<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-5041
----------------------------------------
CREDIT SUISSE CAPITAL APPRECIATION FUND
---------------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
---------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
J. Kevin Gao, Esq.
Credit Suisse Capital Appreciation Fund
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: October 31
Date of reporting period: November 1, 2003 to October 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
<Page>
[CREDIT SUISSE ASSET MANAGEMENT LOGO]
CREDIT SUISSE FUNDS
ANNUAL REPORT
OCTOBER 31, 2004
- - CREDIT SUISSE
CAPITAL APPRECIATION FUND
- - CREDIT SUISSE
MID-CAP GROWTH FUND
- - CREDIT SUISSE
SMALL CAP GROWTH FUND
THE FUNDS' INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES (WHICH SHOULD BE
CONSIDERED CAREFULLY BEFORE INVESTING), AND MORE COMPLETE INFORMATION ABOUT THE
THE FUNDS, ARE PROVIDED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE
INVESTING. YOU MAY OBTAIN ADDITIONAL COPIES BY CALLING 800-927-2874 OR BY
WRITING TO CREDIT SUISSE FUNDS, P.O. BOX 55030, BOSTON, MA 02205-5030.
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR, IS LOCATED AT 466
LEXINGTON AVE., NEW YORK, NY 10017-3140. CREDIT SUISSE FUNDS ARE ADVISED BY
CREDIT SUISSE ASSET MANAGEMENT, LLC.
<Page>
INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD BE AWARE THAT THEY MAY BE ELIGIBLE
TO PURCHASE COMMON CLASS AND/OR ADVISOR CLASS SHARES (WHERE OFFERED) DIRECTLY OR
THROUGH CERTAIN INTERMEDIARIES. SUCH SHARES ARE NOT SUBJECT TO A SALES CHARGE
BUT MAY BE SUBJECT TO AN ONGOING SERVICE AND DISTRIBUTION FEE OF UP TO 0.50% OF
AVERAGE DAILY NET ASSETS. INVESTORS IN THE CREDIT SUISSE FUNDS SHOULD ALSO BE
AWARE THAT THEY MAY BE ELIGIBLE FOR A REDUCTION OR WAIVER OF THE SALES CHARGE
WITH RESPECT TO CLASS A, B OR C SHARES. FOR MORE INFORMATION, PLEASE REVIEW THE
RELEVANT PROSPECTUSES OR CONSULT YOUR FINANCIAL REPRESENTATIVE.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND FUND
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF 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.
<Page>
CREDIT SUISSE CAPITAL APPRECIATION FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2004 (unaudited)
November 24, 2004
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/03 - 10/31/04
<Table>
<Caption>
SHARE CLASS/BENCHMARK PERFORMANCE
Common 3.46%
Advisor 2.88%
Class A 3.13%
Class B 2.42%
Class C 2.35%
Russell 1000(R) Growth Index(1) 3.38%
</Table>
Performance for the Fund's Class A, Class B and Class C Shares is without the
maximum sales charge of 5.75%, 4.00% and 1.00%, respectively.(2)
MARKET OVERVIEW: STRONG START GIVES WAY TO SEESAW FINISH
The US equity market began the period on a strong note. An improving outlook
for the economy and corporate profits continued to help stocks regain their
footing after 2000's "bubble burst." However, the market faced headwinds as 2004
progressed, mostly in the form of domestic and international political
uncertainty, worries over rising interest rates and a surge in oil prices. The
market hit its low for the reporting period in August, but then moved upward
again as inflation and interest-rate fears subsided.
Style category, more than market cap size, was the driving factor behind
performance in the period. Growth stocks advanced, but lagged value stocks by a
considerable margin, reflecting the outperformance of energy and industrial-type
companies, which comprise a larger share of the value universe. Broadly, mid-
and small-capitalization stocks outpaced large cap stocks, a trend often (but
not always) seen in the early stages of economic recovery.
STRATEGIC REVIEW: INTERNET EXPOSURE DELIVERS
The Fund's Common Class shares modestly outperformed the benchmark, aided by
good stock selection within the consumer discretionary sector, in particular
internet companies such as Yahoo (2.8% of the Fund's portfolio as of October 31,
2004), which has benefited from a rising share of corporate advertising
revenues, and Ebay (2.8% of the Fund's portfolio as of October 31, 2004), a
pioneer in online retailing. Both are profitable internet companies with clearly
defined business models -- which was not the case for many "dot com" companies
when the internet bubble collapsed in 2000 -- profitably competing with more
traditional companies.
1
<Page>
In the industrial area, Tyco (2.9% of the Fund's portfolio as of October 31,
2004) was a standout, buoyed by new management's restructuring efforts. The Fund
was also helped by its overweighting in energy through much of the period. On
the negative side, the Fund's technology holdings detracted from its return,
especially in the software area.
GOING FORWARD: FOCUS ON COMPANY SELECTION, PRUDENT USE OF CASH
We continue to look for companies we believe are focused on the intelligent
use of capital, whether through strategic investments, share repurchase programs
or higher dividend payouts. The economic recovery has resulted in large
accumulated cash holdings within many companies, and how they deploy this cash
will likely to prove critical to stock performance.
Another theme is upgrading the portfolio's secular growth profile. This
reflects our general view that secular growth stocks should outperform companies
with cyclical business, such as semiconductor names whose cycles we believe are
past a peak. Recent noteworthy additions to the Fund in this context were Whole
Foods Market (1.2% of the Fund's portfolio as of October 31, 2004), an upscale
grocer; Getty Images (1.0% of the Fund's portfolio as of October 31, 2004), a
provider of e-commerce visual content to businesses worldwide; and McAfee (1.1%
of the Fund's portfolio as of October 31, 2004), which offers computer security
solutions with an emphasis on businesses' needs, but which is also entering the
consumer market.
Jeffrey T. Rose
Marian U. Pardo
Credit Suisse Asset Management, LLC (CSAM)
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THAT PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
2
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[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE CREDIT SUISSE CAPITAL APPRECIATION FUND COMMON CLASS SHARES, ADVISOR
CLASS SHARES AND THE RUSSELL 1000(R) GROWTH INDEX(1) FOR TEN YEARS.
<Table>
<Caption>
CREDIT SUISSE CAPITAL CREDIT SUISSE CAPITAL
APPRECIATION FUND -- COMMON CLASS APPRECIATION FUND -- ADVISOR CLASS RUSSELL 1000 GROWTH INDEX(1)
10/31/1994 $ 10,000 $ 10,000 $ 10,000
11/30/1994 $ 9,566 $ 9,564 $ 9,680
12/31/1994 $ 9,557 $ 9,548 $ 9,843
1/31/1995 $ 9,512 $ 9,495 $ 10,052
2/28/1995 $ 9,980 $ 9,958 $ 10,473
3/31/1995 $ 10,463 $ 10,444 $ 10,780
4/30/1995 $ 10,637 $ 10,611 $ 11,015
5/31/1995 $ 10,871 $ 10,846 $ 11,400
6/30/1995 $ 11,360 $ 11,324 $ 11,840
7/31/1995 $ 11,966 $ 11,924 $ 12,332
8/31/1995 $ 12,094 $ 12,045 $ 12,345
9/30/1995 $ 12,374 $ 12,318 $ 12,914
10/31/1995 $ 12,405 $ 12,341 $ 12,923
11/30/1995 $ 12,957 $ 12,888 $ 13,426
12/31/1995 $ 13,199 $ 13,127 $ 13,503
1/31/1996 $ 13,647 $ 13,568 $ 13,954
2/29/1996 $ 14,017 $ 13,931 $ 14,209
3/31/1996 $ 14,293 $ 14,198 $ 14,228
4/30/1996 $ 14,465 $ 14,363 $ 14,602
5/31/1996 $ 14,741 $ 14,631 $ 15,112
6/30/1996 $ 14,560 $ 14,449 $ 15,133
7/31/1996 $ 13,914 $ 13,801 $ 14,246
8/31/1996 $ 14,439 $ 14,319 $ 14,614
9/30/1996 $ 15,344 $ 15,210 $ 15,678
10/31/1996 $ 15,465 $ 15,322 $ 15,772
11/30/1996 $ 16,412 $ 16,247 $ 16,957
12/31/1996 $ 16,270 $ 16,108 $ 16,625
1/31/1997 $ 16,894 $ 16,722 $ 17,791
2/28/1997 $ 17,038 $ 16,857 $ 17,670
3/31/1997 $ 16,404 $ 16,224 $ 16,714
4/30/1997 $ 17,163 $ 16,962 $ 17,824
5/31/1997 $ 18,085 $ 17,864 $ 19,110
6/30/1997 $ 18,757 $ 18,526 $ 19,875
7/31/1997 $ 20,467 $ 20,205 $ 21,633
8/31/1997 $ 19,593 $ 19,332 $ 20,366
9/30/1997 $ 20,899 $ 20,618 $ 21,369
10/31/1997 $ 20,256 $ 19,975 $ 20,579
11/30/1997 $ 20,803 $ 20,502 $ 21,453
12/31/1997 $ 21,376 $ 21,064 $ 21,693
1/31/1998 $ 21,259 $ 20,936 $ 22,342
2/28/1998 $ 22,628 $ 22,278 $ 24,022
3/31/1998 $ 23,763 $ 23,387 $ 24,980
4/30/1998 $ 24,313 $ 23,924 $ 25,326
5/31/1998 $ 23,728 $ 23,340 $ 24,607
6/30/1998 $ 24,980 $ 24,565 $ 26,114
7/31/1998 $ 25,050 $ 24,612 $ 25,941
8/31/1998 $ 20,686 $ 20,318 $ 22,047
9/30/1998 $ 22,137 $ 21,741 $ 23,741
10/31/1998 $ 22,839 $ 22,418 $ 25,649
11/30/1998 $ 24,325 $ 23,877 $ 27,601
12/31/1998 $ 26,884 $ 26,374 $ 30,091
1/31/1999 $ 28,572 $ 28,009 $ 31,858
2/28/1999 $ 27,434 $ 26,886 $ 30,403
3/31/1999 $ 28,816 $ 28,229 $ 32,004
4/30/1999 $ 29,098 $ 28,497 $ 32,045
5/31/1999 $ 28,327 $ 27,728 $ 31,060
6/30/1999 $ 30,113 $ 29,462 $ 33,235
7/31/1999 $ 29,660 $ 29,010 $ 32,179
8/31/1999 $ 29,660 $ 28,998 $ 32,705
9/30/1999 $ 29,978 $ 29,303 $ 32,018
10/31/1999 $ 31,581 $ 30,853 $ 34,436
11/30/1999 $ 33,611 $ 32,818 $ 36,294
12/31/1999 $ 39,856 $ 38,893 $ 40,069
1/31/2000 $ 38,634 $ 37,704 $ 38,190
2/29/2000 $ 44,000 $ 42,905 $ 40,057
3/31/2000 $ 45,467 $ 44,323 $ 42,924
4/30/2000 $ 41,649 $ 40,581 $ 40,881
5/31/2000 $ 39,517 $ 38,487 $ 38,822
6/30/2000 $ 42,465 $ 41,338 $ 41,764
7/31/2000 $ 42,234 $ 41,108 $ 40,023
8/31/2000 $ 46,255 $ 44,999 $ 43,647
9/30/2000 $ 43,524 $ 42,337 $ 39,518
10/31/2000 $ 41,527 $ 40,365 $ 37,649
11/30/2000 $ 37,044 $ 36,002 $ 32,099
12/31/2000 $ 37,767 $ 36,689 $ 31,085
1/31/2001 $ 37,767 $ 36,674 $ 33,233
2/28/2001 $ 34,078 $ 33,078 $ 27,590
3/31/2001 $ 31,571 $ 30,622 $ 24,588
4/30/2001 $ 34,222 $ 33,188 $ 27,699
5/31/2001 $ 33,743 $ 32,713 $ 27,292
6/30/2001 $ 32,513 $ 31,493 $ 26,658
7/31/2001 $ 30,884 $ 29,909 $ 25,992
8/31/2001 $ 28,409 $ 27,501 $ 23,866
9/30/2001 $ 24,960 $ 24,159 $ 21,484
10/31/2001 $ 25,918 $ 25,062 $ 22,611
11/30/2001 $ 28,345 $ 27,406 $ 24,784
12/31/2001 $ 28,571 $ 27,614 $ 24,738
1/31/2002 $ 27,437 $ 26,505 $ 24,301
2/28/2002 $ 26,031 $ 25,143 $ 23,292
3/31/2002 $ 26,702 $ 25,776 $ 24,098
4/30/2002 $ 24,594 $ 23,733 $ 22,132
5/31/2002 $ 23,987 $ 23,130 $ 21,596
6/30/2002 $ 21,528 $ 20,770 $ 19,599
7/31/2002 $ 20,107 $ 19,376 $ 18,521
8/31/2002 $ 20,154 $ 19,423 $ 18,576
9/30/2002 $ 18,541 $ 17,855 $ 16,650
10/31/2002 $ 20,011 $ 19,265 $ 18,177
11/30/2002 $ 20,777 $ 19,994 $ 19,164
12/31/2002 $ 19,404 $ 18,663 $ 17,839
1/31/2003 $ 19,164 $ 18,425 $ 17,406
2/28/2003 $ 19,021 $ 18,283 $ 17,326
3/31/2003 $ 19,116 $ 18,378 $ 17,648
4/30/2003 $ 20,330 $ 19,518 $ 18,952
5/31/2003 $ 21,352 $ 20,485 $ 19,898
6/30/2003 $ 21,927 $ 21,039 $ 20,173
7/31/2003 $ 22,678 $ 21,736 $ 20,675
8/31/2003 $ 22,885 $ 21,942 $ 21,190
9/30/2003 $ 22,278 $ 21,340 $ 20,963
10/31/2003 $ 23,556 $ 22,560 $ 22,141
11/30/2003 $ 23,844 $ 22,814 $ 22,374
12/31/2003 $ 24,450 $ 23,400 $ 23,148
1/31/2004 $ 24,882 $ 23,796 $ 23,620
2/29/2004 $ 25,137 $ 24,034 $ 23,771
3/31/2004 $ 24,738 $ 23,637 $ 23,329
4/30/2004 $ 24,466 $ 23,368 $ 23,058
5/31/2004 $ 25,057 $ 24,350 $ 23,781
7/31/2004 $ 24,099 $ 22,988 $ 22,437
8/31/2004 $ 23,460 $ 22,370 $ 22,327
9/30/2004 $ 24,195 $ 23,067 $ 22,539
10/31/2004 $ 24,371 $ 23,210 $ 22,891
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE CAPITAL APPRECIATION FUND CLASS A SHARES, B SHARES, C SHARES(2)
AND THE RUSSELL 1000(R) GROWTH INDEX(1) FROM INCEPTION (11/30/01).
<Table>
<Caption>
CREDIT SUISSE CAPITAL CREDIT SUISSE CAPITAL CREDIT SUISSE CAPITAL RUSSELL 1000
APPRECIATION FUND -- CLASS A(2) APPRECIATION FUND -- CLASS B(2) APPRECIATION FUND -- CLASS C(2) GROWTH INDEX(1)
11/30/2001 $ 9,425 $ 10,000 $ 10,000 $ 10,000
12/31/2001 $ 9,496 $ 10,068 $ 10,068 $ 9,981
1/31/2002 $ 9,119 $ 9,663 $ 9,663 $ 9,805
2/28/2002 $ 8,652 $ 9,161 $ 9,161 $ 9,398
3/31/2002 $ 8,869 $ 9,387 $ 9,387 $ 9,723
4/30/2002 $ 8,168 $ 8,637 $ 8,637 $ 8,930
5/31/2002 $ 7,961 $ 8,417 $ 8,417 $ 8,714
6/30/2002 $ 7,149 $ 7,555 $ 7,550 $ 7,908
7/31/2002 $ 6,676 $ 7,043 $ 7,043 $ 7,473
8/31/2002 $ 6,692 $ 7,060 $ 7,060 $ 7,495
9/30/2002 $ 6,150 $ 6,485 $ 6,485 $ 6,718
10/31/2002 $ 6,639 $ 6,992 $ 6,992 $ 7,334
11/30/2002 $ 6,894 $ 7,262 $ 7,257 $ 7,732
12/31/2002 $ 6,437 $ 6,772 $ 6,772 $ 7,198
1/31/2003 $ 6,352 $ 6,682 $ 6,682 $ 7,023
2/28/2003 $ 6,304 $ 6,626 $ 6,626 $ 6,991
3/31/2003 $ 6,336 $ 6,660 $ 6,654 $ 7,121
4/30/2003 $ 6,740 $ 7,071 $ 7,071 $ 7,647
5/31/2003 $ 7,074 $ 7,420 $ 7,415 $ 8,029
6/30/2003 $ 7,265 $ 7,617 $ 7,612 $ 8,139
7/31/2003 $ 7,510 $ 7,865 $ 7,865 $ 8,342
8/31/2003 $ 7,579 $ 7,939 $ 7,933 $ 8,550
9/30/2003 $ 7,377 $ 7,719 $ 7,713 $ 8,458
10/31/2003 $ 7,797 $ 8,153 $ 8,153 $ 8,934
11/30/2003 $ 7,887 $ 8,243 $ 8,243 $ 9,027
12/31/2003 $ 8,089 $ 8,451 $ 8,446 $ 9,340
1/31/2004 $ 8,232 $ 8,592 $ 8,586 $ 9,530
2/29/2004 $ 8,312 $ 8,665 $ 8,665 $ 9,591
3/31/2004 $ 8,179 $ 8,525 $ 8,525 $ 9,413
4/30/2004 $ 8,089 $ 8,423 $ 8,423 $ 9,304
5/31/2004 $ 8,280 $ 8,620 $ 8,615 $ 9,477
6/30/2004 $ 8,429 $ 8,767 $ 8,767 $ 9,595
7/31/2004 $ 7,961 $ 8,277 $ 8,271 $ 9,053
8/31/2004 $ 7,749 $ 8,051 $ 8,051 $ 9,009
9/30/2004 $ 7,988 $ 8,299 $ 8,299 $ 9,094
10/31/2004 $ 8,041 $ 8,350 $ 8,344 $ 9,236
</Table>
3
<Page>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2004
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
----------- ----------- ----------- -----------
Common Class(3) 8.60% (4.20)% 9.37% 9.25%
Advisor Class(3) 8.09% (4.67)% 8.85% 8.92%
Class A Without Sales Charge 8.28% -- -- (5.67)%
Class A With Maximum
Sales Charge 2.04% -- -- (7.62)%
Class B Without CDSC 7.52% -- -- (6.36)%
Class B With CDSC 3.52% -- -- (7.03)%
Class C Without CDSC 7.60% -- -- (6.36)%
Class C With CDSC 6.60% -- -- (6.36)%
</Table>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2004
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
----------- ----------- ----------- -----------
Common Class(3) 3.46% (5.05)% 9.32% 9.25%
Advisor Class(3) 2.88% (5.53)% 8.78% 8.91%
Class A Without Sales Charge 3.13% -- -- (5.30)%
Class A With Maximum
Sales Charge (2.82)% -- -- (7.19)%
Class B Without CDSC 2.42% -- -- (5.99)%
Class B With CDSC (1.58)% -- -- (6.64)%
Class C Without CDSC 2.35% -- -- (6.01)%
Class C With CDSC 1.35% -- -- (6.01)%
</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) The Russell 1000(R) Growth Index measures the performance of those
companies in the Russell 1000(R) Index with higher price-to-book ratios and
higher forecasted growth values. It is an unmanaged index of common stocks
that includes reinvestment of dividends and is compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(2) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was down 2.82%. Total return
for Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was down 1.58%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was 1.35%.
(3) Inception Date: 8/17/87.
4
<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.
5
<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 $ 996 $ 993 $ 994 $ 991 $ 991
Expenses Paid per $1,000* $ 5.82 $ 8.32 $ 7.07 $ 10.81 $ 10.81
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* $ 5.90 $ 8.45 $ 7.18 $ 10.99 $ 10.99
<Caption>
COMMON ADVISOR
CLASS CLASS CLASS A CLASS B CLASS C
-------- -------- -------- -------- --------
ANNUALIZED
EXPENSE RATIOS*
1.16% 1.66% 1.41% 2.16% 2.16%
</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.
6
<Page>
SECTOR BREAKDOWN*
<Table>
Consumer Discretionary 25.2%
Health Care 21.0%
Technology 17.0%
Financial Services 7.8%
Producer Durables 7.3%
Other 6.1%
Materials & Processing 5.6%
Other Energy 3.6%
Other Assets 3.0%
Consumer Staples 2.3%
Auto & Transportation 1.1%
</Table>
- ----------
* The Fund's sector breakdown is expressed as a percentage of total
investments (excluding security lending collateral) and may vary over
time.
7
<Page>
CREDIT SUISSE MID-CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2004 (unaudited)
November 24, 2004
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/03 - 10/31/04
<Table>
<Caption>
SHARE CLASS/BENCHMARK PERFORMANCE
Common(1) 4.67%
Advisor(1) 4.14%
Class A(1) 4.40%
Class B(1) (5.02)%(5)
Class C(1) (4.91)%(5)
Russell 2500(TM) Growth Index(2) 6.14%
Russell Midcap(R) Growth Index(3) 8.77%
</Table>
Performance for the Fund's Class A, Class B and Class C shares is without the
maximum sales charge of 5.75%, 4.00% and 1.00%, respectively.(4)
MARKET OVERVIEW: STRONG START GIVES WAY TO SEESAW FINISH
The US equity market began the period on a strong note. An improving outlook
for the economy and corporate profits continued to help stocks regain their
footing after 2000's "bubble burst." However, the market faced headwinds as 2004
progressed, mostly in the form of domestic and international political
uncertainty, worries over rising interest rates and a surge in oil prices. The
market hit its low for the reporting period in August, but then moved upward
again as inflation and interest-rate fears subsided.
Style category, as opposed to market cap size, was the driving factor behind
performance in the period. While growth stocks had a positive showing for the 12
months, they lagged value stocks by a wide margin, reflecting the outperformance
of energy and industrial-type companies, which comprise a larger share of the
value universe. Broadly, mid- and small-capitalization stocks outpaced large cap
stocks, a trend often (but not always) seen in the early stages of economic
recovery.
STRATEGIC REVIEW: TECHNOLOGY OUTPERFORMS WHILE CONSUMER, HEALTH CARE LAG
The Fund had a gain but trailed its benchmarks. Stocks that hindered the
Fund's relative performance included its consumer discretionary holdings. While
collectively positive, they lagged in part due to a decline in Netflix (we
decided to eliminate the position late in the period). The online DVD rental
company's business model was a rapid success, drawing the attention of potential
competitors, ultimately pressuring its stock price. The Fund's health
8
<Page>
care stocks likewise advanced but underperformed. In addition, the Fund's
semiconductor-equipment stocks fell amid a broad selloff in the group, hampering
our performance in the producer durables sector. We selectively reduced our
semiconductor exposure in the latter part of the period.
On the positive side, stock selection in the technology sector was a
contributor to relative performance. Noteworthy gainers here included Tessera
Technologies (1.5% of the Fund's portfolio as of October 31, 2004), an
intellectual property rights company catering to electronics chip makers; and
Sina (0.8% of the Fund's portfolio as of October 31, 2004), a global internet
portal company providing access to Chinese language sites. The Fund's
overweighting in energy during much of the period was also beneficial.
GOING FORWARD: FOCUS ON COMPANY SELECTION
Stocks we added to the Fund recently include NCR (1.4% of the Fund's
portfolio as of October 31, 2004), a manufacturer of ATM machines and cash
registers. The company's growth should be supported in our view by new ATM unit
sales across the country, as well as by an upgrade cycle of existing ATMs that
could extend for three or more years.
Another recent purchase was Macromedia (1.7% of the Fund's portfolio as of
October 31, 2004), whose software products are used in the creation of
interactive Web publishing. We see potential growth catalysts in the upgrade of
its major product -- which accounts for about two-thirds of the company's
revenues at present -- and a new product making inroads to the wireless
telecommunications area. One noteworthy sale we made near the end of the period
was Starbucks. After a period of strong performance that pushed the stock into
large-cap territory, we eliminated the position and redeployed assets to more
attractively priced stocks in the mid-cap area.
Looking ahead, we expect that against a backdrop of modest economic growth
and amid generally compressed stock valuations, individual company selection
should prove critical to performance over the next year. We think the mid cap
space offers compelling opportunities, given the number of relatively
underfollowed companies that we believe nonetheless offer ample liquidity in the
market.
The Credit Suisse Mid-Cap Growth Team
Marian U. Pardo
Eric M. Wiegand
Leo M. Bernstein
Calvin E. Chung
Credit Suisse Asset Management, LLC (CSAM)
9
<Page>
INVESTMENTS IN SMALL TO MEDIUM-SIZED COMPANIES MAY BE MORE VOLATILE AND LESS
LIQUID THAN INVESTMENTS IN LARGER COMPANIES.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THAT PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
10
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE CREDIT SUISSE MID-CAP GROWTH FUND(1) COMMON CLASS SHARES, ADVISOR CLASS
SHARES, THE RUSSELL 2500(TM) GROWTH INDEX(2), AND THE RUSSELL MIDCAP(R) GROWTH
INDEX(3) FOR TEN YEARS.
<Table>
<Caption>
CREDIT SUISSE MID-CAP GROWTH CREDIT SUISSE MID-CAP GROWTH RUSSELL 2500(TM) RUSSELL MIDCAP(R)
FUND -- COMMON CLASS(1) FUND -- ADVISOR CLASS(1) GROWTH INDEX(2) GROWTH INDEX(3)
10/31/1994 $ 10,000 $ 10,000 $ 10,000 $ 10,000
11/30/1994 $ 9,513 $ 9,510 $ 9,557 $ 9,559
12/31/1994 $ 9,826 $ 9,819 $ 9,751 $ 9,693
1/31/1995 $ 9,678 $ 9,664 $ 9,656 $ 9,809
2/28/1995 $ 10,174 $ 10,159 $ 10,181 $ 10,331
3/31/1995 $ 10,451 $ 10,431 $ 10,576 $ 10,741
4/30/1995 $ 10,746 $ 10,717 $ 10,695 $ 10,831
5/31/1995 $ 10,871 $ 10,839 $ 10,859 $ 11,098
6/30/1995 $ 11,805 $ 11,769 $ 11,519 $ 11,603
7/31/1995 $ 12,677 $ 12,630 $ 12,427 $ 12,334
8/31/1995 $ 13,137 $ 13,079 $ 12,530 $ 12,469
9/30/1995 $ 13,825 $ 13,760 $ 12,799 $ 12,746
10/31/1995 $ 13,391 $ 13,324 $ 12,346 $ 12,424
11/30/1995 $ 13,735 $ 13,660 $ 12,851 $ 12,979
12/31/1995 $ 14,367 $ 14,287 $ 13,022 $ 12,986
1/31/1996 $ 14,168 $ 14,080 $ 13,062 $ 13,216
2/29/1996 $ 14,708 $ 14,615 $ 13,637 $ 13,716
3/31/1996 $ 14,960 $ 14,861 $ 13,933 $ 13,824
4/30/1996 $ 16,212 $ 16,095 $ 14,887 $ 14,492
5/31/1996 $ 16,425 $ 16,302 $ 15,418 $ 14,788
6/30/1996 $ 15,813 $ 15,690 $ 14,645 $ 14,341
7/31/1996 $ 14,106 $ 13,989 $ 13,190 $ 13,227
8/31/1996 $ 14,936 $ 14,803 $ 14,098 $ 13,942
9/30/1996 $ 15,775 $ 15,627 $ 14,846 $ 14,828
10/31/1996 $ 15,552 $ 15,415 $ 14,384 $ 14,654
11/30/1996 $ 15,652 $ 15,507 $ 14,911 $ 15,517
12/31/1996 $ 15,786 $ 15,633 $ 14,984 $ 15,256
1/31/1997 $ 16,361 $ 16,198 $ 15,433 $ 15,931
2/28/1997 $ 15,634 $ 15,469 $ 14,756 $ 15,580
3/31/1997 $ 14,731 $ 14,570 $ 13,785 $ 14,700
4/30/1997 $ 14,764 $ 14,599 $ 13,847 $ 15,060
5/31/1997 $ 16,432 $ 16,241 $ 15,507 $ 16,409
6/30/1997 $ 17,116 $ 16,913 $ 16,026 $ 16,864
7/31/1997 $ 18,114 $ 17,893 $ 17,043 $ 18,478
8/31/1997 $ 18,494 $ 18,260 $ 17,459 $ 18,297
9/30/1997 $ 19,877 $ 19,622 $ 18,692 $ 19,223
10/31/1997 $ 18,846 $ 18,593 $ 17,526 $ 18,261
11/30/1997 $ 18,732 $ 18,477 $ 17,257 $ 18,453
12/31/1997 $ 19,142 $ 18,875 $ 17,196 $ 18,695
1/31/1998 $ 18,661 $ 18,395 $ 16,971 $ 18,358
2/28/1998 $ 20,526 $ 20,227 $ 18,428 $ 20,084
3/31/1998 $ 21,499 $ 21,182 $ 19,112 $ 20,926
4/30/1998 $ 21,697 $ 21,368 $ 19,286 $ 21,211
5/31/1998 $ 20,384 $ 20,067 $ 18,048 $ 20,338
6/30/1998 $ 21,236 $ 20,898 $ 18,180 $ 20,914
7/31/1998 $ 19,593 $ 19,272 $ 16,826 $ 20,018
8/31/1998 $ 15,747 $ 15,484 $ 13,003 $ 16,197
9/30/1998 $ 16,345 $ 16,067 $ 14,143 $ 17,422
10/31/1998 $ 17,075 $ 16,779 $ 15,098 $ 18,705
11/30/1998 $ 18,124 $ 17,801 $ 16,172 $ 19,967
12/31/1998 $ 20,257 $ 19,892 $ 17,729 $ 22,034
1/31/1999 $ 20,567 $ 20,191 $ 18,242 $ 22,695
2/28/1999 $ 18,519 $ 18,168 $ 16,762 $ 21,585
3/31/1999 $ 19,497 $ 19,123 $ 17,542 $ 22,787
4/30/1999 $ 19,497 $ 19,118 $ 18,942 $ 23,826
5/31/1999 $ 19,822 $ 19,427 $ 19,137 $ 23,519
6/30/1999 $ 21,362 $ 20,924 $ 20,490 $ 25,161
7/31/1999 $ 21,068 $ 20,630 $ 20,073 $ 24,360
8/31/1999 $ 20,597 $ 20,160 $ 19,639 $ 24,107
9/30/1999 $ 20,617 $ 20,170 $ 19,779 $ 23,902
10/31/1999 $ 22,163 $ 21,672 $ 20,742 $ 25,750
11/30/1999 $ 24,581 $ 24,026 $ 23,191 $ 28,416
12/31/1999 $ 28,726 $ 28,065 $ 27,565 $ 33,337
1/31/2000 $ 27,793 $ 27,145 $ 27,411 $ 33,330
2/29/2000 $ 33,439 $ 32,646 $ 34,443 $ 40,336
3/31/2000 $ 32,333 $ 31,555 $ 31,740 $ 40,376
4/30/2000 $ 28,951 $ 28,241 $ 28,648 $ 36,456
5/31/2000 $ 26,848 $ 26,183 $ 26,097 $ 33,798
6/30/2000 $ 29,850 $ 29,098 $ 29,547 $ 37,384
7/31/2000 $ 28,807 $ 28,065 $ 27,126 $ 35,018
8/31/2000 $ 32,258 $ 31,415 $ 30,662 $ 40,299
9/30/2000 $ 32,010 $ 31,156 $ 28,679 $ 38,328
10/31/2000 $ 28,945 $ 28,165 $ 26,905 $ 35,706
11/30/2000 $ 23,558 $ 22,916 $ 21,779 $ 27,947
12/31/2000 $ 25,271 $ 24,577 $ 23,130 $ 29,420
1/31/2001 $ 25,032 $ 24,326 $ 24,628 $ 31,101
2/28/2001 $ 20,513 $ 19,934 $ 20,828 $ 25,720
3/31/2001 $ 18,253 $ 17,727 $ 18,523 $ 22,039
4/30/2001 $ 20,541 $ 19,934 $ 21,346 $ 25,713
5/31/2001 $ 20,210 $ 19,603 $ 21,965 $ 25,592
6/30/2001 $ 20,196 $ 19,589 $ 22,464 $ 25,605
7/31/2001 $ 19,126 $ 18,546 $ 20,808 $ 23,879
8/31/2001 $ 18,035 $ 17,475 $ 19,425 $ 22,148
9/30/2001 $ 15,494 $ 15,010 $ 16,383 $ 18,487
10/31/2001 $ 16,613 $ 16,088 $ 17,998 $ 20,430
11/30/2001 $ 18,246 $ 17,662 $ 19,554 $ 22,631
12/31/2001 $ 19,001 $ 18,383 $ 20,626 $ 23,491
1/31/2002 $ 18,191 $ 17,599 $ 19,744 $ 22,728
2/28/2002 $ 17,150 $ 16,578 $ 18,524 $ 21,439
3/31/2002 $ 18,107 $ 17,499 $ 20,015 $ 23,075
4/30/2002 $ 17,839 $ 17,233 $ 19,351 $ 21,855
5/31/2002 $ 17,044 $ 16,456 $ 18,375 $ 21,203
6/30/2002 $ 15,812 $ 15,263 $ 16,687 $ 18,862
7/31/2002 $ 13,404 $ 12,933 $ 14,614 $ 17,029
8/31/2002 $ 13,454 $ 12,977 $ 14,611 $ 16,969
9/30/2002 $ 12,524 $ 12,078 $ 13,507 $ 15,622
10/31/2002 $ 13,362 $ 12,869 $ 14,283 $ 16,833
11/30/2002 $ 14,193 $ 13,667 $ 15,612 $ 18,151
12/31/2002 $ 13,270 $ 12,768 $ 14,625 $ 17,054
1/31/2003 $ 13,362 $ 12,854 $ 14,306 $ 16,887
2/28/2003 $ 13,193 $ 12,682 $ 13,973 $ 16,740
3/31/2003 $ 13,327 $ 12,811 $ 14,157 $ 17,052
4/30/2003 $ 14,291 $ 13,731 $ 15,392 $ 18,213
5/31/2003 $ 15,727 $ 15,105 $ 17,023 $ 19,965
6/30/2003 $ 16,044 $ 15,407 $ 17,374 $ 20,251
7/31/2003 $ 16,812 $ 16,133 $ 18,531 $ 20,973
8/31/2003 $ 17,762 $ 17,038 $ 19,524 $ 22,129
9/30/2003 $ 17,164 $ 16,456 $ 19,105 $ 21,700
10/31/2003 $ 18,860 $ 18,074 $ 20,675 $ 23,449
11/30/2003 $ 19,283 $ 18,469 $ 21,374 $ 24,077
12/31/2003 $ 19,290 $ 18,476 $ 21,397 $ 24,340
1/31/2004 $ 20,409 $ 19,533 $ 22,290 $ 25,143
2/29/2004 $ 20,648 $ 19,756 $ 22,497 $ 25,565
3/31/2004 $ 20,979 $ 20,065 $ 22,576 $ 25,517
4/30/2004 $ 19,860 $ 18,987 $ 21,619 $ 24,797
5/31/2004 $ 20,205 $ 19,310 $ 22,068 $ 25,382
6/30/2004 $ 20,634 $ 19,706 $ 22,607 $ 25,786
7/31/2004 $ 18,874 $ 18,016 $ 20,837 $ 24,079
8/31/2004 $ 18,318 $ 17,484 $ 20,418 $ 23,783
9/30/2004 $ 19,036 $ 18,160 $ 21,339 $ 24,670
10/31/2004 $ 19,740 $ 18,821 $ 21,945 $ 25,506
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE MID-CAP GROWTH FUND CLASS A SHARES(4),
THE RUSSELL 2500(TM) GROWTH INDEX(2), AND THE RUSSELL MIDCAP(R)
GROWTH INDEX(3) FROM INCEPTION (11/30/01).
<Table>
<Caption>
CREDIT SUISSE MID-CAP RUSSELL 2500(TM) RUSSELL MIDCAP(R)
GROWTH FUND -- CLASS A(4) GROWTH INDEX(2) GROWTH INDEX(3)
11/30/2001 $ 9,425 $ 10,000 $ 10,000
12/31/2001 $ 9,812 $ 10,548 $ 10,380
1/31/2002 $ 9,390 $ 10,098 $ 10,043
2/28/2002 $ 8,848 $ 9,474 $ 9,474
3/31/2002 $ 9,339 $ 10,236 $ 10,196
4/30/2002 $ 9,197 $ 9,896 $ 9,657
5/31/2002 $ 8,786 $ 9,398 $ 9,369
6/30/2002 $ 8,146 $ 8,534 $ 8,335
7/31/2002 $ 6,903 $ 7,474 $ 7,525
8/31/2002 $ 6,928 $ 7,473 $ 7,498
9/30/2002 $ 6,448 $ 6,908 $ 6,903
10/31/2002 $ 6,873 $ 7,305 $ 7,438
11/30/2002 $ 7,303 $ 7,984 $ 8,020
12/31/2002 $ 6,823 $ 7,480 $ 7,536
1/31/2003 $ 6,870 $ 7,316 $ 7,462
2/28/2003 $ 6,779 $ 7,146 $ 7,397
3/31/2003 $ 6,844 $ 7,240 $ 7,535
4/30/2003 $ 7,339 $ 7,872 $ 8,048
5/31/2003 $ 8,077 $ 8,706 $ 8,822
6/30/2003 $ 8,237 $ 8,885 $ 8,948
7/31/2003 $ 8,630 $ 9,477 $ 9,268
8/31/2003 $ 9,117 $ 9,985 $ 9,778
9/30/2003 $ 8,808 $ 9,770 $ 9,589
10/31/2003 $ 9,674 $ 10,574 $ 10,361
11/30/2003 $ 9,888 $ 10,931 $ 10,639
12/31/2003 $ 9,892 $ 10,943 $ 10,755
1/31/2004 $ 10,463 $ 11,399 $ 11,110
2/29/2004 $ 10,583 $ 11,505 $ 11,297
3/31/2004 $ 10,750 $ 11,546 $ 11,275
4/30/2004 $ 10,176 $ 11,056 $ 10,957
5/31/2004 $ 10,350 $ 11,286 $ 11,216
6/30/2004 $ 10,565 $ 11,561 $ 11,394
7/31/2004 $ 9,663 $ 10,656 $ 10,640
8/31/2004 $ 9,375 $ 10,442 $ 10,509
9/30/2004 $ 9,743 $ 10,913 $ 10,901
10/31/2004 $ 10,099 $ 11,223 $ 11,271
</Table>
11
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE CREDIT SUISSE MID-CAP GROWTH FUND CLASS B SHARES, CLASS C SHARES(4),
THE RUSSELL 2500(TM) GROWTH INDEX(2) AND THE RUSSELL MIDCAP(R)
GROWTH INDEX(3) FROM INCEPTION (02/27/04).
<Table>
<Caption>
CREDIT SUISSE MID-CAP GROWTH CREDIT SUISSE MID-CAP GROWTH RUSSELL 2500(TM) RUSSELL MIDCAP(R)
FUND -- CLASS B(4) FUND -- CLASS C(4) GROWTH INDEX(2) GROWTH INDEX(3)
2/27/2004 $ 10,000 $ 10,000 $ 10,000 $ 10,000
2/29/2004 $ 10,000 $ 10,000 $ 10,093 $ 10,168
3/31/2004 $ 10,155 $ 10,158 $ 10,128 $ 10,149
4/30/2004 $ 9,605 $ 9,612 $ 9,699 $ 9,862
5/31/2004 $ 9,763 $ 9,777 $ 9,901 $ 10,095
6/30/2004 $ 9,962 $ 9,979 $ 10,142 $ 10,256
7/31/2004 $ 9,103 $ 9,120 $ 9,348 $ 9,577
8/31/2004 $ 8,828 $ 8,849 $ 9,160 $ 9,459
9/30/2004 $ 9,168 $ 9,186 $ 9,573 $ 9,812
10/31/2004 $ 9,498 $ 9,509 $ 9,845 $ 10,144
</Table>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2004
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------------- ------------- ------------- -------------
Common Class(6) 10.91% (1.58)% 6.90% 10.21%
Advisor Class(7) 10.35% (2.08)% 6.39% 8.77%
Class A Without Sales Charge 10.61% -- -- 1.17%
Class A With Maximum
Sales Charge 4.24% -- -- (0.91)%
Class B Without CDSC -- -- -- (8.32)%(5)
Class B With CDSC -- -- -- (11.98)%(5)
Class C Without CDSC -- -- -- (8.14)%(5)
Class C With CDSC -- -- -- (9.06)%(5)
</Table>
12
<Page>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2004
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS 10 YEARS INCEPTION
------------- ------------- ------------- -------------
Common Class(6) 4.67% (2.29)% 7.04% 10.39%
Advisor Class(7) 4.14% (2.78)% 6.53% 9.01%
Class A Without Sales Charge 4.40% -- -- 2.39%
Class A With Maximum
Sales Charge (1.59)% -- -- 0.34%
Class B Without CDSC -- -- -- (5.02)%(5)
Class B With CDSC -- -- -- (8.82)%(5)
Class C Without CDSC -- -- -- (4.91)%(5)
Class C With CDSC -- -- -- (5.86)%(5)
</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) Effective May 1, 2004 the Fund changed its name from Credit Suisse Emerging
Growth Fund to Credit Suisse Mid-Cap Growth Fund.
(2) The Russell 2500(TM) Growth Index measures the performance of those
companies in the Russell 2500(TM) Index with higher price-to-book ratios
and higher forecasted growth values. It is an unmanaged index of common
stocks that includes reinvestment of dividends and is compiled by Frank
Russell Company. Investors cannot invest directly in a an index.
(3) The Russell Midcap(R) Growth Index measures the performance of those
companies in the Russell Midcap(R) Index with higher price-to-book ratios
and higher forecasted growth values. The stocks are also members of the
Russell 1000(R) Growth Index. It is an unmanaged index of common stocks
that includes reinvestment of dividends and compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(4) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was down 1.59%. Total return
for Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was down 8.82%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was down 5.86%.
(5) Inception Date: 2/27/04; Returns for periods less than one year are not
annualized.
(6) Inception Date: 1/21/88.
(7) Inception Date: 6/20/91.
13
<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.
14
<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 $ 994 $ 991 $ 993 $ 989 $ 989
Expenses Paid per $1,000* $ 7.02 $ 9.51 $ 8.26 $ 12.00 $ 12.00
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* $ 7.13 $ 9.67 $ 8.40 $ 12.22 $ 12.22
<Caption>
COMMON ADVISOR
CLASS CLASS CLASS A CLASS B CLASS C
-------- -------- -------- -------- --------
ANNUALIZED
EXPENSE RATIOS*
1.40% 1.90% 1.65% 2.40% 2.40%
</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.
15
<Page>
[CHART]
SECTOR BREAKDOWN*
<Table>
Consumer Discretionary 26.3%
Technology 21.3%
Health Care 15.8%
Financial Services 10.6%
Other Energy 6.7%
Other Assets 5.0%
Producer Durables 4.1%
Auto & Transportation 3.5%
Materials & Processing 3.0%
Utilities 1.9%
Consumer Staples 1.8%
</Table>
- ----------
* The Fund's sector breakdown is expressed as a percentage of total
investments (excluding security lending collateral) and may vary over
time.
16
<Page>
CREDIT SUISSE SMALL CAP GROWTH FUND
ANNUAL INVESTMENT ADVISER'S REPORT
October 31, 2004 (unaudited)
November 24, 2004
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/03 - 10/31/04
<Table>
<Caption>
SHARE CLASS/BENCHMARK PERFORMANCE
Common(1) 2.37%
Advisor(1) (5.70)%(4)
Class A(1) 2.37%
Class B(1) (5.95)%(4)
Class C(1) (5.95)%(4)
Russell 2000(R) Growth Index(2) 5.53%
</Table>
Performance for the Fund's Class A, Class B and Class C shares is without the
maximum sales charge of 5.75%, 4.00% and 1.00%, respectively.(3)
MARKET OVERVIEW: STRONG START GIVES WAY TO SEESAW FINISH
The US equity market began the period on a strong note. An improving outlook
for the economy and corporate profits continued to help stocks regain their
footing after 2000's "bubble burst." However, the market faced headwinds as 2004
progressed, mostly in the form of domestic and international political
uncertainty, worries over rising interest rates and a surge in oil prices. The
market hit its low for the reporting period in August, but then moved upward
again as inflation and interest-rate fears subsided.
Growth stocks had a positive showing for the 12 months, but lagged value
stocks, reflecting the outperformance of energy and industrial-type companies,
which comprise a larger share of the value universe. Small capitalization stocks
outpaced large cap stocks, a trend often (but not always) seen in the early
stages of economic recovery.
STRATEGIC REVIEW: HELPED BY HEALTH CARE, HINDERED BY CHIP EQUIPMENT
The Fund had a gain but trailed its benchmark, in part due to stock selection
in the financial services sector. ESpeed (0.3% of the Fund's portfolio as of
October 31, 2004), an electronic securities trading company, sold off on
competition fears. We eliminated the position in November. In addition, the
Fund's semiconductor-equipment stocks fell amid a broad selloff in the group,
hampering our performance in the producer durables sector. We selectively
reduced our semiconductor exposure in the latter part of the period.
Positive forces for the Fund included stock focus within technology. Our
holdings here outperformed the benchmark's technology component by a wide
margin, aided by Tessera Technologies (1.4% of the Fund's portfolio as of
17
<Page>
October 31, 2004). The intellectual property rights company rallied on optimism
regarding its royalty revenues. The Fund's health care stocks contributed
positively to its relative and absolute return, led by Sepracor (0.8% of the
Fund's portfolio as of October 31, 2004), a pharmaceutical company specializing
in respiratory treatments, and Centene (0.8% of the Fund's portfolio as of
October 31, 2004), a diversified managed care stock that was buoyed by
continued, consistent profit growth. The Fund also drew support from an
overweighting and good stock selection in the energy sector.
GOING FORWARD: OPPORTUNITIES IN VARIED SECTORS
We have adjusted our producer durables exposure, ending the period with an
underweighting after being modestly overweighted a year ago. We still view
specific stocks here positively, including Kennametal (0.9% of the Fund's
portfolio as of October 31, 2004), a tool and die maker we added to the Fund
late in the period. We believe that a recovery in industrial America should
support its long-term growth prospects.
Elsewhere, we think that an improving economy stands to benefit brokerages
and money managers, and hence have a bias toward these companies within the
financial sector. We also have exposure to providers of business intelligence
software, demand for which is rising due to greater corporate accountability
associated with Sarbanes-Oxley legislation. As we move ahead, another strategy
is to potentially take advantage of demographic trends by investing in videogame
manufacturers as their market expands beyond teenage males.
The Credit Suisse Small/Mid-Cap Growth Team
Marian U. Pardo
Leo M. Bernstein
Calvin E. Chung
Credit Suisse Asset Management, LLC (CSAM)
INVESTMENTS IN SMALL COMPANIES MAY BE MORE VOLATILE AND LESS LIQUID THAN
INVESTMENTS IN LARGER COMPANIES.
IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THAT PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.
18
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE CREDIT SUISSE SMALL CAP GROWTH FUND(1) COMMON CLASS SHARES AND THE
RUSSELL 2000(R) GROWTH INDEX(2) FROM INCEPTION (12/31/96).
<Table>
<Caption>
CREDIT SUISSE SMALL CAP RUSSELL 2000(R)
GROWTH FUND(1) -- COMMON CLASS GROWTH INDEX(2)
12/31/1996 $ 10,000 $ 10,000
1/31/1997 $ 10,350 $ 10,250
2/28/1997 $ 10,020 $ 9,631
3/31/1997 $ 9,250 $ 8,951
4/30/1997 $ 8,940 $ 8,848
5/31/1997 $ 10,280 $ 10,177
6/30/1997 $ 10,840 $ 10,523
7/31/1997 $ 11,370 $ 11,062
8/31/1997 $ 11,650 $ 11,394
9/30/1997 $ 12,930 $ 12,303
10/31/1997 $ 12,250 $ 11,564
11/30/1997 $ 12,070 $ 11,288
12/31/1997 $ 12,229 $ 11,295
1/31/1998 $ 11,927 $ 11,144
2/28/1998 $ 12,802 $ 12,128
3/31/1998 $ 13,637 $ 12,637
4/30/1998 $ 13,496 $ 12,714
5/31/1998 $ 12,360 $ 11,790
6/30/1998 $ 12,591 $ 11,911
7/31/1998 $ 11,414 $ 10,916
8/31/1998 $ 8,951 $ 8,396
9/30/1998 $ 9,846 $ 9,248
10/31/1998 $ 10,167 $ 9,730
11/30/1998 $ 11,093 $ 10,485
12/31/1998 $ 12,058 $ 11,434
1/31/1999 $ 12,621 $ 11,948
2/28/1999 $ 11,646 $ 10,855
3/31/1999 $ 12,501 $ 11,242
4/30/1999 $ 12,993 $ 12,234
5/31/1999 $ 13,064 $ 12,254
6/30/1999 $ 14,572 $ 12,899
7/31/1999 $ 14,401 $ 12,500
8/31/1999 $ 14,391 $ 12,033
9/30/1999 $ 15,156 $ 12,265
10/31/1999 $ 16,694 $ 12,579
11/30/1999 $ 19,138 $ 13,909
12/31/1999 $ 24,023 $ 16,361
1/31/2000 $ 23,826 $ 16,208
2/29/2000 $ 32,636 $ 19,979
3/31/2000 $ 28,921 $ 17,879
4/30/2000 $ 24,531 $ 16,074
5/31/2000 $ 22,197 $ 14,666
6/30/2000 $ 26,628 $ 16,561
7/31/2000 $ 23,712 $ 15,142
8/31/2000 $ 27,427 $ 16,734
9/30/2000 $ 25,611 $ 15,903
10/31/2000 $ 23,981 $ 14,612
11/30/2000 $ 19,862 $ 11,959
12/31/2000 $ 21,833 $ 12,691
1/31/2001 $ 21,387 $ 13,718
2/28/2001 $ 18,824 $ 11,837
3/31/2001 $ 16,655 $ 10,761
4/30/2001 $ 19,032 $ 12,078
5/31/2001 $ 18,814 $ 12,358
6/30/2001 $ 19,270 $ 12,696
7/31/2001 $ 18,191 $ 11,613
8/31/2001 $ 17,101 $ 10,887
9/30/2001 $ 14,414 $ 9,130
10/31/2001 $ 15,960 $ 10,008
11/30/2001 $ 17,517 $ 10,844
12/31/2001 $ 18,980 $ 11,519
1/31/2002 $ 18,419 $ 11,109
2/28/2002 $ 16,801 $ 10,390
3/31/2002 $ 18,295 $ 11,293
4/30/2002 $ 17,807 $ 11,049
5/31/2002 $ 16,697 $ 10,403
6/30/2002 $ 15,223 $ 9,521
7/31/2002 $ 12,992 $ 8,057
8/31/2002 $ 12,847 $ 8,053
9/30/2002 $ 12,276 $ 7,472
10/31/2002 $ 13,054 $ 7,850
11/30/2002 $ 14,102 $ 8,628
12/31/2002 $ 13,137 $ 8,033
1/31/2003 $ 12,878 $ 7,814
2/28/2003 $ 12,629 $ 7,606
3/31/2003 $ 12,785 $ 7,720
4/30/2003 $ 13,739 $ 8,451
5/31/2003 $ 15,317 $ 9,403
6/30/2003 $ 15,493 $ 9,585
7/31/2003 $ 16,686 $ 10,309
8/31/2003 $ 17,620 $ 10,863
9/30/2003 $ 16,852 $ 10,588
10/31/2003 $ 18,824 $ 11,503
11/30/2003 $ 19,146 $ 11,878
12/31/2003 $ 19,239 $ 11,931
1/31/2004 $ 20,360 $ 12,558
2/29/2004 $ 20,401 $ 12,539
3/31/2004 $ 20,889 $ 12,598
4/30/2004 $ 19,716 $ 11,965
5/31/2004 $ 20,194 $ 12,203
6/30/2004 $ 20,692 $ 12,610
7/31/2004 $ 18,492 $ 11,477
8/31/2004 $ 18,108 $ 11,231
9/30/2004 $ 18,866 $ 11,852
10/31/2004 $ 19,270 $ 12,140
</Table>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE
CREDIT SUISSE SMALL CAP GROWTH FUND(1) CLASS A SHARES(3) AND THE
RUSSELL 2000(R) GROWTH INDEX(2) FROM INCEPTION (11/30/01).
<Table>
<Caption>
CREDIT SUISSE SMALL CAP RUSSELL 2000(R)
GROWTH FUND(1) -- CLASS A(3) GROWTH INDEX(2)
11/30/2001 $ 9,425 $ 10,000
12/31/2001 $ 10,207 $ 10,623
1/31/2002 $ 9,911 $ 10,245
2/28/2002 $ 9,040 $ 9,582
3/31/2002 $ 9,844 $ 10,414
4/30/2002 $ 9,581 $ 10,190
5/31/2002 $ 8,984 $ 9,593
6/30/2002 $ 8,191 $ 8,780
7/31/2002 $ 6,991 $ 7,430
8/31/2002 $ 6,912 $ 7,427
9/30/2002 $ 6,605 $ 6,891
10/31/2002 $ 7,018 $ 7,239
11/30/2002 $ 7,582 $ 7,957
12/31/2002 $ 7,063 $ 7,408
1/31/2003 $ 6,929 $ 7,206
2/28/2003 $ 6,790 $ 7,014
3/31/2003 $ 6,879 $ 7,120
4/30/2003 $ 7,387 $ 7,793
5/31/2003 $ 8,236 $ 8,671
6/30/2003 $ 8,331 $ 8,839
7/31/2003 $ 8,973 $ 9,507
8/31/2003 $ 9,481 $ 10,017
9/30/2003 $ 9,062 $ 9,764
10/31/2003 $ 10,128 $ 10,608
11/30/2003 $ 10,302 $ 10,953
12/31/2003 $ 10,346 $ 11,003
1/31/2004 $ 10,955 $ 11,580
2/29/2004 $ 10,972 $ 11,563
3/31/2004 $ 11,234 $ 11,617
4/30/2004 $ 10,609 $ 11,034
5/31/2004 $ 10,860 $ 11,254
6/30/2004 $ 11,128 $ 11,629
7/31/2004 $ 9,950 $ 10,584
8/31/2004 $ 9,743 $ 10,357
9/30/2004 $ 10,151 $ 10,929
10/31/2004 $ 10,369 $ 11,195
</Table>
19
<Page>
[CHART]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN THE CREDIT SUISSE SMALL CAP GROWTH FUND(1) ADVISOR CLASS SHARES, CLASS B
SHARES(3), CLASS C SHARES(3) AND THE RUSSELL 2000(R) GROWTH INDEX(2) FROM
INCEPTION (02/27/04).
<Table>
<Caption>
CREDIT SUISSE SMALL CAP CREDIT SUISSE SMALL CAP CREDIT SUISSE SMALL CAP RUSSELL 2000(R)
GROWTH FUND(1) -- ADVISOR CLASS GROWTH FUND(1) -- CLASS B(3) GROWTH FUND(1) -- CLASS C(3) GROWTH INDEX(2)
2/27/2004 $ 10,000 $ 10,000 $ 10,000 $ 10,000
2/29/2004 $ 10,000 $ 10,000 $ 10,000 $ 9,985
3/31/2004 $ 10,239 $ 10,234 $ 10,234 $ 10,032
4/30/2004 $ 9,664 $ 9,654 $ 9,654 $ 9,528
5/31/2004 $ 9,898 $ 9,878 $ 9,878 $ 9,718
6/30/2004 $ 10,142 $ 10,117 $ 10,117 $ 10,042
7/31/2004 $ 9,064 $ 9,038 $ 9,038 $ 9,140
8/31/2004 $ 8,865 $ 8,850 $ 8,850 $ 8,943
9/30/2004 $ 9,237 $ 9,216 $ 9,216 $ 9,438
10/31/2004 $ 9,405 $ 9,405 $ 9,430 $ 9,667
</Table>
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2004(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS INCEPTION
----------- ----------- -----------
Common Class 11.95% 4.48% 8.53%
Advisor Class -- -- (7.63)%(4)
Class A Without Sales Charge 12.01% -- 2.65%
Class A With Maximum Sales Charge 5.57% -- 0.53%
Class B Without CDSC -- -- (7.84)%(4)
Class B With CDSC -- -- (11.52)%(4)
Class C Without CDSC -- -- (7.84)%(4)
Class C With CDSC -- -- (8.76)%(4)
</Table>
20
<Page>
AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2004(1)
<Table>
<Caption>
SINCE
1 YEAR 5 YEARS INCEPTION
----------- ----------- -----------
Common Class 2.37% 2.91% 8.73%
Advisor Class -- -- (5.70)%(4)
Class A Without Sales Charge 2.37% -- 3.32%
Class A With Maximum Sales Charge (3.53)% -- 1.25%
Class B Without CDSC -- -- (5.95)%(4)
Class B With CDSC -- -- (9.72)%(4)
Class C Without CDSC -- -- (5.95)%(4)
Class C With CDSC -- -- (6.89)%(4)
</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) The Russell 2000(R) Growth Index measures the performance of those
companies in the Russell 2000(R) Index with higher price-to-book ratios and
higher forecasted growth values. It is an unmanaged index of common stocks
that includes reinvestment of dividends and is compiled by Frank Russell
Company. Investors cannot invest directly in an index.
(3) Total return for Class A Shares for the reporting period, based on offering
price (with maximum sales charge of 5.75%), was down 3.53%. Total return
for Class B Shares for the reporting period, based on redemption value
(including maximum contingent deferred sales charge of 4%), was down 9.72%.
Total return for Class C Shares for the reporting period, based on
redemption value (including maximum contingent deferred sales charge of
1%), was down 6.89%.
(4) Inception Date: 2/27/04; Returns for periods less than one year are not
annualized.
21
<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.
22
<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 $ 977 $ 976 $ 977 $ 974 $ 974
Expenses Paid per $1,000* $ 6.96 $ 8.19 $ 6.96 $ 10.67 $ 10.67
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* $ 7.13 $ 8.40 $ 7.13 $ 10.94 $ 10.94
<Caption>
COMMON ADVISOR
CLASS CLASS CLASS A CLASS B CLASS C
-------- -------- -------- -------- --------
ANNUALIZED
EXPENSE RATIOS*
1.40% 1.65% 1.40% 2.15% 2.15%
</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.
23
<Page>
[CHART]
SECTOR BREAKDOWN*
<Table>
Consumer Discretionary 25.6%
Health Care 23.4%
Technology 19.5%
Other Assets 7.8%
Other Energy 6.5%
Financial Services 6.0%
Producer Durables 5.5%
Materials & Processing 3.8%
Consumer Staples 1.7%
Auto & Transportation 0.2%
</Table>
- ----------
* The Fund's sector breakdown is expressed as a percentage of total
investments (excluding security lending collateral) and may vary over time.
24
<Page>
CREDIT SUISSE CAPITAL APPRECIATION FUND
SCHEDULE OF INVESTMENTS
October 31, 2004
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS (97.4%)
AEROSPACE & DEFENSE (1.8%)
United Technologies Corp. 88,500 $ 8,214,570
---------------
AUTO COMPONENTS (1.1%)
Autoliv, Inc.@ 114,100 4,877,775
---------------
BIOTECHNOLOGY (6.6%)
Biogen Idec, Inc.* 83,700 4,867,992
Genentech, Inc.* 175,700 7,999,621
Genzyme Corp.* 136,900 7,183,143
Gilead Sciences, Inc.* 289,600 10,028,848
---------------
30,079,604
---------------
CHEMICALS (3.4%)
Dow Chemical Co. 92,700 4,165,938
Du Pont (E. I.) de Nemours & Co. 209,900 8,998,413
Monsanto Co. 54,500 2,329,875
---------------
15,494,226
---------------
COMMERCIAL SERVICES & SUPPLIES (3.1%)
Automatic Data Processing, Inc. 318,300 13,811,037
---------------
COMMUNICATIONS EQUIPMENT (8.4%)
Avaya, Inc.* 300,200 4,322,880
Cisco Systems, Inc.* 544,600 10,461,766
Comverse Technology, Inc.* 261,300 5,393,232
Corning, Inc.* 764,400 8,752,380
Motorola, Inc. 537,900 9,284,154
---------------
38,214,412
---------------
COMPUTERS & PERIPHERALS (3.5%)
Dell, Inc.* 145,100 5,087,206
EMC Corp.* 516,500 6,647,355
Lexmark International, Inc. Class A* 49,500 4,113,945
---------------
15,848,506
---------------
DIVERSIFIED FINANCIALS (4.8%)
Capital One Financial Corp. 181,500 13,387,440
Countrywide Financial Corp. 264,000 8,429,520
---------------
21,816,960
---------------
ENERGY EQUIPMENT & SERVICES (1.6%)
BJ Services Co. 140,800 7,180,800
Bonneville Pacific Corp.*^ 16,883 1
---------------
7,180,801
---------------
FOOD & DRUG RETAILING (1.2%)
Whole Foods Market, Inc.@ 69,000 5,618,670
---------------
FOOD PRODUCTS (1.0%)
Sara Lee Corp. 200,800 4,674,624
---------------
</Table>
See Accompanying Notes to Financial Statements.
25
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS
HEALTHCARE EQUIPMENT & SUPPLIES (7.1%)
Boston Scientific Corp.* 279,600 $ 9,869,880
Dade Behring Holdings, Inc.* 82,100 4,621,409
Guidant Corp. 111,900 7,454,778
St. Jude Medical, Inc.* 132,500 10,145,525
---------------
32,091,592
---------------
HEALTHCARE PROVIDERS & SERVICES (1.2%)
Anthem, Inc.*@ 64,800 5,209,920
---------------
HOTELS, RESTAURANTS & LEISURE (2.4%)
Starbucks Corp.* 203,800 10,776,944
---------------
INDUSTRIAL CONGLOMERATES (6.1%)
General Electric Co. 403,500 13,767,420
Tyco International, Ltd. 447,300 13,933,395
---------------
27,700,815
---------------
INTERNET & CATALOG RETAIL (2.9%)
eBay, Inc.* 133,500 13,030,935
---------------
INTERNET SOFTWARE & SERVICES (5.7%)
McAfee, Inc.* 220,600 5,338,520
VeriSign, Inc.* 256,700 6,887,261
Yahoo!, Inc.* 371,500 13,444,585
---------------
25,670,366
---------------
MACHINERY (3.6%)
Caterpillar, Inc. 28,900 2,327,606
Danaher Corp. 216,800 11,952,184
Deere & Co. 32,900 1,966,762
---------------
16,246,552
---------------
MEDIA (7.9%)
DreamWorks Animation SKG, Inc. Class A* 28,400 1,109,020
E.W. Scripps Co. Class A@ 95,000 4,533,400
Getty Images, Inc.*@ 80,000 4,730,400
News Corporation, Ltd. ADR*@ 150,371 4,727,664
Time Warner, Inc.* 561,400 9,341,696
Viacom, Inc. Class B 304,892 11,125,509
---------------
35,567,689
---------------
METALS & MINING (2.2%)
Alcoa, Inc. 154,600 5,024,500
Newmont Mining Corp. 99,800 4,742,496
---------------
9,766,996
---------------
MULTILINE RETAIL (1.0%)
Wal-Mart Stores, Inc. 80,300 4,329,776
---------------
OIL & GAS (2.0%)
XTO Energy, Inc. 269,075 8,981,724
---------------
</Table>
See Accompanying Notes to Financial Statements.
26
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS
PERSONAL PRODUCTS (2.0%)
Avon Products, Inc. 123,200 $ 4,872,560
Estee Lauder Companies, Inc. Class A 101,300 4,350,835
---------------
9,223,395
---------------
PHARMACEUTICALS (6.3%)
Eli Lilly & Co. 118,000 6,479,380
Schering-Plough Corp. 766,000 13,872,260
Sepracor, Inc.*@ 173,500 7,968,855
---------------
28,320,495
---------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (1.0%)
Applied Materials, Inc.* 287,700 4,631,970
---------------
SOFTWARE (4.8%)
Macromedia, Inc.* 126,100 3,422,354
Microsoft Corp. 657,200 18,395,028
---------------
21,817,382
---------------
SPECIALTY RETAIL (4.7%)
Best Buy Company, Inc. 128,600 7,615,692
The Gap, Inc. 421,500 8,421,570
TJX Companies, Inc. 219,700 5,268,406
---------------
21,305,668
---------------
TOTAL COMMON STOCKS (Cost $396,858,626) 440,503,404
---------------
SHORT-TERM INVESTMENTS (7.2%)
State Street Navigator Prime Fund** 18,946,701 18,946,701
<Caption>
PAR
(000)
---------------
State Street Bank and Trust Co. Euro Time Deposit, 1.000%, 11/01/04 $ 13,733 13,733,000
---------------
TOTAL SHORT-TERM INVESTMENTS (Cost $32,679,701) 32,679,701
---------------
TOTAL INVESTMENTS AT VALUE (104.6%) (Cost $429,538,327) 473,183,105
LIABILITIES IN EXCESS OF OTHER ASSETS (-4.6%) (20,898,066)
---------------
NET ASSETS (100.0%) $ 452,285,039
===============
</Table>
INVESTMENT ABBREVIATION
ADR = American Depository Receipt
* Non-income producing security.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by, or under the direction of, the Board of
Trustees.
@ Security or portion thereof is out on loan.
** Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
27
<Page>
CREDIT SUISSE MID-CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2004
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS (96.3%)
AEROSPACE & DEFENSE (3.8%)
Alliant Techsystems, Inc.* 83,700 $ 4,811,913
Goodrich Corp. 159,700 4,923,551
L-3 Communications Holdings, Inc. 75,800 4,997,494
---------------
14,732,958
---------------
AUTO COMPONENTS (1.7%)
Autoliv, Inc. 156,600 6,694,650
---------------
BIOTECHNOLOGY (6.0%)
Celgene Corp.* 169,800 5,029,476
Charles River Laboratories International, Inc.* 132,200 6,185,638
Genzyme Corp.* 171,200 8,982,864
ImClone Systems, Inc.* 76,800 3,363,840
---------------
23,561,818
---------------
CHEMICALS (1.7%)
Monsanto Co. 152,400 6,515,100
---------------
COMMERCIAL SERVICES & SUPPLIES (3.7%)
Certegy, Inc. 101,900 3,602,165
Corporate Executive Board Co. 98,800 6,288,620
Monster Worldwide, Inc.* 168,900 4,737,645
---------------
14,628,430
---------------
COMMUNICATIONS EQUIPMENT (3.8%)
Avaya, Inc.* 349,800 5,037,120
Comverse Technology, Inc.* 227,000 4,685,280
Juniper Networks, Inc.* 192,900 5,133,069
---------------
14,855,469
---------------
COMPUTERS & PERIPHERALS (4.0%)
ATI Technologies, Inc.* 116,900 2,110,045
Lexmark International, Inc. Class A* 80,800 6,715,288
NCR Corp.* 117,500 6,621,125
---------------
15,446,458
---------------
CONTAINERS & PACKAGING (1.4%)
Ball Corp. 137,000 5,459,450
---------------
DIVERSIFIED FINANCIALS (5.6%)
American Capital Strategies, Ltd.@ 94,100 2,912,395
Chicago Mercantile Exchange@ 27,400 4,815,002
E*TRADE Financial Corp.* 526,700 6,794,430
eSPEED, Inc. Class A*@ 131,800 1,298,230
Providian Financial Corp.* 384,300 5,975,865
---------------
21,795,922
---------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.9%)
Broadcom Corp. Class A* 133,300 3,605,765
---------------
</Table>
See Accompanying Notes to Financial Statements.
28
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS
ENERGY EQUIPMENT & SERVICES (5.7%)
Baker Hughes, Inc. 94,800 $ 4,060,284
BJ Services Co. 90,500 4,615,500
ENSCO International, Inc. 137,500 4,200,625
National-Oilwell, Inc.*@ 143,800 4,847,498
Smith International, Inc.* 77,900 4,524,432
---------------
22,248,339
---------------
FOOD & DRUG RETAILING (1.1%)
Whole Foods Market, Inc. 51,300 4,177,359
---------------
FOOD PRODUCTS (0.7%)
J.M. Smucker Co. 61,900 2,754,550
---------------
HEALTHCARE EQUIPMENT & SUPPLIES (3.5%)
Beckman Coulter, Inc. 66,300 3,944,850
Fisher Scientific International, Inc.* 77,100 4,422,456
Varian Medical Systems, Inc.* 134,100 5,384,115
---------------
13,751,421
---------------
HEALTHCARE PROVIDERS & SERVICES (3.5%)
AMERIGROUP Corp.*@ 127,600 7,656,000
VCA Antech, Inc.*@ 275,400 6,174,468
---------------
13,830,468
---------------
HOTELS, RESTAURANTS & LEISURE (5.2%)
International Game Technology 189,000 6,244,560
MGM Mirage, Inc.* 152,400 8,199,120
Starwood Hotels & Resorts Worldwide, Inc. 125,500 5,990,115
---------------
20,433,795
---------------
INSURANCE (4.2%)
AMBAC Financial Group, Inc. 98,850 7,716,231
Fidelity National Financial, Inc. 130,000 4,906,200
Genworth Financial, Inc. 166,700 3,977,462
---------------
16,599,893
---------------
INTERNET SOFTWARE & SERVICES (6.6%)
Ask Jeeves, Inc.*@ 147,800 3,810,284
McAfee, Inc.* 203,100 4,915,020
Openwave Systems, Inc.*@ 486,366 5,724,528
SINA Corp.*@ 109,800 3,678,300
VeriSign, Inc.* 283,800 7,614,354
---------------
25,742,486
---------------
MEDIA (7.1%)
DreamWorks Animation SKG, Inc. Class A* 26,000 1,015,300
E.W. Scripps Co. Class A@ 81,800 3,903,496
Getty Images, Inc.* 144,500 8,544,285
Lamar Advertising Co.* 183,700 7,608,854
Radio One, Inc. Class A*@ 234,300 3,432,495
Westwood One, Inc.* 147,000 3,392,760
---------------
27,897,190
---------------
</Table>
See Accompanying Notes to Financial Statements.
29
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS
OIL & GAS (1.1%)
Newfield Exploration Co.* 74,400 $ 4,330,080
---------------
PERSONAL PRODUCTS (1.6%)
Alberto-Culver Co. 136,900 6,141,334
---------------
PHARMACEUTICALS (4.0%)
Angiotech Pharmaceuticals, Inc.* 247,000 4,515,160
Sepracor, Inc.*@ 181,900 8,354,667
Valeant Pharmaceuticals International@ 119,400 2,865,600
---------------
15,735,427
---------------
ROAD & RAIL (1.8%)
C.H. Robinson Worldwide, Inc.@ 130,800 7,055,352
---------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (2.7%)
Integrated Circuit Systems, Inc.*@ 173,700 3,916,935
Tessera Technologies, Inc.* 241,200 6,736,716
---------------
10,653,651
---------------
SOFTWARE (8.5%)
Activision, Inc.* 406,700 5,889,016
Adobe Systems, Inc. 157,000 8,796,710
Hyperion Solutions Corp.*@ 127,100 5,100,523
Macromedia, Inc.* 291,100 7,900,454
Quest Software, Inc.*@ 382,600 5,612,742
---------------
33,299,445
---------------
SPECIALTY RETAIL (1.0%)
Williams-Sonoma, Inc.* 104,600 3,992,582
---------------
TEXTILES & APPAREL (3.4%)
Coach, Inc.* 140,500 6,551,515
Columbia Sportswear Co.*@ 109,700 6,621,492
---------------
13,173,007
---------------
WIRELESS TELECOMMUNICATION SERVICES (2.0%)
Nextel Partners, Inc. Class A*@ 458,800 7,726,192
---------------
TOTAL COMMON STOCKS (Cost $339,498,961) 376,838,591
---------------
PREFERRED STOCK (0.0%)
TELECOMMUNICATIONS (0.0%)
Celletra, Ltd. Series C*++ (Cost $7,000,000) 1,102,524 0
---------------
</Table>
See Accompanying Notes to Financial Statements.
30
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
SHORT-TERM INVESTMENTS (21.1%)
State Street Navigator Prime Fund** 63,071,784 $ 63,071,784
<Caption>
PAR
(000)
---------------
State Street Bank and Trust Co. Euro Time Deposit, 1.000%, 11/01/04 $ 19,719 19,719,000
---------------
TOTAL SHORT-TERM INVESTMENTS (Cost $82,790,784) 82,790,784
---------------
TOTAL INVESTMENTS AT VALUE (117.4%) (Cost $429,289,745) 459,629,375
LIABILITIES IN EXCESS OF OTHER ASSETS (-17.4%) (68,281,437)
---------------
NET ASSETS (100.0%) $ 391,347,938
===============
</Table>
* Non-income producing security.
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith by, or under the direction of, the Board
of Directors.
@ Security or portion thereof is out on loan.
** Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
31
<Page>
CREDIT SUISSE SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 2004
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS (94.8%)
AGRICULTURE (1.0%)
Delta and Pine Land Co. 35,100 $ 923,832
---------------
BANKS (1.1%)
Boston Private Financial Holdings, Inc.@ 41,000 1,006,140
---------------
BIOTECHNOLOGY (2.1%)
Martek Biosciences Corp.* 10,300 484,677
Nabi Biopharmaceuticals*@ 78,400 1,085,840
Rigel Pharmaceuticals, Inc.*@ 13,100 314,400
---------------
1,884,917
---------------
BUILDING PRODUCTS (0.8%)
Griffon Corp.* 33,900 754,275
---------------
COMMERCIAL SERVICES & SUPPLIES (0.8%)
Universal Technical Institute, Inc.*@ 21,300 698,853
---------------
COMMUNICATIONS EQUIPMENT (1.7%)
Harmonic, Inc.*@ 75,500 628,160
InterDigital Communications Corp.*@ 56,100 891,990
---------------
1,520,150
---------------
COMPUTERS & PERIPHERALS (1.2%)
Avid Technology, Inc.*@ 20,500 1,086,090
---------------
CONTAINERS & PACKAGING (1.2%)
Crown Holdings, Inc.* 94,500 1,072,575
---------------
DIVERSIFIED FINANCIALS (3.7%)
Affiliated Managers Group, Inc.*@ 16,950 946,488
eSPEED, Inc. Class A* 38,400 378,240
Jefferies Group, Inc.@ 26,300 1,055,419
Piper Jaffray Companies, Inc.* 19,900 870,227
---------------
3,250,374
---------------
ENERGY EQUIPMENT & SERVICES (3.6%)
FMC Technologies, Inc.* 36,100 1,091,303
Grey Wolf, Inc.* 230,500 1,193,990
Newpark Resources, Inc.*@ 171,000 928,530
---------------
3,213,823
---------------
FOOD & DRUG RETAILING (1.0%)
Pantry, Inc.* 40,000 919,600
---------------
FOOD PRODUCTS (1.7%)
Hain Celestial Group, Inc.*@ 52,800 854,304
John B. Sanfilippo & Son, Inc.* 36,413 656,526
---------------
1,510,830
---------------
HEALTHCARE EQUIPMENT & SUPPLIES (6.1%)
Advanced Neuromodulation Systems, Inc.* 15,000 477,450
Align Technology, Inc.*@ 86,900 901,588
American Medical Systems Holdings, Inc.* 25,100 931,210
</Table>
See Accompanying Notes to Financial Statements.
32
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS
HEALTHCARE EQUIPMENT & SUPPLIES (6.1%)
I-Flow Corp.*@ 66,400 $ 918,976
SonoSite, Inc.*@ 25,400 733,679
Vnus Medical Technologies* 2,500 37,575
Wilson Greatbatch Technologies, Inc.*@ 17,200 291,540
Wright Medical Group, Inc.*@ 42,500 1,097,775
---------------
5,389,793
---------------
HEALTHCARE PROVIDERS & SERVICES (9.4%)
Amedisys, Inc.*@ 30,800 931,084
AMERIGROUP Corp.*@ 23,600 1,416,000
Centene Corp.*@ 20,100 953,343
Gentiva Health Services, Inc.*@ 60,300 1,022,989
Kindred Healthcare, Inc.*@ 47,700 1,149,570
Molina Healthcare, Inc.* 17,200 633,304
Psychiatric Solutions, Inc.*@ 51,500 1,310,675
United Surgical Partners International, Inc.*@ 28,000 980,280
---------------
8,397,245
---------------
HOTELS, RESTAURANTS & LEISURE (2.1%)
Carmike Cinemas, Inc.@ 28,100 1,005,980
Panera Bread Co. Class A*@ 24,900 869,757
---------------
1,875,737
---------------
INSURANCE (1.4%)
Direct General Corp.@ 9,000 265,500
Platinum Underwriters Holdings, Ltd. 33,100 968,175
---------------
1,233,675
---------------
INTERNET & CATALOG RETAIL (2.3%)
Coldwater Creek, Inc.*@ 47,949 1,103,786
J. Jill Group, Inc.*@ 52,200 917,676
---------------
2,021,462
---------------
INTERNET SOFTWARE & SERVICES (10.0%)
24/7 Real Media, Inc.*@ 146,100 511,350
Ask Jeeves, Inc.*@ 42,800 1,103,384
Chordiant Software, Inc.* 254,700 626,562
Digitas, Inc.*@ 140,500 1,264,500
FileNET Corp.*@ 39,600 1,102,068
MatrixOne, Inc.*@ 153,200 873,240
Openwave Systems, Inc.*@ 119,366 1,404,938
SINA Corp.*@ 19,300 646,550
Sohu.com, Inc.*@ 38,400 643,200
webMethods, Inc.*@ 107,400 744,282
---------------
8,920,074
---------------
IT CONSULTING & SERVICES (1.3%)
Titan Corp.* 79,200 1,175,328
---------------
</Table>
See Accompanying Notes to Financial Statements.
33
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS
LEISURE EQUIPMENT & PRODUCTS (0.9%)
RC2 Corp.* 27,900 $ 777,294
---------------
MACHINERY (1.3%)
Kennametal, Inc. 21,300 991,089
Wabash National Corp.* 8,000 196,640
---------------
1,187,729
---------------
MEDIA (3.2%)
Aquantive, Inc.*@ 104,200 932,590
Cumulus Media, Inc. Class A* 61,800 1,004,250
Emmis Communications Corp. Class A*@ 49,600 927,520
---------------
2,864,360
---------------
METALS & MINING (0.9%)
GrafTech International, Ltd.*@ 83,500 773,210
---------------
OIL & GAS (3.1%)
Denbury Resources, Inc.* 38,900 964,720
Remington Oil & Gas Corp.*@ 36,100 918,384
Stone Energy Corp.* 20,600 848,102
---------------
2,731,206
---------------
PHARMACEUTICALS (6.5%)
Angiotech Pharmaceuticals, Inc.* 54,700 999,916
Impax Laboratories, Inc.*@ 56,300 830,988
Inspire Phamaceuticals, Inc.*@ 66,200 1,036,692
Medicines Co.*@ 46,100 1,228,104
Medicis Pharmaceutical Corp. Class A@ 17,300 703,591
Sepracor, Inc.*@ 20,700 950,751
---------------
5,750,042
---------------
SEMICONDUCTOR EQUIPMENT & PRODUCTS (5.5%)
Asyst Technologies, Inc.*@ 143,300 767,372
Axcelis Technologies, Inc.*@ 52,200 448,920
Cymer, Inc.*@ 25,400 724,408
Entegris, Inc.*@ 69,000 638,595
Tessera Technologies, Inc.*@ 57,700 1,611,561
Trident Microsystems, Inc.* 8,800 116,072
Varian Semiconductor Equipment Associates, Inc.*@ 16,200 560,682
---------------
4,867,610
---------------
SOFTWARE (10.5%)
Activision, Inc.* 96,350 1,395,148
Agile Software Corp.*@ 126,800 1,082,872
Hyperion Solutions Corp.*@ 23,900 959,107
Informatica Corp.*@ 90,500 706,805
Quest Software, Inc.*@ 90,100 1,321,767
Radiant Systems, Inc.* 61,100 312,832
SkillSoft PLC ADR*@ 140,900 965,165
Take-Two Interactive Software, Inc.*@ 20,400 672,384
THQ, Inc.*@ 39,100 738,990
TIBCO Software, Inc.* 120,300 1,169,316
---------------
9,324,386
---------------
</Table>
See Accompanying Notes to Financial Statements.
34
<Page>
<Table>
<Caption>
NUMBER OF
SHARES VALUE
--------------- ---------------
COMMON STOCKS
SPECIALTY RETAIL (6.8%)
Aaron Rents, Inc. 17,100 $ 371,070
Aeropostale, Inc.* 32,750 1,033,262
Cost Plus, Inc.*@ 25,600 826,880
Design Within Reach, Inc.*@ 31,700 508,785
Guitar Center, Inc.*@ 27,200 1,213,936
Hot Topic, Inc.*@ 53,000 1,089,680
Sports Authority, Inc.*@ 39,800 962,364
---------------
6,005,977
---------------
TEXTILES & APPAREL (3.6%)
Deckers Outdoor Corp.*@ 27,000 1,022,220
K-Swiss, Inc. Class A@ 51,100 1,277,500
Warnaco Group, Inc.*@ 45,000 918,000
---------------
3,217,720
---------------
TOTAL COMMON STOCKS (Cost $77,144,351) 84,354,307
---------------
PREFERRED STOCKS (0.0%)
INTERNET SOFTWARE & SERVICES (0.0%)
Planetweb, Inc.*++ (Cost $149,913) 27,600 214
---------------
WARRANT (0.0%)
ELECTRONIC EQUIPMENT & INSTRUMENTS (0.0%)
APW, Ltd. expires 7/31/09*^
(Cost $0) 17 0
---------------
SHORT-TERM INVESTMENTS (33.5%)
State Street Navigator Prime Fund** 22,732,706 22,732,706
<Caption>
PAR
(000)
---------------
State Street Bank and Trust Co. Euro Time Deposit, 1.000%, 11/01/04 $ 7,097 7,097,000
---------------
TOTAL SHORT-TERM INVESTMENTS (Cost $29,829,706) 29,829,706
---------------
TOTAL INVESTMENTS AT VALUE (128.3%) (Cost $107,123,970) 114,184,227
LIABILITIES IN EXCESS OF OTHER ASSETS (-28.3%) (25,185,183)
---------------
NET ASSETS (100.0%) $ 88,999,044
===============
</Table>
INVESTMENT ABBREVIATION
ADR = American Depository Receipt
* Non-income producing security.
++ Restricted security, not readily marketable; security is valued at fair
value as determined in good faith by, or under the direction of, the Board
of Directors.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by, or under the direction of, the Board of
Directors.
@ Security or portion thereof is out on loan.
** Represents security purchased with cash collateral received for securities
on loan.
See Accompanying Notes to Financial Statements.
35
<Page>
CREDIT SUISSE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 2004
<Table>
<Caption>
CAPITAL MID-CAP SMALL CAP
APPRECIATION FUND GROWTH FUND GROWTH FUND
------------------ ------------------ ------------------
ASSETS
Investments at value, including collateral for securities
on loan of $18,946,701, $63,071,784 and $22,732,706,
respectively (Cost $429,538,327, $429,289,745 and
$107,123,970, respectively) (Note 1) $ 473,183,105(1) $ 459,629,375(2) $ 114,184,227(3)
Cash 577 -- 102
Receivable for investments sold 5,829,706 7,799,411 1,250,819
Receivable for fund shares sold 254,158 768,620 176,520
Dividend and interest receivable 42,805 1,643 7,882
Prepaid expenses and other assets 50,439 63,495 55,186
------------------ ------------------ ------------------
Total Assets 479,360,790 468,262,544 115,674,736
------------------ ------------------ ------------------
LIABILITIES
Advisory fee payable (Note 2) 268,025 293,262 32,517
Administrative services fee payable (Note 2) 112,720 96,305 26,221
Shareholder servicing/Distribution fee payable (Note 2) 16,331 21,201 19,142
Payable upon return of securities loaned (Note 1) 18,946,701 63,071,784 22,732,706
Payable for investments purchased 6,514,807 9,005,479 1,000,154
Payable due to custodian -- 2,403,166 --
Payable for fund shares redeemed 604,327 1,445,375 2,708,492
Trustees'/Directors' fee payable 4,268 4,268 4,268
Other accrued expenses payable 608,572 573,766 152,192
------------------ ------------------ ------------------
Total Liabilities 27,075,751 76,914,606 26,675,692
------------------ ------------------ ------------------
NET ASSETS
Capital stock, $0.001 par value (Note 6) 29,690 14,024 4,793
Paid-in capital (Note 6) 794,555,536 583,174,035 91,968,957
Accumulated net realized loss on investments (385,944,965) (222,179,752) (10,034,964)
Net unrealized appreciation from investments 43,644,778 30,339,631 7,060,258
------------------ ------------------ ------------------
Net Assets $ 452,285,039 $ 391,347,938 $ 88,999,044
================== ================== ==================
COMMON SHARES
Net assets $ 433,681,274 $ 364,298,385 $ 78,130,935
Shares outstanding 28,427,319 12,992,230 4,207,385
------------------ ------------------ ------------------
Net asset value, offering price and redemption price
per share $ 15.26 $ 28.04 $ 18.57
================== ================== ==================
ADVISOR SHARES
Net assets $ 14,723,020 $ 26,474,182 $ 943
Shares outstanding 1,004,675 1,011,089 51
------------------ ------------------ ------------------
Net asset value, offering price and redemption price
per share $ 14.65 $ 26.18 $ 18.53
================== ================== ==================
</Table>
See Accompanying Notes to Financial Statements.
36
<Page>
<Table>
<Caption>
CAPITAL MID-CAP SMALL CAP
APPRECIATION FUND GROWTH FUND GROWTH FUND
------------------ ------------------ ------------------
A SHARES
Net assets $ 2,489,527 $ 567,117 $ 10,855,806
Shares outstanding 164,384 20,420 584,744
------------------ ------------------ ------------------
Net asset value and redemption price per share $ 15.14 $ 27.77 $ 18.57
================== ================== ==================
Maximum offering price per share (net asset
value/(1-5.75%)) $ 16.06 $ 29.46 $ 19.70
================== ================== ==================
B SHARES
Net assets $ 542,560 $ 7,303 $ 10,420
Shares outstanding 36,618 264 564
------------------ ------------------ ------------------
Net asset value and offering price per share $ 14.82 $ 27.64 $ 18.48
================== ================== ==================
C SHARES
Net assets $ 848,658 $ 951 $ 940
Shares outstanding 57,290 34 50
------------------ ------------------ ------------------
Net asset value and offering price per share $ 14.81 $ 27.67 $ 18.48
================== ================== ==================
</Table>
(1) Including $18,522,888 of securities on loan.
(2) Including $61,531,421 of securities on loan.
(3) Including $22,141,843 of securities on loan.
See Accompanying Notes to Financial Statements.
37
<Page>
STATEMENTS OF OPERATIONS
For the Year Ended October 31, 2004
<Table>
<Caption>
CAPITAL MID-CAP SMALL CAP
APPRECIATION FUND GROWTH FUND GROWTH FUND
------------------ ------------------ ------------------
INVESTMENT INCOME (Note 1)
Dividends $ 2,861,837 $ 1,141,657 $ 92,725
Interest 81,044 168,803 52,376
Securities lending 17,177 68,165 21,803
Foreign taxes (14,651) -- --
------------------ ------------------ ------------------
Total investment income 2,945,407 1,378,625 166,904
------------------ ------------------ ------------------
EXPENSES
Investment advisory fees (Note 2) 3,498,568 3,887,905 907,109
Administrative services fees (Note 2) 792,942 687,842 153,205
Shareholder servicing/Distribution fees (Note 2)
Common Class -- -- 208,689
Advisor Class 82,081 164,784 2
Class A 4,522 945 18,081
Class B 5,592 42 15
Class C 6,229 7 7
Transfer agent fees (Note 2) 1,102,924 1,113,076 284,084
Printing fees (Note 2) 74,472 73,924 29,808
Registration fees 71,453 71,412 63,566
Insurance expense 57,282 32,207 17,966
Audit fees 50,374 37,002 16,573
Custodian fees 43,821 41,971 28,313
Legal fees 34,148 51,411 48,497
Trustees'/Directors' fees 16,872 16,872 16,872
Commitment fees (Note 3) 14,105 12,296 2,663
Miscellaneous expense 20,346 19,966 9,267
------------------ ------------------ ------------------
Total expenses 5,875,731 6,211,662 1,804,717
Less: fees waived (Note 2) -- -- (534,747)
------------------ ------------------ ------------------
Net expenses 5,875,731 6,211,662 1,269,970
------------------ ------------------ ------------------
Net investment loss (2,930,324) (4,833,037) (1,103,066)
------------------ ------------------ ------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 18,748,246 80,816,785 9,479,818
Net change in unrealized appreciation (depreciation)
from investments 2,165,046 (57,342,636) (7,516,561)
------------------ ------------------ ------------------
Net realized and unrealized gain from investments 20,913,292 23,474,149 1,963,257
------------------ ------------------ ------------------
Net increase in net assets resulting from operations $ 17,982,968 $ 18,641,112 $ 860,191
================== ================== ==================
</Table>
See Accompanying Notes to Financial Statements.
38
<Page>
This page intentionally left blank
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
CAPITAL APPRECIATION FUND
--------------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
----------------- -----------------
FROM OPERATIONS
Net investment loss $ (2,930,324) $ (2,131,927)
Net realized gain (loss) from investments 18,748,246 (33,954,159)
Net change in unrealized appreciation
(depreciation) from investments 2,165,046 120,908,900
----------------- -----------------
Net increase in net assets resulting
from operations 17,982,968 84,822,814
----------------- -----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 64,577,142 86,270,380
Reinvestment of dividends and distributions -- --
Net asset value of shares redeemed (164,242,663) (220,631,129)
----------------- -----------------
Net increase (decrease) in net assets
from capital share transactions (99,665,521) (134,360,749)
----------------- -----------------
Net increase (decrease) in net assets (81,682,553) (49,537,935)
NET ASSETS
Beginning of year 533,967,592 583,505,527
----------------- -----------------
End of year $ 452,285,039 $ 533,967,592
================= =================
</Table>
See Accompanying Notes to Financial Statements.
40
<Page>
<Table>
<Caption>
MID-CAP GROWTH FUND
--------------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
----------------- -----------------
FROM OPERATIONS
Net investment loss $ (4,833,037) $ (4,237,713)
Net realized gain (loss) from investments 80,816,785 13,936,296
Net change in unrealized appreciation
(depreciation) from investments (57,342,636) 125,732,873
----------------- -----------------
Net increase in net assets resulting
from operations 18,641,112 135,431,456
----------------- -----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 89,263,585 101,028,267
Reinvestment of dividends and distributions -- --
Net asset value of shares redeemed (164,214,779) (189,580,871)
----------------- -----------------
Net increase (decrease) in net assets
from capital share transactions (74,951,194) (88,552,604)
----------------- -----------------
Net increase (decrease) in net assets (56,310,082) 46,878,852
NET ASSETS
Beginning of year 447,658,020 400,779,168
----------------- -----------------
End of year $ 391,347,938 $ 447,658,020
================= =================
<Caption>
SMALL CAP GROWTH FUND
--------------------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
----------------- -----------------
FROM OPERATIONS
Net investment loss $ (1,103,066) $ (611,652)
Net realized gain (loss) from investments 9,479,818 (1,191,044)
Net change in unrealized appreciation
(depreciation) from investments (7,516,561) 21,978,881
----------------- -----------------
Net increase in net assets resulting
from operations 860,191 20,176,185
----------------- -----------------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 48,554,040 41,262,405
Reinvestment of dividends and distributions -- --
Net asset value of shares redeemed (38,571,104) (26,522,563)
----------------- -----------------
Net increase (decrease) in net assets
from capital share transactions 9,982,936 14,739,842
----------------- -----------------
Net increase (decrease) in net assets 10,843,127 34,916,027
NET ASSETS
Beginning of year 78,155,917 43,239,890
----------------- -----------------
End of year $ 88,999,044 $ 78,155,917
================= =================
</Table>
See Accompanying Notes to Financial Statements.
41
<Page>
CREDIT SUISSE CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
------------------------------------------------------------------------------
2004 2003 2002 2001 2000
---------- ---------- ---------- ---------- ------------
PER SHARE DATA
Net asset value, beginning of year $ 14.75 $ 12.53 $ 16.23 $ 30.57 $ 25.82
---------- ---------- ---------- ---------- ------------
INVESTMENT OPERATIONS
Net investment loss (0.09)(1) (0.05)(1) (0.07)(1) (0.02) (0.05)
Net gain (loss) on investments
(both realized and unrealized) 0.60 2.27 (3.63) (10.04) 7.72
---------- ---------- ---------- ---------- ------------
Total from investment operations 0.51 2.22 (3.70) (10.06) 7.67
---------- ---------- ---------- ---------- ------------
LESS DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -- -- -- -- --
Distributions from net realized gains -- -- 0.00(2) (4.28) (2.92)
---------- ---------- ---------- ---------- ------------
Total dividends and distributions -- -- -- (4.28) (2.92)
---------- ---------- ---------- ---------- ------------
NET ASSET VALUE, END OF YEAR $ 15.26 $ 14.75 $ 12.53 $ 16.23 $ 30.57
========== ========== ========== ========== ============
Total return(3) 3.46% 17.72% (22.79)% (37.59)% 31.50%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 433,681 $ 514,668 $ 566,064 $ 899,234 $ 1,618,147
Ratio of expenses to average net assets(4) 1.16% 1.15% 1.11% 0.99% 0.98%
Ratio of net investment loss to average
net assets (0.57)% (0.39)% (0.45)% (0.09)% (0.19)%
Portfolio turnover rate 70% 97% 50% 100% 140%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $ 0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Common Class shares' net expense ratio by .02% for the year ended
October 31, 2000. The Common Class shares' operating expense ratio after
reflecting these arrangements was .96% 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.
42
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------------
2004 2003 2002 2001 2000
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 14.24 $ 12.16 $ 15.82 $ 29.88 $ 25.28
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss (0.16)(1) (0.11)(1) (0.14)(1) (0.12) (0.21)
Net gain (loss) on investments
(both realized and unrealized) 0.57 2.19 (3.52) (9.81) 7.58
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.41 2.08 (3.66) (9.93) 7.37
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(2) (4.13) (2.77)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 14.65 $ 14.24 $ 12.16 $ 15.82 $ 29.88
========== ========== ========== ========== ==========
Total return(3) 2.88% 17.11% (23.13)% (37.91)% 30.83%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 14,723 $ 17,380 $ 16,693 $ 25,882 $ 34,058
Ratio of expenses to average net assets(4) 1.66% 1.65% 1.61% 1.49% 1.48%
Ratio of net investment loss to average
net assets (1.07)% (0.90)% (0.96)% (0.62)% (0.69)%
Portfolio turnover rate 70% 97% 50% 100% 140%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $ 0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Advisor Class shares' net expense ratio by .02% for the year ended
October 31, 2000. The Advisor Class shares' operating expense ratio after
reflecting these arrangements was 1.46% 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.
43
<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)
---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of period $ 14.68 $ 12.50 $ 17.75
---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss(2) (0.12) (0.09) (0.09)
Net gain (loss) on investments
(both realized and unrealized) 0.58 2.27 (5.16)
---------- ---------- ----------
Total from investment operations 0.46 2.18 (5.25)
---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(3)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 15.14 $ 14.68 $ 12.50
========== ========== ==========
Total return(4) 3.13% 17.44% (29.57)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 2,490 $ 1,152 $ 450
Ratio of expenses to average net assets(5) 1.41% 1.40% 1.40%(6)
Ratio of net investment loss to average net assets (0.82)% (0.69)% (0.77)%(6)
Portfolio turnover rate 70% 97% 50%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $ 0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2004 and
2003 and for the period ended October 31, 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
44
<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)
---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of period $ 14.47 $ 12.41 $ 17.75
---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss(2) (0.23) (0.19) (0.18)
Net gain (loss) on investments
(both realized and unrealized) 0.58 2.25 (5.16)
---------- ---------- ----------
Total from investment operations 0.35 2.06 (5.34)
---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(3)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 14.82 $ 14.47 $ 12.41
========== ========== ==========
Total return(4) 2.42% 16.60% (30.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 543 $ 545 $ 206
Ratio of expenses to average net assets(5) 2.16% 2.15% 2.15%(6)
Ratio of net investment loss to average net assets (1.57)% (1.44)% (1.51)%(6)
Portfolio turnover rate 70% 97% 50%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $ 0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2004 and
2003 and for the period ended October 31, 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
45
<Page>
(For a Class C Share of the Fund Outstanding Throughout Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31
----------------------------------------
2004 2003 2002(1)
---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of period $ 14.47 $ 12.41 $ 17.75
---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss(2) (0.23) (0.19) (0.18)
Net gain (loss) on investments
(both realized and unrealized) 0.57 2.25 (5.16)
---------- ---------- ----------
Total from investment operations 0.34 2.06 (5.34)
---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(3)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 14.81 $ 14.47 $ 12.41
========== ========== ==========
Total return(4) 2.35% 16.60% (30.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 849 $ 223 $ 93
Ratio of expenses to average net assets(5) 2.16% 2.15% 2.14%(6)
Ratio of net investment loss to average net assets (1.57)% (1.44)% (1.49)%(6)
Portfolio turnover rate 70% 97% 50%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions, and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2004, 2003
and 2002, there was no effect on the net operating expense ratio because of
transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
46
<Page>
CREDIT SUISSE MID-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
------------------------------------------------------------------------------
2004 2003 2002 2001 2000
---------- ---------- ---------- ---------- ------------
PER SHARE DATA
Net asset value, beginning of year $ 26.79 $ 18.98 $ 23.60 $ 50.24 $ 43.73
---------- ---------- ---------- ---------- ------------
INVESTMENT OPERATIONS
Net investment loss (0.30)(1) (0.22)(1) (0.23)(1) (0.26) (0.33)
Net gain (loss) on investments
(both realized and unrealized) 1.55 8.03 (4.39) (17.89) 13.07
---------- ---------- ---------- ---------- ------------
Total from investment operations 1.25 7.81 (4.62) (18.15) 12.74
---------- ---------- ---------- ---------- ------------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(2) (8.49) (6.23)
---------- ---------- ---------- ---------- ------------
NET ASSET VALUE, END OF YEAR $ 28.04 $ 26.79 $ 18.98 $ 23.60 $ 50.24
========== ========== ========== ========== ============
Total return(3) 4.67% 41.15% (19.57)% (42.61)% 30.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 364,298 $ 407,262 $ 357,872 $ 877,983 $ 2,114,737
Ratio of expenses to average net assets(4) 1.40% 1.38% 1.35% 1.28% 1.19%
Ratio of net investment loss to average
net assets (1.08)% (1.04)% (0.98)% (0.73)% (0.65)%
Portfolio turnover rate 106% 68% 67% 177% 191%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Common Class shares' net expense ratio by .02% for the year ended
October 31, 2000. The Common Class shares' operating expense ratio after
reflecting these arrangements was 1.17% 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.
47
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------------
2004 2003 2002 2001 2000
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 25.14 $ 17.90 $ 22.38 $ 48.02 $ 41.99
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss (0.41)(1) (0.31)(1) (0.33)(1) (0.46) (0.61)
Net gain (loss) on investments
(both realized and unrealized) 1.45 7.55 (4.15) (16.96) 12.61
---------- ---------- ---------- ---------- ----------
Total from investment operations 1.04 7.24 (4.48) (17.42) 12.00
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(2) (8.22) (5.97)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 26.18 $ 25.14 $ 17.90 $ 22.38 $ 48.02
========== ========== ========== ========== ==========
Total return(3) 4.14% 40.45% (20.01)% (42.88)% 29.96%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 26,474 $ 40,322 $ 42,906 $ 101,690 $ 277,802
Ratio of expenses to average net assets(4) 1.90% 1.88% 1.85% 1.78% 1.69%
Ratio of net investment loss to average
net assets (1.58)% (1.53)% (1.49)% (1.23)% (1.15)%
Portfolio turnover rate 106% 68% 67% 177% 191%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) This represents less than $ 0.01 per share.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Advisor Class shares' net expense ratio by .02% for the year ended
October 31, 2000. The Advisor Class shares' operating expense ratio after
reflecting these arrangements was 1.67% 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.
48
<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)
---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of period $ 26.60 $ 18.90 $ 25.92
---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss(2) (0.38) (0.33) (0.28)
Net gain (loss) on investments
(both realized and unrealized) 1.55 8.03 (6.74)
---------- ---------- ----------
Total from investment operations 1.17 7.70 (7.02)
---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- 0.00(3)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 27.77 $ 26.60 $ 18.90
========== ========== ==========
Total return(4) 4.40% 40.74% (27.08)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 567 $ 75 $ 1
Ratio of expenses to average net assets(5) 1.65% 1.63% 1.71%(6)
Ratio of net investment loss to average net assets (1.33)% (1.36)% (1.35)%(6)
Portfolio turnover rate 106% 68% 67%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) Per share information is calculated using the average shares outstanding
method.
(3) This represents less than $0.01 per share.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Total
returns for periods less than one year are not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2004 and
2003 and for the period ended October 31, 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
49
<Page>
(For a Class B and Class C Share of the Fund Outstanding Throughout the Period)
<Table>
<Caption>
FOR THE PERIOD ENDED OCTOBER 31, 2004(1)
----------------------------------------
CLASS B CLASS C
----------- -----------
PER SHARE DATA
Net asset value, beginning of period $ 29.10 $ 29.10
----------- -----------
INVESTMENT OPERATIONS
Net investment loss(2) (0.38) (0.38)
Net loss on investments
(both realized and unrealized) (1.08) (1.05)
----------- -----------
Total from investment operations (1.46) (1.43)
----------- -----------
NET ASSET VALUE, END OF PERIOD $ 27.64 $ 27.67
=========== ===========
Total return(3) (5.02)% (4.91)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 7 $ 1
Ratio of expenses to average net assets(4), (5) 2.40% 2.40%
Ratio of net investment loss to average net assets(5) (2.08)% (2.08)%
Portfolio turnover rate 106% 106%
</Table>
(1) For the period February 27, 2004 (inception date) through October 31, 2004.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Total
returns for periods less than one year are not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the period ended October 31, 2004, there
was no effect on the net operating expense ratio because of transfer agent
credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
50
<Page>
CREDIT SUISSE SMALL CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------------
2004 2003 2002 2001 2000
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of year $ 18.14 $ 12.58 $ 15.38 $ 23.11 $ 16.60
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss (0.23)(1) (0.18)(1) (0.18)(1) (0.18) (0.13)
Net gain (loss) on investments
(both realized and unrealized) 0.66 5.74 (2.62) (7.55) 7.28
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.43 5.56 (2.80) (7.73) 7.15
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Distributions from net realized gains -- -- -- -- (0.64)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF YEAR $ 18.57 $ 18.14 $ 12.58 $ 15.38 $ 23.11
========== ========== ========== ========== ==========
Total return(2) 2.37% 44.20% (18.21)% (33.45)% 43.65%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $ 78,131 $ 77,236 $ 42,918 $ 36,445 $ 47,900
Ratio of expenses to average net assets(3) 1.40% 1.40% 1.40% 1.40% 1.42%
Ratio of net investment loss to average
net assets (1.22)% (1.23)% (1.18)% (1.04)% (0.80)%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.59% 0.71% 0.98% 0.54% 0.56%
Portfolio turnover rate 100% 69% 72% 74% 94%
</Table>
(1) Per share information is calculated using the average shares outstanding
method.
(2) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the period shown, total returns would have been lower.
(3) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. These arrangements resulted in a reduction
to the Common Class shares' net expense ratio by .02% for the year ended
October 31, 2000. The Common Class shares' operating expense ratio after
reflecting these arrangements was 1.40% 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.
51
<Page>
(For an Advisor Class Share of the Fund Outstanding Throughout the Period)
<Table>
<Caption>
FOR THE PERIOD
ENDED
OCTOBER 31, 2004(1)
-------------------
PER SHARE DATA
Net asset value, beginning of period $ 19.65
----------
INVESTMENT OPERATIONS
Net investment loss(2) (0.20)
Net loss on investments
(both realized and unrealized) (0.92)
----------
Total from investment operations (1.12)
----------
NET ASSET VALUE, END OF PERIOD $ 18.53
==========
Total return(3) (5.70)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 1
Ratio of expenses to average net assets(4), (5) 1.65%
Ratio of net investment loss to average net assets(5) (1.47)%
Decrease reflected in above operating expense
ratios due to waivers/reimbursements(5) 0.59%
Portfolio turnover rate 100%
</Table>
(1) For the period February 27, 2004 (inception date) through October 31, 2004.
(2) Per share information is calculated using the average shares outstanding
method.
(3) Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the period shown, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(4) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the period ended October 31, 2004, there
was no effect on the net operating expense ratio because of transfer agent
credits.
(5) Annualized.
See Accompanying Notes to Financial Statements.
52
<Page>
(For a Class A, Class B and Class C Share of the Fund Outstanding Throughout
Each Period)
<Table>
<Caption>
FOR THE YEAR ENDED OCTOBER 31, FOR THE PERIOD ENDED
---------------------------------------- OCTOBER 31, 2004(2)
2004 2003 2002(1) ----------------------------
CLASS A CLASS A CLASS A CLASS B CLASS C
---------- ---------- ---------- ---------- ----------
PER SHARE DATA
Net asset value, beginning of period $ 18.14 $ 12.57 $ 16.88 $ 19.65 $ 19.65
---------- ---------- ---------- ---------- ----------
INVESTMENT OPERATIONS
Net investment loss(3) (0.23) (0.18) (0.15) (0.24) (0.24)
Net gain (loss) on investments
(both realized and unrealized) 0.66 5.75 (4.16) (0.93) (0.93)
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.43 5.57 (4.31) (1.17) (1.17)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 18.57 $ 18.14 $ 12.57 $ 18.48 $ 18.48
========== ========== ========== ========== ==========
Total return(4) 2.37% 44.31% (25.53)% (5.95)% (5.95)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 10,856 $ 920 $ 322 $ 10 $ 1
Ratio of expenses to average net assets(5) 1.40% 1.40% 1.40%(6) 2.15%(6) 2.15%(6)
Ratio of net investment loss to average
net assets (1.21)% (1.24)% (1.14)%(6) (1.97)%(6) (1.97)%(6)
Decrease reflected in above operating
expense ratios due to waivers/
reimbursements 0.59% 0.71% 1.13%(6) 0.59%(6) 0.59%(6)
Portfolio turnover rate 100% 69% 72% 100% 100%
</Table>
(1) For the period November 30, 2001 (inception date) through October 31, 2002.
(2) For the period February 27, 2004 (inception date) through October 31, 2004.
(3) Per share information is calculated using the average shares outstanding
method.
(4) Total returns are historical and assume changes in share price,
reinvestment of all dividends and distributions and no sales charge. Had
certain expenses not been reduced during the periods shown, total returns
would have been lower. Total returns for periods of less than one year are
not annualized.
(5) Interest earned on uninvested cash balances may be used to offset portions
of the transfer agent expense. For the years ended October 31, 2004 and
2003 and for the period ended October 31, 2002, there was no effect on the
net operating expense ratio because of transfer agent credits.
(6) Annualized.
See Accompanying Notes to Financial Statements.
53
<Page>
CREDIT SUISSE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 2004
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Credit Suisse Funds covered in this report are Credit Suisse Capital
Appreciation Fund ("Capital Appreciation"), Credit Suisse Mid-Cap Growth Fund,
formerly Credit Suisse Emerging Growth Fund, ("Mid-Cap Growth") and Credit
Suisse Small Cap Growth Fund ("Small Cap Growth"), which are registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as diversified
open-end management investment companies. Capital Appreciation was organized
under the laws of the Commonwealth of Massachusetts as a business trust on
January 20, 1987. Mid-Cap Growth and Small Cap Growth were incorporated under
the laws of the State of Maryland on November 12, 1987 and October 31, 1996,
respectively.
Investment objectives for each Fund are as follows: Capital Appreciation
seeks long-term capital appreciation, Mid-Cap Growth seeks maximum capital
appreciation, and Small Cap Growth seeks capital growth.
Capital Appreciation, Mid-Cap Growth and Small Cap Growth offer five classes
of shares, Common Class, Advisor Class, Class A, Class B, and Class C shares.
The Funds' 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 Funds and open new accounts under the same Social Security number.
Each class of shares in each Fund represents an equal pro rata interest in each
Fund, except that they bear different expenses, which reflect the difference in
the range of services provided to them. Class A shares of each Fund are sold
subject to a maximum front-end sales charge of 5.75%. Class B shares are sold
subject to a contingent deferred sales charge which declines from 4.00% to zero
depending on the period of time the shares are held. Class C shares are sold
subject to a contingent deferred sales charge of 1.00% if the shares are
redeemed within the first year of purchase.
A) SECURITY VALUATION -- The net asset value of each Fund is determined daily
as of the close of regular trading on the New York Stock Exchange, Inc. (the
"Exchange") on each day the Exchange is open for business. Each Fund's equity
investments are valued at market value, which is generally determined using the
closing price on the exchange or market on which the security is primarily
traded at the time of valuation (the
54
<Page>
"Valuation Time"). If no sales are reported, equity investments are generally
valued at the most recent bid quotation as of the Valuation Time or at the
lowest asked quotation in the case of a short sale of securities. Debt
securities with a remaining maturity greater than 60 days are valued in
accordance with the price supplied by a pricing service, which may use a matrix,
formula or other objective method that takes into consideration market indices,
yield curves and other specific adjustments. 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. Securities and other assets for which market quotations are not
readily available, or whose values have been materially affected by events
occurring before each Fund's Valuation Time but after the close of the
securities' primary markets, are valued at fair value as determined in good
faith by, or under the direction of, the Board of Trustees/Directors under
procedures established by the Board of Trustees/Directors. Each Fund may utilize
a service provided by an independent third party which has been approved by the
Board of Trustees/Directors to fair value certain securities.
B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Funds are
maintained in U.S. dollars. Transactions denominated in foreign currencies are
recorded at the current prevailing exchange rates. All assets and liabilities
denominated in foreign currencies are translated into U.S. dollar amounts at the
current exchange rate at the end of the period. Translation gains or losses
resulting from changes in the exchange rate during the reporting period and
realized gains and losses on the settlement of foreign currency transactions are
reported in the results of operations for the current period. The Funds do not
isolate that portion of realized gains and losses on investments in EQUITY
securities which is due to changes in the foreign exchange rate from that which
is due to changes in market prices of equity securities. The Funds isolate that
portion of realized gains and losses on investments in DEBT securities which is
due to changes in the foreign exchange rate from that which is due to changes in
market prices of debt securities.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date. Certain expenses are
class-specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon
55
<Page>
the relative net asset value of the outstanding shares of that class. The cost
of investments sold is determined by use of the specific identification method
for both financial reporting and income tax purposes.
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income and distributions of net realized capital gains, if any, are
declared and paid at least annually. However, to the extent that a net realized
capital gain can be reduced by a capital loss carryforward, such gain will not
be distributed. Income and capital gain distributions are determined in
accordance with federal income tax regulations which may differ from accounting
principles generally accepted in the United States of America ("GAAP").
E) FEDERAL INCOME TAXES -- No provision is made for federal taxes, as it is
each Fund's intention to continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code of
1986, as amended, and make the requisite distributions to its shareholders,
which will be sufficient to relieve it from federal income and excise taxes.
F) USE OF ESTIMATES -- The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from these estimates.
G) SHORT-TERM INVESTMENTS -- The Funds, together with other funds/portfolios
advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect,
wholly-owned subsidiary of Credit Suisse Group, pool available cash into a
short-term variable rate time deposit issued by State Street Bank and Trust
Company ("SSB"), the Funds' custodian, or a money market fund advised by CSAM.
The short-term time deposit issued by SSB is a variable rate account classified
as a short-term investment.
H) SECURITIES LENDING -- Loans of securities are required at all times to be
secured by collateral at least equal to 102% of the market value of domestic
securities on loan (including any accrued interest thereon) and 105% of the
market value of foreign securities on loan (including any accrued interest
thereon). Cash collateral received by the Funds in connection with securities
lending activity may be pooled together with cash collateral for other
funds/portfolios advised by CSAM and may be invested in a variety of
investments, including certain CSAM-advised funds, funds advised by SSB,
56
<Page>
the Funds' securities lending agent, or money market instruments. However, in
the event of default or bankruptcy by the other party to the agreement,
realization and/or retention of the collateral may be subject to legal
proceedings.
The market value of securities on loan to brokers and the value of collateral
held by each Fund with respect to such loans at October 31, 2004 are as follows:
<Table>
<Caption>
MARKET VALUE OF VALUE OF
FUND SECURITIES LOANED COLLATERAL RECEIVED
---- ----------------- --------------------
Capital Appreciation $ 18,522,888 $ 18,946,701
Mid-Cap Growth 61,531,421 63,071,784
Small Cap Growth 22,141,843 22,732,706
</Table>
Prior to March 17, 2004, Credit Suisse First Boston ("CSFB"), an affiliate of
CSAM, had been engaged by the Funds to act as the Funds' securities lending
agent.
Effective March 17, 2004, SSB has been engaged by the Funds to act as the
Funds' securities lending agent. The Funds' securities lending arrangement
provides that the Funds and SSB will share the net income earned from securities
lending activities with each Fund receiving 70% and SSB receiving 30% of the
earnings from the investment of cash collateral or any other securities lending
income in accordance with the provisions of the securities lending agency
agreement. The Funds may also be entitled to certain minimum amounts of income
from their securities lending activities. Securities lending income is accrued
as earned.
I) OTHER -- The Funds may invest in securities of foreign countries and
governments which involve certain risks in addition to those inherent in
domestic investments. Such risks generally include, among others, currency risks
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.
The Funds may be subject to taxes imposed by countries in which they invest,
with respect to their investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned or repatriated and
capital gains realized on the sale of such investments. These Funds accrue such
taxes when the related income or gains are earned.
57
<Page>
Each of Capital Appreciation and Mid-Cap Growth may invest up to 10% of its
total assets in non-publicly traded securities. Small Cap Growth may invest up
to 15% of its net assets in such securities. Non-publicly traded securities may
be less liquid than publicly traded securities. Although these securities may be
resold in privately negotiated transactions, the prices realized from such sales
could differ from the price originally paid by such Fund or the current carrying
values, and the difference could be material.
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser to each Fund. For its investment advisory
services, CSAM is entitled to receive a fee from each Fund based on the
following fee schedule:
<Table>
<Caption>
FUND ANNUAL RATE
---- -----------
Capital Appreciation 0.70% of average daily net assets
Mid-Cap Growth 0.90% of average daily net assets
Small Cap Growth 1.00% of average daily net assets
</Table>
For the year ended October 31, 2004, investment advisory fees earned and
voluntarily waived for the Funds were as follows:
<Table>
<Caption>
GROSS NET
ADVISORY ADVISORY
FUND FEE WAIVER FEE
---- ------------ ------------ ------------
Capital Appreciation $ 3,498,568 $ -- $ 3,498,568
Mid-Cap Growth 3,887,905 -- 3,887,905
Small Cap Growth 907,109 (534,747) 372,362
</Table>
CSAM will not recapture from the Funds any fees it waived during the fiscal
year ended October 31, 2004.
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as each Fund's co-administrators.
For co-administrative services, CSAMSI currently receives a fee calculated at
an annual rate of 0.10% of each Fund's average daily net assets.
For the year ended October 31, 2004, co-administrative services fees earned
by CSAMSI were as follows:
<Table>
<Caption>
FUND CO-ADMINISTRATION FEE
---- ---------------------
Capital Appreciation $ 499,796
Mid-Cap Growth 431,989
Small Cap Growth 90,711
</Table>
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<Page>
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 service fees earned by
SSB (including out-of-pocket fees) were as follows:
<Table>
<Caption>
FUND CO-ADMINISTRATION FEE
---- ---------------------
Capital Appreciation $ 293,146
Mid-Cap Growth 255,853
Small Cap Growth 62,494
</Table>
In addition to serving as each Fund's co-administrator, CSAMSI currently
serves as distributor of each Fund's shares. Pursuant to distribution plans
adopted by each Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. These fees are calculated at an annual rate
of 0.25% of the average daily net assets of the Common Class shares of Small Cap
Growth. For the Advisor Class shares of Capital Appreciation, Mid-Cap Growth and
Small Cap Growth, the shareholder servicing fee is calculated at an annual rate
of 0.50% of the average daily net assets. For the Class A shares of each Fund,
the fee is calculated at an annual rate of 0.25% of average daily net assets.
For the Class B and Class C shares of each Fund, the fee is calculated at an
annual rate of 1.00% of average daily net assets.
Certain brokers, dealers and financial representatives provide transfer agent
related services to the Funds, and receive compensation for these services from
CSAM. CSAM is then reimbursed by the Funds. For the year ended October 31, 2004,
the Funds reimbursed CSAM the following amounts, which are included in each
Fund's transfer agent expense as follows:
<Table>
<Caption>
FUND AMOUNT
---- ----------
Capital Appreciation $ 471,537
Mid-Cap Growth 550,026
Small Cap Growth 114,465
</Table>
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<Page>
For the period November 1, 2003 through March 16, 2004, CSFB received fees
for its securities lending activities as follows:
<Table>
<Caption>
FUND AMOUNT
---- ----------
Capital Appreciation $ 630
Mid-Cap Growth 1,875
Small Cap Growth --
</Table>
For the year ended October 31, 2004, CSAMSI and its affiliates advised the
Funds that it retained the following amounts from commissions earned on the sale
of the Funds' Class A shares:
<Table>
<Caption>
FUND AMOUNT
---- ----------
Capital Appreciation $ 11,494
Mid-Cap Growth 4,181
Small Cap Growth 2,703
</Table>
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Funds to provide certain financial printing and fulfillment services. For
the year ended October 31, 2004, Merrill was paid for its services by the Funds
as follows:
<Table>
<Caption>
FUND AMOUNT
---- ----------
Capital Appreciation $ 10,874
Mid-Cap Growth 11,843
Small Cap Growth 11,618
</Table>
NOTE 3. LINE OF CREDIT
The Funds, together with other funds/portfolios advised by CSAM
(collectively, the "Participating Funds"), participate in a $75 million
committed, unsecured line of credit facility ("Credit Facility") for temporary
or emergency purposes with Deutsche Bank, A.G. as administrative agent and
syndication agent and SSB as operations agent. Under the terms of the Credit
Facility, the Participating Funds pay an aggregate commitment fee at a rate of
0.10% per annum on the average unused amount of the Credit Facility, which is
allocated among the Participating Funds in such manner as is determined by the
governing Boards of the Participating Funds. In addition, the Participating
Funds pay interest on borrowings at the Federal Funds rate plus 0.50%. At
October 31, 2004 and during the year ended October 31, 2004, the Funds had no
borrowings under the Credit Facility.
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<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) were as follows:
<Table>
<Caption>
FUND PURCHASES SALES
---- -------------- --------------
Capital Appreciation $ 344,316,388 $ 445,959,300
Mid-Cap Growth 436,824,801 518,258,398
Small Cap Growth 93,508,622 84,624,362
</Table>
NOTE 5. RESTRICTED SECURITIES
Certain investments of the Funds are restricted as to resale and are valued
at fair value as determined in good faith by or under the direction of the Board
of Directors under procedures established by the Board of Directors in the
absence of readily ascertainable market values. The table below shows the number
of shares held, the acquisition dates, aggregate cost, fair value as of October
31, 2004, value per share of such security and percentage of net assets that the
securities represent.
<Table>
<Caption>
PERCENTAGE
SECURITY NUMBER ACQUISITION FAIR VALUE PER OF NET ASSET
FUND DESCRIPTION OF SHARES DATE COST VALUE SHARE VALUE
---- --------------- ------------ ------------ ------------ ------------ ------------ ------------
Mid-Cap Growth Celletra Ltd 1,102,524 4/5/2000 $ 7,000,000 $ -- $ -- 0.00%
Small Cap Growth Planetweb, Inc. 27,600 9/8/2000 149,913 214 0.01 0.00%
</Table>
NOTE 6. CAPITAL SHARE TRANSACTIONS
Capital Appreciation is authorized to issue an unlimited number of full and
fractional shares of beneficial interest. Each of Mid-Cap Growth and Small Cap
Growth each has four billion full and fractional shares of capital stock
authorized and classified as follows: one billion as Common Class shares, one
billion as Advisor Class shares, one billion as Class A shares, 500 million
classified as Class B shares and 500 million classified as Class C shares. Each
Fund has a par value of $.001 per share. Transactions in classes of each Fund
were as follows:
<Table>
<Caption>
CAPITAL APPRECIATION
COMMON CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 3,848,365 $ 58,954,276 6,096,105 $ 80,336,248
Shares redeemed (10,306,226) (157,364,379) (16,395,532) (213,752,796)
-------------- -------------- -------------- --------------
Net decrease (6,457,861) $ (98,410,103) (10,299,427) $ (133,416,548)
============== ============== ============== ==============
</Table>
61
<Page>
<Table>
<Caption>
CAPITAL APPRECIATION
-----------------------------------------------------------------
ADVISOR CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 199,778 $ 2,945,030 363,509 $ 4,570,624
Shares redeemed (415,383) (6,130,851) (516,459) (6,499,704)
-------------- -------------- -------------- --------------
Net decrease (215,605) $ (3,185,821) (152,950) $ (1,929,080)
============== ============== ============== ==============
</Table>
<Table>
<Caption>
CAPITAL APPRECIATION
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 119,043 $ 1,813,009 59,616 $ 810,749
Shares redeemed (33,093) (497,864) (17,150) (229,812)
-------------- -------------- -------------- --------------
Net increase 85,950 $ 1,315,145 42,466 $ 580,937
============== ============== ============== ==============
</Table>
<Table>
<Caption>
CAPITAL APPRECIATION
-----------------------------------------------------------------
CLASS B
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 9,821 $ 147,233 31,099 $ 411,329
Shares redeemed (10,851) (158,817) (10,030) (121,559)
-------------- -------------- -------------- --------------
Net increase (decrease) (1,030) $ (11,584) 21,069 $ 289,770
============== ============== ============== ==============
</Table>
<Table>
<Caption>
CAPITAL APPRECIATION
-----------------------------------------------------------------
CLASS C
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 48,042 $ 717,594 10,123 $ 141,430
Shares redeemed (6,169) (90,752) (2,182) (27,258)
-------------- -------------- -------------- --------------
Net increase 41,873 $ 626,842 7,941 $ 114,172
============== ============== ============== ==============
</Table>
<Table>
<Caption>
MID-CAP GROWTH
-----------------------------------------------------------------
COMMON CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 2,492,444 $ 70,859,091 3,872,754 $ 85,663,702
Shares redeemed (4,703,603) (131,227,801) (7,524,829) (159,014,240)
-------------- -------------- -------------- --------------
Net decrease (2,211,159) $ (60,368,710) (3,652,075) $ (73,350,538)
============== ============== ============== ==============
</Table>
62
<Page>
<Table>
<Caption>
MID-CAP GROWTH
-----------------------------------------------------------------
ADVISOR CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 668,569 $ 17,674,545 713,469 $ 15,298,835
Shares redeemed (1,261,363) (32,765,904) (1,506,326) (30,566,605)
-------------- -------------- -------------- --------------
Net decrease (592,794) $ (15,091,359) (792,857) $ (15,267,770)
============== ============== ============== ==============
</Table>
<Table>
<Caption>
MID-CAP GROWTH
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 25,692 $ 720,949 2,762 $ 65,730
Shares redeemed (8,077) (221,074) (1) (26)
-------------- -------------- -------------- --------------
Net increase 17,615 $ 499,875 2,761 $ 65,704
============== ============== ============== ==============
</Table>
<Table>
<Caption>
MID-CAP GROWTH
-----------------------------------------------------------------
CLASS B CLASS C
-----------------------------------------------------------------
FOR THE PERIOD ENDED FOR THE PERIOD ENDED
OCTOBER 31, 2004(1) OCTOBER 31, 2004(1)
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 264 $ 8,000 34 $ 1,000
-------------- -------------- -------------- --------------
Net increase 264 $ 8,000 34 $ 1,000
============== ============== ============== ==============
</Table>
<Table>
<Caption>
SMALL CAP GROWTH
-----------------------------------------------------------------
COMMON CLASS
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 1,948,573 $ 37,517,015 2,756,033 $ 40,668,973
Shares redeemed (1,998,668) (37,333,447) (1,910,389) (26,349,264)
-------------- -------------- -------------- --------------
Net increase (decrease) (50,095) $ 183,568 845,644 $ 14,319,709
============== ============== ============== ==============
</Table>
<Table>
<Caption>
SMALL CAP GROWTH
-------------------------------
ADVISOR CLASS
-------------------------------
FOR THE PERIOD ENDED
OCTOBER 31, 2004(1)
-------------------------------
SHARES VALUE
-------------- --------------
Shares sold 51 $ 1,000
-------------- --------------
Net increase 51 $ 1,000
============== ==============
</Table>
63
<Page>
<Table>
<Caption>
SMALL CAP GROWTH
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 600,195 $ 11,024,774 36,233 $ 593,432
Shares redeemed (66,165) (1,237,657) (11,111) (173,299)
-------------- -------------- -------------- --------------
Net increase 534,030 $ 9,787,117 25,122 $ 420,133
============== ============== ============== ==============
</Table>
<Table>
<Caption>
SMALL CAP GROWTH
-----------------------------------------------------------------
CLASS B CLASS C
-----------------------------------------------------------------
FOR THE PERIOD ENDED FOR THE PERIOD ENDED
OCTOBER 31, 2004(1) OCTOBER 31, 2004(1)
-----------------------------------------------------------------
SHARES VALUE SHARES VALUE
-------------- -------------- -------------- --------------
Shares sold 564 $ 10,251 50 $ 1,000
-------------- -------------- -------------- --------------
Net increase 564 $ 10,251 50 $ 1,000
============== ============== ============== ==============
</Table>
(1) For the period February 27, 2004 (inception date) through October 31, 2004.
On October 31, 2004, the number of shareholders that held 5% or more of the
outstanding shares of each class of shares of each Fund were as follows:
<Table>
<Caption>
NUMBER OF APPROXIMATE PERCENTAGE
FUND SHAREHOLDERS OF OUTSTANDING SHARES
---- ------------ ----------------------
Capital Appreciation
Common 4 42%
Advisor 2 70%
Class A 3 51%
Class B 5 69%
Class C 2 50%
Mid-Cap Growth
Common 3 51%
Advisor 1 89%
Class A 3 80%
Class B 2 99%
Small Cap Growth
Common 2 74%
Class B 2 99%
</Table>
Some of the shareholders are omnibus accounts, which hold shares on behalf of
individual shareholders.
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<Page>
NOTE 7. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP. These differences
are primarily due to differing treatments of losses deferred due to wash sales.
At October 31, 2004, the components of distributable earnings on a tax basis
for the Funds were as follows:
<Table>
<Caption>
CAPITAL APPRECIATION MID-CAP GROWTH SMALL CAP GROWTH
-------------------- ---------------- ----------------
Accumulated realized loss $ (385,078,822) $ (222,027,048) $ (9,205,493)
Unrealized appreciation 42,778,635 30,186,927 6,230,787
---------------- -------------- --------------
$ (342,300,187) $ (191,840,121) $ (2,974,706)
================ ============== ==============
</Table>
At October 31, 2004, the Funds had capital loss carryforwards available to
offset possible future capital gains as follows:
<Table>
<Caption>
EXPIRES OCTOBER 31,
----------------------------------------------------
FUND 2009 2010 2011
---- ---------------- -------------- --------------
Capital Appreciation $ 160,595,888 $ 186,923,215 $ 37,559,718
Mid-Cap Growth 197,357,121 24,669,925 --
Small Cap Growth 3,057,367 5,907,087 241,039
</Table>
During the tax year ended October 31, 2004, Capital Appreciation, Mid-Cap
Growth and Small Cap Growth have utilized $17,194,544, $79,741,556 and
$9,026,585 of the capital loss carryforwards, respectively.
It is uncertain whether the Funds will be able to realize the benefits before
they expire.
As of 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 as follows:
<Table>
<Caption>
IDENTIFIED GROSS UNREALIZED GROSS UNREALIZED NET UNREALIZED
FUND COST APPRECIATION (DEPRECIATION) APPRECIATION
---- ---------------- ---------------- ---------------- ----------------
Capital Appreciation $ 430,404,470 $ 70,928,061 $ (28,149,426) $ 42,778,635
Mid-Cap Growth 429,442,448 49,947,432 (19,760,505) 30,186,927
Small Cap Growth 107,953,441 11,850,041 (5,619,254) 6,230,787
</Table>
At October 31, 2004, accumulated undistributed net investment income and
paid-in capital have been adjusted for current period permanent book/tax
differences which arose principally from differing book/tax
65
<Page>
treatments of net operating losses. Net assets were not affected by these
reclassifications:
<Table>
<Caption>
UNDISTRIBUTED
PAID-IN NET INVESTMENT
FUND CAPITAL INCOME
---- ------------ --------------
Capital Appreciation $ (2,930,324) $ 2,930,324
Mid-Cap Growth (4,833,037) 4,833,037
Small Cap Growth (1,103,066) 1,103,066
</Table>
NOTE 8. CONTINGENCIES
In the normal course of business, the Funds may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Funds' maximum exposure under these arrangements is dependent on future claims
that may be made against the Funds and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
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<Page>
CREDIT SUISSE FUNDS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors/Trustees and Shareholders of
Credit Suisse Capital Appreciation Fund;
Credit Suisse Mid-Cap Growth Fund, Inc.;
Credit Suisse Small Cap Growth Fund, Inc.:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Credit Suisse Capital Appreciation
Fund, Credit Suisse Mid-Cap Growth Fund, Inc. (formerly Credit Suisse Emerging
Growth Fund, Inc.), and Credit Suisse Small Cap Growth Fund, Inc. (hereafter
referred to as the "Funds") at October 31, 2004, the results of each of their
operations for the year then ended, the changes in each of their net assets for
each of the two years in the period then ended and the financial highlights for
each of the years (or periods) presented, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with 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
67
<Page>
CREDIT SUISSE FUNDS
INFORMATION CONCERNING DIRECTORS/TRUSTEES AND OFFICERS (UNAUDITED)
<Table>
<Caption>
NUMBER OF
TERM PORTFOLIOS IN
OF OFFICE(1) FUND
AND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING DIRECTOR/ HELD BY DIRECTOR/
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE TRUSTEE
- ----------------------------- ------------ ------------ -------------------- --------------- -------------------
INDEPENDENT DIRECTORS/
TRUSTEES
Richard H. Francis Director/ Since Currently retired 42 None
c/o Credit Suisse Asset Trustee, 1999
Management, LLC Nominating
466 Lexington Avenue and Audit
New York, New York Committee
10017-3140 Member
Date of Birth: 04/23/32
Jeffrey E. Garten Director/ Since Dean of Yale School 41 Director of Aetna,
Box 208200 Trustee, 1998(2) of Management and Inc. (insurance
New Haven, Connecticut Nominating William S. Beinecke company); Director
06520-8200 and Audit Professor in the of Calpine
Committee Practice of Corporation (energy
Date of Birth: 10/29/46 Member International Trade provider); Director
and Finance from of CarMax Group
November 1995 to (used car dealers)
present.
Peter F. Krogh Director/ Since Dean Emeritus and 41 Director of
301 ICC Trustee, 2001 Distinguished Carlisle
Georgetown University Nominating Professor of Companies
Washington, DC 20057 Committee International Incorporated
Chairman and Affairs at the (diversified
Date of Birth: 02/11/37 Audit Edmund A.Walsh manufacturing
Committee School of Foreign company)
Member Service, Georgetown
University from June
1995 to present.
James S. Pasman, Jr. Director/ Since Currently retired 43 Director of
c/o Credit Suisse Asset Trustee, 1999 Education
Management, LLC Nominating Management
466 Lexington Avenue and Audit Corp.
New York, New York Committee
10017-3140 Member
Date of Birth: 12/20/30
</Table>
- ----------
(1) Each Director/Trustee and Officer serves until his or her respective
successor has been duly elected and qualified.
(2) Mr. Garten was initially appointed as a Director/Trustee of Capital
Appreciation, Mid-Cap Growth and Small Cap Growth on February 6, 1998. He
resigned as Director/Trustee on February 3, 2000 and was subsequently
reappointed on December 21, 2000.
68
<Page>
<Table>
<Caption>
NUMBER OF
TERM PORTFOLIOS IN
OF OFFICE(1) FUND
AND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING DIRECTOR/ HELD BY DIRECTOR/
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE TRUSTEE
- ----------------------------- ------------ ------------ -------------------- --------------- -------------------
INDEPENDENT DIRECTORS/
TRUSTEES
Steven N. Rappaport Director/ Since Partner of Lehigh 43 Director of
Lehigh Court, LLC Trustee, 1999 Court, LLC and RZ Presstek, Inc.
40 East 52nd Street Nominating Capital (private (digital imaging
New York, New York Committee investment firms) technologies
10022 Member and from July 2002 to company); Director
Audit present; Transition of Wood Resources,
Date of Birth: 07/10/48 Committee Adviser to SunGard LLC. (plywood
Chairman Securities Finance, manufacturing
Inc. from February company)
2002 to July 2002;
President of SunGard
Securities Finance,
Inc. from 2001 to
February 2002;
President of Loanet,
Inc. (on-line
accounting service)
from 1997 to 2001.
INTERESTED DIRECTORS/
TRUSTEES
Michael E. Kenneally(3) Chairman and Since Chairman and Global 45 None
Credit Suisse Asset Global Chief 2004 Chief Executive
Management, LLC Executive Officer of CSAM
466 Lexington Avenue Officer since 2003; Chairman
New York, New York and Chief Investment
10017-3140 Officer of Banc of
America Capital
Date of Birth: 03/30/54 Management from 1998
to March 2003.
</Table>
- ----------
(3) Mr. Kenneally is a Director/Trustee who is an "interested person" of the
Fund as defined in the 1940 Act, because he is an officer of CSAM.
69
<Page>
<Table>
<Caption>
NUMBER OF
TERM PORTFOLIOS IN
OF OFFICE(1) FUND
AND COMPLEX OTHER
POSITION(S) LENGTH PRINCIPAL OVERSEEN BY DIRECTORSHIPS
NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING DIRECTOR/ HELD BY DIRECTOR/
DATE OF BIRTH FUND SERVED PAST FIVE YEARS TRUSTEE TRUSTEE
- ----------------------------- ------------ ------------ -------------------- --------------- -------------------
INTERESTED DIRECTORS/
TRUSTEES
William W. Priest, Jr.(4) Director/ Since Chief Executive 48 Director of Globe
Epoch Investment Partners Trustee 1999 Officer of J Net Wireless, LLC
667 Madison Avenue Enterprises, Inc. (maritime
New York, NY 10021 (technology holdings communication
company) since June company); Director
Date of Birth: 09/24/41 2004; Chief of InfraRed X
Executive Officer of (medical device
Epoch Investment company); Director
Partners, Inc. since of J Net
April 2004; Enterprises, Inc.
Co-Managing 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 Director/Trustee who is an "interested person" of the Fund
as defined in the 1940 Act, because he provided consulting services to CSAM
within the last two years (ended 12/31/02).
70
<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 and Officer of other Credit Suisse Funds
466 Lexington Avenue Treasurer
New York, New York
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 Legal Since Director and Deputy General Counsel of CSAM
Credit Suisse Asset Officer 2004 since September 2004; Senior Associate of
Management, LLC 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 Directors/Trustees and is available, without charge, upon request, by
calling 800-927-2874.
71
<Page>
CREDIT SUISSE FUNDS
TAX INFORMATION LETTER (UNAUDITED)
October 31, 2004
IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS
For the fiscal year ended October 31, 2004 certain dividends paid by the
Funds 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.
72
<Page>
CREDIT SUISSE FUNDS
PROXY POLICY NOTICE AND PORTFOLIO HOLDINGS INFORMATION
Information regarding how each 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 each Fund uses to determine how to vote proxies
relating to its portfolio securities are available:
- By calling 1-800-927-2874
- On the Funds' website, www.csam.com/us
- On the website of the Securities and Exchange Commission,
http://www.sec.gov.
Each 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 Funds' 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.
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[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. CSGTH-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 $ 46,401 $ 46,401
Audit-Related Fees(1) $ 3,000 $ 4,500
Tax Fees(2) $ 2,323 $ 2,323
All Other Fees -- --
Total $ 51,724 $ 53,224
</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 MANGERS 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.
5
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
CREDIT SUISSE CAPITAL APPRECIATION FUND
/s/ 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