<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, VICE
Richard J. Lindquist PRESIDENT AND SECRETARY
PRESIDENT AND CHIEF INVESTMENT Robert M. Rizza
OFFICER VICE PRESIDENT AND TREASURER
John L. Hogan
ASSISTANT TREASURER
</TABLE>
--------------------------------------------------------
INVESTMENT ADVISER
Credit Suisse Asset Management, LLC
153 East 53rd Street
New York, New York 10022
Phone 1-800-293-1232
--------------------------------------------------------
ADMINISTRATOR AND 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
2400 Eleven Penn Center
Philadelphia, Pennsylvania 19103
--------------------------------------------------------
---------------------------------------------------------------------------
Credit Suisse Asset Management
Strategic Global Income Fund, Inc.
---------------------------------------------------------------------------
FIRST QUARTER REPORT
March 31, 2000
<PAGE>
CREDIT SUISSE ASSET MANAGEMENT STRATEGIC GLOBAL INCOME FUND, INC.
FIRST QUARTER REPORT - 3/31/00
----------
Dear Shareholders: April 26, 2000
We are writing to report on the activities of Credit Suisse Asset Management
Strategic Global Income Fund, Inc. ("the Fund") for the quarter ended March 31,
2000 and to discuss our investment strategy.
On March 31, 2000, the Fund's net asset value ("NAV") was $8.26, compared to
an NAV of $8.46 at December 31, 1999. The Fund's total return (based on NAV and
assuming reinvestment of dividends of $0.2825 per share) for the period was
+1.6%.
At March 31, 2000, $58.0 million was invested in high yield debt securities;
$3.4 million in investment-grade debt securities; $24.3 million in
emerging-market debt securities; and the balance of $11.2 million in equity
securities. Of the debt securities, the largest concentration (64.2%) was
invested in B-rated issues.
THE MARKET: UNUSUAL DYNAMICS
Interest in high yield and emerging debt issues was strong at the end of
1999. Y2K worries and related market liquidity concerns had dissipated. In
addition, the economy appeared poised for moderating growth. But sentiment
soured in February and March with two interest rate increases, confusion
surrounding the Treasury's announced buybacks of 30-year bonds, and sharp
ongoing corrections in the valuations of technology-oriented and blue chip
stocks. Anxiety provoked two flights to quality during the period. By the end of
March, high yield bonds had declined 2.6% for the quarter, as measured by the
Salomon Smith Barney High Yield Market Index.
Narrower factors also led to overall losses in the high yield market. Mutual
fund outflows for the quarter exceeded $4.0 billion, prompting the cancellation
of many new issues slated to come to market. Additionally, liquidity
deteriorated as investor tolerance for disappointing news or earnings
announcements declined sharply. Large, liquid high yield issues performed worst,
as they were among the first securities fund managers chose to sell to meet
redemptions.
Emerging debt fared better with a 7.6% advance, as represented by the J.P.
Morgan Emerging Markets Bond Index Plus. This gain reflected a combination of
factors, including a strong--yet very narrow--rally in the securities of the
least-creditworthy nations, higher planned OPEC oil production levels, turbulent
NASDAQ trading, and Moody's upgrade of Mexico's sovereign debt.
PERFORMANCE: SOLID RESULTS IN HIGH YIELD AND EMERGING DEBT
In the first quarter, the Fund's high yield portion did well. This was
primarily because of our continued overweights, compared to the broad high yield
market, in telecommunications and, to a lesser extent, cable/media. Appreciation
in the warrant component of a number of our high yield units (I.E., bonds with
attached warrants) was an important contributor. Our increased holdings in
energy also helped our returns, due to higher oil prices and prospects of
stabilized oil production levels.
Whereas we benefited from high yield positions in two of the only three
industries that had positive results in this bond sector for the quarter
(energy, technology and banking), our overweight in gaming detracted from the
portfolio's performance. Portfolio managers sold this sector's fairly liquid
securities to raise cash for shareholder redemptions.
The emerging markets portion of the portfolio, which comprises roughly
one-quarter of the Fund's total assets, contributed to overall results as well.
In addition to gains from favorable security selection, our preference for
Central and Eastern European markets helped our returns.
OUTLOOK: CAUTION IN NEAR TERM, OPTIMISM FURTHER AHEAD
HIGH YIELD. Going forward, we are cautious. Although high yield bonds
generally weakened in the first quarter, we see more downside risk over the near
term due to further likely interest-rate increases, extended equity market
volatility, and continued outflows from high yield mutual funds. Longer-term,
the fact that the quantity of high yield new issuance has slowed to a trickle
should generally help stabilize lower-quality debt issues.
The overall approach with which we have managed the Fund's high yield
allocation remains intact. We have, however, increased our focus on avoiding
risk by marginally reducing positions in securities with less favorable
prospects. We are maintaining our overweights in telecommunications, cable/media
and gaming, whose positive industry and company fundamentals are unchanged. We
are also selectively adding to positions in energy as well as certain
economically sensitive industries such as paper, whose underlying fundamentals
are beginning to reflect real signs of improvement.
INTERNATIONAL. Our outlook remains cautious, since our analysis indicates
that most emerging debt securities are fully valued. Given the unprecedented
widening in swap and credit spreads, we believe that certain markets are prone
to profit taking. From a macro viewpoint, we also see more downside potential
due to negative prospects for ongoing
2
<PAGE>
interest rate hikes and equity market volatility. Continued outflows from high
yield mutual funds would probably extend to emerging markets, in sympathy.
Over the longer term, however, we believe that emerging markets have a
greater built-in cushion, due to currency realignments in the past few years and
nations' previous fiscal and economic restructuring efforts.
Risk aversion best characterizes our emerging strategy. We are moving away
from Latin America, where securities appear fully valued--particularly in Mexico
and Venezuela. We are maintaining relatively market-neutral weights in Argentina
and Brazil, and underweighting Colombia and Panama. In Asia, we are eliminating
our exposure to the Philippines and moving toward Korean issues, which currently
offer high liquidity and reasonable valuations. We continue to favor Central and
Eastern Europe, which are benefiting from Western Europe's economic resurgence.
One example is Russia, where a new political regime bodes well for stability
amid signs of an improving economic environment.
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) 730-6001.
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 **
* Richard J. Lindquist, who is a Managing Director of Credit Suisse Asset
Management , LLC ("CSAM"), 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, LLC ("CSAM"), joined CSAM in
1972. Mr. Priest is Director and Chairman of other investment companies advised
by CSAM.
3
<PAGE>
CSAM STRATEGIC GLOBAL INCOME FUND
MARCH 31, 2000
TOP TEN HOLDINGS (UNAUDITED)
<TABLE>
<CAPTION>
(as a % of net assets as of 3/31/00)
<C> <S> <C>
-----------------------------------------------------------------------------------
1. Republic of Argentina, Debentures 6.8125%, 3/31/05.......... 2.3%
2. Federal Republic of Brazil, Capitalization Bonds 8.00%,
4/15/14................................................... 1.9%
3. Argentina Bocon PROI Notes 5.82%, 3/31/23................... 1.6%
4. Republic of Korea Unsub. Notes 8.75%, 4/15/03............... 1.4%
5. Federal Republic of Brazil, Bearer 6.9375%, 4/15/06......... 1.2%
6. Dr. Pepper Bottling Holdings, Inc. Class A.................. 1.1%
7. Federal Republic of Brazil, Foreign Government Gtd. 7.00%,
4/15/12................................................... 1.1%
8. Republic of Argentina Secured Par Bonds, Series L-GP 6.00%,
3/31/23................................................... 0.9%
9. Republic of Bulgaria Floating Rate Notes 2.50%, 7/28/12..... 0.9%
10. Vnesheconombank Bank 6.90625%, 12/15/15..................... 0.8%
</TABLE>
CREDIT QUALITY BREAKDOWN (UNAUDITED)
<TABLE>
<CAPTION>
(as a % of total investments as of 3/31/00)
<S> <C>
------------------------------------------------------------------------------
AAA/Aaa..................................................... 1.1%
A/A......................................................... 0.2
BBB/Baa..................................................... 2.2
BB/Ba....................................................... 7.8
B/B......................................................... 57.4
CCC/Caa..................................................... 7.3
N/R......................................................... 13.4
----------------
Subtotal.................................................. 89.4
Equities and Other.......................................... 10.6
----------------
Total..................................................... 100.0%
================
</TABLE>
4
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
---------
MARCH 31, 2000
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
DOMESTIC SECURITIES (70.3%)
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (60.6%)
--------------------------------------------------------------------------------------------
-----------------
AEROSPACE/DEFENSE (0.2%)
Sequa Corp.
Sr. Notes
9.00%, 8/01/09 Ba2 $ 250 $ 231,875
------------
--------------------------------------------------------------------------------------------
-----------------
AUTOMOTIVE (1.2%)
Cambridge Industries, Inc.
Sr. Sub. Notes
10.25%, 7/15/07 B3 250 46,875
Collins & Aikman
Products Corp.
Sr. Sub. Notes
11.50%, 4/15/06 B3 250 238,750
Delco Remy
International, Inc.
Gtd. Sr. Sub. Notes
10.625%, 8/1/06 B2 250 247,500
Hayes Lemmerz
International, Inc.
Series B,
Gtd. Sr. Sub. Notes
8.25%, 12/15/08 B2 250 207,500
Motor Coach Industries
International, Inc.
Gtd.
11.25%, 5/1/09 B2 250 241,875
Oxford Automotive, Inc.
Gtd. Sr. Sub. Notes
10.125%, 6/15/07 Caa1 250 235,313
------------
GROUP TOTAL 1,217,813
------------
--------------------------------------------------------------------------------------------
-----------------
BROADCASTING (5.0%)
AMFM, Inc.
Gtd.
9.00%, 10/1/08 B1 250 250,625
(1) Acme Television LLC/
ACME Financial Corp.
Gtd. Sr. Discount Notes
0.00%, 9/30/04 B3 500 449,375
(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 200 200,000
(1) Sr. Discount Notes
0.00%, 2/1/09 B2 500 440,000
Citadel Broadcasting Co.
Gtd.
9.25%, 11/15/08 B3 250 233,125
EchoStar
Communications Corp.
Gtd. Sr. Discount Notes
9.375%, 2/1/09 B2 250 241,250
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Granite Broadcasting, Inc.
Sr. Sub. Notes
8.875%, 5/15/08 B3 $ 250 $ 215,000
Pegasus Media &
Communications, Inc.
Series B, Notes
12.50%, 7/1/05 B2 250 268,125
Salem Communications
Series B, Gtd.
9.50%, 10/1/07 B3 250 234,375
Sinclair Broadcast
Group, Inc.:
Sr. Sub. Notes
10.00%, 9/30/05 B2 300 289,500
8.75%, 12/15/07 B2 250 217,500
Susquehanna Media Co.
Sr. Sub. Notes
8.50%, 5/15/09 B1 150 142,875
Time Warner
Telecom LLC
Sr. Notes
9.75%, 7/15/08 B2 250 245,000
(1) United International
Holdings, Inc.
Series B,
Sr. Discount Notes
0.00%, 2/15/08 B3 500 337,500
Univision Network
Holding L.P.
Sub. Notes
7.00%, 12/17/02 N/R 573 744,998
Young Broadcasting, Inc.
Series B,
Gtd. Sr. Sub. Notes
8.75%, 6/15/07 B2 450 393,750
------------
GROUP TOTAL 4,913,142
------------
--------------------------------------------------------------------------------------------
-----------------
BUSINESS SERVICES (0.4%)
General Binding Corp.
Gtd. Sr. Sub. Notes
9.375%, 6/1/08 B2 250 120,625
Iron Mountain, Inc.
Sr. Notes
8.75%, 9/30/09 B3 250 221,250
------------
GROUP TOTAL 341,875
------------
--------------------------------------------------------------------------------------------
-----------------
CABLE (6.0%)
Adelphia Communications
Sr. Notes
8.375%, 2/1/08 B1 200 180,500
CSC Holdings, Inc.
Sr. Sub. Debentures
9.875%, 2/15/13 B1 250 253,750
Century Communications
Corp.
Sr. Notes
8.75%, 10/1/07 Ba3 250 227,500
Charter Communications
Holdings:
Sr. Notes
8.625%, 4/1/09 B2 250 220,000
(3) 10.25%, 1/15/10 B2 300 289,500
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
(1) Sr. Discount Notes
0.00%, 4/1/11 B3 $ 300 $ 166,875
Classic Cable, Inc.
Gtd.
Sr. Sub. Notes
9.375%, 8/1/09 B3 250 232,500
Coaxial Communications, Inc.
Gtd. Sr. Notes
10.00%, 8/15/06 B3 250 238,125
Comcast Corp.
Sr. Sub. Notes
9.125%, 10/15/06 B2 250 262,635
(1) Comcast UK Cable
Partners, Ltd.
Yankee Sr. Debentures
0.00%, 11/15/07 B2 500 475,000
(1) DIVA Systems Corp.
Series B,
Sr. Discount Notes
0.00%, 3/1/08 N/R 810 388,800
(1) Diamond Cable
Communications plc
Yankee Discount Notes
0.00%, 12/15/05 Caa1 300 286,500
James Cable Partners L.P.
Series B, Sr. Notes
10.75%, 8/15/04 N/R 250 245,000
Lenfest Communications, Inc.
Sr. Sub. Notes
10.50%, 6/15/06 B2 350 385,000
Mediacom LLC/Capital Corp.
Sr. Notes
7.875%, 2/15/11 B2 250 215,625
NTL Communications Corp.
Series B, Sr. Notes
(1) 0.00%, 10/1/08 B3 250 161,250
NTL, Inc.:
Series B, Sr. Notes
(1) 0.00%, 2/1/06 B3 500 477,500
10.00%, 2/15/07 B3 250 246,875
Northland Cable
Television
Gtd.
10.25%, 11/15/07 B3 250 241,875
Olympus Communications
L.P./ Capital Corp.
Series B, Sr. Notes
10.625%, 11/15/06 B1 250 259,688
Rogers Cablesystems, Ltd.
Yankee Gtd.
10.00%, 12/1/07 Ba3 250 260,625
(1) Telewest Communications plc
Yankee Sr. Sub.
Discount Debentures
0.00%, 10/1/07 B1 250 233,750
------------
GROUP TOTAL 5,948,873
------------
--------------------------------------------------------------------------------------------
-----------------
CHEMICALS (1.4%)
General Chemical
Industrial Products
Sr. Sub. Notes
10.625%, 5/1/09 B3 250 221,875
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
(3) Huntsman, Inc.
Sr. Sub. Notes
9.50%, 7/1/07 B2 $ 250 $ 223,750
Huntsman Polymers Corp.
Sr. Notes
11.75%, 12/1/04 B1 250 259,688
Lyondell Chemical Co.
Series B, Secured Notes
9.875%, 5/1/07 Ba3 250 237,500
NL Industries, Inc.
Sr. Secured Notes
11.75%, 10/15/03 B1 150 154,500
Philipp Brothers
Chemicals, Inc.
Gtd.
9.875%, 6/1/08 B3 150 126,750
Texas Petrochemical Corp.
Series B,
Sr. Sub. Notes
11.125%, 7/1/06 N/R 250 204,375
------------
GROUP TOTAL 1,428,438
------------
--------------------------------------------------------------------------------------------
-----------------
CONSTRUCTION & BUILDING MATERIALS (0.8%)
American Architectural
Products Corp.
Gtd. Sr. Notes
11.75%, 12/01/07 Caa1 250 61,250
Brand Scaffold Services
Sr. Notes
10.25%, 2/15/08 B3 150 132,938
Collins & Aikman
Floor Coverings
Series B,
Sr. Sub. Notes
10.00%, 1/15/07 B3 250 241,250
International Utility
Structures, Inc.
Yankee Sr. Sub. Notes
10.75%, 2/1/08 Caa1 150 128,625
Presley Companies
Sr. Notes
12.50%, 7/1/01 Caa3 250 211,875
------------
GROUP TOTAL 775,938
------------
--------------------------------------------------------------------------------------------
-----------------
CONSUMER PRODUCTS & SERVICES (1.7%)
Coinstar, Inc.
Sr. Discount Notes
13.00%, 10/1/06 Caa1 350 373,625
Drypers Corp.
Series B, Sr. Notes
10.25%, 6/15/07 Caa1 150 118,125
Holmes Products Corp.
Gtd. Sr. Sub. Notes
9.875%, 11/15/07 B3 200 139,500
Jordan Industries, Inc.
Series B, Sr. Notes
10.375%, 8/1/07 B3 225 214,313
(1) Knology Holdings, Inc.
Sr. Discount Notes
0.00%, 10/15/07 N/R 250 160,938
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Playtex Products, Inc.
Series B, Gtd. Sr. Notes
8.875%, 7/15/04 B1 $ 200 $ 194,000
(3) Scotts Co.
Sr. Sub. Notes
8.625%, 1/15/09 B2 250 230,625
United Rentals, Inc.
Sr. Sub. Notes
9.25, 1/15/09 B1 250 220,000
------------
GROUP TOTAL 1,651,126
------------
--------------------------------------------------------------------------------------------
-----------------
ELECTRONICS (1.2%)
(4) Aavid Thermal
Technologies, Inc.
Units
12.75%, 2/1/07 B2 150 147,000
Details, Inc.
Series B, Sr. Sub. Notes
10.00%, 11/15/05 B3 250 233,750
Metromedia Fiber
Network, Inc.
Series B, Sr. Notes
10.00%, 11/15/08 B2 250 238,125
Numatics, Inc.
Series B, Gtd.
9.625%, 4/1/08 B3 200 162,250
Unisys Corp.
Sr. Notes
11.75%, 10/15/04 B1 100 107,750
Viasystems, Inc.
Sr. Sub. Notes
9.75%, 6/1/07 B3 250 208,125
Zilog, Inc.
Series B, Gtd.
Sr. Notes
9.50%, 3/1/05 B2 150 137,250
------------
GROUP TOTAL 1,234,250
------------
--------------------------------------------------------------------------------------------
-----------------
ENERGY (3.4%)
AES Corp.
Sr. Notes
9.50%, 6/1/09 Ba1 250 239,375
Bellwether Exploration Co.
Gtd. Sr. Sub. Notes
10.875%, 4/1/07 B3 250 225,625
(3) CMS Energy/Atlantic Methanol
Secured Notes
10.875%, 12/15/00 B1 250 239,375
Canadian Forest Oil, Ltd.
Sr. Sub. Notes
8.75%, 9/15/07 B2 250 230,000
Cliffs Drilling Co.
Series D, Gtd. Sr. Notes
10.25%, 5/15/03 B1 250 249,375
Continental Resources, Inc.
Gtd. Sr. Notes
10.25%, 8/1/08 B3 150 136,875
Contour Energy Co.
Gtd.
14.00%, 4/15/03 B3 258 250,260
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Energy Corp. of America
Series A, Sr. Sub. Notes
9.50%, 5/15/07 B2 $ 250 $ 175,000
Frontier Oil Corp.:
Series A, Sr. Notes
9.125%, 2/15/06 B2 200 172,500
11.75%, 11/15/09 B2 250 236,250
H.S. Resources, Inc.
Gtd. Sr. Sub. Notes
9.25%, 11/15/06 B2 250 240,000
Key Energy Services
Sr. Sub. Notes
14.00%, 1/15/09 B3 250 273,438
Ocean Energy, Inc.
Series B, Gtd.
8.375%, 7/1/08 Ba3 150 142,500
Parker Drilling Co.
Series D, Gtd.
9.75%, 11/15/06 B1 250 241,250
Southwest Royalties, Inc.
Series B, Gtd. Sr. Notes
10.50%, 10/15/04 B3 250 144,375
Wiser Oil Co.
Gtd. Sr. Sub. Notes
9.50%, 5/15/07 B2 250 200,000
------------
GROUP TOTAL 3,396,198
------------
--------------------------------------------------------------------------------------------
-----------------
ENTERTAINMENT (1.9%)
Ackerley Group, Inc.
Series B, Sr. Sub. Notes
9.00%, 1/15/09 B2 250 231,250
American Skiing Co.
Series B, Sr. Sub. Notes
12.00%, 7/15/06 B3 200 170,000
Bally Total Fitness
Holdings, Corp.
Series D, Sr. Sub. Notes
9.875%, 10/15/07 B3 150 137,250
Booth Creek Ski
Holdings, Inc.
Series B, Sr. Notes
12.50%, 3/15/07 Caa1 250 174,063
Cinemark U.S.A., Inc.,
Series D, Sr. Sub. Notes
9.625%, 8/1/08 B3 200 129,500
PTI Holdings, Inc.
Sub. Notes
7.00%, 12/17/02 N/R 507 658,990
(2)(3) Premier Cruises, Ltd.
Sr. Notes
11.00%, 3/15/08 B3 250 8,438
Premier Parks, Inc.
Sr. Notes
9.75%, 6/15/07 B3 150 139,688
Production Resource
Group, LLC/PRG
Finance Group
Gtd. Sr. Sub. Notes
11.50%, 1/15/08 Caa2 250 99,375
Regal Cinemas, Inc.:
Sr. Sub. Notes
9.50%, 6/1/08 Caa1 50 22,250
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
8.875%, 12/15/10 Caa1 $ 250 $ 91,875
------------
GROUP TOTAL 1,862,679
------------
--------------------------------------------------------------------------------------------
-----------------
FINANCIAL SERVICES (1.0%)
Arcadia Financial Ltd.
Sr. Notes
11.50%, 3/15/07 B3 275 287,719
(3) Madison River
Capital/Finance
Sr Notes
13.25%, 3/10/10 Caa1 250 244,375
Sovereign Bancorp
Sr. Notes
10.50%, 11/15/06 Ba3 250 247,500
(2) Westfed Holdings
Sr. Debentures
15.50%, 9/15/99 N/R 250 42,500
(3)(4) Windsor Woodmont
Black/Hawk
Units
13.00%, 3/15/05 N/R 200 199,500
------------
GROUP TOTAL 1,021,594
------------
--------------------------------------------------------------------------------------------
-----------------
FOOD & BEVERAGES (1.3%)
Archibald Candy Corp.
Gtd. Sr. Secured Notes
10.25%, 7/1/04 B2 250 236,250
Carrols Corp.
Gtd.
9.50%, 12/1/08 B2 150 128,250
Fleming Companies, Inc.
Sr. Sub. Notes
10.50%, 12/1/04 B3 200 184,000
(3) Premier International
Foods plc
Sr. Notes
12.00%, 9/1/09 B3 400 375,000
Stater Brothers Holdings, Inc.
Sr. Notes
10.75%, 8/15/06 B2 250 247,500
Vlasic Foods International,
Inc.
Series B, Sr. Sub. Notes
10.25%, 7/1/09 B2 150 94,125
------------
GROUP TOTAL 1,265,125
------------
--------------------------------------------------------------------------------------------
-----------------
HEALTH CARE (0.6%)
(3) ICN Pharmaceutical
Sr. Notes
8.75%, 11/15/08 Ba3 250 232,500
Insight Health Services Corp.
Gtd. Sr. Sub. Notes
9.625%, 6/15/08 B3 200 177,500
(3)(4) Unilab Finance Corp.
Sr. Sub. Notes
12.75%, 10/1/09 B3 150 148,125
------------
GROUP TOTAL 558,125
------------
--------------------------------------------------------------------------------------------
-----------------
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
INDUSTRIAL GOODS & MATERIALS (1.6%)
AAF-McQuay, Inc.
Sr. Notes
8.875%, 2/15/03 B3 $ 150 $ 127,125
Applied Extrusion
Technologies Corp.
Sr. Notes
11.50%, 4/1/02 B2 250 251,250
Atlantis Group, Inc.
Sr. Notes
11.00%, 2/15/03 B2 250 250,000
(4) Equinix, Inc.
Units
13.00%, 12/1/07 N/R 200 210,000
GSI Group, Inc.
Gtd.
10.25%, 11/01/07 B2 150 104,438
Haynes International, Inc.
Sr. Notes
11.625%, 9/1/04 B3 250 138,125
(3)(4) Holley Performance Products
Sr. Notes
12.25%, 9/15/07 B2 250 244,375
Jackson Products, Inc.
Series B, Gtd.
9.50%, 4/15/05 B3 100 90,750
Park-Ohio Industries, Inc.
Sr. Sub. Notes
9.25%, 12/1/07 B2 200 168,000
------------
GROUP TOTAL 1,584,063
------------
--------------------------------------------------------------------------------------------
-----------------
MEDICAL (0.2%)
Triad Hospitals Holdings
Series B, Gtd.
11.00%, 5/15/09 B3 200 201,000
------------
--------------------------------------------------------------------------------------------
-----------------
METALS & MINING (2.0%)
AK Steel Corp
Sr. Notes
9.125%, 12/15/06 Ba2 250 244,375
Algoma Steel, Inc.
Yankee First
Mortgage Notes
12.375%, 7/15/05 B1 250 243,750
GS Technologies Operating Co.
Sr. Notes
12.00%, 9/1/04 Caa1 150 80,625
(2) Gulf States Steel, Inc.
First Mortgage Notes
13.50%, 4/15/03 B1 250 35,938
Metallurg, Inc.
Series B, Gtd. Sr. Notes
11.00%, 12/1/07 B3 250 204,375
National Steel Corp.
Series D,
First Mortgage Bonds
9.875%, 3/1/09 Ba3 250 244,375
Sheffield Steel Corp.
Series B,
First Mortgage Bonds
11.50%, 12/1/05 Caa2 250 208,125
</TABLE>
8
<PAGE>
<TABLE>
<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 $ 246,250
Weirton Steel Corp.
Sr. Notes
11.375%, 7/1/04 B2 200 204,000
Wheeling-Pittsburg Corp.
Sr. Notes
9.25%, 11/15/07 B2 250 223,750
------------
GROUP TOTAL 1,935,563
------------
--------------------------------------------------------------------------------------------
-----------------
PACKAGING/CONTAINERS (1.9%)
AEP Industries, Inc.
Sr. Sub. Notes
9.875%, 11/15/07 B2 400 319,000
Amtrol, Inc.
Sr. Sub. Notes
10.625%, 12/31/06 B3 200 190,250
BWAY Corp.
Gtd. Sr. Sub. Notes
10.25%, 4/15/07 B2 150 135,375
(3)(4) Berry Plastics Corp.
Sr. Sub. Notes
11.00%, 7/15/07 B3 150 150,000
Container Corp. of America
Gtd. Sr. Notes
9.75%, 4/1/03 B1 250 248,750
(1) Crown Packaging
Enterprises, Ltd.
Yankee Sr. Secured
Discount Notes
0.00%, 8/1/06 Ca1 925 463
Gaylord Container Corp.
Series B, Sr. Notes
9.75%, 6/15/07 B3 250 231,250
Radnor Holdings, Inc.
Series B, Gtd. Sr. Notes
10.00%, 12/1/03 B2 400 340,000
(3) Stone Container
Finance Co.
Yankee Gtd. Sr. Notes
11.50%, 8/15/06 B2 250 264,063
------------
GROUP TOTAL 1,879,151
------------
--------------------------------------------------------------------------------------------
-----------------
PAPER & FOREST PRODUCTS (1.8%)
Ainsworth Lumber Co., Ltd.
Yankee Sr. Secured Notes
12.50%, 7/15/07 B3 250 270,938
Color Spot Nurseries
Sr. Sub. Notes
10.50%, 12/15/07 Caa1 200 145,000
(2) Crown Paper Co.
Sr. Sub. Notes
11.00%, 9/1/05 B3 250 75,000
Doman Industries Ltd.
Yankee Gtd.
12.00%, 7/1/04 B3 150 152,250
Repap New Brunswick, Inc.
Yankee Sr. Notes
10.625%, 4/15/05 Caa1 300 273,000
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Riverwood International Corp.
Gtd. Sr. Notes
10.875%, 4/1/08 Caa1 $ 250 $ 240,000
SD Warren Co.
Debentures
14.00%, 12/15/06 N/R 603 665,818
------------
GROUP TOTAL 1,822,006
------------
--------------------------------------------------------------------------------------------
-----------------
PUBLISHING & INFORMATION SERVICES (2.0%)
American Lawyer Media
Series B, Gtd.
9.75%, 12/15/07 B1 150 140,813
(3)(4) American Media Operation
Sr. Sub. Notes
10.25%, 5/1/09 B2 250 244,375
Ampex Corp.
Series B, Sr. Notes
12.00%, 3/15/03 N/R 250 237,500
(1) Earthwatch, Inc.
Units
0.00%, 7/15/07 N/R 250 171,875
Hollinger International
Publishing
Gtd.
9.25%, 3/15/07 Ba3 150 140,250
(3) InterAct Systems, Inc.
Sr. Discount Notes
14.00%, 8/1/03 N/R 214 72,760
(4) Liberty Group Operating
Gtd.
9.375%, 2/1/08 B3 100 87,875
(1) Liberty Group
Publishing, Inc.
Sr. Discount Debentures
0.00%, 2/1/09 Caa1 300 149,250
Mentus Media Corp.
Units
12.00%, 2/1/03 N/R 438 148,920
TV Guide, Inc.
Sr. Sub. Notes
8.125%, 3/1/09 Ba3 350 346,500
Tri-State Outdoor Media
Group, Inc.
Sr. Notes
11.00%, 5/15/08 N/R 300 287,250
------------
GROUP TOTAL 2,027,368
------------
--------------------------------------------------------------------------------------------
-----------------
REAL ESTATE (0.2%)
Bluegreen Corp.
Series B, Gtd.
Sr. Secured Notes
10.50%, 4/1/08 B3 200 171,250
------------
--------------------------------------------------------------------------------------------
-----------------
RESTAURANTS, HOTELS & GAMING (5.1%)
American Restaurant Group,
Inc.
Series B, Gtd. Sr. Secured
Notes
11.50%, 2/15/03 B3 250 165,000
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Ameristar Casinos, Inc.
Series B, Gtd. Notes
10.50%, 8/1/04 B3 $ 250 $ 246,875
Argosy Gaming Co.
Gtd.
10.75%, 6/1/09 B3 100 101,500
Autotote Corp.
Series B, Gtd.
10.875%, 8/1/04 B2 200 199,250
Aztar Corp.
Sr. Sub. Notes
8.875%, 5/15/07 B1 250 226,250
Boyd Gaming Corp.
Sr. Sub. Notes
9.50%, 7/15/07 B1 250 230,000
Casino Magic of Louisiana
Corp.
Series B, Gtd. First
Mortgage Notes
13.00%, 8/15/03 B3 300 329,250
Coast Hotels &
Casinos, Inc.
Gtd.
9.50%, 4/1/09 B3 150 136,878
(2) Fitzgeralds Gaming Corp.
Series B, Gtd. Sr.
Notes
12.25%, 12/15/04 Caa3 200 109,000
Friendly Ice Cream Corp.
Gtd. Sr. Notes
10.50%, 12/1/07 B1 250 171,250
HMH Properties
Gtd. Sr. Secured Notes
7.875%, 8/1/08 Ba2 250 208,750
Hard Rock Hotel, Inc.
Sr. Sub. Notes
9.25%, 4/1/05 B3 400 336,000
Hollywood Park, Inc.
Sr. Sub. Notes
9.50%, 8/1/07 B2 200 197,250
Horseshoe Gaming
Holdings:
Series B, Sr. Sub. Notes
9.375%, 6/15/07 B2 300 286,500
8.625%, 5/15/09 B2 250 229,375
Isle of Capri Casinos, Inc.
Sr. Sub. Notes
8.75%, 4/15/09 B3 250 218,750
(5) Jazz Casino Co. LLC
Sr. Sub. Notes
5.987%, 11/15/09 N/R 150 63,000
Majestic Star
Casino LLC
Secured Notes
10.875%, 7/1/06 B2 250 247,500
Mandalay Resort Group
Sr. Sub. Notes
9.25%, 12/1/05 Ba2 150 141,375
Mohegan Tribal Gaming
Authority
Series B, Sr. Secured Notes
8.125%, 1/1/06 Ba1 200 189,500
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
(3) Park Place Entertainment
Corp.
Sr. Sub. Notes
7.875%, 12/15/05 Ba2 $ 250 $ 230,000
Prime Hospitality Corp.
Secured First Mortgage
Notes
9.25%, 1/15/06 Ba2 250 241,875
Romacorp, Inc.
Sr. Notes
12.00%, 7/1/06 B3 250 200,625
Sante Fe Hotel, Inc.
First Mortgage Notes
11.00%, 12/15/00 Caa2 150 146,250
Station Casinos, Inc.
Sr. Sub. Notes
9.75%, 4/15/07 B1 215 212,850
------------
GROUP TOTAL 5,064,853
------------
--------------------------------------------------------------------------------------------
-----------------
RETAIL (2.1%)
(1) Advance Holdings Corp.
Sr. Discount Debentures
0.00%, 4/15/09 Caa2 350 164,063
Advance Stores Co., Inc.
Gtd. Sr. Sub. Notes
10.25%, 4/15/08 Caa1 250 199,375
(3) Buhrmann US, Inc.
Sr. Sub. Notes
12.25%, 11/1/09 B2 250 253,750
Dairy Mart Convenience
Stores, Inc.
Sr. Sub. Notes
10.25%, 3/15/04 B3 251 200,800
Flooring America, Inc.
Series B, Gtd.
9.25%, 10/15/07 Caa1 185 177,042
(2) Jitney-Jungle Stores
of America, Inc.
Gtd. Sr. Sub. Notes
10.375%, 9/15/07 B3 250 4,688
K Mart Corp.
Debentures
7.75%, 10/1/12 Ba2 200 189,718
(1) Mrs. Fields Holding Co.
Units
0.00%, 12/1/05 Caa2 500 280,000
Pantry, Inc.
Sr. Sub. Notes
10.25%, 10/15/07 B3 200 178,000
Pathmark Stores, Inc.
Sr. Sub. Notes
9.625%, 5/1/03 Caa1 250 182,500
Simmons Co.
Sr. Sub. Notes
10.25%, 3/15/09 B3 250 218,125
------------
GROUP TOTAL 2,048,061
------------
--------------------------------------------------------------------------------------------
-----------------
TELECOMMUNICATIONS (15.3%)
AMSC Acquisition Co., Inc.
Series B, Gtd. Sr. Notes
12.25%, 4/1/08 N/R 150 118,125
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
(1) Alamosa PCS
Holdings, Inc.
Gtd.
0.00%, 2/15/10 Caa1 $ 200 $ 96,750
(4) Caprock Communications
Sr. Notes
11.50%, 5/1/09 B3 150 144,750
Carrier1 International SA
Sr. Notes
13.25%, 2/15/09 B3 300 307,500
(1) Clearnet Communications, Inc.
Yankee
Sr. Discount Notes
0.00%, 12/15/05 B3 250 249,375
(3) Colo.Com
Units
13.875%, 3/15/10 N/R 200 202,000
Concentric Network Corp.
Sr. Notes
12.75%, 12/15/07 N/R 250 260,625
(1) DTI Holdings, Inc.
Units
0.00%, 3/1/08 N/R 300 139,500
Dobson/Sygnet
Communications, Co.
Sr. Notes
12.25%, 12/15/08 N/R 250 261,875
Dolphin Telecom plc:
(1) Sr. Discount Notes
0.00%, 6/1/08 Caa1 250 110,000
Series B, Yankee
Sr. Discount Notes
14.00%, 5/15/09 Caa1 300 117,000
(1) e. spire Communications, Inc.
Sr. Discount Notes
0.00%, 11/1/05 N/R 750 450,000
(3) Energis, plc
Sr. Unsub. Notes
9.75%, 6/15/09 B1 100 100,750
Exodus Communications, Inc.
Sr. Notes
11.25%, 7/1/08 N/R 50 49,875
(1) Focal Communications Corp.
Sr. Discount Notes
0.00%, 2/15/08 N/R 400 260,000
(1) GST USA, Inc.
Gtd. Sr. Discount Notes
0.00%, 12/15/05 N/R 600 299,250
Global Crossing
Holding, Ltd.
Gtd. Sr. Notes
9.625%, 5/15/08 N/R 250 241,250
Globalstar L.P./Globalstar
Capital Corp.
Sr. Notes
10.75%, 11/1/04 B3 300 104,250
(1) ICG Holdings, Inc.:
Gtd. Sr. Discount Notes
0.00%, 9/15/05 B3 350 327,250
0.00%, 5/1/06 B3 255 207,825
0.00%, 3/15/07 B3 750 532,500
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
(1) ICG Services, Inc.
Gtd. Sr. Discount Notes
0.00%, 5/1/08 N/R $ 250 $ 135,000
(3)(4) Insight Midwest/
Insight Capital
Sr. Notes
9.75%, 10/1/09 B1 250 248,750
Intermedia Communications,
Inc.:
(1) Series B, Sr. Discount Notes
0.00%, 7/15/07 B2 300 228,000
Sr. Notes
8.875%, 11/1/07 B2 150 140,625
Level 3 Communications, Inc.:
Sr. Notes
9.125%, 5/1/08 B3 275 236,500
(1) Sr. Discount Notes
0.00%, 12/1/08 B3 300 169,125
McLeod USA, Inc.:
(1) Sr. Discount Notes
0.00%, 3/1/07 B2 100 78,500
Sr. Notes
9.25%, 7/15/07 B2 200 188,000
Metromedia
International Group, Inc.
Series B,
Sr. Discount Notes
10.50%, 9/30/07 N/R 916 430,698
MetroNet
Communications Corp.:
Sr. Discount Notes
10.75%, 11/1/07 B 350 290,063
(1) 0.00%, 6/15/08 B3 250 197,187
Microcell
Telecommunications, Inc.
Series B,
Yankee Sr. Discount Notes
14.00%, 6/1/06 B3 300 265,500
(1) Millicom International
Cellular
Yankee Sr. Sub.
Discount Notes
0.00%, 6/1/06 Caa1 300 263,250
NEXTLINK
Communications, Inc.:
Sr. Notes
12.50%, 4/15/06 B3 100 103,000
10.75%, 11/15/08 B3 250 240,000
(3)(4) 10.50%, 12/1/09 B2 250 239,375
(1) Nextel Communications, Inc.
Sr. Discount Notes
0.00%, 2/15/08 B2 900 607,500
Orion Network
Systems, Inc.
Gtd. Sr. Notes
11.25%, 1/15/07 B2 250 174,375
Pagemart Nationwide, Inc.
Sr. Discount Notes
12.50%, 2/1/05 B3 750 786,562
PSINet, Inc.
Series B, Sr. Notes,
10.00%, 2/15/05 B3 250 235,625
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
(3) Pegasus Communications Corp.
Sr. Sub. Notes
12.50%, 8/1/07 N/R $ 250 $ 268,125
(1) Qwest Communications
International, Inc.:
Sr. Discount Notes
0.00%, 10/15/07 B2 250 200,937
Series B,
0.00%, 2/1/08 Ba1 250 190,937
(1) RCN Corp.:
Sr. Discount Notes
0.00%, 10/15/07 B3 150 96,188
Series B,
0.00%, 2/15/08 B3 300 176,625
RSL Communications plc
Yankee Gtd. Sr. Notes
9.125%, 3/1/08 B3 250 200,000
Rhythms Netconnections, Inc.
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 450 491,044
Star Choice
Communications, Inc.
Yankee Sr. Notes
13.00%, 12/15/05 N/R 200 203,250
Startec Global
Communications Corp.
Units
12.00%, 5/15/08 N/R 350 293,562
T/SF Communications Corp.
Series B,
Gtd. Sr. Sub. Notes
10.375%, 11/1/07 B3 200 187,500
Teligent, Inc.
Sr. Notes
11.50%, 12/1/07 Caa1 300 270,000
(1) Triton PCS, Inc.
Gtd.
0.00%, 5/1/08 B3 300 204,375
(1)(3) US Unwired, Inc.
Sr. Discount Notes
0.00%, 11/1/09 Caa1 400 214,000
Verio, Inc.
Units
13.50%, 6/15/04 B3 400 430,000
(3) Viatel, Inc.
Sr. Notes
11.50%, 3/15/09 B3 343 314,705
(3)(4) Voicestream Wire Co.
Sr. Notes
10.375%, 11/15/09 B2 100 99,250
WebLink Wireless, Inc.
Sr. Discount Notes
11.25%, 2/1/08 N/R 300 149,625
Western Wireless Corp.
Sr. Sub. Notes
10.50%, 2/1/07 B3 250 261,875
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Williams Communications
Group, Inc.
Sr. Notes
10.875%, 10/1/09 B2 $ 250 $ 246,250
(1) WinStar Communications, Inc.
Sr. Discount Notes
0.00%, 10/15/05 Caa1 400 412,000
(3) Worldwide Fiber, Inc.
Sr. Notes
12.00%, 8/1/09 B3 250 236,250
------------
GROUP TOTAL 15,107,083
------------
--------------------------------------------------------------------------------------------
-----------------
TRANSPORTATION (2.0%)
AirTran Airlines, Inc.
Yankee Sr. Notes
10.50%, 4/15/01 N/R 500 486,250
Allied Holdings
Series B, Gtd.
8.625%, 10/1/07 B1 250 219,375
(2) Canadian Airlines Corp.
Yankee Sr. Notes
12.25%, 8/1/06 Caa2 300 149,250
Cenargo International plc
First Priority Ship
Mortgage Notes
9.75%, 6/15/08 Ba3 100 85,000
First Wave Marine, Inc.
Sr. Notes
11.00%, 2/1/08 B3 100 60,250
(2) Golden Ocean
Group, Ltd.
Gtd. Sr. Notes
10.00%, 8/31/01 B3 263 31,560
Sea Containers Ltd.
Yankee Sr. Notes
10.75%, 10/15/06 Ba3 200 169,500
(1) TFM Sa De CV
0.00%, 6/15/09 N/R 715 521,056
Trans World Airlines, Inc.
Sr. Notes
11.375%, 3/1/06 Caa1 250 86,875
Ultrapetrol (Bahamas) Ltd.
First Mortgage Notes
10.50%, 4/1/08 B1 150 126,937
------------
GROUP TOTAL 1,936,053
------------
--------------------------------------------------------------------------------------------
-----------------
WASTE MANAGEMENT (0.3%)
Safety-Kleen Corp.
Gtd.
9.25%, 5/15/09 B3 100 6,750
Waste Systems International,
Inc.
Sr. Notes
11.50%, 1/15/06 Caa1 350 336,438
------------
GROUP TOTAL 343,188
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $67,789,143) 59,966,690
------------
--------------------------------------------------------------------------------------------
-----------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
GOVERNMENT & AGENCY SECURITIES (1.0%)
--------------------------------------------------------------------------------------------
-----------------
UNITED STATES TREASURY BONDS (0.2%)
8.00%, 11/15/21 Aaa $ 190 $ 231,325
------------
--------------------------------------------------------------------------------------------
-----------------
UNITED STATES TREASURY NOTES (0.8%)
7.25%, 5/15/04 Aaa 760 783,035
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL GOVERNMENT & AGENCY SECURITIES
(Cost $1,014,777) 1,014,360
------------
--------------------------------------------------------------------------------------------
-----------------
ASSET BACKED OBLIGATIONS (0.3%)
--------------------------------------------------------------------------------------------
-----------------
Merrill Lynch Home
Equity Acceptance Trust
Series 1994-A, Class A-2
6.47%, 7/17/22 A3 212 207,121
Nationscredit Grantor
Trust Boat Retail
Installment Sale Contracts
Series 1996-1, Class A
5.85%, 9/15/11 Aaa 76 73,388
--------------------------------------------------------------------------------------------
-----------------
TOTAL ASSET BACKED OBLIGATIONS
(Cost $286,979) 280,509
------------
--------------------------------------------------------------------------------------------
-----------------
Shares/
Units
--------------------------------------------------------------------------------------------
-----------------
COMMON STOCKS (4.6%)
--------------------------------------------------------------------------------------------
-----------------
BROADCASTING (1.2%)
(3)(6) Spanish Broadcasting
System, Inc.
Class B 35,700 789,862
(6) UnitedGlobalCom, Inc.
Class A 5,442 408,490
-----------
GROUP TOTAL 1,198,352
-----------
--------------------------------------------------------------------------------------------
-----------------
CABLE (0.0%)
(6) OpTel, Inc. 500 5
-----------
--------------------------------------------------------------------------------------------
-----------------
CONSUMER PRODUCTS & SERVICES (0.2%)
(6) Coinstar, Inc. 4,196 52,909
(6) Concentric Network Corp. 3,170 174,350
(6) Crown Packaging
Enterprises, Ltd. 100,848 1,008
-----------
GROUP TOTAL 228,267
-----------
--------------------------------------------------------------------------------------------
-----------------
ENERGY (0.0%)
(6) Weatherford International,
Inc. 27 1,591
-----------
--------------------------------------------------------------------------------------------
-----------------
ENTERTAINMENT (0.1%)
Premier Cruises, Ltd. 18,515 48,602
-----------
--------------------------------------------------------------------------------------------
-----------------
Shares/
Units Value
------------------------------------------------------------------------------
------------------------------------------------------------------------------
FINANCIAL SERVICES (0.0%)
(6)(7) Westfed Holdings, Inc.
Class B (acquired
9/20/88,
cost $127) 4,223 $ 0
-----------
--------------------------------------------------------------------------------------------
-----------------
FOOD & BEVERAGES (1.1%)
(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
-----------
--------------------------------------------------------------------------------------------
-----------------
METALS & MINING (0.0%)
(6) Sheffield Steel Corp. 2,500 5,000
-----------
--------------------------------------------------------------------------------------------
-----------------
PAPER & FOREST PRODUCTS (0.1%)
(3)(6) Mail-Well, Inc. 10,652 92,539
-----------
--------------------------------------------------------------------------------------------
-----------------
RESTAURANTS, HOTELS & GAMING (0.1%)
(6) Elsinore Corp. 6,177 10,038
(6) Isle of Capri Casinos,
Inc. 4,982 62,275
(3)(6) Motels of America, Inc. 250 3,750
-----------
GROUP TOTAL 76,063
-----------
--------------------------------------------------------------------------------------------
-----------------
TELECOMMUNICATIONS (1.8%)
(6) Advanced Radio Telecom
Corp. 5,058 167,546
(3)(6) CompleTel Holdings, LLC
Class B Shares 2,500 100,000
(6) e. spire Communications,
Inc. 14,168 99,618
(6) Globix Corp. 3,520 134,200
(6) ICG Communications, Inc. 1,155 41,724
(6) Intermedia Communications,
Inc. 3,635 175,616
(6) Loral Space &
Communications, Co. 151 1,538
(6) Price Communications Corp. 25,821 593,883
(6) Verio, Inc. 11,266 507,674
-----------
GROUP TOTAL 1,821,799
-----------
--------------------------------------------------------------------------------------------
-----------------
TOTAL COMMON STOCKS
(Cost $630,245) 4,598,343
-----------
--------------------------------------------------------------------------------------------
-----------------
PREFERRED STOCKS (2.7%)
--------------------------------------------------------------------------------------------
-----------------
AEROSPACE/DEFENSE (0.3%)
(6) GPA Group plc 7% Second
Preferred
Cum. Conv. 650,000 312,000
-----------
--------------------------------------------------------------------------------------------
-----------------
BROADCASTING (0.0%)
(5)(6) Granite Broadcasting Corp.
12.75% Cum. Exchangeable 11 9,680
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
Shares/
Units Value
------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
------------------------------------------------------------------------------
(6) Source Media, Inc. 5,222 $ 23,499
-----------
GROUP TOTAL 33,179
-----------
--------------------------------------------------------------------------------------------
-----------------
CABLE (0.3%)
Adelphia Communications Corp.
13% Cum. Exchangeable, Series B 2,500 270,000
NTL, Inc.
13% Exchangeable, Series B 1 1,030
-----------
GROUP TOTAL 271,030
-----------
--------------------------------------------------------------------------------------------
-----------------
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
-----------
--------------------------------------------------------------------------------------------
-----------------
PUBLISHING & INFORMATION SERVICES (0.4%)
Interact Electronic
Marketing
14% Conv. Preferred 400 80,000
Primedia, Inc.
10% Cum. Exchangeable,
Series D 3,500 358,750
-----------
GROUP TOTAL 438,750
-----------
--------------------------------------------------------------------------------------------
-----------------
RESTAURANTS, HOTELS & GAMING (0.2%)
AmeriKing, Inc.
13%, Cum. Exchangeable 7,329 146,580
-----------
--------------------------------------------------------------------------------------------
-----------------
TELECOMMUNICATIONS (1.5%)
Intermedia Communications,
Inc.
7% Jr. Convertible,
Series E 15,000 630,000
NEXTLINK Communications,
Inc.
14% Cum. Exchangeable 9,065 471,380
Nextel Communications,
Inc.
13% Exchangeable,
Series D 338 358,280
-----------
GROUP TOTAL 1,459,660
-----------
--------------------------------------------------------------------------------------------
-----------------
TOTAL PREFERRED STOCKS
(Cost $3,442,186) 2,675,445
-----------
--------------------------------------------------------------------------------------------
-----------------
RIGHTS (0.2%)
------------------------------------------------------------------------------
------------------------------------------------------------------------------
(6)(7) Primestar, Inc.
Share Appreciation Right
expiring 5/10/00 2,383 179,264
(6) Terex Corp.
expiring 5/15/02 2,000 28,000
--------------------------------------------------------------------------------------------
-----------------
TOTAL RIGHTS
(Cost $0) 207,264
-----------
------------------------------------------------------------------------------
------------------------------------------------------------------------------
<CAPTION>
Shares/
Units Value
<C> <S> <C> <C> <C>
------------------------------------------------------------------------------
------------------------------------------------------------------------------
WARRANTS (0.9%)
------------------------------------------------------------------------------
------------------------------------------------------------------------------
(3)(6) Ampex Corp.
expiring 3/15/03 8,500 $ 7,480
(6) Australis Holdings Pty.
Ltd.
expiring 10/30/01 250 3
(6) Australis Media Ltd.
expiring 5/15/03 225 2
(3)(6) Carrier1 International SA
expiring 2/19/09 300 222,000
(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) Crown Packaging
Enterprises, Ltd.
expiring 11/1/03 1,000 50
(6) DIVA Systems Corp.:
(3) expiring 5/15/06 900 468,000
expiring 3/1/08 2,430 58,320
(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) Golden Ocean Group, Ltd.
expiring 8/31/01 342 0
(6) HF Holdings, Inc.
expiring 7/15/02 1,578 15,780
(6) InterAct Systems, Inc.
expiring 8/1/03 400 0
(6) Interact Electronic
Marketing
expiring 12/31/09 400 4
(6) Isle of Capri Casinos,
Inc. expiring 5/3/01 882 9
(6) Key Energy Services
expiring 1/15/09 250 22,500
(6) McCaw International Ltd.
expiring 4/15/07 750 1,875
(6) Mentus Media Corp.
expiring 2/1/08 974 10
(6) PLD Telekom, Inc.
expiring 6/1/06 560 19,600
(6) Source Media, Inc.
expiring 11/1/07 2,235 17,321
(6) Star Choice
Communications, Inc.
expiring 12/5/05 4,632 28,267
(6) Startec Global
Communications
expiring 5/15/08 350 630
(6) USN Communications, Inc.
expiring 8/15/04 3,050 0
(6) Waste Systems
International, Inc.
expiring 3/2/04 5,250 2,625
(6) Wright Medical Technology
expiring 6/30/03 206 2
--------------------------------------------------------------------------------------------
-----------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Shares/
Units Value
------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
------------------------------------------------------------------------------
TOTAL WARRANTS
(Cost $1,073,445) $ 882,957
-----------
--------------------------------------------------------------------------------------------
-----------------
TOTAL DOMESTIC SECURITIES
(Cost $74,236,775) 69,625,568
-----------
------------------------------------------------------------------------------
------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000)
<C> <S> <C> <C> <C>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FOREIGN SECURITIES (25.6%)
--------------------------------------------------------------------------------------------
-----------------
CORPORATE OBLIGATIONS (3.6%)
--------------------------------------------------------------------------------------------
-----------------
ARGENTINA (0.7%)
CIA Internacional
Telecommunicacoes
Sr. Notes
10.375%, 8/1/04 N/R ARP $145 130,500
(3)(4) Hidroelectrica
Piedra del Aguila
S.A.:
Collateral Trust
8.25%, 6/30/09 N/R USD 521 326,692
8.00%, 12/31/09 N/R USD 291 200,200
------------
GROUP TOTAL 657,392
------------
--------------------------------------------------------------------------------------------
-----------------
BELGIUM (0.3%)
Hermes Europe
Railtel B.V.
Yankee Sr. Notes
10.375%, 1/15/09 B3 USD 300 269,250
------------
--------------------------------------------------------------------------------------------
-----------------
CANADA (0.1%)
(1) GT Group Telecom
Units
0.00%, 2/1/10 Caa1 USD 100 56,000
------------
--------------------------------------------------------------------------------------------
-----------------
KOREA (0.4%)
(3)(4) Cho Hung Bank
Sub. Notes
11.50%, 4/1/10 B1 USD 385 382,112
------------
--------------------------------------------------------------------------------------------
-----------------
MEXICO (0.7%)
Banco National De
Commercio
7.25%, 2/02/04 Ba2 USD 625 596,875
(3) Nuevo Grupo
Iusacell SA
Sr. Notes
14.25%, 12/1/06 B1 USD 115 124,487
------------
GROUP TOTAL 721,362
------------
--------------------------------------------------------------------------------------------
-----------------
NETHERLANDS (0.6%)
(1) CompleTel Europe N.V.
Yankee Gtd.
0.00%, 2/15/09 Caa1 USD 250 125,000
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(3) KPNQwest N.V.
Sr. Notes
8.125%, 6/1/09 N/R USD $250 $ 239,063
(3) United Pan-Europe
Communications N.V.
Sr. Notes
10.875%, 8/1/09 B2 USD 300 287,250
------------
GROUP TOTAL 651,313
------------
--------------------------------------------------------------------------------------------
-----------------
POLAND (0.3%)
(3) PTC International
Finance II SA
Gtd.
11.25%, 12/1/09 B2 USD 370 376,012
------------
--------------------------------------------------------------------------------------------
-----------------
SLOVAKIA (0.5%)
(3)(4) Slovak Wireless
Finance Co.
Gtd.
11.25%, 3/30/07 B2 USD 515 500,483
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,566,840) 3,613,924
------------
--------------------------------------------------------------------------------------------
-----------------
GOVERNMENT OBLIGATIONS (22.0%)
--------------------------------------------------------------------------------------------
-----------------
ARGENTINA (6.0%)
(9) Argentina
Series L-GL
6.875%, 3/31/23 Ba3 USD 300 254,250
Bocon PRO1 Notes
5.82%, 4/1/07 Ba3 USD 2,225 1,600,614
Republic of
Argentina:
Series BGL5
11.00%, 10/9/06 Ba3 USD 50 49,000
11.375%, 1/30/17 Ba3 USD 410 398,315
Unsubordinated
11.75%, 4/07/09 B1 USD 420 413,700
Debentures
6.188%, 3/31/05 B1 USD 2,415 2,259,045
Foreign Government
Gtd.
6.00%, 3/31/23 B1 USD 1,330 932,663
------------
GROUP TOTAL 5,907,587
------------
--------------------------------------------------------------------------------------------
-----------------
BRAZIL (6.2%)
Federal Republic of
Brazil:
Series RG
(9) 7.00%, 4/15/09 B2 USD 330 279,262
Debentures
Series EI-L
Registered
(9) 6.9375%, 4/15/06 B1 USD 160 145,117
(9) 7.00%, 4/15/12 B1 USD 500 380,000
Bearer
(9) 6.9375%, 4/15/06 B2 USD 1,316 1,196,737
10.125%, 5/15/27 B1 USD 910 738,010
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
--------------------------------------------------------------------------------
Global Bonds
11.625%, 4/15/04 B2 USD $500 $ 509,375
Foreign Government
Gtd.
7.00%, 4/15/12 B2 USD 1,380 1,045,350
Capitalization Bonds
8.00%, 4/15/14 B2 USD 2,499 1,877,533
------------
GROUP TOTAL 6,171,384
------------
--------------------------------------------------------------------------------------------
-----------------
BULGARIA (1.5%)
(9) Republic of Bulgaria:
Floating Rate Notes
2.50%, 7/28/12 B2 USD 1,210 868,175
Front Loaded Interest
Reduction Bonds,
Series A
5.875%, 7/28/24 B2 USD 400 321,750
Debentures
Series PDI,
6.50%, 7/28/11 B2 USD 405 321,469
------------
GROUP TOTAL 1,511,394
------------
--------------------------------------------------------------------------------------------
-----------------
CROATIA (0.8%)
(9) Republic of Croatia
Series B, Bonds
7.0625%, 7/31/06 Baa3 USD 803 765,318
------------
--------------------------------------------------------------------------------------------
-----------------
KOREA (1.4%)
Republic of Korea
Unsub. Notes
8.75%, 4/15/03 Baa2 USD 1,360 1,373,600
------------
--------------------------------------------------------------------------------------------
-----------------
MEXICO (0.5%)
United Mexican States
10.375%, 2/17/09 N/R USD 460 495,650
------------
--------------------------------------------------------------------------------------------
-----------------
MOROCCO (0.2%)
(9) Republic of Morocco
6.8825%, 1/1/09 N/R USD 261 233,758
------------
--------------------------------------------------------------------------------------------
-----------------
PERU (0.6%)
Republic of Peru:
Front Loaded
Interest
Reduction Bonds
Series 20 year
4.00%, 3/7/17 N/R USD 495 304,425
Past Due Interest
(PDI)
Series 20 year
4.00%, 3/7/17 N/R USD 390 260,325
------------
GROUP TOTAL 564,750
------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
RUSSIA (3.8%)
(3)(4) City of St.
Petersburg
Bonds
9.50%, 6/18/02 Caa1 USD $500 $ 403,000
Government of Russia
9.25%, 11/27/01 B3 USD 115 105,944
Russia Federation:
Registered Series
8.75%, 7/24/05 B3 USD 1,045 769,381
10.00%, 06/26/07 B3 USD 400 296,000
11.00%, 7/24/18 B3 USD 570 421,087
Russian Registered
Bonds
12.75%, 6/24/28 B3 USD 520 440,700
(9) Vnesheconombank
Bank
6.90625%, 12/15/15 N/R USD 2,854 831,370
Series 24 year
6.8925%, 12/15/20 N/R USD 1,802 520,418
------------
GROUP TOTAL 3,787,900
------------
--------------------------------------------------------------------------------------------
-----------------
TURKEY (0.1%)
Republic of Turkey
Bonds
11.875%, 11/5/04 B1 USD 80 83,000
------------
--------------------------------------------------------------------------------------------
-----------------
VENEZUELA (0.9%)
Republic of
Venezuela:
(9) Debt Conversion
Bonds,
7.00%, 12/18/07 B2 USD 762 613,331
Series DL
Unsecured Bonds
9.25%, 9/15/27 Ba2 USD 345 226,665
------------
GROUP TOTAL 839,996
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL GOVERNMENT OBLIGATIONS
(Cost $19,307,194) 21,734,337
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL FOREIGN SECURITIES
(Cost $22,874,034) 25,348,261
------------
--------------------------------------------------------------------------------------------
-----------------
TIME DEPOSITS (2.0%)
(Cost $1,943,000) 1,943,000
------------
--------------------------------------------------------------------------------------------
-----------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
--------------------------------------------------------------------------------
TOTAL INVESTMENTS (97.9%)
(Cost $99,053,809) $ 96,916,829
------------
--------------------------------------------------------------------------------------------
-----------------
OTHER ASSETS IN EXCESS OF
LIABILITIES (2.1%)
2,052,110
------------
--------------------------------------------------------------------------------------------
-----------------
NET ASSETS (100%)
Applicable to 11,976,699 issued and outstanding $.001
par value shares (authorized 100,000,000 shares)
$ 98,968,939
============
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
N/R--Not Rated
ARP--Argentine Peso
(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 March 31, 2000 aggregated $40,627. Total market value of
restricted securities owned at March 31, 2000 was $1,304,264 or 1.32% 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 March 31,
2000.
</TABLE>
17
<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 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 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
18
<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 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 judgement 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 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.
19
<PAGE>
4947-QR-00
