<PAGE>
Credit Suisse Asset Management Strategic Global Income Fund, Inc.
466 Lexington Avenue
New York, NY 10017
---------------------------------------------
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 SECRETARY
PRESIDENT AND CHIEF INVESTMENT Maxine C. Evertz
OFFICER ASSISTANT SECRETARY
Robert M. Rizza
VICE PRESIDENT AND TREASURER
John L. Hogan
ASSISTANT TREASURER
</TABLE>
--------------------------------------------------------
INVESTMENT ADVISER
Credit Suisse Asset Management, LLC
466 Lexington Avenue
New York, New York 10017
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.
---------------------------------------------------------------------------
THIRD QUARTER REPORT
September 30, 2000
<PAGE>
CREDIT SUISSE ASSET MANAGEMENT STRATEGIC GLOBAL INCOME FUND, INC.
THIRD QUARTER REPORT - 9/30/00
----------
Dear Shareholders: October 23, 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
September 30, 2000 and to discuss our investment strategy.
On September 30, 2000, the Fund's net asset value ("NAV") was $7.70,
compared to an NAV of $7.92 at June 30, 2000. The Fund's total return (based on
NAV and assuming reinvestment of dividends of $0.145 per share) for the period
was -0.8%. For the first nine months of 2000, the Fund returned 0.5%.
At September 30, 2000, $56.7 million was invested in high yield debt
securities; $22.0 million in emerging-market debt securities; $2.0 million in
investment-grade debt securities; $4.4 million in equity securities; and the
balance of $3.9 million in cash equivalents. Of the debt securities, the largest
concentration (72.0%) was invested in issues rated B through BBB.
THE MARKET: HIGH YIELD UNDERPERFORMS, EMs OUTPERFORM
The third quarter was generally a successful period for fixed income
securities, which benefited from improving perceptions about the U.S. economy
and interest rates. As measured by the 0.8% return generated by the Salomon
Smith Barney High-Yield Market Index, however, high yield underperformed most
other fixed income sectors.
Perhaps the most negative influence on high yield was the stock market,
which endured bouts of heavy selling throughout the quarter. Stocks' weakness
hurt high yield in two ways:
- Much of the decline in share prices resulted from anxiety that slower U.S.
macroeconomic growth would translate into slower growth for corporate
earnings. The latter, in turn, tended to raise concerns about the
creditworthiness of companies that issue high yield debt.
- The booming stock market of recent years--along with steadily declining
interest rates--had allowed companies to use their own shares as a strong
currency with which to attract acquisitions and pay for them. This was
particularly true of the many technology and telecommunications companies
whose debt is rated below investment-grade. Lower share prices, therefore,
meant that these companies could no longer rely on the stock market to
help them grow by funding their aggressive acquisition strategies.
Other elements additionally served to limit high yield's upside. Investors
continued to withdraw assets from high yield mutual funds, for example, as they
have done in nearly every month this year. According to Chase Securities, such
withdrawals totaled around $1.3 billion in the third quarter. An upward spike in
oil prices triggered worries about higher inflation, whose potential impact on
the economy could be unfavorable for many high yield issuers. And better-quality
high yield paper (i.e., issues rated BB) significantly outperformed B-rated
securities, which account for the biggest portion (I.E., roughly 50%) of the
overall high yield market.
Emerging markets, by contrast, rode a wave of favorable political and
macroeconomic developments in key nations like Mexico, Russia and Brazil. The
surge in oil prices, furthermore, was generally favorable for the several
oil-exporting emerging nations that issue debt. As represented by J.P. Morgan's
Emerging Markets Bond Index Plus, aggregate emerging debt markets rose 5.2%.
PERFORMANCE: HURT BY B-RATED AND TELECOM HIGH YIELD ISSUES
We attribute the Fund's poor performance compared to the broad high yield
and emerging debt markets in the quarter primarily to these factors:
- In high yield, better-quality securities fared best, while 64% of the Fund
was invested in B-rated issues. There also was pronounced weakness in the
telecommunications sector, whose sharp sell-off in the equity market
extended into high yield. Telecom has been the Fund's single largest high
yield industry exposure for the last few years. Of the five subcategories
within telecom (nearly all of which fared poorly), we weighted three more
heavily than the market.
To some extent, our above-average weightings in the gaming and energy
sectors, each of which outperformed the high yield market as a whole,
helped to offset results in B-rated and telecom issues.
- The Fund's holdings in emerging markets suffered from unfavorable country
weightings in Nigeria, Ecuador, Bulgaria and Russia, and benefited from
exposure to Brazil and the timing of our decision to maintain cash
reserves at somewhat higher-than-normal levels.
2
<PAGE>
OUTLOOK: CAUTION PREVAILS IN THE NEAR TERM
Looking ahead, our general outlook both for high yield and emerging debt
markets remains cautious in the near term.
HIGH YIELD. Our caution on high yield is based on the mixed nature of the
current environment. On the positive side, valuations have reached levels that
are extraordinarily low for periods--like the present--in which the U.S. economy
is not highly inflationary or mired in recession. This is largely neutralized,
however, by the potentially negative impact of higher energy prices across a
broad range of industries, which could hurt corporate profits and
creditworthiness.
Given our caution, we have raised the Fund's average credit quality a bit by
concentrating new purchases in issues rated B+ or better. We have also
restructured the portfolio somewhat, first by allowing our position in
telecommunications to decline to market-neutral from above-market as a result of
industry consolidation that has taken some securities off the market. In
addition, we have increased energy to above-market from neutral and have raised
exposure to utilities due to their improving outlook and generally high credit
quality. Our other industry preferences remain in cable/media and gaming.
INTERNATIONAL. We are a bit less cautious on the near-term prospects for
emerging debt markets than in the past few months. Activity in September and
October has begun to validate our anticipation that prices would fall because
valuations were too similar to those of high yield securities. We are more
optimistic toward the end of the year, when we expect this pattern to reverse
more fully.
Our perspective remains positive in the longer term, due to more responsible
and transparent government policies and much less risk of indiscriminate and
broad-based market volatility.
In terms of strategy, we have become somewhat more opportunistic in light of
falling valuations and, as a result, have used some accumulated cash to raise
exposure where prices are more reasonably aligned with risk. This notably
includes selected issues of Brazil, the Philippines and Russia. On a regional
level, we continue to overweight Eastern and Central Europe relative to emerging
debt markets as a whole; and are gradually raising both Latin America and Asia
to market-neutral from an underweight stance.
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, requests for the latest financial information 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 Strategic Global Income Fund, Inc.
** William W. Priest, Jr., who is a Managing Director and Chairman-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
SEPTEMBER 30, 2000
TOP TEN HOLDINGS (UNAUDITED)
<TABLE>
<CAPTION>
(as a % of net assets as of 9/30/00)
<C> <S> <C>
-----------------------------------------------------------------------------------
1. Federal Republic of Brazil, Capitalization Bonds 8.00%,
4/15/14................................................... 2.7%
2. Russian Federation, Unsubordinated, 2.25%, 3/31/30.......... 1.8%
3. Argentina Bocon PRO1 Notes 5.82%, 4/1/07.................... 1.7%
4. Republic of Argentina, Debentures 6.188%, 3/31/05........... 1.4%
5. Republic of Argentina, Unsubordinated, 9.75%, 9/19/27....... 1.4%
6. Federal Republic of Brazil, Discount Bonds, Floating Rate,
4/15/24................................................... 1.3%
7. Republic of Bulgaria Floating Rate Notes 3.00%, 7/28/12..... 1.2%
8. Republic of Argentina, Foreign Government Gtd., 6.00%,
3/31/23................................................... 1.2%
9. United States Treasury Notes, 7.25%, 5/15/04................ 0.9%
10. Univision Network Holding L.P. Sub Notes 7.00%, 12/17/02.... 0.8%
</TABLE>
CREDIT QUALITY BREAKDOWN (UNAUDITED)
<TABLE>
<CAPTION>
(as a % of total investments as of 9/30/00)
<S> <C>
------------------------------------------------------------------------------
AAA/Aaa..................................................... 1.1%
A/A......................................................... 0.2
BBB/Baa..................................................... 0.9
BB/Ba....................................................... 6.8
B/B......................................................... 64.3
CCC/Caa..................................................... 5.6
CC/Ca....................................................... 0.2
NR.......................................................... 11.6
----------------
Subtotal.................................................. 90.7
Equities and Other.......................................... 9.3
----------------
Total..................................................... 100.0%
================
</TABLE>
4
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
---------
SEPTEMBER 30, 2000
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
DOMESTIC SECURITIES (67.4%)
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (61.4%)
--------------------------------------------------------------------------------------------
-----------------
AEROSPACE/DEFENSE (0.3%)
Sequa Corp.
Sr. Notes
9.00%, 8/1/09 Ba2 $ 250 $ 246,875
------------
--------------------------------------------------------------------------------------------
-----------------
AUTOMOTIVE (1.2%)
(1) Cambridge Industries, Inc.
Sr. Sub. Notes
10.25%, 7/15/07 B3 250 52,500
Collins & Aikman
Products Corp.
Sr. Sub. Notes
11.50%, 4/15/06 B3 250 241,250
Delco Remy
International, Inc.
Gtd. Sr. Sub. Notes
10.625%, 8/1/06 B2 250 246,250
Hayes Lemmerz
International, Inc.
Series B,
Gtd. Sr. Sub. Notes
8.25%, 12/15/08 B2 250 203,750
Motor Coach Industries
International, Inc.
Gtd.
11.25%, 5/1/09 B2 250 183,750
Oxford Automotive, Inc.
Gtd. Sr. Sub. Notes
10.125%, 6/15/07 Caa1 250 221,250
------------
GROUP TOTAL 1,148,750
------------
--------------------------------------------------------------------------------------------
-----------------
BROADCASTING (5.5%)
AMFM, Inc.
Gtd.
9.00%, 10/1/08 B1 250 275,625
(2) Acme Television LLC/
ACME Financial Corp.
Gtd. Sr. Discount Notes
0.00%, 9/30/04 B3 500 477,500
(1)(2) Australis Holdings Pty. Ltd.
Yankee Sr. Secured
Discount Notes
0.00%, 11/1/02 N/R 650 65
(1) 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 200 215,250
(2) Sr. Discount Notes
0.00%, 2/1/09 B2 500 479,375
Citadel Broadcasting Co.
Gtd.
9.25%, 11/15/08 B3 250 250,000
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
EchoStar DBS Corp.
Sr. Notes
9.375%, 2/1/09 B1 $ 250 $ 246,250
Granite Broadcasting, Inc.
Sr. Sub. Notes
8.875%, 5/15/08 B3 250 176,250
Pegasus Media &
Communications, Inc.
Series B, Notes
12.50%, 7/1/05 B2 250 266,250
Salem Communications
Series B, Gtd.
9.50%, 10/1/07 B3 250 246,250
Sinclair Broadcast
Group, Inc.:
Sr. Sub. Notes
10.00%, 9/30/05 B2 300 298,500
8.75%, 12/15/07 B2 250 233,125
Susquehanna Media Co.
Sr. Sub. Notes
8.50%, 5/15/09 B1 150 147,000
Time Warner
Telecom LLC
Sr. Notes
9.75%, 7/15/08 B2 250 228,750
(2) United International
Holdings, Inc.
Series B,
Sr. Discount Notes
0.00%, 2/15/08 B3 500 345,000
Univision Network
Holding L.P.
Sub. Notes
7.00%, 12/17/02 N/R 573 762,190
Young Broadcasting, Inc.
Series B,
Gtd. Sr. Sub. Notes
8.75%, 6/15/07 B2 450 427,500
------------
GROUP TOTAL 5,078,524
------------
--------------------------------------------------------------------------------------------
-----------------
BUSINESS SERVICES (0.5%)
General Binding Corp.
Gtd. Sr. Sub. Notes
9.375%, 6/1/08 B2 250 196,250
Iron Mountain, Inc.
Sr. Notes
8.75%, 9/30/09 B3 250 240,000
------------
GROUP TOTAL 436,250
------------
--------------------------------------------------------------------------------------------
-----------------
CABLE (6.9%)
Adelphia Communications
Sr. Notes
8.375%, 2/1/08 B1 200 174,000
Alliance Atlantis
Communications Corp.
Yankee Sr. Sub. Notes
13.00%, 12/15/09 B2 500 520,000
CSC Holdings, Inc.
Sr. Sub. Debentures
9.875%, 2/15/13 Ba3 250 256,875
</TABLE>
5
<PAGE>
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Century Communications Corp.
Sr. Notes
8.75%, 10/1/07 Ba3 $ 250 $ 225,000
Charter Communication
Holdings:
Sr. Notes
8.625%, 4/1/09 B2 250 225,625
(3) 10.25%, 1/15/10 B2 300 295,125
(2) Sr. Discount Notes
0.00%, 4/1/11 B3 300 176,250
Classic Cable, Inc.
Gtd.
Sr. Sub. Notes
9.375%, 8/1/09 B3 250 203,750
Coaxial Communications, Inc.
Gtd. Sr. Notes
10.00%, 8/15/06 B3 250 246,250
Comcast Corp.
Sr. Sub. Notes
9.125%, 10/15/06 B2 250 261,458
(2) Comcast UK Cable
Partners, Ltd.
Yankee Sr. Debentures
0.00%, 11/15/07 B2 500 482,500
(2) DIVA Systems Corp.
Series B,
Sr. Discount Notes
0.00%, 3/1/08 N/R 810 368,550
(2) Diamond Cable
Communications plc
Yankee Discount Notes
0.00%, 12/15/05 Caa1 300 283,500
James Cable Partners L.P.
Series B, Sr. Notes
10.75%, 8/15/04 N/R 250 213,750
Lenfest Communications, Inc.
Sr. Sub. Notes
10.50%, 6/15/06 Baa3 350 395,711
Mediacom LLC/Capital Corp.
Sr. Notes
7.875%, 2/15/11 B2 250 221,250
(2) NTL Communications Corp.
Series B, Sr. Notes
0.00%, 10/1/08 B3 250 156,250
NTL, Inc.:
Sr. Notes
11.50%, 2/1/06 B3 500 475,000
Series B, Sr. Notes
10.00%, 2/15/07 B3 250 230,000
Northland Cable Television
Gtd.
10.25%, 11/15/07 B3 250 196,250
Olympus Communications
L.P./ Capital Corp.
Series B, Sr. Notes
10.625%, 11/15/06 B1 250 250,000
Rogers Cablesystems, Ltd.
Yankee Gtd.
10.00%, 12/1/07 Ba3 250 262,500
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
(2) Telewest Communications plc
Yankee Sr. Sub.
Discount Debentures
0.00%, 10/1/07 B1 $ 250 $ 240,625
------------
GROUP TOTAL 6,360,219
------------
--------------------------------------------------------------------------------------------
-----------------
CHEMICALS (1.3%)
(3)(4) Huntsman Corp.
Sr. Sub. Notes
9.50%, 7/1/07 B2 250 201,250
Huntsman Polymers Corp.
Sr. Notes
11.75%, 12/1/04 B1 250 253,750
Lyondell Chemical Co.
Series B, Secured Notes
9.875%, 5/1/07 Ba3 250 244,688
NL Industries, Inc.
Sr. Secured Notes
11.75%, 10/15/03 B1 150 152,250
Philipp Brothers
Chemicals, Inc.
Gtd.
9.875%, 6/1/08 B3 150 111,750
Texas Petrochemical Corp.
Series B,
Sr. Sub. Notes
11.125%, 7/1/06 N/R 250 208,750
------------
GROUP TOTAL 1,172,438
------------
--------------------------------------------------------------------------------------------
-----------------
CONSTRUCTION & BUILDING MATERIALS (0.8%)
(1) American Architectural
Products Corp.
Gtd. Sr. Notes
11.75%, 12/1/07 Caa1 250 53,750
Brand Scaffold Services, Inc.
Sr. Notes
10.25%, 2/15/08 B3 150 135,750
Collins & Aikman
Floor Coverings
Series B,
Sr. Sub. Notes
10.00%, 1/15/07 B3 250 245,000
International Utility
Structures, Inc.
Yankee Sr. Sub. Notes
10.75%, 2/1/08 Caa1 150 108,750
Presley Companies
Sr. Notes
12.50%, 7/1/01 Caa3 250 238,750
------------
GROUP TOTAL 782,000
------------
--------------------------------------------------------------------------------------------
-----------------
CONSUMER PRODUCTS & SERVICES (1.6%)
Coinstar, Inc.
Sr. Discount Notes
13.00%, 10/1/06 N/R 350 360,500
Drypers Corp.
Series B, Sr. Notes
10.25%, 6/15/07 Caa1 150 24,750
</TABLE>
6
<PAGE>
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Holmes Products Corp.
Gtd. Sr. Sub. Notes
9.875%, 11/15/07 B3 $ 200 $ 119,000
Jordan Industries, Inc.
Series B, Sr. Notes
10.375%, 8/1/07 B3 225 212,625
(2) Knology Holdings, Inc.
Sr. Discount Notes
0.00%, 10/15/07 N/R 250 128,750
Playtex Products, Inc.
Series B, Gtd. Sr. Notes
8.875%, 7/15/04 B1 200 200,500
(3) Scotts Co.
Sr. Sub. Notes
8.625%, 1/15/09 B2 250 246,250
United Rentals, Inc.
Sr. Sub. Notes
9.25%, 1/15/09 B1 250 227,500
------------
GROUP TOTAL 1,519,875
------------
--------------------------------------------------------------------------------------------
-----------------
ELECTRONICS (1.3%)
Aavid Thermal
Technologies, Inc.
Gtd.
12.75%, 2/1/07 B2 150 141,750
(3)(4) Condor Systems, Inc.
Gtd.
11.875%, 5/1/09 B3 150 103,500
Details, Inc.
Series B, Sr. Sub. Notes
10.00%, 11/15/05 B3 250 246,250
Metromedia Fiber
Network, Inc.
Series B, Sr. Notes
10.00%, 11/15/08 B2 250 235,000
Numatics, Inc.
Series B, Gtd.
9.625%, 4/1/08 B3 200 159,000
Unisys Corp.
Sr. Notes
11.75%, 10/15/04 B1 100 106,125
Viasystems, Inc.
Sr. Sub. Notes
9.75%, 6/1/07 B3 250 236,875
------------
GROUP TOTAL 1,228,500
------------
--------------------------------------------------------------------------------------------
-----------------
ENERGY (4.4%)
AES Corp.
Sr. Notes
9.50%, 6/1/09 Ba1 250 255,625
Bellwether Exploration Co.
Gtd. Sr. Sub. Notes
10.875%, 4/1/07 B3 250 242,500
(3) CMS Energy/ Atlantic
Methanol
Secured Notes
10.875%, 12/15/00 B1 250 248,750
Canadian Forest Oil, Ltd.
Sr. Sub. Notes
8.75%, 9/15/07 B2 250 243,750
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Cliffs Drilling Co.
Series D, Gtd. Sr. Notes
10.25%, 5/15/03 B1 $ 250 $ 257,813
Continental Resources, Inc.
Gtd. Sr. Notes
10.25%, 8/1/08 B3 150 135,750
Contour Energy Co.
Gtd.
14.00%, 4/15/03 B3 318 332,310
Energy Corp. of America
Series A, Sr. Sub. Notes
9.50%, 5/15/07 B2 250 191,250
Frontier Oil Corp.:
Series A, Sr. Notes
9.125%, 2/15/06 B2 200 181,000
11.75%, 11/15/09 B2 250 255,000
H.S. Resources, Inc.
Gtd. Sr. Sub. Notes
9.25%, 11/15/06 B2 250 251,250
Key Energy Services
Sr. Sub. Notes
14.00%, 1/15/09 B3 250 285,625
Nuevo Energy Co.
Series B, Sr. Sub. Notes
9.50%, 6/1/08 B1 150 150,750
Ocean Energy, Inc.
Series B, Gtd.
8.375%, 7/1/08 Ba3 150 150,750
Parker Drilling Co.
Series D, Gtd.
9.75%, 11/15/06 B1 250 250,625
Southwest Royalties, Inc.
Series B, Gtd. Sr. Notes
10.50%, 10/15/04 B3 250 206,250
(3) (4) Triton Energy, Ltd.
Sr. Notes
8.875%, 10/1/07 Ba3 200 200,000
Wiser Oil Co.
Gtd. Sr. Sub. Notes
9.50%, 5/15/07 B2 250 203,750
------------
GROUP TOTAL 4,042,748
------------
--------------------------------------------------------------------------------------------
-----------------
ENTERTAINMENT (2.2%)
Ackerley Group, Inc.
Series B, Sr. Sub. Notes
9.00%, 1/15/09 B2 250 236,875
American Skiing Co.
Series B, Sr. Sub. Notes
12.00%, 7/15/06 B3 200 165,000
Bally Total Fitness
Holdings, Corp.
Series D, Sr. Sub. Notes
9.875%, 10/15/07 B3 150 143,250
Booth Creek Ski
Holdings, Inc.
Series B, Sr. Notes
12.50%, 3/15/07 Caa1 250 189,375
Cinemark U.S.A., Inc.
Series D, Sr. Sub. Notes
9.625%, 8/1/08 B3 200 95,000
</TABLE>
7
<PAGE>
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
PTI Holdings, Inc.
Sub. Notes
7.00%, 12/17/02 N/R $ 507 $ 674,197
(1) (3) Premier Cruises, Ltd.
Sr. Notes
11.00%, 3/15/08 B3 250 6,875
Premier Parks, Inc.
Sr. Notes
9.75%, 6/15/07 B3 150 141,000
Production Resource
Group, LLC/PRG
Finance Group
Gtd. Sr. Sub. Notes
11.50%, 1/15/08 Caa2 250 76,250
Regal Cinemas, Inc.
Sr. Sub. Notes
9.50%, 6/1/08 Caa1 50 6,250
8.875%, 12/15/10 Caa1 250 31,250
(3) (4) Yanknets LLC/Yanknets CP
Sr. Notes
12.75%, 3/1/07 B1 250 247,500
------------
GROUP TOTAL 2,012,822
------------
--------------------------------------------------------------------------------------------
-----------------
FINANCIAL SERVICES (0.8%)
(3) Madison River Capital/Finance
Sr. Notes
13.25%, 3/1/10 Caa1 250 201,250
Sovereign Bancorp
Sr. Notes
10.50%, 11/15/06 Ba3 250 255,625
(1) Westfed Holdings
Sr. Debentures
15.50%, 9/15/99 N/R 250 80,000
(3) (4) Windsor Woodmont
Black/Hawk
Units
13.00%, 3/15/05 N/R 200 197,000
------------
GROUP TOTAL 733,875
------------
--------------------------------------------------------------------------------------------
-----------------
FOOD & BEVERAGES (1.5%)
Archibald Candy Corp.
Gtd. Sr. Secured Notes
10.25%, 7/1/04 B2 250 140,000
Aurora Foods, Inc.
Series B, Sr. Sub. Notes
9.875%, 2/15/07 Caa1 250 198,750
B & G Foods, Inc.
Gtd.
9.625%, 8/1/07 B3 200 145,000
Carrols Corp.
Gtd.
9.50%, 12/1/08 B2 150 129,750
Fleming Companies, Inc.
Sr. Sub. Notes
10.50%, 12/1/04 B3 200 176,000
(3) Premier International
Foods plc
Sr. Notes
12.00%, 9/1/09 N/R 400 336,000
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Stater Brothers Holdings, Inc.
Sr. Notes
10.75%, 8/15/06 B2 $ 250 $ 212,500
Vlasic Foods
International, Inc.
Series B, Sr. Sub. Notes
10.25%, 7/1/09 B2 150 78,750
------------
GROUP TOTAL 1,416,750
------------
--------------------------------------------------------------------------------------------
-----------------
HEALTH CARE (0.7%)
(3) ICN Pharmaceutical
Sr. Notes
8.75%, 11/15/08 Ba3 250 250,625
Insight Health Services Corp.
Gtd. Sr. Sub. Notes
9.625%, 6/15/08 B3 200 187,000
(3) (4) Unilab Finance Corp.
Sr. Sub. Notes
12.75%, 10/1/09 B3 150 162,750
------------
GROUP TOTAL 600,375
------------
--------------------------------------------------------------------------------------------
-----------------
INDUSTRIAL GOODS & MATERIALS (1.4%)
AAF-McQuay, Inc.
Sr. Notes
8.875%, 2/15/03 B3 150 133,500
Applied Extrusion
Technologies Corp.
Sr. Notes
11.50%, 4/1/02 B2 250 246,875
Atlantis Plastics, Inc.
Sr. Notes
11.00%, 2/15/03 B2 250 199,388
GSI Group, Inc.
Gtd.
10.25%, 11/1/07 B2 150 105,375
Haynes International, Inc.
Sr. Notes
11.625%, 9/1/04 B3 250 198,750
(3) (4) Holley Performance Products
Sr. Notes
12.25%, 9/15/07 B2 250 138,750
Jackson Products, Inc.
Series B, Gtd.
9.50%, 4/15/05 B3 100 93,500
Park-Ohio Industries, Inc.
Sr. Sub. Notes
9.25%, 12/1/07 B2 200 179,000
------------
GROUP TOTAL 1,295,138
------------
--------------------------------------------------------------------------------------------
-----------------
MEDICAL (0.2%)
Triad Hospitals Holdings
Series B, Gtd.
11.00%, 5/15/09 B3 200 206,000
------------
--------------------------------------------------------------------------------------------
-----------------
METALS & MINING (1.6%)
AK Steel Corp.
Sr. Notes
9.125%, 12/15/06 Ba2 250 243,750
</TABLE>
8
<PAGE>
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Algoma Steel, Inc.
Yankee First
Mortgage Notes
12.375%, 7/15/05 B1 $ 250 $ 178,750
GS Technologies Operating Co.
Sr. Notes
12.00%, 9/1/04 Caa1 150 18,750
(1) Gulf States Steel, Inc.
First Mortgage Notes
13.50%, 4/15/03 B1 250 3,750
Metallurg, Inc.
Series B, Gtd. Sr. Notes
11.00%, 12/1/07 B3 250 201,250
National Steel Corp.
Series D,
First Mortgage Bonds
9.875%, 3/1/09 Ba3 250 148,750
Sheffield Steel Corp.
Series B,
First Mortgage Bonds
11.50%, 12/1/05 Caa2 250 148,750
WCI Steel, Inc.
Series B,
Sr. Secured Notes
10.00%, 12/1/04 B2 250 222,500
Weirton Steel Corp.
Sr. Notes
11.375%, 7/1/04 B2 200 167,000
Wheeling-Pittsburg Corp.
Sr. Notes
9.25%, 11/15/07 B2 250 113,750
------------
GROUP TOTAL 1,447,000
------------
--------------------------------------------------------------------------------------------
-----------------
PACKAGING/CONTAINERS (2.3%)
AEP Industries, Inc.
Sr. Sub. Notes
9.875%, 11/15/07 B2 400 342,000
AMTROL, Inc.
Sr. Sub. Notes
10.625%, 12/31/06 B3 200 177,500
BWAY Corp.
Gtd. Sr. Sub. Notes
10.25%, 4/15/07 B2 150 148,875
(3) (4) Berry Plastics Corp.
Sr. Sub. Notes
11.00%, 7/15/07 B3 150 135,750
Container Corp. of America
Gtd. Sr. Notes
9.75%, 4/1/03 B1 250 252,500
(2) Crown Packaging
Enterprises, Ltd.
Yankee Sr. Secured
Discount Notes
0.00%, 8/1/06 Ca1 925 93
Gaylord Container Corp.
Series B, Sr. Notes
9.75%, 6/15/07 B3 250 171,250
(4) Huntsman Packaging Corp.
Units
13.00%, 6/1/10 B3 300 270,000
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Radnor Holdings, Inc.
Series B, Gtd. Sr. Notes
10.00%, 12/1/03 B2 $ 400 $ 356,000
(3) Stone Container Finance Co.
Yankee Gtd. Sr. Notes
11.50%, 8/15/06 B2 250 258,750
------------
GROUP TOTAL 2,112,718
------------
--------------------------------------------------------------------------------------------
-----------------
PAPER & FOREST PRODUCTS (1.7%)
Ainsworth Lumber Co., Ltd.
Yankee
Sr. Secured Notes
12.50%, 7/15/07 B3 250 233,750
Color Spot Nurseries
Sr. Sub. Notes
10.50%, 12/15/07 Caa1 200 71,000
(1) Crown Paper Co.
Sr. Sub. Notes
11.00%, 9/1/05 B3 250 57,500
Doman Industries, Ltd.
Yankee Gtd.
12.00%, 7/1/04 B3 150 149,813
Repap New Brunswick, Inc.
Yankee Sr. Notes
10.625%, 4/15/05 Caa1 200 207,000
Riverwood
International Corp.
Gtd. Sr. Notes
10.875%, 4/1/08 Caa1 250 230,000
SD Warren Co.
Debentures
14.00%, 12/15/06 N/R 603 664,311
------------
GROUP TOTAL 1,613,374
------------
--------------------------------------------------------------------------------------------
-----------------
PUBLISHING & INFORMATION SERVICES (1.7%)
American Lawyer Media
Series B, Gtd.
9.75%, 12/15/07 B1 150 142,500
(3) (4) American Media Operation
Sr. Sub. Notes
10.25%, 5/1/09 B2 250 245,000
Ampex Corp.
Series B, Sr. Notes
12.00%, 3/15/03 N/R 250 187,500
Earthwatch, Inc.
Sr. Discount Notes
13.00%, 7/15/07 N/R 250 151,250
Hollinger
International Publishing
Gtd.
9.25%, 3/15/07 Ba3 150 151,500
(4) Liberty Group Operating
Gtd.
9.375%, 2/1/08 B3 100 81,500
(2) Liberty Group
Publishing, Inc.
Sr. Discount Debentures
0.00%, 2/1/09 Caa1 300 147,000
Mentus Media Corp.
Units
12.00%, 2/1/03 N/R 464 185,712
</TABLE>
9
<PAGE>
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Premier Graphics, Inc.
Gtd.
11.50%, 12/1/05 Caa3 $ 500 $ 12,500
Tri-State Outdoor Media
Group, Inc.
Sr. Notes
11.00%, 5/15/08 N/R 300 261,000
------------
GROUP TOTAL 1,565,462
------------
--------------------------------------------------------------------------------------------
-----------------
REAL ESTATE (0.1%)
Bluegreen Corp.
Series B, Gtd.
Sr. Secured Notes
10.50%, 4/1/08 B3 200 107,000
------------
--------------------------------------------------------------------------------------------
-----------------
RESTAURANTS, HOTELS & GAMING (5.6%)
American Restaurant
Group, Inc.
Series B,
Gtd. Sr. Secured Notes
11.50%, 2/15/03 B3 250 228,750
Ameristar Casinos, Inc.
Series B, Gtd. Notes
10.50%, 8/1/04 B3 250 252,500
Argosy Gaming Co.
Gtd.
10.75%, 6/1/09 B3 100 105,125
(3) (4) Autotote Corp.
Series B, Gtd.
12.50%, 8/15/10 B3 200 204,000
Aztar Corp.
Sr. Sub. Notes
8.875%, 5/15/07 B1 250 243,750
Boyd Gaming Corp.
Sr. Sub. Notes
9.50%, 7/15/07 B1 250 235,000
Coast Hotels & Casinos, Inc.
Gtd.
9.50%, 4/1/09 B3 150 148,875
(1) Fitzgeralds Gaming Corp.
Series B, Gtd. Sr. Notes
12.25%, 12/15/04 Caa3 200 101,000
Friendly Ice Cream Corp.
Gtd. Sr. Notes
10.50%, 12/1/07 B1 250 201,250
HMH Properties
Gtd. Sr. Secured Notes
7.875%, 8/1/08 Ba2 250 231,250
Hard Rock Hotel, Inc.
Sr. Sub. Notes
9.25%, 4/1/05 B3 400 376,000
Hollywood Park, Inc.
Sr. Sub. Notes
9.50%, 8/1/07 B2 200 207,500
Horseshoe Gaming Holdings:
Series B, Sr. Sub. Notes
9.375%, 6/15/07 B2 300 300,750
8.625%, 5/15/09 B2 250 246,250
Isle of Capri Casinos, Inc.
Sr. Sub. Notes
8.75%, 4/15/09 B3 250 233,750
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
(5) Jazz Casino Co. LLC
Sr. Sub. Notes
5.987%, 11/15/09 N/R $ 154 $ 28,581
MGM Mirage, Inc.
Sr. Sub. Notes
9.75%, 6/1/07 Ba2 200 208,000
Majestic Star Casino LLC
Series B, Gtd.
10.875%, 7/1/06 B2 250 221,250
Mandalay Resort Group
Sr. Sub. Notes
9.25%, 12/1/05 Ba2 150 149,250
Mohegan Tribal Gaming
Authority
Series B, Sr. Secured Notes
8.125%, 1/1/06 Ba2 200 196,250
(3) Park Place Entertainment Corp.
Sr. Sub. Notes
7.875%, 12/15/05 Ba2 250 241,563
Prime Hospitality Corp.
Secured First Mortgage
Notes
9.25%, 1/15/06 Ba2 250 251,250
Romacorp, Inc.
Sr. Notes
12.00%, 7/1/06 B3 250 141,250
Sante Fe Hotel, Inc.
First Mortgage Notes
11.00%, 12/15/00 Caa2 150 150,750
Station Casinos, Inc.
Sr. Sub. Notes
9.75%, 4/15/07 B1 215 215,538
------------
GROUP TOTAL 5,119,432
------------
--------------------------------------------------------------------------------------------
-----------------
RETAIL (1.8%)
(2) Advance Holdings Corp.
Sr. Discount Debentures
0.00%, 4/15/09 Caa2 350 136,500
Advance Stores Co., Inc.
Gtd. Sr. Sub. Notes
10.25%, 4/15/08 Caa1 250 196,250
(3) Buhrmann US, Inc.
Sr. Sub. Notes
12.25%, 11/1/09 B2 250 260,000
Dairy Mart Convenience
Stores, Inc.
Sr. Sub. Notes
10.25%, 3/15/04 B3 251 169,426
Flooring America, Inc.
Series B, Gtd.
9.25%, 10/15/07 Caa1 185 28,660
(1) Jitney-Jungle Stores of
America, Inc.
Gtd. Sr. Sub. Notes
10.375%, 9/15/07 C 250 3,125
Kmart Corp.
Debentures
7.75%, 10/1/12 Ba2 200 154,304
(2) Mrs. Fields Holding Co.
Sr. Discount Notes
0.00%, 12/1/05 Caa2 500 225,000
</TABLE>
10
<PAGE>
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Pantry, Inc.
Sr. Sub. Notes
10.25%, 10/15/07 B3 $ 200 $ 194,000
Safelite Glass Corp.
Series B, Sr. Sub. Notes
9.875%, 12/15/06 Ca 500 6,250
Simmons Co.
Sr. Sub. Notes
10.25%, 3/15/09 B3 250 240,000
------------
GROUP TOTAL 1,613,515
------------
--------------------------------------------------------------------------------------------
-----------------
TELECOMMUNICATIONS (14.4%)
AMSC Acquisition Co., Inc.
Series B, Gtd. Sr. Notes
12.25%, 4/1/08 N/R 150 109,125
(2) Alamosa PCS Holdings, Inc.
Gtd.
0.00%, 2/15/10 Caa1 200 109,000
(4) Caprock Communications
Sr. Notes
11.50%, 5/1/09 B3 150 90,750
Carrier1 International SA
Sr. Notes
13.25%, 2/15/09 B3 300 255,000
(2) Clearnet Communications, Inc.
Yankee Sr. Discount Notes
0.00%, 12/15/05 B3 250 263,750
(3) Colo.Com
Units
13.875%, 3/15/10 N/R 200 205,000
Concentric Network Corp.
Sr. Notes
12.75%, 12/15/07 N/R 250 251,250
(2) DTI Holdings, Inc.
Units
0.00%, 3/1/08 N/R 300 132,000
Dobson/Sygnet
Communications Co.
Sr. Notes
12.25%, 12/15/08 N/R 250 250,620
Dolphin Telecom plc:
(2) Sr. Discount Notes
0.00%, 11/1/05 Caa1 250 51,250
Series B, Yankee
Sr. Discount Notes
14.00%, 5/15/09 Caa1 300 61,500
(2) e. spire Communications, Inc.
Sr. Discount Notes
0.00%, 11/1/05 N/R 750 378,750
(3) Energis, plc
Sr. Unsub. Notes
9.75%, 6/15/09 B1 100 99,000
Equinix, Inc.
Sr. Notes
13.00%, 12/1/07 N/R 200 160,750
Exodus Communications, Inc.
Sr. Notes
11.25%, 7/1/08 N/R 50 49,875
(2) Focal Communications Corp.
Sr. Discount Notes
0.00%, 2/15/08 N/R 400 190,000
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
(2) GST USA, Inc.
Gtd. Sr. Discount Notes
0.00%, 12/15/05 N/R $ 600 $ 249,000
Global Crossing Holdings, Ltd.
Gtd. Sr. Notes
9.625%, 5/15/08 N/R 250 251,250
Globalstar L.P./Globalstar
Capital Corp.
Sr. Notes
10.75%, 11/1/04 B3 300 85,500
(2) ICG Holdings, Inc.:
Sr. Discount Notes
0.00%, 9/15/05 Caa1 350 78,750
0.00%, 5/1/06 B3 255 52,275
Gtd.
0.00%, 3/15/07 Caa1 750 138,750
(2) ICG Services, Inc.
Gtd. Sr. Discount Notes
0.00%, 5/1/08 N/R 250 35,000
Innova S. de R.L.
Yankee Sr. Notes
12.875%, 4/1/07 B3 385 365,747
(3)(4) Insight Midwest/Insight
Capital
Sr. Notes
9.75%, 10/1/09 B1 250 253,125
(5) Interact Operating Co.
Notes
14.00%, 8/1/03 N/R 229 45,796
Intermedia Communications,
Inc.:
(2) Series B, Sr. Discount Notes
0.00%, 7/15/07 B2 300 250,500
Sr. Notes
8.875%, 11/1/07 B2 150 144,000
Level 3 Communications, Inc.:
Sr. Notes
9.125%, 5/1/08 B3 275 239,250
(2) Discount Notes
0.00%, 12/1/08 B3 300 178,500
McLeod USA, Inc.:
(2) Discount Notes
0.00%, 3/1/07 B2 100 82,500
Sr. Notes
9.25%, 7/15/07 B2 200 187,500
Metromedia International
Group, Inc.
Series B, Sr. Discount Notes
10.50%, 9/30/07 N/R 916 430,696
MetroNet Communications Corp.:
Sr. Discount Notes
10.75%, 11/1/07 B 350 306,804
(2) 0.00%, 6/15/08 B3 250 204,252
Microcell Telecommunications,
Inc.
Series B,
Yankee Sr. Discount Notes
14.00%, 6/1/06 B3 300 289,500
(2) Millicom International
Cellular
Yankee Sr. Sub.
Discount Notes
0.00%, 6/1/06 Caa1 300 259,500
</TABLE>
11
<PAGE>
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
NEXTLINK Communications, Inc.:
Series A, Sr. Notes
12.50%, 4/15/06 B3 $ 100 $ 98,250
10.75%, 11/15/08 B3 250 232,500
(3)(4) 10.50%, 12/1/09 B2 250 230,000
(2) Nextel Communications, Inc.
Sr. Discount Notes
0.00%, 2/15/08 B2 900 690,750
Orion Network Systems, Inc.
Gtd. Sr. Notes
11.25%, 1/15/07 B2 250 131,250
Pagemart Nationwide, Inc.
Sr. Discount Notes
12.50%, 2/1/05 B3 750 693,750
Partner Communications Co.,
Ltd.
Yankee Sr. Sub. Notes
13.00%, 8/15/10 B3 310 306,125
(3) Pegasus Communications Corp.
Series B, Sr. Notes
12.50%, 8/1/07 B3 250 263,750
PSINet, Inc.
Series B, Sr. Notes
10.00%, 2/15/05 B3 250 163,750
(2) Qwest Communications
International, Inc.:
Sr. Discount Notes
0.00%, 10/15/07 B2 250 219,014
Series B,
0.00%, 2/1/08 Ba1 250 205,892
(2) RCN Corp.:
Sr. Discount Notes
0.00%, 10/15/07 B3 150 80,250
Series B,
0.00%, 2/15/08 B3 300 145,500
RSL Communications plc
Yankee Gtd. Sr. Notes
9.125%, 3/1/08 B3 250 51,250
Rhythms Netconnections, Inc.
Units
13.50%, 5/15/08 N/R 250 96,250
Sprint Spectrum L.P./Sprint
Spectrum Finance Corp.
Sr. Notes
11.00%, 8/15/06 B2 450 483,639
Star Choice Communications,
Inc.
Yankee Sr. Notes
13.00%, 12/15/05 N/R 200 217,000
Startec Global
Communications Corp.
Units
12.00%, 5/15/08 N/R 350 278,250
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 300 136,500
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
(2) Triton PCS, Inc.
Gtd.
0.00%, 5/1/08 B3 $ 300 $ 226,500
(2)(3) US Unwired, Inc.
Sr. Discount Notes
0.00%, 11/1/09 Caa1 400 216,000
(3) Viatel, Inc.
Sr. Notes
11.50%, 3/15/09 B3 343 159,496
(3) Voicestream Wireless
Sr. Notes
10.375%, 11/15/09 B2 100 108,500
WebLink Wireless, Inc.
Sr. Discount Notes
11.25%, 2/1/08 N/R 300 115,500
Western Wireless Corp.
Sr. Sub. Notes
10.50%, 2/1/07 B3 250 258,750
Williams Communications
Group, Inc.
Sr. Notes
10.875%, 10/1/09 B2 250 230,000
(3)(4) WinStar Communications, Inc.
Sr. Notes
12.75%, 4/15/10 B3 250 182,500
(3) Worldwide Fiber, Inc.
Sr. Notes
12.00%, 8/1/09 B3 150 134,250
------------
GROUP TOTAL 13,328,481
------------
--------------------------------------------------------------------------------------------
-----------------
TEXTILES/APPAREL (0.2%)
Galey & Lord, Inc.
Gtd.
9.125%, 3/1/08 Ca 250 160,000
------------
--------------------------------------------------------------------------------------------
-----------------
TRANSPORTATION (1.4%)
AirTran Airlines, Inc.
Yankee Sr. Notes
10.50%, 4/15/01 N/R 500 490,000
Allied Holdings
Series B, Gtd.
8.625%, 10/1/07 B1 250 213,750
Cenargo International plc
First Priority Ship
Mortgage Notes
9.75%, 6/15/08 Ba3 100 80,250
First Wave Marine, Inc.
Sr. Notes
11.00%, 2/1/08 B3 100 27,500
(1) Golden Ocean Group, Ltd.
Gtd. Sr. Notes
10.00%, 8/31/01 B3 263 43,066
Sea Containers Ltd.
Yankee Sr. Notes
10.75%, 10/15/06 Ba3 200 161,000
Trans World Airlines, Inc.
Sr. Notes
11.375%, 3/1/06 Caa1 250 101,563
</TABLE>
12
<PAGE>
<TABLE>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Ultrapetrol (Bahamas) Ltd.
First Mortgage Notes
10.50%, 4/1/08 B1 $ 150 $ 128,250
------------
GROUP TOTAL 1,245,379
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $68,062,086) 56,593,500
------------
--------------------------------------------------------------------------------------------
-----------------
GOVERNMENT & AGENCY SECURITIES (1.1%)
--------------------------------------------------------------------------------------------
-----------------
UNITED STATES TREASURY BONDS (0.2%)
8.00%, 11/15/21 Aaa 85 103,859
5.25%, 11/15/28 Aaa 115 103,033
------------
GROUP TOTAL 206,892
------------
--------------------------------------------------------------------------------------------
-----------------
UNITED STATES TREASURY NOTES (0.9%)
7.25%, 5/15/04 Aaa 760 792,538
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL GOVERNMENT & AGENCY SECURITIES
(Cost $985,737) 999,430
------------
--------------------------------------------------------------------------------------------
-----------------
ASSET BACKED OBLIGATIONS (0.2%)
--------------------------------------------------------------------------------------------
-----------------
Merrill Lynch Home Equity
Acceptance Trust
Series 1994-A, Class A-2
6.47%, 7/17/22 A3 212 212,722
--------------------------------------------------------------------------------------------
-----------------
TOTAL ASSET BACKED OBLIGATIONS
(Cost $212,432) 212,722
------------
--------------------------------------------------------------------------------------------
----------------- Shares/
Units
--------------------------------------------------------------------------------------------
-----------------
COMMON STOCKS (1.4%)
--------------------------------------------------------------------------------------------
-----------------
BROADCASTING (0.6%)
(3)(6) Spanish Broadcasting
Systems, Inc.
Class B 35,700 423,938
(6) UnitedGlobalCom, Inc. Class A 5,442 163,260
------------
GROUP TOTAL 587,198
------------
--------------------------------------------------------------------------------------------
-----------------
CABLE (0.0%)
(6) OpTel, Inc. 500 5
------------
--------------------------------------------------------------------------------------------
-----------------
CONSUMER PRODUCTS & SERVICES (0.0%)
(6) Crown Packaging Enterprises,
Ltd. 100,848 1,008
------------
--------------------------------------------------------------------------------------------
-----------------
ENTERTAINMENT (0.1%)
(6) Premier Cruises, Ltd. 18,515 48,602
------------
--------------------------------------------------------------------------------------------
-----------------
Shares/
Units Value
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
FINANCIAL SERVICES (0.0%)
(6)(7) Westfed Holdings, Inc.
Class B (acquired 9/20/88,
cost $127) 4,223 $ 0
------------
--------------------------------------------------------------------------------------------
-----------------
FOOD & BEVERAGES (0.0%)
(6) Specialty Foods Corp. 22,500 225
------------
--------------------------------------------------------------------------------------------
-----------------
METALS & MINING (0.0%)
(6) Sheffield Steel Corp. 2,500 25
------------
--------------------------------------------------------------------------------------------
-----------------
PAPER & FOREST PRODUCTS (0.1%)
(3)(6) Mail-Well, Inc. 10,652 53,481
------------
--------------------------------------------------------------------------------------------
-----------------
RESTAURANTS, HOTELS & GAMING (0.0%)
(3)(6) Motels of America, Inc. 250 4,000
------------
--------------------------------------------------------------------------------------------
-----------------
RETAIL (0.2%)
(6) Pathmark Stores, Inc. 13,337 165,045
------------
--------------------------------------------------------------------------------------------
-----------------
TELECOMMUNICATIONS (0.4%)
(6) CompleTel Europe N.V. 12,500 89,063
(6) e. spire Communications, Inc. 14,168 41,619
(6) ICG Communications, Inc. 1,155 505
(6) Intermedia Communications,
Inc. 3,944 116,348
(6) Loral Space & Communications
Co. 151 925
(6) Price Communications Corp. 7,346 143,706
------------
GROUP TOTAL 392,166
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL COMMON STOCKS
(Cost $512,270) 1,251,755
------------
--------------------------------------------------------------------------------------------
-----------------
PREFERRED STOCKS (2.4%)
--------------------------------------------------------------------------------------------
-----------------
AEROSPACE/DEFENSE (0.4%)
(6) GPA Group plc
7% Second Preferred
Cum. Conv. 650 364,000
------------
--------------------------------------------------------------------------------------------
-----------------
BROADCASTING (0.0%)
(5)(6) Granite Broadcasting Corp.
12.75% Exchangeable 11 7,040
(6) Source Media, Inc. 5,581 30,696
------------
GROUP TOTAL 37,736
------------
--------------------------------------------------------------------------------------------
-----------------
CABLE (0.3%)
Adelphia Communications Corp.
13% Cum. Exchangeable, Series B 2,500 248,125
NTL, Inc.
13% Exchangeable, Series B 1 880
------------
GROUP TOTAL 249,005
------------
--------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
<TABLE>
Shares/
Units Value
---------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
---------------------------------------------------------------------------------------
-----------------
FINANCIAL SERVICES (0.0%)
(6)(7)(8) Westfed Holdings, Inc. Class A
(aquired 9/20/88-6/18/93,
cost $1,203,480) 14,246 $ 14,246
------------
--------------------------------------------------------------------------------------------
-----------------
PUBLISHING & INFORMATION SERVICES (0.4%)
(4)(5) Earthwatch, Inc. Convertible
Preferred 12,274 3,069
(6) Interact Electronic Marketing
14% Conv. Preferred 400 56,000
Primedia, Inc.
10% Cum. Exchangeable,
Series D 3,500 329,875
------------
GROUP TOTAL 388,944
------------
--------------------------------------------------------------------------------------------
-----------------
RESTAURANTS, HOTELS & GAMING (0.0%)
AmeriKing, Inc.
13% Cum. Exchangeable 7,812 33,201
------------
--------------------------------------------------------------------------------------------
-----------------
TELECOMMUNICATIONS (1.3%)
Intermedia Communications,
Inc.
7% Jr. Convertible,
Series E 15,000 393,750
NEXTLINK
Communications, Inc.
14% Cum. Exchangeable 9,710 429,668
Nextel Communications, Inc.
13% Exchangeable,
Series D 360 382,500
------------
GROUP TOTAL 1,205,918
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL PREFERRED STOCKS
(Cost $3,524,426) 2,293,050
------------
--------------------------------------------------------------------------------------------
-----------------
RIGHTS (0.0%)
--------------------------------------------------------------------------------------------
-----------------
(6) Terex Corp.
expiring 5/15/02 2,000 28,000
--------------------------------------------------------------------------------------------
-----------------
TOTAL RIGHTS
(Cost $0) 28,000
------------
WARRANTS (0.9%)
--------------------------------------------------------------------------------------------
-----------------
(6) Aavid Thermal Technologies,
Inc.
expiring 2/1/07 150 1,500
(3)(6) Ampex Corp.
expiring 3/15/03 8,500 85
(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 90,000
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) Crown Packaging Holdings, Ltd.
expiring 11/1/03 1,000 10
(6) DIVA Systems Corp.:
(3) expiring 5/15/06 900 495,000
expiring 3/1/08 2,430 34,020
(3)(6) DTI Holdings, Inc.
expiring 3/1/08 1,500 180
(6) Dairy Mart Convenience Stores,
Inc.
expiring 12/1/01 4,172 1,460
(6) Equinix, Inc.
expiring 12/1/07 200 30,000
(3)(6) GT Group Telecom, Inc.
expiring 2/21/10 100 6,500
(6) Golden Ocean Group, Ltd.
expiring 8/31/01 342 0
(6) HF Holdings, Inc.
expiring 9/27/09 1,578 15,780
(3)(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 5/3/01 882 119
(6) Key Energy Services
expiring 1/15/09 250 15,000
(6) McCaw International Ltd.
expiring 4/15/07 750 15,000
(6) Mentus Media Corp.
expiring 2/1/08 974 10
(6) Mrs. Fields Holding, Co.
expiring 12/1/05 500 5,000
(6) PLD Telekom, Inc.
expiring 6/1/06 560 5,600
(6) Source Media, Inc.
expiring 11/1/07 2,235 6,482
(6) Star Choice
Communications, Inc.
expiring 12/5/05 4,632 38,408
(6) Startec Global Communications
expiring 5/15/08 350 123
(6) USN Communications, Inc.
expiring 8/15/04 3,050 0
(6) Waste Systems International,
Inc.
expiring 3/2/04 5,250 1,995
(6) Wright Medical Technology
expiring 6/30/03 206 0
--------------------------------------------------------------------------------------------
-----------------
TOTAL WARRANTS
(Cost $1,089,417) 779,285
------------
--------------------------------------------------------------------------------------------
-----------------
TOTAL DOMESTIC SECURITIES
(Cost $74,386,368) 62,157,742
------------
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
<C> <S> <C> <C> <C>
----------------------------------------------------------------------------
----------------------------------------------------------------------------
FOREIGN SECURITIES (24.9%)
--------------------------------------------------------------------------------------------
-----------------
CORPORATE OBLIGATIONS (4.4%)
--------------------------------------------------------------------------------------------
-----------------
ARGENTINA (1.3%)
(3)(4) CIA Internacional
Telecommunicacoes
Sr. Notes
10.375%, 8/1/04 N/R ARP 595 $ 495,338
(3)(4) Hidroelectrica
Piedra del Aguila
S.A.:
Collateral Trust
8.25%, 6/30/09 N/R USD $890 536,387
8.00%, 12/31/09 N/R USD 277 179,121
-----------
GROUP TOTAL 1,210,846
-----------
--------------------------------------------------------------------------------------------
-----------------
BELGIUM (0.2%)
Hermes Europe
Railtel B.V.
Yankee Sr. Notes
10.375%, 1/15/09 B3 USD 300 151,500
-----------
--------------------------------------------------------------------------------------------
-----------------
CANADA (0.0%)
(3)(4) GT Group
Telecom, Inc.
Sr. Discount Notes
13.25%, 2/1/10 N/R USD 100 43,500
-----------
--------------------------------------------------------------------------------------------
-----------------
MEXICO (1.3%)
Banco National De
Commercio
7.25%, 2/2/04 Ba2 USD 575 559,188
Grupo Minero Mexico
SA
Series B
9.25%, 4/1/28 Ba1 USD 290 232,000
United Mexican States
Global Bonds
10.375%, 2/17/09 Baa3 USD 335 365,234
-----------
GROUP TOTAL 1,156,422
-----------
--------------------------------------------------------------------------------------------
-----------------
NETHERLANDS (0.8%)
CompleTel Europe N.V.
Yankee Gtd.
14.00%, 2/15/09 Caa1 USD 250 125,000
(3) KPN Qwest N.V.
Sr. Notes
8.125%, 6/1/09 N/R USD 150 138,750
Netia Holdings B.V.
Gtd.
13.75%, 6/15/10 B2 EUR 265 198,547
(3) United Pan-Europe
Communications N.V.
Sr. Notes
10.875%, 8/1/09 B2 USD 300 256,500
-----------
GROUP TOTAL 718,797
-----------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
----------------------------------------------------------------------------
<C> <S> <C> <C> <C>
----------------------------------------------------------------------------
POLAND (0.3%)
(3) PTC International
Finance II SA
Yankee Gtd.
11.25%, 12/1/09 B2 USD $250 $ 247,500
-----------
--------------------------------------------------------------------------------------------
-----------------
SOUTH KOREA (0.5%)
(3)(4) Cho Hung Bank
Sub. Notes
11.50%, 4/1/10 B1 USD 505 502,475
-----------
--------------------------------------------------------------------------------------------
-----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $4,272,626) 4,031,040
-----------
--------------------------------------------------------------------------------------------
-----------------
GOVERNMENT OBLIGATIONS (20.5%)
--------------------------------------------------------------------------------------------
-----------------
ARGENTINA (7.8%)
(9) Bocon PRO1 Notes
2.7348%, 4/1/07 B1 USD 2,365 1,546,814
Republic of
Argentina:
Notes
11.00%, 12/4/05 B1 USD 750 729,375
Series BGL5
11.375%, 1/30/17 Ba3 USD 560 503,580
Unsubordinated
11.75%, 4/7/09 B1 USD 790 745,563
9.75%, 9/19/27 B1 USD 1,580 1,256,890
Debentures
6.188%, 3/31/05 B1 USD 1,440 1,318,950
Foreign Government
Gtd.
6.00%, 3/31/23 B1 USD 1,600 1,087,000
-----------
GROUP TOTAL 7,188,172
-----------
--------------------------------------------------------------------------------------------
-----------------
BRAZIL (5.8%)
Federal Republic of
Brazil:
Series RG
(9) 7.4375%, 4/15/09 B2 USD 570 496,969
Global Bonds
11.625%, 4/15/04 B2 USD 100 103,550
10.125%, 5/15/27 B2 USD 910 709,800
Unsubordinated
11.00%, 8/17/40 B2 USD 290 231,058
Capitalization Bonds
8.00%, 4/15/14 B2 USD 3,288 2,521,381
(9) Foreign Government
Gtd.
7.375%, 4/15/24 B2 USD 1,550 1,232,250
-----------
GROUP TOTAL 5,295,008
-----------
--------------------------------------------------------------------------------------------
-----------------
BULGARIA (1.9%)
(9) Republic of Bulgaria:
Floating Rate Notes
2.50%, 7/28/12 B2 USD 1,510 1,104,188
Front Loaded
Interest
Reduction Bonds,
Series A
5.875%, 7/28/24 B2 USD 475 365,750
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
Face
Moody's Amount
Ratings (000) Value
----------------------------------------------------------------------------
<C> <S> <C> <C> <C>
----------------------------------------------------------------------------
Debentures
Series PDI,
6.50%, 7/28/11 B2 USD $405 $ 309,825
-----------
GROUP TOTAL 1,779,763
-----------
--------------------------------------------------------------------------------------------
-----------------
MOROCCO (0.2%)
(9) Republic of Morocco
7.75%, 1/1/09 N/R USD 247 223,083
-----------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
PERU (0.3%)
Republic of Peru
Collateralized
7.625%, 3/8/27 B1 USD 410 307,500
-----------
--------------------------------------------------------------------------------------------
-----------------
RUSSIA (4.5%)
(3)(4) City of St.
Petersburg Bonds
9.50%, 6/18/02 Caa1 USD 410 378,225
Russia Federation:
Registered Series
8.75%, 7/24/05 B3 USD 300 238,500
10.00%, 6/26/07 B3 USD 420 323,400
11.00%, 7/24/18 B3 USD 570 417,525
(3)(4) Unsubordinated
8.25%, 3/31/10 B3 USD 1,047 693,434
11.00%, 7/24/18 B3 USD 30 21,975
12.75%, 6/24/28 B3 USD 50 43,625
2.25%, 3/31/30 B3 USD 4,389 1,695,155
Russian Registered
Bonds
12.75%, 6/24/28 B3 USD 375 327,188
-----------
GROUP TOTAL 4,139,027
-----------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
<CAPTION>
Value
--------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
-----------------
TOTAL GOVERNMENT OBLIGATIONS
(Cost $17,990,039) $18,932,553
--------------------------------------------------------------------------------------------
-----------------
TOTAL FOREIGN SECURITIES
(Cost $22,262,665) 22,963,593
-----------
--------------------------------------------------------------------------------------------
-----------------
TIME DEPOSITS (4.2%)
(Cost $3,904,000) 3,904,000
-----------
--------------------------------------------------------------------------------------------
-----------------
TOTAL INVESTMENTS (96.5%)
(Cost $100,553,033) 89,025,335
-----------
--------------------------------------------------------------------------------------------
-----------------
OTHER ASSETS IN EXCESS OF
LIABILITIES (3.5%)
3,171,240
-----------
--------------------------------------------------------------------------------------------
-----------------
NET ASSETS (100%)
Applicable to 11,976,699 issued and outstanding $.001 par value
shares (authorized 100,000,000 shares)
$92,196,575
===========
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
N/R--Not Rated
ARP--Argentine Peso
EUR--Euro
(1) Defaulted Security.
(2) 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.
(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, 2000 aggregated $1,203,607. Total market value of restricted securities owned
at September 30, 2000 was $14,246 or 0.02% 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, 2000.
</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 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
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 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
18
<PAGE>
4947-QR-00
