Pool #524164 (AAA , Aaa) 11/01/29 7.000 47
257 Fannie Mae Pool #656862++++ (AAA , Aaa) 04/01/33 6.000 266,962
1,914 Fannie Mae Pool #667742++++ (AAA , Aaa) 04/01/33 6.000 1,988,319
1,619 Fannie Mae Pool #703337++++ (AAA , Aaa) 04/01/33 5.500 1,652,551
2,103 Fannie Mae Pool #703444++++ (AAA , Aaa) 05/01/18 5.000 2,149,551
303 Fannie Mae Pool #703598++++ (AAA , Aaa) 05/01/18 5.500 314,421
253 Fannie Mae Pool #705651++++ (AAA , Aaa) 06/01/18 5.500 262,516
</Table>
See Accompanying Notes to Financial Statements.
16
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
MORTGAGE-BACKED SECURITIES
$ 945 Fannie Mae Pool #713667++++ (AAA , Aaa) 07/01/33 5.000 $ 944,924
915 Fannie Mae Pool #721796++++ (AAA , Aaa) 06/01/18 4.500 920,586
2,205 Fannie Mae Pool #725205++++ (AAA , Aaa) 03/01/34 5.000 2,203,965
2,206 Fannie Mae Pool #725248^^^ (AAA , Aaa) 03/01/34 5.000 2,204,605
1,694 Fannie Mae Pool #725277 (AAA , Aaa) 03/01/19 4.500 1,703,447
1,080 Fannie Mae Pool #739753 (AAA , Aaa) 12/01/18 5.000 1,104,060
849 Fannie Mae Pool #741384 (AAA , Aaa) 09/01/18 4.000 835,533
948 Fannie Mae Pool #750536 (AAA , Aaa) 01/01/34 5.500 967,219
583 Fannie Mae Pool #757490++++++ (AAA , Aaa) 01/01/34 5.500 594,599
1,177 Fannie Mae Pool #763676 (AAA , Aaa) 01/01/34 5.500 1,201,370
1,785 Fannie Mae Pool #770154 (AAA , Aaa) 04/01/34 5.000 1,781,279
1,915 Fannie Mae Pool #778761 (AAA , Aaa) 06/01/19 4.500 1,916,198
2,632 Fannie Mae Pool #790724 (AAA , Aaa) 09/01/34 5.500 2,683,993
1,284 Fannie Mae Pool #794821 (AAA , Aaa) 10/01/34 7.000 1,364,216
1,763 Fannie Mae Pool #796906 (AAA , Aaa) 11/01/34 7.000 1,873,276
2,475 Federal Home Loan Bank Global Bonds^^ (AAA , Aaa) 06/18/14 5.250 2,642,308
1,955 FHLMC TBA (AAA , Aaa) 12/01/34 5.500 1,991,656
1,745 FNMA TBA (AAA , Aaa) 12/01/19 4.500 1,749,907
1,490 FNMA TBA (AAA , Aaa) 12/01/19 5.000 1,520,731
1,125 FNMA TBA (AAA , Aaa) 12/01/19 5.500 1,165,078
7,295 FNMA TBA (AAA , Aaa) 12/01/34 6.000 7,543,483
5,270 FNMA TBA (AAA , Aaa) 12/01/34 6.500 5,541,732
1,625 FNMA TBA (AAA , Aaa) 12/01/34 6.500 1,705,234
1,685 Freddie Mac Global Notes^^ (AAA , Aaa) 11/15/13 4.875 1,745,338
1,575 Freddie Mac Global Subordinated Notes^^ (AAA , Aaa) 03/21/11 5.875 1,723,537
1,680 Freddie Mac Pool #A24892 (AAA , Aaa) 07/01/34 6.000 1,742,034
2,395 Freddie Mac Pool #A25679 (AAA , Aaa) 08/01/34 5.500 2,443,398
802 Freddie Mac Pool #B11354 (AAA , Aaa) 12/01/18 5.000 819,010
1,805 Freddie Mac Pool #N31151 (AAA , Aaa) 10/01/34 5.000 1,817,604
1,948 Ginnie Mae Pool #429679 (AAA , Aaa) 11/15/33 5.500 1,997,611
4,120 GNMA TBA (AAA , Aaa) 12/01/34 5.000 4,132,875
1,043 JPMorgan Chase Commercial Mortgage
Securities Corp., Series 2004-CB9, Class A1# (AAA , Aaa) 06/12/41 3.475 1,043,053
321 LB-UBS Commercial Mortgage Trust,
Series 2003-C3, Class A1 (AAA , Aaa) 05/15/27 2.599 315,393
1,780 LB-UBS Commercial Mortgage Trust,
Series 2004-C2, Class A4 (AAA , Aaa) 03/15/36 4.367 1,753,445
1,725 LB-UBS Commercial Mortgage Trust,
Series 2004-C7, Class A2 (AAA , Aaa) 10/15/29 3.992 1,733,548
1,755 Wachovia Bank Commercial Mortgage Trust,
Series 2004-C10, Class A4 (AAA , Aaa) 02/15/41 4.748 1,771,444
-------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $80,658,405) 81,727,459
-------------
</Table>
See Accompanying Notes to Financial Statements.
17
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
FOREIGN BONDS (10.4%)
BANKS (1.0%)
$ 695 Korea Development Bank, Global Notes (Korea) (A- , A3) 07/20/09 4.750 $ 718,964
915 Royal Bank of Scotland Group PLC, Series 3,
Global Bonds (Callable 12/31/05 @ $100.00)
(United Kingdom) (A , A1) 11/29/49 7.816 963,525
-------------
1,682,489
-------------
BEVERAGES (0.2%)
420 Diageo Finance BV, Global Company
Guaranteed Notes (Netherlands) (A , A2) 04/01/11 3.875 414,980
-------------
CHEMICALS (0.1%)
210 Methanex Corp., Yankee Notes (Canada) (BBB- , Ba1) 08/15/05 7.750 217,350
-------------
ELECTRIC (0.2%)
330 Compania Nacional de Transmision Electrica SA,
Global Senior Notes (Chile) (A- , Baa1) 04/15/11 7.875 384,732
-------------
FOREST PRODUCTS, PAPER (0.1%)
255 Tembec Industries, Inc., Global Company
Guaranteed Notes (Canada) (BB- , Ba3) 03/15/12 7.750 251,175
-------------
HOLDING COMPANIES-DIVERSIFIED (0.6%)
890 Pacificorp Australia, Rule 144A, Bonds
(Australia)++ (AAA , Aaa) 01/15/08 6.150 964,323
-------------
INSURANCE (0.2%)
250 Everest Reinsurance Holdings, Notes (Bermuda) (A- , A3) 10/15/14 5.400 253,839
-------------
MEDIA (0.3%)
425 Thomson Corp., Global Notes (Canada) (A- , A3) 01/05/12 6.200 471,476
-------------
MISCELLANEOUS MANUFACTURING (0.2%)
315 Tyco International Group SA, Yankee Company
Guaranteed Notes (Luxembourg) (BBB , Baa3) 10/15/11 6.375 351,144
-------------
OIL & GAS (0.9%)
185 Canadian Natural Resources, Ltd., Yankee
Notes (Canada) (BBB+ , Baa1) 07/15/11 6.700 208,826
600 Norsk Hydro ASA, Yankee Debentures (Norway) (A , A2) 06/15/23 7.750 750,328
5 Norsk Hydro ASA, Yankee Debentures (Norway) (A , A2) 11/15/25 7.150 5,944
430 Petroliam Nasional Berhad, Rule 144A, Bonds
(Malaysia)++ (A- , Baa1) 08/15/15 7.750 527,233
-------------
1,492,331
-------------
PIPELINES (0.1%)
240 Trans-Canada Pipelines, Ltd., Yankee Bonds
(Canada) (A- , A2) 01/15/15 4.875 242,696
-------------
REAL ESTATE (0.2%)
275 Westfield Capital Corp., Rule 144A, Notes
(Australia)++ (A , A2) 11/15/14 5.125 276,087
-------------
</Table>
See Accompanying Notes to Financial Statements.
18
<Page>
<Table>
<Caption>
PAR RATINGS+
(000) (S&P/MOODY'S) MATURITY RATE% VALUE
----- ------------- -------- ----- -------------
FOREIGN BONDS
SOVEREIGN (5.8%)
$ 441 Federal Republic of Brazil, Restructured Debt
Bonds (Brazil)# (BB- , B1) 04/15/12 3.125 $ 405,476
407 Federal Republic of Brazil, Restructured Debt
Bonds (Brazil) (BB- , B2) 04/15/14 8.000 405,476
8,230 Government of New Zealand, Bonds (New Zealand) (AAA , Aaa) 04/15/15 6.000 5,619,146
985 Government of Russia, Series V,
Debentures (Russia) (BB+ , Ba2) 05/14/08 3.000 911,125
390 Republic of Colombia, Global Notes (Colombia)~ (BB , Ba2) 01/23/12 10.000 436,800
280 Republic of Venezeula, Global Notes (Venezuela) (B , B2) 10/08/14 8.500 284,900
520 Republic of Venezuela, Notes (Venezuela)# (B , B2) 04/20/11 3.090 451,117
520 United Mexican States, Global Notes (Mexico) (BBB- , Baa2) 01/14/11 8.375 614,900
300 United Mexican States, Global Notes (Mexico) (BBB- , Baa2) 04/08/33 7.500 320,550
495 United Mexican States, Series MTN,
Global Notes (Mexico) (BBB- , Baa2) 01/16/13 6.375 527,175
-------------
9,976,665
-------------
TELECOMMUNICATIONS (0.5%)
390 Deutsche Telekom International Finance BV,
Global Company Guaranteed Notes
(Netherlands)# (BBB+ , Baa1) 06/15/30 8.750 516,170
300 Telecom Italia Capital, Rule 144A, Company
Guaranteed Notes (Luxembourg)++ (BBB+ , Baa2) 09/30/14 4.950 298,270
-------------
814,440
-------------
TOTAL FOREIGN BONDS (Cost $17,574,549) 17,793,727
-------------
UNITED STATES TREASURY OBLIGATIONS (0.9%)
780 United States Treasury Bonds~ (AAA , Aaa) 02/15/23 7.125 1,005,256
35 United States Treasury Bonds~ (AAA , Aaa) 02/15/31 5.375 38,026
455 United States Treasury Notes~ (AAA , Aaa) 09/30/06 2.500 454,769
30 United States Treasury Notes~ (AAA , Aaa) 08/15/07 2.750 29,993
-------------
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $1,533,873) 1,528,044
-------------
<Caption>
NUMBER
OF
SHARES
-------
COMMON STOCK (0.0%)
FOOD (0.0%)
105 Archibald Candy Corp.*^ (Cost $8,925) 0
-------------
PREFERRED STOCK (0.3%)
TELECOMMUNICATIONS (0.3%)
400 Centaur Funding Corp., Series B, Rule 144A++
(Cost $405,680) 525,250
-------------
WARRANTS (0.0%)
BUILDING MATERIALS (0.0%)
65 Dayton Superior Corp., Rule 144A, strike $0.01,
expires 06/15/09*++ 1
-------------
</Table>
See Accompanying Notes to Financial Statements.
19
<Page>
<Table>
<Caption>
NUMBER OF
SHARES MATURITY RATE% VALUE
--------- -------- ----- -------------
WARRANTS
TELECOMMUNICATIONS (0.0%)
40 GT Group Telecom, Inc., Rule 144A, strike $0.00,
expires 02/01/10*++ $ 0
70 IWO Holdings, Inc., Rule 144A, strike $7.00,
expires 01/15/11*++ 105
-------------
105
-------------
TOTAL WARRANTS (Cost $3,300) 106
-------------
SHORT-TERM INVESTMENTS (15.3%)
7,582,075 State Street Navigator Prime Fund~~ 7,582,075
<Caption>
PAR
(000)
-----
$ 8,340 Fannie Mae Discount Notes^^ 11/16/04 1.760 8,333,884
1,550 Fannie Mae Discount Notes^^ 11/16/04 1.780 1,548,851
3,555 State Street Bank and Trust Co. Euro Time Deposit^^ 11/01/04 1.000 3,555,000
5,220 United States Treasury Bills++++^^ 01/20/05 1.870 5,199,296
-------------
TOTAL SHORT-TERM INVESTMENTS (Cost $26,219,106) 26,219,106
-------------
TOTAL INVESTMENTS AT VALUE (124.0%) (Cost $209,729,179) 212,661,863
LIABILITIES IN EXCESS OF OTHER ASSETS (-24.0%) (41,119,879)
-------------
NET ASSETS (100.0%) $ 171,541,984
=============
</Table>
INVESTMENT ABBREVIATIONS
TBA = To Be Announced
NR = Not Rated
OPEN OPTION CONTRACTS WRITTEN
<Table>
<Caption>
NUMBER OF EXERCISE EXPIRATION
NAME OF ISSUER CONTRACTS PRICE DATE VALUE
-------------- --------- -------- ---------- -----
S&P 500 Put Option 105 4.57 11/19/2004 $ 19,950
</Table>
- ----------
+ Credit ratings given by The Standard & Poor's Division of The
McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors Service, Inc.
("Moody's") are unaudited.
++ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
2004, these securities amounted to a value of $8,031,648 or 4.69% of net
assets.
++++ Collateral segregated for futures contracts.
++++++ A portion of the security is pledged as collateral for options written.
* 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.
^^ Collateral segregated for TBA securities.
^^^ Collateral segregated for swap contracts.
# Variable rate obligations -- The interest rate shown is the rate as of
October 31, 2004.
~ Security or portion thereof is out on loan.
~~ Represents security purchased with cash collateral received for
securities on loan.
| Bond is currently in default.
(1) Par value of security held is less than $1,000
See Accompanying Notes to Financial Statements.
20
<Page>
CREDIT SUISSE FIXED INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2004
<Table>
ASSETS
Investments at value, including collateral for securities on loan of $7,582,075
(Cost $209,729,179) (Note 1) $ 212,661,863(1)
Cash 596
Receivable for investments sold 28,973,041
Interest receivable 1,386,644
Unrealized appreciation on forward currency contracts (Note 1) 330,003
Receivable for fund shares sold 84,836
Variation margin receivable (Note 1) 37,198
Receivable due from custodian (Note 2) 21,051
Receivable on open swap contracts (Note 1) 8,631
Prepaid expenses and other assets 42,489
---------------
Total Assets 243,546,352
---------------
LIABILITIES
Advisory fee payable (Note 2) 45,713
Administrative services fee payable (Note 2) 50,744
Shareholder servicing/Distribution fee payable (Note 2) 43,655
Payable for investments purchased 62,921,133
Payable upon return of securities loaned (Note 1) 7,582,075
Payable for fund shares redeemed 873,929
Unrealized depreciation on forward currency contracts (Note 1) 249,078
Dividend payable 39,398
Outstanding options written, at value (premiums received $47,984) (Note 1) 19,950
Trustees' fee payable 4,268
Other accrued expenses payable 174,425
---------------
Total Liabilities 72,004,368
---------------
NET ASSETS
Capital stock, $0.001 par value (Note 5) 17,039
Paid-in capital (Note 5) 185,675,792
Undistributed net investment income 397,518
Accumulated net realized loss on investments, futures contracts,
options written, swap contracts and foreign currency transactions (17,824,344)
Net unrealized appreciation from investments, futures contracts,
options written, swap contracts and foreign currency translations 3,275,979
---------------
Net Assets $ 171,541,984
===============
COMMON SHARES
Net assets $ 113,947,216
Shares outstanding 11,319,862
---------------
Net asset value, offering price, and redemption price per share $ 10.07
===============
ADVISOR SHARES
Net assets $ 16,911,762
Shares outstanding 1,680,196
---------------
Net asset value, offering price, and redemption price per share $ 10.07
===============
</Table>
See Accompanying Notes to Financial Statements.
21
<Page>
<Table>
A SHARES
Net assets $ 30,050,370
Shares outstanding 2,982,443
---------------
Net asset value and redemption price per share $ 10.08
===============
Maximum offering price per share (net asset value/(1-4.75%)) $ 10.58
===============
B SHARES
Net assets $ 7,385,226
Shares outstanding 733,652
---------------
Net asset value and offering price per share $ 10.07
===============
C SHARES
Net assets $ 3,247,410
Shares outstanding 322,716
---------------
Net asset value and offering price per share $ 10.06
===============
</Table>
- ----------
(1) Including $7,428,808 of securities on loan.
See Accompanying Notes to Financial Statements.
22
<Page>
STATEMENT OF OPERATIONS
For the Year Ended October 31, 2004
<Table>
INVESTMENT INCOME (Note 1)
Interest $ 7,132,234
Dividends 40,687
Securities lending 14,590
Foreign taxes (365)
---------------
Total investment income 7,187,146
---------------
EXPENSES
Investment advisory fees (Note 2) 904,068
Administrative services fees (Note 2) 327,919
Shareholder servicing/Distribution fees (Note 2)
Advisor Class 93,336
Class A 79,299
Class B 81,170
Class C 33,991
Transfer agent fees (Note 2) 247,766
Registration fees 70,379
Legal fees 56,549
Custodian fees 48,410
Printing fees (Note 2) 41,981
Audit fees 31,802
Insurance expense 22,405
Trustees' fees 16,872
Commitment fees (Note 3) 4,891
Miscellaneous expense 12,851
---------------
Total expenses 2,073,689
Less: fees waived (Note 2) (520,197)
---------------
Net expenses 1,553,492
---------------
Net investment income 5,633,654
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS, FUTURES CONTRACTS,
OPTIONS WRITTEN, SWAP CONTRACTS AND FOREIGN CURRENCY RELATED ITEMS
Net realized gain from investments 4,443,784
Net realized loss from futures contracts (311,957)
Net realized gain from options written 902,609
Net realized gain from swap contracts 69,520
Net realized loss on foreign currency transactions (17,658)
Net change in unrealized appreciation (depreciation) from investments (927,018)
Net change in unrealized appreciation (depreciation) from futures contracts 85,653
Net change in unrealized appreciation (depreciation) from options written 28,034
Net change in unrealized appreciation (depreciation) from swap contracts 8,631
Net change in unrealized appreciation (depreciation) from foreign currency translations 11,690
---------------
Net realized and unrealized gain from investments, futures contracts, options written,
swap contracts and foreign currency related items 4,293,288
---------------
Net increase in net assets resulting from operations $ 9,926,942
===============
</Table>
See Accompanying Notes to Financial Statements.
23
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
---------------- ----------------
FROM OPERATIONS
Net investment income $ 5,633,654 $ 7,289,193
Net realized gain from investments, futures contracts,
options written, swap contracts and foreign currency transactions 5,086,298 2,093,481
Net change in unrealized appreciation (depreciation) from
investments, futures contracts, options written, swap contracts
and foreign currency translations (793,010) 9,282,026
--------------- ---------------
Net increase in net assets resulting from operations 9,926,942 18,664,700
--------------- ---------------
FROM DIVIDENDS
Dividends from net investment income
Common Class shares (4,136,648) (7,325,588)
Advisor Class shares (555,913) (964,964)
Class A shares (1,022,785) (194,085)
Class B shares (200,843) (210,137)
Class C shares (83,348) (39,650)
--------------- ---------------
Net decrease in net assets resulting from dividends (5,999,537) (8,734,424)
--------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5)
Proceeds from sale of shares 24,916,360 46,731,122
Exchange value of shares due to merger -- 34,014,898
Reinvestment of dividends 5,428,088 7,957,336
Net asset value of shares redeemed (56,794,831) (134,917,568)
--------------- ---------------
Net decrease in net assets from capital share transactions (26,450,383) (46,214,212)
--------------- ---------------
Net decrease in net assets (22,522,978) (36,283,936)
NET ASSETS
Beginning of year 194,064,962 230,348,898
--------------- ---------------
End of year $ 171,541,984 $ 194,064,962
=============== ===============
Undistributed Net Investment Income $ 397,518 $ 118,857
=============== ===============
</Table>
See Accompanying Notes to Financial Statements.
24
<Page>
CREDIT SUISSE FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 9.84 $ 9.42 $ 10.33 $ 9.78 $ 9.89
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment income 0.32(2) 0.37(2) 0.50 0.64 0.64
Net gain (loss) on investments, futures contracts,
options written, swap contracts and foreign currency
related items (both realized and unrealized) 0.25 0.49 (0.91) 0.55 (0.11)
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.57 0.86 (0.41) 1.19 0.53
---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.34) (0.44) (0.50) (0.64) (0.64)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 10.07 $ 9.84 $ 9.42 $ 10.33 $ 9.78
========== ========== ========== ========== ==========
Total return(3) 5.95% 9.19% (4.07)% 12.52% 5.59%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 113,947 $ 129,743 $ 194,688 $ 334,647 $ 302,188
Ratio of expenses to average net assets(4) 0.70% 0.70% 0.70% 0.72% 0.77%
Ratio of net investment income to average
net assets 3.27% 3.82% 4.90% 6.32% 6.53%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.29% 0.28% 0.22% 0.13% 0.02%
Portfolio turnover rate 385% 434% 385% 383% 247%
</Table>
- ----------
(1) As required, effective November 1, 2001, the Fund adopted the provisions of
AICPA Audit and Accounting Guide for Investment Companies and began
including paydown gains and losses in interest income. The effect of this
change is less than $0.01 per share for the year ended October 31, 2002 on
net investment income, net realized and unrealized gains and losses and the
ratio of net investment income to average net assets. Per share ratios and
supplemental data for prior periods have not been restated to reflect this
change.
(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 years shown, total returns would have been lower.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expenses. These arrangements resulted in reduction to
the Common Class shares' net expense ratio by .02% for the year ended
October 31, 2000. The Common Class shares' net operating expense ratio
after reflecting these arrangements was .75% for the year ended October 31,
2000. For the years ended October 31, 2004, 2003, 2002 and 2001, there was
no effect on the net operating expense ratio because of transfer agent
credits.
See Accompanying Notes to Financial Statements.
25
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2004 2003 2002(1) 2001 2000
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 9.84 $ 9.42 $ 10.33 $ 9.78 $ 9.89
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment income 0.28(2) 0.33(2) 0.47 0.62 0.62
Net gain (loss) on investments, futures contracts,
options written, swap contracts and foreign currency
related items (both realized and unrealized) 0.24 0.49 (0.91) 0.55 (0.11)
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.52 0.82 (0.44) 1.17 0.51
---------- ---------- ---------- ---------- ----------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (0.29) (0.40) (0.47) (0.62) (0.62)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 10.07 $ 9.84 $ 9.42 $ 10.33 $ 9.78
========== ========== ========== ========== ==========
Total return(3) 5.42% 8.77% (4.31)% 12.24% 5.33%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 16,912 $ 19,990 $ 25,650 $ 42,633 $ 6,804
Ratio of expenses to average net assets(4) 1.20% 1.09% 0.95% 0.96% 1.02%
Ratio of net investment income to average
net assets 2.78% 3.42% 4.65% 5.86% 6.31%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.29% 0.28% 0.22% 0.17% 0.02%
Portfolio turnover rate 385% 434% 385% 383% 247%
</Table>
- ----------
(1) As required, effective November 1, 2001, the Fund adopted the provisions of
AICPA Audit and Accounting Guide for Investment Companies and began
including paydown gains and losses in interest income. The effect of this
change is less than $0.01 per share for the year ended October 31, 2002 on
net investment income, net realized and unrealized gains and losses and the
ratio of net investment income to average net assets. Per share ratios and
supplemental data for prior periods have not been restated to reflect this
change.
(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 years shown, total returns would have been lower.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expenses. These arrangements resulted in a reduction
to the Advisor Class shares' net expense ratio by .01% and .02% for the
years ended October 31, 2001 and 2000, respectively. The Advisor Class
shares' net operating expense ratios after reflecting these arrangements
were .95% for the year ended October 31, 2001, and 1.00% for the year ended
October 31, 2000. For the years ended October 31, 2004, 2003 and 2002,
there was no effect on the net operating expense ratio because of transfer
agent credits.
See Accompanying Notes to Financial Statements.
26
<Page>
(For a Class A Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-----------------------------------------------------------
2004 2003 2002(1) 2001(2)
----------- ----------- ----------- -----------
PER SHARE DATA
Net asset value, beginning of period $ 9.85 $ 9.42 $ 10.33 $ 10.26
----------- ----------- ----------- -----------
INVESTMENT OPERATIONS
Net investment income 0.30(3) 0.18(3) 0.48 0.15
Net gain (loss) on investments, futures contracts,
options written, swap contracts and foreign currency
related items (both realized and unrealized) 0.25 0.66 (0.91) 0.07
----------- ----------- ----------- -----------
Total from investment operations 0.55 0.84 (0.43) 0.22
----------- ----------- ----------- -----------
LESS DIVIDENDS
Dividends from net investment income (0.32) (0.41) (0.48) (0.15)
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.08 $ 9.85 $ 9.42 $ 10.33
=========== =========== =========== ===========
Total return(4) 5.68% 9.03% (4.27)% 2.13%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 30,050 $ 33,556 $ 3,829 $ 406
Ratio of expenses to average net assets(5) 0.95% 0.95% 0.95% 0.95%(6)
Ratio of net investment income to average
net assets 3.03% 1.83% 4.54% 5.66%(6)
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.29% 0.28% 0.25% 0.31%(6)
Portfolio turnover rate 385% 434% 385% 383%
</Table>
(1) As required, effective November 1, 2001, the Fund adopted the provisions of
AICPA Audit and Accounting Guide for Investment Companies and began
including paydown gains and losses in interest income. The effect of this
change is less than $0.01 per share for the year ended October 31, 2002 on
net investment income, net realized and unrealized gains and losses and the
ratio of net investment income to average net assets. Per share ratios and
supplemental data for prior periods have not been restated to reflect this
change.
(2) For the period July 31, 2001 (inception date) through October 31, 2001.
(3) Per share information is calculated using the average shares outstanding
method.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2004, 2003
and 2002 and the period ended October 31, 2001, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
27
<Page>
(For a Class B Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-----------------------------------------------------------
2004 2003 2002(1) 2001(2)
----------- ----------- ----------- -----------
PER SHARE DATA
Net asset value, beginning of period $ 9.84 $ 9.42 $ 10.33 $ 10.26
----------- ----------- ----------- -----------
INVESTMENT OPERATIONS
Net investment income 0.23(3) 0.26(3) 0.40 0.13
Net gain (loss) on investments, futures contracts,
options written, swap contracts and foreign currency
related items (both realized and unrealized) 0.25 0.50 (0.91) 0.07
----------- ----------- ----------- -----------
Total from investment operations 0.48 0.76 (0.51) 0.20
----------- ----------- ----------- -----------
LESS DIVIDENDS
Dividends from net investment income (0.25) (0.34) (0.40) (0.13)
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.07 $ 9.84 $ 9.42 $ 10.33
=========== =========== =========== ===========
Total return(4) 4.90% 8.11% (5.02)% 1.96%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 7,385 $ 8,395 $ 5,149 $ 1,044
Ratio of expenses to average net assets(5) 1.70% 1.70% 1.70% 1.70%(6)
Ratio of net investment income to average
net assets 2.28% 2.65% 3.76% 4.87%(6)
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.29% 0.28% 0.24% 0.32%(6)
Portfolio turnover rate 385% 434% 385% 383%
</Table>
(1) As required, effective November 1, 2001, the Fund adopted the provisions of
AICPA Audit and Accounting Guide for Investment Companies and began
including paydown gains and losses in interest income. The effect of this
change is less than $0.01 per share for the year ended October 31, 2002 on
net investment income, net realized and unrealized gains and losses and the
ratio of net investment income to average net assets. Per share ratios and
supplemental data for prior periods have not been restated to reflect this
change.
(2) For the period July 31, 2001 (inception date) through October 31, 2001.
(3) Per share information is calculated using the average shares outstanding
method.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2004, 2003
and 2002 and the period ended October 31, 2001, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
28
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
-----------------------------------------------------------
2004 2003 2002(1) 2001(2)
----------- ----------- ----------- -----------
PER SHARE DATA
Net asset value, beginning of period $ 9.84 $ 9.42 $ 10.33 $ 10.26
----------- ----------- ----------- -----------
INVESTMENT OPERATIONS
Net investment Income 0.22(3) 0.24(3) 0.40 0.12
Net gain (loss) on investments, futures contracts,
options written, swap contracts and foreign currency
related items (both realized and unrealized) 0.25 0.52 (0.91) 0.07
----------- ----------- ----------- -----------
Total from investment operations 0.47 0.76 (0.51) 0.19
----------- ----------- ----------- -----------
LESS DIVIDENDS
Dividends from net investment income (0.25) (0.34) (0.40) (0.12)
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.06 $ 9.84 $ 9.42 $ 10.33
=========== =========== =========== ===========
Total return(4) 4.79% 8.11% (5.03)% 1.89%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 3,247 $ 2,381 $ 1,033 $ 296
Ratio of expenses to average net assets(5) 1.70% 1.70% 1.70% 1.70%(6)
Ratio of net investment income to average
net assets 2.25% 2.45% 3.81% 4.82%(6)
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.29% 0.28% 0.23% 0.33%(6)
Portfolio turnover rate 385% 434% 385% 383%
</Table>
(1) As required, effective November 1, 2001, the Fund adopted the provisions of
AICPA Audit and Accounting Guide for Investment Companies and began
including paydown gains and losses in interest income. The effect of this
change is less than $0.01 per share for the year ended October 31, 2002 on
net investment income, net realized and unrealized gains and losses and the
ratio of net investment income to average net assets. Per share ratios and
supplemental data for prior periods have not been restated to reflect this
change.
(2) For the period July 31, 2001 (inception date) through October 31, 2001.
(3) Per share information is calculated using the average shares outstanding
method.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods less than one year are not
annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2004, 2003
and 2002 and the period ended October 31, 2001, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
29
<Page>
CREDIT SUISSE FIXED INCOME FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 2004
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Credit Suisse Fixed Income Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified
open-end management investment company that seeks to generate high current
income consistent with reasonable risk and, secondarily, capital appreciation.
The Fund was organized under the laws of the Commonwealth of Massachusetts as a
business trust on January 20, 1987.
The Fund is authorized to offer five classes of shares: Common Class shares,
Advisor Class shares, Class A shares, Class B shares and Class C shares. Each
class of shares represents an equal pro rata interest in the Fund, except that
they bear different expenses which reflect the differences in the range of
services provided to them. The Fund's Common Class shares are closed to new
investors, other than (1) investors in employee retirement, stock, bonus,
pension or profit-sharing plans, (2) investment advisory clients of Credit
Suisse Asset Management, LLC ("CSAM"), (3) certain registered investment
advisers ("RIAs"), (4) certain broker-dealers and RIAs with clients
participating in comprehensive fee programs and (5) employees of CSAM or its
affiliates and current and former Directors or Trustees of funds advised by CSAM
or its affiliates. Any Common Class shareholder as of the close of business on
December 12, 2001 can continue to buy Common Class shares of the Fund and open
new accounts under the same Social Security number. Class A shares are sold
subject to a front-end sales charge of up to 4.75%. Class B shares are sold
subject to a contingent deferred sales charge which declines from 4.00% to zero
depending on the period of time the shares are held. Class C shares are sold
subject to a contingent deferred sales charge of 1.00% if redeemed within the
first year of purchase.
Effective as of the close of business on October 10, 2003, the Fund acquired
all of the net assets of the Credit Suisse Investment Grade Bond Fund
("Investment Grade Bond") in a tax-free exchange of shares. The Fund was also
the accounting survivor in the tax-free exchange. The shares exchanged were
3,055,439 Class A shares (valued at $30,096,186) of the Fund for 2,929,657
Common Class shares of Investment Grade Bond, 41,472 Class A shares (valued at
$408,501) of the Fund for 39,772 Class A shares of Investment Grade Bond,
245,688 Class B shares (valued at $2,417,588) of the Fund for 235,344 Class B
shares of Investment Grade Bond, and 111,039 Class C shares (valued at
$1,092,623) of the Fund for 106,231 Class C shares of Investment Grade Bond.
Investment Grade Bond's net assets of $34,014,898 at that date, which included
$438,125 of unrealized appreciation, were combined with those of the Fund. The
aggregate net assets of Investment Grade Bond and the Fund immediately before
the acquisition
30
<Page>
were $34,014,898 and $161,952,646, respectively, and the combined net assets of
the Fund after the acquisition were $195,967,544.
A) SECURITY VALUATION -- The net asset value of the Fund is determined daily
as of the close of regular trading on the New York Stock Exchange, Inc. (the
"Exchange") on each day the Exchange is open for business. Debt securities with
a remaining maturity greater than 60 days are valued in accordance with the
price supplied by a pricing service, which may use a matrix, formula or other
objective method that takes into consideration market indices, yield curves and
other specific adjustments. Debt obligations that will mature in 60 days or less
are valued on the basis of amortized cost, which approximates market value,
unless it is determined that using this method would not represent fair value.
The Fund's equity investments are valued at market value, which is generally
determined using the closing price on the exchange or market on which the
security is primarily traded at the time of valuation (the "Valuation Time"). If
no sales are reported, equity investments are generally valued at the most
recent bid quotation as of the Valuation Time or at the lowest asked quotation
in the case of a short sale of securities. Securities and other assets for which
market quotations are not readily available, or whose values have been
materially affected by events occurring before the Fund's Valuation Time but
after the close of the securities' primary markets, are valued at fair value as
determined in good faith by, or under the direction of, the Board of Trustees
under procedures established by the Board of Trustees. The Fund may utilize a
service provided by an independent third party which has been approved by the
Board of Trustees to fair value certain securities.
B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Fund 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 Fund does 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 Fund isolates 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.
31
<Page>
C) SECURITY TRANSACTION AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date. Certain expenses are
class-specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon the relative net asset value
of the outstanding shares of that class. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income are declared daily and paid monthly. 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
the Fund's intention to continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code of
1986, as amended, and make the requisite distributions to its shareholders,
which will be sufficient to relieve it from federal income and excise taxes.
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 Fund, together with other funds/portfolios
advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect,
wholly-owned subsidiary of Credit Suisse Group, pools available cash into either
a short-term variable rate time deposit issued by State Street Bank and Trust
Company ("SSB"), the Fund's custodian, or a money market fund advised by CSAM.
The short-term time deposit issued by SSB is a variable rate account classified
as a short-term investment.
32
<Page>
H) FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward
foreign currency contracts for the purchase or sale of a specific foreign
currency at a fixed price on a future date. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the terms
of their contracts and from unanticipated movements in the value of a foreign
currency. The Fund will enter into forward foreign currency contracts primarily
for hedging purposes. Forward foreign currency contracts are adjusted by the
daily forward exchange rate of the underlying currency and any gains or losses
are recorded for financial statement purposes as unrealized until the contract
settlement date or an offsetting position is entered into. At October 31, 2004,
the Fund had the following open forward foreign currency contracts:
<Table>
<Caption>
EXPIRATION FOREIGN CURRENCY CONTRACT CONTRACT UNREALIZED
FORWARD FOREIGN CURRENCY CONTRACT DATE TO BE PURCHASED/(SOLD) AMOUNT VALUE GAIN (LOSS)
- --------------------------------- ---------- ---------------------- ------------- ------------- -------------
Australian Dollar 1/13/05 A$ 5,600,000 $ 4,015,200 $ 4,154,986 $ 139,786
British Pound 1/13/05 L (1,700,000) (3,009,000) (3,101,776) (92,776)
European Economic Unit 1/13/05 EURO 2,071,000 2,543,664 2,639,940 96,276
European Economic Unit 1/13/05 EURO 635,000 801,307 809,446 8,139
European Economic Unit 1/13/05 EURO 1,900,000 2,415,223 2,421,963 6,740
European Economic Unit 1/13/05 EURO (1,434,000) (1,761,282) (1,827,945) (66,663)
Japanese Yen 1/13/05 Y 8,400,000 76,164 79,583 3,419
Japanese Yen 1/13/05 Y 185,842,470 1,685,065 1,760,709 75,644
Japanese Yen 1/13/05 Y (8,400,000) (76,164) (79,583) (3,419)
New Zealand Dollar 1/13/05 NZ$ (2,438,690) (1,616,851) (1,651,738) (34,887)
Swiss Franc 1/13/05 SwF (1,000,000) (793,651) (836,848) (43,197)
Swiss Franc 1/13/05 SwF (590,000) (493,332) (493,740) (408)
Swiss Franc 1/13/05 SwF (1,320,000) (1,096,910) (1,104,639) (7,729)
------------- ------------- -------------
$ 2,689,433 $ 2,770,358 $ 80,925
============= ============= =============
</Table>
I) TBA PURCHASE COMMITMENTS -- The Fund may enter into "TBA" (to be
announced) purchase commitments to purchase securities for a fixed price at a
future date, typically not exceeding 45 days. TBA purchase commitments may be
considered securities in themselves, and involve a risk of loss if the value of
the security to be purchased declines prior to settlement date. This risk is in
addition to the risk of decline in the Fund's other assets. Unsettled TBA
purchase commitments are valued at the current market value of the underlying
securities, according to the procedures described under "Security Valuation"
above.
J) FUTURES -- The Fund may enter into futures contracts to the extent
permitted by its investment policies and objectives. Upon entering into a
futures contract, the Fund is required to deposit cash or pledge U.S. Government
securities as initial margin. Subsequent payments, which are
33
<Page>
dependent on the daily fluctuations in the value of the underlying instrument,
are made or received by the Fund each day (daily variation margin) and are
recorded as unrealized gains or losses until the contracts are closed. When the
contracts are closed, the Fund records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transactions and
the Fund's basis in the contracts. Risks of entering into futures contracts for
hedging purposes include the possibility that a change in the value of the
contract may not correlate with the changes in the value of the underlying
instruments. In addition, the purchase of a futures contract involves the risk
that the Fund could lose more than the original margin deposit and subsequent
payments required for a futures transaction. At October 31, 2004, the Fund had
the following open futures contracts:
<Table>
<Caption>
UNREALIZED
NUMBER OF EXPIRATION CONTRACT CONTRACT APPRECIATION/
FUTURES CONTRACTS CONTRACTS DATE AMOUNT VALUE (DEPRECIATION)
- ----------------- --------- ---------- --------------- --------------- ---------------
U.S. Treasury
Bonds Futures 85 12/20/04 $ 9,421,679 $ 9,676,719 $ 255,040
--------------- --------------- ---------------
U.S. Treasury
10 Year Notes Futures (59) 12/20/04 (6,687,155) (6,700,188) (13,033)
U.S. Treasury
5 Year Notes Futures (6) 12/20/04 (667,751) (668,250) (499)
U.S. Treasury
2 Year Notes Futures (66) 12/30/04 (13,960,729) (13,976,531) (15,802)
--------------- --------------- ---------------
(21,315,635) (21,344,969) (29,334)
--------------- --------------- ---------------
$ (11,893,956) $ (11,668,250) $ 225,706
=============== =============== ===============
</Table>
K) OPTIONS -- The Fund may purchase and write (sell) call and put options on
securities, currencies and swap agreements (options on swap agreements are
commonly known as "swaptions"). The Fund may write covered and uncovered put and
call options and purchase put and call options for hedging purposes or to
increase total return. The risk associated with purchasing an option is that the
Fund pays a premium whether or not the option is exercised. Additionally, the
Fund bears the risk of loss of premium and change in market value should the
counterparty not perform under the contract. Put and call options purchased are
accounted for in the same manner as portfolio securities. The cost of securities
acquired through the exercise of call options is increased by the premium paid.
The proceeds from securities sold through the exercise of put options are
decreased by the premium paid.
When the Fund writes an option, the premium received by the Fund is recorded
as a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options that
34
<Page>
expire unexercised are recorded by the Fund on the expiration date as realized
gains from options transactions. The difference between the premium received and
the amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or if the premium received is
less than the amount paid for the closing purchase transaction, as a realized
loss. If a call option is exercised, the premium received is added to the
proceeds from the sale of the underlying security in determining whether the
Fund has realized a gain or loss. If a put option is exercised, the premium
received reduces the cost basis of the security purchased by the Fund. The risk
involved in writing an option is that, if the option is exercised, the
underlying security could then be purchased or sold by the Fund at a
disadvantageous price. Uncovered options are riskier than covered options
because there is no underlying security held by the Fund that can act as a
partial hedge. Uncovered calls have speculative characteristics and the
potential for loss is unlimited. There is also a risk that the securities on
which the option is written may not be available for purchase if the call option
is exercised. Uncovered put options have speculative characteristics and the
potential loss is substantial.
Exchange-traded options are valued at the last sale price in the market where
such contracts are principally traded. OTC equity index options are priced
according to the contract specifications (days to expiration, current spot index
level, interest rates, dividends, strike price) using the Black-Scholes pricing
model, modified for dividends. The volatility input assumption is interpolated
from the previous day's price. On a weekly basis and at month end, CSAM receives
a price indication sheet from the various broker dealers and inputs these prices
to update the volatility.
Transactions in written options for puts and calls for the year ended October
31, 2004 were as follows:
<Table>
<Caption>
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
--------- ------------
Options oustanding at beginning of year -- $ --
Options written 2,398 1,301,785
Options expired (374) (216,225)
Options bought to close (1,919) (1,037,576)
--------- ------------
Options outstanding at end of year 105 $ 47,984
========= ============
</Table>
L) SWAPS -- The Fund may enter into index swaps for hedging purposes or to
seek to increase total return. A swap is an agreement that obligates two parties
to exchange a series of cash flows at specified intervals based upon or
calculated by reference to changes in specified prices or rates for a specified
amount of an underlying asset or notional principal amount. The Fund will
35
<Page>
enter into index swaps only on a net basis, which means that the two payment
streams are netted out, with the Fund receiving or paying, as the case may be,
only the net amount of the two payments. Risks may arise as a result of the
failure of the counterparty to the swap contract to comply with the terms of the
swap contract. The loss incurred by the failure of a counterparty is generally
limited to the net interest payment to be received by the Fund and/or the
termination value at the end of the contract. Therefore, the Fund considers the
creditworthiness of each counterparty to a swap contract in evaluating potential
credit risk. Additionally, risks may arise from unanticipated movements in
interest rates or in the value of the underlying reference asset or index.
The Fund records unrealized gains or losses on a daily basis representing the
value and the current net receivable or payable relating to open swap contracts.
Net amounts received or paid on the swap contract are recorded as realized gains
or losses. Fluctuations in the value of swap contracts are recorded for
financial statement purposes as unrealized appreciation or depreciation of swap
contracts. Realized gains and losses from terminated swaps are included in net
realized gains/losses on swap contracts transactions. At October 31, 2004 the
Fund had outstanding swap contracts as follows:
<Table>
<Caption>
NET UNREALIZED
DESCRIPTION NOTIONAL AMOUNT EXPIRATION DATE APPRECIATION
----------- --------------- --------------- ------------
Lehman CMBS AAA Total Return Swap $ 1,970,000 12/1/2004 $ 8,631
</Table>
M) SECURITIES LENDING -- Loans of securities are required at all times to be
secured by collateral at least equal to 102% of the market value of domestic
securities on loan (including any accrued interest thereon) and 105% of the
market value of foreign securities on loan (including any accrued interest
thereon). Cash collateral received by the Fund in connection with securities
lending activity may be pooled together with cash collateral for other
funds/portfolios advised by CSAM and may be invested in a variety of
investments, including certain CSAM-advised funds, funds advised by SSB, the
Fund's securities lending agent, or money market instruments. However, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
The market value of securities on loan to brokers and the value of collateral
held by the Fund with respect to such loans at October 31, 2004 is as follows:
<Table>
<Caption>
MARKET VALUE OF VALUE OF
SECURITIES LOANED COLLATERAL RECEIVED
----------------- -------------------
$ 7,428,808 $ 7,582,075
</Table>
36
<Page>
Prior to March 17, 2004, Credit Suisse First Boston ("CSFB"), an affiliate of
CSAM, had been engaged by the Fund to act as the Fund's securities lending
agent.
Effective March 17, 2004, SSB has been engaged by the Fund to act as the
Fund's securities lending agent. The Fund's securities lending arrangement
provides that the Fund and SSB will share the net income earned from the
securities lending activities, with the 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. The Fund may also be entitled to certain minimum amounts of
income from its securities lending activities. Securities lending income is
accrued as earned.
N) OTHER -- Lower-rated debt securities (commonly known as "junk bonds")
possess speculative characteristics and are subject to greater market
fluctuations and risk of lost income and principal than higher-rated debt
securities for a variety of reasons. Also, during an economic downturn or
substantial period of rising interest rates, highly leveraged issuers may
experience financial stress which would adversely affect their ability to
service their principal and interest payment obligations, to meet projected
business goals and to obtain additional financing.
In addition, periods of economic uncertainty and changes can be expected to
result in increased volatility of market prices of lower-rated debt securities
and (to the extent the Fund invests in junk bonds) the Fund's net asset value.
The Fund may invest in securities of foreign countries and governments which
involve certain risks in addition to those inherent in domestic investments.
Such risks generally include, among others, currency risks (fluctuations in
currency exchange rates), information risk (key information may be inaccurate or
unavailable) and political risk (expropriation, nationalization or the
imposition of capital or currency controls or punitive taxes). Other risks of
investing in foreign securities include liquidity and valuation risks.
The Fund may be subject to taxes imposed by countries in which it invests
with respect to its investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned or repatriated and
capital gains realized on the sale of such investments. The Fund accrues such
taxes when the related income or gains are earned.
37
<Page>
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for the Fund. For its investment advisory
services, CSAM is entitled to receive a fee from the Fund at an annual rate of
0.50% of the Fund's average daily net assets. For the year ended October 31,
2004, investment advisory fees earned and voluntarily waived were $904,068 and
$520,197, respectively. CSAM will not recapture from the Fund any fees waived
during the fiscal year ended October 31, 2004.
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as co-administrators to the Fund.
For its co-administrative services, CSAMSI currently receives a fee
calculated at an annual rate of 0.10% of the Fund's average daily net assets.
For the year ended October 31, 2004, co-administrative services fees earned by
CSAMSI were $180,813.
For its co-administrative services, SSB receives a fee, exclusive of
out-of-pocket expenses, based upon the following fee schedule calculated in
total for all the Credit Suisse funds/portfolios co-administered by SSB and
allocated based upon relative average net assets of each fund/portfolio, subject
to an annual minimum fee.
<Table>
<Caption>
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ -----------
First $5 billion 0.050% of average daily net assets
Next $5 billion 0.035% of average daily net assets
Over $10 billion 0.020% of average daily net assets
</Table>
For the year ended October 31, 2004, co-administrative services fees earned
by SSB (including out-of-pocket expenses) were $147,106.
In addition to serving as the Fund's co-administrator, CSAMSI currently
serves as distributor of the Fund's shares. Pursuant to distribution plans
adopted by the Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. Advisor Class shares may pay such fee at an
annual rate not to exceed 0.75% of the average daily net assets. This fee is
currently calculated at an annual rate of 0.50% of the average daily net assets
of the Advisor Class shares; prior to April 6, 2003, this fee was calculated at
an annual rate of 0.25% of the average daily net assets of the Advisor Class
shares. For Class A shares of the Fund, the fee is calculated at an annual rate
of 0.25% of the daily average net assets of the Class A shares. For Class B and
Class C shares of the Fund, the fee is calculated at an annual rate of 1.00% of
the average daily net assets of the Class B and Class C shares of the Fund.
Common Class shares do not bear any distribution fees.
38
<Page>
Certain brokers, dealers and financial representatives provide transfer agent
related services to the Fund, and receive compensation for these services from
CSAM. CSAM is then reimbursed by the Fund. For the year ended October 31, 2004,
the Fund reimbursed CSAM $151,540, which is included in the Fund's transfer
agent expense.
For the year ended October 31, 2004, CSAMSI and its affiliates advised the
Fund that it retained $370 from commissions earned on the sale of the Fund's
Class A shares.
For the period November 1, 2003 to March 16, 2004, CSFB received $1,048 in
fees for its securities lending activities.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Fund to provide certain financial printing and fulfillment services. For the
year ended October 31, 2004, Merrill was paid $16,807 for its services to the
Fund.
The receivable due from custodian as of October 31, 2004 of $21,051 was due
to a revaluation of a forward foreign currency contract. Subsequent to the
fiscal year end, the custodian (SSB) reimbursed the Fund.
NOTE 3. LINE OF CREDIT
The Fund, together with other funds/portfolios advised by CSAM (collectively,
the "Participating Funds"), participates in a $75 million committed, unsecured
line of credit facility ("Credit Facility") for temporary or emergency purposes
with Deutsche Bank, A.G. as administrative agent and syndication agent and SSB
as operations agent. Under the terms of the Credit Facility, the Participating
Funds pay an aggregate commitment fee at a rate of 0.10% per annum on the
average unused amount of the Credit Facility, which is allocated among the
Participating Funds in such manner as is determined by the governing Boards of
the Participating Funds. In addition, the Participating Funds pay interest on
borrowings at the Federal Funds rate plus 0.50%. At October 31, 2004 and during
the year ended October 31, 2004, the Fund had no borrowings under the Credit
Facility.
39
<Page>
NOTE 4. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 2004, purchases and sales of investment
securities (excluding short-term investments) and U.S. Government and Agency
Obligations were as follows:
<Table>
<Caption>
U.S. GOVERNMENT
INVESTMENTS AND AGENCY OBLIGATIONS
----------------------------- ----------------------------
PURCHASES SALES PURCHASES SALES
-------------- ------------- ------------- -------------
$ 758,689,540 $ 768,195,342 $ 659,441,631 $ 668,535,136
</Table>
NOTE 5. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue an unlimited number of full and fractional
shares of beneficial interest, $.001 par value per share, of which an unlimited
number of shares are classified as Common Class shares, Advisor Class shares,
Class A shares, Class B shares, and Class C shares. Transactions in capital
shares for each class were as follows:
<Table>
<Caption>
COMMON CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 1,765,117 $ 17,536,529 4,007,018 $ 39,160,319
Shares issued in reinvestment
of dividends 397,120 3,942,591 703,090 6,881,933
Shares redeemed (4,022,117) (39,854,945) (12,202,771) (119,362,160)
-------------- -------------- -------------- --------------
Net decrease (1,859,880) $ (18,375,825) (7,492,663) $ (73,319,908)
============== ============== ============== ==============
<Caption>
ADVISOR CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 59,167 $ 583,439 77,275 $ 758,784
Shares issued in reinvestment
of dividends 39,204 389,176 71,094 695,886
Shares redeemed (448,568) (4,474,273) (841,112) (8,240,192)
-------------- -------------- -------------- --------------
Net decrease (350,197) $ (3,501,658) (692,743) $ (6,785,522)
============== ============== ============== ==============
<Caption>
CLASS A
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 440,763 $ 4,374,282 385,695 $ 3,797,257
Shares exchanged due to merger -- -- 3,096,911 30,504,687
Shares issued in reinvestment
of dividends 95,842 952,141 20,465 201,028
Shares redeemed (960,335) (9,547,906) (503,290) (4,906,649)
-------------- -------------- -------------- --------------
Net increase (decrease) (423,730) $ (4,221,483) 2,999,781 $ 29,596,323
============== ============== ============== ==============
</Table>
40
<Page>
<Table>
<Caption>
CLASS B
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 40,551 $ 402,569 204,497 $ 1,990,205
Shares exchanged due to merger -- -- 245,688 2,417,588
Shares issued in reinvestment
of dividends 12,358 122,683 15,648 153,218
Shares redeemed (172,157) (1,690,467) (159,616) (1,567,100)
-------------- -------------- -------------- --------------
Net increase (decrease) (119,248) $ (1,165,215) 306,217 $ 2,993,911
============== ============== ============== ==============
<Caption>
CLASS C
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 202,928 $ 2,019,541 104,608 $ 1,024,557
Shares exchanged due to merger -- -- 111,039 1,092,623
Shares issued in reinvestment
of dividends 2,166 21,497 2,586 25,271
Shares redeemed (124,305) (1,227,240) (85,970) (841,467)
-------------- -------------- -------------- --------------
Net increase 80,789 $ 813,798 132,263 $ 1,300,984
============== ============== ============== ==============
</Table>
On October 31 2004, the number of shareholders that held 5% or more of the
outstanding shares of each class of the Fund was as follows:
<Table>
<Caption>
NUMBER OF APPROXIMATE PERCENTAGE
FUND SHAREHOLDERS OF OUTSTANDING SHARES
---- ------------ ----------------------
Common Class 5 65%
Class A 3 52%
Class B 1 9%
Class C 1 64%
</Table>
Some of the shareholders are omnibus accounts, which hold shares on behalf of
individual shareholders.
NOTE 6. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP. These differences
are primarily due to differing treatments of losses deferred due to wash sales,
foreign currency transactions, gains and losses from paydowns and swap
contracts, and interest accruals on defaulted bonds.
The tax characteristics of dividends paid during the years ended October 31,
2004 and 2003, respectively, by the Fund were as follows:
<Table>
<Caption>
ORDINARY INCOME
---------------------------
2004 2003
------------ -----------
$ 5,999,537 $ 8,734,424
</Table>
41
<Page>
At October 31, 2004, the components of distributable earnings on a tax basis
by the Fund were as follows:
<Table>
Undistributed ordinary loss-other $ (8,631)
Undistributed net investment income 435,044
Accumulated net realized loss (17,477,524)
Undistributed capital-other (334,664)
Unrealized appreciation 3,234,928
--------------
$ 14,150,847
==============
</Table>
At October 31, 2004, the Fund had capital loss carryforwards available to
offset possible future capital gains as follows:
<Table>
<Caption>
EXPIRES OCTOBER 31,
2009
-------------------
$ 17,477,524
</Table>
At October 31, 2004, the Fund has utilized $4,555,461 of the capital loss
carryforward during the year ended.
At October 31, 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 $209,770,231, $3,353,185,
$(461,552) and $2,891,633, respectively.
At October 31, 2004, the Fund reclassified $644,544 from accumulated net
realized loss from investments to accumulated net investment loss, to adjust for
current period permanent book/tax differences which arose principally from
differing book/tax treatments of foreign currency translations, gains and losses
from paydowns and swap contracts, and interest accruals on defaulted bonds. Net
assets were not affected by these reclassifications.
NOTE 7. CONTINGENCIES
In the normal course of business, the Fund may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Fund's maximum exposure under these arrangements is dependent on future claims
that may be made against the Fund and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
42
<Page>
CREDIT SUISSE FIXED INCOME FUND
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
Credit Suisse Fixed Income Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Credit Suisse Fixed Income Fund
(the "Fund") at October 31, 2004, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the years (or
periods) presented, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2004 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
December 15, 2004
43
<Page>
CREDIT SUISSE FIXED INCOME FUND
INFORMATION CONCERNING TRUSTEES AND OFFICERS (UNAUDITED)
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY TRUSTEESHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ----------------------- --------------- ------------ ------------------------------- ------------- -----------------------
INDEPENDENT TRUSTEES
Richard H. Francis Trustee, Since Currently retired 42 None
c/o Credit Suisse Asset Nominating 1999
Management, LLC and Audit
466 Lexington Avenue Committee
New York, New York Member
10017-3140
Date of Birth: 04/23/32
Jeffrey E. Garten Trustee, Since Dean of Yale School of 41 Director of Aetna, Inc.
Box 208200 Nominating 1998(2) Management and William S. (insurance company);
New Haven, Connecticut and Audit Beinecke Professor in the Director of Calpine
06520-8200 Committee Practice of International Trade Corporation (energy
Member and Finance from November 1995 provider); Trustee of
Date of Birth: 10/29/46 to present. CarMax Group (used car
dealers).
Peter F. Krogh Trustee, Since Dean Emeritus and Distinguished 41 Director of Carlisle
301 ICC Nominating 2001 Professor of International Companies Incorporated
Georgetown University Committee Affairs at the Edmund A. Walsh (diversified manufacturing
Washington, DC 20057 Chairman and School of Foreign Service, company).
Audit Georgetown University from June
Date of Birth: 02/11/37 Committee 1995 to present.
Member
</Table>
- ----------
(1) Each Trustee and Officer serves until his or her respective successor has
been duly elected and qualified.
(2) Mr. Garten was initially appointed as a Trustee of the Fund on February 6,
1998. He resigned as Trustee on February 3, 2000, and was subsequently
re-appointed on December 21, 2000.
44
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY TRUSTEESHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ----------------------- --------------- ------------ ------------------------------- ------------- -----------------------
INDEPENDENT TRUSTEES
James S. Pasman, Jr. Trustee, Since Currently retired 43 Director of Education
c/o Credit Suisse Asset Nominating 1999 Management Corp.
Management, LLC and Audit
466 Lexington Avenue Committee
New York, New York Member
10017-3140
Date of Birth: 12/20/30
Steven N. Rappaport Trustee, Since Partner of Lehigh Court, LLC 43 Director of Presstek,
Lehigh Court, LLC Nominating 1999 and RZ Capital (private Inc. (digital imaging
40 East 52nd Street Committee investment firms) from July technologies company);
New York, New York 10022 Member and 2002 to present; Transition Trustee of Wood
Audit Adviser to SunGard Securities Resources, LLC. (plywood
Date of Birth: 07/10/48 Committee Finance, Inc. from February manufacturing company).
Chairman 2002 to July 2002; President of
SunGard Securities Finance,
Inc. from 2001 to February
2002; President of Loanet, Inc.
(on-line accounting service)
from 1997 to 2001.
INTERESTED TRUSTEES
Michael E. Kenneally(3) Chairman Since Chairman and Global Chief 45 None
Credit Suisse Asset and Chief 2004 Executive Officer of CSAM since
Management, LLC Executive 2003; Chairman and Chief
466 Lexington Avenue Officer Investment Officer of Banc of
New York, New York America Capital Management from
10017-3140 1998 to March 2003.
Date of Birth: 03/30/54
</Table>
- ----------
(3) Mr. Kenneally is a Trustee who is an "interested person" of the Fund as
defined in the 1940 Act, because he is an officer of CSAM.
45
<Page>
<Table>
<Caption>
TERM NUMBER OF
OF OFFICE(1) PORTFOLIOS IN
AND FUND
POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY TRUSTEESHIPS
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE HELD BY TRUSTEE
- ----------------------- --------------- ------------ ------------------------------- ------------- -----------------------
INTERESTED TRUSTEES
William W. Priest(4) Trustee Since Chief Executive Officer of 48 Director of Globe
Epoch Investment 1999 J Net Enterprises, Inc. Wireless, LLC (maritime
Partners (technology holdings company) communication company);
667 Madison Avenue since June 2004; Chief Trustee of InfraRed X
New York, NY 10021 Executive Officer of Epoch (medical device
Investment Partners, Inc. since company); Director of
Date of Birth: 09/24/41 April 2004; Co-Managing J Net Enterprises, Inc.
Partner, Steinberg Priest &
Sloane Capital Management, LLC
from 2001 to March 2004;
Chairman and Managing Director
of CSAM from 2000 to February
2001; Chief Executive Officer
and Managing Director of CSAM
from 1990 to 2000.
</Table>
- ----------
(4) Mr. Priest is a Trustee who is an "interested person" of the Fund as
defined in the 1940 Act, because he provided consulting services to CSAM
within the last two years (ending 12/31/02).
46
<Page>
<Table>
<Caption>
TERM
OF OFFICE(1)
AND
POSITION(S) LENGTH
NAME, ADDRESS AND HELD WITH OF TIME
DATE OF BIRTH FUND SERVED PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ----------------------- --------------- ------------ ----------------------------------------------
OFFICERS
Michael A. Pignataro Chief Since Director and Director of Fund Administration
Credit Suisse Asset Financial 1999 of CSAM; Associated with CSAM since 1984;
Management, LLC Officer Officer of other Credit Suisse Funds
466 Lexington Avenue and
New York, New York Treasurer
10017-3140
Date of Birth: 11/15/59
Emidio Morizio Chief Since Vice President and Global Head of Compliance
Credit Suisse Asset Compliance 2004 of CSAM; Associated with CSAM since July 2000;
Management, LLC Officer Vice President and Director of Compliance of
466 Lexington Avenue Forstmann-Leff Associates from 1998 to June
New York, New York 2000; Officer of other Credit Suisse Funds
10017-3140
Date of Birth: 09/21/66
Ajay Mehra Chief Since Director and Deputy General Counsel of CSAM
Credit Suisse Asset Legal 2004 since September 2004; Senior Associate of
Management, LLC Officer Shearman & Sterling LLP from September 2000 to
466 Lexington Avenue September 2004; Senior Counsel of the SEC
New York, New York Division of Investment Management from June
10017-3140 1997 to September 2000; Officer of other
Credit Suisse Funds
Date of Birth: 08/14/70
J. Kevin Gao Vice Since Vice President and legal counsel of CSAM;
Credit Suisse Asset President 2004 Associated with CSAM since July 2003;
Management, LLC and Associated with the law firm of Willkie Farr &
466 Lexington Avenue Secretary Gallagher LLP from 1998 to 2003; Officer of
New York, New York other Credit Suisse Funds
10017-3140
Date of Birth: 10/13/67
Robert M. Rizza Assistant Since Assistant Vice President of CSAM since January
Credit Suisse Asset Treasurer 2002 2001; Associated with CSAM since 1998; Officer
Management, LLC of other Credit Suisse Funds
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 12/09/65
</Table>
The Statement of Additional Information includes additional information about
the Trustees and is available, without charge, upon request, by calling
800-927-2874.
47
<Page>
CREDIT SUISSE FIXED INCOME FUND
TAX INFORMATION LETTER (UNAUDITED)
October 31, 2004
IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS
Corporate Shareholders should note for the year ended October 31, 2004, the
percentage of the Fund's investment income (i.e., net investment income plus
short-term capital gains) that qualified for the intercorporate dividends
received deduction is 0.65%.
For the fiscal year ended October 31, 2004 certain dividends paid by the Fund
may be subject to a maximum tax rate of 15%, as provided for by the Jobs and
Growth Tax Relief Reconciliation Act of 2003. Complete information will be
reported in conjunction with your 2004 Form 1099-DIV.
For the fiscal year ended October 31, 2004, the Fund designates approximately
$36,320, or up to the maximum amount of such dividends allowable pursuant to the
Internal Revenue Code, as qualified dividend income eligible for reduced tax
rates. These lower rates range from 5% to 15% depending on an individual's tax
bracket. If the Fund pays a distribution during calendar year 2004, complete
information will be reported in conjunction with Form 1099-DIV.
48
<Page>
CREDIT SUISSE FIXED INCOME FUND
PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION
Information regarding how the Fund voted proxies related to its portfolio
securities during the 12-month period ended June 30, 2004 as well as the
policies and procedures that the Fund uses to determine how to vote proxies
relating to its portfolio securities are available:
- By calling 1-800-927-2874
- On the Fund's website, www.csam.com/us
- On the website of the Securities and Exchange Commission,
http://www.sec.gov.
The Fund files a complete schedule of its portfolio holdings for the first
and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms
N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC. Information on
the operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330.
49
<Page>
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<Page>
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<Page>
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<Page>
[CREDIT SUISSE ASSET MANAGEMENT LOGO]
P.O. BOX 55030, BOSTON, MA 02205-5030
800-927-2874 - www.csam.com/us
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. WPFIX-2-1004
<Page>
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics applicable to its Chief Executive
Officer, President, Chief Financial Officer and Chief Accounting Officer, or
persons performing similar functions. A copy of the code is filed as Exhibit
12(a)(1) to this Form. There were no amendments to the code during the fiscal
year ended October 31, 2004. There were no waivers or implicit waivers from the
code granted by the registrant during the fiscal year ended October 31, 2004.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's governing board has determined that it has three audit
committee financial experts serving on its audit committee: Richard H. Francis,
James S. Pasman, Jr., and Steven N. Rappaport. Each audit committee financial
expert is "independent" for purposes of this item.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) through (d). The information in the table below is provided for services
rendered to the registrant by its independent registered public accounting firm,
PricewaterhouseCoopers LLP ("PwC"), for its fiscal years ended October 31, 2003
and October 31, 2004.
<Table>
<Caption>
2003 2004
---------- ----------
Audit Fees $ 27,829 $ 27,829
Audit-Related Fees(1) $ 3,000 $ 4,500
Tax Fees(2) $ 2,323 $ 2,323
All Other Fees -- --
Total $ 33,152 $ 34,652
</Table>
(1) Services include agreed-upon procedures in connection with the registrant's
semi-annual financial statements ($3,000), and the registrant's third
quarter 2004 Form N-Q filing ($1,500).
(2) Tax services in connection with the registrant's excise tax calculations
and review of the registrant's applicable tax returns.
The information in the table below is provided with respect to non-audit
services that directly relate to the registrant's operations and financial
reporting and that were rendered by PwC to the registrant's investment adviser,
Credit Suisse Asset Management, LLC ("CSAM"), and any service provider to the
registrant controlling, controlled by or under common control with CSAM that
provided ongoing services to the registrant ("Covered Services Provider"), for
the registrant's fiscal years ended October 31, 2003 and October 31, 2004.
<Table>
<Caption>
2003 2004
---------- ----------
Audit-Related Fees N/A N/A
</Table>
2
<Page>
<Table>
Tax Fees N/A N/A
All Other Fees N/A N/A
Total N/A N/A
</Table>
(e)(1) Pre-Approval Policies and Procedures. The Audit Committee ("Committee")
of the registrant is responsible for pre-approving (i) all audit and permissible
non-audit services to be provided by the independent registered public
accounting firm to the registrant and (ii) all permissible non-audit services to
be provided by the independent registered public accounting firm to CSAM and any
Covered Services Provider if the engagement relates directly to the operations
and financial reporting of the registrant. The Committee may delegate its
responsibility to pre-approve any such audit and permissible non-audit services
to the Chairperson of the Committee, and the Chairperson shall report to the
Committee, at its next regularly scheduled meeting after the Chairperson's
pre-approval of such services, his or her decision(s). The Committee may also
establish detailed pre-approval policies and procedures for pre-approval of such
services in accordance with applicable laws, including the delegation of some or
all of the Committee's pre-approval responsibilities to other persons (other
than CSAM or the registrant's officers). Pre-approval by the Committee of any
permissible non-audit services shall not be required so long as: (i) the
aggregate amount of all such permissible non-audit services provided to the
registrant, CSAM and any Covered Services Provider constitutes not more than 5%
of the total amount of revenues paid by the registrant to its independent
registered public accounting firm during the fiscal year in which the
permissible non-audit services are provided; (ii) the permissible non-audit
services were not recognized by the registrant at the time of the engagement to
be non-audit services; and (iii) such services are promptly brought to the
attention of the Committee and approved by the Committee (or its delegate(s))
prior to the completion of the audit.
(e)(2) The information in the table below sets forth the percentages of fees for
services (other than audit, review or attest services) rendered by PwC to the
registrant for which the pre-approval requirement was waived pursuant to Rule
2-01(c)(7)(i)(C) of Regulation S-X:
<Table>
<Caption>
2003 2004
---------- ----------
Audit-Related Fees N/A N/A
Tax Fees N/A N/A
All Other Fees N/A N/A
Total N/A N/A
</Table>
3
<Page>
The information in the table below sets forth the percentages of fees for
services (other than audit, review or attest services) rendered by PwC to CSAM
and any Covered Services Provider required to be approved pursuant to Rule
2-01(c)(7)(ii)of Regulation S-X, for the registrant's fiscal years ended October
31, 2003 and October 31, 2004:
<Table>
<Caption>
2003 2004
---------- ----------
Audit-Related Fees N/A N/A
Tax Fees N/A N/A
All Other Fees N/A N/A
Total N/A N/A
</Table>
(f) Not Applicable.
(g) The aggregate fees billed by PwC for non-audit services rendered to the
registrant, CSAM and Covered Service Providers for the fiscal years ended
October 31, 2003 and October 31, 2004 were $5,323 and $6,823, respectively.
(h) Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Form N-CSR disclosure requirement is not applicable to the registrant.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of investments is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Form N-CSR disclosure requirement is not applicable to the registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Form N-CSR disclosure requirement is not applicable to this registrant.
4
<Page>
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Form N-CSR disclosure requirement is not applicable to the registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not Applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.
(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
second fiscal quarter of the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Registrant's Code of Ethics is an exhibit to this report.
(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
(a)(3) Not applicable.
(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.
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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 FIXED INCOME FUND
/s/ Michael E. Kenneally
------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: January 7, 2005
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/ Michael E. Kenneally
------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: January 7, 2005
/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: January 7, 2005
6