UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File No. 811-8252
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Credit Suisse Emerging Markets Fund, Inc.
------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
466 Lexington Avenue, New York, New York 10017-3140
-------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
J. Kevin Gao, Esq.
Credit Suisse Emerging Markets Fund, Inc.
466 Lexington Avenue
New York, New York 10017-3140
Registrant's telephone number, including area code: (212) 875-3500
Date of fiscal year end: October 31
Date of reporting period: November 1, 2004 to April 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
CREDIT | ASSET
SUISSE | MANAGEMENT
CREDIT SUISSE FUNDS
Semiannual Report
April 30, 2005
(unaudited)
o CREDIT SUISSE
EMERGING MARKETS FUND
The Fund's investment objectives, risks, charges and expenses (which should be
considered carefully before investing), and more complete information about the
Fund, are provided in the Prospectus, which should be read carefully before
investing. You may obtain additional copies by calling 800-927-2874 or by
writing to Credit Suisse Funds, P.O. Box 55030, Boston, MA 02205-5030.
Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466
Lexington Ave., New York, NY 10017-3140. Credit Suisse Funds are advised by
Credit Suisse Asset Management, LLC.
Investors in the Credit Suisse Funds should be aware that they may be eligible
to purchase Common Class and/or Advisor Class shares (where offered) directly or
through certain intermediaries. Such shares are not subject to a sales charge
but may be subject to an ongoing service and distribution fee of up to 0.50% of
average daily net assets. Investors in the Credit Suisse Funds should also be
aware that they may be eligible for a reduction or waiver of the sales charge
with respect to Class A, B or C shares. For more information, please review the
relevant prospectuses or consult your financial representative.
The views of the Fund's management are as of the date of the letter and the Fund
holdings described in this document are as of April 30, 2005; these views and
Fund holdings may have changed subsequent to these dates. Nothing in this
document is a recommendation to purchase or sell securities.
Fund shares are not deposits or other obligations of Credit Suisse Asset
Management, LLC ("CSAM") or any affiliate, are not FDIC-insured and are not
guaranteed by CSAM or any affiliate. Fund investments are subject to investment
risk, including loss of your investment.
CREDIT SUISSE EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
June 1, 2005
Dear Shareholder:
PERFORMANCE SUMMARY
11/01/04 - 04/30/05
SHARE CLASS/BENCHMARK PERFORMANCE
Common1 9.75%
Advisor1 9.91%
Class A1,2 9.71%
MSCI Emerging Markets Index3 13.63%
Performance for the Fund's Class A shares is without the maximum sales charge
of 5.75%.2
MARKET OVERVIEW: STRONG START, MUTED FINISH
Emerging equity markets performed well in both absolute terms and compared
with developed stock markets, though the group struggled late in the period.
Emerging markets climbed steadily over the November through early March span, as
investor sentiment toward the asset class remained favorable based on generally
improving macro fundamentals combined with historically moderate valuations.
However, these stocks declined in the last six weeks of the period, hit by
changing expectations for US interest rates as the US Federal Reserve turned
more hawkish on inflation. This tended to spark profit taking within markets
globally and in riskier asset classes in particular.
STRATEGIC REVIEW: UNDERPERFORM IN ASIA, OUTPERFORM ELSEWHERE
The Fund participated in the broad rally in emerging markets, although it
underperformed its benchmark. We attribute this in large part to stock selection
in Asia. In particular, our bias in Taiwan was in favor of financial services
stocks over technology stocks, and the latter delivered stronger returns. Our
China holdings also underperformed, including declines posted by an oil company
and a copper company. In addition, we were underweighted in South Korea, whose
currency strongly appreciated vs. the US dollar, boosting returns for US-based
investors.
CREDIT SUISSE EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
On the positive side, the Fund was aided by good stock selection within the
Europe/Middle East/Africa segment (EMEA), most specifically South Africa, where
we were underweighted in struggling resources stocks, and Russia, where we
avoided certain poor performers in the energy and materials sectors. In Latin
America, stock selection in Brazil and Mexico was positive, and our
overweighting in Brazil provided more support as the market outperformed
regionally and globally.
In terms of regional positioning, we remained overweighted in the larger
markets within Latin America, though we periodically trimmed these positions in
the wake of good performance. Rising US interest rates and slowing global growth
have traditionally been the source of market pressure for Latin America and in
particular Brazil, given the region's reliance on external financing. We believe
that improved external fundamentals could make economic growth more resistant to
global headwinds in this cycle. Our positioning in both Mexico and Brazil is
biased primarily toward companies dependent on domestic demand, such as
Brazilian banks and Mexican homebuilders, where we have greater conviction about
the earnings outlook.
We maintained a roughly neutral position in Asia overall. Within the larger
North Asian markets, we favored Taiwan over South Korea and China. As noted, we
maintained exposure to financials stocks in Taiwan, which we think could benefit
from improvements in domestic spending. In China, despite our relatively
sanguine view over the prospects for macroeconomic growth, rising cost pressures
have eroded the profitability for many Chinese corporates, while valuations have
not been compelling in our view. Within the smaller markets of Southeast Asia,
we ended the period with overweightings in Malaysia and Thailand, reflecting our
more positive outlook on their macro fundamentals. We remained underweighted in
India, though we did add to our Indian position late in the period as concerns
regarding the growth outlook and reform agenda of the incoming government
appeared overblown.
We were primarily underweighted in the EMEA region during the period. In
Eastern Europe, our primary overweight through much of 2004 was Russia, although
we reduced our exposure as the corporate environment appeared to deteriorate. We
were underweighted in South Africa through the period, due to our bias away from
commodity exporters, which continue to be hampered by strength in the country's
currency. We maintained an overweight in Turkey, based on our view on positive
macroeconomic developments and
2
CREDIT SUISSE EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
optimism related to Turkey's application for eventual EU membership. Our
exposure to Israel through most of the period was broadly neutral, but with a
relatively high bias toward domestic-oriented companies and banks, which we feel
continue to have compelling valuations compared with bank valuations elsewhere.
The Credit Suisse Emerging Markets Team
Annabel Betz
Neil Gregson
Matthew J.K. Hickman
Elizabeth H. Eaton
Jonathan S. Ong
Emily Alejos
The Fund may involve a greater degree of risk than other funds that seek
capital growth by investing in larger, more-developed markets. International
investing entails special risk considerations, including currency fluctuations,
lower liquidity, economic and political risks and differences in accounting
methods; these risks are generally heightened for emerging-market investments.
In addition to historical information, this report contains forward-looking
statements, which may concern, among other things, domestic and foreign markets,
industry and economic trends and developments and government regulation and
their potential impact on the Fund's investment portfolio. These statements are
subject to risks and uncertainties and actual trends, developments and
regulations in the future, and their impact on the Fund could be materially
different from those projected, anticipated or implied. The Fund has no
obligation to update or revise forward-looking statements.
3
CREDIT SUISSE EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS AS OF MARCH 31, 20051
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
-------------------------------------------------------
Common Class 12.34% (1.95)% 1.94% 2.29% 12/30/94
Advisor Class 12.60% (2.09)% 1.49% 1.85% 12/30/94
Class A Without
Sales Charge 12.31% -- -- 15.71% 11/30/01
Class A With Maximum
Sales Charge 5.86% -- -- 13.65% 11/30/01
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 20051
SINCE INCEPTION
1 YEAR 5 YEARS 10 YEARS INCEPTION DATE
-------------------------------------------------------
Common Class 18.66% 0.17% 1.53% 2.03% 12/30/94
Advisor Class 19.02% 0.03% 1.09% 1.60% 12/30/94
Class A Without
Sales Charge 18.79% -- -- 14.48% 11/30/01
Class A With Maximum
Sales Charge 11.98% -- -- 12.49% 11/30/01
Returns represent past performance and include change in share price and
reinvestment of dividends and capital gains. PAST PERFORMANCE CANNOT GUARANTEE
FUTURE RESULTS. The current performance of the Fund may be lower or higher than
the figures shown. Returns and share price will fluctuate, and redemption value
may be less than original cost. The performance results do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. Performance information current to the most recent
month-end is available at www.csam.com/us.
--------------
1 Fee waivers and/or expense reimbursements reduced expenses for the Fund,
without which performance would be lower. Waivers and/or reimbursements may
be discontinued at any time.
2 Total return for the Fund's Class A shares for the reporting period, based on
offering price (with maximum sales charge of 5.75%), was 3.40%.
3 The Morgan Stanley Capital International (MSCI) Emerging Markets Index is a
free float-adjusted market capitalization index that is designed to measure
equity market performance in the global emerging markets. It is the exclusive
property of Morgan Stanley Capital International Inc. Investors cannot invest
directly in an index.
4
CREDIT SUISSE EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
INFORMATION ABOUT YOUR FUND'S EXPENSES
As an investor of the Fund, you incur two types of costs: ongoing expenses
and transaction costs. Ongoing expenses include management fees, distribution
and service (12b-1) fees and other Fund expenses. Examples of transaction costs
include sales charges (loads), redemption fees and account maintenance fees,
which are not shown in this section and which would result in higher total
expenses. The following table is intended to help you understand your ongoing
expenses of investing in the Fund and to help you compare these expenses with
the ongoing expenses of investing in other mutual funds. The table is based on
an investment of $1,000 made at the beginning of the six month period ended
April 30, 2005.
The table illustrates your Fund's expenses in two ways:
o ACTUAL FUND RETURN. This helps you estimate the actual dollar amount of
ongoing expenses paid on a $1,000 investment in the Fund using the Fund's
actual return during the period. To estimate the expenses you paid over
the period, simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the "Expenses Paid per $1,000" line under the share class
you hold.
o HYPOTHETICAL 5% FUND RETURN. This helps you to compare your Fund's ongoing
expenses with those of other mutual funds using the Fund's actual expense
ratio and a hypothetical rate of return of 5% per year before expenses.
Examples using a 5% hypothetical fund return may be found in the
shareholder reports of other mutual funds. The hypothetical account values
and expenses may not be used to estimate the actual ending account balance
or expenses you paid for the period.
Please note that the expenses shown in these tables are meant to highlight
your ongoing expenses only and do not reflect any transaction costs, such as
sales charges (loads) or redemption fees. The "Expenses Paid per $1,000" line of
the tables is useful in comparing ongoing expenses only and will not help you
determine the relative total expenses of owning different funds.
5
CREDIT SUISSE EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
FOR THE SIX MONTH PERIOD ENDED APRIL 30, 2005
--------------------------------------------------------------------------------
COMMON ADVISOR
ACTUAL FUND RETURN CLASS CLASS CLASS A
---------------------------------
Beginning Account Value 11/1/04 $1,000.00 $1,000.00 $1,000.00
Ending Account Value 4/30/05 $1,097.50 $1,099.10 $1,097.10
Expenses Paid per $1,000* $ 10.14 $ 8.85 $ 10.14
HYPOTHETICAL 5% FUND RETURN
Beginning Account Value 11/1/04 $1,000.00 $1,000.00 $1,000.00
Ending Account Value 4/30/05 $1,015.12 $1,016.36 $1,015.12
Expenses Paid per $1,000* $ 9.74 $ 8.50 $ 9.74
COMMON ADVISOR
CLASS CLASS CLASS A
---------------------------------
ANNUALIZED EXPENSE RATIOS* 1.95% 1.70% 1.95%
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio for each share
class, multiplied by the average account value over the period, multiplied by
the number of days in the most recent fiscal half year period, then divided
by 365.
The "Expenses Paid per $1,000" and the "Annualized Expense Ratios" in the
tables are based on actual expenses paid by the Fund during the period, net
of fee waivers and/or expense reimbursements. If those fee waivers and/or
expense reimbursements had not been in effect, the Fund's actual expenses
would have been higher.
For more information, please refer to the Fund's prospectus.
6
CREDIT SUISSE EMERGING MARKETS FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT (CONTINUED)
April 30, 2005 (unaudited)
SECTOR BREAKDOWN*
Bar Chart:
Financials 22.7%
Information Technology 17.2%
Energy 13.4%
Telecommunication Services 12.3%
Consumer Discretionary 10.2%
Materials 8.6%
Industrials 6.0%
Consumer Staples 3.6%
Short-Term Investments 2.4%
Health Care 2.1%
Utilities 1.5%
--------------
* Expressed as a percentage of total investments (excluding security lending
collateral) and may vary over time.
7
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS (89.1%)
BRAZIL (4.0%)
Airlines (0.4%)
Gol-Linhas Aereas Inteligentes SA ADRss. 5,400 $ 153,198
-----------
Diversified Telecommunication Services (0.8%)
Brasil Telecom Participacoes SA 16,600,000 137,174
Tele Norte Leste Participacoes SA 6,500 128,910
-----------
266,084
-----------
Oil & Gas (1.9%)
Petroleo Brasileiro SA - Petrobras ADRss. 16,900 621,075
-----------
Paper & Forest Products (0.5%)
Aracruz Celulose SA ADRss. 2,900 89,030
Votorantim Celulose e Papel SA ADR 6,300 69,237
-----------
158,267
-----------
Water Utilities (0.4%)
Companhia de Saneamento Basico do Estado de Sao Paulo 2,400,000 124,189
-----------
TOTAL BRAZIL 1,322,813
-----------
CHILE (1.1%)
Beverages (0.6%)
Compania Cervecerias Unidas SA ADRss. 7,700 182,798
-----------
Diversified Telecommunication Services (0.5%)
Compania de Telecomunicaciones de Chile SA ADR 16,200 172,530
-----------
TOTAL CHILE 355,328
-----------
CHINA (4.3%)
Airlines (0.5%)
Air China, Ltd. Series H 506,000 180,116
-----------
Insurance (1.2%)
China Life Insurance Company, Ltd. Series H* 583,000 384,753
-----------
Metals & Mining (0.7%)
Jiangxi Copper Company, Ltd. Series H 481,000 232,519
-----------
Oil & Gas (1.9%)
China Petroleum & Chemical Corp. Series H 1,140,000 452,050
Sinopec Zhenhai Refining & Chemical Company, Ltd. Series H 162,200 180,565
-----------
632,615
-----------
TOTAL CHINA 1,430,003
-----------
See Accompanying Notes to Financial Statements.
8
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS
EGYPT (0.5%)
Wireless Telecommunication Services (0.5%)
Orascom Telecom Holding SAE* 2,200 $ 180,095
-----------
TOTAL EGYPT 180,095
-----------
HONG KONG (3.5%)
Industrial Conglomerates (0.5%)
Golden Meditech Company, Ltd. 794,000 152,746
-----------
Oil & Gas (1.0%)
CNOOC, Ltd. 613,000 329,768
-----------
Textiles & Apparel (0.5%)
Ports Design, Ltd. 257,000 175,273
-----------
Wireless Telecommunication Services (1.5%)
China Mobile (Hong Kong), Ltd. 144,000 504,978
-----------
TOTAL HONG KONG 1,162,765
-----------
HUNGARY (1.6%)
Banks (0.8%)
OTP Bank Rt. 8,600 265,183
-----------
Oil & Gas (0.8%)
MOL Magyar Olaj-es Gazipari Rt. 3,300 272,343
-----------
TOTAL HUNGARY 537,526
-----------
INDIA (5.5%)
Airlines (0.4%)
Jet Airways (India), Ltd.* 3,851 116,875
-----------
Chemicals (1.0%)
Reliance Industries, Ltd. GDR Rule 144A++ 13,500 333,450
-----------
Diversified Financials (0.2%)
ICICI Bank, Ltd. ADR 4,600 83,168
-----------
Diversified Telecommunication Services (0.8%)
Bharti Tele-Ventures, Ltd.* 58,000 275,603
-----------
Electric Utilities (0.6%)
National Thermal Power Corporation, Ltd. 105,000 199,096
-----------
Electrical Equipment (0.5%)
Bharat Heavy Electricals, Ltd. 10,000 181,925
-----------
Gas Utilities (0.5%)
Gail India, Ltd. 34,300 160,376
-----------
See Accompanying Notes to Financial Statements.
9
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS
IT Consulting & Services (1.1%)
Infosys Technologies, Ltd. ADRss. 3,200 $ 189,440
Tata Consultancy Services, Ltd. 6,526 169,778
-----------
359,218
-----------
Oil & Gas (0.4%)
Cairn Energy PLC* 6,500 144,275
-----------
TOTAL INDIA 1,853,986
-----------
INDONESIA (0.7%)
Tobacco (0.3%)
PT Gudang Garam Tbk 55,500 87,591
-----------
Wireless Telecommunication Services (0.4%)
PT Telekomunikasi Indonesia 334,000 150,179
-----------
TOTAL INDONESIA 237,770
-----------
ISRAEL (3.9%)
Banks (0.7%)
Bank Hapoalim, Ltd. 67,800 232,825
-----------
Diversified Financials (0.5%)
IDB Development Corporation, Ltd. 5,500 161,856
-----------
Electronic Equipment & Instruments (0.5%)
Orbotech, Ltd.* 8,000 162,640
-----------
Internet Software & Services (0.6%)
Check Point Software Technologies, Ltd.* 10,100 211,595
-----------
Pharmaceuticals (1.6%)
Teva Pharmaceutical Industries, Ltd. ADR 16,800 524,832
-----------
TOTAL ISRAEL 1,293,748
-----------
MALAYSIA (4.1%)
Banks (1.9%)
Commerce Asset-Holding Berhad 225,400 265,888
Public Bank Berhad 199,300 356,443
-----------
622,331
-----------
Diversified Telecommunication Services (0.8%)
Telekom Malaysia Berhad 102,800 261,230
-----------
Energy Equipment & Services (0.3%)
Scomi Group Berhad 283,600 110,503
-----------
See Accompanying Notes to Financial Statements.
10
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS
Wireless Telecommunication Services (1.1%)
Maxis Communications Berhad 147,000 $ 373,403
-----------
TOTAL MALAYSIA 1,367,467
-----------
MEXICO (6.5%)
Beverages (0.6%)
Fomento Economico Mexicano SA de CV ADR 4,100 209,305
-----------
Construction Materials (0.2%)
Cemex SA de CV ADR 2,410 86,760
-----------
Diversified Telecommunication Services (0.7%)
Telefonos de Mexico SA de CV ADR 6,700 227,130
-----------
Food Products (0.9%)
Gruma SA Series B 76,500 153,841
Grupo Bimbo SA de CV Series A 54,900 143,575
-----------
297,416
-----------
Household Durables (0.8%)
Consorcio ARA SA de CV 83,800 257,695
-----------
Media (0.4%)
Grupo Televisa SA ADR 2,400 134,832
-----------
Metals & Mining (0.4%)
Grupo Mexico SA de CV Series B 27,293 127,567
-----------
Multiline Retail (0.6%)
Wal-Mart de Mexico SA de CV Series V 58,619 216,683
-----------
Real Estate (0.7%)
Desarrolladora Homex SA de CV ADR*ss. 4,400 97,416
Urbi Desarrollos Urbanos SA de CV* 27,335 133,113
-----------
230,529
-----------
Wireless Telecommunication Services (1.2%)
America Movil SA de CV ADR Series L 8,000 397,200
-----------
TOTAL MEXICO 2,185,117
-----------
PHILIPPINES (0.0%)
Diversified Financials (0.0%)
SM Investments Corp.* 50 231
-----------
TOTAL PHILIPPINES 231
-----------
RUSSIA (4.4%)
Banks (1.0%)
Sberbank RF 500 326,277
-----------
See Accompanying Notes to Financial Statements.
11
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS
Oil & Gas (2.3%)
Lukoil ADR 5,000 $ 677,500
Sibir Energy PLC* 24,000 95,571
-----------
773,071
-----------
Wireless Telecommunication Services (1.1%)
AO VimpelCom ADR*ss. 11,300 369,736
-----------
TOTAL RUSSIA 1,469,084
-----------
SINGAPORE (0.4%)
Chemicals (0.4%)
Hi-P International, Ltd.ss. 154,000 126,609
-----------
TOTAL SINGAPORE 126,609
-----------
SOUTH AFRICA (9.9%)
Banks (2.6%)
FirstRand, Ltd. 126,400 269,346
Standard Bank Group, Ltd. 60,457 606,637
-----------
875,983
-----------
Diversified Telecommunication Services (0.7%)
Telkom South Africa, Ltd. 13,330 232,865
-----------
Household Durables (0.8%)
Steinhoff International Holdings, Ltd. 121,120 258,052
-----------
Industrial Conglomerates (0.6%)
Bidvest Group, Ltd. 18,600 209,650
-----------
Insurance (0.8%)
Sanlam, Ltd. 137,000 260,180
-----------
Media (1.1%)
Naspers, Ltd. N Shares 31,300 378,853
-----------
Metals & Mining (1.5%)
Impala Platinum Holdings, Ltd. 3,100 258,281
Kumba Resources, Ltd. 23,567 233,619
-----------
491,900
-----------
Oil & Gas (0.7%)
Sasol 9,500 222,537
-----------
Specialty Retail (1.1%)
Edgars Consolidated Stores, Ltd. 3,233 133,962
JD Group, Ltd. 23,000 236,891
-----------
370,853
-----------
TOTAL SOUTH AFRICA 3,300,873
-----------
See Accompanying Notes to Financial Statements.
12
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS
SOUTH KOREA (18.5%)
Auto Components (0.8%)
Hyundai Mobis 3,850 $ 251,942
-----------
Automobiles (2.0%)
Hyundai Motor Company, Ltd. 12,520 681,426
-----------
Banks (3.5%)
Kookmin Bank 17,300 734,366
Shinhan Financial Group Company, Ltd. 16,800 438,449
-----------
1,172,815
-----------
Construction & Engineering (0.5%)
Daelim Industrial Company, Ltd. 3,400 169,999
-----------
Household Durables (1.2%)
LG Electronics, Inc. 5,930 398,549
-----------
Industrial Conglomerates (0.9%)
GS Holdings Corp. 12,300 294,094
-----------
Insurance (0.5%)
Samsung Fire & Marine Insurance Company, Ltd. 2,500 171,476
-----------
Metals & Mining (1.2%)
POSCO ADR 8,400 382,452
-----------
Semiconductor Equipment & Products (7.2%)
Samsung Electronics Company, Ltd. 5,232 2,392,903
-----------
Wireless Telecommunication Services (0.7%)
SK Telecom Company, Ltd. 1,500 248,389
-----------
TOTAL SOUTH KOREA 6,164,045
-----------
TAIWAN (13.6%)
Automobiles (0.6%)
China Motor Corp. 188,000 206,014
-----------
Banks (1.6%)
E.Sun Financial Holding Company, Ltd. 660,000 540,903
-----------
Chemicals (0.5%)
Formosa Plastics Corp. 100,000 171,268
-----------
Computers & Peripherals (4.1%)
Advantech Company, Ltd. 139,159 324,230
AU Optronics Corp. ADRss. 32,200 522,284
Chi Mei Optoelectronics Corp. 172,000 291,234
LITE-ON IT Corp. 134,000 224,038
-----------
1,361,786
-----------
See Accompanying Notes to Financial Statements.
13
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS
Insurance (1.1%)
Cathay Financial Holding Company, Ltd. 208,000 $ 377,217
-----------
Marine (0.9%)
Yang Ming Marine Transport 297,000 291,917
-----------
Real Estate (1.2%)
Cathay Real Estate Development Company, Ltd. 893,000 395,424
-----------
Semiconductor Equipment & Products (3.6%)
Sunplus Technology Company, Ltd. 192,000 255,960
Taiwan Semiconductor Manufacturing Company, Ltd. 494,000 821,489
United Microelectronics Corp. 172,782 100,887
-----------
1,178,336
-----------
TOTAL TAIWAN 4,522,865
-----------
THAILAND (4.6%)
Banks (2.1%)
Bangkok Bank Public Company, Ltd. 160,100 434,122
Siam City Bank Public Company, Ltd. 422,000 263,082
-----------
697,204
-----------
Construction & Engineering (0.5%)
Italian - Thai Development Public Company, Ltd. 766,300 179,632
-----------
Construction Materials (0.8%)
Siam Cement Public Company, Ltd. 46,500 280,138
-----------
Oil & Gas (1.2%)
Thai Oil Public Company, Ltd. 237,400 388,046
-----------
Wireless Telecommunication Services (0.0%)
Advanced Info Service Public Company, Ltd. 50 121
-----------
TOTAL THAILAND 1,545,141
-----------
TURKEY (1.6%)
Banks (1.0%)
Akbank T.A.S. 34,664 167,467
Turkiye Garanti Bankasi AS 43,062 154,060
-----------
321,527
-----------
Industrial Conglomerates (0.6%)
Koc Holding AS* 57,860 215,406
-----------
TOTAL TURKEY 536,933
-----------
See Accompanying Notes to Financial Statements.
14
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
COMMON STOCKS
VENEZUELA (0.4%)
Diversified Telecommunication Services (0.4%)
Compania Anonima Nacional Telefonos de Venezuela ADR 6,400 $ 122,496
-----------
TOTAL VENEZUELA 122,496
-----------
TOTAL COMMON STOCKS (Cost $23,769,061) 29,714,895
-----------
PREFERRED STOCKS (7.0%)
BRAZIL (7.0%)
Banks (1.4%)
Banco Bradesco SA 6,920 211,769
Banco Itau Holding Financeira SA 1,480 257,412
-----------
469,181
-----------
Beverages (0.6%)
Companhia de Bebidas das Americas ADR 7,100 192,410
-----------
Chemicals (0.3%)
Braskem SA Class A 2,800,000 109,949
-----------
Diversified Telecommunication Services (0.8%)
Telemar Norte Leste SA Class A 5,600 122,277
Telesp-Telecomunicacoes de Sao Paulo SA 7,100,000 134,049
-----------
256,326
-----------
Industrial Conglomerates (0.7%)
Itausa - Investimentos Itau SA 117,000 226,514
-----------
Metals & Mining (2.3%)
Companhia Vale do Rio Doce ADR 26,300 610,160
Usinas Siderurgicas de Minas Gerais SA 8,700 171,172
-----------
781,332
-----------
Oil & Gas (0.9%)
Petroleo Brasileiro SA - Petrobras ADR 6,900 289,317
-----------
TOTAL PREFERRED STOCKS (Cost $1,650,773) 2,325,029
-----------
WARRANTS (0.2%)
INDIA (0.2%)
Diversified Financials (0.2%)
National Thermal Power Corporation, Ltd. Rule 144A,
expires 10/20/05*++ (Cost $55,187) 40,100 75,388
-----------
See Accompanying Notes to Financial Statements.
15
CREDIT SUISSE EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -----------
<S> <C> <C>
RIGHTS (0.0%)
BRAZIL (0.0%)
Diversified Telecommunication Services (0.0%)
Tele Norte Leste Participacoes SA, strike price $18.96,
expires 5/24/05* 67 $ 79
-----------
TOTAL BRAZIL 79
-----------
THAILAND (0.0%)
Diversified Telecommunication Services (0.0%)
True Corporation Public Company, Ltd., strike price $13.93,
expires April 2008*^ 191,874 0
-----------
TOTAL THAILAND 0
-----------
TOTAL RIGHTS (Cost $0) 79
-----------
SHORT-TERM INVESTMENTS (7.6%)
State Street Navigator Prime Fundss.ss. 1,766,425 1,766,425
<CAPTION>
PAR
(000)
----------
<S> <C> <C>
State Street Bank and Trust Co. Euro Time Deposit,
1.850%, 5/02/05 $789 789,000
-----------
TOTAL SHORT-TERM INVESTMENTS (Cost $2,555,425) 2,555,425
-----------
TOTAL INVESTMENTS AT VALUE (103.9%) (Cost $28,030,446) 34,670,816
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS (-3.9%) (1,310,840)
-----------
NET ASSETS (100.0%) $33,359,976
===========
</TABLE>
INVESTMENT ABBREVIATIONS
ADR = American Depositary Receipt
GDR = Global Depositary Receipt
--------------------------------------------------------------------------------
* Non-income producing security.
++ Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30,
2005, these securities amounted to a value of $408,838 or 1.23% of net
assets.
^ Not readily marketable security; security is valued at fair value as
determined in good faith by, or under the direction of, the Board of
Directors.
ss. Security or portion thereof is out on loan.
ss.ss. Represents security purchased with cash collateral received for
securities on loan.
See Accompanying Notes to Financial Statements.
16
CREDIT SUISSE EMERGING MARKETS FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments at value, including collateral for securities on loan
of $1,766,425 (Cost $28,030,446) (Note 2) $34,670,8161
Cash 729
Foreign currency at value (cost $522,196) 523,909
Dividend and interest receivable 107,697
Receivable for investments sold 34,817
Receivable for fund shares sold 3,994
Prepaid expenses and other assets 25,623
-----------
Total Assets 35,367,585
-----------
LIABILITIES
Advisory fee payable (Note 3) 18,098
Administrative services fee payable (Note 3) 14,033
Distribution fee payable (Note 3) 8,464
Payable upon return of securities loaned (Note 2) 1,766,425
Deferred foreign tax liability (Note 2) 58,260
Payable for investments purchased 35,342
Payable for fund shares redeemed 28,852
Directors' fee payable 4,408
Other accrued expenses payable 73,727
-----------
Total Liabilities 2,007,609
-----------
NET ASSETS
Capital stock, $0.001 par value (Note 6) 2,929
Paid-in capital (Note 6) 82,475,098
Undistributed net investment income 84,325
Accumulated net realized loss on investments and
foreign currency transactions (55,787,835)
Net unrealized appreciation from investments and
foreign currency translations 6,585,459
-----------
Net Assets $33,359,976
===========
COMMON SHARES
Net assets $31,952,918
Shares outstanding 2,801,956
-----------
Net asset value, offering price, and redemption price per share $11.40
======
ADVISOR SHARES
Net assets $ 1,061,861
Shares outstanding 96,247
-----------
Net asset value, offering price, and redemption price per share $11.03
======
A SHARES
Net assets $ 345,197
Shares outstanding 30,465
-----------
Net asset value and redemption price per share $11.33
======
Maximum offering price per share (net asset value/(1-5.75%)) $12.02
======
</TABLE>
--------------------------------------------------------------------------------
1 Including $1,719,539 of securities on loan.
See Accompanying Notes to Financial Statements.
17
CREDIT SUISSE EMERGING MARKETS FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Investment Income (Note 2)
Dividends $ 474,941
Interest 11,068
Securities lending 2,942
Foreign taxes withheld (61,937)
-----------
Total investment income 427,014
-----------
EXPENSES
Investment advisory fees (Note 3) 220,691
Administrative services fees (Note 3) 35,769
Distribution fees (Note 3)
Common Class 42,412
Class A 346
Transfer agent fees (Note 3) 53,081
Custodian fees 21,118
Printing fees (Note 3) 18,289
Registration fees 15,175
Legal fees 12,420
Audit fees 10,768
Directors' fees 8,258
Insurance expense 1,242
Commitment fees (Note 4) 435
Miscellaneous expense 5,890
-----------
Total expenses 445,894
Less: fees waived (Note 3) (103,216)
-----------
Net expenses 342,678
-----------
Net investment income 84,336
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY RELATED ITEMS
Net realized gain from investments (including Thailand
Capital Gain Tax of $54,399) 4,117,134
Net realized loss on foreign currency transactions (45,767)
Net change in unrealized appreciation (depreciation)
from investments (873,376)
Net change in unrealized appreciation (depreciation)
from foreign currency translations 55,163
-----------
Net realized and unrealized gain from investments and
foreign currency related items 3,253,154
-----------
Net increase in net assets resulting from operations $ 3,337,490
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
18
CREDIT SUISSE EMERGING MARKETS FUND
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 2005 ENDED
(UNAUDITED) OCTOBER 31, 2004
------------------ ----------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 84,336 $ 255,832
Net realized gain from investments and foreign
currency transactions 4,071,367 8,573,218
Net change in unrealized appreciation (depreciation)
from investments and foreign currency translations (818,213) (3,241,794)
----------- -----------
Net increase in net assets resulting from operations 3,337,490 5,587,256
----------- -----------
FROM DIVIDENDS
Dividends from net investment income
Common Class shares (8,634) --
Advisor Class shares (2,804) --
Class A shares (61) --
----------- -----------
Net decrease in net assets
resulting from dividends (11,499) --
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (Note 6)
Proceeds from sale of shares 2,415,795 4,252,294
Reinvestment of dividends 11,026 --
Net asset value of shares redeemed (5,861,920)1 (13,752,206)2
----------- -----------
Net decrease in net assets from capital
share transactions (3,435,099) (9,499,912)
----------- -----------
Net decrease in net assets (109,108) (3,912,656)
NET ASSETS
Beginning of period 33,469,084 37,381,740
----------- -----------
End of period $33,359,976 $33,469,084
=========== ===========
Undistributed net investment income $ 84,325 $ 11,488
=========== ===========
--------------------------------------------------------------------------------
1 Net of $33 of redemption fees retained by the Fund.
2 Net of $2,215 of redemption fees retained by the Fund.
See Accompanying Notes to Financial Statements.
19
CREDIT SUISSE EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 -----------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period $ 10.39 $ 8.86 $ 6.43 $ 6.58 $ 9.03 $ 9.27
-------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income (loss) 0.031 0.071 0.031 (0.00)1,2 0.04 0.04
Net gain (loss) on investments
and foreign currency related items
(both realized and unrealized) 0.98 1.46 2.40 (0.15) (2.46) (0.28)
-------- -------- -------- -------- -------- --------
Total from investment operations 1.01 1.53 2.43 (0.15) (2.42) (0.24)
-------- -------- -------- -------- -------- --------
LESS DIVIDENDS
Dividends from net investment income (0.00)2 -- -- -- (0.03) --
-------- -------- -------- -------- -------- --------
REDEMPTION FEES 0.003 0.003 0.003 0.003 -- --
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.40 $ 10.39 $ 8.86 $ 6.43 $ 6.58 $ 9.03
======== ======== ======== ======== ======== ========
Total return4 9.75% 17.27% 37.64% (2.28)% (26.92)% (2.59)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 31,953 $ 32,072 $ 36,139 $ 30,769 $ 40,463 $ 60,482
Ratio of expenses to average net assets 1.95%6 1.95% 1.85% 1.65% 1.65% 1.67%
Ratio of net investment income (loss)
to average net assets 0.47%6 0.72% 0.44% (0.00)%5 0.41% 0.44%
Decrease reflected in above operating expense
ratios due to waivers 0.58%6 0.72% 0.97% 1.16% 0.86% 0.79%
Portfolio turnover rate 58% 114% 156% 145% 188% 232%
</TABLE>
--------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 This amount represents less than $(0.01) per share.
3 This amount represents less than $0.01 per share.
4 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
Total returns for periods of less than one year are not annualized.
5 Represents less than (0.01)%.
6 Annualized.
See Accompanying Notes to Financial Statements.
20
CREDIT SUISSE EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Class Share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 -----------------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period $ 10.06 $ 8.56 $ 6.25 $ 6.41 $ 8.78 $ 9.03
-------- -------- -------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income (loss) 0.041 0.091 0.011 (0.01)1 0.001,2 0.07
Net gain (loss) on investments
and foreign currency related items
(both realized and unrealized) 0.96 1.41 2.30 (0.15) (2.37) (0.32)
-------- -------- -------- -------- -------- --------
Total from investment operations 1.00 1.50 2.31 (0.16) (2.37) (0.25)
-------- -------- -------- -------- -------- --------
LESS DIVIDENDS
Dividends from net investment income (0.03) -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.03 $ 10.06 $ 8.56 $ 6.25 $ 6.41 $ 8.78
======== ======== ======== ======== ======== ========
Total return3 9.91% 17.52% 36.80% (2.50)% (26.99)% (2.77)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 1,062 $ 1,181 $ 1,183 $ 1,105 $ 1,331 $ 67
Ratio of expenses to average net assets 1.70%4 1.70% 2.10% 1.90% 1.91% 1.92%
Ratio of net investment income (loss)
to average net assets 0.72%4 0.97% 0.16% (0.19)% (0.07)% 0.29%
Decrease reflected in above operating expense
ratios due to waivers 0.58%4 0.72% 0.97% 1.19% 0.90% 0.75%
Portfolio turnover rate 58% 114% 156% 145% 188% 232%
</TABLE>
--------------------------------------------------------------------------------
1 Per share information is calculated using the average shares outstanding
method.
2 This amount represents less than $0.01 per share.
3 Total returns are historical and assume changes in share price and
reinvestment of all dividends and distributions. Had certain expenses not
been reduced during the periods shown, total returns would have been lower.
Total returns for periods of less than one year are not annualized.
4 Annualized.
See Accompanying Notes to Financial Statements.
21
CREDIT SUISSE EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For a Class A Share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2005 ------------------------------------
(UNAUDITED) 2004 2003 20021
----------- -------- -------- --------
<S> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period $ 10.33 $ 8.78 $ 6.45 $ 7.14
-------- -------- -------- --------
INVESTMENT OPERATIONS
Net investment income (loss) 0.042 0.032 (0.03)2 0.07
Net gain (loss) on investments and
foreign currency related items
(both realized and unrealized) 0.96 1.52 2.36 (0.76)
-------- -------- -------- --------
Total from investment operations 1.00 1.55 2.33 (0.69)
-------- -------- -------- --------
LESS DIVIDENDS
Dividends from net investment income (0.00)3 -- -- --
-------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 11.33 $ 10.33 $ 8.78 $ 6.45
======== ======== ======== ========
Total return4 9.71% 17.65% 36.34% (9.80)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 345 $ 216 $ 60 $ 90
Ratio of expenses to average net assets 1.95%5 1.95% 1.85% 1.65%5
Ratio of net investment income (loss)
to average net assets 0.68%5 0.32% (0.41)% 1.92%5
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.58%5 0.72% 0.97% 1.52%5
Portfolio turnover rate 58% 114% 156% 145%
</TABLE>
--------------------------------------------------------------------------------
1 For the period November 30, 2001 (inception date) through October 31, 2002.
2 Per share information is calculated using the average shares outstanding
method.
3 This amount represents less than $(0.01) per share.
4 Total returns are historical and assume changes in share price, reinvestment
of all dividends and distributions and no sales charge. Had certain expenses
not been reduced during the periods shown, total returns would have been
lower. Total returns for periods less than one year are not annualized.
5 Annualized.
See Accompanying Notes to Financial Statements.
22
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
Credit Suisse Emerging Markets Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as a
diversified, open-end management investment company that seeks growth of
capital. The Fund was incorporated under the laws of the State of Maryland on
December 23, 1993.
The Fund is authorized to offer three classes of shares: Common Class shares,
Advisor Class shares, and Class A shares. Each class of shares in the Fund
represents an equal pro rata interest in the Fund, except that they bear
different expenses which reflect the difference in the range of services
provided to them. The Fund's Common Class shares are closed to new investors,
other than (1) investors in employee retirement, stock, bonus, pension or
profit-sharing plans, (2) investment advisory clients of Credit Suisse Asset
Management, LLC ("CSAM"), (3) certain registered investment advisers ("RIAs"),
(4) certain broker-dealers and RIAs with clients participating in comprehensive
fee programs and (5) employees of CSAM or its affiliates and current and former
Directors or Trustees of funds advised by CSAM or its affiliates. Any Common
Class shareholder as of the close of business on December 12, 2001 can continue
to buy Common Class shares of the Fund and open new accounts under the same
Social Security number. Effective December 12, 2001, the Fund closed its Advisor
Class to new investments, except for reinvestment of dividends. Advisor Class
shareholders may continue to hold Advisor Class shares but will be unable to add
to their accounts. Although no further shares can be purchased, shareholders can
redeem their Advisor Class shares through any available method. Class A shares
are sold subject to a front-end sales charge of up to 5.75%.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
A) SECURITY VALUATION -- The net asset value of the Fund is determined daily
as of the close of regular trading on the New York Stock Exchange, Inc. (the
"Exchange") on each day the Exchange is open for business. The Fund's equity
investments are valued at market value, which is generally determined using the
closing price on the exchange or market on which the security is primarily
traded at the time of valuation (the "Valuation Time"). If no sales are
reported, equity investments are generally valued at the most recent bid
quotation as of the Valuation Time or at the lowest asked quotation in the case
of a short sale of securities. Debt securities with a remaining
23
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
maturity greater than 60 days are valued in accordance with the price
supplied by a pricing service, which may use a matrix, formula or other
objective method that takes into consideration market indices, yield curves and
other specific adjustments. Debt obligations that will mature in 60 days or less
are valued on the basis of amortized cost, which approximates market value,
unless it is determined that using this method would not represent fair value.
Securities and other assets for which market quotations are not readily
available, or whose values have been materially affected by events occurring
before the Fund's Valuation Time but after the close of the securities' primary
markets, are valued at fair value as determined in good faith by, or under the
direction of, the Board of Directors under procedures established by the Board
of Directors. The Fund may utilize a service provided by an independent third
party which has been approved by the Board of Directors to fair value certain
securities.
B) FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Fund are
maintained in U.S. dollars. Transactions denominated in foreign currencies are
recorded at the current prevailing exchange rates. All assets and liabilities
denominated in foreign currencies are translated into U.S. dollar amounts at the
current exchange rate at the end of the period. Translation gains or losses
resulting from changes in the exchange rate during the reporting period and
realized gains and losses on the settlement of foreign currency transactions are
reported in the results of operations for the current period. The Fund does not
isolate that portion of realized gains and losses on investments in equity
securities which is due to changes in the foreign exchange rate from that which
is due to changes in market prices of equity securities. The Fund isolates that
portion of realized gains and losses on investments in debt securities which is
due to changes in the foreign exchange rate from that which is due to changes in
market prices of debt securities.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on a trade date basis. Interest income is recorded on the accrual
basis. Dividends are recorded on the ex-dividend date. Certain expenses are
class-specific expenses and vary by class. Income, expenses (excluding
class-specific expenses) and realized/unrealized gains/losses are allocated
proportionately to each class of shares based upon the relative net asset value
of the outstanding shares of that class. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
24
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income and distributions of net realized capital gains, if any, are
declared and paid at least annually. However, to the extent that a net realized
capital gain can be reduced by a capital loss carryforward, such gain will not
be distributed. Income and capital gain distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States of America ("GAAP").
E) FEDERAL INCOME TAXES -- No provision is made for federal taxes as it is
the Fund's intention to continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code of
1986, as amended, and to make the requisite distributions to its shareholders,
which will be sufficient to relieve it from federal income and excise taxes.
F) USE OF ESTIMATES -- The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from these estimates.
G) SHORT-TERM INVESTMENTS -- The Fund, together with other funds/portfolios
advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect,
wholly-owned subsidiary of Credit Suisse Group, pools available cash into either
a short-term variable rate time deposit issued by State Street Bank and Trust
Company ("SSB"), the Fund's custodian, or a money market fund advised by CSAM.
The short-term time deposit issued by SSB is a variable rate account classified
as a short-term investment.
H) FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward
foreign currency contracts for the purchase or sale of a specific foreign
currency at a fixed price on a future date. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the terms
of their contracts and from unanticipated movements in the value of a foreign
currency. The Fund will enter into forward foreign currency contracts primarily
for hedging purposes. Forward foreign currency contracts are adjusted by the
daily forward exchange rate of the underlying currency, and
25
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
any gains or losses are recorded for financial statement purposes as unrealized
until the contract settlement date or an offsetting position is entered into. At
April 30, 2005, the Fund had no open forward foreign currency contracts.
I) SECURITIES LENDING -- Loans of securities are required at all times to be
secured by collateral at least equal to 102% of the market value of domestic
securities on loan (including any accrued interest thereon) and 105% of the
market value of foreign securities on loan (including any accrued interest
thereon). Cash collateral received by the Fund in connection with securities
lending activity may be pooled together with cash collateral for other
funds/portfolios advised by CSAM and may be invested in a variety of
investments, including certain CSAM-advised funds, funds advised by SSB, the
Fund's securities lending agent, or money market instruments. However, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
SSB has been engaged by the Fund to act as the Fund's securities lending
agent. The Fund's securities lending arrangement provides that the Fund and SSB
will share the net income earned from the securities lending activities. During
the six months ended April 30, 2005, total earnings from the Fund's investment
in cash collateral received in connection with securities lending arrangements
was $17,697, of which $13,505 was rebated to borrowers (brokers). The Fund
retained $2,942 from the cash collateral investment, and SSB, as lending agent,
was paid $1,250. The Fund may also be entitled to certain minimum amounts of
income from its securities lending activities. Securities lending income is
accrued as earned.
J) OTHER -- The Fund may invest in securities of foreign countries and
governments which involve certain risks in addition to those inherent in
domestic investments. Such risks generally include, among others, currency risk
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.
The Fund's investments in securities of issuers located in less developed
countries considered to be "emerging markets" involve risks in addition to those
generally applicable to foreign securities. Focusing on emerging (less
26
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
developed) markets involves higher levels of risk, including increased currency,
information, liquidity, market, political and valuation risks. Deficiencies in
regulatory oversight, market infrastructure, shareholder protections and company
laws could expose the Fund to operational and other risks as well. Some
countries may have restrictions that could limit the Fund's access to attractive
investment opportunities. Additionally, emerging markets often face serious
economic problems (such as high external debt, inflation and unemployment) that
could subject the Fund to increased volatility or substantial declines in value.
The Fund may be subject to taxes imposed by countries in which it invests
with respect to its investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned or repatriated and
capital gains realized on the sale of such investments. The Fund accrues such
taxes when the related income or capital gains are earned.
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for the Fund. For its investment advisory
services, CSAM is entitled to receive a fee from the Fund at an annual rate of
1.25% of the Fund's average daily net assets. For the six months ended April 30,
2005, investment advisory fees earned and voluntarily waived were $220,691 and
$103,216, respectively.
Credit Suisse Asset Management Limited (CSAM U.K.) ("CSAM U.K.") and Credit
Suisse Asset Management Limited (CSAM Australia) ("CSAM Australia"), affiliates
of CSAM, are sub-investment advisers to the Fund (the "Sub Advisers"). CSAM U.K.
and CSAM Australiasub-investment advisory fees are paid by CSAM out of CSAM's
net advisory fee and are not paid by the Fund.
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and SSB serve as co-administrators to the Fund.
For its co-administrative services, CSAMSI currently receives a fee
calculated at an annual rate of 0.10% of the Fund's average daily net assets.
For the six months ended April 30, 2005, co-administrative services fees earned
by CSAMSI were $17,655.
27
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
For its co-administrative services, SSB receives a fee, exclusive of
out-of-pocket expenses calculated in total for all the Credit Suisse
funds/portfolios co-administered by SSB and allocated based upon relative
average net assets of each fund/portfolio, subject to an annual minimum fee. For
the six months ended April 30, 2005, co-administrative services fees earned by
SSB (including out-of-pocket expenses) were $18,114.
In addition to serving as the Fund's co-administrator, CSAMSI currently
serves as distributor of the Fund's shares. Pursuant to distribution plans
adopted by the Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
fees for its distribution services. These fees are calculated at the annual rate
of 0.25% of the average daily net assets of the Common Class and Class A shares.
Certain brokers, dealers and financial representatives provide transfer agent
related services to the Fund, and receive compensation for these services from
CSAM. CSAM is then reimbursed by the Fund. For the six months ended April 30,
2005, the Fund reimbursed CSAM $46,062, which is included in the Fund's transfer
agent expense.
For the six months ended April 30, 2005, CSAMSI and its affiliates advised
the Fund that they retained $620 from commissions earned on the sale of the
Fund's Class A shares.
Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by
the Fund to provide certain financial printing and fulfillment services. For the
six months ended April 30, 2005, Merrill was paid $7,793 for its services to the
Fund.
NOTE 4. LINE OF CREDIT
The Fund, together with other funds/portfolios advised by CSAM (collectively,
the "Participating Funds"), participates in a $75 million committed, unsecured
line of credit facility ("Credit Facility") for temporary or emergency purposes
with Deutsche Bank, A.G. as administrative agent and syndication agent and SSB
as operations agent. Under the terms of the Credit Facility, the Participating
Funds pay an aggregate commitment fee at a rate of 0.10% per annum on the
average unused amount of the Credit Facility, which is allocated among the
Participating Funds in such manner as is determined by
28
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 4. LINE OF CREDIT
the governing Boards of the Participating Funds. In addition, the Participating
Funds pay interest on borrowings at the Federal Funds rate plus 0.50%. At April
30, 2005 and during the six months ended April 30, 2005, the Fund had no
borrowings under the Credit Facility.
NOTE 5. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2005, purchases and sales of investment
securities (excluding short-term investments) were $19,925,481 and $24,813,942,
respectively.
At April 30, 2005, the identified cost for federal income tax purposes, as
well as the gross unrealized appreciation from investments for those securities
having an excess of value over cost, gross unrealized depreciation from
investments for those securities having an excess of cost over value and the net
unrealized appreciation from investments were $28,030,446, $7,550,948,
$(910,578) and $6,640,370, respectively.
NOTE 6. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue three billion full and fractional shares of
capital stock, $0.001 par value per share, of which one billion are classified
as Common Class shares, one billion are classified as Advisor Class shares and
one billion are classified as Class A shares. Transactions in capital shares of
each class of the Fund were as follows:
COMMON CLASS
-----------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
-----------------------------------------------------
SHARES VALUE SHARES VALUE
----------- ----------- ---------- ------------
Shares sold 196,958 $ 2,298,771 378,683 $ 3,745,602
Shares issued
in reinvestment
of dividends 717 8,452 -- --
Shares redeemed (482,003) (5,635,959) (1,372,472) (13,126,573)
----------- ----------- ---------- ------------
Net decrease (284,328) $(3,328,736) (993,789) $ (9,380,971)
=========== =========== ========== ============
29
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 6. CAPITAL SHARE TRANSACTIONS
ADVISOR CLASS
-----------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
-----------------------------------------------------
SHARES VALUE SHARES VALUE
----------- ----------- ---------- ------------
Shares issued
in reinvestment
of dividends 224 $ 2,550 -- $ --
Shares redeemed (21,346) (225,846) (20,888) (203,254)
----------- ----------- ---------- ------------
Net decrease (21,122) $ (223,296) (20,888) $ (203,254)
=========== =========== ========== ============
CLASS A
-----------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
APRIL 30, 2005 (UNAUDITED) OCTOBER 31, 2004
-----------------------------------------------------
SHARES VALUE SHARES VALUE
----------- ----------- ---------- ------------
Shares sold 9,564 $ 117,024 55,545 $ 506,692
Shares issued
in reinvestment
of dividends 2 24 -- --
Shares redeemed (10) (115) (41,486) (422,379)
----------- ----------- ---------- ------------
Net increase 9,556 $ 116,933 14,059 $ 84,313
=========== =========== ========== ============
Effective September 16, 2002, a redemption fee of 2% of the value of Common
Class shares redeemed or exchanged within 30 days from the date of purchase is
charged to shareholders. Reinvested dividends and distributions are not subject
to the fee. The fee is charged based on the value of shares at redemption, is
paid directly to the Fund and becomes part of the Fund's daily net asset value
calculation. When shares are redeemed that are subject to the fee, reinvested
dividends and distributions are redeemed first, followed by the shares held
longest.
On April 30, 2005, the number of shareholders that held 5% or more of the
outstanding shares of each class of the Fund was as follows:
NUMBER OF APPROXIMATE PERCENTAGE
SHAREHOLDERS OF OUTSTANDING SHARES
------------ ----------------------
Common Class 4 56%
Advisor Class 4 23%
Class A 8 53%
Some of the shareholders are omnibus accounts, which hold shares on behalf of
individual shareholders.
30
CREDIT SUISSE EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
April 30, 2005 (unaudited)
--------------------------------------------------------------------------------
NOTE 7. CONTINGENCIES
In the normal course of business, the Fund may provide general
indemnifications pursuant to certain contracts and organizational documents. The
Fund's maximum exposure under these arrangements is dependent on future claims
that may be made against the Fund and, therefore, cannot be estimated; however,
based on experience, the risk of loss from such claims is considered remote.
31
CREDIT SUISSE EMERGING MARKETS FUND
BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
In approving the Investment Advisory Agreement with CSAM (the "Advisory
Agreement"), and the Sub-Investment Advisory Agreements with CSAM U.K. and CSAM
Australia (the "sub-Advisory Agreements"), the Board of Directors of the Fund,
including all of the Directors who are not "interested persons" of the Fund as
defined in the 1940 Act ("the Independent Directors"), considered the following
factors with respect to the Fund:
Investment Advisory Fee Rate
----------------------------
The Board reviewed and considered the contractual advisory fee rates of 1.25%
paid by the Fund (the "Contractual Advisory Fee"), to CSAM in light of the
extent and quality of the advisory services provided by CSAM or either
Sub-Adviser. The Board also reviewed and considered the fee waivers and/or
expense reimbursement arrangements currently in place for the Fund and
considered the actual fee rate of 0.95% after taking waivers and reimbursements
into account (the "Net Advisory Fee"). The Board acknowledged that the fee
waivers and reimbursements could be discontinued at any time. In addition, the
Board noted that the compensation paid to CSAM U.K. and CSAM Australia is paid
by CSAM, not the Fund, and, accordingly, that the retention of CSAM U.K. and
CSAM Australia does not increase the fees or expenses otherwise incurred by the
Fund's shareholders.
Additionally, the Board received and considered information comparing the
Fund's Contractual Advisory Fee and Net Advisory Fee and the Fund's overall
expenses with those of funds in both the relevant expense group ("Peer Group")
and universe of funds (the "Universe") provided by an independent provider of
investment company data.
Nature, Extent and Quality of the Services under the Advisory and
Sub-Advisory Agreements
--------------------------------------------------------------------
The Board received and considered information regarding the nature, extent
and quality of services provided to the Fund by CSAM under the Advisory
Agreement and by the Sub-Advisers under the Sub-Advisory Agreements. The Board
also noted information received at regular meetings throughout the year related
to the services rendered by CSAM and the Sub-Advisers. The Board reviewed
background information about CSAM and the Sub-Advisers, including their Form
ADVs. The Board considered the background and experience of CSAM's and the
Sub-Advisers' senior management and the expertise of, and the amount of
attention given to the Fund by, both junior and senior personnel of CSAM and the
Sub-Advisers. With respect to the
32
CREDIT SUISSE EMERGING MARKETS FUND
BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
Sub-Advisers, the Board also considered the particular expertise of CSAM U.K.
and CSAM Australia in managing the types of global investments which the Fund
makes. In addition, the Board reviewed the qualifications, backgrounds and
responsibilities of the portfolio management team primarily responsible for the
day-to-day portfolio management of the Fund and the extent of the resources
devoted to research and analysis of actual and potential investments. The Board
also received and considered information about the nature, extent and quality of
services and fee rates offered to other CSAM clients for comparable services.
In approving the Sub-Advisory Agreements, the Board also considered the
benefits to the Fund of retaining CSAM's United Kingdom and Australian
affiliates given the increased complexity of the domestic and international
securities markets, specifically that retention of CSAM U.K. and CSAM Australia
expands the universe of companies and countries from which investment
opportunities could be sought and enhances the ability of the Fund to obtain
best price and execution on trades in international markets.
Fund Performance
----------------
The Board received and considered the one, three and five-year performance of
the Fund, along with comparisons, for all presented periods, both to the Peer
Group and the Universe for the Fund. The Board was provided with a description
of the methodology used to arrive at the funds included in the Peer Group and
the Universe.
The Board reviewed information comparing the performance of the Fund to
performance benchmarks that the Board had previously established and progress
that had been made in certain instances toward achieving those benchmarks. The
Board also reviewed comparisons between the Fund and its identified benchmark
over various time periods.
CSAM Profitability
------------------
The Board received and considered a profitability analysis of CSAM based on
the fees payable under the Advisory Agreement for the Fund, including any fee
waivers or fee caps, as well as other relationships between the Fund on the one
hand and CSAM affiliates on the other. The Board received profitability
information for the other funds in the CSAM family of funds.
33
CREDIT SUISSE EMERGING MARKETS FUND
BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
Economies of Scale
------------------
The Board considered whether economies of scale in the provision of services
to the Fund were being passed along to the shareholders. Accordingly, the Board
considered whether alternative fee structures (such as breakpoint fee
structures) would be more appropriate or reasonable taking into consideration
economies of scale or other efficiencies that might accrue from increases in the
Fund's asset levels.
Other Benefits to CSAM and the Sub-Advisers
-------------------------------------------
The Board considered other benefits received by CSAM, the Sub-Advisers and
their affiliates as a result of their relationship with the Fund. Such benefits
include, among others, research arrangements with brokers who execute
transactions on behalf of the Fund, administrative and brokerage relationships
with affiliates of CSAM and the Sub-Advisers and benefits potentially derived
from an increase in CSAM's and the Sub-Advisers' businesses as a result of their
relationship with the Fund (such as the ability to market to shareholders other
financial products offered by CSAM, the Sub-Advisers and their affiliates).
The Board considered the standards applied in seeking best execution, whether
and to what extent soft dollar credits are sought and how any such credits are
utilized, any benefits that may be achieved by using an affiliated broker and
the existence of quality controls applicable to brokerage allocation procedures.
The Board also reviewed CSAM's and the Sub-Advisers' method for allocating
portfolio investment opportunities between the Fund and other advisory clients.
Conclusions
-----------
In selecting CSAM and the Sub-Advisers, and approving the Advisory Agreement,
the investment advisory fee under such agreement and the Sub-Advisory
Agreements, the Board concluded that:
o although the Contractual Advisory Fee was higher than the median of its
Peer Group, the fee was considered reasonable recognizing that the amount
that shareholders were actually charged, the Net Advisory Fee, was the
lowest of the Fund's Peer Group.
o recognizing that the Fund's one, three and five-year performance lagged
that of its Peer Group, the Board directed CSAM to suggest a means to
34
CREDIT SUISSE EMERGING MARKETS FUND
BOARD APPROVAL OF ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
improve performance. CSAM subsequently advised the Board that changes in the
Fund are under review in order to address underperformance.
o aside from the performance (as described above), the Board was satisfied
with the nature and extent of the investment advisory services provided to
the Fund by CSAM and the Sub-Advisers and that, based on dialogue with
management and counsel, the services provided by CSAM under the Advisory
Agreement and by the Sub-Advisers under the Sub-Advisory Agreements are
typical of, and consistent with, those provided to mutual funds by other
investment advisers and sub-advisers. The Board understood that CSAM had
or was in the process of addressing any performance issues.
o in light of the costs of providing investment management and other
services to the Fund and CSAM's ongoing commitment to the Fund and
willingness to cap fees and expenses, the profits and other ancillary
benefits that CSAM and its affiliates received were considered reasonable.
o CSAM's profitability based on fees payable under the Advisory Agreement
was reasonable in light of the nature, extent and quality of the services
provided to the Fund thereunder.
o in light of the relatively small size of the Fund and the amount of the
Net Advisory Fees, the Fund's current fee structure (without breakpoints)
was considered reasonable.
No single factor reviewed by the Board was identified by the Board as the
principal factor in determining whether to approve the Advisory and Sub-Advisory
Agreements. The Independent Directors were advised by separate independent legal
counsel throughout the process.
35
CREDIT SUISSE EMERGING MARKETS FUND
PRIVACY POLICY NOTICE (UNAUDITED)
--------------------------------------------------------------------------------
Important Privacy Choices for Consumers
---------------------------------------
We are committed to maintaining the privacy of every current and prospective
customer. We recognize that you entrust important personal information to us,
and we wish to assure you that we take seriously our responsibilities in
protecting and safeguarding this information.
In connection with making available investment products and services to
current and potential customers, we may obtain nonpublic personal information
about you. This information may include your name, address, e-mail address,
social security number, account number, assets, income, financial situation,
transaction history and other personal information.
We may collect nonpublic information about you from the following sources:
o Information we receive on applications, forms, questionnaires, web sites,
agreements or in the course of establishing or maintaining a customer
relationship; and
o Information about your transactions with us, our affiliates, or others.
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except with your consent or as otherwise permitted
by law.
RESTRICT INFORMATION SHARING WITH AFFILIATES: In cases where we believe that
additional products and services may be of interest to you, we may share the
information described above with our affiliates unless you say "No."
[ ] No, please do not share personal and financial information with your
affiliated companies. [If you check this box, you must send this notice
back to us with your name, address and account number to Credit Suisse
Funds, 466 Lexington Avenue, New York, New York 10017.]
We may also disclose this information to firms that perform services on our
behalf. These agents and service providers are required to treat the information
confidentially and use it only for the purpose for which it is provided.
We restrict access to nonpublic personal information about you to those
employees, agents or other parties who need to know that information to provide
products or services to you or in connection with your investments with or
through us. We maintain physical, electronic and procedural safeguards that
comply with federal standards to guard your nonpublic personal information.
Note: This Notice is provided to clients and prospective clients of Credit
Suisse Asset Management, LLC ("CSAM"), and Credit Suisse Asset Management
Securities, Inc., and shareholders and prospective shareholders in
CSAM-sponsored and-advised investment companies, including Credit Suisse Funds,
and other consumers and customers, as applicable. This Notice is not intended to
be incorporated in any offering materials but is merely a statement of our
current Privacy Policy, and may be amended from time to time upon notice to you.
This Notice is dated as of May 17, 2005.
36
CREDIT SUISSE EMERGING MARKETS FUND
PROXY VOTING AND PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
Information regarding how the Fund voted proxies related to its portfolio
securities during the 12-month period ended June 30, 2004 as well as the
policies and procedures that the Fund uses to determine how to vote proxies
relating to its portfolio securities are available:
o By calling 1-800-927-2874
o On the Fund's website, www.csam.com/us
o On the website of the Securities and Exchange Commission,
http://www.sec.gov.
The Fund files a complete schedule of its portfolio holdings for the first
and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms
N-Q are available on the SEC's website at http://www.sec.gov and may be reviewed
and copied at the SEC's Public Reference Room in Washington, DC. Information on
the operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330.
37
P.O. BOX 55030, BOSTON, MA 02205-5030 CREDIT | ASSET
800-927-2874 o www.csam.com/us SUISSE | MANAGEMENT
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. EMK-SAR-0405
ITEM 2. CODE OF ETHICS.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
This item is inapplicable to a semi-annual report on Form N-CSR.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
This item is not applicable to the registrant.
ITEM 6. SCHEDULE OF INVESTMENTS
Included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
This item is not applicable to the registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
This item is not applicable to the registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
This item is not applicable to the registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Nominating Committee recommends Board member candidates. Shareholders of the
registrant may also submit nominees that will be considered by the Committee.
Recommendations should be mailed to the registrant's Secretary, c/o Credit
Suisse Asset Management, LLC, 466 Lexington Avenue, New York, NY 10017. Any
submission should include at a minimum the following information: the name, age,
business address, residence address and principal occupation or employment of
such individual; the class, series and number of shares of the registrant that
are beneficially owned by such individual; the date such shares were acquired
and the investment intent of such acquisition; whether such shareholder believes
such individual is, or is not, an "interested person" of the registrant (as
defined in the Investment Company Act of 1940) and information regarding such
individual that is sufficient, in the Committee's discretion, to make such
determination; and all other information relating to such individual that is
required to be disclosed in solicitation of proxies for election of directors in
an election contest (even if an election contest is not involved) or is
otherwise required pursuant to the rules for proxy materials under the
Securities Exchange Act of 1934.
ITEM 11. CONTROLS AND PROCEDURES.
(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.
(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
registrant's last fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.
(a)(3) Not applicable.
(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Credit Suisse Emerging Markets Fund, Inc.
/s/ Michael E. Kenneally
--------------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: July 5, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/ Michael E. Kenneally
--------------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: July 5, 2005
/s/ Michael A. Pignataro
--------------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: July 5, 2005
EXHIBIT 12(a)(2)
CERTIFICATIONS
I, Michael A. Pignataro, certify that:
1. I have reviewed this report on Form N-CSR of Credit Suisse Emerging
Markets Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted account principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal half-year (the registrant's second fiscal half-year in the case of
an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
Date: July 5, 2005
/s/ Michael A. Pignataro
------------------------
Michael A. Pignataro
Chief Financial Officer
I, Michael E. Kenneally, certify that:
1. I have reviewed this report on Form N-CSR of Credit Suisse Emerging
Markets Fund, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash
flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and
have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted account principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal half-year (the registrant's second fiscal half-year in the case of
an annual report) that has materially affected. or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial data information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
Date: July 5, 2005
/s/ Michael E. Kenneally
------------------------
Michael E. Kenneally
Chief Executive Officer
EXHIBIT 12(b)
SECTION 906 CERTIFICATIONS
SECTION 906 CERTIFICATION
Michael E. Kenneally, Chief Executive Officer, and Michael A. Pignataro,
Chief Financial Officer, of Credit Suisse Emerging Markets Fund, Inc. (the
"Fund"), each certify to his knowledge that:
(1) The Fund's periodic report on Form N-CSR for the period ended April 30, 2005
(the "Report") fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Fund.
/s/ Michael E. Kenneally /s/ Michael A. Pignataro
------------------------ ------------------------
Michael E. Kenneally Michael A. Pignataro
Chief Executive Officer Chief Financial Officer
July 5, 2005 July 5, 2005
A signed original of this written statement required by Section 906, or other
document authenticating, acknowledging, or otherwise adopting the signature that
appears in typed form within the electronic version of this written statement
required by Section 906, has been provided to the Fund and will be retained by
the Fund and furnished to the Securities and Exchange Commission or its staff
upon request.