-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IIeQqftVv4cPHSKC4ue/GcXhT8WurvbZMek9uUiSrS0xSnHZe0+/2tsILCnqLd+F VFeZix1Q6+RdmJpekBmGOw== 0000891804-06-001032.txt : 20060308 0000891804-06-001032.hdr.sgml : 20060308 20060308134223 ACCESSION NUMBER: 0000891804-06-001032 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20051231 FILED AS OF DATE: 20060308 DATE AS OF CHANGE: 20060308 EFFECTIVENESS DATE: 20060308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE CASH RESERVE FUND INC CENTRAL INDEX KEY: 0000759433 IRS NUMBER: 000000000 STATE OF INCORPORATION: MD FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-04171 FILM NUMBER: 06672484 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PKWY CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027912919 MAIL ADDRESS: STREET 1: 400 BELLEVUE PKWY STREET 2: 400 BELLEVUE PKWY CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS CASH RESERVE FUND DATE OF NAME CHANGE: 19930507 FORMER COMPANY: FORMER CONFORMED NAME: COUNSELLORS CASH RESERVE FUND INC DATE OF NAME CHANGE: 19920703 0000759433 S000010542 Credit Suisse Cash Reserve Fund Inc C000029087 Common Class CRFXX C000029088 Class A CURXX C000029089 Class B CCBXX C000029090 Class C CRCXX N-CSR 1 file001.txt CREDIT SUISSE CASH RESERVE FUND, INC. 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. 811-04171 --------------------------------------------------------------------- CREDIT SUISSE CASH RESERVE FUND, INC. ------------------------------------------------------------------------ (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 Cash Reserve Fund, Inc. 466 Lexington Avenue New York, New York 10017-3140 Registrant's telephone number, including area code: (212) 875-3500 Date of fiscal year end: December 31st Date of reporting period: January 1, 2005 to December 31, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. CREDIT SUISSE [LOGO] CREDIT SUISSE FUNDS Annual Report December 31, 2005 o CREDIT SUISSE CASH RESERVE FUND The Fund's investment objectives, risks, charges and expenses (which should be considered carefully before investing), and more complete information about the Fund are provided in the PROSPECTUS, which should be read carefully before investing. You may obtain additional copies by calling 800-927-2874 or by writing to Credit Suisse Funds, P.O. Box 55030, Boston, MA 02205-5030. Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466 Lexington Ave., New York, NY 10017-3140. Credit Suisse Funds are advised by Credit Suisse Asset Management, LLC. THE VIEWS OF THE FUND'S MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND FUND HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF DECEMBER 31, 2005; 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 ("CREDIT SUISSE") OR ANY AFFILIATE ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. CREDIT SUISSE CASH RESERVE FUND ANNUAL INVESTMENT ADVISER'S REPORT December 31, 2005 (unaudited) - -------------------------------------------------------------------------------- January 26, 2006 Dear Shareholder: For the Credit Suisse Cash Reserve Fund (the "Fund"), the annualized current yields for the seven-day period ended December 31, 2005 were 3.83% and 3.58% for the Fund's Common Class and Class A shares, respectively, 3.37% for the Fund's Class B Shares and 3.38% for the Fund's Class C shares. 1 The Fund's average weighted maturity as of December 31, 2005 was 21 days, down significantly from 37 days on December 31, 2004. MARKET OVERVIEW: RESILIENT ECONOMY RIDES THROUGH THE STORMS In a year of modest gains for most major indices, conditions for money market vehicles were generally quite favorable. Although economic growth was robust throughout the year, bond markets seemed ever sensitive to the threat of an impending soft patch which, in fact, never materialized. The inflationary impact of higher energy prices was a near-constant cloud over the economy, sapping discretionary income and posing a threat to continued consumer spending. A series of summer storms in the refinery-heavy Gulf Coast only exacerbated oil price pressures while causing a short-term spike in unemployment claims. Then, in the storms' aftermath, when the specter of higher oil prices faded due to warmer-than-expected winter weather, the likelihood of a housing collapse edged to the center of the national radar screen. But despite the periodic threat of a slowdown, economic growth remained resilient and the Federal Reserve ("Fed") resolute in its measured pace of policy tightening, lifting the fed funds rate 200 basis points over the course of the year, to 4.25%. The yield curve flattened and then, at year-end, inverted (the spread between 2 year and 10 year Treasuries narrowed from 115 to -1 basis points) as a global savings glut kept a lid on longer yields while the short end rose. Responding to the Fed tightening, yields on the one month and two month LIBOR rate were both up 199 basis points. STRATEGIC REVIEW: STAYING SHORT AND FOCUSING ON QUALITY Our investment approach during the fiscal year was driven by our conviction that the Fed would continue its gradualist, "measured" pace of policy tightening. Given this view, we kept the portfolio's average duration relatively short. We also focused on corporate notes and asset backed commercial paper in the portfolio, and pursued floating rate securities on an opportunistic basis. 1 CREDIT SUISSE CASH RESERVE FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) - -------------------------------------------------------------------------------- OUTLOOK: AN END TO THE MEASURED PACE It is our view that the Fed will continue its gradualist approach to monetary tightening into 2006, with a tentative plateau for the fed funds rate of 4.75%. At that point, we believe, Fed rate decisions will become more flexible and data-dependent. When this occurs, but not before, we will consider lengthening duration and adjusting the portfolio to exploit any potential steepening in the yield curve. Credit Suisse Asset Management, LLC IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET, INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS. 2 CREDIT SUISSE CASH RESERVE FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) - -------------------------------------------------------------------------------- AVERAGE ANNUAL RETURNS AS OF DECEMBER 31, 2005 1 SINCE INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION DATE ------ ------- -------- --------- --------- Common Class 2.73% 1.87% 3.54% 2.48% 4/16/85 Class A 2.48% -- -- 1.15% 11/30/01 Class B 2.27% -- -- 1.07% 5/1/03 Class C 2.28% -- -- 1.07% 5/1/03 7-DAY ANNUALIZED CURRENT YIELDS AS OF DECEMBER 31, 2005 1 Common Class 3.83% Class A 3.58% Class B 3.37% Class C 3.38% RETURNS REPRESENT PAST PERFORMANCE AND INCLUDE 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. YIELD QUOTATIONS MORE CLOSELY REFLECT THE CURRENT EARNINGS OF THE FUND THAN TOTAL RETURN QUOTATIONS. THE FUND'S YIELD WILL FLUCTUATE. ALTHOUGH THE FUND SEEKS TO MAINTAIN A CONSTANT NET ASSET VALUE OF $1 PER SHARE, THERE CAN BE NO ASSURANCE THAT IT CAN DO SO ON A CONTINUING BASIS AND IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE AT WWW.CREDIT-SUISSE.COM/US. _________________ 1 Returns and yields include waivers of advisory fees and reimbursements of Fund expenses. Declines in interest-rate levels could cause the Fund's earnings to fall below the Fund's expenses, resulting in a negative yield. Credit Suisse has agreed voluntarily to waive fees and reimburse expenses as necessary to maintain a positive yield. This waiver and reimbursement may be changed or terminated at any time. Returns assume reinvestment of dividends. 3 CREDIT SUISSE CASH RESERVE FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) - -------------------------------------------------------------------------------- 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 December 31, 2005. The table illustrates your Fund's expenses in two ways: o 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. o 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 expenses 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. 4 CREDIT SUISSE CASH RESERVE FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) - -------------------------------------------------------------------------------- EXPENSES AND VALUE OF A $1,000 INVESTMENT FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2005 - -------------------------------------------------------------------------------- COMMON ACTUAL FUND RETURN CLASS CLASS A CLASS B CLASS C --------- --------- --------- --------- Beginning Account Value 7/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value 12/31/05 $1,016.40 $1,015.10 $1,014.10 $1,014.10 Expenses Paid per $1,000* $ 2.80 $ 4.06 $ 5.08 $ 5.08 HYPOTHETICAL 5% FUND RETURN Beginning Account Value 7/1/05 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value 12/31/05 $1,022.43 $1,021.17 $1,020.16 $1,020.16 Expenses Paid per $1,000* $ 2.80 $ 4.08 $ 5.09 $ 5.09 COMMON CLASS CLASS A CLASS B CLASS C --------- --------- --------- --------- ANNUALIZED EXPENSE RATIOS* 0.55% 0.80% 1.00% 1.00% __________________ * 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 365. 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. 5 CREDIT SUISSE CASH RESERVE FUND ANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED) December 31, 2005 (unaudited) - -------------------------------------------------------------------------------- CREDIT QUALITY BREAKDOWN* RATINGS S&P - ------------------------------------------------- AA 10.9% A 9.0% A-1 48.9% NR 3.6% ------ Subtotal 72.4% Repurchase Agreement 27.6% ------ Total 100.0% ====== _________________ * Expressed as a percentage of total investments and may vary over time. 6 CREDIT SUISSE CASH RESERVE FUND SCHEDULE OF INVESTMENTS December 31, 2005 - --------------------------------------------------------------------------------
PAR RATINGS+ (000) (S&P/MOODY'S) MATURITY RATE% VALUE ------ ------------- -------- ----- ------------ COMMERCIAL PAPER (52.6%) ASSET BACKED (52.6%) $ 2,000 Atlantis One Funding Corp. (A-1+ , P-1) 01/24/06 4.173 $ 1,994,723 2,000 Beethoven Funding Corp. (A-1 , P-1) 01/27/06 4.290 1,993,847 2,000 Belmont Funding LLC (A-1 , P-1) 01/17/06 4.347 1,996,151 2,000 Beta Finance, Inc. (A-1+ , P-1) 01/12/06 4.185 1,997,464 1,000 Buckingham CDO LLC (A-1+ , P-1) 02/03/06 4.368 996,026 2,000 Compass Securitization, LLC (A-1 , P-1) 01/23/06 4.367 1,994,683 2,000 Davis Square Funding V Ltd. (A-1+ , P-1) 01/27/06 4.341 1,993,774 1,402 Golden Fish LLC (A-1 , P-1) 01/13/06 4.259 1,400,023 1,170 Harwood Street Funding LLC (A-1+ , P-1) 01/03/06 4.241 1,169,726 2,000 Lexington Parker Capital Corp. (A-1 , NR) 01/03/06 4.403 1,999,511 2,071 Liberty Harbour CDO, Inc. (A-1+ , P-1) 01/06/06 4.388 2,069,740 2,000 Mica Funding LLC (A-1 , P-1) 01/03/06 4.363 1,999,516 1,985 Old Line Funding Corp. (A-1+ , P-1) 01/17/06 4.327 1,981,198 2,000 Rhineland Funding Capital Corp. (NR , P-1) 02/21/06 4.388 1,987,703 1,500 Romulus Funding Corp. (A-1 , P-1) 03/16/06 4.480 1,486,341 2,000 White Pine Finance LLC (A-1+ , P-1) 02/01/06 4.234 1,992,784 ------------ TOTAL COMMERCIAL PAPER (COST $29,053,210) 29,053,210 ------------ VARIABLE RATE CORPORATE OBLIGATIONS (19.9%) FINANCE (19.9%) 2,000 Bank of America NA Series BKNT, Notes ## (AA , Aa1) 11/07/06 4.310 2,000,000 2,000 Bank One NA ## (AA- , Aa2) 04/18/06 4.250 2,000,770 1,000 CIT Group, Inc. Series MTN, Global Senior Notes ## (A , A2) 08/31/06 4.556 1,000,907 2,000 Citigroup, Inc. ## (AA- , Aa1) 05/19/06 4.495 2,001,325 2,000 Goldman Sachs Group, Inc. Series MTNB, Notes ## (A+ , Aa3) 08/01/06 4.331 2,001,032 2,000 Merrill Lynch & Company, Inc. ## (A+ , Aa3) 03/17/06 4.547 2,000,344 ------------ TOTAL VARIABLE RATE CORPORATE OBLIGATIONS (COST $11,004,378) 11,004,378 ------------ REPURCHASE AGREEMENT (27.6%) 15,269 Goldman Sachs Group, L.P. (Agreement dated 12/30/05, to be repurchased at $15,270,623, collateralized by $10,785,000 Freddie Mac Note 3.625% due 11/14/08 and $5,164,000 Fannie Mae Note 4.61% due 10/10/13. Market Value of collateral is $15,576,041) (Cost $15,269,000) (A-1+, P-1) 01/03/06 4.150 15,269,000 ------------ TOTAL INVESTMENTS AT VALUE (100.1%) (COST $55,326,588) 55,326,588
See Accompanying Notes to Financial Statements. 7 CREDIT SUISSE CASH RESERVE FUND SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 2005 - -------------------------------------------------------------------------------- VALUE ----------- LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%) $ (50,080) ----------- NET ASSETS (100.0%) $55,276,508 =========== Average Weighted Maturity--21 days (unaudited) - -------------------------------------------------------------------------------- + Credit ratings given by the Standard & Poor's Division of The McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are unaudited. ## The interest rate is as of December 31, 2005 and the maturity date is the later of the next interest readjustment date or the date the principal amount can be recovered through demand. See Accompanying Notes to Financial Statements. 8 CREDIT SUISSE CASH RESERVE FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 2005 - -------------------------------------------------------------------------------- ASSETS Investment at value (Cost $40,057,588) (Note 2) $ 40,057,588 Repurchase agreement at value (Cost $15,269,000) (Note 2) 15,269,000 Cash 831 Interest receivable 59,165 Receivable for fund shares sold 19,822 Prepaid expenses 17,464 ------------- Total Assets 55,423,870 ------------- LIABILITIES Advisory fee payable (Note 2) 5,484 Administrative services fee payable (Note 3) 10,412 Distribution fee payable (Note 3) 1,704 Dividend payable 54,607 Payable for fund shares redeemed 27,761 Other accrued expenses payable 47,394 ------------- Total Liabilities 147,362 ------------- NET ASSETS Capital stock, $0.001 par value (Note 4) 55,333 Paid-in capital (Note 4) 55,527,366 Accumulated net realized loss on investments (306,191) ------------- Net Assets $ 55,276,508 ============= COMMON SHARES Net assets $ 45,532,389 Shares outstanding 45,601,658 ------------- Net asset value, offering price, and redemption price per share $ 1.00 ============= A SHARES Net assets $ 9,542,826 Shares outstanding 9,530,920 ------------- Net asset value, offering price, and redemption price per share $ 1.00 ============= B SHARES Net assets $ 155,193 Shares outstanding 154,821 ------------- Net asset value, offering price, and redemption price per share $ 1.00 ============= C SHARES Net assets $ 46,100 Shares outstanding 45,917 ------------- Net asset value, offering price, and redemption price per share $ 1.00 =============
See Accompanying Notes to Financial Statements. 9 CREDIT SUISSE CASH RESERVE FUND STATEMENT OF OPERATIONS For the Year Ended December 31, 2005 - -------------------------------------------------------------------------------- INTEREST INCOME (Note 2) $ 1,839,141 ------------ EXPENSES Investment advisory fees (Note 3) 199,612 Administrative services fees (Note 3) 107,273 Distribution fees (Note 3) Class A 20,519 Class B 590 Class C 210 Transfer agent fees 61,487 Registration fees 57,602 Printing fees (Note 3) 21,568 Audit and tax fees 20,997 Legal fees 18,271 Directors' fees 16,823 Custodian fees 9,791 Insurance expense 5,896 Miscellaneous expense 10,252 ------------ Total expenses 550,891 Less: fees waived and expenses reimbursed (Note 3) (215,897) ------------ Net expenses 334,994 ------------ Net investment income 1,504,147 ------------ NET REALIZED LOSS FROM INVESTMENTS (4,872) ------------ Net increase in net assets resulting from operations $ 1,499,275 ============ See Accompanying Notes to Financial Statements. 10 CREDIT SUISSE CASH RESERVE FUND STATEMENTS OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
FOR THE YEAR FOR THE YEAR ENDED ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 ----------------- ----------------- FROM OPERATIONS Net investment income $ 1,504,147 $ 606,173 Net realized gain (loss) from investments (4,872) 9,972 ----------------- ----------------- Net increase in net assets resulting from operations 1,499,275 616,145 ----------------- ----------------- FROM DIVIDENDS Dividends from net investment income Common Class shares (1,307,439) (573,411) Class A shares (192,607) (32,199) Class B shares (3,054) (355) Class C shares (1,047) (208) ----------------- ----------------- Net decrease in net assets resulting from dividends (1,504,147) (606,173) ----------------- ----------------- FROM CAPITAL SHARE TRANSACTIONS (Note 4) Proceeds from sale of shares 593,483,592 509,144,643 Exchange value of shares due to merger -- 2,233,209 Reinvestment of dividends 795,011 301,065 Net asset value of shares redeemed (615,175,943) (519,953,759) ----------------- ----------------- Net decrease in net assets from capital share transactions (20,897,340) (8,274,842) ----------------- ----------------- Increase due to capital contribution from advisor (Note 3) 100,000 -- ----------------- ----------------- Net decrease in net assets (20,802,212) (8,264,870) NET ASSETS Beginning of year 76,078,720 84,343,590 ----------------- ----------------- End of year $ 55,276,508 $ 76,078,720 ================= =================
See Accompanying Notes to Financial Statements. 11 CREDIT SUISSE CASH RESERVE FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Year) - --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, ---------------------------------------------------------------------- 2005 2004 2003 2002 2001 ---------- ---------- ---------- ---------- ---------- PER SHARE DATA Net asset value, beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ---------- ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.0270 0.0090 0.0074 0.0125 0.0371 Net loss on investments (both realized and unrealized) (0.0018) -- (0.0014) -- -- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.0252 0.0090 0.0060 0.0125 0.0371 ---------- ---------- ---------- ---------- ---------- LESS DIVIDENDS Dividends from net investment income (0.0270) (0.0090) (0.0072) (0.0125) (0.0371) ---------- ---------- ---------- ---------- ---------- INCREASE DUE TO CAPITAL CONTRIBUTION 0.0018 -- 0.0012 -- -- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF YEAR $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ========== ========== ========== ========== ========== Total return 1 2.73% 0.90% 0.72% 1.25% 3.77% RATIOS AND SUPPLEMENTAL DATA Net assets, end of year (000s omitted) $ 45,532 $ 48,375 $ 82,990 $ 138,095 $ 301,516 Ratio of expenses to average net assets 0.55% 0.50% 0.49% 0.55% 0.55% Ratio of net investment income to average net assets 2.69% 0.87% 0.74% 1.38% 3.85% Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.38% 0.44% 0.30% 0.14% 0.11%
- -------------------------------------------------------------------------------- 1 Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the years shown, total returns would have been lower. Total returns for periods less than one year are not annualized. See Accompanying Notes to Financial Statements. 12 CREDIT SUISSE CASH RESERVE FUND FINANCIAL HIGHLIGHTS (For a Class A Share of the Fund Outstanding Throughout Each Period) - --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, ---------------------------------------------------------------------- 2005 2004 2003 2002 2001 1 ---------- ---------- ---------- ---------- ---------- PER SHARE DATA Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ---------- ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.0245 0.0065 0.0050 0.0100 0.0011 Net loss on investments (both realized and unrealized) (0.0015) -- (0.0019) -- -- ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.0230 0.0065 0.0031 0.0100 0.0011 ---------- ---------- ---------- ---------- ---------- LESS DIVIDENDS Dividends from net investment income (0.0245) (0.0065) (0.0047) (0.0100) (0.0011) ---------- ---------- ---------- ---------- ---------- INCREASE DUE TO CAPITAL CONTRIBUTION 0.0015 -- 0.0016 -- -- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ========== ========== ========== ========== ========== Total return 2 2.48% 0.65% 0.47% 1.01% 0.11% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 9,543 $ 27,560 $ 1,247 $ 1,676 $ 1 Ratio of expenses to average net assets 0.80% 0.75% 0.74% 0.80% 0.80% 3 Ratio of net investment income to average net assets 2.44% 0.62% 0.49% 1.01% 1.43% 3 Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.38% 0.44% 0.30% 0.19% 0.37% 3
- -------------------------------------------------------------------------------- 1 For the period November 30, 2001 (inception date) through December 31, 2001. 2 Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. 3 Annualized. See Accompanying Notes to Financial Statements. 13 CREDIT SUISSE CASH RESERVE FUND FINANCIAL HIGHLIGHTS (For a Class B Share of the Fund Outstanding Throughout Each Period) - --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, ---------------------------------------- 2005 2004 2003 1 ---------- ---------- ---------- PER SHARE DATA Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000 ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.0225 0.0045 0.0016 Net loss on investments (both realized and unrealized) (0.0019) -- (0.0022) ---------- ---------- ---------- Total from investment operations 0.0206 0.0045 (0.0006) ---------- ---------- ---------- LESS DIVIDENDS Dividends from net investment income (0.0225) (0.0045) (0.0015) ---------- ---------- ---------- INCREASE DUE TO CAPITAL CONTRIBUTION 0.0019 -- 0.0021 ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 1.0000 $ 1.0000 $ 1.0000 ========== ========== ========== Total return 2 2.27% 0.45% 0.15% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 155 $ 98 $ 60 Ratio of expenses to average net assets 1.00% 0.95% 0.94% 3 Ratio of net investment income to average net assets 2.24% 0.42% 0.24% 3 Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.38% 0.44% 0.40% 3
- -------------------------------------------------------------------------------- 1 For the period May 1, 2003 (inception date) through December 31, 2003. 2 Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. 3 Annualized. See Accompanying Notes to Financial Statements. 14 CREDIT SUISSE CASH RESERVE FUND FINANCIAL HIGHLIGHTS (For a Class C Share of the Fund Outstanding Throughout Each Period) - --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, ---------------------------------------- 2005 2004 2003 1 ---------- ---------- ---------- PER SHARE DATA Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000 ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment income 0.0225 0.0045 0.0016 Net loss on investments (both realized and unrealized) (0.0017) -- (0.0022) ---------- ---------- ---------- Total from investment operations 0.0208 0.0045 (0.00060) ---------- ---------- ---------- LESS DIVIDENDS Dividends from net investment income (0.0225) (0.0045) (0.0015) ---------- ---------- ---------- INCREASE DUE TO CAPITAL CONTRIBUTION 0.0017 -- 0.0021 ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 1.0000 $ 1.0000 $ 1.0000 ========== ========== ========== Total return 2 2.28% 0.45% 0.15% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 46 $ 46 $ 46 Ratio of expenses to average net assets 1.00% 0.95% 0.94% 3 Ratio of net investment income to average net assets 2.24% 0.42% 0.24% 3 Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.38% 0.44% 0.40% 3
- -------------------------------------------------------------------------------- 1 For the period May 1, 2003 (inception date) through December 31, 2003. 2 Total returns are historical and assume changes in share price and reinvestment of all dividends and distributions. Had certain expenses not been reduced during the periods shown, total returns would have been lower. Total returns for periods less than one year are not annualized. 3 Annualized. See Accompanying Notes to Financial Statements. 15 CREDIT SUISSE CASH RESERVE FUND NOTES TO FINANCIAL STATEMENTS December 31, 2005 - -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION The Credit Suisse Cash Reserve Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Fund was incorporated under the laws of the state of Maryland on November 15, 1984. The investment objective of the Fund is to provide investors with high current income consistent with liquidity and stability of principal. The Fund offers four classes of shares: Common Class, Class A shares, Class B shares and Class C shares. Each class of shares in the Fund represents an equal pro rata interest in the Fund, except that it bears different expenses, which reflect the difference in the range of services provided to it. It is the policy of the Fund to maintain a stable net asset value of $1.00 per share. The Fund has adopted certain investment, fund valuation, dividend and distribution policies to enable it to do so. There is no assurance, however, that the Fund will be able to maintain a stable net asset value of $1.00 per share. Effective as of the close of business on September 24, 2004, the Fund acquired all of the net assets of Credit Suisse U.S. Government Money Fund ("U.S. Government Money") in a tax-free exchange of shares. The Fund is also the accounting survivor in the tax-free exchange. The shares exchanged were 2,233,209 Class A shares (valued at $2,233,209) of the Fund for 2,233,209 Class A shares of U.S. Government Money. U.S. Government Money's net assets of $2,233,209 at that date were combined with those of the Fund. The aggregate net assets of U.S. Government Money and the Fund immediately before the acquisition were $2,233,209 and $74,430,336, respectively, and the combined net assets of the Fund after the acquisition were $76,663,545. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES A) SECURITY VALUATION -- The net asset value of the Fund is determined at 12:00 noon eastern time and at the close of regular trading on the New York Stock Exchange, Inc. on Monday through Friday, except for the days the following holidays are observed: New Year's Day, Martin Luther King Jr.'s Birthday, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans' Day, Thanksgiving Day and Christmas Day. The Fund's investments are valued under the amortized cost method, which has been determined by the Fund's Board of Directors to represent the fair value of the Fund's investments. Amortized cost involves valuing a Fund's 16 CREDIT SUISSE CASH RESERVE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 - -------------------------------------------------------------------------------- NOTE 2. SIGNIFICANT ACCOUNTING POLICIES holding initially at its cost and then assuming a constant amortization to maturity of any discount or premium. The amortized cost method ignores any impact of fluctuating interest rates. The Board of Directors has established procedures intended to stabilize the Fund's net asset value for purposes of sales and redemption at $1.00 per share. These procedures include review by the Board of Directors, at such intervals as it deems appropriate, to determine the extent, if any, to which the Fund's net asset value per share calculated by using available market quotations deviates from $1.00 per share. In the event such deviation exceeds 1/2 of 1%, the Board of Directors will promptly consider what action, if any, should be initiated. B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. Income, expenses (excluding class-specific expenses) and realized/unrealized gains/losses are allocated proportionately to each class of shares based upon the relative net asset value of outstanding shares of that class. C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income are declared daily and paid monthly. Distributions of net realized capital gains, if any, are generally declared and paid annually, although the Fund may declare and pay short-term capital gains, if any, periodically as the Board of Directors determines. However, to the extent that a net realized capital gain can be reduced by a capital loss carryover, such gain will not be distributed. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America ("GAAP"). D) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is the Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, and to make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes. 17 CREDIT SUISSE CASH RESERVE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 - -------------------------------------------------------------------------------- NOTE 2. SIGNIFICANT ACCOUNTING POLICIES E) REPURCHASE AGREEMENTS -- The Fund may enter into repurchase agreements. Under the terms of a typical repurchase agreement, the Fund acquires a security subject to an obligation of the seller to repurchase the security. Securities pledged as collateral for repurchase agreements are held by the Fund's broker until the agreements mature. The agreement requires that the market value of the collateral be sufficient to cover payment of interest and principal; however, in the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. 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 those estimates. NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Credit Suisse Asset Management, LLC ("Credit Suisse"), an indirect, wholly-owned subsidiary of Credit Suisse Group, serves as investment adviser for the Fund. For its investment advisory services, Credit Suisse is entitled to receive a fee from the Fund at an annual rate of 0.35% of the average daily net assets. For the year ended December 31, 2005, investment advisory fees earned, voluntarily waived and expenses reimbursed were $199,612, $199,612 and $16,285 respectively. Credit Suisse will not recapture from the Fund any fees it waived during the fiscal year ended December 31, 2005. Fee waivers and reimbursements are voluntary and may be discontinued by Credit Suisse at any time. During the year ended December 31, 2005, Credit Suisse voluntarily contributed capital to the Fund in the amount of $100,000 to offset the effect of accumulated realized losses in prior years in the Fund. Credit Suisse received no shares of common stock in exchange for this contribution, which increased the net asset value of the Fund. For tax purposes, this capital contribution will be applied against realized losses for the year. Such amount has been recorded as additional paid-in capital in the Statement of Assets and Liabilities. Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of Credit Suisse, and State Street Bank and Trust Company ("SSB") serve as co-administrators to the Fund. 18 CREDIT SUISSE CASH RESERVE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 - -------------------------------------------------------------------------------- NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES For its co-administrative services, CSAMSI currently receives a fee calculated at an annual rate of 0.10% of the Fund's average daily net assets. For the year ended December 31, 2005, co-administrative services fees earned by CSAMSI was $57,032. For its co-administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, 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. For the year ended December 31, 2005, co-administrative services fees earned by SSB (including out-of-pocket fees) were $50,241. In addition to serving as the Fund's co-administrator, CSAMSI serves as distributor of the Fund's shares. Pursuant to a distribution plan adopted by the Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives a fee for its distribution services. This fee is calculated at an annual rate of 0.25% of the average daily net assets of the Class A shares of the Fund. The maximum amount payable by the Class B shares and Class C shares of the Fund is 0.75% of their average daily net assets. For the year ended December 31, 2005, Class B shares and Class C shares of the Fund paid these fees at the annual rate of 0.45% of its average net assets. Common Class shares of the Fund do not bear distribution expenses. CSAMSI may use this fee to compensate service organizations for distribution services. Merrill Corporation ("Merrill"), an affiliate of Credit Suisse, has been engaged by the Fund to provide certain financial printing and fulfillment services. For the year ended December 31, 2005, Merrill was paid $5,338 for its services to the Fund. NOTE 4. CAPITAL SHARE TRANSACTIONS The Fund is authorized to issue six billion full and fractional shares of capital stock, $0.001 par value per share, of which one billion shares are classified as Common Class shares, one billion shares are classified as Class A shares, one billion shares are classified as Class B shares and one billion shares are classified as Class C shares. Transactions in shares of the Fund were as follows: 19 CREDIT SUISSE CASH RESERVE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 - -------------------------------------------------------------------------------- NOTE 4. CAPITAL SHARE TRANSACTIONS
COMMON CLASS ---------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 502,140,000 $ 502,140,000 460,304,372 $ 460,304,372 Shares issued in reinvestment of dividends 605,193 605,193 270,399 270,399 Shares redeemed (505,671,229) (505,671,229) (495,200,023) (495,200,023) ------------- ------------- ------------- ------------- Net decrease (2,926,036) $ (2,926,036) (34,625,252) $ (34,625,252) ============= ============= ============= ============= CLASS A ---------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 91,222,914 $ 91,222,914 48,747,987 $ 48,787,987 Shares exchanged due to merger -- -- 2,233,209 2,233,209 Shares issued in reinvestment of dividends 187,825 187,825 30,523 30,523 Shares redeemed (109,439,360) (109,439,360) (24,698,611) (24,698,611) ------------- ------------- ------------- ------------- Net increase (decrease) (18,028,621) $ (18,028,621) 26,313,108 $ 26,313,108 ============= ============= ============= ============= CLASS B ---------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 115,678 $ 115,678 92,284 $ 92,284 Shares issued in reinvestment of dividends 1,983 1,983 143 143 Shares redeemed (60,344) (60,344) (55,125) (55,125) ------------- ------------- ------------- ------------- Net increase 57,317 $ 57,317 37,302 $ 37,302 ============= ============= ============= ============= CLASS C ---------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2005 DECEMBER 31, 2004 ---------------------------------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 5,000 $ 5,000 -- $ -- Shares issued in reinvestment of dividends 10 10 -- -- Shares redeemed (5,010) (5,010) -- $ -- ------------- ------------- ------------- ------------- Net -- $ -- -- $ -- ============= ============= ============= =============
20 CREDIT SUISSE CASH RESERVE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 - -------------------------------------------------------------------------------- NOTE 4. CAPITAL SHARE TRANSACTIONS On December 31, 2005, the number of shareholders that held 5% or more of the outstanding shares of each class of the Fund was as follows: NUMBER OF APPROXIMATE PERCENTAGE SHAREHOLDERS OF OUTSTANDING SHARES ------------ ---------------------- Common Class 2 51% Class A 1 74% Class B 4 94% Class C 1 100% Some of the shareholders are omnibus accounts, which hold shares on behalf of individual shareholders. NOTE 5. FEDERAL INCOME TAXES Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. The tax characteristics of dividends paid during the years ended December 31, 2005 and 2004, respectively, by the Fund were as follows: ORDINARY INCOME --------------------------- 2005 2004 ------------ ----------- $ 1,504,147 $ 606,173 At December 31, 2005, the components of distributable earnings on a tax basis for the Fund were as follows: Accumulated net realized loss $ (306,191) ========== At December 31, 2005, the Fund had capital loss carryforwards available to offset possible future capital gains as follows: EXPIRES DECEMBER 31, ------------------------------ 2007 2010 2013 -------- -------- -------- $54,853 $246,466 $4,872 It is uncertain that the Fund will realize the full benefit of these losses prior to expiration. At December 31, 2005, the identified cost for federal income tax purposes was $55,326,588. 21 CREDIT SUISSE CASH RESERVE FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2005 - -------------------------------------------------------------------------------- NOTE 6. CONTINGENCIES In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote. 22 CREDIT SUISSE CASH RESERVE FUND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- To the Board of Directors and Shareholders of Credit Suisse Cash Reserve Fund, Inc.: In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Credit Suisse Cash Reserve Fund, Inc. (the "Fund") at December 31, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the years (or periods) presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2005 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Baltimore, Maryland February 6, 2006 23 CREDIT SUISSE CASH RESERVE FUND BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) - -------------------------------------------------------------------------------- In approving the Advisory Agreement, the Board of Directors, including the Independent Directors, considered the following factors with respect to the Cash Reserve Fund (the "Fund"): INVESTMENT ADVISORY FEE RATES The Board reviewed and considered the contractual advisory fee rate of 0.35% ("Contractual Advisory Fee") for the Fund in light of the extent and quality of the advisory services provided by Credit Suisse Asset Management, LLC ("Credit Suisse") ("Contractual Advisory Fee"), noting that Credit Suisse had waived the entire advisory fee ("Net Advisory Fee"). The Board acknowledged that voluntary fee waivers and expense reimbursements can be discontinued at any time. Additionally, the Board received and considered information comparing the Fund's Contractual Advisory Fee and the Fund's overall expenses with those of funds in both the relevant expense group ("Expense Group") and universe of funds (the "Expense Universe") provided by Lipper Inc., an independent provider of investment company data. NATURE, EXTENT AND QUALITY OF THE SERVICES UNDER THE ADVISORY AGREEMENT The Board received and considered information regarding the nature, extent and quality of services provided to the Fund by Credit Suisse under the Advisory Agreement. The Board also noted information received at regular meetings throughout the year related to the services rendered by Credit Suisse. The Board reviewed background information about Credit Suisse, including its Form ADV. The Board considered the background and experience of Credit Suisse's senior management and the expertise of, and the amount of attention given to the Fund by, senior personnel of Credit Suisse. In addition, the Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day portfolio management of the Fund and the extent of the resources devoted to research and analysis of actual and potential investments. The Board also received and considered information about the nature, extent and quality of services and fee rates offered to other Credit Suisse clients for comparable services. FUND PERFORMANCE The Board received and considered the one-, two-, three-, four-, five- and ten-year performance of the Fund, along with comparisons, for all presented periods, both to the relevant performance group ("Performance Group") and 24 CREDIT SUISSE CASH RESERVE FUND BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- universe of funds ("Performance Universe") for the Fund. The Board was provided with a description of the methodology used to arrive at the data for the funds included in the Performance Group and the Performance Universe. The Board reviewed information comparing the performance of various Credit Suisse Funds to performance benchmarks that the Board had previously established and progress that had been made in certain instances toward achieving those benchmarks. The Board also reviewed comparisons between the Fund and its identified benchmark over various time periods. CREDIT SUISSE PROFITABILITY The Board received and considered a profitability analysis of Credit Suisse based on the fees payable under the Advisory Agreement for the Fund, including other relationships between the Fund on the one hand and Credit Suisse affiliates on the other. The Board received profitability information for the other funds in the Credit Suisse family of funds. ECONOMIES OF SCALE The Board considered whether economies of scale in the provision of services to the Fund were being passed along to the shareholders. Accordingly, the Board considered whether alternative fee structures (such as breakpoint fee structures) would be more appropriate or reasonable taking into consideration economies of scale or other efficiencies that might accrue from increases in the Fund's asset levels. OTHER BENEFITS TO CREDIT SUISSE The Board considered other benefits received by Credit Suisse and its affiliates as a result of their relationship with the Fund. Such benefits include, among others, research arrangements with brokers who execute transactions on behalf of the Fund, administrative and brokerage relationships with affiliates of Credit Suisse and benefits potentially derived from an increase in Credit Suisse's businesses as a result of its relationship with the Fund (such as the ability to market to shareholders other financial products offered by Credit Suisse and its affiliates). The Board reviewed Credit Suisse's method for allocating investment opportunities among the Fund and other advisory clients. 25 CREDIT SUISSE CASH RESERVE FUND BOARD APPROVAL OF ADVISORY AGREEMENT (UNAUDITED) (CONTINUED) - -------------------------------------------------------------------------------- CONCLUSIONS In selecting Credit Suisse, and approving the Advisory Agreement and the investment advisory fee under such agreement, the Board concluded that: o Since the Contractual Advisory Fee was below the median of the Fund's Expense Group and Credit Suisse had waived its entire advisory fee, the fee was considered reasonable. o The Fund's performance for each period was above the median for the Performance Group and Performance Universe, ranking in the first quintile in the Performance Universe for the two-, three-, four- and five-year periods. o The Board was satisfied with the nature, extent and quality of the investment advisory services provided to the Fund by Credit Suisse and that, based on dialogue with management and counsel, the services provided by Credit Suisse under the Advisory Agreement are typical of, and consistent with, those provided to similar mutual funds by other investment advisers. o In light of the costs of providing investment management and other services to the Fund and Credit Suisse's ongoing commitment to the Fund, the profits and other ancillary benefits that Credit Suisse and its affiliates received were considered reasonable. o Credit Suisse's profitability based on fees payable under the Advisory Agreement was reasonable in light of the nature, extent and quality of the services provided to the Fund thereunder. o In light of the Fund's relatively small size and the amount of the Net Advisory Fee, the Fund's current fee structure (without breakpoints) was considered reasonable. No single factor reviewed by the Board was identified by the Board as the principal factor in determining whether to approve the Advisory Agreement. The Independent Directors were advised by separate independent legal counsel throughout the process. 26 CREDIT SUISSE CASH RESERVE FUND INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED) - --------------------------------------------------------------------------------
TERM NUMBER OF OF OFFICE 1 PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR - ------------------------- ------------- ----------- ---------------------------- ------------- ----------------------- INDEPENDENT DIRECTORS Enrique Arzac Director, Since Professor of Finance 47 Director of The Adams c/o Credit Suisse Asset Nominating 2005 and Economics, Express (a closed-end Management, LLC Committee Graduate School of investment company); Attn: General Counsel Member Business, Columbia Director of Petroleum 466 Lexington Avenue and Audit University since 1971 and Resources New York, New York Committee Corporation (a closed- 10017-3140 Chairman end investment company) Date of Birth: 10/02/41 Richard H. Francis Director, Since Currently retired 41 None c/o Credit Suisse Asset Nominating 1999 Management, LLC and Audit Attn: General Counsel Committee 466 Lexington Avenue Member New York, New York 10017-3140 Date of Birth: 04/23/32 Jeffrey E. Garten Director, Since The Juan Trippe 40 Director of Aetna, Inc. Box 208200 Nominating 1998 2 Professor in the (insurance company); New Haven, Connecticut and Audit Practice of International Director of CarMax 06520-8200 Committee Trade, Finance and Group (used car Member Business from July 2005 dealers) Date 10/29/46 to present; Partner and Chairman of Garten Rothkopf (consulting firm) from October 2005 to present; Dean of Yale School of Management from November 1995 to June 2005 Peter F. Krogh Director, Since Dean Emeritus and 40 Director of Carlisle 301 ICC Nominating 2001 Distinguished Professor Companies Georgetown University and Audit of International Affairs Incorporated Washington, DC 20057 Committee at the Edmund A. Walsh (diversified Member School of Foreign Service, manufacturing Date of Birth: 02/11/37 Georgetown University company) from June 1995 to present
_____________________ 1 Each Director and Officer serves until his or her respective successor has been duly elected and qualified. 2 Mr. Garten was initially appointed as Director of the Fund on February 6, 1998. He resigned as Director on February 3, 2000, and was subsequently re-appointed on December 21, 2000.sss 27 CREDIT SUISSE CASH RESERVE FUND INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED) (CONTINUED) - --------------------------------------------------------------------------------
TERM NUMBER OF OF OFFICE 1 PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER NAME, ADDRESS AND HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS DATE OF BIRTH FUND SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR - ------------------------- ------------- ----------- ---------------------------- ------------- ----------------------- INDEPENDENT DIRECTORS James S. Pasman, Jr. Director, Since Currently retired 42 Director of Education c/o Credit Suisse Asset Nominating 1999 Management Corp. Management, LLC and Audit Attn: General Counsel Committee 466 Lexington Avenue Member New York, New York 10017-3140 Date of Birth: 12/20/30 Steven N. Rappaport Chairman Director Partner of Lehigh Court, 46 Director of Presstek, Lehigh Court, LLC of the Board Since LLC and RZ Capital Inc. (digital imaging 40 East 52nd Street of Directors, 1999 (private investment firms) technologies New York, New York Nominating and from July 2002 to present; company); Director of 10022 Committee Chairman Transition Adviser to Wood Resources, LLC. Chairman since SunGard Securities Finance, (plywood Date of Birth: 07/10/48 and Audit 2005 Inc. from February 2002 manufacturing Committee to July 2002; President of company) Member SunGard Securities Finance, Inc. from 2001 to February 2002; President of Loanet, Inc. (on-line accounting service) from 1977 to 2001 INTERESTED DIRECTOR Michael E. Kenneally 3,4 Director Since Chairman and Global 40 None c/o Credit Suisse Asset 2004 Chief Executive Officer Management, LLC of Credit Suisse from 466 Lexington Avenue March 2003 to July 2005; New York, New York Chairman and Chief 10017-3140 Investment Officer of Banc of America Capital Date of Birth: 03/30/54 Management from 1998 to March 2003
_____________________ 3 Mr. Kenneally is a Director who is an "interested person" of the Fund as defined in the 1940 Act, because he was an officer of Credit Suisse within the last two fiscal years. 4 Effective July 31, 2005, Steven B. Plump was appointed as Chief Executive Officer and President of the Fund. Mr. Kenneally, who previously held these positions, resigned effective July 31, 2005. 28 CREDIT SUISSE CASH RESERVE FUND INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED) (CONTINUED) - --------------------------------------------------------------------------------
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 Steven B. Plump 4 Chief Since Managing Director; Associated with Credit Suisse or its c/o Credit Suisse Asset Executive 2005 predecessor since 1995; Officer of other Credit Suisse Funds Management, LLC Officer and 466 Lexington Avenue President New York, New York 10017-3140 Date of Birth: 02/08/59 Michael A. Pignataro Chief Since Director and Director of Fund Administration of Credit Suisse; Credit Suisse Asset Financial 1999 Associated with Credit Suisse or its predecessors 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 Director and Global Head of Compliance of Credit Suisse; Credit Suisse Asset Compliance 2004 Associated with Credit Suisse since July 2000; Vice President Management, LLC Officer and Director of Compliance of Forstmann-Leff 466 Lexington Avenue Associates from 1998 to June 2000; Officer of other New York, New York Credit Suisse Funds 10017-3140 Date of Birth: 09/21/66 Ajay Mehra Chief Since Director and Head of Legal Americas Traditional Asset Credit Suisse Asset Legal 2004 Management and Hedge Funds; Associated with Credit Suisse Management, LLC Officer since September 2004; Senior Associate of Shearman & 466 Lexington Avenue Sterling LLP from September 2000 to September 2004; Senior New York, New York Counsel of the SEC Division of Investment Management from 10017-3140 June 1997 to September 2000; Officer of other Credit Suisse Funds Date of Birth: 08/14/70 J. Kevin Gao Vice Since Director and Legal Counsel of Credit Suisse; Associated with Credit Suisse Asset President 2004 Credit Suisse since July 2003; Associated with the law firm of Management, LLC and Willkie Farr & Gallagher LLP from 1998 to 2003; Officer of 466 Lexington Avenue Secretary other Credit Suisse Funds New York, New York 10017-3140 Date of Birth: 10/13/67 Robert Rizza Assistant Since Vice President of Credit Suisse; Associated with Credit Suisse Credit Suisse Asset Treasurer 2002 since 1998; Officer of other Credit Suisse Funds Management, LLC 466 Lexington Avenue New York, New York 10017-3140 Date of Birth: 12/09/65
________________________ 4 Effective July 31, 2005, Steven B. Plump was appointed as Chief Executive Officer and President of the Fund. Mr. Kenneally, who previously held these positions, resigned effective July 31, 2005. The Statement of Additional Information includes additional information about the Directors and is available, without charge, upon request, by calling 800-927-2874. 29 CREDIT SUISSE CASH RESERVE FUND PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION - -------------------------------------------------------------------------------- Information regarding how the Fund voted proxies related to its portfolio securities during the 12-month period ended June 30 of each year, as well as the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available: o By calling 1-800-927-2874 o On the Portfolio's website, www.credit-suisse.com/us o On the website of the Securities and Exchange Commission, http://www.sec.gov. The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. 30 This page intentionally left blank 31 This page intentionally left blank 32 CREDIT SUISSE [LOGO] P.O. BOX 55030, BOSTON, MA 02205-5030 800-927-2874 o www.credit-suisse.com/us CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. CR-AR-1205 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 December 31, 2005. There were no waivers or implicit waivers from the code granted by the registrant during the fiscal year ended December 31, 2005. 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: Enrique R. Arzac, Richard H. Francis 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 December 31, 2004 and December 31, 2005.
- ---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 - ---------------------------------------- -------------------------------------- -------------------------------------- Audit Fees $16,463 $15,636 - ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees(1) $4,500 $3,150 - ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees(2) $2,327 $2,443 - ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees -- -- - ---------------------------------------- -------------------------------------- -------------------------------------- Total $23,290 $21,229 - ---------------------------------------- -------------------------------------- --------------------------------------
(1) Services include agreed-upon procedures in connection with the registrant's third quarter 2004 Form N-Q filing ($1,500) and the registrant's semi-annual financial statements ($3,000 for 2004 and $3,150 for 2005). (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 ("Credit Suisse"), and any service provider to the registrant controlling, controlled by or under common control with Credit Suisse that provided ongoing services to the registrant ("Covered Services Provider"), for the registrant's fiscal years ended December 31, 2004 and December 31, 2005.
- ---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 - ---------------------------------------- -------------------------------------- -------------------------------------- Audit-Related Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- Tax Fees N/A N/A - ---------------------------------------- -------------------------------------- -------------------------------------- All Other Fees N/A $394,000 - ---------------------------------------- -------------------------------------- -------------------------------------- Total N/A $394,000 - ---------------------------------------- -------------------------------------- --------------------------------------
(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 Credit Suisse 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 Credit Suisse 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, Credit Suisse 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:
- ---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 - ---------------------------------------- -------------------------------------- -------------------------------------- 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 - ---------------------------------------- -------------------------------------- --------------------------------------
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 Credit Suisse 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 December 31, 2004 and December 31, 2005:
- ---------------------------------------- -------------------------------------- -------------------------------------- 2004 2005 - ---------------------------------------- -------------------------------------- -------------------------------------- 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 - ---------------------------------------- -------------------------------------- --------------------------------------
(f) Not Applicable. (g) The aggregate fees billed by PwC for non-audit services rendered to the registrant, Credit Suisse and Covered Service Providers for the fiscal years ended December 31, 2004 and December 31, 2005 were $6,827 and $5,593, 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. Included as part of the report to shareholders filed under Item 1 of this Form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Form N-CSR disclosure requirement is not applicable to the registrant. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Form N-CSR disclosure requirement is not applicable to the registrant. 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. None 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. 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 CASH RESERVE FUND, INC. /s/ Steven B. Plump ------------------- Name: Steven B. Plump Title: Chief Executive Officer Date: March 8, 2006 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/ Steven B. Plump ------------------- Name: Steven B. Plump Title: Chief Executive Officer Date: March 8, 2006 /s/ Michael A. Pignataro ------------------------ Name: Michael A. Pignataro Title: Chief Financial Officer Date: March 8, 2006 EX-99.CODE ETH 2 file002.txt CODE OF ETHICS EX-99.CODE ETHICS EXHIBIT 12(a)(1) CODE OF ETHICS CREDIT SUISSE FUNDS CREDIT SUISSE INSTITUTIONAL FUNDS CREDIT SUISSE CLOSED-END FUNDS CODE OF ETHICS FOR SENIOR OFFICERS Preamble Section 406 of the Sarbanes-Oxley Act of 2002 directs that rules be adopted disclosing whether a company has a code of ethics for senior financial officers. The Securities and Exchange Commission (the "SEC") has adopted rules requiring annual disclosure of an investment company's code of ethics applicable to the company's principal executive as well as principal financial officers, if such a code has been adopted. In response, the above Funds (each a "Fund", and together the "Funds") have adopted this Code of Ethics. Statement of Policy It is the obligation of the senior officers of the Funds to provide full, fair, timely and comprehensible disclosure--financial and otherwise--to Fund shareholders, regulatory authorities and the general public. In fulfilling that obligation, senior officers must act ethically, honestly and diligently. This Code is intended to enunciate guidelines to be followed by persons who serve the Funds in senior officerships. No Code can address every situation that a senior officer might face; however, as a guiding principle, senior officers should strive to implement the spirit as well as the letter of applicable laws, rules and regulations, and to provide the type of clear and complete disclosure and information Fund shareholders have a right to expect. The purpose of this Code of Ethics is to promote high standards of ethical conduct by Covered Persons (as defined below) in their capacities as officers of the Funds, to instruct them as to what is considered to be inappropriate and unacceptable conduct or activities for officers and to prohibit such conduct or activities. This Code supplements other policies that the Funds and their adviser have adopted or may adopt in the future with which Fund officers are also required to comply (e.g., code of ethics relating to personal trading and conduct). Covered Persons This Code of Ethics applies to those persons appointed by the Fund's Board of Directors as Chief Executive Officer, President, Chief Financial Officer and Chief Accounting Officer, or persons performing similar functions. It is recognized that each of such persons currently is a full-time employee of Credit Suisse Asset Management LLC ("CSAM"), each Fund's investment adviser. Promotion of Honest and Ethical Conduct In serving as an officer of the Funds, each Covered Person must maintain high standards of honesty and ethical conduct and must encourage his colleagues who provide services to the Funds, whether directly or indirectly, to do the same. Each Covered Person understands that as an officer of a Fund, he has a duty to act in the best interests of the Fund and its shareholders. The interests of other CSAM clients or CSAM itself or the Covered Person's personal interests should not be allowed to compromise the Covered Person's fulfilling his duties as an officer of the Fund. The governing Boards of the Funds recognize that the Covered Persons are also officers or employees of CSAM. Furthermore, the governing Boards of the Funds recognize that, subject to the Covered Person's fiduciary duties to the Funds, the Covered Persons will in the normal course of their duties (whether formally for the Funds or for CSAM, or for both) be involved in establishing policies and implementing decisions that will have different effects on CSAM and the Funds. The governing Boards of the Funds recognize that the participation of the Covered Persons in such activities is inherent in the contractual relationship between the Funds and CSAM and/or its affiliates, and is consistent with the expectation of the governing Boards of the performance by the Covered Persons of their duties as officers of the Funds. If a Covered Person believes that his responsibilities as an officer or employee of CSAM are likely to materially compromise his objectivity or his ability to perform the duties of his role as an officer of the Funds, he should consult with CSAM's general counsel, the Funds' chief legal officer or outside counsel, or counsel to the independent Directors/Trustees of the relevant Fund or Funds. Under appropriate circumstances, a Covered Person should also consider whether to present the matter to the Directors/Trustees of the relevant Fund or Funds or a committee thereof. No Covered Person shall suggest that any person providing, or soliciting to be retained to provide, services to a Fund give a gift or an economic benefit of any kind to him in connection with the person's retention or the provision of services. Promotion of Full, Fair, Accurate, Timely and Understandable Disclosure No Covered Person shall create or further the creation of false or misleading information in any SEC filing or report to Fund shareholders. No Covered Person shall conceal or fail to disclose information within the Covered Person's possession legally required to be disclosed or necessary to make the disclosure made not misleading. If a Covered Person shall become aware that information filed with the SEC or made available to the public contains any false or misleading information or omits to disclose necessary information, he shall promptly report it to CSAM's general counsel or Fund counsel, who shall advise such Covered Person whether corrective action is necessary or appropriate. Each Covered Person, consistent with his responsibilities, shall exercise appropriate supervision over, and shall assist, relevant Fund service providers in developing financial information and other disclosure that complies with relevant law and presents information in a clear, comprehensible and complete manner. Each Covered Person shall use his best efforts within his area of expertise to assure that Fund reports reveal, rather than conceal, the relevant Fund's financial condition. Each Covered Person shall seek to obtain additional resources if he believes that available resources are inadequate to enable the Funds to provide full, fair and accurate financial information and other disclosure to regulators and Fund shareholders. Each Covered Person shall inquire of other Fund officers and service providers, as appropriate, to assure that information provided is accurate and complete and presented in an understandable format using comprehensible language. Each Covered Person shall diligently perform his services to the Funds, so that information can be gathered and assessed early enough to facilitate timely filings and issuance of reports and required certifications. Promotion of Compliance with Applicable Government Laws, Rules and Regulations Each Covered Person shall become and remain knowledgeable concerning the laws and regulations relating to the Funds and their operations and shall act with competence and due care in serving as an officer of the Funds. Each Covered Person with specific responsibility for financial statement disclosure will become and remain knowledgeable concerning relevant auditing standards, generally accepted accounting principles, FASB pronouncements and other accounting and tax literature and developments. Each Covered Person shall devote sufficient time to fulfilling his responsibilities to the Funds, recognizing that he will devote substantial time to providing services to other CSAM clients and will perform other activities as an employee of CSAM. Each Covered Person shall cooperate with a Fund's independent auditors, regulatory agencies and internal auditors in their review or inspection of the Fund and its operations. No Covered Person shall knowingly violate any law or regulation relating to the Funds or their operations or seek to illegally circumvent any such law or regulation. No Covered Person shall engage in any conduct involving dishonesty, fraud, deceit or misrepresentation involving the Funds or their operations. Promoting Prompt Internal Reporting of Violations Each Covered Person shall promptly report his own violations of this Code and violations by other Covered Persons of which he is aware to the Chairman of the relevant Fund's Audit Committee. Any requests for a waiver from or an amendment to this Code shall be made to the Chairman of the relevant Fund's Audit Committee. All waivers and amendments shall be disclosed as required by law. Sanctions Failure to comply with this Code will subject the violator to appropriate sanctions, which will vary based on the nature and severity of the violation. Such sanctions may include censure, suspension or termination of position as an officer of the Fund. Sanctions shall be imposed by the relevant Fund's Audit Committee, subject to review by the entire Board of Directors/Trustees of the Fund. Each Covered Person shall be required to certify annually whether he has complied with this Code. No Rights Created This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern the Funds' senior officers in the conduct of the Funds' business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. Recordkeeping The Funds will maintain and preserve for a period of not less than six (6) years from the date such action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Board (1) that provided the basis for any amendment or waiver to this Code and (2) relating to any violation of the Code and sanctions imposed for such violation, together with a written record of the approval or action taken by the relevant Board. Amendments The Directors/Trustees will make and approve such changes to this Code of Ethics as they deem necessary or appropriate to effectuate the purposes of this Code. Dated: May 17, 2005 CODE OF ETHICS FOR SENIOR OFFICERS: I HEREBY CERTIFY THAT: (1) I have read and I understand the Code of Ethics for Senior Officers adopted by the Credit Suisse Funds, the Credit Suisse Institutional Funds and the Credit Suisse Closed-End Funds (the "Code of Ethics"); (2) I recognize that I am subject to the Code of Ethics; (3) I have complied with the requirements of the Code of Ethics during the calendar year ending December 31, _______; and (4) I have reported all violations of the Code of Ethics required to be reported pursuant to the requirements of the Code during the calendar year ending December 31, _______. Set forth below exceptions to items (3) and (4), if any: ---------------------------------------- ---------------------------------------- ---------------------------------------- Name: ------------------------------ Date: ------------------------------ EX-99.CERT 3 file003.txt CERTIFICATIONS EX-99.CERT EXHIBIT 12(a)(2) CERTIFICATIONS I, Michael A. Pignataro, certify that: 1. I have reviewed this report on Form N-CSR of Credit Suisse Cash Reserve Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 8, 2006 /s/ Michael A. Pignataro - ------------------------ Michael A. Pignataro Chief Financial Officer I, Steven B. Plump, certify that: 1. I have reviewed this report on Form N-CSR of Credit Suisse Cash Reserve Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 8, 2006 /s/ Steven B. Plump - ------------------- Steven B. Plump Chief Executive Officer EX-99.906CERT 4 file004.txt CERTIFICATIONS EX-99.906CERT EXHIBIT 12(b) SECTION 906 CERTIFICATIONS SECTION 906 CERTIFICATION Steven B. Plump, Chief Executive Officer, and Michael A. Pignataro, Chief Financial Officer, of Credit Suisse Cash Reserve Fund, Inc. (the "Fund"), each certify to his knowledge that: (1) The Fund's periodic report on Form N-CSR for the period ended December 31, 2005 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. /s/ Steven B. Plump /s/ Michael A. Pignataro ------------------- ------------------------ Steven B. Plump Michael A. Pignataro Chief Executive Officer Chief Financial Officer March 8, 2006 March 8, 2006 A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Fund and will be retained by the Fund and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----