-----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, CG7cLt7o3kEOU+WMLlSUbPKo2jzEn3VEk3gN+VSITTZSAM1la5gH/Z/j6pZB2LWp q5dNdKIdjlUHdeVDEgooBQ== 0000912057-02-025795.txt : 20020628 0000912057-02-025795.hdr.sgml : 20020628 20020628143546 ACCESSION NUMBER: 0000912057-02-025795 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020430 FILED AS OF DATE: 20020628 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE CAPITAL APPRECIATION FUND CENTRAL INDEX KEY: 0000811159 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05041 FILM NUMBER: 02691116 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PARKWAY STREET 2: PO BOX 9030 CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027912919 MAIL ADDRESS: STREET 1: C/O WARBURG PINCUS FUNDS STREET 2: PO BOX 9030 CITY: BOSTON STATE: MA ZIP: 02205-9030 FORMER COMPANY: FORMER CONFORMED NAME: COUNSELLORS CAPITAL APPRECIATION FUND DATE OF NAME CHANGE: 19920302 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS CAPITAL APPRECIATION FUND DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE SMALL CAP GROWTH FUND INC CENTRAL INDEX KEY: 0001026298 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-07909 FILM NUMBER: 02691117 BUSINESS ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3147 BUSINESS PHONE: 2128780600 MAIL ADDRESS: STREET 1: 466 LEXINGTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3147 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS SMALL CO GROWTH FUND INC DATE OF NAME CHANGE: 19961104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT SUISSE EMERGING GROWTH FUND INC CENTRAL INDEX KEY: 0000825305 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05396 FILM NUMBER: 02691118 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027912919 MAIL ADDRESS: STREET 1: 466 LEXIGNTON AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-3147 FORMER COMPANY: FORMER CONFORMED NAME: COUNSELLORS EMERGING GROWTH FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: WARBURG PINCUS EMERGING GROWTH FUND INC /PA/ DATE OF NAME CHANGE: 19950201 N-30D 1 a2082815zn-30d.txt N-30D CREDIT | ASSET SUISSE | MANAGEMENT CREDIT SUISSE FUNDS Semiannual Report April 30, 2002 (Unaudited) - CREDIT SUISSE CAPITAL APPRECIATION FUND - CREDIT SUISSE EMERGING GROWTH FUND - CREDIT SUISSE SMALL CAP GROWTH FUND More complete information about the Funds, including charges and expenses, is provided in the Prospectuses, 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. RETURNS INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS. RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS THAN ORIGINAL COST. 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 APRIL 30, 2002; 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 CAPITAL APPRECIATION FUND PORTFOLIO MANAGERS' LETTER April 30, 2002 May 28, 2002 Dear Shareholder: For the six months ended April 30, 2002, the Common Class and Advisor Class shares of Credit Suisse Capital Appreciation Fund(1) (the "Fund") was down 5.11% and 5.30%, respectively, vs. a decline of 2.13% for the Russell 1000 Growth Index(2) and a gain of 2.31% for the S&P 500 Index.(2) The period was a difficult one for large-cap growth stocks. Amid evidence that the U.S. economy was improving, investors generally focused on smaller-cap and value-type equities, remaining cautious toward the large-cap growth companies that had powered the stock market's late 1990s rally. Against this backdrop, the Fund had a loss and trailed its benchmarks. Stocks that hampered the Fund in the period included certain industrial-type names. The Fund's financial-services and producer durable holdings also hindered its performance. On the positive side, the Fund's technology stocks had relatively good showings compared to the broader universe of larger-cap technology companies. In terms of sector allocation in the period, one noteworthy adjustment we made was to pare the Fund's financial-services exposure. In broad terms, we were increasingly concerned that banks and certain other financial companies could face credit-related problems until an economic recovery is well underway. One weighting we increased, on the other hand, was retail. Late in the period we purchased two companies in that sector that we deemed to have reasonable valuations and improving business prospects. Elsewhere, we consider sector-weighting changes to be more marginal. We maintained a significant position in the media area, where we believe an earnings recovery is occurring after a severe profit recession in the industry. In our view, advertising revenues in particular could grow significantly, barring a sudden reversal of recent economic trends. We also maintained a noteworthy weighting in health care. In the pharmaceutical sector, we remained focused on companies that in our view have the best patent-protection profile. Our approach to drug stocks will remain highly selective. Almost half of our health-care exposure was via laboratory and medical-devices companies. Our technology weighting was in the neutral to slightly underweighted range. We are firm believers in the long-term secular story for technology -- we see the group as key to productivity growth, and the Internet continues to 1 expand -- but we have some nearer-term concerns. Based on our contact with a number of company executives, a resumption in capital expenditures on technology does not appear to be on the immediate horizon. However, we believe that the group's earnings recovery will occur in due course. Looking out over the balance of 2002, we see grounds for optimism and grounds for concern. On the negative side, terrorist activity could return (outside of the Middle East), unsettling markets. Another worry is higher oil costs; if the trend continues, the toll on the economy might be significant. And we have general concerns regarding profit visibility. Stocks could tread water or drift lower until earnings growth appears firm and sustainable. Grounds for optimism in our view include a much better inventory profile, especially within the technology area. Meanwhile, many companies -- for example, many industrial-type companies -- have made significant cost-cutting moves, and are operating well below capacity. The combination of those factors could lead to significant margin improvements as sales and revenues eventually pick up. Finally, we have a generally favorable outlook on inflation and interest rates. Even if the Federal Reserve (the "Fed") does raise rates this year, we believe it will be in small increments, and done only in the Fed's conviction that the economy is indeed strengthening. For our part, we will continue to strive to identify companies we deem to have reasonable valuations and good long-term growth prospects. Susan L. Black Jeffrey T. Rose Co-Portfolio Manager Co-Portfolio Manager
SUMMARY OF ANNUALIZED TOTAL RETURNS (4/30/2002) ------------------------------------------------------------------------------ SINCE INCEPTION CLASS ONE YEAR FIVE YEAR TEN YEAR INCEPTION DATE ---------- ---------- ----------- ---------- ----------- ----------- Common -28.13% 7.46% 12.41% 10.98% 8/17/1987 Advisor -28.49% 6.95% 11.87% 10.60% 8/17/1987
2 - ------------------ (1) Name changed from Credit Suisse Warburg Pincus Capital Appreciation Fund effective December 12, 2001. (2) The benchmark for the Capital Appreciation Fund changed from the S&P 500 Index to the Russell 1000 Growth Index on 11/15/2001 to better reflect the Fund's emphasis on growth stocks. The S&P 500 Index is an unmanaged index (with no defined investment objective) of common stocks, includes reinvestment of dividends, and is a registered trademark of McGraw-Hill Co., Inc. The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3,000 Index, which measures the performance of 3,000 of the largest U.S. companies by market capitalization. Investors cannot invest directly in an index. 3 CREDIT SUISSE EMERGING GROWTH FUND PORTFOLIO MANAGERS' LETTER April 30, 2002 May 28, 2002 Dear Shareholder: For the six months ended April 30, 2002, the Common Class and Advisor Class shares of Credit Suisse Emerging Growth Fund(1) (the "Fund") had gains of 7.38% and 7.12%, respectively, vs. gains of 7.52% for the Russell 2500 Growth Index(2) and 6.97% for the Russell Midcap Growth Index.(2) The period was a positive one for growth stocks, though the gains are attributable to a strong showing early on. Over the January-through-April span, investors seemed concerned that while the economy was on the mend, perhaps too much optimism had been factored into share prices. Against this backdrop, the Fund performed roughly in line with its benchmarks. One factor that aided the Fund's return was its overweighting in health-care-services stocks (e.g., hospitals), as these names had good showings. The Fund also benefited from its overweighting in the auto & transportation sector. On the negative side, stocks that restrained the Fund somewhat -- in relative terms -- included its energy and consumer-discretionary holdings. In terms of sector allocation, we maintained an overweighting in health care as a whole. We shifted our bias more in favor of the group's services names, based on valuation factors as well as some company-specific developments. We believe that the industry's fundamentals will likely remain sound and we expect that services, devices and drug stocks will all remain well-represented in the portfolio over the intermediate term at least. We remained roughly neutrally weighted in technology. In our view, the inventory backdrop for these companies has become more supportive, and will continue to improve barring a sudden slowdown in the economy. That said, valuations here appear generally on the high side in our judgment, and hence we will remain quite selective in our approach. Elsewhere of note, our consumer exposure continued to include retail stocks, several of which we added late in the period. The Fund's weighting in financial services increased in the period, though this was largely due to stock-price appreciation. We maintained smaller but still-noteworthy positions in the energy, telecommunications, media and engineering sectors. Looking ahead, we believe that the emerging-growth segment's stalled rally in 2002 through April reflected uncertainty over the magnitude of any economic recovery this year. If the economy expands in the second half of 2002, will the growth level be closer to 2% than 4% on an annualized basis? 4 We are cautiously looking out over the immediate horizon, but we note that small- and mid-cap growth stocks have often outperformed the broader stock market during periods when the economy is pulling out of a recession. Whether this can happen again remains to be seen, but we see no fundamental reasons why the segment would lag larger-cap stocks in a recovery. In any event, we expect stock selection to be quite critical, and we will remain focused on companies we deem to be innovative and well managed and whose stocks we deem reasonably valued given their business prospects. Elizabeth B. Dater Sammy Oh Roger M. Harris Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager INVESTING IN EMERGING-GROWTH COMPANIES ENTAILS SPECIAL RISK CONSIDERATIONS, SUCH AS INVESTING IN THE SECURITIES OF START-UP COMPANIES OR COMPANIES INVOLVED IN "SPECIAL SITUATIONS."
SUMMARY OF ANNUALIZED TOTAL RETURNS (4/30/2002) ------------------------------------------------------------------------------ SINCE INCEPTION CLASS ONE YEAR FIVE YEAR TEN YEAR INCEPTION DATE ---------- ---------- ----------- ---------- ----------- ----------- Common -13.15% 3.37% 9.71% 11.53% 1/21/1988 Advisor -13.55% 3.86% 9.20% 10.29% 6/20/1991
- -------------- (1) Name changed from Credit Suisse Warburg Pincus Emerging Growth Fund effective December 12, 2001. (2) The Russell 2500 Growth Index measures the performance of those companies in the Russell 2500 Index with higher price-to-book values and higher forecasted growth rates. The Russell 2500 Index is composed of the 2,500 smallest companies in the Russell 3000 Index, which measures the performance of the 3,000 largest U.S. companies based on total market capitalization. The Russell 2500 Index represents approximately 22% of the total market capitalization of the Russell 3000 Index. The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also included in the Russell 1000 Growth Index. Investors cannot invest directly in an index. 5 CREDIT SUISSE SMALL CAP GROWTH FUND PORTFOLIO MANAGERS' LETTER April 30, 2002 May 28, 2002 Dear Shareholder: For the six months ended April 30, 2002, the Common Class shares of Credit Suisse Small Cap Growth Fund(1) (the "Fund") had a gain of 11.57%, vs. a gain of 10.40% for the Russell 2000 Growth Index.(2) The period as a whole was a positive one for small-capitalization growth stocks, though the group's gains were generated early on. As 2002 proceeded, growth stocks in general gave back some of their late-2001 gains, as investors questioned how sustainable the U.S. economic recovery might be. Within this environment, the Fund modestly outperformed its benchmark. Stocks that helped the Fund's performance included its health-care holdings -- especially its health-care services names -- and its consumer discretionary companies. One factor that hindered the Fund somewhat, in relative terms at least, was its underweighting in the financial-services sector, which outpaced the broader stock market. We made few noteworthy changes in the Fund with regard to its sector and subsector allocation. Within the technology area, we held a number of software companies, continuing to view them favorably for their potential to benefit as corporations eventually recommit to capital investment. We also held some electronics stocks, though we pared certain holdings to keep our overall weighting in check: These stocks had rallied significantly in late 2001 and early 2002. Elsewhere, we maintained a sizable position in health care. Our holdings included a mix of biotech/emerging pharmaceutical, medical devices and services stocks. We believe that our collective holdings here have attractive diversification aspects, given the Fund's significant exposure to technology and the market's recent tendency for sharp sector rotation. The rest of the Fund remained invested in areas as diverse as media, financial services, energy and retail. Looking ahead, one key unknown is the magnitude of any economic recovery this year. We believe that the recovery now underway could continue in the year's second half, but probably at a more subdued pace compared to growth in 2002's first quarter. While we are cautious for the near term we note that small-cap growth stocks have often outperformed the broader stock market during periods when the economy is pulling out of recession. Whether they can again remains 6 to be seen, but we see no fundamental reasons why the group would lag larger-cap stocks in any recovery. In any event, we expect stock selection to be quite critical, and we will remain focused on companies we deem to be innovative and well managed and whose stocks appear reasonably valued given their longer-term business prospects. Elizabeth B. Dater Sammy Oh Co-Portfolio Manager Co-Portfolio Manager INVESTMENTS IN SMALL COMPANIES MAY BE MORE VOLATILE AND LESS LIQUID THAN INVESTMENTS IN LARGER COMPANIES.
SUMMARY OF ANNUALIZED TOTAL RETURNS (4/30/2002) ----------------------------------------------------- SINCE INCEPTION ONE YEAR FIVE YEAR INCEPTION DATE ---------- ----------- ----------- ------------ -6.43% 14.78% 11.44% 12/31/1996
- ---------------- (1) Name changed from Credit Suisse Warburg Pincus Small Company Growth Fund effective December 12, 2001. (2) The Russell 2000 Growth Index is an unmanaged index (with no defined investment objective) of those securities in the Russell 2000 Index with a greater-than-average growth orientation. The Russell 2000 Growth Index includes reinvestment of dividends, and is compiled by Frank Russell Company. Investors cannot invest directly in an index. 7 CREDIT SUISSE CAPITAL APPRECIATION FUND SCHEDULE OF INVESTMENTS April 30, 2002 (Unaudited)
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (97.1%) ALCOHOL (2.0%) Anheuser-Busch Companies, Inc. 304,300 $ 16,127,900 ------------ BANKS (2.6%) Charter One Financial, Inc. 122,100 4,319,898 Wells Fargo & Co. 333,900 17,078,985 ------------ 21,398,883 ------------ COMPUTER HARDWARE & BUSINESS MACHINES (2.9%) Cisco Systems, Inc.(1) 767,300 11,240,945 Dell Computer Corp.(1) 463,600 12,211,224 ------------ 23,452,169 ------------ COMPUTER SOFTWARE (10.4%) Adobe Systems, Inc. 201,400 8,047,944 International Business Machines Corp. 84,300 7,060,968 Intuit, Inc.(1) 219,800 8,611,764 Microsoft Corp.(1) 626,300 32,730,438 Oracle Corp.(1) 550,400 5,526,016 Rational Software Corp.(1) 512,700 7,470,039 SAP AG ADR 461,600 15,048,160 ------------ 84,495,329 ------------ DEPARTMENT STORES (3.7%) Target Corp. 360,600 15,740,190 Wal-Mart Stores, Inc. 259,800 14,512,428 ------------ 30,252,618 ------------ DIVERSIFIED MANUFACTURING (2.6%) General Electric Co. 669,400 21,119,570 ------------ DRUGS (12.4%) Genentech, Inc.(1) 271,400 9,634,700 Gilead Sciences, Inc.(1) 206,200 6,416,944 IDEC Pharmaceuticals Corp.(1) 219,400 12,056,030 King Pharmaceuticals, Inc.(1) 529,533 16,595,564 Medimmune, Inc.(1) 205,800 6,873,720 Pfizer, Inc. 906,175 32,939,461 Wyeth 287,000 16,359,000 ------------ 100,875,419 ------------ ELECTRONIC EQUIPMENT (6.2%) Agilent Technologies, Inc.(1) 180,800 5,433,040 Danaher Corp. 263,800 18,882,804 Harris Corp. 399,500 14,465,895 Teradyne, Inc.(1) 339,200 11,176,640 ------------ 49,958,379 ------------ ENTERTAINMENT (5.3%) Carnival Corp. 212,400 7,075,044 Viacom, Inc. Class B(1) 765,392 36,049,963 ------------ 43,125,007 ------------
See Accompanying Notes to Financial Statements. 8
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (CONTINUED) FINANCIAL SERVICES (2.0%) Freddie Mac 249,200 $ 16,285,220 ------------ FOOD & BEVERAGE (1.9%) PepsiCo, Inc. 288,500 14,973,150 ------------ INDUSTRIAL PARTS (3.1%) Tyco International, Ltd. 665,500 12,278,475 United Technologies Corp. 184,800 12,967,416 ------------ 25,245,891 ------------ INFORMATION SERVICE (3.6%) AOL Time Warner, Inc.(1) 791,300 15,050,526 Omnicom Group, Inc. 165,300 14,420,772 ------------ 29,471,298 ------------ MEDIA (5.8%) Clear Channel Communications, Inc.(1) 215,200 10,103,640 Comcast Corp. Special Class A(1) 547,200 14,637,600 Fox Entertainment Group, Inc. Class A(1) 396,800 9,364,480 Liberty Media Corp. Class A(1) 859,100 9,192,370 Univision Communications, Inc.(1) 100,500 4,015,980 ------------ 47,314,070 ------------ MEDICAL PRODUCTS & SUPPLIES (12.2%) Abbott Laboratories 481,300 25,966,135 Baxter International, Inc. 345,500 19,658,950 Biomet, Inc.(1) 399,500 11,277,885 Johnson & Johnson 357,382 22,822,415 Medtronic, Inc. 441,200 19,717,228 ------------ 99,442,613 ------------ OIL SERVICES (1.1%) Transocean Sedco Forex, Inc. 130,200 4,622,100 Weatherford International, Inc.(1) 93,200 4,647,884 ------------ 9,269,984 ------------ PROPERTY & CASUALTY INSURANCE (5.2%) American International Group, Inc. 357,421 24,704,940 Berkshire Hathaway, Inc. Class B(1) 7,210 17,541,930 ------------ 42,246,870 ------------ RESTAURANTS (0.9%) Wendy's International, Inc. 203,500 7,610,900 ------------
See Accompanying Notes to Financial Statements. 9
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (CONTINUED) SEMICONDUCTOR (9.3%) Analog Devices, Inc.(1) 459,400 $ 16,979,424 ATI Technologies, Inc.(1) 345,900 3,528,180 Intel Corp. 1,061,900 30,380,959 Texas Instruments, Inc. 385,300 11,917,329 Xilinx, Inc.(1) 347,600 13,125,376 ------------ 75,931,268 ------------ SPECIALTY RETAIL (2.7%) Home Depot, Inc. 469,150 21,754,485 ------------ TRUCKING, SHIPPING, AIR FREIGHT (1.2%) United Parcel Service, Inc. 160,700 9,648,428 ------------ TOTAL COMMON STOCKS (Cost $801,168,028) 789,999,451 ------------ PREFERRED STOCK (0.0%) NON-CONVERTIBLE PREFERRED STOCK (0.0%) Fresenius National Medical Care Class D (Cost $18,553)(1) 90,000 6,390 ------------ RIGHTS (0.0%) ENERGY (0.0%) Bonneville Pacific Corp. (Cost $0)(1),(2) 16,883 0 ------------ PAR (000) ----- SHORT-TERM INVESTMENT (3.0%) State Street Bank & Trust Co. Euro Time Deposit 1.750% 5/01/02 (Cost $24,039,000) $24,039 24,039,000 ------------ TOTAL INVESTMENTS AT VALUE (100.1%) (Cost $825,225,581(3)) 814,044,841 LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%) (459,318) ------------ NET ASSETS (100.0%) $813,585,523 ============
INVESTMENT ABBREVIATIONS ADR = American Depository Receipt (1) Non-income producing security. (2) Fair value determined by management. (3) Also cost for federal income tax purposes. See Accompanying Notes to Financial Statements. 10 CREDIT SUISSE EMERGING GROWTH FUND SCHEDULE OF INVESTMENTS April 30, 2002 (Unaudited)
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (90.4%) APPAREL, TEXTILES (2.4%) Jones Apparel Group, Inc.(1) 500,200 $ 19,482,790 ------------ CHEMICALS (1.7%) Cabot Corp. 314,400 9,369,120 Owens-Illinois, Inc.(1) 285,600 4,575,312 ------------ 13,944,432 ------------ CLOTHING STORES (4.9%) Abercrombie & Fitch Co.(1) 370,100 11,103,000 Talbots, Inc. 262,900 9,043,760 TJX Companies, Inc. 441,500 19,240,570 ------------ 39,387,330 ------------ COMPUTER HARDWARE & BUSINESS MACHINES (0.7%) Symbol Technologies, Inc. 631,200 5,339,952 ------------ COMPUTER SOFTWARE (8.5%) Actuate Corp.(1) 626,000 3,536,900 Epiq Systems, Inc.(1) 594,000 10,127,700 Informatica Corp.(1) 443,900 3,520,127 Manugistics Group, Inc.(1) 1,154,600 18,196,496 National Instruments Corp.(1) 240,065 9,225,698 NetIQ Corp.(1) 421,500 9,454,245 Netwolves Corp. 1,000,000 1,881,000 Network Associates, Inc.(1) 725,500 12,877,625 ------------ 68,819,791 ------------ CONSUMER DURABLES (1.2%) Granite Construction, Inc. 404,500 9,347,995 ------------ DRUGS (11.4%) Affymetrix, Inc.(1) 426,600 10,822,842 AmerisourceBergen Corp. 151,700 11,756,750 Biovail Corp. ADR(1) 147,700 5,578,629 ICN Pharmaceuticals, Inc. 381,400 10,549,524 IDEC Pharmaceuticals Corp.(1) 220,300 12,105,485 Mylan Laboratories, Inc. 355,300 9,408,344 Scios, Inc.(1) 550,000 17,011,500 Sepracor, Inc.(1) 558,900 7,075,674 Shire Pharmaceuticals Group PLC(1) 364,300 8,087,460 ------------ 92,396,208 ------------ ELECTRONIC EQUIPMENT (3.0%) ADC Telecommunications, Inc.(1) 1,955,900 7,608,451 Comverse Technology, Inc.(1) 517,300 6,223,119 Polycom, Inc.(1) 143,550 2,960,001 Teradyne, Inc.(1) 213,600 7,038,120 ------------ 23,829,691 ------------
See Accompanying Notes to Financial Statements. 11
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (CONTINUED) ENERGY RESERVES & PRODUCTION (4.9%) Ocean Energy, Inc. 811,000 $ 17,355,400 Pogo Producing Co. 649,000 22,221,760 ------------ 39,577,160 ------------ FINANCIAL SERVICES (3.1%) Indymac Bancorp, Inc.(1) 990,400 25,007,600 ------------ INDUSTRIAL SERVICES (3.9%) ITT Educational Services, Inc.(1) 511,950 25,930,267 On Assignment, Inc.(1) 263,020 5,347,197 ------------ 31,277,464 ------------ INFORMATION SERVICE (3.1%) Express Scripts, Inc. Class A(1) 243,800 15,410,598 Openwave Systems, Inc.(1) 1,640,100 9,381,372 ------------ 24,791,970 ------------ LEISURE (1.8%) Mattel, Inc. 722,300 14,908,272 ------------ LIFE & HEALTH INSURANCE (2.4%) Anthem, Inc.(1) 282,000 19,232,400 ------------ MEDIA (3.9%) Charter Communications, Inc. Class A(1) 1,031,300 8,446,347 Cox Radio, Inc. Class A(1) 471,900 13,515,216 Westwood One, Inc.(1) 258,600 9,309,600 ------------ 31,271,163 ------------ MEDICAL PROVIDERS & SERVICES (10.6%) Community Health Care(1) 740,000 21,474,800 Health Net, Inc.(1) 817,400 24,235,910 Manor Care, Inc.(1) 338,700 8,684,268 Mid Atlantic Medical Services, Inc.(1) 341,800 12,451,774 Quest Diagnostics, Inc.(1) 204,100 18,762,913 ------------ 85,609,665 ------------ MINING & METALS (1.3%) Fluor Corp. 246,100 10,171,313 ------------ MOTOR VEHICLES & PARTS (3.6%) Borg-Warner, Inc. 227,900 14,239,192 Lear Corp.(1) 295,400 15,186,514 ------------ 29,425,706 ------------ PROPERTY & CASUALTY INSURANCE (5.9%) Ace, Ltd. 444,500 19,344,640 Ambac Financial Group, Inc. 194,300 12,213,698 MBIA, Inc. 297,000 16,017,210 ------------ 47,575,548 ------------
See Accompanying Notes to Financial Statements. 12
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (CONTINUED) SECURITIES & ASSET MANAGEMENT (0.9%) Legg Mason, Inc. 139,000 $ 6,983,360 ------------ SEMICONDUCTOR (6.2%) Agere Systems, Inc. Class A(1) 1,750,000 7,420,000 Altera Corp.(1) 376,000 7,730,560 Broadcom Corp. Class A(1) 212,100 7,317,450 LAM Research Corp.(1) 318,300 8,167,578 National Semiconductor Corp.(1) 389,800 12,286,496 Novellus Systems, Inc.(1) 155,200 7,356,480 ------------ 50,278,564 ------------ SPECIALTY RETAIL (5.0%) Caremark Rx, Inc.(1) 716,600 15,406,900 Dollar Tree Stores, Inc.(1) 660,300 25,183,842 ------------ 40,590,742 ------------ TOTAL COMMON STOCKS (Cost $611,421,015) 729,249,116 ------------ PREFERRED STOCKS (0.1%) ENERGY RESERVES & PRODUCTION (0.0%) Chaparral Resources, Inc.(1) 13,889 31,250 ------------ FOOD & BEVERAGE (0.0%) Foodtrader.Com(1),(2),(4) 966,183 48,309 ------------ HAIRCARE SERVICES (0.1%) Celletra, Ltd.(1),(2),(4) 1,102,524 466,919 ------------ TELECOMMUNICATIONS (0.0%) Opal Concepts, Inc. Series B(1),(2),(4) 792,603 199,998 ------------ TOTAL PREFERRED STOCKS (Cost $12,249,999) 746,476 ------------ PAR (000) ----- CORPORATE BONDS (1.0%) COMMUNICATIONS & MEDIA (1.0%) Orckit Communications, Inc. 5.75% 4/01/05 $15,000 8,418,750 TimesSquareMedia.com, Inc.(2),(3),(4) 6.00% 11/22/02 2,900 0 ------------ TOTAL CORPORATE BONDS (Cost $17,900,000) 8,418,750 ------------ WARRANT (0.0%) HEALTHCARE (0.0%) Women First Healthcare, Inc. (Cost $0)(1),(2),(4) 5,516 0 ------------
See Accompanying Notes to Financial Statements. 13
PAR (000) VALUE ----- ----- SHORT-TERM INVESTMENT (7.5%) State Street Bank & Trust Co. Euro Time Deposit 1.750% 5/01/02 (Cost $60,883,000) $60,883 $ 60,883,000 ------------ TOTAL INVESTMENTS AT VALUE (99.0%) (Cost $702,454,014(5)) 799,297,342 OTHER ASSETS IN EXCESS OF LIABILITIES (1.0%) 7,844,841 ------------ NET ASSETS (100.0%) $807,142,183 ============
INVESTMENT ABBREVIATIONS ADR = American Depository Receipt (1) Non-income producing security. (2) Restricted security valued in good faith by management. (3) Bond is currently in default. (4) Illiquid security. (5) Also cost for federal income tax purposes. See Accompanying Notes to Financial Statements. 14 CREDIT SUISSE SMALL CAP GROWTH FUND SCHEDULE OF INVESTMENTS April 30, 2002 (Unaudited)
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (89.8%) APPAREL, TEXTILES (1.2%) Tommy Hilfiger Corp(1) 36,000 $ 562,680 ------------ BANKS (0.8%) Westamerica Bancorp. 8,100 358,425 ------------ CLOTHING STORES (2.7%) Hot Topic, Inc.(1) 24,350 549,336 Pacific Sunwear of California, Inc.(1) 28,800 719,424 ------------ 1,268,760 ------------ COMPUTER HARDWARE & BUSINESS MACHINES (1.3%) Adaptec, Inc.(1) 41,700 612,990 ------------ COMPUTER SOFTWARE (10.5%) Agile Software Corp.(1) 30,900 283,044 Caminus Corp. 24,300 453,681 Chordiant Software, Inc.(1) 101,000 453,490 Documentum, Inc.(1) 23,800 462,196 E.piphany, Inc.(1) 30,000 180,600 Informatica Corp.(1) 34,800 275,964 Legato Systems, Inc.(1) 44,000 303,600 Manugistics Group, Inc.(1) 66,200 1,043,312 NetIQ Corp.(1) 20,300 455,329 Precise Software Solutions, Ltd.(1) 2.1,400 281,196 Radiant Systems, Inc.(1) 49,400 543,894 Seachange International, Inc.(1) 18,900 210,357 ------------ 4,946,663 ------------ CONSUMER DURABLES (0.7%) Granite Construction, Inc. 13,750 317,763 ------------ DRUGS (9.6%) Affymetrix, Inc.(1) 30,500 773,785 Alkermes, Inc.(1) 37,500 755,250 Celgene Corp.(1) 9,500 187,910 Cell Therapeutics, Inc.(1) 10,300 127,926 Cubist Pharmaceuticals, Inc.(1) 13,000 181,740 K-V Pharmaceutical Co.(1) 17,200 494,500 Lynx Therapeutics, Inc.(1) 8,400 12,432 Medicis Pharmaceutical Corp. Class A.(1) 15,500 830,025 OSI Pharmaceuticals, Inc.(1) 6,300 201,411 PRAECIS Pharmaceuticals, Inc.(1) 25,300 90,574 Scios, Inc.(1) 16,000 494,880 Sepracor, Inc.(1) 32,400 410,184 ------------ 4,560,617 ------------ ELECTRONIC EQUIPMENT (3.8%) Aeroflex, Inc.(1) 43,100 602,538 APW, Ltd.(1) 46,100 3,688 Fisher Scientific International, Inc.(1) 17,800 506,944 Plexus Corp.(1) 18,867 471,486
See Accompanying Notes to Financial Statements. 15
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (CONTINUED) ELECTRONIC EQUIPMENT (CONTINUED) Polycom, Inc.(1) 8,600 $ 177,332 Tekelec.(1) 3,700 39,146 ------------ 1,801,134 ------------ ENERGY RESERVES & PRODUCTION (5.0%) Newfield Exploration Co.(1) 13,800 522,330 Pogo Producing Co. 19,800 677,952 Spinnaker Exploration Co.(1) 12,300 527,055 Stone Energy Corp.(1) 14,700 623,280 ------------ 2,350,617 ------------ ENTERTAINMENT (1.2%) Six Flags, Inc. 32,200 589,260 ------------ FINANCIAL SERVICES (1.0%) Indymac Bancorp, Inc.(1) 19,600 494,900 ------------ FOOD & BEVERAGE (1.7%) Hain Celestial Group, Inc.(1) 15,500 284,115 Performance Food Group Co.(1) 14,500 522,870 ------------ 806,985 ------------ INDUSTRIAL PARTS (1.5%) Brooks Automation, Inc.(1) 8,300 295,895 Cymer, Inc(1) 8,600 406,522 ------------ 702,417 ------------ INDUSTRIAL SERVICES (1.3%) Education Management Corp.(1) 14,200 612,304 ------------ INFORMATION SERVICE (3.6%) Doubleclick, Inc.(1) 42,200 327,472 Getty Images, Inc.(1) 17,000 591,770 Matrixone, Inc.(1) 36,700 253,230 Openwave Systems, Inc.(1) 86,300 493,636 QRS Corp.(1) 5,650 63,280 ------------ 1,729,388 ------------ INTERNET (0.4%) Interwoven, Inc.(1) 37,500 158,250 Planetweb, Inc.(1),(2),(3) 27,600 19,596 ------------ 177,846 ------------ LEISURE (1.0%) Penn National Gaming, Inc.(1) 12,800 492,032 ------------ MEDIA (5.8%) Emmis Communications Corp. 40,300 1,171,521 Entercom Communications Corp.(1) 16,800 877,800 Insight Communications Company, Inc.(1) 22,900 355,179 Mediacom Communications Corp.(1) 33,300 333,000 ------------ 2,737,500 ------------
See Accompanying Notes to Financial Statements. 16
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (CONTINUED) MEDICAL PRODUCTS & SUPPLIES (2.1%) Henry Schein, Inc.(1) 10,400 $ 494,936 Therasense, Inc.(1) 20,800 520,000 ------------ 1,014,936 ------------ MEDICAL PROVIDERS & SERVICES (15.1%) AdvancePCS(1) 26,400 892,584 Alliance Imaging, Inc.(1) 34,600 452,914 Apria Healthcare Group, Inc.(1) 20,100 522,399 Beverly Enterprises, Inc.(1) 20,400 175,440 Community Health Care.(1) 27,200 789,344 Coventry Health Care, Inc. 20,700 652,050 Davita, Inc.(1) 18,700 484,704 LifePoint Hospitals, Inc.(1) 19,200 806,400 Medical Staffing Network Holdings, Inc.(1) 14,700 356,328 Mid Atlantic Medical Services, Inc.(1) 20,000 728,600 Province Healthcare Co.(1) 24,800 955,048 Renal Care Group, Inc.(1) 10,400 369,200 ------------ 7,185,011 ------------ METALS & MINING (1.2%) Crown Cork & Seal Company, Inc. 52,500 591,150 ------------ MOTOR VEHICLES & PARTS (1.0%) Borg-Warner, Inc. 7,300 456,104 ------------ OIL SERVICES (0.8%) Remington Oil & Gas Corp.(1) 19,000 386,650 ------------ PROPERTY & CASUALTY INSURANCE (1.0%) HCC Insurance Holdings, Inc.(1) 8,000 468,000 ------------ PUBLISHING (0.9%) Scholastic Corp.(1) 8,300 421,059 ------------ RESTAURANTS (0.4%) CKE Restaurants, Inc.(1) 16,900 209,560 ------------ SECURITIES & ASSET MANAGEMENT (1.7%) Affiliated Managers Group, Inc.(1) 5,700 362,520 Raymond James Financial, Inc. 12,900 431,376 ------------ 793,896 ------------ SEMICONDUCTOR (4.7%) Anadigics, Inc.(1) 36,200 367,068 Cirrus Logic, Inc.(1) 24,700 300,105 Exar Corp.(1) 12,800 255,232 Photronics, Inc.(1) 17,700 583,215
See Accompanying Notes to Financial Statements. 17
NUMBER OF SHARES VALUE --------- ----- COMMON STOCKS (CONTINUED) SEMICONDUCTOR (CONTINUED) PRI Automation, Inc.(1) 15,900 $ 295,581 Varian Semiconductor Equipment Associates, Inc.(1) 9,100 425,152 ----------- 2,226,353 ----------- SPECIALTY RETAIL (7.8%) Barnes & Noble, Inc.(1) 18,500 559,070 Cost Plus, Inc.(1) 19,200 565,440 Duane Reads, Inc.(1) 15,200 482,600 Gymboree Corp.(1) 34,100 621,984 Linens 'n Things, Inc.(1) 19,300 669,710 ValueVision International, Inc. Class A(1) 24,000 453,360 Yankee Candle Company, Inc. 16,400 359,816 ----------- 3,711,980 ----------- TOTAL COMMON STOCKS (Cost $42,651,789) 42,586,980 ----------- PAR (000) ----- SHORT-TERM INVESTMENT (10.0%) State Street Bank & Trust Co. Euro Time Deposit 1.750% 5/01/02 (Cost $4,759,000) $4,759 4,759,000 TOTAL INVESTMENTS AT VALUE (99.8%) (Cost $47,410,789(4)) 47,345,980 OTHER ASSETS IN EXCESS OF LIABILITIES (0.2%) 100,032 ----------- NET ASSETS (100.0%) $47,446,012 ===========
(1) Non-income producing security. (2) Illiquid security. (3) Restricted security valued in good faith by management. (4) Also cost for federal income tax purposes. See Accompanying Notes to Financial Statements. 18 This page intentionally left blank CREDIT SUISSE FUNDS STATEMENTS OF ASSETS AND LIABILITIES April 30, 2002 (Unaudited)
CAPITAL EMERGING SMALL CAP APPRECIATION FUND GROWTH FUND GROWTH FUND ----------------- ----------- ----------- ASSETS Investments at value (Cost $825,225,581, $702,454,014, and $47,410,789, respectively) $ 814,044,841 $ 799,297,342 $ 47,345,980 Cash 922 584 145 Receivable for fund shares sold 214,515 99,011 90,722 Dividend and interest receivable 130,780 107,841 1,326 Receivable for investments sold -- 8,872,054 28,449 Prepaid expenses and other assets 183,118 82,404 33,584 -------------- ------------- ------------ Total Assets 814,574,176 808,459,236 47,500,206 -------------- ------------- ------------ LIABILITIES Advisory fee payable 496,744 604,950 8,105 Administrative services fee payable 121,750 115,121 7,094 Distribution fee payable 35,070 34,607 9,881 Directors fee payable -- -- 1,060 Payable for fund shares redeemed 27,391 -- -- Payable for investments purchased -- 87,712 12,530 Other accrued expenses payable 307,698 474,663 15,524 -------------- ------------- ------------ Total Liabilities 988,653 1,317,053 54,194 -------------- ------------- ------------ NET ASSETS Capital stock, $0.001 par value 52,877 32,015 2,765 Paid-in capital 1,118,383,249 989,661,830 60,883,721 Accumulated net investment loss (2,256,207) (4,845,834) (277,068) Accumulated net realized loss from investments (291,413,656) (274,549,156) (13,098,597) Net unrealized appreciation (depreciation) from investments (11,180,740) 96,843,328 (64,809) -------------- ------------- ------------ Net Assets $ 813,585,523 $ 807,142,183 $ 47,446,012 ============== ============= ============ COMMON SHARES Net assets $ 789,895,737 $ 733,806,639 $ 47,097,265 Shares outstanding 51,295,427 28,955,227 2,744,500 -------------- ------------- ------------ Net asset value, offering price and redemption price per share $15.40 $25.34 $17.16 ====== ====== ====== ADVISOR SHARES Net assets $ 23,574,559 $ 73,334,431 $ N/A Shares outstanding 1,573,969 3,059,250 N/A -------------- ------------- ------------ Net asset value, offering price and redemption price per share $14.98 $23.97 $ N/A ====== ====== ====== A SHARES Net assets $ 49,714 $ 1,113 $ 348,747 Shares outstanding 3,233 44 20,322 -------------- ------------- ------------ Net asset value and redemption price per share $15.38 $25.29 $17.16 ====== ====== ====== Maximum offering price per share (net asset value/(1-5.75%)) $16.32 $26.83 $18.21 ====== ====== ====== B SHARES Net assets $ 22,042 $ N/A $ N/A Shares outstanding 1,438 N/A N/A -------------- ------------- ------------ Net asset value and offering price per share $15.33 $ N/A $ N/A ====== ====== ====== C SHARES Net assets $ 43,471 $ N/A $ N/A Shares outstanding 2,835 N/A N/A -------------- ------------- ------------ Net asset value and offering price per share $15.33 $ N/A $ N/A ====== ====== ======
See Accompanying Notes to Financial Statements. 20 CREDIT SUISSE FUNDS STATEMENTS OF OPERATIONS For the Six Months Ended April 30, 2002 (Unaudited)
CAPITAL EMERGING SMALL CAP APPRECIATION FUND GROWTH FUND GROWTH FUND ----------------- ----------- ----------- INVESTMENT INCOME Dividends $ 2,703,075 $ 914,597 $ 10,405 Interest 217,020 698,684 29,593 Foreign taxes withheld -- (11,844) -- ------------- ----------- ---------- Total investment income 2,920,095 1,601,437 39,998 ------------- ----------- ---------- EXPENSES Investment advisory fees 3,303,375 4,144,284 226,475 Administrative services fees 804,989 786,404 41,374 Shareholder servicing/Distribution fees 65,590 232,608 56,619 Transfer agent fees 713,297 955,173 62,620 Printing fees 101,284 125,990 8,520 Registration fees 42,299 31,500 21,433 Custodian fees 41,031 52,386 14,599 Legal fees 39,209 39,943 22,029 Audit fees 25,608 28,414 6,112 Insurance expense 16,961 20,364 5,614 Directors fees 6,370 6,951 6,633 Interest expense 3,157 5,955 282 Miscellaneous expense 13,132 17,299 3,283 ------------- ----------- ---------- Total expenses 5,176,302 6,447,271 475,593 Less: fees waived -- -- (158,527) ------------- ----------- ---------- Net expenses 5,176,302 6,447,271 317,066 ------------- ----------- ---------- Net investment loss (2,256,207) (4,845,834) (277,068) ------------- ----------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments (108,512,946) 31,703,001 (653,431) Net change in unrealized appreciation (depreciation) from investments 66,428,032 50,615,757 5,040,705 ------------- ----------- ---------- Net realized and unrealized gain (loss) from investments (42,084,914) 82,318,758 4,387,274 ------------- ----------- ---------- Net increase (decrease) in net assets resulting from operations $ (44,341,121) $77,472,924 $4,110,206 ============= =========== ==========
See Accompanying Notes to Financial Statements. 21 CREDIT SUISSE FUNDS STATEMENTS OF CHANGES IN NET ASSETS
CAPITAL APPRECIATION FUND ----------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR APRIL 30, 2002 ENDED (UNAUDITED) OCTOBER 31, 2001 ------------------ ---------------- FROM OPERATIONS Net investment loss $ (2,256,207) $ (1,389,226) Net realized gain (loss) from investments (108,512,946) (179,638,470) Net change in unrealized appreciation (depreciation) from investments 66,428,032 (438,019,325) ------------- -------------- Net increase (decrease) in net assets resulting from operations (44,341,121) (619,047,021) ------------- -------------- FROM DISTRIBUTIONS Distributions from net realized gains Common Class shares (64,750) (232,592,867) Advisor Class shares (1,962) (4,525,794) ------------- -------------- Net decrease in net assets from distributions (66,712) (237,118,661) ------------- -------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 178,695,624 352,601,406 Reinvestment of distributions 64,408 229,020,605 Net asset value of shares redeemed (245,883,196) (452,544,375) ------------- -------------- Net increase (decrease) in net assets from capital share transactions (67,123,164) 129,077,636 ------------- -------------- Net increase (decrease) in net assets (111,530,997) (727,088,046) NET ASSETS Beginning of period 925,116,520 1,652,204,566 ------------- -------------- End of period $ 813,585,523 $ 925,116,520 ============= ============== ACCUMULATED NET INVESTMENT LOSS $ (2,256,207) $ -- ============= ==============
22
EMERGING GROWTH FUND ---------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR APRIL 30, 2002 ENDED (UNAUDITED) OCTOBER 31, 2001 ------------------ ---------------- FROM OPERATIONS Net investment loss $ (4,845,834) $ (11,853,322) Net realized gain (loss) from investments 31,703,001 (296,964,892) Net change in unrealized appreciation (depreciation) from investments 50,615,757 (623,254,010) ------------- --------------- Net increase (decrease) in net assets resulting from operations 77,472,924 (932,072,224) ------------- --------------- FROM DISTRIBUTIONS Distributions from net realized gains Common Class shares (98,422) (351,030,311) Advisor Class shares (12,022) (47,450,198) ------------- --------------- Net decrease in net assets from distributions (110,444) (398,480,509) ------------- --------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 91,073,594 310,078,010 Reinvestment of distributions 109,170 393,114,403 Net asset value of shares redeemed (341,075,875) (785,506,360) ------------- --------------- Net increase (decrease) in net assets from capital share transactions (249,893,111) (82,313,947) ------------- --------------- Net increase (decrease) in net assets (172,530,631) (1,412,866,680) NET ASSETS Beginning of period 979,672,814 2,392,539,494 ------------- --------------- End of period $ 807,142,183 $ 979,672,814 ============= =============== ACCUMULATED NET INVESTMENT LOSS $ (4,845,834) $ -- ============= =============== SMALL CAP GROWTH FUND ---------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR APRIL 30, 2002 ENDED (UNAUDITED) OCTOBER 31, 2001 ------------------ ---------------- FROM OPERATIONS Net investment loss $ (277,068) $ (426,231) Net realized gain (loss) from investments (653,431) (10,779,495) Net change in unrealized appreciation (depreciation) from investments 5,040,705 (5,963,660) ------------ ------------ Net increase (decrease) in net assets resulting from operations 4,110,206 (17,169,386) ------------ ------------ FROM DISTRIBUTIONS Distributions from net realized gains Common Class shares -- -- Advisor Class shares -- -- ------------ ------------ Net decrease in net assets from distributions -- -- ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares 40,823,674 66,230,181 Reinvestment of distributions -- -- Net asset value of shares redeemed (33,932,717) (60,515,458) ------------ ------------ Net increase (decrease) in net assets from capital share transactions 6,890,957 5,714,723 ------------ ------------ Net increase (decrease) in net assets 11,001,163 (11,454,663) NET ASSETS Beginning of period 36,444,849 47,899,512 ------------ ------------ End of period $ 47,446,012 $ 36,444,849 ============ ============ ACCUMULATED NET INVESTMENT LOSS $ (277,068) $ -- ============ ============
See Accompanying Notes to Financial Statements. 23 CREDIT SUISSE CAPITAL APPRECIATION FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2002 ------------------------------------------------------------ (UNAUDITED) 2001 2000 1999 1998 1997 -------------- -------- ---------- ---------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 16.23 $ 30.57 $ 25.82 $ 19.52 $ 21.09 $ 17.95 -------- -------- ---------- ---------- -------- -------- INVESTMENT OPERATIONS Net investment income (loss) (0.04) (0.02) (0.05) (0.05) 0.01 0.11 Net gain (loss) on investments (both realized and unrealized) (0.79) (10.04) 7.72 7.27 2.31 4.93 -------- -------- ---------- ---------- -------- -------- Total from investment operations (0.83) (10.06) 7.67 7.22 2.32 5.04 -------- -------- ---------- ---------- -------- -------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income -- -- -- (0.01) (0.08) (0.10) Distributions from net realized gains (0.00)(1) (4.28) (2.92) (0.91) (3.81) (1.80) -------- -------- ---------- ---------- -------- -------- Total dividends and distributions -- (4.28) (2.92) (0.92) (3.89) (1.90) -------- -------- ---------- ---------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 15.40 $ 16.23 $ 30.57 $ 25.82 $ 19.52 $ 21.09 ======== ======== ========== ========== ======== ======== Total return (5.11)%(2) (37.59)% 31.50% 38.28% 12.75% 30.98% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $789,896 $899,234 $1,618,147 $1,005,670 $646,657 $587,091 Ratio of expenses to average net assets(3) 1.08%(4) 0.99% 0.98% 1.01% 1.00% 1.01% Ratio of net investment income (loss) to average net assets (0.46)%(4) (0.09)% (0.19)% (0.23)% 0.05% 0.54% Portfolio turnover rate 31% 100% 140% 144% 169% 238%
(1) This amount represents less than $0.01 per share. (2) Non-annualized. (3) 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% for the six months ended April 30, 2002, and .00%, .02%, .01%, .00%, and .01% for the years ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. The Common Class shares' operating expense ratios after reflecting these arrangements were 1.08% for the six months ended April 30, 2002, and .99%, .96%, 1.00%, 1.00% and 1.00% for the years ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. (4) Annualized. See Accompanying Notes to Financial Statements. 24 CREDIT SUISSE CAPITAL APPRECIATION FUND FINANCIAL HIGHLIGHTS (For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2002 ------------------------------------------------------------ (UNAUDITED) 2001 2000 1999 1998 1997 -------------- ------- ------- ------- ------- ------- PER SHARE DATA Net asset value, beginning of period $ 15.82 $ 29.88 $ 25.28 $ 19.21 $ 20.82 $ 17.73 ------- ------- ------- ------- ------- ------- INVESTMENT OPERATIONS Net investment income (loss) (0.08) (0.12) (0.21) (0.20) (0.09) 0.02 Net gain (loss) on investments (both realized and unrealized) (0.76) (9.81) 7.58 7.18 2.29 4.89 ------- ------- ------- ------- ------- ------- Total from investment operations (0.84) (9.93) 7.37 6.98 2.20 4.91 ------- ------- ------- ------- ------- ------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income -- -- -- -- -- (0.01) Distributions from net realized gains (0.00)(1) (4.13) (2.77) (0.91) (3.81) (1.81) ------- ------- ------- ------- ------- ------- Total dividends and distributions -- (4.13) (2.77) (0.91) (3.81) (1.82) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD $ 14.98 $ 15.82 $ 29.88 $ 25.28 $ 19.21 $ 20.82 ======= ======= ======= ======= ======= ======= Total return (5.30)%(2) (37.91)% 30.83% 37.62% 12.23% 30.37% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $23,575 $25,882 $34,058 $29,299 $26,836 $34,601 Ratio of expenses to average net assets(3) 1.58%(4) 1.49% 1.48% 1.51% 1.43% 1.48% Ratio of net investment income (loss) to average net assets (0.96)%(4) (0.62)% (0.69)% (0.73)% 0.39% 0.08% Portfolio turnover rate 31% 100% 140% 144% 169% 238%
(1) This amount represents less than $0.01 per share. (2) Non-annualized. (3) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements resulted in a reduction to the Advisor Class shares' net expense ratio by .00% for the six months ended April 30, 2002, and .00%, .02%, .01%, .00%, and .00% for the years ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. The Advisor Class shares' operating expense ratios after reflecting these arrangements were 1.58% for the six months ended April 30, 2002, and 1.49%, 1.46%, 1.50%, 1.43%, and 1.48% for the years ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. (4) Annualized. See Accompanying Notes to Financial Statements. 25 CREDIT SUISSE EMERGING GROWTH FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2002 ------------------------------------------------------------ (UNAUDITED) 2001 2000 1999 1998 1997 -------------- -------- ---------- ---------- ---------- ---------- PER SHARE DATA Net asset value, beginning of period $ 23.60 $ 50.24 $ 43.73 $ 33.69 $ 39.66 $ 32.80 -------- -------- ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS Net investment loss (0.14) (0.26) (0.33) (0.33) (0.12) (0.19) Net gain (loss) on investments and foreign currency related items (both realized and unrealized) 1.88 (17.89) 13.07 10.37 (3.46) 7.12 -------- -------- ---------- ---------- ---------- ---------- Total from investment operations 1.74 (18.15) 12.74 10.04 (3.58) 6.93 -------- -------- ---------- ---------- ---------- ---------- LESS DISTRIBUTIONS Distributions from net realized gains (0.00)(1) (8.49) (6.23) -- (2.39) (0.07) -------- -------- ---------- ---------- ---------- ---------- NET ASSET VALUE, END OF PERIOD $ 25.34 $ 23.60 $ 50.24 $ 43.73 $ 33.69 $ 39.66 ======== ======== ========== ========== ========== ========== Total return 7.38%(2) (42.61)% 30.60% 29.80% (9.40)% 21.18% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $733,807 $877,983 $2,114,737 $1,592,595 $1,532,521 $1,515,385 Ratio of expenses to average net assets(3) 1.35%(4) 1.28% 1.19% 1.23% 1.22% 1.22% Ratio of net investment loss to average net assets (1.00)%(4) (0.73)% (0.65)% (0.75)% (0.48)% (0.59)% Portfolio turnover rate 38% 177% 191% 154% 92% 87%
(1) This amount represents less than $0.01 per share. (2) Non-annualized. (3) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements resulted in a reduction of the Common Class shares' net expense ratio by .00% for the six months ended April 30, 2002, and .00%, .02%, .01%, .00%, and .01% for the years ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. The Common Class shares' operating expense ratio after reflecting these arrangements were 1.35% for the six months ended April 30, 2002, and 1.28%, 1.17%, 1.22%, 1.22%, and 1.21% for the years ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. (4) Annualized. See Accompanying Notes to Financial Statements. 26 CREDIT SUISSE EMERGING GROWTH FUND FINANCIAL HIGHLIGHTS (For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2002 -------------------------------------------------------- (UNAUDITED) 2001 2000 1999 1998 1997 -------------- -------- -------- -------- -------- -------- PER SHARE DATA Net asset value, beginning of period $ 22.38 $ 48.02 $ 41.99 $ 32.51 $ 38.50 $ 31.99 ------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS Net investment loss (0.23) (0.46) (0.61) (0.65) (0.49) (0.33) Net gain (loss) on investments and foreign currency related item (both realized and unrealized) 1.82 (16.96) 12.61 10.13 (3.11) 6.91 ------- -------- -------- -------- -------- -------- Total from investment operations 1.59 (17.42) 12.00 9.48 (3.60) 6.58 ------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS Distributions from net realized gains (0.00)(1) (8.22) (5.97) -- (2.39) (0.07) ------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD $ 23.97 $ 22.38 $ 48.02 $ 41.99 $ 32.51 $ 38.50 ======= ======== ======== ======== ======== ======== Total return 7.12%(2) (42.88)% 29.96% 29.16% (9.75)% 20.62% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $73,334 $101,690 $277,802 $228,244 $311,023 $457,432 Ratio of expenses to average net assets(3) 1.85%(4) 1.78% 1.69% 1.72% 1.62% 1.63% Ratio of net investment loss to average net assets (1.50)%(4) (1.23)% (1.15)% (1.25)% (0.87)% (1.01)% Portfolio turnover rate 38% 177% 191% 154% 92% 87%
(1) This amount represents less than $0.01 per share. (2) Non-annualized. (3) Interest earned on uninvested cash balances is used to offset portions of the transfer agent expense. These arrangements resulted in a reduction of the Advisor Class shares' net expense ratio by .00% for the six months ended April 30, 2002, and .01%, .02%, .01%, .00%, and .00% for the years ended October 31, 2001, 2000, 1999, 1998, and 1997, resepectively. The Advisor Class shares' operating expense ratio after reflecting these arrangements were 1.85 for the six months ended April 30, 2002, and 1.78%, 1.67%, 1.71%, 1.62%, and 1.63% for the year ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. (4) Annualized. See Accompanying Notes to Financial Statements. 27 CREDIT SUISSE SMALL CAP GROWTH FUND FINANCIAL HIGHLIGHTS (For a Common Class Share of the Fund Outstanding Throughout Each Period)
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31, APRIL 30, 2002 -------------------------------------------------------- (UNAUDITED) 2001 2000 1999 1998 1997(1) -------------- ------- ------- ------- ------- ------- PER SHARE DATA Net asset value, beginning of period $ 15.38 $ 23.11 $ 16.60 $ 10.11 $ 12.25 $ 10.00 ------- ------- ------- ------- ------- ------- INVESTMENT OPERATIONS Net investment loss (0.10) (0.18) (0.13) (0.13) (0.34) (0.04) Net gain (loss) on investments (both realized and unrealized) 1.88 (7.55) 7.28 6.62 (1.74) 2.29 ------- ------- ------- ------- ------- ------- Total from investment operations 1.78 (7.73) 7.15 6.49 (2.08) 2.25 ------- ------- ------- ------- ------- ------- LESS DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income -- -- -- -- (0.06) -- Distributions from net realized gains -- -- (0.64) -- -- -- ------- ------- ------- ------- ------- ------- Total dividends and distributions -- -- (0.64) -- 0.06 -- ------- ------- ------- ------- ------- ------- Net asset value, end of period $ 17.16 $ 15.38 $ 23.11 $ 16.60 $ 10.11 $ 12.25 ======= ======= ======= ======= ======= ======= Total return 11.57%(2) (33.45)% 43.65% 64.19% (17.00)% 22.50%(2) RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000s omitted) $47,097 $36,445 $47,900 $9,020 $4,544 $11,977 Ratio of expenses to average net assets(3) 1.40%(4) 1.40% 1.42% 1.41% 1.40% 1.41%(4) Ratio of net investment loss to average net assets (1.22)%(4) (1.04)% (0.80)% (1.06)% (95.00)% (0.53)%(4) Decrease reflected in above operating expense ratios due to waivers/reimbursements 0.70%(4) 0.54% 0.56% 2.13% 1.10% 3.66%(4) Portfolio turnover rate 42% 74% 94% 192% 115% 123%
(1) For the period December 31, 1996 (inception date) through October 31, 1997. (2) Non-annualized. (3) 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% for the six months ended April 30, 2002, and .00%, .02%, .01%, .00%, and .01% for the years ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. The Common Class shares' operating expense ratio after reflecting these arrangements was 1.40% for the six months ended April 30, 2002, and the years ended October 31, 2001, 2000, 1999, 1998, and 1997, respectively. (4) Annualized. See Accompanying Notes to Financial Statements. 28 CREDIT SUISSE FUNDS NOTES TO FINANCIAL STATEMENTS April 30, 2002 (Unaudited) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Credit Suisse Funds covered in this report are comprised of Credit Suisse Capital Appreciation, formerly Credit Suisse Warburg Pincus Capital Appreciation Fund ("Capital Appreciation") a Massachusetts Business Trust, Credit Suisse Emerging Growth Fund, formerly Credit Suisse Warburg Pincus Emerging Growth Fund ("Emerging Growth") and, Credit Suisse Small Cap Growth Fund, formerly Credit Suisse Warburg Pincus Small Company Growth Fund ("Small Cap Growth"), each a Maryland Corporation (each a "Fund" and collectively, the "Funds"), which are registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as open-end management investment companies. Each Fund is diversified as defined in the 1940 Act, with the exception of Emerging Growth, which is non-diversified. Investment objectives for each Fund are as follows: Capital Appreciation seeks long-term capital appreciation, Emerging Growth seeks maximum capital appreciation, Small Cap Growth seeks growth of capital. Each Fund except the Small Cap Growth Fund may invest up to 10% of its total assets in non-publicly traded securities (the Small Cap Growth Fund may invest up to 15% of its assets in such securities). Non-publicly traded securities may be less liquid than publicly traded securities, and they may be difficult or impossible to sell at the time and the price the Fund would like. In addition, the lack of an active market may make it difficult to obtain an accurate price for a Fund security. Capital Appreciation offered five classes of shares, Common Class, Advisor Class, Class A, Class B, and Class C. Emerging Growth offered three classes of shares, Common Class, Advisor Class, and Class A shares. Small Cap Growth offered Common Class and Class A shares. Effective December 12, 2001, each of the Funds closed the Common Class shares to new investors. Each class of shares in each Fund represents an equal pro rata interest in each Fund, except that they bear different expenses, which reflect the difference in the range of services provided to them. Common Class shares of Small Cap Growth bear expenses paid pursuant to a shareholder servicing and distribution plan at an annual rate of .25% of the average daily net asset value of the Fund's Common Class shares. Common Class shares of Capital Appreciation and Emerging Growth are not subject to shareholder servicing or distribution fees. Advisor Class shares of the Funds bear expenses paid pursuant to a distribution plan at an annual rate not to exceed .75% of the average net asset value of the applicable Fund's Advisor Class shares. Advisor Class shares currently bear expenses of .50% of average daily net assets. Class A shares 29 are sold subject to a front end sales charge of 5.75% and bear expenses paid pursuant to a shareholder servicing and distribution plan at an annual rate of ...25% of the average daily net asset value of the Fund's Class A shares. Class B shares are sold subject to a contingent deferred sales charge which declines from 4.00% to zero depending on the period of time the shares are held and bear expenses paid pursuant to a shareholder servicing and distribution plan at an annual rate of 1.00% of the average net asset value of the Fund's Class B shares. Class C shares are sold subject to a contingent deferred sales charge of 1.00% if the shares are redeemed within the first year of purchase and bear expenses paid pursuant to a shareholder servicing and distribution plan at an annual rate of 1.00% of the average net asset value of the Fund's Class C shares. Results for the Class A, Class B, and Class C shares are contained in a separate book. A) SECURITY VALUATION -- The net asset value of each Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. Each Fund's investments are valued at market value, which is generally determined using the last reported sales price. If no sales are reported, investments are generally valued at the most recent bid price, and if there is no bid price available, at the most recent ask price. Debt securities are valued on the basis of broker quotations or valuations provided by a pricing service that may use a matrix, formula or other objective method that takes into consideration market indices, matrices, yield curves and other specific adjustments. If market quotations are not readily available, securities and other assets are valued by another method that the Board of Directors believes accurately reflects fair value. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, unless the Board determines that using this method would not accurately reflect an investment's value. B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Funds are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate at the end of the period. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Funds do not isolate that portion of realized gains and losses on investments in equity securities which is due to changes in 30 the foreign exchange rate from that which is due to changes in market prices of equity securities. The Funds isolate that portion of realized gains and losses on investments in debt securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of debt securities. C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Income, expenses (excluding class-specific expenses, principally distribution and shareholder servicing fees) 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. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. D) DIVIDENDS AND DISTRIBUTION TO SHAREHOLDERS -- Dividends from net investment income and net realized capital gains, if any, are declared and paid at least annually. However, to the extent that a net realized capital gain can be reduced by a capital loss carryover, such gain will not be distributed. Income and capital gain distributions are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). E) FEDERAL INCOME TAXES -- No provision is made for federal taxes, as it is each Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, (the "Code") and make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes. F) USE OF ESTIMATES -- The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. G) SHORT-TERM INVESTMENTS -- The Funds, together with other funds advised by Credit Suisse Asset Management, LLC ("CSAM") an indirect, wholly-owned subsidiary of Credit Suisse Group, pool available cash into a short-term time deposit issued by State Street Bank & Trust, the Funds' 31 custodian. The short-term time deposit is a variable rate account classified as a short-term investment. H) SECURITIES LENDING -- Loans of securities are required at all times to be secured by collateral at least equal to 102% of the market value of domestic securities on loan including any accrued interest thereon and 105% of the market value of foreign securities on loan including any accrued interest thereon. Cash collateral received by the Funds in connection with securities lending activity is invested in the AIM Institutional Funds -- Liquid Asset Portfolio. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. The Funds had no securities out on loan during the six months ended April 30, 2002. Credit Suisse First Boston ("CSFB"), an affiliate of CSAM, has been engaged by the Funds to act as the Fund's securities lending agent. Pending receipt of an exemption from the Securities and Exchange Commission ("SEC"), CSFB has agreed to charge fees to the Funds for its securities lending activities equal to its costs in providing services as securities lending agent. CSFB also has voluntarily agreed to waive its fees for the securities lending agent services that it provides. CSFB may discontinue its voluntary fee waivers at any time. I) OTHER -- The Funds, except Capital Appreciation, may invest in securities of foreign countries and governments which involve certain risks in addition to those inherent in domestic investments. Such risks generally include, among other, currency risks (fluctuations in currency exchange rates), information risk (key information may be inaccurate or unavailable) and political risk (expropriation, nationalization or the imposition of capital or currency controls or punitive taxes). Other risks of investing in foreign securities include liquidity and valuation risks. The Funds may be subject to taxes imposed by countries in which they invest, with respect to their investments in issuers existing or operating in such countries. Such taxes are generally based on income earned or repatriated and capital gains realized on the sale of such investments. The Funds accrue such taxes when the related income or capital gains are earned. 32 NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES CSAM serves as investment adviser for the Funds. For its investment advisory services, CSAM is entitled to receive the following fees, computed daily and payable monthly on each Fund's average daily net assets:
FUND ANNUAL RATE ---- ----------- Capital Appreciation .70% of average daily net assets Emerging Growth .90% of average daily net assets Small Cap Growth 1.00% of average daily net assets
For the six months ended April 30, 2002, investment advisory fees earned and voluntarily waived were as follows:
GROSS NET FUND ADVISORY FEE WAIVER ADVISORY FEE ---- ------------ ------ ------------ Capital Appreciation $3,303,375 $ -- $3,303,375 Emerging Growth 4,144,284 -- 4,144,284 Small Cap Growth 226,475 158,527 67,948
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of CSAM, and PFPC, Inc. ("PFPC") an indirect, wholly-owned subsidiary of PNC Financial Services Group, serve as each Fund's co-administrators. For its administrative services, CSAMSI is entitled to receive a fee calculated at an annual rate of .10% of each Fund's average daily net assets. For the six months ended April 30, 2002, administrative services fees earned by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE ---- --------------------- Capital Appreciation $471,911 Emerging Growth 460,476 Small Cap Growth 22,648
For its administrative services through April 30, 2002, PFPC received a fee, exclusive of out-of-pocket expenses, based on the following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE ------------------------ ----------- First $500 million .075% of average daily net assets Next $1 billion .065% of average daily net assets Over $1.5 billion .055% of average daily net assets
33 For the six months ended April 30, 2002, administrative service fees earned and voluntarily waived by PFPC (including out-of-pocket expenses) were as follows:
FUND CO-ADMINISTRATION FEE ---- --------------------- Capital Appreciation $333,078 Emerging Growth 325,928 Small Cap Growth 18,726
At its meeting held on February 12, 2002, the Board of Directors adopted a resolution to approve a Co-Adminstrator Agreement between the Fund and State Street Bank and Trust Company ("SSB") to replace PFPC effective mid 2002. 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 Common Class shares of Small Cap Growth. For the Advisor Class shares of Capital Appreciation and Emerging Growth, the fee is calculated at an annual rate of .50% of average daily net assets. CSAMSI may use this fee to compensate service organizations for shareholder servicing and distribution services. For the six months ended April 30, 2002, shareholder servicing and distribution fees were as follows:
SHAREHOLDER SERVICING/ FUND DISTRIBUTION FEE ---- ---------------------- Capital Appreciation $65,590 Emerging Growth 232,608 Small Cap Growth 56,619
Certain brokers, dealers and financial representatives provide transfer agent related services to the Funds, and receive compensation for these services from CSAM. CSAM is then reimbursed by the Funds. For the six months ended April 30, 2002, the Funds' reimbursed CSAM the following amounts, which are included in the Funds' transfer agent expense:
FUND AMOUNT ---- ------ Capital Appreciation $531,259 Emerging Growth 830,658 Small Cap Growth 47,168
34 For the six months ended April 30, 2002, CSAMSI and its affiliates advised the Funds that it retained the following amounts from commissions earned on the sale of the Fund's shares:
FUND AMOUNT ---- ------ Capital Appreciation $ 173 Emerging Growth 8 Small Cap Growth 5,641
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the Funds to provide certain financial printing services. For the six months ended April 30, 2002, Merrill was paid for its services to the Funds as follows:
FUND AMOUNT ---- ------ Capital Appreciation $47,170 Emerging Growth 48,062 Small Cap Growth 2,408
NOTE 3. LINE OF CREDIT Through June 18, 2002, the Funds, together with other funds advised by CSAM (collectively, the "Participating Funds"), participated in a $200 million committed, unsecured line of credit facility ("Prior Credit Facility") with Deutsche Bank, A.G. as administrative agent, State Street Bank and Trust Company as operations agent, BNP Paribas as syndication agent and certain other lenders for temporary or emergency purposes primarily relating to unanticipated Participating Funds' share redemptions. Under the terms of the Prior Credit Facility, the Participating Funds pay an aggregate commitment fee at a rate of ...10% per annum on the average unused amount of the Prior Credit Facility, which is allocated among the Participating Funds in such a manner as was determined by the governing Boards of the Participating Funds. In addition, the Participating Funds paid interest on borrowings at the Federal funds rate plus .50%. For the six months ended April 30, 2002, the Funds had no borrowings under the Prior Credit Facility. Effective June 19, 2002, the Participating Funds, together with additional funds advised by CSAM (collectively with the Participating Funds, the "New Participating Funds"), established a new $150 million committed, unsecured, line of credit facility (the "New Credit Facility") with Deutsche Bank, A.G. as administrative agent and syndication agent and State Street Bank and Trust Company as operations agent for the same purposes as the Prior Credit Facility. Terms of the New Credit Facility remain the same as the Prior Credit Facility. The commitment fee rate and interest paid is unchanged. 35 NOTE 4. PURCHASES AND SALES OF SECURITIES For the six months ended April 30, 2002, purchases and sales of investment securities (excluding short-term investments) were as follows:
FUND PURCHASES SALES ---- --------- ----- Capital Appreciation $283,648,173 $346,316,008 Emerging Growth 329,235,677 600,207,415 Small Cap Growth 21,795,955 17,469,146
At April 30, 2002, the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized appreciation (depreciation) from investments (based on cost for federal income tax purposes) was as follows:
NET UNREALIZED UNREALIZED UNREALIZED APPRECIATION FUND APPRECIATION DEPRECIATION (DEPRECIATION) ---- ------------ ------------ -------------- Capital Appreciation $ 81,483,966 $(92,664,706) $(11,180,740) Emerging Growth 188,293,484 (91,450,156) 96,843,328 Small Cap Growth 6,384,806 (6,449,615) (64,809)
NOTE 5. RESTRICTED SECURITIES Certain Funds' investments are restricted as to resale, are not readily marketable and are valued as determined by or under the direction of each Fund's Board in good faith, at fair value. The table below shows the number of shares held, the acquisition dates, aggregate cost, fair value as of April 30, 2002, and share value of the securities and percent of net assets, which the securities comprise.
PERCENTAGE SECURITY ACQUISITION MARKET OF NET FUND SECURITY DESCRIPTION TYPE DATE COST VALUE ASSETS ---- -------------------- -------- ----------- ----------- ---------- ---------- Emerging Growth Celletra, Ltd. Preferred 4/05/00 $ 7,000,000 $466,919 0.06% Netwolves Corp. Common 11/07/01 1,881,000 2,115,000 0.26 Foodtrader.com Preferred 9/12/00 2,000,000 48,309 0.01 Opal Concepts Preferred 8/31/95 1,999,999 199,998 0.02 TimesSquareMedia.com Bond 11/23/99 2,900,000 -- -- ----------- ---------- ---- $15,780,999 $2,830,226 0.35% =========== ========== ==== Small Cap Growth Planetweb, Inc. Common 9/08/00 149,913 19,596 0.04%
36 NOTE 6. CAPITAL SHARE TRANSACTIONS Capital Appreciation is authorized to issue an unlimited number of full and fractional shares of capital stock. All the Funds have a par value of $.001 per share. Emerging Growth and Small Cap Growth have three billion full and fractional shares of capital stock authorized. Emerging Growth has two billion of those shares classified as Advisor class. Transactions in classes of each Fund were as follows:
CAPITAL APPRECIATION -------------------------------------------------------------------------- COMMON CLASS -------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2002 (UNAUDITED) OCTOBER 31, 2001 ------------------------------- ------------------------------ SHARES VALUE SHARES VALUE ------------ ------------- ------------ ------------- Shares sold 10,006,284 $ 174,655,277 14,861,985 $ 335,086,709 Shares issued in reinvestment of distributions 3,458 62,484 9,206,399 224,544,079 Shares redeemed (14,132,313) (240,898,832) (21,588,372) (441,984,481) ------------ ------------- ------------ ------------- Net increase (decrease) (4,122,571) $ (66,181,071) 2,480,012 $ 117,646,307 ============ ============= ============ ============= CAPITAL APPRECIATION -------------------------------------------------------------------------- ADVISOR CLASS -------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2002 (UNAUDITED) OCTOBER 31, 2001 ------------------------------- ------------------------------ SHARES VALUE SHARES VALUE ------------ ------------- ------------ ------------- Shares sold 233,061 $ 3,910,197 817,557 $ 17,514,698 Shares issued in reinvestment of distributions 109 1,924 187,381 4,476,525 Shares redeemed (295,156) (4,980,624) (508,773) (10,559,894) ------------ ------------- ------------ ------------- Net increase (decrease) (61,986) $ (1,068,503) 496,165 $ 11,431,329 ============ ============= ============ ============= CAPITAL APPRECIATION CAPITAL APPRECIATION ------------------------------- ------------------------------ CLASS A CLASS B ------------------------------- ------------------------------ FOR THE PERIOD ENDED FOR THE PERIOD ENDED APRIL 30, 2002 (UNAUDITED)(1) APRIL 30, 2002 (UNAUDITED)(1) ------------------------------- ------------------------------ SHARES VALUE SHARES VALUE ------------ ------------- ------------ ------------- Shares sold 3,233 $ 53,755 1,657 $ 27,945 Shares redeemed -- -- (219) (3,740) ------------ ------------- ------------ ------------- Net increase 3,233 $ 53,755 1,438 $ 24,205 ============ ============= ============ ============= CAPITAL APPRECIATION ------------------------------- CLASS C ------------------------------- FOR THE PERIOD ENDED APRIL 30, 2002 (UNAUDITED)(1) ------------------------------- SHARES VALUE ------------ ------------- Shares sold 2,835 $ 48,450 ------------ ------------- Net increase 2,835 $ 48,450 ============ =============
37
EMERGING GROWTH FUND --------------------------------------------------------------------------- COMMON CLASS --------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2002 (UNAUDITED) OCTOBER 31, 2001 ------------------------------- ------------------------------- SHARES VALUE SHARES VALUE ------------ ------------- ------------ -------------- Shares sold 3,380,255 $ 86,906,085 9,288,216 $ 290,249,635 Shares issued in reinvestment of distributions 3,599 97,148 9,032,651 3,454,679,557 Shares redeemed (11,633,174) (300,529,552) (23,212,344) (698,374,881) ------------ ------------- ------------ -------------- Net decrease (8,249,320) $(213,526,319) (4,891,477) $3,046,554,311 ============ ============= ============ ============== EMERGING GROWTH FUND --------------------------------------------------------------------------- ADVISOR CLASS --------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2002 (UNAUDITED) OCTOBER 31, 2001 ------------------------------- ------------------------------- SHARES VALUE SHARES VALUE ------------ ------------- ------------ -------------- Shares sold 170,131 $ 4,166,368 687,627 $ 19,828,375 Shares issued in reinvestment of distributions 470 12,022 1,301,368 47,434,846 Shares redeemed (1,655,413) (40,546,323) (3,229,931) (87,131,479) ------------ ------------- ------------ ------------- Net decrease (1,484,812) $ (36,367,933) (1,240,936) $ (19,868,258) ============ ============= ============ ============= EMERGING GROWTH FUND ------------------------------- CLASS A ------------------------------- FOR THE PERIOD ENDED APRIL 30, 2002 (UNAUDITED)(1) ------------------------------- SHARES VALUE ------------ ------------- Shares sold 44 $ 1,141 ------------ ------------- Net increase 44 $ 1,141 ============ ============= SMALL CAP GROWTH -------------------------------------------------------------------------- COMMON CLASS -------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED APRIL 30, 2002 (UNAUDITED) OCTOBER 31, 2001 ------------------------------- ------------------------------ SHARES VALUE SHARES VALUE ------------ ------------- ------------ ------------- Shares sold 2,330,747 $ 40,462,635 3,785,494 $ 66,230,181 Shares redeemed (1,956,340) (33,932,717) (3,488,224) (60,515,458) ------------ ------------- ------------ ------------- Net increase 374,407 $ 6,529,918 297,270 $ 5,714,723 ============ ============= ============ ============= SMALL CAP GROWTH ------------------------------- CLASS A ------------------------------- FOR THE PERIOD ENDED APRIL 30, 2002 (UNAUDITED)(1) ------------------------------- SHARES VALUE ------------ ------------- Shares sold 20,322 $ 361,039 ------------ ------------- Net increase 20,322 $ 361,039 ============ =============
(1) For the period November 30, 2001 (inception date) through April 30, 2002. 38 P.O. BOX 9030, BOSTON, MA 02205-9030 CREDIT | ASSET 800-927-2874 - www.CreditSuisseFunds.com SUISSE | MANAGEMENT CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. WPGTH-3-0402 -----END PRIVACY-ENHANCED MESSAGE-----