-----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, O42RRp/NwnUFDYQLvqDLDeWHo0ZB/b5816SABjGhhkfmfLThy8UbMQxHO1R6G3N0 /j+39/aZLo2X2LH3IOXlqg== 0000912057-02-008394.txt : 20020415 0000912057-02-008394.hdr.sgml : 20020415 ACCESSION NUMBER: 0000912057-02-008394 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE PINCUS NEW YORK TAX EXEMPT FUND INC CENTRAL INDEX KEY: 0000759434 STATE OF INCORPORATION: MD FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04170 FILM NUMBER: 02565088 BUSINESS ADDRESS: STREET 1: 103 BELLEVUE PKWY CITY: WILMINTONHIA STATE: DE ZIP: 19809 BUSINESS PHONE: 3027912919 MAIL ADDRESS: STREET 2: 103 BELLEVUE PKWY CITY: WILMINTONHIA STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS NEW YORK TAX EXEMPT FUND DATE OF NAME CHANGE: 19930507 FORMER COMPANY: FORMER CONFORMED NAME: COUNSELLORS NEW YORK TAX EXEMPT FUND INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE CASH RESERVE FUND INC CENTRAL INDEX KEY: 0000759433 STATE OF INCORPORATION: MD FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04171 FILM NUMBER: 02565089 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 N-30D 1 a2071688zn-30d.txt N-30D CREDIT SUISSE FUNDS ------------------- CREDIT | ASSET SUISSE | MANAGEMENT ANNUAL REPORT DECEMBER 31, 2001 CREDIT SUISSE CASH RESERVE FUND -- CREDIT SUISSE NEW YORK TAX EXEMPT FUND More complete information about the Funds, including charges and expenses, is provided in the PROSPECTUS, which must precede or accompany this document and which should be read carefully before investing. You may obtain additional copies by calling 800-927-2874 or by writing to Credit Suisse Funds, P.O. Box 9030, Boston, MA 02205-9030. Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466 Lexington Ave., New York, NY 10017-3147. Credit Suisse Funds are advised by Credit Suisse Asset Management, LLC. THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. THE FUNDS' YIELDS WILL FLUCTUATE ALTHOUGH EACH FUND SEEKS TO MAINTAIN A CONSTANT NET ASSET VALUE OF $1 PER SHARE, THERE CAN BE NO ASSURANCE THAT THEY CAN DO SO ON A CONTINUING BASIS AND IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN EACH FUND. AN INVESTMENT IN EACH FUND IS NEITHER INSURED NOR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTER AND THE PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF DECEMBER 31, 2001; THESE VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES. FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC-INSURED AND ARE NOT GUARANTEED BY CSAM OR ANY AFFILIATE. CREDIT SUISSE CASH RESERVE FUND ANNUAL INVESTMENT ADVISER'S REPORT December 31, 2001 January 29, 2002 Dear Shareholder: The January-through-December period was one of considerable uncertainty for investors. The economy continued to weaken, resulting in ongoing corporate-profit disappointments. In an attempt to spur growth, the Federal Reserve began lowering interest rates in January. The latter part of the period was extraordinary. Stocks plunged in the immediate wake of the September terrorist attacks, but then rallied through the fourth quarter as the Fed stepped up its easing campaign and as success on the war front lessened risk worries. In the end, most major equity indexes finished the year with significant losses, while bonds (at least high-quality bonds) performed well. In this environment, money market asset flows were volatile. Demand for short-term securities was often high, with investors seeking safety and liquidity when uncertainty rose. On the other hand, investors were sometimes quick to exit money market funds in response to encouraging economic news. Credit Suisse Cash Reserve Fund(1) (the "Fund") had total net assets of about $301.5 million on December 31, 2001, compared with about $343.6 million at the start of the period. Our general strategy through the period was to attempt to lock in higher yields farther out on the yield curve, in the belief (correct, as it turned out) that the Fed would continue to lower rates. The Fund's average weighted maturity was 44 days as of December 31, 2001, up from 37 days a year earlier. The Fund's annualized yield for the seven-day period ended December 31, 2001 was 1.66% (with waivers and reimbursements). As we look ahead, we believe that we are at or very close to the bottom of the interest-rate cycle, as the Fed has hinted. We are therefore likely to shift in favor of shorter-maturity securities at some point, in order to have more flexibility to act when and if short-term rates begin to rise. On the other hand, the yield curve for money market securities has remained relatively steep, and at present we remain focused on longer-term securities. We will continue to monitor economic and market trends very carefully. The Fund will remain focused on high-quality securities in order to attempt to provide competitive returns without compromising safety or stability of principal. We appreciate your continued support and investment in the Fund. Brian Lockwood Vice President Credit Suisse Asset Management, LLC - --------------------- (1) Name changed from Warburg Pincus Cash Reserve Fund effective December 12, 2001. 1 CREDIT SUISSE NEW YORK TAX EXEMPT FUND ANNUAL INVESTMENT ADVISER'S REPORT December 31, 2001 January 29, 2002 Dear Shareholder: We are pleased to present the annual report for Credit Suisse New York Tax Exempt Fund covering the year ended December 31, 2001. The impact of the terrorist attacks of September 11, 2001 and the onset of an economic recession has affected the economy of New York and the country as a whole. New York State and New York City have been particularly affected, and are facing budget constraints and increased unemployment rates. These factors, among others, and the performance of the fund are discussed in detail in the letter below from the fund's sub-investment adviser, BlackRock Institutional Management Corporation. We will continue to focus on providing investors with a high level of current interest income, in accordance with the fund's objective, in the current interest rate and economic environment. We hope you find this report helpful. Thank you for your continued confidence and support. James P. McCaughan Chairman The onset of a recession, combined with the tragedy of September 11th, has impacted the U.S. economy and especially that of New York. Economic growth in New York ceased after September 11th. New York State's unemployment has grown to 5.8% in December 2001, up from 5.5% in November and at its highest level since March 1998. Private sector employment has lost approximately 95,100 jobs since September 2001. Most of the job losses are concentrated in New York City. While the state benefits from its broad and diverse economic base and its substantial wealth and resources, the impact on the state's budget has been substantial. The state will use up the $1.6 billion surplus from fiscal year 2001 to meet its budgetary needs during fiscal year 2002. It is projected that the state will close fiscal year 2002 with a $3 billion deficit, and will need to close a potential $6 billion deficit in fiscal year 2003. A fiscally sound budget produced in a relatively timely manner will likely be necessary in order for the state to maintain its AA rating from S&P. 2 The state's fiscal health is directly linked to that of New York City. The demise of the World Trade Center and the devastation to lower Manhattan has impacted and can be expected to continue to impact the city's business structure. New York City has lost approximately 94,700 jobs since September 11th and has seen its unemployment rate grow to 7.0% in December 2001, up from 5.0% in July 2001. The city projects that it will close fiscal year 2002 in balance. Fiscal year 2003 will probably present the city with a greater challenge, with a $3.6 billion budget gap currently being projected. This uncertainty has prompted Moody's to change the outlook on New York City's A2 rating to "negative." During the second half of the year, the Federal Open Market Committee eased rates an additional 200 basis points for a total of 475 basis points of easing during 2001. The horrible events that took place on September 11th were the driving force behind the aggressive easing in the second half of the year, as 175 basis points of easing occurred after September 11th. Assets for Credit Suisse New York Tax Exempt Fund(1) closed the year ended December 31, 2001 at $186.7 million. With the continued aggressive easing stance taken by the Federal Reserve during the second half of the year, the Fund continued to look for what it considered to be attractive opportunities to invest further out the yield curve. The Fund was able to increase its position in several attractively priced short bonds and general market notes. On December 31st the average weighted maturity of the Fund stood at 39 days, the 7-day annualized yield was 1.24% (with waivers and reimbursements) and the one year return was 2.13%. The Fund seeks to continue to provide investors with a high level of current interest income exempt from federal, New York State and New York City personal income taxes as is consistent with the preservation of capital and liquidity. We appreciate your continued support and investment in the Fund. BLACKROCK INSTITUTIONAL MANAGEMENT CORPORATION 3 THE INTEREST ON NEW YORK MUNICIPAL OBLIGATION IS EXCLUDABLE FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES AND EXEMPT FROM NEW YORK STATE AND NEW YORK CITY PERSONAL INCOME TAXES. A PORTION OF INCOME MAY BE SUBJECT TO STATE, LOCAL AND CITY TAXES OR THE FEDERAL ALTERNATIVE MINIMUM TAX. THIS FUND MAY BE RISKIER THAN A MORE GEOGRAPHICALLY-DIVERSE MUNICIPAL MONEY-MARKET FUND. ADDITIONALLY, THE RISK OF A DOWNTURN IN THE U.S. ECONOMY, PARTICULARLY IN NEW YORK CITY AND NEW YORK STATE, HAS BEEN HEIGHTENED BY THE TERRORIST ATTACK ON THE WORLD TRADE CENTER ON SEPTEMBER 11, 2001. IT IS LIKELY THAT NEW YORK CITY AND NEW YORK STATE WILL SUFFER FINANCIAL DIFFICULTIES AS A RESULT, WHICH COULD ADVERSELY AFFECT THE ABILITY OF NEW YORK MUNICIPAL ISSUERS TO MAKE PAYMENTS OF PRINCIPAL AND INTEREST, AS WELL AS THE CREDIT RATING, MARKET VALUE AND YIELD OF SECURITIES OF SUCH ISSUERS. IF THE FUND HAS DIFFICULTY FINDING ATTRACTIVE NEW YORK MUNICIPAL SECURITIES TO PURCHASE, THE AMOUNT OF THE FUND'S INCOME THAT IS SUBJECT TO NEW YORK TAXES COULD INCREASE. - --------------------- (1) Name changed from Warburg Pincus New York Tax Exempt Fund effective December 12, 2001. 4 CREDIT SUISSE CASH RESERVE FUND SCHEDULE OF INVESTMENTS December 31, 2001
PAR RATINGS(1) (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- AGENCY OBLIGATIONS (18.5%) $ 7,000 Fannie Mae (AAA , Aaa) 03/14/02 2.400 $ 6,966,400 7,000 Fannie Mae Floating Rate Note(2) (AAA , Aaa) 01/05/02 1.968 7,000,000 5,000 Federal Farm Credit Bank (AAA , Aaa) 05/01/02 5.250 5,021,361 15,000 Federal Home Loan Bank (AAA , Aaa) 01/11/02 1.730 14,992,792 3,000 Federal Home Loan Bank (AAA , Aaa) 05/15/02 7.250 3,035,991 3,324 Federal Home Loan Bank (AAA , Aaa) 08/21/02 1.890 3,283,514 8,000 Freddie Mac (AAA , Aaa) 01/03/02 2.280 7,998,986 7,500 Sallie Mae Floating Rate Note(2) (AAA , Aaa) 01/02/02 1.840 7,500,000 ------------ TOTAL AGENCY OBLIGATIONS (Cost $55,799,044) 55,799,044 ------------ CERTIFICATES OF DEPOSIT (21.2%) BANKS (19.2%) 5,500 Abbey National Treasury Services PLC (A1+ , P1+) 12/27/02 2.720 5,513,389 10,000 Bank of America NA (A1+ , P1) 03/27/02 2.430 10,000,000 7,000 Citibank NA (A1+ , P1) 01/02/02 2.530 7,000,101 5,500 Credit Agricol In NY (A1+ , P1) 03/28/02 4.620 5,499,718 11,865 Lloyds Bank PLC (A1+ , P1) 02/20/02 2.020 11,865,000 11,100 Rabobank Nederland N.V. (A1+ , P1+) 05/28/02 2.030 11,103,576 7,000 Svenska Handelsbanken, Inc. (A1+ , P1) 05/16/02 3.810 7,001,766 ------------ 57,983,550 ------------ FINANCE (2.0%) 5,845 UBS AG (A1+ , P1) 03/12/02 1.905 5,845,056 ------------ TOTAL CERTIFICATES OF DEPOSIT (Cost $63,828,606) 63,828,606 ------------ COMMERCIAL PAPER (40.7%) AUTOMOBILES (2.2%) 6,520 Volkswagen of America, Inc. (A1 , P1) 01/02/02 1.750 6,519,683 ------------ BANKS (19.4%) 4,130 Bank of Scotland Treasury Services (A1+ , P1+) 02/28/02 1.940 4,117,091 8,170 Banque Generale du Luxembourg (A1+ , P1) 01/24/02 2.200 8,158,517 10,000 Gironzentrale (A1+ , P1) 02/06/02 1.850 9,981,500 10,220 J.P. Morgan Chase & Co. (A1+ , P1) 02/11/02 1.730 10,199,864 6,850 KFW International Finance (A1+ , P1) 02/07/02 3.370 6,826,274 3,275 KFW International Finance (A1+ , P1) 02/28/02 2.110 3,263,867 6,000 Monte Blanc Capital Corp. (A1+ , P1) 01/25/02 1.950 5,992,200 10,000 USAA Capital Corp. (A1+ , P1) 01/04/02 1.950 9,998,375 ------------ 58,537,688 ------------ CONSTRUCTION & ENGINEERING (1.7%) 5,000 Caterpillar, Inc. (A1 , P1) 02/08/02 1.800 4,990,500 ------------ DRUGS (3.3%) 10,000 Abbott Laboratories (A1+ , P1) 01/02/02 1.960 9,999,456 ------------
See Accompanying Notes to Financial Statements. 5
PAR RATINGS(1) (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- COMMERCIAL PAPER (CONTINUED) FINANCE (6.9%) $10,000 BMW US Capital Corp. (A1 , P1) 01/08/02 1.830 $ 9,996,442 11,000 General Electric Capital Corp. (A1+ , P1) 01/03/02 1.950 10,998,808 ------------ 20,995,250 ------------ FOOD (2.2%) 6,636 McDonald's Corp. (A1 , P1) 01/07/02 1.830 6,633,976 ------------ SECURITIES & ASSET MANAGEMENT (5.0%) 5,125 Goldman Sachs (A1+ , P1) 01/14/02 1.750 5,121,761 10,000 Morgan Stanley (A1+ , P1) 01/24/02 1.760 9,988,756 ------------ 15,110,517 ------------ TOTAL COMMERCIAL PAPER (Cost $122,787,070) 122,787,070 ------------ TIME DEPOSIT (7.5%) 22,469 Societe Generale (Cost $22,469,000) (A1+ , P1) 01/02/02 1.600 22,469,000 ------------ UNITED STATES TREASURY OBLIGATIONS (8.3%) UNITED STATES TREASURY BILLS (8.3%) 7,000 United States Treasury Bill (AAA , Aaa) 01/03/02 1.605 6,999,376 107 United States Treasury Bill (AAA , Aaa) 01/10/02 2.190 106,941 6,000 United States Treasury Bill (AAA , Aaa) 01/10/02 3.290 5,995,065 5,000 United States Treasury Bill (AAA , Aaa) 02/07/02 1.730 4,991,110 7,000 United States Treasury Bill (AAA , Aaa) 02/07/02 1.800 6,987,050 ------------ TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $25,079,542) 25,079,542 ------------ TOTAL INVESTMENTS AT VALUE (96.2%) (Cost $289,963,262(3)) 289,963,262 OTHER ASSETS IN EXCESS OF LIABILITIES (3.8%) 11,553,849 ------------ NET ASSETS (100.0%) $301,517,111 ============
Average Weighted Maturity -- 44 days (Unaudited) - -------------------------------------------------------------------------------- (1) Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's Ratings Group are unaudited. (2) The interest rate is as of December 31, 2001 and the maturity date is the later of the next interest readjustment date or the date the principal amount can be recovered through demand. (3) Also cost for federal income tax purposes. See Accompanying Notes to Financial Statements. 6 CREDIT SUISSE NEW YORK TAX EXEMPT FUND SCHEDULE OF INVESTMENTS December 31, 2001
PAR RATINGS(1) (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- MUNICIPAL BONDS (94.2%) NEW YORK (94.1%) $ 4,000 Albany, NY, Industrial Development, Revenue Bonds (University of Albany Student Housing) (Key Corp. Bank N.A. LOC) VRDN (A-1+ , NR) 01/01/02 1.600 $ 4,000,000 1,360 Auburn, NY, Industrial Development Authority (Fat Tire LLC Project) (Key Corp. Bank N.A. LOC) VRDN(2) (NR , NR) 01/07/02 2.000 1,360,000 1,300 Babylon, NY, Industrial Development Agency, Revenue Bonds (D'addario & Co. Inc., Project) (Fleet Bank LOC) VRDN(2) (NR , A1) 01/07/02 1.700 1,300,000 2,000 Chautauqua County, NY, General Obligation Unlimited, BAN (NR , NR) 04/26/02 3.500 2,002,319 4,000 Chautauqua County, NY, General Obligation Unlimited, BAN (NR , NR) 04/26/02 3.350 4,002,810 2,000 Chautauqua County, NY, Industrial Development Agency (Red Wing Co. Project) (Wachovia Bank LOC) VRDN(2) (NR , Aa3) 01/07/02 1.560 2,000,000 1,000 Genesee Valley Central School District, General Obligation Unlimited, BAN (NR , NR) 01/15/02 3.125 1,000,178 500 Hempstead Town, NY, General Obligation Unlimited (AMBAC Insurance LOC) (NR , Aaa) 02/15/02 5.000 502,064 15,400 Hempstead, NY, Industrial Development Agency, Revenue Bonds (FCD Housing LLC Project) VRDN(2) (NR , NR) 01/07/02 1.760 15,400,000 5,000 Highland Falls - Ft. Montgomery, NY, Central School District, General Obligation Unlimited, BAN (NR , MIG1) 07/11/02 3.000 5,006,874 575 Islip, NY, General Obligation Unlimited (AA , Aa3) 06/15/02 4.000 578,369 2,000 Lancaster, NY, Industrial Development Agency Revenue Bonds (Key Bank N.A. LOC) VRDN(2) (NR , NR) 01/07/02 2.000 2,000,000 1,000 Levittown, NY, Union Free School District, General Obligation Unlimited (NR , NR) 06/19/02 3.250 1,002,477 2,000 Long Island Power Authority (Bayerische Landesbank LOC) TECP (A-1+ , P-1) 01/15/02 2.500 2,000,000 2,000 Long Island Power Authority, NY, Revenue Bonds, Series 2, Subseries 2A (Westdeutsche Landesbank Gironzentrale LOC) VRDN(2) (A1+ , VMIG1) 01/07/02 1.450 2,000,000 1,000 Metropolitan Transportation Authority (ABN Ambro Bank LOC) TECP (NR , NR) 02/12/02 1.550 1,000,000 250 Metropolitan Transportation Authority, NY, Revenue Bonds, Series B (MBIA Insurance LOC) (AAA , Aaa) 07/01/02 6.250 259,260 200 Metropolitan Transportation Authority, NY, Revenue Bonds, Series J (FGIC Insurance LOC) (AAA , Aaa) 07/01/02 6.100 207,362 900 Metropolitan Transportation Authority, NY, Revenue Bonds, Series L (BBB+ , Aaa) 07/01/02 6.625 930,972
See Accompanying Notes to Financial Statements. 7
PAR RATINGS(1) (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- MUNICIPAL BONDS (CONTINUED) NEW YORK (CONTINUED) $ 1,065 Metropolitan Transportation Authority, NY, Revenue Bonds, Series M (AMBAC Insurance LOC) (AAA , Aaa) 07/01/02 4.900 $ 1,080,286 2,000 Metropolitan Transportation Authority, TECP (A-1+ , P-1) 03/25/02 1.350 2,000,000 1,595 Monroe County, NY, Industrial Development Agency, Revenue Bonds (Windsor Manufacturing Project) (Key Bank N.A. LOC) VRDN(2) (NR , NR) 01/03/02 2.000 1,595,000 100 New York Local Government Assistance Corp., Revenue Bonds, Series E (Societe Generale and Landesbank Hessen-Thuringen LOC) VRDN(2) (AA- , Aa3) 01/07/02 1.550 100,000 1,435 New York State Dormitory Authority, Revenue Bonds, Series A (AAA , Aaa) 05/15/02 7.250 1,493,135 250 New York State Dormitory Authority, Revenue Bonds, Series A (New York University) (MBIA Insurance LOC) (AAA , Aaa) 07/01/02 5.500 254,583 300 New York State Dormitory Authority, Revenue Bonds, Series A (Rochester University) (MBIA Insurance LOC) (AAA , Aaa) 07/01/02 5.000 304,229 2,635 New York State Dormitory Authority, Revenue Bonds, Series A (Rockefeller University) VRDN(2) (AAA , Aaa) 01/07/02 1.400 2,635,000 705 New York State Dormitory Authority, Revenue Bonds, Series B (Metropolitan Musuem of Art) VRDN(2) (AAA , Aaa) 01/07/02 1.400 705,000 1,000 New York State Dormitory Authority, Revenue Bonds, Series D (NR , NR) 01/07/02 1.540 1,000,000 1,905 New York State Energy Research and Development Authority Pollution Control, Revenue Bonds (Rochester Gas and Electric) (MBIA Insurance LOC) VRDN(2) (A-1+ , VMIG1) 01/07/02 1.500 1,905,000 1,000 New York State Housing Finance Authority, Revenue Bonds, Series A (Keybank N.A. LOC) VRDN(2) (NR , VMIG1) 01/07/02 1.550 1,000,000 1,320 New York State Local Government Assistance Corp., Revenue Bonds, Series A (AA- , Aaa) 04/01/02 6.875 1,363,265 550 New York State Local Government Assistance Corp., Revenue Bonds, Series B (AA- , A3) 04/01/02 5.900 566,115 1,775 New York State Local Government Assistance Corp., Revenue Bonds, Series B (Bank of Nova Scotia LOC) VRDN(2) (A1 , VMIG1) 01/07/02 1.500 1,775,000 500 New York State Local Government Assistance Corp., Revenue Bonds, Series C (AA- , Aaa) 04/01/02 6.250 515,492 500 New York State Local Government Assistance Corp., Revenue Bonds, Series D(2) (AAA , Aaa) 04/01/02 6.750 516,163 2,000 New York State Medical Care Facilities Finance Agency, Revenue Bonds, (FGIC Insurance LOC) (AAA , Aaa) 02/15/02 6.375 2,051,158
See Accompanying Notes to Financial Statements. 8
PAR RATINGS(1) (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- MUNICIPAL BONDS (CONTINUED) NEW YORK (CONTINUED) $ 800 New York State Power Authority (Morgan Guaranty LOC) (A-1 , VMIG1) 01/07/02 1.450 $ 800,000 3,000 New York State Power Authority (Morgan Guaranty) TECP (A-1 , P-1) 02/08/02 2.350 3,000,000 1,000 New York State Power Authority Revenue and Gemeral Purpose, Revenue Bonds, Series AA (MBIA Insurance LOC) (AAA , Aaa) 01/01/02 6.250 1,020,000 5,000 New York State Thruway Authority (Landesbank Hessen-Thuringen LOC) TECP (A-1+ , P-1) 03/08/02 1.300 5,000,000 100 New York State Thruway Authority Emergency Highway, Revenue Bonds (FGIC Insurance LOC) (AAA , Aaa) 03/01/02 4.900 100,493 3,900 New York State Urban Development Corp., Revenue Bonds, Series SG 150 (MBIA Insurance LOC) VRDN(2) (NR , NR) 01/03/02 1.460 3,900,000 1,000 New York State, General Obligation Unlimited (NR , NR) 01/07/02 1.800 1,000,000 500 New York State, General Obligation Unlimited (AA , A2) 03/01/02 6.700 514,029 210 New York State, General Obligation Unlimited (AA , A2) 03/01/02 5.000 210,640 4,800 New York, NY Trust Receipts (A-1+ , NR) 01/07/02 1.510 4,800,000 1,500 New York, NY Housing Development Corp., Revenue Bonds (FNMA LOC) VRDN(2) (A-1+ , NR) 01/02/02 1.450 1,500,000 4,370 New York, NY, City Health and Hospital Corp., Revenue Bonds, Series A (Morgan Guaranty Trust LOC) VRDN(2) (A-1+ , VMIG1) 01/07/02 1.500 4,370,000 5,890 New York, NY, City Health and Hospital Corp., Revenue Bonds, Series F (Commerzbank A.G. LOC) VRDN(2) (A-1+ , VMIG1) 01/07/02 1.450 5,890,000 2,215 New York, NY, City Health and Hospital Corp., Revenue Bonds, Series C (Toronto Dominion Bank LOC) VRDN(2) (A1+ , VMIG1) 01/07/02 1.400 2,215,000 2,825 New York, NY, City Health and Hospital Corp., Revenue Bonds, Series E (Bank of New York LOC) VRDN(2) (A-1+ , VMIG1) 01/02/02 1.450 2,825,000 3,000 New York, NY, City Municipal Water Finance Authority Water and Sewer Systems, Revenue Bonds, Series A (FGIC Insurance LOC) VRDN(2) (AAA , Aaa) 01/01/02 1.800 3,000,000 800 New York, NY, City Municipal Water Financial Authority water and Sewer Systems, Revenue Bonds, Series F-1, VRDN(2) (NR , NR) 01/02/02 1.950 800,000 500 New York, NY, General Obligation Unlimited (AAA , Aaa) 02/01/02 7.000 509,694 730 New York, NY, General Obligation Unlimited, Series B (A , A2) 02/01/02 7.500 744,406 3,730 New York, NY, General Obligation Unlimited, Series B, Subseries B8 (Bayerische Landesbank LOC) VRDN(2) (AA- , Aa3) 01/07/02 1.500 3,730,000
See Accompanying Notes to Financial Statements. 9
PAR RATINGS(1) (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- MUNICIPAL BONDS (CONTINUED) NEW YORK (CONTINUED) $ 7,200 New York, NY, General Obligation Unlimited, Series D (FGIC Insurance LOC) VRDN(2) (AAA , Aaa) 01/07/02 1.550 $ 7,200,000 1,200 New York, NY, General Obligation Unlimited, Series D (FGIC Insurance LOC) VRDN(2) (AAA , Aaa) 01/07/02 1.400 1,200,000 5,660 New York, NY, General Obligation Unlimited, Series F-4 (Landesbank Hessen-Thuringen LOC) VRDN(2) (AAA , Aaa) 01/07/02 1.550 5,660,000 3,000 New York, NY, General Obligation Unlimited, Series F-6 (Morgan Guaranty Trust LOC) VRDN(2) (AAA , Aa2) 01/07/02 2.200 3,000,000 2,100 New York, NY, General Obligation Unlimited, SubSeries A-6 (Helaba LOC) VRDN(2) (AAA , VMIG1) 01/07/02 1.450 2,100,000 600 New York, NY, General Obligation Unlimited, Subseries A-8 (AMBAC Insurance LOC) VRDN(2) (A-1+ , VMIG1) 01/07/02 1.400 600,000 1,000 New York, NY, General Obligation Unlimited, Subseries E3 (Westdeutsche Landesbank Gironzentrale LOC) VRDN(2) (AAA , Aaa) 01/01/02 1.490 1,000,000 800 New York, NY, General Obligation Unlimited, Subseries J3 (Morgan Guaranty Trust LOC) VRDN(2) (AA- , Aa3) 01/02/02 1.600 800,000 7,000 New York, NY, Revenue Anticipation Notes, General Obligation Unlimited, Series A (SP-1+ , M1G1) 04/12/02 3.000 7,018,812 2,000 New York, NY, Transitional Finance Authority, Revenue Bonds (NR , VMIG1) 03/29/02 3.050 2,000,000 3,000 New York, NY, Transitional Finance Authority, Revenue Bonds, Series 3 BAN (NR , NR) 11/13/02 2.750 3,021,394 3,550 New York, NY, Transitional Finance Authority, Revenue Bonds, Series A-1 (Morgan Guaranty Trust LOC) (A-1+ , VMIG1) 01/07/02 1.500 3,550,000 890 New York, NY, Transitional Finance Authority, Revenue Bonds, Series A-1 (Morgan Guaranty Trust LOC) (A-1+ , VMIG1) 01/07/02 1.500 890,000 1,315 New York, NY, Transitional Finance Authority, Revenue Bonds, Series A-2 (Bank of Nova Scotia LOC) (AA , Aa3) 01/07/02 1.500 1,315,000 1,544 Onondaga County, NY, General Obligation Unlimited, BAN (NR , NR) 03/22/02 3.500 1,545,304 2,345 Onondaga County, NY, Industrial Development Agency, Revenue Bonds (Midstate Printing Corp. Project) (Key Corp. Bank N.A. LOC) VRDN(2) (NR , NR) 01/07/02 2.000 2,345,000 1,320 Onondaga County, NY, Industrial Development Agency, Revenue Bonds (Plainville Turkey Farm Project) (Key Corp. Bank N.A. LOC) VRDN(2) (NR , NR) 01/07/02 2.000 1,320,000 4,930 Port Authority of New York and New Jersey (Bank of Nova Scotia LOC) TECP (A1+ , P1) 01/17/02 1.950 4,930,000 1,000 St. Lawrence County, NY, Industrial Development Agency Environmental Facilities, Revenue Bonds (Aluminum Co. of America Project) VRDN(2) (A+ , NR) 01/07/02 1.660 1,000,000
See Accompanying Notes to Financial Statements. 10
PAR RATINGS(1) (000) (S&P/MOODY'S) MATURITY RATE% VALUE ----- ------------- -------- ----- ----- MUNICIPAL BONDS (CONTINUED) NEW YORK (CONTINUED) $ 580 Suffolk County, NY, General Obligation Unlimited (MBIA Insurance LOC) (AAA , Aaa) 02/01/02 4.500 $ 581,342 500 Suffolk County, NY, General Obligation Unlimited, Series C, (FGIC Insurance LOC) (AAA , Aaa) 11/01/02 5.100 512,951 1,000 Tompkins County, NY, Industrial Development Agency, Revenue Bonds, Series A (HSBC Bank LOC) VRDN(2) (NR , VMIG1) 01/07/02 1.500 1,000,000 7,000 Triborough Bridge and Tunnel Authority, Revenue Notes, Series A-1, BAN (SP-1+ , MIG1) 01/17/02 5.000 7,006,260 220 Ulster County, NY, Industrial Development Agency, Revenue Bonds (Viking Industrial Inc., Project) (Keybank N.A. LOC) VRDN(2) (NR , NR) 01/07/02 2.000 220,000 2,500 Yonkers, NY, Industrial Development Agency, Revenue Bonds, Series A01 (NR , VMIG1) 01/07/02 1.690 2,500,000 ------------ TOTAL NEW YORK (Cost $175,657,436) 175,657,436 ------------ PUERTO RICO (0.1%) 100 Puerto Rico Industrial, Medical, and Evironmental Pollution Control Facilities, Revenue Bonds (Higher Education-AGMEF Project) (Bank of Tokyo Mitsubshi LOC) VRDN(2) (AA- , NR) 01/07/02 3.350 100,000 150 Puerto Rico Municipal Finance Agency, Revenue Bonds, Series A (FSA Insurance LOC) (AAA , Aaa) 07/01/02 5.300 152,336 ------------ TOTAL PUERTO RICO (Cost $252,336) 252,336 ------------ TOTAL MUNICIPAL BONDS (Cost $175,909,772) 175,909,772 ------------ TOTAL INVESTMENTS AT VALUE (94.2%) (Cost $175,909,772(3)) 175,909,772 OTHER ASSETS IN EXCESS OF LIABILITIES (5.8%) 10,776,092 ------------ NET ASSETS (100.0%) $186,685,864 ============
Average Weighted Maturity 39 days (Unaudited) INVESTMENT ABBREVIATIONS NR = Not Rated(4) BAN = Bond Anticipation Note VRDN = Variable Rate Demand Note TECP = Tax Exempt Commercial Paper LOC = Letter of Credit - -------------------------------------------------------------------------------- (1) Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's Ratings Group are unaudited. (2) The interest rate is as of December 31, 2001 and the maturity date is the later of the next interest readjustment date or the date the principal amount can be recovered through demand. (3) Also cost for federal income tax purposes. (4) At the time of purchase the sub-investment adviser deemed these securities to be of comparable quality to rated securities that the fund may purchase. See Accompanying Notes to Financial Statements. 11 CREDIT SUISSE CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS STATEMENTS OF ASSETS AND LIABILITIES December 31, 2001
NEW YORK CASH RESERVE FUND TAX EXEMPT FUND ----------------- --------------- ASSETS Investments at value (Cost $289,963,262 and $175,909,772, respectively) $289,963,262 $175,909,772 Cash 953 15,043 Receivable for fund shares sold 13,018,125 220,700 Interest receivable 618,821 1,276,583 Receivable for investments sold -- 10,908,970 Other assets 38,182 44,723 ------------ ------------ Total Assets 303,639,343 188,375,791 ------------ ------------ LIABILITIES Advisory fee payable 3,627 32,988 Sub-Advisory fee payable -- 20,053 Administrative services fee payable 42,826 15,796 Payable for fund shares redeemed 1,830,928 1,523,446 Dividend payable 166,812 83,663 Other accrued expenses payable 78,039 13,981 ------------ ------------ Total Liabilities 2,122,232 1,689,927 ------------ ------------ NET ASSETS Capital stock, $0.001 par value 301,599 186,703 Paid-in capital 301,296,820 186,502,857 Accumulated net realized loss from investments (81,308) (3,696) ------------ ------------ Net Assets $301,517,111 $186,685,864 ============ ============ COMMON SHARES Net assets $301,516,111 $186,684,864 Shares outstanding 301,598,036 186,701,679 ------------ ------------ Net asset value, offering price and redemption price per share $1.00 $1.00 ===== ===== A SHARES Net assets $ 1,000 $ 1,000 Shares outstanding 1,000 1,000 ------------ ------------ Net asset value, offering price and redemption price per share $1.00 $1.00 ===== =====
See Accompanying Notes to Financial Statements. 12 CREDIT SUISSE CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS STATEMENTS OF OPERATIONS For the Year Ended December 31, 2001
NEW YORK CASH RESERVE FUND TAX EXEMPT FUND ----------------- --------------- INTEREST INCOME $14,797,706 $5,009,307 ----------- ---------- EXPENSES Investment advisory fees 1,124,595 471,349 Sub-Investment advisory fees 131,889 472,104 Administrative services fees 535,328 188,539 Transfer agent fees 154,929 17,573 Legal fees 75,884 48,622 Custodian fees 52,648 25,446 Registration fees 46,219 21,022 Printing fees 37,042 29,735 Audit fees 19,000 18,519 Directors fees 18,487 18,106 Insurance expense 9,147 5,548 Miscellaneous expense 12,739 8,097 ----------- ---------- Total expenses 2,217,907 1,324,660 Less: fees waived and transfer agent offsets (367,839) (288,443) ----------- ---------- Net expenses 1,850,068 1,036,217 ----------- ---------- Net investment income 12,947,638 3,973,090 ----------- ---------- NET REALIZED GAIN (LOSS) FROM INVESTMENTS 43,591 (3,696) ----------- ---------- Net increase in net assets resulting from operations $12,991,229 $3,969,394 =========== ==========
See Accompanying Notes to Financial Statements. 13 CREDIT SUISSE CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS STATEMENTS OF CHANGES IN NET ASSETS
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND ------------------------------------- ------------------------------------- FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR ENDED ENDED ENDED ENDED DECEMBER 31, 2001 DECEMBER 31, 2000 DECEMBER 31, 2001 DECEMBER 31, 2000 ----------------- ----------------- ----------------- ----------------- FROM OPERATIONS Net investment income $ 12,947,638 $ 23,335,928 $ 3,973,090 $ 5,990,009 Net realized gain (loss) from investments 43,591 18,798 (3,696) -- --------------- --------------- ------------- ------------- Net increase in net assets resulting from operations 12,991,229 23,354,726 3,969,394 5,990,009 --------------- --------------- ------------- ------------- FROM DIVIDENDS Dividends from net investment income Common Class shares (12,947,637) (23,335,928) (3,973,089) (5,990,009) Class A shares (1) -- (1) -- --------------- --------------- ------------- ------------- Net decrease in net assets from dividends (12,947,638) (23,335,928) (3,973,090) (5,990,009) --------------- --------------- ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 1,368,773,474 3,124,804,878 391,822,502 398,494,447 Reinvestment of dividends 8,278,869 14,473,214 1,927,374 2,970,040 Net asset value of shares redeemed (1,419,201,509) (3,259,645,159) (404,604,049) (385,762,447) --------------- --------------- ------------- ------------- Net increase (decrease) in net assets from capital share transactions (42,149,166) (120,367,067) (10,854,173) 15,702,040 --------------- --------------- ------------- ------------- Net increase (decrease) in net assets (42,105,575) (120,348,269) (10,857,869) 15,702,040 NET ASSETS Beginning of year 343,622,686 463,970,955 197,543,733 181,841,693 --------------- --------------- ------------- ------------- End of year $ 301,517,111 $ 343,622,686 $ 186,685,864 $ 197,543,733 =============== =============== ============= =============
See Accompanying Notes to Financial Statements. 14 CREDIT SUISSE CASH RESERVE FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR ENDED DECEMBER 31, ----------------------------------------------------------------------------- 2001 2000 1999 1998 1997(1) 1997(2) -------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 INVESTMENT OPERATIONS Net investment income 0.0371 0.0592 0.0464 0.0499 0.0428 0.0492 LESS DIVIDENDS Dividends from net investment income (0.0371) (0.0592) (0.0464) (0.0499) (0.0428) (0.0492) -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ======== ======== ======== ======== ======== ======== Total return 3.77% 6.08% 4.74% 5.12% 4.28%(3) 5.03% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $301,516 $343,623 $463,971 $429,978 $472,675 $416,735 Ratio of expenses to average net assets(4) 0.55% 0.57% 0.56% 0.56% 0.55%(5) 0.55% Ratio of net investment income to average net assets 3.85% 5.87% 4.66% 5.00% 5.11%(5) 4.93% Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.11% 0.11% 0.12% 0.12% 0.12%(5) 0.14%
- -------------------------------------------------------------------------------- (1) In 1997, the Credit Suisse Cash Reserve Fund changed its fiscal year end from February 28th to December 31st. The information presented is for the period March 1, 1997 through December 31, 1997. (2) For the year ended February 28, 1997. (3) Non-annualized. (4) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements resulted in a reduction to the Common Class share's net expense ratio by .00%, .02%, .01%, .01%, .00%, and .00% for each of the years ended December 31, 2001, 2000, 1999, 1998, the period March 1, 1997 through December 31, 1997, and the year ended February 28, 1997, respectively. The operating expense ratio after reflecting these arrangements was .55% for each of the years ended December 31, 2001, 2000, 1999, 1998, the period March 1, 1997 through December 31, 1997, and the year ended February 28, 1997, respectively. (5) Annualized. See Accompanying Notes to Financial Statements. 15 CREDIT SUISSE CASH RESERVE FUND FINANCIAL HIGHLIGHTS (For a Class A Share of the Fund Outstanding Throughout the Period)
FOR THE PERIOD ENDED DECEMBER 31, 2001(1) -------------------- PER SHARE DATA Net asset value, beginning of period $1.0000 INVESTMENT OPERATIONS Net investment income 0.0011 LESS DIVIDENDS Dividends from net investment income (0.0011) ------- NET ASSET VALUE, END OF PERIOD $1.0000 ======= Total return 0.11%(2) RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 1 Ratio of expenses to average net assets(3) 0.80%(4) Ratio of net investment income to average net assets 1.43%(4) Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.37%(4)
(1) For the period November 30, 2001 (commencement of operations) through December 31, 2001. (2) Non-annualized. (3) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements would not have significantly effected the Class A shares' expense ratio for the period ended December 31, 2001. (4) Annualized. See Accompanying Notes to Financial Statements. 16 CREDIT SUISSE NEW YORK TAX EXEMPT FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE YEAR ENDED DECEMBER 31, ----------------------------------------------------------------------------- 2001 2000 1999 1998 1997(1) 1997(2) -------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 INVESTMENT OPERATIONS Net investment income 0.0202 0.0341 0.0267 0.0287 0.0261 0.0288 LESS DIVIDENDS Dividends from net investment income (0.0202) (0.0341) (0.0267) (0.0287) (0.0261) (0.0288) -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 ======== ======== ======== ======== ======== ======== Total return 2.13% 3.46% 2.70% 2.92% 2.64%(3) 2.92% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $186,685 $197,544 $181,842 $174,743 $151,173 $124,191 Ratio of expenses to average net assets(4) 0.55% 0.57% 0.56% 0.55% 0.55%(5) 0.55% Ratio of net investment income to average net assets 2.11% 3.39% 2.68% 2.86% 3.12%(5) 2.88% Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.15% 0.11% 0.13% 0.14% 0.12%(5) 0.17%
- -------------------------------------------------------------------------------- (1) In 1997, the Credit Suisse New York Tax Exempt Fund changed its fiscal year-end from February 28th to December 31st. The information presented is for the period March 1, 1997 through December 31, 1997. (2) For the year ended February 28, 1997. (3) Non-annualized. (4) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements resulted in a reduction to the Common Class shares' net expense ratio by .00%, .02%, .01%, .00%, .00%, and .00% for each of the years ended December 31, 2001, 2000, 1999, 1998, the period March 1, 1997 through December 31, 1997, and the year ended February 28, 1997, respectively. The operating expense ratio after reflecting these arrangements was .55% for each of the years ended December 31, 2001, 2000, 1999, 1998, the period March 1, 1997 through December 31, 1997, and the year ended February 28, 1997, respectively. (5) Annualized. See Accompanying Notes to Financial Statements. 17 CREDIT SUISSE NEW YORK TAX EXEMPT FUND FINANCIAL HIGHLIGHTS (For a Class A Share of the Fund Outstanding Throughout the Period)
FOR THE PERIOD ENDED DECEMBER 31, 2001(1) -------------------- PER SHARE DATA Net asset value, beginning of period $1.0000 INVESTMENT OPERATIONS Net investment income 0.0004 LESS DIVIDENDS Dividends from net investment income (0.0004) ------- NET ASSET VALUE, END OF PERIOD $1.0000 ======= Total return 0.04%(2) RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $ 1 Ratio of expenses to average net assets(3) 0.80%(4) Ratio of net investment income to average net assets 0.50%(4) Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.15%(4)
- -------------------------------------------------------------------------------- (1) For the period November 30, 2001 (commencement of operations) through December 31, 2001. (2) Non-annualized. (3) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements would not have significantly effected the Class A shares' expense ratio for the period ended December 31, 2001. (4) Annualized. See Accompanying Notes to Financial Statements. 18 CREDIT SUISSE CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS NOTES TO FINANCIAL STATEMENTS December 31, 2001 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Credit Suisse Cash Reserve Fund, formerly the Warburg Pincus Cash Reserve Fund, ("Cash Reserve") and Credit Suisse New York Tax Exempt Fund, formerly the Warburg Pincus New York Tax Exempt Fund, ("New York Tax Exempt") (each, a "Fund" and collectively, the "Funds") are registered under the Investment Company Act of 1940, as amended, as open-end management investment companies. The investment objective of the Cash Reserve Fund is to provide investors with high current income consistent with liquidity and stability of principal. The investment objective of the New York Tax Exempt Fund is to provide investors with as high a level of current interest income exempt from federal, New York state and New York City personal income taxes as is consistent with preservation of capital and liquidity. Each Fund offers Common Class and Class A shares. Each class of shares in each Fund represents an equal pro rata interest in each Fund, except that they bear different expenses, which reflect the difference in the range of services provided to them. Common Class shares of each Fund bear no class specific expenses. Class A shares of each Fund bear expenses paid pursuant to a plan of distribution at an annual rate of .25% of the average daily net asset value of each Fund's Class A shares. New York State and New York City have at times faced serious economic problems that have adversely affected New York municipal issuers. The default or credit-rating downgrade of one of these issuers could affect the market value and marketability of New York municipal securities and hurt New York Tax Exempt's yield or share price. As a result, the Fund may be riskier than a more geographically diversified municipal money-market fund. A) SECURITY VALUATION -- The net asset value of each Fund is determined twice daily as of noon and the close of regular trading on the New York Stock Exchange, Inc. Each Fund's investments are valued under the amortized cost method, which has been determined by the Funds' Board of Directors to represent the fair value of the Funds' investments. The Board of Directors has established procedures which 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. Amortized cost involves valuing a Fund holding initially at its cost and then assumes a constant amortization to maturity of any discount or premium. The amortized cost method ignores any impact of fluctuating interest rates. B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on a trade date basis. Interest income is recorded 19 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. 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 Cash Reserve 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 each Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, and make the requisite distributions to its shareholders which will be sufficient to relieve it from federal income and excise taxes. E) USE OF ESTIMATES -- The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. F) REPURCHASE AGREEMENTS -- Each Fund may enter into repurchase agreements. Under the terms of a typical repurchase agreement, a Fund acquires a security subject to an obligation of the seller to repurchase. Securities pledged as collateral for repurchase agreements are held by the Fund's custodian bank until the agreements mature. Each 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. NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Credit Suisse Asset Management, LLC ("CSAM"), an indirect, wholly-owned subsidiary of Credit Suisse Group, serves as each Fund's investment adviser. For its investment advisory services through February 14, 2001, CSAM 20 was entitled to receive a fee calculated at an annual rate of .25% of Cash Reserve's average daily net assets. Pursuant to a new investment advisory agreement effective February 15, 2001, CSAM became the Fund's sole investment adviser and the advisory fee payable to CSAM increased to .35% of Cash Reserve's average daily net assets. For its investment advisory services for New York Tax Exempt CSAM is entitled to receive a fee, calculated at an annual rate of .25% of the Fund's average daily net assets. For the year ended December 31, 2001, investment advisory fees earned and voluntarily waived were as follows:
GROSS NET FUND ADVISORY FEE WAIVER ADVISORY FEE ---- ------------ ------ ------------ Cash Reserve $1,124,595 $(306,520) $818,075 New York Tax Exempt 471,349 (63,223) 408,126
BlackRock Institutional Management Corporation ("BIMC"), a majority-owned subsidiary of PNC Financial Services Group, serves as New York Tax Exempt's sub-investment adviser and co-administrator. For its sub-investment advisory and co-administrative services, BIMC is entitled to receive a fee, exclusive of out-of-pocket expenses, calculated at an annual rate of .25% of New York Tax Exempt's average daily net assets. Through February 14, 2001, BIMC also served as Cash Reserve's sub-investment adviser and co-administrator. For its sub-investment advisory and co-administrative services, BIMC was entitled to receive a fee, exclusive of out-of-pocket expenses, calculated at an annual rate of .25% of the Cash Reserve's average daily net assets. In connection with the new investment advisory agreement, BIMC was terminated as Cash Reserve's sub-investment adviser and co-administrator. For the year ended December 31, 2001 for New York Tax Exempt and for the period January 1, 2001 through February 14, 2001 for Cash Reserve, sub-investment advisory fees and co-administrative services fees (including out of pocket expenses) were as follows:
GROSS SUB-ADVISORY NET SUB-ADVISORY AND AND FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE ---- --------------------- ------ --------------------- Cash Reserve $131,889 $ (51,017) $ 80,872 New York Tax Exempt 472,104 (220,595) 251,509
Effective February 15, 2001, PFPC Inc. ("PFPC"), an indirect, wholly-owned subsidiary of PNC Financial Services Group, was retained as co-administrator for Cash Reserve. For its administrative services, PFPC is entitled to 21 receive a fee, exclusive of out-of-pocket expenses, based on the following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ -------------------------------- First $500 million .07% of average daily net assets Next $1 billion .06% of average daily net assets Over $1.5 billion .05% of average daily net assets
For the period February 15, 2001 through December 31, 2001, administrative services fees earned by PFPC (including out of pocket expenses) were $198,952. Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of CSAM, serves as each Fund's co-administrator. For its administrative services, CSAMSI currently receives a fee calculated at an annual rate of .10% of each Fund's average daily net assets. For the year ended December 31, 2001, co-administrative service fees earned by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE ---- --------------------- Cash Reserve $336,376 New York Tax Exempt 188,539
In addition to serving as each Fund's co-administrator, CSAMSI currently serves as distributor of each Fund's shares. Pursuant to a distribution plan adopted by each 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 .25% of the average daily net assets of the Class A shares of each Fund. CSAMSI may use this fee to compensate service organizations for shareholder servicing and distribution services. For the period November 30, 2001 (commencement of operations of the Class A shares) through December 31, 2001, distribution fees paid to CSAMSI were less than $1 for each Fund. Boston Financial Data Services, Inc. ("BFDS") serves as each Fund's transfer and dividend disbursement agent. The Funds have an arrangement with BFDS whereby interest earned on uninvested cash balances is used to offset a portion of their transfer agent expense. For the year ended 22 December 31, 2001, the Funds received credits or reimbursements under this arrangement as follows:
FUND AMOUNT ---- -------- Cash Reserve $10,302 New York Tax Exempt 4,625
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the Funds to provide certain financial printing services. For the year ended December 31, 2001, Merrill was paid by the Funds for its services as follows:
FUND AMOUNT ---- -------- Cash Reserve $19,476 New York Tax Exempt 13,919
NOTE 3. CAPITAL SHARE TRANSACTIONS Each Fund is authorized to issue four billion full and fractional shares of capital stock, $.001 par value per share, of which one billion shares of each Fund are classified as Common shares, two billion shares are classified as Advisor shares and one billion shares are designated as Class A shares. Transactions in shares of each Fund were as follows:
CASH RESERVE FUND ----------------------------------------------------------------------------------- COMMON CLASS ----------------------------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2001 DECEMBER 31, 2000 ------------------------------------- ------------------------------------- SHARES VALUE SHARES VALUE ------------- ------------- ------------- ------------- Shares sold 1,368,772,474 $ 1,368,772,474 3,124,804,878 $ 3,124,804,878 Shares issued in reinvestment of dividends 8,278,869 8,278,869 14,473,214 14,473,214 Shares redeemed (1,419,201,509) (1,419,201,509) (3,259,645,159) (3,259,645,159) ------------- ------------- ------------- ------------- Net decrease (42,150,166) $ (42,150,166) (120,367,067) $ (120,367,067) ============= ============= ============= ============= CASH RESERVE FUND ------------------------------------- CLASS A ------------------------------------- FOR THE PERIOD ENDED DECEMBER 31, 2001 ------------------------------------- SHARES VALUE ------------- ------------- Shares sold 1,000 $1,000 ----- ----- Net increase 1,000 $1,000 ===== =====
23
NEW YORK TAX EXEMPT FUND ---------------------------------------------------------------------------------- COMMON CLASS ---------------------------------------------------------------------------------- FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2001 DECEMBER 31, 2000 ---------------------------------- ---------------------------------- SHARES VALUE SHARES VALUE ------------ ------------ ------------ ------------ Shares sold 391,821,502 $ 391,821,502 398,494,447 $ 398,494,447 Shares issued in reinvestment of dividends 1,927,374 1,927,374 2,970,040 2,970,040 Shares redeemed (404,604,049) (404,604,049) (385,762,447) (385,762,447) ----------- ----------- ----------- ----------- Net increase (decrease) (10,855,173) $ (10,855,173) 15,702,040 $ 15,702,040 =========== =========== =========== =========== NEW YORK TAX EXEMPT FUND ---------------------------------- CLASS A ---------------------------------- FOR THE PERIOD ENDED DECEMBER 31, 2001 ---------------------------------- SHARES VALUE ------------ ------------ Shares sold 1,000 $1,000 ----- ----- Net increase 1,000 $1,000 ===== =====
NOTE 4. FEDERAL INCOME TAXES Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of losses deferred due to wash sales, and excise tax regulations. Cash Reserve and New York Tax Exempt had $12,947,638 and $3,973,090 in distributions, respectively, during the year ended December 31, 2001, which were classified as ordinary income for tax purposes. At December 31, 2001, the components of distributable earnings on a tax basis were as follows:
NEW YORK CASH RESERVE TAX EXEMPT ------------ ---------- Undistributed ordinary income $ -- $ -- Capital loss carryovers (81,308) (3,696) ---------- ---------- $ (81,308) $ (3,696) ========== ==========
At December 31, 2001, Cash Reserve and New York Tax Exempt had capital loss carryovers available to offset possible future capital gains of $81,308 and $3,696 expiring in 2006 and 2009, respectively. During the fiscal year ended December 31, 2001, Cash Reserve utilized $43,591 of capital losses. 24 At December 31, 2001, capital contributions, and accumulated net realized gain (loss) from investments have been adjusted for current period permanent book/tax differences. New York Tax Exempt reclassified $188 of expired capital loss carryover from accumulated net realized gain (loss) from investments to capital contributions. Net investment income, net realized gain (loss) on investments and net assets were not affected by these reclassifications. 25 CREDIT SUISSE CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors and Shareholders of Credit Suisse Cash Reserve Fund, Inc. and Credit Suisse New York Tax Exempt Fund, Inc.: In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Credit Suisse Cash Reserve Fund, Inc. and Credit Suisse New York Tax Exempt Fund, Inc. (the "Funds") at December 31, 2001, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the years (or periods) presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2001 by correspondence with the custodian provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania February 5, 2002 26 CREDIT SUISSE CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED)
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE FUNDS SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR - --------------------- ----------- ------------ -------------------- ------------- ---------------- INDEPENDENT DIRECTORS Richard H. Francis Director and Since Currently retired; 59 Director of 40 Grosvenor Road Audit 2000 Executive Vice The Indonesia Short Hills, New Jersey Committee President and Fund, Inc. 07078 Member Chief Financial Officer of Pan Am Age: 68 Corporation and Pan American World Airways, Inc. from 1988 to 1991 Jack W. Fritz Director and Since Private investor; 59 Director of 2425 North Fish Creek Road Audit Fund Consultant and Advo, Inc. P.O. Box 1287 Committee Inception Director of Fritz (direct mail Wilson, Wyoming 83014 Member Broadcasting, Inc. advertising) and Fritz Age: 73 Communications (developers and operators of radio stations) since 1987 Jeffrey E. Garten Director and Since Dean of Yale 59 Director of Box 208200 Audit 1998 School of Aetna, Inc.; New Haven, Connecticut Committee Management and Director of 06520-8200 Member William S. Beinecke Calpine Energy Professor in the Corporation Age: 54 Practice of International Trade and Finance; Undersecretary of Commerce for International Trade from November 1993 to October 1995; Professor at Columbia University from September 1992 to November 1993
- ---------------------- (1) Each Director and Officer serves until his or her respective successor has been duly elected and qualified. 27
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE FUNDS SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR - --------------------- ----------- ------------ -------------------- ------------- ---------------- Peter F. Krogh Director and Since Dean Emeritus and 59 Member of 301 ICC Audit 2001 Distinguished Professor Board Georgetown University Committee of International Affairs of The Carlisle Washington, DC 20057 Member at the Edmund A. Companies Inc.; Walsh School of Member of Age: 64 Foreign Service, Selection Georgetown University; Committee Moderator of PBS for Truman foreign affairs television Scholars and series Henry Luce Scholars; Senior Associate of Center for Strategic and International Studies; Trustee of numerous world affairs organizations James S. Pasman, Jr. Director and Since Currently retired; 59 Director of 29 The Trillium Audit 2000 President and Chief Education Pittsburgh, Pennsylvania Committee Operating Officer of Management 15238 Member National InterGroup, Corp., Tyco Inc. from April 1989 International Age: 70 to March 1991; Ltd.; Credit Chairman of Permian Suisse Asset Oil Co. from April 1989 Management to March 1991 Income Fund, Inc.; Trustee of Credit Suisse High Yield Bond Fund; Deutsche VIT Funds, overseeing six portfolios
28
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE FUNDS SERVED PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR - --------------------- ----------- ------------ -------------------- ------------- ---------------- Steven N. Rappaport Director and Since President of Loanet, 59 Director of Loanet, Inc. Audit 2000 Inc. (on-line accounting The First Israel 40 East 52nd Street Committee service) since 1997; Fund, Inc. New York, New York Chairman Executive Vice 10022 President of Loanet, Inc. from 1994 to 1997; Age: 52 Director, President, North American Operations, and former Executive Vice President from 1992 to 1993 of Worldwide Operations of Metallurg Inc.; Executive Vice President, Telerate, Inc. from 1987 to 1992; Partner in the law firm of Hartman & Craven until 1987 INTERESTED DIRECTOR William W. Priest(2) Director Since Senior Partner and 59 Director of The Steinberg Priest 1999 Fund Manager, Brazilian Equity Capital Management Steinberg Fund, Inc.; The 12 East 49th Street Priest Capital Chile Fund, Inc.; 12th Floor Management since The Emerging New York, New York March 2001; Chairman Markets Tele- 10017 and Managing communications Director of CSAM Fund, Inc.; The Age: 59 from 2000 to First Israel February 2001, Chief Fund, Inc.; The Executive Officer and Latin American Managing Director of Equity Fund, CSAM from 1990 to Inc.; The 2000 Indonesia Fund, Inc.; and Credit Suisse Asset Management Income Fund, Inc.
- --------------------- (2) Mr. Priest is a Director who is an "interested person" of the Funds as defined in the 1940 Act, because he was an officer of CSAM until February 2001. 29
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE FUNDS SERVED PAST FIVE YEARS OFFICER HELD BY OFFICER - --------------------- ----------- ------------ -------------------- ------------- ---------------- OFFICERS James P. McCaughan Chairman Since Chief Executive Officer N/A N/A Credit Suisse Asset 2000 and Managing Director Management, LLC of CSAM; Associated 466 Lexington Avenue with CSAM since New York, New York 2000; President and 10017-3147 Chief Operating Officer of Oppenheimer Capital Age: 47 from 1998 to 1999; President and Chief Executive Officer of UBS Asset Management (New York) Inc. from 1996 to 1998; Functional Advisor (Institutional Asset Management) of Union Bank of Switzerland from 1994 to 1996 Hal Liebes, Esq. Vice Since Managing Director and N/A N/A Credit Suisse Asset President 1999 General Counsel of Management, LLC and Secretary CSAM; Associated with 466 Lexington Avenue Lehman Brothers, Inc. New York, New York from 1996 to 1997; 10017-3147 Associated with CSAM from 1995 to 1996; Age: 36 Associated with CS First Boston Investment Management from 1994 to 1995; Associated with Division of Enforcement, U.S. Securities and Exchange Commission from 1991 to 1994 Michael A. Pignataro Treasurer Since Director and Director N/A N/A Credit Suisse Asset and Chief 1999 of Fund Administration Management, LLC Financial of CSAM; Associated 466 Lexington Avenue Officer with CSAM since 1984 New York, New York 10017-3147 Age: 42
30
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE FUNDS SERVED PAST FIVE YEARS OFFICER HELD BY OFFICER - --------------------- ----------- ------------ -------------------- ------------- ---------------- Gregory N. Bressler, Esq. Assistant Since Vice President and N/A N/A Credit Suisse Asset Secretary 2000 Legal Counsel of CSAM Management, LLC since January 2000; 466 Lexington Avenue Associated with the New York, New York law firm of Swidler 10017-3147 Berlin Shereff Friedman LLP from 1996 to 2000 Age: 35 Stuart J. Cohen, Esq. Assistant Since Vice President and N/A N/A Credit Suisse Asset Secretary 1997 Legal Counsel of CSAM; Management, LLC Associated with CSAM 466 Lexington Avenue since Credit Suisse New York, New York acquired the Funds' 10017-3147 predecessor adviser in July 1999; with the Age: 32 predecessor adviser since 1997; Associated with the law firm of Gordon Altman Butowsky Weitzen Shalov & Wein from 1995 to 1997 Rocco A. DelGuercio Assistant Since Vice President and N/A N/A Credit Suisse Asset Treasurer 1999 Administrative Officer of Management, LLC CSAM; Associated with 466 Lexington Avenue CSAM since June 1996; New York, New York Assistant Treasurer, 10017-3147 Bankers Trust Corp.-- Fund Administration Age: 38 from March 1994 to June 1996; Mutual Fund Accounting Supervisor, Dreyfus Corporation from April 1987 to March 1994
31
TERM NUMBER OF OF OFFICE(1) PORTFOLIOS IN AND FUND POSITION(S) LENGTH PRINCIPAL COMPLEX OTHER HELD WITH OF TIME OCCUPATION(S) DURING OVERSEEN BY DIRECTORSHIPS NAME, ADDRESS AND AGE FUNDS SERVED PAST FIVE YEARS OFFICER HELD BY OFFICER - --------------------- ----------- ------------ -------------------- ------------- ---------------- Joseph Parascondola Assistant Since Assistant Vice N/A N/A Credit Suisse Asset Treasurer 2001 President-- Fund Management, LLC Administration of 466 Lexington Avenue CSAM since April New York, New York 2000; Assistant Vice 10017-3147 President, Deutsche Asset Management Age: 38 from January 1999 to April 2000; Assistant Vice President, Weiss, Peck & Greer LLC from November 1995 to December 1998
The Statement of Additional Information includes additional information about the Directors and is available, without charge, upon request, by calling 800-927-2874. 32 CREDIT SUISSE FUNDS ------------------- CREDIT | ASSET SUISSE | MANAGEMENT P.O. Box 9030, Boston, MA 02205-9030 800-927-2874 -- www.CreditSuisseFunds.com CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. WPMMF-2-1201 -----END PRIVACY-ENHANCED MESSAGE-----