[GRAPHICS OMITTED]
CREDIT SUISSE ASSET MANAGEMENT
ANNUAL
REPORT
OCTOBER 31, 2000
CREDIT SUISSE INSTITUTIONAL FUND, INC.
(BULLET) JAPAN GROWTH PORTFOLIO
More complete information about the Fund and the Portfolio, including charges
and expenses, is provided in the PROSPECTUS, which must precede or accompany
this document and which should be read carefully before investing. You may
obtain additional copies by calling 800-222-8977 or by writing to Warburg Pincus
Funds, P.O. Box 9030, Boston, MA 02205-9030.
Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466
Lexington Ave., New York, NY 10017-3147. Credit Suisse Institutional Funds are
advised by Credit Suisse Asset Management, LLC.
<PAGE>
FROM TIME TO TIME, THE PORTFOLIO'S INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY
WAIVE SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD
BE LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS ARE HISTORICAL AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS.
RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS
THAN ORIGINAL COST.
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS.
THE VIEWS OF THE PORTFOLIO'S MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF OCTOBER 31, 2000; THESE VIEWS AND
HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING IN THIS DOCUMENT IS
A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC.-- JAPAN GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT-- OCTOBER 31, 2000
--------------------------------------------------------------------------------
December 6, 2000
Dear Shareholder:
For the 12 months ended October 31, 2000, Credit Suisse Institutional
Fund--Japan Growth Portfolio (the "Portfolio") had a loss of 39.83%, vs. a loss
of 15.14% for the U.S.-dollar-denominated Tokyo Stock Exchange Index. In light
of the current state of the Japanese market, the Portfolio's performance may be
further adversely affected for periods after October 31, 2000.
The period was a negative one for Japanese stocks. The market initially
rallied, capping a very positive 1999, with technology and Internet-related
names accounting for the bulk of the gains. However, as 2000 progressed, the
market turned down and the previously favored high-tech names fell stunningly
out of favor. Investors, already skeptical about Japan's economic recovery, were
quick to take profits on any negative news, for example, revenue shortfalls that
were announced by leading Japanese Internet companies. The situation worsened
over the March-through-May span amid a global selloff in technology and
telecommunications stocks. This "Nasdaq contagion" lowered investors' tolerance
for risk in general while hampering a dominant market sector in Japan. Over the
latter part of the period, Japan's market had occasional rallies that proved to
be false starts.
It was obviously a very disappointing year for the Portfolio and its
shareholders. The downturn in the technology stocks that we continued to focus
on weighed heavily on the Portfolio's return, and resulted in the Portfolio
surrendering a large part of the gain it generated in 1999. Certain
Internet-related holdings proved to be particular liabilities for the 12 months.
The Portfolio's poor performance for the period notwithstanding, we remain
committed to investing in companies that we believe represent the best of a "new
Japanese economy." We define these as companies well-positioned to benefit from
the spread of a Western management philosophy in Japan combined with rising
levels of information-technology commitments.
In terms of sector focus, we continued to emphasize the software,
communications and electronic-component areas. We believe these companies have
good long-term prospects, driven by such trends as increased computer demand
within Japan and the accelerating usage of Internet and wireless communications
globally.
We also maintained a large position in the financial-services sector, where a
number of companies stand to gain from Japan's expanding equity culture. Such a
culture is becoming a top priority due to extensive underfunded pension
liabilities. Over time, and with an eye on retirement, more and more Japanese
investors are likely to shift from safe, but low-yielding bonds in
1
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
favor of equities, a lucrative area for asset-management companies. In addition,
Japan continues to see an acceleration of merger and acquisition activity and
the growth of venture financing, two developments driving demand for
financial-services companies here.
Going forward, we believe that certain positive catalysts can help Japan's
market to right itself. Japan's economic recovery, in our view, remains on track
and has good potential to deliver better-than-expected news in the long-term.
Recent encouraging data include an upturn in Gross Domestic Product ("GDP"),
good industrial production growth and the ongoing creation of new jobs. And
recent TANKAN surveys (conducted by the Bank of Japan) indicate that Japanese
manufacturers have become more optimistic.
Another encouraging development is the above-noted growth of
information-technology ("IT") expenditures in Japan. We believe this will be the
true engine pulling the economy forward, as opposed to government spending
programs, which can aid consumption but have little overall long-term positive
impact. Based on our extensive contact with Japanese managements, we believe the
commitment to IT capital will remain substantial, helping to boost productivity
and profits as it has in the U.S.
Of course, certain factors could continue to restrain Japan's equity market,
at least over the near term. Many investors, in particular foreign (i.e.,
non-Japanese) investors, could remain concerned that Japan's economic rebound
will prove temporary. Some of this concern is understandable, especially in the
wake of the Bank of Japan's surprise interest-rate hike in August. News of
bankruptcies--including the collapse of a major Japanese retailer this
summer--has no doubt contributed to the skepticism.
But all told, we believe that investor attention to Japan could well increase
heading into next year, especially given the compelling valuations stocks here
currently offer. Most Japanese equities were well below their historic highs
even at the end of last year's strong rally. Now, many are trading at very
compelling prices, especially as measured by price-to-book values. We believe
that this could draw renewed investor interest in Japan, provided that the
overall mix of economic and profit news remains encouraging.
Exactly how much good news is required to rekindle interest in Japan as an
asset class is uncertain. Foreign investors--the source of selling pressure in
Japan this year--may remain on the sidelines until Japan logs two or three more
quarters of GDP growth, for example, or until sentiment improves in the
technology sector. In any event, when foreign investors do return to Japan, the
impact could be substantial. Japan remains the world's second-largest economy,
and stands to account for a much larger, proportionate
2
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
share of global portfolios once investors become more confident in the market.
As ever, we will continue to focus on those companies we believe have the
brightest long-term prospects.
P. Nicholas Edwards Todd Jacobson
Co-Portfolio Manager Co-Portfolio Manager
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING
CURRENCY FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND
DIFFERENCES IN ACCOUNTING METHODS. THERE ARE ALSO RISKS ASSOCIATED WITH
INVESTING IN JAPAN, INCLUDING THE RISK OF INVESTING IN A SINGLE-COUNTRY FUND.
THESE ARE DETAILED IN THE PROSPECTUS, WHICH SHOULD BE READ CAREFULLY BEFORE
INVESTING.
3
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN WARBURG PINCUS
INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
SINCE INCEPTION AS OF OCTOBER 31, 2000
The graph below illustrates a hypothetical investment of $10,000 in Credit
Suisse Institutional Fund, Inc. -- Japan Growth Portfolio (the "Portfolio") from
October 31, 1997 (inception) to October 31, 2000, compared to the
U.S.-dollar-denominated Tokyo Stock Exchange Index ("Topix")1 for the same time
period. Past performance does not predict future results.
[GRAPHICS OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Average Total Returns for periods ended 10/31/00
Since Inception
1 year 3 year (10/31/97)
-39.83% 19.35% 19.31%
Portfolio Topix
10/31/97 $10,000.00 $10,000.00
11/1/97 9,850.00 9,247.00
12/1/97 9,488.51 8,523.88
1/1/98 10,457.30 9,435.77
2/1/98 10,427.00 9,514.28
3/1/98 10,346.70 8,873.20
4/1/98 10,599.10 8,756.52
5/1/98 10,356.40 8,345.84
6/1/98 10,154.50 8,399.84
7/1/98 10,982.00 8,288.79
8/1/98 10,114.50 7,436.70
9/1/98 9,569.29 7,281.28
10/31/98 9,216.19 8,448.47
11/1/98 10,498.20 8,850.61
12/1/98 10,318.70 9,176.32
1/1/99 11,337.40 9,222.20
2/1/99 11,907.90 9,002.71
3/1/99 13,965.60 10,212.70
4/1/99 15,493.60 10,698.80
5/1/99 14,882.30 10,219.50
6/1/99 19,181.00 11,233.30
7/1/99 21,361.80 12,379.10
8/1/99 24,062.00 12,772.70
9/1/99 26,874.80 13,610.60
10/31/99 28,261.60 14,419.10
11/1/99 33,741.50 15,464.40
12/1/99 39,200.90 16,205.20
1/1/00 35,359.20 15,373.90
2/1/00 38,771.30 15,083.30
3/1/00 32,343.00 16,041.10
4/1/00 29,034.40 14,720.90
5/1/00 23,590.40 13,652.20
6/1/00 24,522.20 14,528.60
7/1/00 20,292.20 12,814.30
8/1/00 23,191.90 13,707.40
9/1/00 20,302.20 13,170.10
10/31/00 17,003.10 12,236.30
Portfolio
---------
1 Year Total Return (9/30/99 to 9/30/00) ....................... -24.46%
Average Annual Total Return Since Inception
(10/31/97 to 9/30/00) .......................................... 27.43%
----------
1 The Topix is an unmanaged capitalization-weighted index (with no defined
investment objective) designed to reflect the general movement of the Japanese
stock market. The index consists of all shares listed on the First Section of
the Tokyo Stock Exchange, which is generally reserved for Japan's larger
companies.
4
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS--OCTOBER 31, 2000
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ ----------
COMMON STOCKS (98.8%)
COMMERCIAL SERVICES & SUPPLIES (1.3%)
Trans Cosmos, Inc. 350 $ 25,292
----------
COMMUNICATIONS EQUIPMENT (7.6%)
Yozan, Inc.1 3 142,875
----------
COMPUTERS AND PERIPHERALS (4.7%)
Itochu Techno-Science Corp. 200 47,515
Fujitsu, Ltd. 2,350 41,840
----------
89,355
----------
DIVERSIFIED FINANCIALS (15.0%)
Daiwa Securities Group, Inc. 7,830 86,700
Nomura Securities Co., Ltd. 4,700 99,651
Orix Corp. 820 85,991
Shohkoh Fund & Co., Ltd. 120 9,847
----------
282,189
----------
DIVERSIFIED TELECOMMUNICATION SERVICES (8.6%)
Japan Telecom Co., Ltd. 8 161,192
----------
ELECTRICAL EQUIPMENT (13.0%)
Furukawa Electric Co., Ltd. 3,910 102,776
Megachips Corp. 1,170 45,970
Kyocera Corp. 740 96,239
----------
244,985
----------
HEALTH CARE EQUIPMENT & SUPPLIES (3.4%)
Hoya Corp. 780 64,437
----------
HOUSEHOLD DURABLES (6.5%)
Sony Corp. 1,530 122,191
----------
INTERNET SOFTWARE AND SERVICES (6.0%)
Internet Intitiative Japan, Inc. ADR1 860 21,500
Softbank Corp. 1,530 91,783
----------
113,283
----------
IT CONSULTING AND SERVICES (4.8%)
Fujitsu Support & Service, Inc. 740 89,868
----------
LEISURE EQUIPMENT AND PRODUCTS (3.1%)
Nintendo Co., Ltd. 350 57,860
----------
MEDIA (1.2%)
Kadokawa Shoten Publishing Co., Ltd. 200 6,558
Kadokawa Shoten Publishing Co., Ltd. New1 500 16,486
----------
23,044
----------
See Accompanying Notes to Financial Statements.
5
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
SCHEDULE OF INVESTMENTS (CONT'D)--OCTOBER 31, 2000
--------------------------------------------------------------------------------
NUMBER
OF
SHARES VALUE
------ ----------
COMMON STOCKS (CONT'D)
SEMICONDUCTOR EQUIPMENT AND PRODUCTS (17.1%)
Disco Corp. 860 $ 81,049
Rohm Co., Ltd. 310 78,106
Murata Manufacturing Co., Ltd. 500 59,806
Tokyo Electronics, Ltd. 780 61,008
Tokyo Seimitsu Co., Ltd. 630 44,429
----------
324,398
----------
SOFTWARE (4.4%)
Konami Co., Ltd. 980 82,574
----------
SPECIALITY RETAIL (0.8%)
JAC Co., Ltd. 740 14,300
----------
WIRELESS TELECOMMUNICATION SERVICES (1.3%)
NTT DoCoMo, Inc. 1 24,637
----------
TOTAL COMMON STOCKS (Cost $1,418,144) 1,862,480
RBB Money Market Portfolio (Cost $6,627) 6,627 6,627
----------
TOTAL INVESTMENTS AT VALUE (99.2%) (Cost $1,424,771 2) 1,869,107
OTHER ASSETS IN EXCESS OF LIABILITIES (0.8%) 14,979
----------
NET ASSETS (100.0%) $1,884,086
==========
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
--------------------------------------------------------------------------------
1 Non-income producing security.
2 Cost for federal income tax purposes is $1,429,661.
See Accompanying Notes to Financial Statements.
6
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 2000
--------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $1,424,771) $1,869,107
Dividends and interest receivable 4,641
Receivable from investment adviser 2,205
Prepaid expenses and other assets 16,517
----------
Total Assets 1,892,470
----------
LIABILITIES
Administrative services fee payable 3,110
Directors fee payable 377
Accrued expenses payable 4,897
----------
Total Liabilities 8,384
----------
NET ASSETS
Capital Stock, $0.001 par value $ 116
Paid in capital (936,807)
Accumulated net realized gain from investments 2,376,250
Net unrealized appreciation/depreciation from
investments and foreign currency related items 444,527
----------
Net Assets $1,884,086
==========
Shares outstanding
116,000
----------
NET ASSET VALUE, offering price and redemption price
per share $ 16.24
==========
See Accompanying Notes to Financial Statements.
7
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
STATEMENT OF OPERATIONS
For the Year Ended October 31, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 39,422
Interest 2,888
Foreign Taxes Withheld (5,913)
-----------
Total investment income 36,397
-----------
EXPENSES:
Investment Advisory Fees 145,276
Administrative Services Fees 32,300
Registration Fees 18,888
Printing Fees 14,129
Audit Fees 12,900
Interest Expense 1,830
Insurance Expense 1,624
Directors Fees 1,588
Legal Fees 1,230
Transfer Agent Fees (4,129)
Miscellaneous Expense 1,311
-----------
226,947
Less: fees waived, expenses reimbursed and
transfer agent offsets (61,860)
-----------
Total expenses 165,087
-----------
Net investment loss (128,690)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized and unrealized gain (loss)
from investments and foreign
currency related items:
Net realized gain from investments 3,986,742 1
Net realized loss from foreign
currency related transactions (14,379)
Net realized forward foreign currency
loss (448,596)
Net change in unrealized depreciation from
investments (6,869,483)
Net change in unrealized appreciation from foreign
currency translations 42,441
-----------
Net realized and unrealized loss from
investments and foreign currency related items (3,303,275)
-----------
Net decrease in net assets resulting from
operations $(3,431,965)
-----------
1 On October 13, 2000, the portfolio had a redemption in-kind with total
proceeds in the amount of $2,945,341. The net realized gain on transaction of
$1,061,422 will not be realized for tax purposes.
See Accompanying Notes to Financial Statements.
8
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
---------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (128,690) $ (60,880)
Net realized gain from investments 3,986,742 1,015,178
Net realized gain (loss) from foreign
currency transactions (14,379) 47,514
Net realized foreign forward currency loss (448,596) (474,212)
Net change in unrealized appreciation (depreciation)
from investments and foreign currency translations (6,827,042) 7,495,443
------------ ------------
Net increase (decrease) in net assets
resulting from operations (3,431,965) 8,023,043
------------ ------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (14,982) (14,953)
Distributions from net realized gains (569,103) 0
------------ ------------
Net decrease in net assets from dividends
and distributions (584,085) (14,953)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 100,000 8,937,279
Reinvestment of dividends and distributions 580,696 1,090
Net asset value of shares redeemed (13,178,127)1 (24,692)
------------ ------------
Net increase (decrease) in net assets
from capital share transactions (12,497,431) 8,913,677
------------ ------------
Net increase (decrease) in net assets (16,513,481) 16,921,767
NET ASSETS:
Beginning of year 18,397,567 1,475,800
------------ ------------
End of year $ 1,884,086 $ 18,397,567
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME: $ 0 $ 14,965
============ ============
<FN>
1 Includes redemption of $2,945,341 as a result of redemption in-kind on October
13, 2000.
See Accompanying Notes to Financial Statements.
</FN>
</TABLE>
9
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
(For a Share of the Portfolio Outstanding Throughout Each Year)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998 1
------ ------- ------
<S> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of year $27.74 $ 9.13 $10.00
------ ------- ------
INVESTMENT ACTIVITIES:
Net investment income (loss) (1.11) (0.09) 0.07
Net gains (losses) from investments and foreign currency
transactions (both realized and unrealized) (9.51) 18.79 (0.85)
------ ------- ------
Total from investment activities (10.62) 18.70 (0.78)
------ ------- ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.02) (0.09) (0.09)
Distributions from net realized gains (0.86) 0.00 0.00
------ ------- ------
Total dividends and distributions (0.88) (0.09) (0.09)
------ ------- ------
NET ASSET VALUE, END OF YEAR $16.24 $ 27.74 $ 9.13
====== ======= ======
Total return (39.83)% 206.60% (7.84)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000s omitted) $1,884 $18,398 $1,476
Ratio of expenses to average net assets2 1.27% 1.27% 1.25%
Ratio of net income (loss) to average net assets (.97)% (.85)% .39%
Decrease reflected in above operating expense ratios
due to waivers/reimbursements 0.44% 1.40% 4.52%
Portfolio turnover rate 30.52% 70.37% 39.88%
--------------------------------------------------------------------------------
<FN>
1 Commencement of operations November 1, 1997.
2 Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the net
expense ratio by .02%, .02% and .00% for the years ended October 31, 2000,
1999 and 1998, respectively. The operating expense ratio after reflecting
these arrangements was 1.25% for each of the years ended October 31, 2000,
1999 and 1998.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Credit Suisse Institutional Fund, Inc. (the "Fund") is an open-end management
investment company registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), and was incorporated under the laws of Maryland on May
13, 1992. The Fund currently offers seven managed investment Funds of which one
is contained in this report. The Japan Growth Portfolio ("Japan Growth") is
classified as a non-diversified open-end management investment company
("Portfolio").
The investment objective for the Portfolio is to seek long-term growth of
capital.
The net asset value of the Portfolio is determined daily as of the close of
regular trading on the New York Stock Exchange. The Portfolio's investments are
valued at market value, which is generally determined using the last reported
sales price. If no sales are reported, investments are generally valued at the
mean between the last reported bid and asked prices. If market quotations are
not readily available, securities and other assets are valued by another method
that the Board of Directors believes accurately reflects fair value. Debt that
will mature in 60 days or less is valued on the basis of amortized cost, which
approximates market value, unless the Board determines that using this method
would not reflect an investment's value.
The books and records of the Portfolio are maintained in U.S. dollars.
Transactions denominated in foreign currencies are recorded at the current
prevailing exchange rates. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the current exchange rate
at the end of the period. Translation gains or losses resulting from changes in
the exchange rate during the reporting period and realized gains and losses on
the settlement of foreign currency transactions are reported in the results of
operations for the current period. The Portfolio does not isolate that portion
of realized gains and losses on investments in equity securities which are due
to changes in the foreign exchange rate from that which are due to changes in
market prices of equity securities. The Portfolio isolates that portion of
realized gains and losses on investments in debt securities which are due to
changes in the foreign exchange rate from that which are due to changes in
market prices of debt securities.
The Portfolio invests in securities of foreign countries and governments
(primarily Japan) which involve certain risks in addition to those inherent in
domestic investments. Such risks generally include, among others, currency risk
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation,
11
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
nationalization or the imposition of capital or currency controls or punitive
taxes). Other risks of investing in foreign securities include liquidity and
valuation risks. In addition, focusing investment in a single country, such as
Japan, involves increased risks.
Security transactions are accounted for on a trade date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date. The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes.
Dividends from net investment income and distributions of net realized
capital gains, if any, are declared and paid at least annually. However, to the
extent that a net realized capital gain can be reduced by a capital loss
carryover, such gain will not be distributed. Income and capital gain
distributions are determined in accordance with federal income tax regulations
which may differ from generally accepted accounting principles.
In order to fulfill redemption requests, the Portfolio transferred
appreciated securites in the amount of $2,945,341 during the year. For purposes
of generally accepted accounting principles ("GAAP"), this transaction is
treated as a sale of securities and a gain is recognized based on the market
value of the securities on the date of the in-kind transfer. For tax purposes,
the securities transferred in-kind keep their original cost basis and no gains
are recognized. The result is a permanent difference of $1,061,422 related to
gains recognized on the books, but not for tax purposes.
No provision is made for federal taxes as it is the Fund's intention to have
the Portfolio continue to qualify for and elect the tax treatment applicable to
regulated investment companies under the Internal Revenue Code of 1986, as
amended (the "Code"), and make the requisite distributions to its shareholders
which will be sufficient to relieve it from federal income and excise taxes.
The Portfolio may be subject to taxes imposed by countries in which it
invests, with respect to the investments in issuers existing or operating in
such countries. Such taxes are generally based on income earned or repatriated
and capital gains realized on the sale of such investments. The Portfolio
accrues such taxes when the related income or capital gains are earned.
Pursuant to an exemptive order issued by the Securities and Exchange
Commission, each Portfolio, along with other Funds managed by Credit Suisse
Asset Management LLC ("CSAM") can transfer uninvested cash balances to a pooled
cash account, which is invested in repurchase agreements secured by U.S.
government securities. Securities pledged as
12
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
collateral for repurchase agreements are held by the Portfolio's custodian bank
until the agreements mature. Each agreement requires that the market value of
the collateral be sufficient to cover payments of interest and principal;
however, in the event of default or bankruptcy by the other party to the
agreement, retention of the collateral may be subject to legal proceedings. At
October 31, 2000, the Portfolio was not invested in repurchase agreements.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statement and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from these estimates.
The Portfolio has an arrangement with its transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of the transfer
agent expense.
For the year ended October 31, 2000, the Portfolio received credits or
reimbursements under this arrangement of $3,121.
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
CSAM, which is an indirect wholly-owned U.S. subsidiary of Credit Suisse
Group, serves as the Portfolio's investment adviser. For its investment advisory
services, CSAM receives fees of 1.10% based on the Portfolio's average daily net
assets:
For the year ended October 31, 2000, investment advisory fees, voluntary
waivers and reimbursements were as follows:
<TABLE>
<CAPTION>
GROSS NET EXPENSE
PORTFOLIO ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENTS
--------- ------------ ------ ------------ --------------
<S> <C> <C> <C> <C>
Japan Growth $145,276 $(40,818) $104,458 $(2,205)
</TABLE>
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, and PFPC Inc. ("PFPC"), an indirect subsidiary of PNC Financial Services
Group, Inc., serve as the Portfolio's co-administrators. For its administrative
services, CSAMSI receives a fee calculated at an annual rate of .10% of the
Portfolio's average daily net assets. For the year ended October 31, 2000,
administrative services fees earned by CSAMSI were $13,207.
13
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR-- (CONT'D)
For its administrative services through July 31, 2000, PFPC received a fee,
exclusive of out-of-pocket expenses, based on the following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ --------------------------------
First $250 million .12% of average daily net assets
Next $250 million .10% of average daily net assets
Next $250 million .08% of average daily net assets
Over $750 million .05% of average daily net assets
Effective August 1, 2000, for its administrative services, PFPC receives a
fee, exclusive of out-of-pocket expenses, based on the following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE
------------------------ --------------------------------
First $500 million .11% of average daily net assets
Next $1 billion .09% of average daily net assets
Over $1.5 billion .07% of average daily net assets
For the year ended October 31, 2000, administrative service fees earned and
voluntarily waived by PFPC (including out-of-pocket expenses) were as follows:
NET
PORTFOLIO CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
--------- --------------------- ------ ---------------------
Japan Growth $19,093 $(15,716) $3,377
In addition to serving as the Portfolio's co-administrator, CSAMSI served as
the distributor of the Portfolio's shares until January 1, 2000. On January 1,
2000, Provident Distributors, Inc. ("PDI") replaced CSAMSI as distributor to the
Portfolio. On August 1, 2000, CSAMSI replaced PDI as distributor to the
Portfolio. No compensation is payable by the Fund to PDI or CSAMSI for
distribution services.
3. LINE OF CREDIT
The Portfolio, together with other Funds advised by CSAM, have established a
$350 million committed and a $75 million uncommitted, unsecured, line of credit
facility ("Credit Facility") with Deutche Bank, AG as administrative agent,
State Street Bank and Trust Company as operations agent, Bank of Nova Scotia as
syndication agent and certain other lenders, for temporary or emergency purposes
primarily relating to unanticipated Fund share redemptions. Under the terms of
the Credit Facility, the Funds with access to the Credit Facility pay an
aggregate commitment fee at a rate of .075% per annum on the entire amount of
the Credit Facility, which is allocated among the participating Funds in such a
manner as is determined by the governing Boards of the various Funds. In
addition, the participating funds will pay interest on the borrowings at the
Federal funds rate plus .50%. At October 31, 2000, there were no loans
outstanding for any of the Funds.
14
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
3. LINE OF CREDIT -- (CONT'D)
During the year ended October 31, 2000, the Portfolio had the following
borrowings under the line of credit agreement:
AVERAGE MAXIMUM
AVERAGE DAILY INTEREST DAILY LOAN
PORTFOLIO LOAN BALANCE RATE % OUTSTANDING
--------- ------------ ------ -----------
Japan Growth $26,370 6.477% $787,000
4. INVESTMENTS IN SECURITIES
For the year ended October 31, 2000, purchases and sales of investment
securities (excluding short-term investments) were $4,083,241 and $17,809,072,
respectively.
At October 31, 2000, the net unrealized appreciation from investments for
those securities having an excess of value over cost and net depreciation from
investments for those securities having an excess of cost over value (based on
cost for federal income tax purposes) was $580,013 and $(140,567), respectively,
with net unrealized appreciation of $439,446.
5. FORWARD FOREIGN CURRENCY CONTRACTS
The Portfolio may enter into forward currency contracts for the purchase or
sale of a specific foreign currency at a fixed price on a future date. Risks may
arise from movements in the value of a foreign currency relative to the U.S.
dollar and from the potential default of counterparties to the contracts. The
Portfolio will enter into forward contracts primarily for hedging purposes.
Forward currency contracts are adjusted by the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized until the contract settlement date.
At October 31, 2000, there were no open forward foreign currency contracts in
the Portfolio.
6. CAPITAL SHARE TRANSACTIONS
The Fund is authorized to issue up to thirteen billion full and fractional
shares of common stock of separate series having a $.001 par value per share.
Shares of seven series have been classified, one of which constitutes the
interest in the Portfolio.
15
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS -- (CONT'D)
Transactions in shares of the Portfolio were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
------------------ ------------------
<S> <C> <C>
Shares sold 3,152 502,690
Shares issued to shareholders on reinvestment of
dividends and distributions 18,295 107
Shares redeemed (568,663) (1,237)
-------- -------
Net increase (decrease) in shares outstanding (547,216) 501,560
======== =======
</TABLE>
7. RECLASSIFICATION OF COMPOSITION OF NET ASSETS
At October 31, 2000, capital contributions, undistributed net investment
income, accumulated net realized gain (loss) from security transactions and
current period dividends and distributions have been adjusted for current period
permanent book/tax differences which arose principally from differing book/tax
treatments of foreign currency, and foreign taxes on capital gains. The
Portfolio reclassified $(128,707) from accumulated net investment loss to
accumulated net realized gain on security transactions and foreign currency
related items. Net investment income, net realized gain (loss) on investments
and net assets were not affected by these reclassifications.
8. PORTFOLIO NAME CHANGE
At the Board Meeting on May 1, 2000, the Board of Directors voted to rename
the Warburg, Pincus Institutional Fund, Inc. As of May 11th, 2000 the Fund
ceased to be named the Warburg, Pincus Institutional Fund, Inc. and is named the
Credit Suisse Institutional Fund, Inc. There will be no name changes to the
individual Portfolios contained within this report.
9. SUBSEQUENT EVENT
This Portfolio ceased all operations effective December 13, 2000 and
liquidated all its shares as of this date.
16
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
CREDIT SUISSE INSTITUTIONAL FUND, INC.:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects the financial position of the Japan Growth Portfolio (the
"Fund"), a portfolio of the Credit Suisse Institutional Fund, Inc. at October
31, 2000, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended and its
financial highlights for each of the years (or periods) presented, in conformity
with accounting principles generally accepted in the United States of America.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2000 by correspondence with the
custodian, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Two Commerce Square
2001 Market Street
Philadelphia, Pennsylvania
December 15, 2000
17
<PAGE>
CREDIT SUISSE INSTITUTIONAL FUND, INC. -- JAPAN GROWTH PORTFOLIO
SHAREHOLDER TAX INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
The Portfolio is required by Subchapter M of the Code to advise its
shareholders within 60 days of its fiscal year end as to the U.S. federal tax
status of dividends and distributions received by its shareholders in respect of
such fiscal year. During the fiscal year ended October 31, 2000, the following
dividends and distributions per share were paid by the Portfolio:
<TABLE>
<CAPTION>
ORDINARY FOREIGN SOURCE FOREIGN TAXES
INCOME INCOME PAID OR WITHHELD
FUND PER SHARE PER SHARE PER SHARE
---- --------- -------------- ----------------
PAYMENT DATE 12/07/99
--------
<S> <C> <C> <C>
Japan Growth Portfolio 0.8811 0.0047 0.0067
</TABLE>
The above information was provided to calendar year taxpayers via Form
1099-DIV mailed in January of 2000. Because the fiscal year of the Portfolio is
not a calendar year, another notification will be sent with respect to calendar
year 2000. The second notification, which will reflect the amount to be used by
calendar year taxpayers on their U.S. federal income tax returns, will be made
in conjunction with Form 1099-DIV and will be mailed in January 2001.
18
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[GRAPHICS OMITTED]
CREDIT SUISSE ASSET MANAGEMENT
P.O. BOX 9030, BOSTON, MA 02205-9030
800-222-8977
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR CSJPG-2-1000