<PAGE>
Credit Suisse Asset Management Strategic Global Income Fund, Inc.
153 East 53rd Street
New York, NY 10022
- ---------------------------------------------
OFFICERS AND DIRECTORS
<TABLE>
<S> <C>
William W. Priest, Jr. Gregg M. Diliberto
CHAIRMAN OF THE BOARD INVESTMENT OFFICER
Prof. Enrique R. Arzac Suzanne E. Moran
DIRECTOR INVESTMENT OFFICER
Lawrence J. Fox Hal Liebes
DIRECTOR SENIOR VICE PRESIDENT
James S. Pasman, Jr. Michael A. Pignataro
DIRECTOR CHIEF FINANCIAL OFFICER,
Richard J. Lindquist VICE PRESIDENT AND
PRESIDENT AND CHIEF SECRETARY
INVESTMENT OFFICER Robert M. Rizza
VICE PRESIDENT AND
TREASURER
</TABLE>
- --------------------------------------------------------
INVESTMENT ADVISER
Credit Suisse Asset Management, LLC.
153 East 53rd Street
New York, New York 10022
Phone 1-800-293-1232
- --------------------------------------------------------
ADMINISTRATOR
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
- --------------------------------------------------------
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
- --------------------------------------------------------
SHAREHOLDER SERVICING AGENT
BankBoston, N.A.
P.O. Box 1865
Mailstop 45-02-62
Boston, Massachusetts 02105-1865
Phone 1-800-730-6001
- --------------------------------------------------------
LEGAL COUNSEL
Willkie Farr & Gallagher
787 7th Avenue
New York, New York 10019
- --------------------------------------------------------
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
- --------------------------------------------------------
- ---------------------------------------------------------------------------
Credit Suisse Asset Management
Strategic Global Income Fund, Inc.
- ---------------------------------------------------------------------------
THIRD QUARTER REPORT
September 30, 1999
<PAGE>
CREDIT SUISSE ASSET MANAGEMENT STRATEGIC GLOBAL INCOME FUND, INC.
THIRD QUARTER REPORT - 9/30/99
- ----------
Dear Shareholders: October 25, 1999
We are writing to report on the activities of Credit Suisse Asset Management
Strategic Global Income Fund, Inc. ("the Fund") for the quarter ended
September 30, 1999 and to discuss our investment strategy.
At September 30, 1999, the Fund's net asset value ("NAV") was $8.90,
compared to an NAV of $9.29 at June 30, 1999. The Fund's total return (based on
NAV and assuming reinvestment of dividends of $0.29 per share) for the period
was -0.8%. For the first nine months of 1999, the Fund returned 4.9%.
At September 30, 1999, $48.4 million was invested in high yield debt
securities; $1.9 million in investment-grade debt securities; $15.3 million in
emerging-market debt securities; and the balance of $8.7 million in
developed-world debt securities, equity securities and cash equivalents. Of the
debt securities, the largest concentration (57.0%) was invested in B-rated
issues.
THE MARKET: MORE FED-WATCHING
Much as they did in the second quarter, participants in global fixed income
markets expended considerable time and effort in trying to determine whether the
Federal Reserve would raise short-term U.S. interest rates again, after doing so
by a quarter of a percentage point on June 30.
Trading activity throughout the quarter was volatile, as investors bought
and sold according to whatever hints they could glean about Fed monetary policy
from things like announcements of macroeconomic data and public comments by Fed
Chairman Alan Greenspan. By the time the Fed raised rates by another
quarter-point at its policy meeting on August 24, the market was expecting such
a move and investors responded with a burst of buying.
Obsessive Fed-watching subsided a bit in September, as investors paid
greater attention to conditions on a number of fronts. The yen continued its
remarkable upward reversal versus the U.S. dollar, for instance, raising
concerns about its potentially destabilizing impact on the Japanese economy. The
dollar, for its part, also suffered from the news that the U.S. trade deficit
hit yet another record high in August. And strength in key commodities like oil
and gold rekindled fears about a resurgence in global inflation.
Trading liquidity tended to be low, as it was in most fixed income sectors.
This was a result of a number of factors, including dealers' determination to
minimize their own exposure to market risk by generally maintaining lower
inventories of most securities; Y2K-related concerns; and an increase in the
difference in yield between Treasury securities and high-quality corporate
bonds, which is a closely watched indicator of risk.
As measured by the Salomon Smith Barney High-Yield Market Index (SSBHYMI),
the broad high yield market fell 1.7% during the quarter. It thus underperformed
investment-grade securities, which (in the form of the Lehman Brothers U.S.
Aggregate Bond Index) rose 0.7%. High yield's decline reflected mostly
big-picture influences like Fed-watching and the others cited above, rather than
factors specific to high yield itself.
Emerging market debt, by contrast, was relatively strong in this
environment, as J.P. Morgan's Emerging Markets Bond Index Plus (EMBI+) rose
1.2%. Unlike high yield and investment-grade issues, emerging debt was able to
shrug off big-picture worries. Strength in the prices of oil and gold--which
fanned inflationary fears in developed-world markets--was considered favorable
for emerging nations, since the economies of many are heavily dependent on
commodity exports.
PERFORMANCE: DRIVEN BY STRENGTH IN HIGH YIELD
The Fund performed comparatively well during the quarter, driven by the high
yield portion of the portfolio.
HIGH YIELD. We attribute the Fund's outperformance of the broad high yield
market to the positive impact of several of our sector allocation decisions:
- We maintained exposure to the cable/media, gaming and telecommunications
sectors at levels higher than those of broad high yield indices like
SSBHYMI. This helped the Fund's overall performance in that each of these
sectors outperformed high yield more generally.
- We minimized exposure to health care facilities and supplies companies,
which significantly underperformed the market.
- The factor that most negatively affected performance was our relatively
low exposure to the energy sector, which was among the strongest in high
yield in the quarter.
INTERNATIONAL. Performance of the emerging markets portion of the
portfolio, which accounted for nearly one-quarter of total assets, lagged that
of emerging debt markets generally. This was because we did not own enough
"Brady" bonds, which are backed by U.S. Treasury debt, based on their
vulnerability to fluctuation in U.S. interest rates; and our allocations to
Venezuela and Argentina.
2
<PAGE>
OUTLOOK: CAUTIOUS IN NEAR TERM, OPTIMISTIC FURTHER AHEAD
HIGH YIELD. Our near-term outlook for the high yield market is one of
caution. This is primarily due to our expectation that investor nervousness
about Y2K and its potential dangers for corporate and government technology
systems will keep an unusually high proportion of market participants on the
sidelines during the fourth quarter. This environment should apply not simply to
high yield, incidentally, but to equity and debt markets worldwide. Trading
liquidity should decline and market uncertainty should rise accordingly.
There is also the matter of lingering concern that the Federal Reserve might
choose to raise short-term interest rates again at its remaining monetary policy
meetings on November 16 and December 21. Although we don't necessarily expect
such a move, we can't rule it out, either, since the Fed adopted a tightening
bias on October 5 and the futures market is forecasting rates to rise another 50
basis points or so by year-end.
We are less guardedly optimistic when the time horizon stretches into next
year, as a number of factors support a more bullish scenario for the first
quarter:
- The Y2K phenomenon will have come and gone, and in its wake should leave
valuations at more attractive levels.
- The economy should stay strong, which is traditionally favorable for high
yield issuers.
- Liquidity should return to the market from a combination of dealers with
more risk capital available for trading and inventory once 1999 is over;
individuals and institutions returning from the sidelines with fresh cash
and a renewed appetite for buying; and issuers eager to tap the market
once the worst of Y2K-based anxiety has passed.
- Investor tolerance for risk tends to increase at the beginning of a
calendar year.
The essential strategy with which we have managed the Fund's high yield
portion for some time remains intact. We are keeping the portfolio most heavily
weighted in telecommunications, cable/media and gaming, whose positive industry
and company fundamentals are unchanged. We are also selectively adding to
positions in economically sensitive industries such as paper and energy, whose
underlying fundamentals are beginning to show genuine signs of improvement, and
will continue to do so if this trend continues.
If, as we expect, the high yield market enjoys greater investor interest in
the first quarter of next year, we are confident that we have positioned the
Fund to benefit accordingly.
INTERNATIONAL. Our near-term view on the prospects for emerging debt
markets also is cautious, but less so than for high yield. Problematic factors,
such as the possibility of heavy new issuance well before the year 2000 and
election-based nervousness in Mexico and Argentina, may be offset to some extent
by the availability of substantial new cash generated from the amortization of
large quantities of Argentine and Brazilian Brady debt in mid-October.
Looking further ahead, we are more optimistic. Concern about the factors
noted above should dissipate and thus allow investors to re-focus their
attention on improving fundamentals in many developing nations and the markets'
stronger technical environment.
Country allocations in the portfolio's emerging allocation continue to
emphasize Latin American markets. Relative to EMBI+, we have raised exposure in
Brazil and Argentina to an overweight from neutral; and remain overweight in
Mexico and Venezuela. Positions in Asia reflect greater caution due to our sense
that valuations there already include favorable expectations.
As developments occur that we believe would be of interest to you, we will
keep you informed. Meanwhile, if you have any questions about your portfolio or
the capital markets generally, please feel free to call upon us at any time.
We appreciate your interest in the Fund and would be pleased to respond to
your questions or comments. Any questions regarding net asset value,
performance, dividends, portfolio management or allocations should be directed
to Credit Suisse Asset Management at (800) 293-1232. All other inquiries
regarding account information or requests for a prospectus or other reports
should be directed to the Fund's Shareholder Servicing Agent at (800) 428-8890.
Sincerely yours,
/s/ Richard J. Lindquist
Richard J. Lindquist
PRESIDENT AND CHIEF INVESTMENT OFFICER *
/s/ William W. Priest, Jr.
William W. Priest, Jr.
CHAIRMAN OF THE BOARD **
3
<PAGE>
FROM CREDIT SUISSE ASSET MANAGEMENT:
I. Effective January 12, 1999, the Fund's investment adviser, BEA
Associates, changed its name to Credit Suisse Asset Management ("CSAM"). In
making the announcement, the firm said that it expected the new name to enhance
its recognition as a global asset manager. Credit Suisse Asset Management is the
investment division of Credit Suisse Group, one of the world's largest financial
organizations, with $600 billion in assets under management.
II. Effective May 11, 1999, the BEA Strategic Global Income Fund, Inc.
announced that, following approval by shareholders at their Annual Shareholders'
Meeting held on May 10, 1999, the Fund had changed its name to Credit Suisse
Asset Management Strategic Global Income Fund, Inc. The Fund's ticker symbol on
the New York Stock Exchange changed to "CGF" from "FBI" accordingly.
III. Effective September 7, 1999, shareholders whose shares are registered
in their own name automatically participate in a dividend reinvestment program
known as the InvestLinkSM Program (the "Program"). The Program can be of value
to shareholders in maintaining their proportional ownership interest in the Fund
in an easy and convenient way. A shareholder whose shares are held in the name
of a broker/dealer or nominee should contact the Fund's Transfer Agent for
details about participating in the Program. The Program also provides for
additional share purchases. The Program is described on pages 17 through 18 of
this report.
IV. The Fund issued to its shareholders of record as of the close of
business on September 27, 1999, non-transferable Rights to subscribe for up to
an aggregate of 3,522,559 shares of Common Stock of the Fund at a rate of one
share of Common Stock for three Rights held at the subscription price of $6.38
per share. During October 1999, the Fund issued a total of 3,522,559 shares of
Common Stock on exercise of such Rights. Rights' offering costs of $441,000 were
charged directly against the proceeds of the Offering.
V. Many services provided to the Fund and its shareholders by CSAM and the
Fund's service providers rely on the functioning of their respective computer
systems. Many computer systems cannot distinguish the year 2000 from the year
1900, with resulting potential difficulty in performing various calculations
(the "Year 2000 Issue"). The Year 2000 Issue could potentially have an adverse
impact on the handling of security trades, the payment of interest and
dividends, pricing, account services and other Fund operations.
CSAM recognizes the importance of the Year 2000 Issue and is taking
appropriate steps necessary in preparation for the year 2000. At this time,
there can be no assurance that these steps will be sufficient to avoid any
adverse impact on the Fund, nor can there be any assurance that the Year 2000
Issue will have an adverse effect on the Fund's investments or on global markets
or economies, generally.
CSAM anticipates that its systems will be adapted in time for the year 2000.
CSAM is seeking assurances that comparable steps are being taken by the Fund's
other major service providers. CSAM will be monitoring the Year 2000 Issue in an
effort to ensure appropriate preparation.
* Richard J. Lindquist, who is a Managing Director of Credit Suisse Asset
Management ("CSAM"), formerly known as BEA Associates, is primarily responsible
for management of the Fund's assets. He has served in such capacity since
November 21, 1996. Prior to that date, he served as Vice President to the Fund,
a position he assumed on August 15, 1989. Mr. Lindquist joined CSAM on May 1,
1995 as a result of CSAM's acquisition of CS First Boston Investment Management
Corporation ("CSFBIM"). Prior to joining CSAM and beginning in July, 1989, he
held various offices at CSFBIM. Mr. Lindquist also is President and Chief
Investment Officer of Credit Suisse Asset Management Income Fund, Inc.
** William W. Priest, Jr., who is a Managing Director and Chief Executive
Officer-Americas of Credit Suisse Asset Management ("CSAM"), formerly known as
BEA Associates, joined CSAM in 1972. Mr. Priest is Director and President of The
Indonesia Fund, Inc. and Director and Chairman of the Board of Credit Suisse
Asset Management Income Fund, Inc.; The Brazilian Equity Fund, Inc.; The Chile
Fund, Inc.; The Emerging Markets Infrastructure Fund, Inc.; The Emerging Markets
Telecommunications Fund, Inc.; The First Israel Fund, Inc.; The Latin America
Equity Fund, Inc.; The Latin America Investment Fund, Inc.; and The Portugal
Fund, Inc.
4
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
- ---------
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
- -----------------
DOMESTIC SECURITIES (76.1%)
- --------------------------------------------------------------------------------------------
- -----------------
CORPORATE OBLIGATIONS (65.2%)
- --------------------------------------------------------------------------------------------
- -----------------
AUTOMOTIVE (1.1%)
Cambridge Industries,
Inc.
Sr. Sub. Notes
10.25%, 7/15/07 B3 $ 250 $ 161,875
Collins & Aikman Products
Senior. Sub. Notes
11.50%, 4/15/06 B3 250 236,250
Hayes Lemmerz
International, Inc.
Series B, Gtd. Sr. Sub.
Notes
8.25%, 12/15/08 B2 250 220,000
Oxford Automotive, Inc.
Gtd. Sr. Sub. Notes
10.125%, 6/15/07 Caa1 250 238,125
-----------
GROUP TOTAL 856,250
-----------
- --------------------------------------------------------------------------------------------
- -----------------
BROADCASTING (6.4%)
(1) Acme Television L.L.C./
ACME Financial Corp.
Gtd. Sr. Discount Notes
0.00%, 9/30/04 B3 500 438,125
(1)(2) Australis Holdings Pty.
Ltd.
Yankee Sr. Secured
Discount Notes
0.00%, 11/1/02 N/R 650 6,500
(2) Australis Media Ltd.
Yankee Units
15.75%, 5/15/03 C 729 3,644
Capstar Broadcasting
Partners, Inc.:
Sr. Sub. Notes
9.25%, 7/1/07 B2 200 201,500
(1) Sr. Discount Notes
0.00%, 2/1/09 N/R 500 420,000
Coaxial Communications,
Inc.
Gtd. Sr. Notes
10.00%, 8/15/06 B3 250 253,125
Digital Television
Services
Inc./DTS Capital, Inc.
Series B, Gtd. Sr. Sub.
Notes
12.50%, 8/1/07 B3 250 270,625
EchoStar Communications
Corp.
Gtd. Sr. Discount Notes
9.375%, 2/1/09 B2 250 246,563
Granite Broadcasting,
Inc.
Sr. Sub. Notes
8.875%, 5/15/08 B3 250 241,250
Pegasus Media &
Communications, Inc.
Series B, Notes
12.50%, 7/1/05 B2 250 273,125
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Sinclair Broadcast
Group, Inc.:
Sr. Sub. Notes
10.00%, 9/30/05 B2 $ 300 $ 298,500
8.75%, 12/15/07 B2 250 233,750
Spanish Broadcasting
System, Inc.
Sr. Notes
12.50%, 6/15/02 B3 250 284,375
(1) United International
Holdings, Inc.
Series B, Sr. Discount
Notes
0.00%, 2/15/08 B3 500 302,500
Univision Network
Holding, L.P.
Sub. Notes
7.00%, 12/17/02 N/R 573 690,555
Young Broadcasting, Inc.:
Series B, Gtd. Sr. Sub.
Notes
9.00%, 1/15/06 B2 200 197,500
8.75%, 6/15/07 B2 450 438,750
-----------
GROUP TOTAL 4,800,387
-----------
- --------------------------------------------------------------------------------------------
- -----------------
BUSINESS SERVICES (0.6%)
General Binding Corp.
Gtd. Sr. Sub. Notes
9.375%, 6/1/08 B2 250 216,875
Iron Mountain, Inc.
Sr. Notes
8.75%, 9/30/09 B3 250 236,250
-----------
GROUP TOTAL 453,125
-----------
- --------------------------------------------------------------------------------------------
- -----------------
CABLE (6.9%)
(1) Avalon Cable Holdings,
Inc.
Units
0.00%, 12/1/08 Caa1 500 328,125
CSC Holdings, Inc.
Sr. Sub. Deb.
9.875%, 2/15/13 B1 250 263,125
Century Communications
Corp.
Sr. Notes
8.75%, 10/1/07 Ba3 250 239,375
(3) Charter Communications
Holdings:
Sr. Notes
8.625%, 4/1/09 B3 200 188,000
(1) Sr. Discount Notes
0.00%, 4/1/11 B3 300 178,125
Comcast Corp.
Sr. Sub. Notes
9.125%, 10/15/06 B2 250 264,990
(1) Comcast UK Cable
Partners, Ltd.
Yankee Sr. Debentures
0.00%, 11/15/07 B2 500 452,500
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
(1) DIVA Systems Corp.
Series B, Sr. Discount
Notes
0.00%, 3/1/08 N/R $ 810 $ 241,987
(1) Diamond Cable
Communications plc
Yankee Discount Notes
0.00%, 12/15/05 Caa1 300 269,250
(1) Falcon Holdings Group,
L.P./
Falcon Funding Corp.
Sr. Discount Debentures
0.00%, 4/15/10 B2 500 354,375
Helicon Group L.P.
Series B, Sr. Secured
Notes
11.00%, 11/1/03 B1 200 208,000
InterMedia Capital
Partners IV L.P./
InterMedia Partners
Capital Corp.
Sr. Notes
11.25%, 8/1/06 B2 175 192,500
(1) International
CableTelevision
Sr. Notes
0.00%, 2/1/06 B3 500 435,000
James Cable Partners L.P.
Series B, Sr. Notes
10.75%, 8/15/04 N/R 100 100,250
Lenfest Communications,
Inc.
Sr. Sub. Notes
10.50%, 6/15/06 B2 350 395,500
NTL Communications
Corp.:
Series B, Sr. Sub. Notes
10.00%, 2/15/07 B3 250 255,625
(1) 0.00%, 10/1/08 B3 250 167,500
OpTel, Inc.
Series B, Sr. Notes
13.00%, 2/15/05 B3 250 176,250
Rifkin Acquisitions
Partners L.P.
Sr. Sub. Notes
11.125%, 1/15/06 B3 250 275,000
(1) Telewest Communications
plc
Yankee Sr. Sub. Discount
Debentures
0.00%, 10/1/07 B1 250 222,500
-----------
GROUP TOTAL 5,207,977
-----------
- --------------------------------------------------------------------------------------------
- -----------------
CHEMICALS (1.1%)
(3) Huntsman Corp.
Sr. Sub. Notes
9.50%, 7/1/07 B2 250 230,625
Huntsman Polymers Corp.
Sr. Notes
11.75%, 12/1/04 B1 250 271,250
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NL Industries, Inc.
Sr. Secured Notes
11.75%, 10/15/03 B1 $ 150 $ 154,875
Texas Petrochemical Corp.
Series B, Sr. Sub. Notes
11.125%, 7/1/06 N/R 200 168,500
-----------
GROUP TOTAL 825,250
-----------
- --------------------------------------------------------------------------------------------
- -----------------
CONSTRUCTION & BUILDING MATERIALS (0.6%)
American Architectural
Products Corp.
Gtd. Sr. Notes
11.75%, 12/01/07 Caa1 250 124,375
Brand Scaffold Services
Sr. Notes
10.25%, 2/15/08 B3 150 135,375
Presley Companies
Sr. Notes
12.50%, 7/1/01 Caa3 250 222,500
-----------
GROUP TOTAL 482,250
-----------
- --------------------------------------------------------------------------------------------
- -----------------
CONSUMER PRODUCTS & SERVICES (2.1%)
(1) Coinstar, Inc.
Sr. Discount Notes
0.00%, 10/1/06 Caa1 350 366,187
Holmes Products Corp.
Gtd. Sr. Sub. Notes
9.875%, 11/15/07 B3 200 184,500
Jordan Industries, Inc.
Series B, Sr. Notes
10.375%, 8/1/07 B3 225 213,188
(1) Knology Holdings, Inc.
Sr. Discount Notes
0.00%, 10/15/07 N/R 250 142,188
Playtex Products, Inc.
Series B, Gtd. Sr. Notes
8.875%, 7/15/04 B1 200 199,000
Revlon Consumer
Products Corp.
Series B, Sr. Sub. Notes
8.625%, 2/1/08 B3 250 203,750
United Rentals, Inc.
Sr. Sub.Notes
9.25, 1/15/09 B1 250 240,625
-----------
GROUP TOTAL 1,549,438
-----------
- --------------------------------------------------------------------------------------------
- -----------------
ELECTRONICS (1.3%)
Details, Inc.
Series B, Sr. Sub Notes
10.00%, 11/15/05 B3 250 236,563
Unisys Corp.
Sr. Notes
11.75%, 10/15/04 B1 100 111,250
Verio, Inc.
Units
13.50%, 6/15/04 B3 400 431,000
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Viasystems, Inc.
Sr. Sub. Notes
9.75%, 6/1/07 B3 $ 250 $ 214,375
-----------
GROUP TOTAL 993,188
-----------
- --------------------------------------------------------------------------------------------
- -----------------
ENERGY (3.3%)
Belden & Blake Energy Co.
Series B, Gtd. Sr. Sub.
Notes
9.875%, 6/15/07 B3 200 132,500
Bellwether Exploration
Co.
Gtd. Sr. Sub. Notes
10.875%, 4/1/07 B3 250 230,000
Canadian Forest Oil, Ltd.
Sr. Sub. Notes
8.75%, 9/15/07 B2 250 240,000
Cliffs Drilling Co.
Series D, Gtd. Sr. Notes
10.25%, 5/15/03 B1 250 247,500
Continental Resources,
Inc.
Gtd. Sr. Notes
10.25%, 8/1/08 B3 150 118,875
Dual Drilling Co.
Gtd. Sr. Sub. Notes
9.875%, 1/15/04 Baa3 250 262,510
Energy Corp. of America
Series A, Sr. Sub. Notes
9.50%, 5/15/07 B2 250 222,812
H.S. Resources, Inc.
Gtd. Sr. Sub. Notes
9.25%, 11/15/06 B2 250 246,250
Kelley Oil & Gas Corp.
Sr. Secured Notes
14.00%, 4/15/03 B3 184 183,540
(3) Key Energy Services,
Inc.
Sr. Sub. Notes
14.00%, 1/15/09 B3 250 261,875
Southwest Royalties, Inc.
Series B, Gtd. Sr. Notes
10.50%, 10/15/04 B3 250 121,875
Wiser Oil Co.
Gtd. Sr. Sub. Notes
9.50%, 5/15/07 B2 250 203,750
-----------
GROUP TOTAL 2,471,487
-----------
- --------------------------------------------------------------------------------------------
- -----------------
ENTERTAINMENT (2.3%)
American Skiing Co.
Series B, Sr. Sub. Notes
12.00%, 7/15/06 B3 200 180,500
Bally Total Fitness
Holding
Corp.
Series D, Sr. Sub. Notes
9.875%, 10/15/07 B3 150 141,375
Booth Creek Ski Holdings,
Inc.
Series B, Sr. Notes
12.50%, 3/15/07 Caa1 250 186,875
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Cinemark U.S.A., Inc.
Series D, Sr. Sub. Notes
9.625%, 8/1/08 B2 $ 200 $ 172,500
PTI Holdings, Inc.
Sub. Notes
7.00%, 12/17/02 N/R 507 610,833
(2)(3) Premier Cruises, Ltd.
Sr. Notes
11.00%, 3/15/08 B3 250 36,250
Production Resource
Group,
L.L.C./PRG Finance Group
Gtd. Sr. Sub. Notes
11.50%, 1/15/08 Caa2 250 236,875
Regal Cinemas, Inc.
Sr. Sub. Notes
8.875%, 12/15/10 N/R 250 158,125
-----------
GROUP TOTAL 1,723,333
-----------
- --------------------------------------------------------------------------------------------
- -----------------
FINANCIAL SERVICES (0.1%)
(2) Westfed Holdings
Sr. Debentures
15.50%, 9/15/99 N/R 250 62,500
-----------
- --------------------------------------------------------------------------------------------
- -----------------
FOOD & BEVERAGES (1.3%)
AmeriServ Food
Distribution, Inc.
Gtd. Sr. Notes
8.875%, 10/15/06 B1 200 156,000
Archibald Candy Corp.
Gtd. Sr. Secured Notes
10.25%, 7/1/04 B2 250 246,875
(3) Fleming Companies, Inc.
Sr. Sub. Notes
10.50%, 12/1/04 B3 200 186,000
(3) Premier International
Foods plc
Sr. Notes
12.00%, 9/1/09 B3 400 403,000
-----------
GROUP TOTAL 991,875
-----------
- --------------------------------------------------------------------------------------------
- -----------------
HEALTH CARE (0.6%)
(3) ICN Pharmaceutical
Sr. Notes
8.75%, 11/15/08 Ba3 250 238,125
(3) Insight Health Services
Corp.
Gtd. Sr. Sub. Notes
9.625%, 6/15/08 B3 200 186,500
Integrated Health
Services,
Inc.
Sr. Sub. Notes
9.25%, 1/15/08 B2 250 42,500
-----------
GROUP TOTAL 467,125
-----------
- --------------------------------------------------------------------------------------------
- -----------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INDUSTRIAL GOODS & MATERIALS (2.9%)
Applied Extrusion
Technologies Corp.
Sr. Notes
11.50%, 4/1/02 B2 $ 250 $ 256,875
Atlantis Group, Inc.
Sr. Notes
11.00%, 2/15/03 B2 250 252,500
Delco Remy
International, Inc.
Gtd. Sr. Sub. Notes
10.625%, 8/1/06 B2 250 250,000
Golden Ocean Group, Ltd.
Gtd. Sr. Notes
10.00%, 8/31/01 B3 513 53,865
Haynes International,
Inc.
Sr. Notes
11.625%, 9/1/04 B3 250 225,000
Park-Ohio Industries,
Inc.
Sr. Sub. Notes
9.25%, 12/1/07 B2 200 190,000
Romacorp., Inc.
Sr. Notes
12.00%, 7/1/06 B3 250 241,875
SRI Receivables Purchase
Co., Inc.
Series B, Notes
12.50%, 12/15/00 N/R 500 450,000
(3) Transportation
Manufacturing Operations
Sr. Sub. Notes
11.25%, 5/1/09 B2 250 248,750
-----------
GROUP TOTAL 2,168,865
-----------
- --------------------------------------------------------------------------------------------
- -----------------
MEDICAL (0.3%)
(3) Triad Hospitals Holdings
11.00%, 5/15/09 B3 200 199,500
-----------
- --------------------------------------------------------------------------------------------
- -----------------
METALS & MINING (2.2%)
Algoma Steel, Inc.
Yankee First Mortgage
Notes
12.375%, 7/15/05 B1 250 210,000
(2) Gulf States Steel, Inc.
First Mortgage Notes
13.50%, 4/15/03 B1 250 37,500
Metallurg, Inc.
Series B, Gtd. Sr. Notes
11.00%, 12/1/07 B3 250 241,875
National Steel Corp.
Series D
First Mortgage Bonds
9.875%, 3/1/09 Ba3 250 246,250
Sheffield Steel Corp.
Series B, First Mortgage
Bonds
11.50%, 12/1/05 Caa2 250 204,375
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WCI Steel, Inc.
Series B,
Sr. Secured Notes
10.00%, 12/1/04 B2 $ 250 $ 245,000
Weirton Steel Corp.
Sr. Notes
11.375%, 7/1/04 B2 200 198,500
Wheeling-Pittsburg Corp.
Sr. Notes
9.25%, 11/15/07 B2 250 240,000
-----------
GROUP TOTAL 1,623,500
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PACKAGING/CONTAINERS (2.6%)
AEP Industries, Inc.
Sr. Sub. Notes
9.875%, 11/15/07 B2 400 381,000
BWAY Corp.
Gtd. Sr. Sub. Notes
10.25%, 4/15/07 B2 150 150,750
Container Corp. of
America
Gtd. Sr. Notes
9.75%, 4/1/03 B1 250 255,625
(1) Crown Packaging
Enterprises, Ltd.
Yankee Sr. Secured
Discount Notes
0.00%, 8/1/06 Ca1 925 13,875
Gaylord Container Corp.
Series B, Sr. Notes
9.75%, 6/15/07 B3 250 233,750
Radnor Holdings, Inc.
Series B, Gtd. Sr. Notes
10.00%, 12/1/03 B2 400 404,000
Riverwood International
Corp.
Gtd. Sr. Notes
10.875%, 4/1/08 Caa1 250 235,625
Stone Container Finance
Co.
Yankee Gtd. Sr. Notes
11.50%, 8/15/06 B2 250 261,562
-----------
GROUP TOTAL 1,936,187
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PAPER & FOREST PRODUCTS (1.8%)
Ainsworth Lumber Co.,
Ltd.
Yankee Sr. Secured Notes
12.50%, 7/15/07 B3 250 275,000
Color Spot Nurseries
Sr. Sub. Notes
10.50%, 12/15/07 Caa1 200 165,000
Crown Paper Co.
Sr. Sub. Notes
11.00%, 9/1/05 B3 100 76,000
Repap New Brunswick, Inc.
Yankee Sr. Notes
10.625%, 4/15/05 Caa1 200 174,500
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SD Warren Co.
Debentures
14.00%, 12/15/06 N/A $ 603 $ 689,920
-----------
GROUP TOTAL 1,380,420
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PUBLISHING & INFORMATION SERVICES (2.7%)
(3)(4) American Media
Operation
10.25%, 5/1/09 Caa 250 242,500
Ampex Corp.
Series B, Sr. Notes
12.00%, 3/15/03 N/R 250 255,000
(1) Earthwatch, Inc.
Units
0.00%, 7/15/07 N/R 250 171,875
(3) InterAct Systems, Inc.
Sr. Discount Notes
14.00%, 8/1/03 N/R 400 147,000
Level 3
Communications, Inc.:
Sr. Notes
9.125%, 5/1/08 B3 275 248,875
(1) Sr. Discount Notes
0.00%, 12/1/08 B3 300 169,500
(1) Liberty Group
Publishing, Inc.
Sr. Discount Debentures
0.00%, 2/1/09 Caa1 300 144,000
Mentus Media Corp.
Units
12.00%, 2/1/03 N/R 414 144,900
Tri-State Outdoor Media
Group, Inc.
Sr. Notes
11.00%, 5/15/08 N/R 300 300,000
(3) TV Guide, Inc.
Sr. Sub. Notes
8.125%, 3/1/09 Ba3 200 188,750
-----------
GROUP TOTAL 2,012,400
-----------
- --------------------------------------------------------------------------------------------
- -----------------
RESTAURANTS, HOTELS & GAMING (4.5%)
American Restaurant
Group, Inc.
Gtd. Sr. Secured Notes
11.50%, 2/15/03 B3 250 225,000
Ameristar Casinos, Inc.
Series B, Gtd. Notes
10.50%, 8/1/04 B3 250 250,000
Aztar Corp.
Sr. Sub. Notes
8.875%, 5/15/07 B1 250 235,000
Casino Magic of
Louisiana,
Corp.
Series B, Gtd. First
Mortgage Notes
13.00%, 8/15/03 B3 300 341,250
(5) Colorado Gaming &
Entertainment Co.
Gtd. Sr. Notes
12.00%, 6/1/03 N/R 443 423,164
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
(2) Fitzgeralds Gaming Corp.
Series B,
Gtd. Sr. Notes
12.25%, 12/15/04 Caa3 $ 200 $ 107,000
Friendly Ice Cream Corp.
Gtd. Sr. Notes
10.50%, 12/1/07 B1 250 227,500
HMH Properties
Gtd. Sr. Secured Notes
7.875%, 8/1/08 Ba2 250 223,125
Hard Rock Hotel, Inc.
Sr. Sub. Notes
9.25%, 4/1/05 B3 250 207,500
Hollywood Park, Inc.
Sr. Sub. Notes
9.50%, 8/1/07 B2 200 195,500
Horseshoe Gaming, L.L.C.
(3) Sr. Sub Notes
8.625%, 5/15/09 B2 250 237,500
Series B, Sr. Sub. Notes
9.375%, 6/15/07 B1 300 298,500
Mohegan Tribal Gaming
Authority
Series B,
Sr. Secured Notes
8.125%, 1/1/06 Ba1 200 195,500
Prime Hospitality Corp.
Secured First Mortgage
Notes
9.25%, 1/15/06 Ba2 250 250,938
-----------
GROUP TOTAL 3,417,477
-----------
- --------------------------------------------------------------------------------------------
- -----------------
RETAIL (2.4%)
(1) Advance Holdings Corp.
Sr. Discount Debentures
0.00%, 4/15/09 Caa2 350 195,563
Advance Stores Co., Inc.
Gtd. Sr. Sub.
Notes
10.25%, 4/15/08 Caa1 150 139,875
(2)(3) County Seat Stores, Inc.
Units
12.75%, 11/1/04 N/R 250 22,500
Dairy Mart Convenience
Stores, Inc.
Sr. Sub. Notes
10.25%, 3/15/04 B3 251 234,057
Jitney-Jungle Stores of
America, Inc.:
Gtd. Sr. Notes
12.00%, 3/1/06 B3 250 175,000
Gtd. Sr. Sub. Notes
10.375%, 9/15/07 B2 250 87,500
K Mart Corp.
Debentures
7.75%, 10/1/12 Ba2 200 182,000
(1) Mrs. Fields Holding Co.
Units
0.00%, 12/1/05 Caa2 500 247,500
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Pantry, Inc.
Sr. Sub. Notes
10.25%, 10/15/07 B3 $ 200 $ 200,500
Pathmark Stores, Inc.
Sr. Sub. Notes
9.625%, 5/1/03 Caa1 100 101,000
Simmons Co.
Sr. Sub. Notes
10.25%, 3/15/09 B3 250 246,875
-----------
GROUP TOTAL 1,832,370
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TELECOMMUNICATIONS (15.5%)
Adelphia Communications
Sr. Notes
8.375%, 2/1/08 B1 200 186,500
(3)(4) Caprock Communications
Series
11.50%, 5/1/09 B3 150 144,000
(3) Carrier1 International SA
Units
13.25%, 2/15/09 B3 300 297,750
(1) Clearnet
Communications, Inc.
Yankee Sr. Discount
Notes
0.00%, 12/15/05 B3 250 235,000
Concentric Network Corp.
Sr. Notes
12.75%, 12/15/07 N/R 250 251,250
(1) DTI Holdings, Inc.
Units
0.00%, 3/1/08 N/R 300 105,000
Dobson/Sygnet
Communications, Co.
Sr. Notes
12.25%, 12/15/08 N/R 250 260,625
(1) Dolphin Telecom plc
Sr. Discount Notes
0.00%, 6/1/08 Caa1 250 114,375
(3) 0.00%, 5/15/09 Caa1 300 123,375
(1) e. spire Communications,
Inc.
Sr. Discount Notes
0.00%, 11/1/05 N/R 750 457,500
(1) Econophone, Inc.
Sr. Discount Notes
0.00%, 2/15/08 N/R 500 298,750
Exodus Communications,
Inc.
Sr. Notes
11.25%, 7/1/08 N/R 50 50,750
(1) Focal Communications
Corp.
Sr. Discount Notes
0.00%, 2/15/08 N/R 200 112,500
(1) GST USA, Inc.
Gtd. Sr. Discount Notes
0.00%, 12/15/05 N/R 600 479,250
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Global Crossing Holdings
Ltd.
Gtd. Sr. Notes
9.625%, 5/15/08 N/R $ 250 $ 256,875
Globalstar
L.P./Globalstar
Capital Corp.
Sr. Notes
10.75%, 11/1/04 B3 300 182,250
Globix Corp.
Sr. Notes
13.00%, 5/1/05 N/R 250 220,625
(1) ICG Holdings, Inc.:
Sr. Discount Notes
13.50%, 9/15/05 N/R 350 304,500
11.625%, 3/15/07 N/R 750 532,500
(1) ICG Services, Inc.
Gtd. Sr. Discount Notes
0.00%, 5/1/08 N/R 250 138,750
Intermedia
Communications, Inc.:
(1) Series B, Sr. Discount
Notes
0.00%, 7/15/07 B2 300 201,000
Sr. Notes
8.875%, 11/1/07 B2 150 134,250
Jacor Communications,
Inc.
Gtd. Sr. Sub. Notes
8.00%, 2/15/10 B2 250 252,188
(1) Jordan Telecommunications
Products, Inc.
Series B, Sr. Discount
Notes
0.00%, 8/1/07 B3 250 211,875
McCaw International Ltd.
Sr. Discount Notes
13.00%, 4/15/07 Caa1 250 150,000
McLeod USA, Inc.:
(1) Sr. Discount Notes
0.00%, 3/1/07 B2 100 78,500
Sr. Notes
9.25%, 7/15/07 B2 200 198,000
MetroNet
Communications Corp.:
Sr. Discount Notes
10.75%, 11/1/07 B 350 283,062
(1) 0.00%, 6/15/08 B3 250 192,813
(1) Millicom International
Cellular
Yankee Sr. Sub.
Discount Notes
0.00%, 6/1/06 Caa1 300 212,625
NEXTLINK
Communications, Inc.:
Sr. Notes
12.50%, 4/15/06 B3 100 105,750
10.75%, 11/15/08 B3 250 250,000
(1) Nextel
Communications, Inc.
Sr. Discount Notes
0.00%, 2/15/08 B2 900 627,750
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Orion Network
Systems, Inc.
Gtd. Sr. Notes
11.25%, 1/15/07 B2 $ 250 $ 186,875
(1) PLD Telekom Inc.
Yankee Gtd. Sr. Notes
14.00%, 6/1/04 N/R 560 380,800
(1) Pagemart Nationwide, Inc.
Sr. Discount Notes
0.00%, 2/1/05 B3 750 651,562
(1) Petersburg Long
Distance, Inc.
Conv. Sub. Notes
9.00%, 6/1/06 N/R 80 32,000
(1) Qwest Communications
International, Inc.
Sr. Discount Notes
0.00%, 10/15/07 B2 250 194,063
(1) RCN Corp.
Series B,
Sr. Discount Notes
0.00%, 2/15/08 B3 300 182,625
RSL Communications
Yankee Gtd. Sr. Notes
9.125%, 3/1/08 B3 250 208,750
Rhythms Netconnections
Units
13.50%, 5/15/08 N/R 250 122,500
Sprint Spectrum, L.P./
Sprint
Spectrum Finance Corp.
Sr. Notes
11.00%, 8/15/06 B2 450 503,797
Star Choice
Communications, Inc.
Yankee Sr. Notes
13.00%, 12/15/05 N/R 200 201,500
Startec Global
Communications Corp.
Units
12.00%, 5/15/08 N/R 350 312,812
T/SF Communications
Corp.
Series B, Gtd. Sr. Sub.
Notes
10.375%, 11/1/07 B3 200 188,500
Western Wireless Corp.
Sr. Sub. Notes
10.50%, 2/1/07 B3 250 256,875
(1) WinStar Communications,
Inc.
Sr. Discount Notes
0.00%, 10/15/05 Caa1 400 334,000
(3)(4) Worldwide Fiber, Inc.
Sr. Notes
12.00%, 8/1/09 B3 250 244,375
-----------
GROUP TOTAL 11,650,972
-----------
- --------------------------------------------------------------------------------------------
- -----------------
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXTILES/APPAREL (0.3%)
Maxim Group, Inc.
Gtd. Sr. Sub. Notes
9.25%, 10/15/07 B2 $ 250 $ 213,125
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TRANSPORTATION (1.9%)
AirTran Airlines, Inc.
Sr. Notes
10.50%, 4/15/01 N/R 500 490,625
Canadian Airlines Corp.
Yankee Sr. Notes
12.25%, 8/1/06 Caa2 300 194,250
Cenargo International plc
First Priority Ship
Mortgage Notes
9.75%, 6/15/08 Ba3 100 90,000
(1) TFM Sa De CV
0.00%, 06/15/09 N/R 850 466,438
Trans World Airlines,
Inc.
Sr. Notes
11.375%, 3/1/06 Caa1 250 161,875
-----------
GROUP TOTAL 1,403,188
-----------
- --------------------------------------------------------------------------------------------
- -----------------
WASTE MANAGEMENT (0.4%)
(3) Waste Systems
International,
Inc.
Sr. Notes
11.50%, 1/15/06 Caa1 350 347,375
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $54,770,890) 49,069,564
-----------
- --------------------------------------------------------------------------------------------
- -----------------
U.S. TREASURY NOTE (0.4%)
<CAPTION>
- -
- -----------------
<C> <S> <C> <C> <C>
7.25%, 5/15/04
(Cost $273,203) Aaa 260 274,136
-----------
- --------------------------------------------------------------------------------------------
- -----------------
ASSET BACKED OBLIGATIONS (1.4%)
<CAPTION>
- -
- -----------------
<C> <S> <C> <C> <C>
Green Tree Financial
Corp.
Manufactured Housing
Installment Sale
Contracts:
Series 1993-4, Class B1
7.20%, 1/15/19 Aaa 807 775,695
Merrill Lynch Home Equity
Acceptance Trust
Series 1994-A, Class A-2
6.47%, 7/17/22 A3 212 205,394
Nationscredit Grantor
Trust
Boat Retail Installment
Sale Contracts
Series 1996-1, Class A
5.85%, 9/15/11 Aaa 87 84,938
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL ASSET BACKED OBLIGATIONS
(Cost $1,111,883) $ 1,066,027
Shares/
Units
- --------------------------------------------------------------------------------------------
- -----------------
COMMON STOCKS (4.7%)
<CAPTION>
- -
- -----------------
BROADCASTING (0.6%)
<C> <S> <C> <C> <C>
(6) Spanish Broadcasting
System Class A 714 464,100
-----------
- --------------------------------------------------------------------------------------------
- -----------------
CABLE (0.0%)
(6) OpTel, Inc. 500 5
-----------
- --------------------------------------------------------------------------------------------
- -----------------
CONSUMER PRODUCTS & SERVICES (0.1%)
(6) Coinstar, Inc. 4,196 41,698
(6) Concentric Network Corp. 3,170 64,391
Crown Packaging Holdings,
Ltd. 100,848 1,008
-----------
GROUP TOTAL 107,097
-----------
- --------------------------------------------------------------------------------------------
- -----------------
FINANCIAL SERVICES (0.0%)
(6)(7) Westfed Holdings, Inc.
Class B (acquired
9/20/88,
$127) 4,223 0
-----------
- --------------------------------------------------------------------------------------------
- -----------------
FOOD & BEVERAGES (1.5%)
(6)(7) Dr. Pepper Bottling
Holdings, Inc.
Class A (acquired
10/21/88,
cost $40,500) 45,000 1,125,000
(6) Specialty Foods Corp. 22,500 1,125
-----------
GROUP TOTAL 1,126,125
-----------
- --------------------------------------------------------------------------------------------
- -----------------
INDUSTRIAL GOODS & MATERIALS (0.3%)
(6)(7)(8) CIC I Acquisition Corp.
(acquired 10/18/89, cost
$1,076,725) 2,944 200,192
-----------
- --------------------------------------------------------------------------------------------
- -----------------
METALS & MINING (0.0%)
(6) Sheffield Steel Corp. 2,500 5,000
-----------
- --------------------------------------------------------------------------------------------
- -----------------
OILFIELD MACHINERY & EQUIPMENT (0.2%)
Weatherford
International, Inc. 4,738 151,616
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PAPER & FOREST PRODUCTS (0.2%)
(3)(6)(8) Mail-Well, Inc. 10,652 147,796
-----------
- --------------------------------------------------------------------------------------------
- -----------------
RESTAURANTS, HOTELS & GAMING (0.1%)
(6) Elsinore Corp. 6,177 1,930
(6) Isle of Capri Casinos,
Inc. 4,982 49,820
(3)(6) Motels of America, Inc. 250 4,500
-----------
GROUP TOTAL 56,250
-----------
<CAPTION>
Shares/
Units Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
- -----------------
TELECOMMUNICATIONS (1.7%)
(6) Advanced Radio Telecom
Corp. 5,058 $ 63,857
(6) e. spire Communications,
Inc. 14,169 102,723
(6) Globix Corp. 880 41,140
(6) ICG Communications, Inc. 1,155 17,975
(6) Intermedia
Communications, Inc. 3,129 68,056
(6) Loral Space &
Communications Co. 151 2,595
(6) Nextel Communications,
Inc.
Class A 1,180 80,019
(6) Pagemart Nationwide, Inc. 3,500 16,625
(6) Price Communications
Corp. 20,458 512,729
(6) Verio, Inc. 11,266 349,246
-----------
GROUP TOTAL 1,254,965
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL COMMON STOCKS
(Cost $1,875,512) 3,513,146
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PREFERRED STOCKS (3.9%)
- --------------------------------------------------------------------------------------------
- -----------------
AEROSPACE/DEFENSE (0.4%)
(6) GPA Group plc
7% Second Preference
Cum. Conv. 650,000 341,250
-----------
- --------------------------------------------------------------------------------------------
- -----------------
BROADCASTING (1.0%)
(5)(6) Granite Broadcasting
Corp.
12.75%, Cum.
Exchangeable 11 10,670
(6) Source Media, Inc. 4,882 19,528
(5)(6) Spanish Broadcasting
System, Inc.
14.25%, Cum.
Exchangeable 6,591 692,055
-----------
GROUP TOTAL 722,253
-----------
- --------------------------------------------------------------------------------------------
- -----------------
CABLE (0.4%)
Adelphia Communications
Corp.
13% Cum. Exchangeable,
Series B 2,500 278,125
NTL, Inc.
13% Exchangeable,
Series B 1 1,138
-----------
GROUP TOTAL 279,263
-----------
- --------------------------------------------------------------------------------------------
- -----------------
FINANCIAL SERVICES (0.0%)
(8) Westfed Holdings, Inc.
Class A (acquired
9/20/88-6/18/93,
cost $1,203,486) 14,246 14,246
-----------
- --------------------------------------------------------------------------------------------
- -----------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
Shares/
Units Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MISCELLANEOUS (0.0%)
(6) TCR Holdings Corp.
Series B 351 $ 21
Series C (non-voting) 193 11
Series D (non-voting) 509 27
Series E (non-voting) 1,053 66
-----------
GROUP TOTAL 125
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PUBLISHING & INFORMATION SERVICES (0.5%)
Primedia, Inc.
10% Cum. Exchangeable,
Series D 3,500 358,750
-----------
- --------------------------------------------------------------------------------------------
- -----------------
RESTAURANTS, HOTELS & GAMING (0.2%)
AmeriKing, Inc.
13%, Cum. Exchangeable 6,874 151,228
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TELECOMMUNICATIONS (1.4%)
Intermedia
Communications, Inc.
7% Jr. Convertible,
Series E 15,000 277,500
NEXTLINK
Communications, Inc.
14% Cum. Exchangeable 8,463 431,623
Nextel
Communications, Inc.
13% Exchangeable,
Series D 327 353,619
-----------
GROUP TOTAL 1,062,742
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL PREFERRED STOCKS
(Cost $3,678,967) 2,929,857
-----------
- --------------------------------------------------------------------------------------------
- -----------------
RIGHTS (0.1%)
<CAPTION>
- -
- -----------------
<C> <S> <C> <C> <C>
(6)(7) Primestar, Inc.
Share Appreciation Right
expiring 5/10/00 2,383 32,209
(6) Terex Corp.
expiring 5/15/02 2,000 28,000
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL RIGHTS
(Cost $0) 60,209
-----------
- --------------------------------------------------------------------------------------------
- -----------------
WARRANTS (0.4%)
<CAPTION>
- -
- -----------------
<C> <S> <C> <C> <C>
(3)(6) Ampex Corp.
expiring 3/15/03 8,500 5,865
(6) Australis Holdings Pty.
Ltd.
expiring 10/30/01 250 3
(6) Australis Media Ltd.
expiring 5/15/00 225 2
(3)(6) Carrier1 International SA
expiring 2/19/09 300 3,000
(6) Central Bank of Nigeria
expiring 11/15/20 250 0
<CAPTION>
Shares/
Units Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
(6) CHC Helicopter Corp.
expiring 12/15/00 2,000 $ 2,000
(6)(8) CHI Energy, Inc.:
Series B, expiring
11/8/03 3,790 9,100
Series C, expiring
11/8/05 2,459 5,904
(6) Cookies U.S.A., Inc.
expiring 1/15/01 90 0
(6) Crown Packaging Holdings,
Ltd.
expiring 11/1/03 1,000 50
(6) DIVA Systems Corp.
(3) expiring 5/15/06 900 217,800
expiring 3/1/08 2,430 19,440
(3)(6) DTI Holdings, Inc.
expiring 3/1/08 1,500 15
(6) Dairy Mart Convenience
Stores, Inc.
expiring 12/1/01 4,172 1,460
(6)(7) Elsinore Corp.
expiring 12/31/25 5,329 0
(6) Golden Ocean Group, Ltd.
expiring 8/31/01 342 0
(6) Hemmeter Enterprises,
Inc.
expiring 12/15/99 3,000 0
(6) HF Holdings, Inc.
expiring 07/15/02 1,578 15,780
(6) InterAct Systems, Inc.
expiring 8/1/03 400 0
(6) Isle of Capri Casinos,
Inc.
expiring 5/3/01 882 9
(3)(6) Key Energy Services
expiring 1/15/09 250 5,000
(6) McCaw International Ltd.
expiring 4/15/07 750 1,875
(6) Mentus Media Corp.
expiring 2/1/08 1,034 10
(6) Petersburg Long
Distance, Inc.
expiring 6/01/04 560 22,400
(6) Signature Brands Ltd.
expiring 8/15/02 500 0
(6) Source Media, Inc.
expiring 11/1/07 2,235 10,896
(6) Star Choice
Communications, Inc.
expiring 12/5/05 4,632 7,566
(6) Startec Global
Communications
expiring 5/15/08 350 350
(6) USN
Communications, Inc.
expiring 8/15/04 3 0
(6) United International
Holdings
expiring 11/15/99 600 1,800
(6) Waste Systems
International, Inc.
expiring 3/2/04 5,250 7,875
(6) Wright Medical Technology
expiring 6/30/03 206 2
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
Shares/
Units Value
- --------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TOTAL WARRANTS
(Cost $1,073,434) $ 338,202
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL DOMESTIC SECURITIES
(Cost $62,783,889) 57,251,141
-----------
<CAPTION>
Face
Moody's Amount
Ratings (000)
FOREIGN SECURITIES (21.2%)
<C> <S> <C> <C> <C>
- -----------------
CORPORATE OBLIGATIONS (2.4%)
- --------------------------------------------------------------------------------------------
- -----------------
ARGENTINA (0.1%)
(3) CIA Internacional
Telecommunicacoes
Sr. Notes
10.375%, 8/1/04 N/R ARP $ 145 106,938
-----------
- --------------------------------------------------------------------------------------------
- -----------------
BELGIUM (0.3%)
Hermes Europe
Railtel B.V.
Yankee Sr. Notes
10.375%, 1/15/09 B3 USD 250 248,750
-----------
- --------------------------------------------------------------------------------------------
- -----------------
INDONESIA (0.4%)
(1) App Fin II Mauritius
Ltd.
Yankee
12.00% ,12/29/49 Caa USD 270 151,875
Indah Kiat Fin
Mauritius
10.00%, 07/01/07 Caa1 USD 250 135,625
-----------
287,500
-----------
- --------------------------------------------------------------------------------------------
- -----------------
MEXICO (1.0%)
Banco Nacional de
Comercio
7.25%, 02/02/04 Ba2 USD 825 748,687
-----------
- --------------------------------------------------------------------------------------------
- -----------------
NETHERLANDS (0.6%)
(1)(3) CompleTel
Europe N.V. Units
0.00%, 2/15/09 Caa1 USD 250 127,500
(3) United Pan-Europe
Communications NV
Sr. Notes
10.875%, 8/1/09 B2 USD 300 302,250
-----------
429,750
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $1,918,191) 1,821,625
-----------
- --------------------------------------------------------------------------------------------
- -----------------
GOVERNMENT OBLIGATIONS (18.8%)
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
- -----------------
ARGENTINA (4.3%)
Argentina
9.75%, 9/19/27 Ba3 USD $ 460 $ 383,525
(9) Bocon PRO1 Notes
2.857%, 4/1/07 Ba3 USD 912 630,470
Secured Par Bonds,
Series L-GP
5.75%, 3/31/23 Ba3 USD 1,000 640,000
Republic of Argentina:
Series BGL5
11.00%, 10/9/06 Ba3 USD 50 47,750
11.375%, 1/30/17 Ba3 USD 410 386,630
Debentures
6.8125%, 3/31/05 B1 USD 1,307 1,143,319
-----------
GROUP TOTAL 3,231,694
-----------
- --------------------------------------------------------------------------------------------
- -----------------
BRAZIL (5.1%)
Federal Republic of
Brazil:
Series RG
(9) 5.9375%, 4/15/09 B2 USD 330 232,666
Debentures
Series EI-L
Registered
(9) 6.9375%, 4/15/06 B2 USD 162 127,585
Bearer
(9) 6.9375%, 4/15/06 B2 USD 1,596 1,246,875
(9) 10.125%, 5/15/27 B1 USD 635 476,250
Capitialization Bonds
8.00%, 4/15/14 B1 USD 2,122 1,326,339
Discount Bond
6.9225%, 4/15/24 N/R USD 610 382,775
-----------
GROUP TOTAL 3,792,490
-----------
- --------------------------------------------------------------------------------------------
- -----------------
BULGARIA (0.6%)
(9) Republic of Bulgaria:
(1) 2.50%, 7/28/12 B2 USD 390 244,725
(3) Front Loaded Interest
Reduction Bonds,
Series A
6.50%, 7/28/24 B2 USD 330 226,875
-----------
GROUP TOTAL 471,600
-----------
- --------------------------------------------------------------------------------------------
- -----------------
COLOMBIA (0.2%)
Republic of Columbia
Yankee Notes
12.471%, 8/13/05 Baa3 USD 190 175,275
-----------
- --------------------------------------------------------------------------------------------
- -----------------
CROATIA (0.2%)
(9) Republic of Croatia
6.456%, 7/31/10 Baa3 USD 205 160,925
-----------
- --------------------------------------------------------------------------------------------
- -----------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ECUADOR (0.1%)
(9) Government of Ecuador:
Bearer Past Due
Interest (PDI)
6.75%, 02/27/15 B3 USD $ 578 $ 83,769
Registered Past Due
Interest (PDI)
6.75%, 02/27/15 B3 USD 92 13,395
-----------
GROUP TOTAL 97,164
-----------
- --------------------------------------------------------------------------------------------
- -----------------
MEXICO (2.9%)
United Mexican States:
9.75%, 04/06/05 Ba2 USD 275 277,750
10.375%, 2/17/09 N/R USD 550 556,600
11.50%, 5/15/26 Ba2 USD 700 770,875
Secured Par Bonds
Series W-A
6.25%, 12/31/19 Ba2 USD 750 552,187
-----------
GROUP TOTAL 2,157,412
-----------
- --------------------------------------------------------------------------------------------
- -----------------
MOROCCO (0.3%)
Republic of Morocco
5.90625%, 1/1/09 N/R USD 276 233,142
-----------
- --------------------------------------------------------------------------------------------
- -----------------
NIGERIA (0.2%)
(9) Central Bank of Nigeria
6.25%, 11/15/20 N/R USD 250 147,500
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PANAMA (0.2%)
Republic of Panama:
8.875%, 9/30/27 Ba1 USD 190 152,475
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PERU (0.4%)
Republic of Peru:
Front Loaded Interest
Reduction Bonds
Series 20 year
3.75%, 3/7/17 N/R USD 225 121,219
Past Due Interest
(PDI)
Series 20 year
4.00%, 3/7/17 N/R USD 250 154,375
-----------
GROUP TOTAL 275,594
-----------
- --------------------------------------------------------------------------------------------
- -----------------
PHILIPPINES (0.8%)
Republic of the
Philippines
Bonds
9.875%, 1/15/19 Ba1 USD 625 592,969
-----------
- --------------------------------------------------------------------------------------------
- -----------------
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
- ------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
RUSSIA (1.4%)
Government of Russia
9.25%, 11/27/01 B3 USD $ 115 $ 66,700
Russian Federation Reg.
Series
8.75%, 7/24/05 B3 USD 550 226,875
10.00%, 06/26/07 B3 USD 520 218,400
11.00%, 7/24/18 B3 USD 250 105,000
Russian Registered Bonds
12.75%, 6/24/28 B3 USD 400 188,500
(9) Vnesheconombank Bank
6.0625%, 12/15/15 N/R USD 690 74,175
Series 24 year
6.0625%, 12/15/20 N/R USD 1,802 162,180
-----------
GROUP TOTAL 1,041,830
-----------
- --------------------------------------------------------------------------------------------
- -----------------
VENEZUELA (2.1%)
Republic of Venezuela:
(9) Front Loaded Interest
Reduction Bonds, Series
A
6.875%, 3/31/07 B2 USD 381 286,855
(9) Debt Conversion Bonds,
Series DL
6.3125%, 12/18/07 B2 USD 512 391,607
Unsecured Bonds
9.25%, 9/15/27 Ba2 USD 1,370 902,145
-----------
GROUP TOTAL 1,580,607
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL GOVERNMENT OBLIGATIONS
(Cost $14,010,114) 14,110,677
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL FOREIGN SECURITIES
(Cost $15,928,305) 15,932,302
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TIME DEPOSITS (1.5%)
(Cost $1,110,000) 1,110,000
-----------
- --------------------------------------------------------------------------------------------
- -----------------
TOTAL INVESTMENTS (98.8%)
(Cost $79,822,194) 74,293,443
-----------
- --------------------------------------------------------------------------------------------
- -----------------
OTHER ASSETS IN EXCESS OF
LIABILITIES (1.2%)
935,410
-----------
- --------------------------------------------------------------------------------------------
- -----------------
NET ASSETS (100%)
Applicable to 8,454,140 issued and outstanding $.001 par value
shares (authorized 100,000,000 shares) $75,228,853
===========
<CAPTION>
- -
- -----------------
<C> <S> <C> <C> <C>
N/R--Not Rated
ARP--Argentine Peso
</TABLE>
15
<PAGE>
<TABLE>
<C> <S> <C> <C> <C>
(1) Step Bond--Coupon rate is low or zero for an initial period and then increases to a higher
coupon rate thereafter. Maturity date disclosed is the ultimate maturity.
(2) Defaulted Security.
(3) 144A Security. Certain conditions for public sale may exist
(4) Private Placement.
(5) Payment in kind bond. Market value includes accrued interest.
(6) Non-income producing security.
(7) Restricted as to private and public resale. Total cost of restricted securities at
September 30, 1999 aggregated $1,117,352. Total market value of restricted securities
owned at September 30, 1999 was $1,357,401 or 1.8% of Net Assets.
(8) Securities for which market quotations are not readily available are valued at fair value
as determined in good faith by the Board of Directors.
(9) Floating Rate--The interest rate changes on these instruments based upon a designated base
rate. The rates shown are those in effect at September 30, 1999.
</TABLE>
16
<PAGE>
DESCRIPTION OF INVESTLINK-SM-* PROGRAM
- ---------
The InvestLink-SM- Program is sponsored and administered by BankBoston, N.A.,
not by Credit Suisse Asset Management Strategic Global Income Fund, Inc. (the
"Fund"). BankBoston, N.A. will act as program administrator (the "Program
Administrator") of the InvestLink-SM- Program (the "Program"). The purpose of
the Program is to provide interested investors with a simple and convenient way
to invest funds and reinvest dividends in shares of the Fund's common stock
("Shares") at prevailing prices, with reduced brokerage commissions and fees.
An interested investor may join the Program at any time. Purchases of Shares
with funds from a participant's cash payment or automatic account deduction will
begin on the next day on which funds are invested. If a participant selects the
dividend reinvestment option, automatic investment of dividends generally will
begin with the next dividend payable after the Program Administrator receives
his enrollment form. Once in the Program, a person will remain a participant
until he terminates his participation or sells all Shares held in his Program
account, or his account is terminated by the Program Administrator. A
participant may change his investment options at any time by requesting a new
enrollment form and returning it to the Program Administrator.
A participant will be assessed certain charges in connection with his
participation in the Program. First-time investors will be subject to an initial
service charge which will be deducted from their initial cash deposit. All
optional cash deposit investments will be subject to a service charge. Sales
processed through the Program will have a service fee deducted from the net
proceeds, after brokerage commissions. In addition to the transaction charges
outlined above, participants will be assessed per share processing fees (which
include brokerage commissions.) Participants will not be charged any fee for
reinvesting dividends.
The number of Shares to be purchased for a participant depends on the amount
of his dividends, cash payments or bank account or payroll deductions, less
applicable fees and commissions, and the purchase price of the Shares. The
Program Administrator uses dividends and funds of participants to purchase
Shares of the Fund's common stock in the open market. Such purchases will be
made by participating brokers as agent for the participants using normal cash
settlement practices. All Shares purchased through the Program will be allocated
to participants as of the settlement date, which is usually three business days
from the the purchase date. In all cases, transaction processing will occur
within 30 days of the receipt of funds, except where temporary curtailment or
suspension of purchases is necessary to comply with applicable provisions of the
Federal Securities laws or when unusual market conditions make prudent
investment impracticable. In the event the Program Administrator is unable to
purchase Shares within 30 days of the receipt of funds, such funds will be
returned to the participants.
The average price of all Shares purchased by the Program Administrator with
all funds received during the time period from two business days preceding any
investment date up to the second business day preceding the next investment date
shall be the price per share allocable to a participant in connection with the
Shares purchased for his account with his funds or dividends received by the
Program Administrator during such time period. The average price of all Shares
sold by the Program Administrator pursuant to sell orders received during such
time period shall be the price per share allocable to a participant in
connection with the Shares sold for his account pursuant to his sell orders
received by the Program Administrator during such time period.
BankBoston, N.A., as Program Administrator, administers the Program for
participants, keeps records, sends statements of account to participants and
performs other duties relating to the Program. Each participant in the Program
will receive a statement of his account following each purchase of Shares. The
statements will also show the amount of dividends credited to such participant's
account (if applicable), as well as the fees paid by the participant. In
addition, each participant will receive copies of the Fund's annual and
semi-annual reports to shareholders, proxy statements and, if applicable,
dividend income information for tax reporting purposes.
If the Fund is paying dividends on the Shares, a participant will receive
dividends through the Program for all Shares held on the dividend record date on
the basis of full and fractional Shares held in his account, and for all other
Shares of the Fund registered in his name. The Program Administrator will send
checks to the participants for the amounts of their dividends that are not to be
automatically reinvested at no cost to the participants.
Shares of the Fund purchased under the Program will be registered in the
name of the accounts of the respective participants. Unless requested, the Fund
will not issue to participants certificates for Shares of the Fund purchased
under the Program. The Program Administrator will hold the Shares in book-entry
form until a Program participant chooses to withdraw his Shares or terminate his
participation in the Program. The number of Shares purchased for a participant's
account under the Program will be shown on his statement of account. This
feature protects against loss, theft or destruction of stock certificates.
A participant may withdraw all or a portion of the Shares from his Program
account by notifying the Program Administrator. After receipt of a participant's
request, the Program Administrator will issue to such participant certificates
for the whole Shares of the Fund so withdrawn or, if requested by the
participant, sell the Shares for him and send him the proceeds, less applicable
brokerage commissions, fees, and transfer taxes, if any. If a participant
withdraws all full and fractional Shares in his Program account, his
participation in the Program will be terminated by the Program Administrator. In
no case will certificates for fractional Shares be issued. The Program
Administrator will convert any fractional Shares held by a participant at the
time of his withdrawal to cash.
Participation in any rights offering, dividend distribution or stock split
will be based upon both the Shares of the Fund registered in participants' names
and the Shares (including
17
<PAGE>
fractional Shares) credited to participants' Program accounts. Any stock
dividend or Shares resulting from stock splits with respect to Shares of the
Fund, both full and fractional, which participants hold in their Program
accounts and with respect to all Shares registered in their names will be
automatically credited to their accounts.
All Shares of the Fund (including any fractional share) credited to his
account under the Program will be voted as the participant directs. The
participants will be sent the proxy materials for the annual meetings of
shareholders. When a participant returns an executed proxy, all of such Shares
will be voted as indicated. A participant may also elect to vote his Shares in
person at the Shareholders' meeting.
A participant will receive tax information annually for his personal records
and to help him prepare his U.S. federal income tax return. The automatic
reinvestment of dividends does not relieve him of any income tax which may be
payable on dividends. For further information as to tax consequences of
participation in the Program, participants should consult with their own tax
advisors.
The Program Administrator in administering the Program will not be liable
for any act done in good faith or for any good faith omission to act. However,
the Program Administrator will be liable for loss or damage due to error caused
by its negligence, bad faith or willful misconduct. Shares held in custody by
the Program Administrator are not subject to protection under the Securities
Investors Protection Act of 1970.
The participant should recognize that neither the Fund nor the Program
Administrator can provide any assurance of a profit or protection against loss
on any Shares purchased under the Program. A participant's investment in Shares
held in his Program account is no different than his investment in directly held
Shares in this regard. The participant bears the risk of loss and the benefits
of gain from market price changes with respect to all of his Shares. Neither the
Fund nor the Program Administrator can guarantee that Shares purchased under the
Program will, at any particular time, be worth more or less than their purchase
price. Each participant must make an independent investment decision based on
his own judgment and research.
While the Program Administrator hopes to continue the Program indefinitely,
the Program Administrator reserves the right to suspend or terminate the Program
at any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.
Any interested investor may participate in the Program. To participate in
the Program, an investor who is not already a registered owner of the Shares
must make an initial investment of at least $250.00. All other cash payments or
bank account deductions must be at least $100.00, up to a maximum of $100,000.00
annually. An interested investor may join the Program by reading the Program
description, completing and signing the enrollment form and returning it to the
Program Administrator. The enrollment form and information relating to the
Program (including the terms and conditions) may be obtained by calling the
Program Administrator at one of the following telephone numbers: First Time
Investors--(800) 523-8506; Current Shareholders--(800) 730-6001. All
correspondence regarding the Program should be directed to: BankBoston, N.A.,
InvestLink Program, P.O. Box 8040, Boston, MA 02266-8040.
- ------------------------------------------------------
*InvestLink is a service mark of Boston EquiServe Limited Partnership.
18
<PAGE>
4947-AR-99
