Edgar Filing: CREDIT SUISSE ASSET MANAGEMENT INCOME FUND INC

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File No. 811-05012
-----------------------------------------

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC.
------------------------------------------------
(Exact Name of Registrant as Specified in Charter)

466 Lexington Avenue, New York, New York 10017-3140
---------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)

J. Kevin Gao, Esq.
Credit Suisse Asset Management Income Fund, Inc.
466 Lexington Avenue
New York, New York 10017-3140

Registrant's telephone number, including area code: (212) 875-3500

Date of fiscal year end: December 31

Date of reporting period: January 1, 2004 to December 31, 2004

ITEM 1. REPORTS TO STOCKHOLDERS.

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC.

ANNUAL REPORT
DECEMBER 31, 2004

Credit Suisse Asset Management Income Fund, Inc.
466 Lexington Avenue
New York, NY 10017

OFFICERS AND DIRECTORS

Michael E. Kenneally
DIRECTOR, CHAIRMAN OF THE
BOARD AND CHIEF EXECUTIVE OFFICER

Enrique R. Arzac
DIRECTOR

Lawrence J. Fox
DIRECTOR

James S. Pasman, Jr.
DIRECTOR

William W. Priest, Jr.
DIRECTOR

Richard J. Lindquist
PRESIDENT AND CHIEF INVESTMENT
OFFICER

Emidio Morizio
CHIEF COMPLIANCE
OFFICER

Ajay Mehra
CHIEF LEGAL OFFICER

J. Kevin Gao
SENIOR VICE PRESIDENT

Michael A. Pignataro
CHIEF FINANCIAL OFFICER,
VICE PRESIDENT AND
SECRETARY

Maxine C. Evertz
ASSISTANT SECRETARY

Robert M. Rizza
TREASURER

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

Fleet National Bank
(c/o Equiserve)
P.o. Box 43010
Providence, Rhode Island 02940-3010
Phone 1-800-730-6001

LEGAL COUNSEL

Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Pricewaterhousecoopers LLP
Two Commerce Square
Philadelphia, Pennsylvania 19103

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC. (THE "FUND")
ANNUAL REPORT - DECEMBER 31, 2004

Dear Shareholder:

PERFORMANCE SUMMARY

12/31/03 - 12/31/04

FUND & BENCHMARKS PERFORMANCE
------------------------------------ ------------

Fund NAV (as of 12/31/04) $ 4.56
Total Return* (based on NAV) 13.55%
Total Return (based on market value) 8.60%
Citigroup High-Yield Market Index**
(CHYMI) 10.79%
J. P. Morgan Emerging Markets
Bond Index Global*** 11.73%

MARKET OVERVIEW: POSITIVE HIGH YIELD ENVIRONMENT

In our view, a quickening economic recovery, robust corporate earnings
growth and a strong credit environment were positive factors for high yield
during the Fund's fiscal year. With inflation in check, nominal short term rates
remained at their 45-year low for much of the year. The Fed only began
tightening at its June 30th meeting, and did so in a well-telegraphed,
"measured" pace, raising rates a quarter point at each successive meeting,
bringing the fed funds rate to 2.25% by year-end.

In this low-rate environment, corporate managements took advantage of
strong cash flow to repair their balance sheets. Issuance of below investment
grade paper set a new high in 2004 at $158 billion, over 60% of which was
earmarked for the replacement of higher interest debt. The deleveraging helped
drive Moody's default and downgrade/upgrade ratios to cyclical lows. And as the
risk premium declined, demand for high yield surged, with investors flocking
particularly to lower-rated securities, deemed by some to be safer in the
stronger fundamental environment. Spread tightening occurred across the credit
spectrum, but was greatest in CCC-rated issues.

STRATEGIC REVIEW: SELECTIVE SECTOR POSITIONING

The Fund outperformed its CHYMI benchmark primarily due to its relative
positioning in outperforming industry sectors and to security selection within
those sectors. The Fund's highest relative weightings versus the CHYMI benchmark
(in chemicals, gaming, wireless and cable) accounted for strong relative
contributions versus the benchmark. Security selection within those sectors, as
well as in technology, automobile manufacturing and building products, was also
a key driver of return. In emerging markets, we overweighted the debt of
commodity-producing countries including Venezuela, Russia and Brazil, all of
which benefited from increased raw materials prices. Detractors to performance
included our underweight position in industries where, in our view, the
fundamentals had weakened, which included the diversified telecom, utilities and
energy-other sectors.

OUTLOOK: HIGH HOPES FOR HIGH YIELD

We expect the fundamental credit environment to remain strong in 2005, as
high corporate cash level and refinancing has, in our opinion, reduced the
likelihood of default over the next three to six quarters. As we don't expect
significant further spread tightening, coupon income could become a large
component of total returns. We have a positive view of the wireless, cable and
chemicals sectors and will continue to underweight diversified telecom and
airlines. In our view, increased CCC-rated issuance in 2004 may be a harbinger
of a weaker fundamental environment two to three years out. The Fund will
maintain its overweight in B-rated issues and we remain cautious on duration,
emphasizing shorter maturity issues.

Sincerely yours,

/s/ Richard J. Lindquist
Richard J. Lindquist
PRESIDENT AND CHIEF INVESTMENT OFFICER ****

/s/ Michael E. Kenneally
Michael E. Kenneally
DIRECTOR, CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER *****

HIGH YIELD BONDS ARE LOWER-QUALITY BONDS THAT ARE ALSO KNOWN AS "JUNK
BONDS." SUCH BONDS ENTAIL GREATER RISKS THAN THOSE FOUND IN HIGHER-RATED
SECURITIES. INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS,
INCLUDING CURRENCY FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS,
AND DIFFERENCES IN ACCOUNTING METHODS; THESE RISKS ARE GENERALLY HEIGHTENED FOR
EMERGING-MARKET INVESTMENTS. THE FUND MAY INCLUDE A GREATER DEGREE OF RISK THAN
OTHER FUNDS THAT INVEST IN LARGER, MORE-DEVELOPED MARKETS.

IN ADDITION TO HISTORICAL INFORMATION, THIS REPORT CONTAINS FORWARD-LOOKING
STATEMENTS, WHICH MAY CONCERN, AMONG OTHER THINGS, DOMESTIC AND FOREIGN MARKET,
INDUSTRY AND ECONOMIC TRENDS AND DEVELOPMENTS AND GOVERNMENT REGULATION AND
THEIR POTENTIAL IMPACT ON THE FUND'S INVESTMENT PORTFOLIO. THESE STATEMENTS ARE
SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL TRENDS, DEVELOPMENTS AND
REGULATIONS IN THE FUTURE AND THEIR IMPACT ON THE FUND COULD BE MATERIALLY
DIFFERENT FROM THOSE PROJECTED, ANTICIPATED OR IMPLIED. THE FUND HAS NO
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS.

THE INFORMATION PRESENTED IS FOR INFORMATIONAL PURPOSES ONLY. THIS REPORT
IS NOT A RECOMMENDATION TO BUY OR SELL OR A SOLICITATION OF AN OFFER TO BUY OR
SELL ANY SECURITIES OR ADOPT ANY INVESTMENT STRATEGY. READERS ARE ADVISED NOT
TO INFER OR ASSUME THAT ANY SECURITIES, COMPANIES, SECTORS OR MARKETS DESCRIBED
WILL BE PROFITABLE. ALL OPINIONS AND VIEWS CONSTITUTE JUDGMENTS AS OF THE DATE
OF WRITING, AND ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE.

*Assuming reinvestment of dividends of $0.42 per share.

**The Citigroup High-Yield Market Index is a broad-based, unmanaged index
of high yield securities that is compiled by Citigroup Global Markets Inc. It
does not reflect the impact of taxes. Investors cannot invest directly in an
index.

***The J.P. Morgan Emerging Markets Bond Index Global is a comprehensive
index of emerging market debt securities. Launched in August 1999, it tracks the
total returns of U.S. dollar-denominated debt instruments for 27 emerging market
countries. Investors cannot invest directly in an index.

****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 High Yield Bond Fund (NYSE: DHY).

*****Michael E. Kenneally, is the Chairman and Global Chief Executive
Officer of CSAM. He has served in these capacities since April 2003. Previously,
he was the Chairman and Chief Investment Officer of Banc of America Capital
Management from 1998 to March 2003. Mr. Kenneally is also Director and/or
Chairman of other investment companies advised by CSAM.

TOP TEN HOLDINGS(unaudited)
(as a % of net assets as of 12/31/04)

1. Ministry Finance of Russia Series V,
Debentures 3.00%, 5/14/08 1.7%
2. Westfed Holdings Sr. Debentures
15.50%, 9/15/99 1.7%
3. Federal Republic of Brazil
Unsubordinated 11.00%, 8/17/40 1.5%
4. Newark Group, Inc. Sr. Sub. Notes
9.75%, 3/15/14 0.9%
5. Russian Federation Series REGS,
Unsubordinated 5.00%, 3/31/30 0.9%
6. Hard Rock Hotel, Inc. Notes
8.875%, 6/1/13 0.9%
7. Federal Republic of Brazil Series 20 yr,
Bonds 8%, 4/15/14 0.9%
8. Federal Republic of Brazil Series 30 yr,
Collateralized 3.0625%, 4/15/24 0.7%
9. Republic of Turkey Sr. Unsub. Notes
11.875%, 1/15/30 0.6%
10. Cablevision Systems New York Group
Sr. Notes 8.00%, 4/15/12 0.6%

CREDIT QUALITY BREAKDOWN (unaudited)
(as a % of total investments as of 12/31/04)

A/A 0.6%
BBB/Baa 1.2
BB/Ba 11.6
B/B 46.5
CCC/Caa 21.9
CC/Ca 4.2
N/R 6.8
--------
Subtotal 92.8
Time Deposit 6.0
Equities and Other 1.2
--------
Total 100.0%
========

SCHEDULE OF INVESTMENTS

DECEMBER 31, 2004

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

DOMESTIC SECURITIES (74.7%)

CORPORATE OBLIGATIONS (73.5%)

AEROSPACE (0.5%)
BE Aerospace, Inc.
Series B, Sr. Sub. Notes
8.00%, 3/1/08 Caa3 $ 300 $ 301,875
(1) L-3 Communications
Corp.
Sr. Sub. Notes
5.875%, 1/15/15 Ba3 650 651,625
Sequa Corp.
Sr. Notes
9.00%, 8/1/09 B1 250 283,125
----------------
GROUP TOTAL 1,236,625
----------------
AIRLINES (0.3%)
American Airlines, Inc.
Series 01-2,
Pass thru Certs
7.80%, 10/1/06 B1 550 503,767
Continental Airlines, Inc.
Series 991C,
Pass thru Certs
6.954%, 8/2/09 B2 177 143,590
----------------
GROUP TOTAL 647,357
----------------
AUTOMOBILE MANUFACTURING/VEHICLE PARTS (2.4%)
(2) Aetna Industries, Inc.
Sr. Notes
11.875%, 10/1/06 N/R 1 30
Autocam Corp.
Sr. Sub. Notes
10.875%, 6/15/14 B3 400 396,000
Cambridge Industries, Inc.
Sr. Sub. Notes
10.25%, 7/15/07 Aa2 775 7,746
(1) Collins & Aikman
Products Corp.
Sr. Sub. Notes
12.875%, 8/24/12 B3 1,350 1,172,812
(1) Cooper Standard Auto
Notes
8.375%, 12/15/14 B3 500 501,250
Dura Operating Corp.
Series D, Gtd.
9.00%, 5/1/09 B3 400 398,000
Holley Performance
Products, Inc.
Series B, Gtd.
12.25%, 9/15/07 Caa3 365 286,525
Metaldyne Corp.
Gtd.
11.00%, 6/15/12 Caa1 800 668,000
Motor Coach Industries
International, Inc.
Gtd.
11.25%, 5/1/09 Ca 1,121 644,287
(1) Stanadyne Corp.
Sr. Sub. Notes
10.00%, 8/15/14 Caa1 $ 400 $ 434,000
(1) Tenneco Automotive, Inc.
Sr. Sub. Notes
8.625%, 11/15/14 B3 350 365,750
(1) Transportation
Technologies Industries,
Inc.
Sr. Sub. Notes
12.50%, 3/31/10 Caa1 500 516,250
----------------
GROUP TOTAL 5,390,650
----------------
BROADBAND (0.2%)
(1) Level 3 Financing, Inc.
Sr. Notes
10.75%, 10/15/11 Caa1 250 227,500
Primus
Telecommunications
Group, Inc.
Sr. Notes
8.00%, 1/15/14 B3 250 221,250
----------------
GROUP TOTAL 448,750
----------------
BROADCAST/OUTDOOR (0.6%)
Emmis Operating, Co.
Sr. Subordinated
6.875%, 5/15/12 B2 250 262,812
Interep National Radio
Sales, Inc.
Series B, Gtd.
10.00%, 7/1/08 Ca 250 189,687
(3) Paxson Communications
Corp.
Gtd.
0.00%, 1/15/09 Caa1 500 470,000
Sinclair Broadcast
Group, Inc.
Gtd.
8.75%, 12/15/11 B2 450 492,187
----------------
GROUP TOTAL 1,414,686
----------------
BUILDING PRODUCTS (2.3%)
(3) Associated Materials, Inc.
Sr. Discount Notes
0.00%, 3/1/14 Caa2 750 543,750
Building Materials Corp.
Series B, Sr. Notes
7.75%, 7/15/05 B2 250 255,625
(1) Building Materials Corp.
of America
Sr. Notes
7.75%, 8/1/14 B2 300 304,125
Dayton Superior Corp.:
Gtd.
13.00%, 6/15/09 Caa2 720 752,400
Secured
10.75%, 9/15/08 B3 250 268,750

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

(1) Goodman Global
Holdings Co., Inc.
Sr. Sub. Notes
7.875%, 12/15/12 Caa1 $ 250 $ 248,750
Interface, Inc.
Sr. Sub. Notes
9.50%, 2/1/14 Caa3 400 438,000
(3) Norcraft Holdings/Capital
Sr. Discount Notes
0.00%, 9/1/12 Caa1 250 188,750
Ply Gem Industries, Inc.
Sr. Sub. Notes
9.00%, 2/15/12 B3 400 408,000
(1) RMCC Acquisition Co.
Sr. Sub. Notes
9.50%, 11/1/12 Caa1 500 501,250
(1) THL Buildco (Nortek), Inc.
Sr. Sub. Notes
8.50%, 9/1/14 B3 300 315,000
Texas Industries, Inc.
Sr. Notes
10.25%, 6/15/11 B1 250 293,750
Werner Holdings Co., Inc.
Series A, Gtd.
10.00%, 11/15/07 B3 800 668,000
----------------
GROUP TOTAL 5,186,150
----------------
CABLE (6.6%)
(2) Adelphia Communications
Corp.
Series B, Sr. Notes
8.375%, 2/1/08 N/R 800 758,000
(1) Atlantic Broadband
Finance LLC
Sr. Sub. Notes
9.375%, 1/15/14 Caa1 500 486,250
CSC Holdings, Inc.:
Series B, Debentures
8.125%, 8/15/09 B1 150 164,812
Series B, Sr. Notes
7.625%, 4/1/11 B1 200 216,500
(1) Cablevision Systems
Group Corp.
Sr. Notes
8.00%, 4/15/12 B3 1,250 1,340,625
(2) Century Communications
Corp.
Series B, Sr. Discount
Notes
0.00%, 1/15/08 N/R 500 352,500
Sr. Discount Notes
0.00%, 3/15/03 N/R 500 532,500
Sr. Notes
8.75%, 10/1/07 N/R 450 531,000
Charter Communications
Holdings LLC:
Sr. Discount Notes
9.92%, 4/1/11 Ca 1,200 1,029,000
Sr. Notes
8.625%, 4/1/09 Ca 750 654,375
8.75%, 11/15/13 B3 500 518,750
10.25%, 1/15/10 Ca 950 838,375
(2)(4) DIVA Systems Corp.
Series B, Sr. Discount
Notes
12.625%, 3/1/08 N/R $ 3,014 $ 7,536
(2) Frontiervision Holdings LP
Series B, Sr. Discount
Notes
11.875%, 9/15/07 N/R 500 670,000
(3) Insight Communications
Co., Inc.
Sr. Discount Notes
0.00%, 2/15/11 Caa2 250 244,375
Insight Midwest/Insight
Capital:
Sr. Notes
9.75%, 10/1/09 B2 900 947,250
10.50%, 11/1/10 B2 500 550,000
Jones Intercable, Inc.
Sr. Notes
7.625%, 4/15/08 Baa3 450 498,265
Mediacom LLC/Capital
Corp.:
Series B, Sr. Notes
8.50%, 4/15/08 B3 871 892,775
Sr. Notes
7.875%, 2/15/11 B3 850 837,250
Northland Cable
Television, Inc.
Gtd.
10.25%, 11/15/07 Caa3 750 750,000
(2) Olympus Communications,
L.P./Olympus Capital
Corp.
Series B, Sr. Notes
10.625%, 11/15/06 N/R 892 1,177,440
Renaissance Media
Group LLC
Gtd.
10.00%, 4/15/08 B3 953 986,355
----------------
GROUP TOTAL 14,983,933
----------------
CAPITAL GOODS (1.2%)
Blount, Inc.
Sr. Sub. Notes
8.875%, 8/1/12 Caa1 250 272,500
(1) Case New Holland, Inc.
Sr. Notes
9.25%, 8/1/11 Ba3 350 391,125
JII Holdings LLC
Secured
13.00%, 4/1/07 Caa2 760 707,172
Motors & Gears, Inc.
Series D, Sr. Notes
10.75%, 11/15/06 Caa1 950 933,375
SPX Corp.
Sr. Notes
6.25%, 6/15/11 Ba3 350 371,000
----------------
GROUP TOTAL 2,675,172
----------------

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

CHEMICALS (3.7%)
(1) Crompton Corp.
Sr. Notes
9.875%, 8/1/12 B1 $ 350 $ 402,500
(1)(3) Crystal U.S. Holdings/
U.S. Sub3
Sr. Discount Notes
0.00%, 10/1/14 Caa2 700 483,000
Equistar Chemicals L.P./
Equistar Funding Corp.
Sr. Notes
10.625%, 5/1/11 B2 350 407,750
(3) HMP Equity Holdings
Corp.
Sr. Discount Notes
0.00%, 5/15/08 N/R 500 333,125
(3) Huntsman International
Holdings LLC
Sr. Discount Notes
0.00%, 12/31/09 Caa2 250 141,250
(1) Huntsman Co. LLC:
Gtd.
11.625%, 10/15/10 B2 500 593,750
11.50%, 7/15/12 B3 400 475,000
IMC Global, Inc.
Sr. Notes
10.875%, 8/1/13 B1 350 439,250
ISP Chemco, Inc.
Series B, Gtd.
10.25%, 7/1/11 B1 250 283,750
(1)(3) KI Holdings, Inc.
Sr. Discount Notes
0.00%, 11/15/14 Caa2 600 387,000
(1) Kraton Polymers LLC/
Capital Corp.
Sr. Sub. Notes
8.125%, 1/15/14 Caa1 350 366,625
Lyondell Chemical Co.:
Gtd.
10.50%, 6/1/13 B1 850 1,015,750
Series B, Secured
9.875%, 5/1/07 B1 411 432,577
Millennium America, Inc.
Gtd.
9.25%, 6/15/08 B1 500 571,250
Nalco Co.
Sr. Sub. Notes
8.875%, 11/15/13 Caa1 400 441,000
Polyone Corp.
Gtd.
10.625%, 5/15/10 B3 400 452,000
Radnor Holdings Corp.
Sr. Notes
11.00%, 3/15/10 Caa1 250 215,625
Resolution Performance
Products LLC
Sr. Sub. Notes
13.50%, 11/15/10 Caa2 500 546,250
Terra Capital, Inc.
Secured
11.50%, 6/1/10 Caa1 357 408,765
----------------
GROUP TOTAL 8,396,217
----------------
COMPETITIVE LOCAL EXCHANGE CARRIER (0.8%)
Madison River Capital/
Madison River Finance
Sr. Notes
13.25%, 3/1/10 Caa1 $ 871 $ 944,492
Time Warner Telecom,
LLC
Sr. Notes
9.75%, 7/15/08 B3 800 814,000
----------------
GROUP TOTAL 1,758,492
----------------
CONSUMER PRODUCTS/TOBACCO (3.0%)
(1)(3) AAC Group Holding Corp.
Sr. Discount Notes
0.00%, 10/1/12 Caa1 400 271,000
Ames True Temper, Inc.
Sr. Sub. Notes
10.00%, 7/15/12 Caa1 600 618,000
Amscan Holdings, Inc.
Sr. Sub. Notes
8.75%, 5/1/14 B3 300 301,500
DIMON, Inc.
Sr. Notes
7.75%, 6/1/13 B1 500 527,500
(2) Diamond Brands
Operating Corp.
Gtd.
10.125%, 4/15/08 N/R 2,000 40,000
General Binding Corp.
Gtd.
9.375%, 6/1/08 Caa1 700 703,500
(1) Interactive Health LLC
Sr. Notes
7.25%, 4/1/11 B3 400 350,000
(3) Johnsondiversey
Holdings, Inc.
Discount Notes
0.00%, 5/15/13 B3 600 522,000
Leiner Health Products,
Inc.
Sr. Sub. Notes
11.00%, 6/1/12 B3 250 274,375
PCA LLC/PCA Finance
Corp.
Sr. Notes
11.875%, 8/1/09 B3 650 575,250
Playtex Products, Inc.
Gtd.
9.375%, 6/1/11 Caa2 500 536,250
(1) Prestige Brands, Inc.
Sr. Sub. Notes
9.25%, 4/15/12 Caa1 500 533,750
Rayovac Corp.
Sr. Sub. Notes
8.50%, 10/1/13 B3 250 278,750
Remington Arms Co., Inc.
Gtd.
10.50%, 2/1/11 B3 115 111,550
Samsonite Corp.
Sr. Sub. Notes
8.875%, 6/1/11 B3 250 271,875

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

Sealy Mattress Co.
Sr. Sub. Notes
8.25%, 6/15/14 B2 $ 400 $ 426,000
United Industries Corp.
Series D, Gtd.
9.875%, 4/1/09 N/R 400 420,500
----------------
GROUP TOTAL 6,761,800
----------------
CONTAINERS (2.1%)
AEP Industries, Inc.
Sr. Sub. Notes
9.875%, 11/15/07 B3 650 664,625
Berry Plastics Corp.
Gtd.
10.75%, 7/15/12 B3 600 690,000
(1) Graham Packaging Co.
Sub. Notes
9.875%, 10/15/14 Caa2 350 375,375
Graphic Packaging
International Corp.
Sr. Sub. Notes
9.50%, 8/15/13 B3 250 285,625
(1) Intertape Polymer U.S., Inc.
Sr. Sub. Notes
8.50%, 8/1/14 B3 300 306,375
Owens-Illinois, Inc.
Sr. Notes
8.10%, 5/15/07 B3 850 909,500
Pliant Corp.
Gtd.
13.00%, 6/1/10 Caa2 850 833,000
Solo Cup Co.
Sr. Sub. Notes
8.50%, 2/15/14 B3 500 522,500
U.S. Can Corp.
Gtd.
10.875%, 7/15/10 Caa1 250 266,250
----------------
GROUP TOTAL 4,853,250
----------------
DIVERSIFIED TELECOMMUNICATIONS (0.6%)
Cincinnati Bell, Inc.
Sr. Sub. Notes
8.375%, 1/15/14 B3 250 254,375
(1) Qwest Communications
International, Inc.
Sr. Notes
7.50%, 2/15/14 B3 300 304,500
Qwest Corp.:
Notes
6.625%, 9/15/05 Ba3 500 512,500
(1) Sr. Notes
7.875%, 9/1/11 Ba3 250 272,500
----------------
GROUP TOTAL 1,343,875
----------------
ENERGY/OTHER (2.1%)
Dynegy Holdings, Inc.:
(1) Secured
10.125%, 7/15/13 B3 250 287,500
Sr. Notes
6.875%, 4/1/11 Caa2 250 241,875
8.75%, 2/15/12 Caa2 600 631,500
El Paso CGP Co.:
Notes
6.375%, 2/1/09 Caa1 $ 250 $ 250,312
7.75%, 6/15/10 Caa1 250 262,500
El Paso Corp.
Sr. Notes
7.00%, 5/15/11 Caa1 500 508,125
El Paso Natural Gas
Series A, Sr. Notes
7.625%, 8/1/10 B1 250 275,000
El Paso Production
Holding Co.
Gtd.
7.75%, 6/1/13 B3 750 789,375
Giant Industries, Inc.:
Gtd.
11.00%, 5/15/12 B3 186 216,690
Sr. Sub. Notes
8.00%, 5/15/14 B3 200 210,000
(1) Gulfmark Offshore, Inc.
Sr. Notes
7.75%, 7/15/14 B2 250 266,250
Reliant Energy, Inc.
Secured
6.75%, 12/15/14 B1 250 249,687
Reliant Resources, Inc.
Secured
9.50%, 7/15/13 B1 500 570,625
----------------
GROUP TOTAL 4,759,439
----------------
ENVIRONMENTAL SERVICES (0.4%)
Allied Waste North
America, Inc.
Series B, Sr. Notes
7.375%, 4/15/14 Caa1 500 481,250
(1) Waste Services, Inc.
Sr. Sub. Notes
9.50%, 4/15/14 Ca 400 400,000
----------------
GROUP TOTAL 881,250
----------------
FINANCE (2.0%)
(1) E*Trade Financial Corp.
Sr. Notes
8.00%, 6/15/11 B1 250 270,000
(1) Rainbow National
Services LLC
Sr. Notes
8.75%, 9/1/12 B3 250 275,625
Westfed Holdings:
(2) Debentures
15.50%, 9/15/99 N/R 2,000 3,800,000
(4) Sr. Debentures
25.00%, 8/22/09 N/R 121 121,025
----------------
GROUP TOTAL 4,466,650
----------------
FOOD PROCESSORS/BEVERAGE/BOTTLING (1.4%)
Agrilink Foods, Inc.
Gtd.
11.875%, 11/1/08 B3 100 104,625

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

Eagle Family Foods, Inc.
Series B, Gtd.
8.75%, 1/15/08 Caa2 $ 471 $ 364,637
Land O'Lakes, Inc.
Sr. Notes
8.75%, 11/15/11 B3 800 800,000
(1) Le-Natures, Inc.
Sr. Sub. Notes
9.00%, 6/15/13 Caa1 250 277,500
National Wine & Spirits,
Inc.
Gtd.
10.125%, 1/15/09 B3 220 218,900
(1) Pinnacle Foods Holding
Corp.
Sr. Sub. Notes
8.25%, 12/1/13 B3 400 383,000
Swift & Co.:
Gtd.
10.125%, 10/1/09 B1 250 280,000
Sr. Sub. Notes
12.50%, 1/1/10 B2 300 340,500
Wornick Co.
Secured
10.875%, 7/15/11 B2 400 436,000
----------------
GROUP TOTAL 3,205,162
----------------
GAMING (5.6%)
American Casino &
Entertainment
Properties LLC
Secured
7.85%, 2/1/12 B2 500 533,750
Ameristar Casinos, Inc.
Gtd.
10.75%, 2/15/09 B2 920 1,030,400
Argosy Gaming Co.:
Sr. Sub. Notes
9.00%, 9/1/11 Ba3 250 280,000
7.00%, 1/15/14 B1 250 277,500
Aztar Corp.
Sr. Sub. Notes
7.875%, 6/15/14 Ba3 250 276,875
Boyd Gaming Corp.
Gtd.
9.25%, 8/1/09 Ba3 600 648,000
(1) Chukchansi Economic
Development Authority
Sr. Notes
14.50%, 6/15/09 N/R 1,000 1,265,000
Circus & Eldorado/Silver
Legacy Capital Corp.
First Mortgage Notes
10.125%, 3/1/12 B1 500 546,250
Hard Rock Hotel, Inc.
Notes
8.875%, 6/1/13 B3 1,800 1,998,000
Herbst Gaming, Inc.
Sr. Sub. Notes
8.125%, 6/1/12 B3 300 322,500
Inn of the Mountain Gods
Sr. Notes
12.00%, 11/15/10 B3 400 470,000
Isle of Capri Casinos, Inc.
Sr. Sub. Notes
7.00%, 3/1/14 B2 $ 400 $ 410,000
MGM Mirage, Inc.:
Gtd.
9.75%, 6/1/07 Ba2 100 111,500
Sr. Notes
6.75%, 9/1/12 Ba1 250 264,375
Majestic Star Casino LLC
Gtd.
9.50%, 10/15/10 B2 750 798,750
Mohegan Tribal Gaming
Authority
Sr. Sub. Notes
7.125%, 8/15/14 Ba3 250 264,375
Park Place Entertainment
Corp.:
Sr. Sub. Notes
7.875%, 12/15/05 Ba2 150 156,000
9.375%, 2/15/07 Ba2 500 552,500
Penn National Gaming,
Inc.
Series B, Gtd.
11.125%, 3/1/08 B2 850 911,625
River Rock Entertainment
Authority
Sr. Notes
9.75%, 11/1/11 B2 400 450,500
Riviera Holdings Corp.
Gtd.
11.00%, 6/15/10 B2 700 785,750
Venetian Casino Resort
LLC
Gtd.
11.00%, 6/15/10 B2 180 206,325
(1) Waterford Gaming LLC
Sr. Notes
8.625%, 9/15/12 B1 228 245,100
(2)(4) Windsor Woodmont Black
Hawk
Series B, First Mortgage
Notes
13.00%, 3/15/05 N/R 290 8,700
----------------
GROUP TOTAL 12,813,775
----------------
HEALTHCARE FACILITIES/SUPPLIES (2.4%)
Ardent Health Services
LLC
Sr. Sub. Notes
10.00%, 8/15/13 B3 250 263,750
(1) Beverly Enterprises, Inc.
Sr. Sub. Notes
7.875%, 6/15/14 B2 250 269,375
(1)(3) CDRV Investors, Inc.
Sr. Discount Notes
0.00%, 1/1/15 Caa2 800 501,000
Concentra Operating
Corp.
Gtd.
9.50%, 8/15/10 B3 250 283,750

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

Fisher Scientific
International, Inc.
Sr. Sub. Notes
8.125%, 5/1/12 Ba3 $ 260 $ 289,900
(3) MQ Associates, Inc.
Sr. Discount Notes
0.00%, 8/15/12 Caa1 1,000 760,000
Medquest, Inc.
Series B, Gtd.
11.875%, 8/15/12 B3 600 708,000
(1) National Mentor, Inc.
Sr. Sub. Notes
9.625%, 12/1/12 B3 400 427,000
(1) Tenet Healthcare Corp.
Sr. Notes
9.875%, 7/1/14 B3 250 273,750
Triad Hospitals, Inc.
Sr. Sub. Notes
7.00%, 11/15/13 B3 1,000 1,027,500
Universal Hospital
Services, Inc.
Sr. Notes
10.125%, 11/1/11 B3 250 261,250
(1) Vanguard Health
Holdings II
Sr. Sub. Notes
9.00%, 10/1/14 Caa1 350 376,250
----------------
GROUP TOTAL 5,441,525
----------------
HOME BUILDERS (0.8%)
Tech Olympic USA, Inc.
Gtd.
9.00%, 7/1/10 Ba3 500 537,500
Toll Corp.
Sr. Sub. Notes
8.25%, 12/1/11 Ba2 250 277,500
WCI Communities, Inc.
Gtd.
10.625%, 2/15/11 Ba3 650 724,750
William Lyon Homes, Inc.
Sr. Notes
7.50%, 2/15/14 B2 250 241,250
----------------
GROUP TOTAL 1,781,000
----------------
INDUSTRIAL (1.5%)
(1) Altra Industrial Motion
Secured
9.00%, 12/1/11 B3 400 408,000
(1) Amsted Industries, Inc.
Sr. Notes
10.25%, 10/15/11 B3 250 283,750
Amtrol, Inc.
Sr. Sub. Notes
10.625%, 12/31/06 Caa3 600 529,500
(1) Coleman Cable, Inc.
Sr. Notes
9.875%, 10/1/12 B3 400 427,000
(1) Hawk Corp.
Sr. Notes
8.75%, 11/1/14 B2 250 257,500
Polypore, Inc.
Sr. Sub. Notes
8.75%, 5/15/12 Caa1 $ 400 $ 420,000
True Temper Sports, Inc.
Gtd.
8.375%, 9/15/11 Caa1 450 420,750
Wolverine Tube, Inc.
Gtd.
10.50%, 4/1/09 B3 550 602,250
----------------
GROUP TOTAL 3,348,750
----------------
LEISURE (2.7%)
AMC Entertainment, Inc.:
Sr. Sub. Notes
9.875%, 2/1/12 B3 650 711,750
8.00%, 3/1/14 B3 400 400,000
Affinity Group, Inc.
Sr. Sub. Notes
9.00%, 2/15/12 B3 250 271,875
Bally Total Fitness
Holding Corp.
Sr. Notes
10.50%, 7/15/11 B3 350 354,375
Bluegreen Corp.
Series B, Gtd.
10.50%, 4/1/08 B3 1,000 1,025,000
Booth Creek Ski Holdings,
Inc.
Series B, Gtd.
12.50%, 3/15/07 Caa1 1,147 1,161,337
(3) Cinemark, Inc.
Sr. Discount Notes
0.00%, 3/15/14 Caa1 400 304,000
Cinemark USA, Inc.
Sr. Sub. Notes
9.00%, 2/1/13 B3 250 286,562
Six Flags, Inc.:
Sr. Notes
9.75%, 4/15/13 Caa1 400 408,000
9.625%, 6/1/14 Caa1 500 505,000
(1)(3) WMG Holdings Corp.
Sr. Discount Notes
0.00%, 12/15/14 Caa2 1,250 804,688
----------------
GROUP TOTAL 6,232,587
----------------
LODGING (0.8%)
CapStar Hotel Co.
Sr. Sub. Notes
8.75%, 8/15/07 Caa1 250 255,313
Felcor Lodging LP
Gtd.
8.50%, 6/1/11 B1 425 483,438
HMH Properties, Inc.
Series B, Gtd.
7.875%, 8/1/08 Ba3 126 130,095
Host Marriot LP
Series I, Gtd.
9.50%, 1/15/07 Ba3 600 660,000

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

John Q. Hammons Hotel
LP
Series B, First
Mortgage Notes
8.875%, 5/15/12 B2 $ 300 $ 340,500
----------------
GROUP TOTAL 1,869,346
----------------
METALS & MINING (1.9%)
AK Steel Corp.:
Gtd.
7.875%, 2/15/09 B3 250 255,938
7.75%, 6/15/12 B3 300 310,500
(1) Alpha Natural Resources
Gtd.
10.00%, 6/1/12 B3 500 572,500
Earle M. Jorgensen Co.
Secured
9.75%, 6/1/12 B2 500 565,000
(1) IMCO Recycling Escrow
Sr. Notes
9.00%, 11/15/14 B3 300 313,500
International Steel Group,
Inc.
Sr. Notes
6.50%, 4/15/14 Ba3 1,000 1,077,500
Ispat Inland ULC
Secured
9.75%, 4/1/14 B3 259 321,160
Metallurg, Inc.
Series B, Gtd.
11.00%, 12/1/07 Ca 571 499,188
(2) WCI Steel, Inc.
Series B, Sr. Notes
10.00%, 12/1/04 N/R 250 202,500
Wise Metals Group LLC
Secured
10.25%, 5/15/12 B2 250 253,750
----------------
GROUP TOTAL 4,371,536
----------------
OIL EQUIPMENT (0.2%)
Parker Drilling Co.
Series B, Gtd.
10.125%, 11/15/09 B2 377 396,321
----------------
PAPER & FOREST PRODUCTS (2.4%)
Appleton Papers, Inc.
Sr. Sub. Notes
9.75%, 6/15/14 B3 350 388,500
Blue Ridge Paper Product,
Inc.
Secured
9.50%, 12/15/08 B2 350 331,625
Caraustar Industries, Inc.
Gtd.
9.875%, 4/1/11 Caa1 434 473,060
Cellu Tissue Holdings, Inc.
Secured
9.75%, 3/15/10 B2 250 260,625
Georgia-Pacific Corp.
Gtd.
9.375%, 2/1/13 Ba2 1,000 1,170,000
Newark Group, Inc.
Sr. Sub. Notes
9.75%, 3/15/14 Caa1 $ 2,000 $ 2,140,000
Stone Container Corp.
Sr. Notes
8.375%, 7/1/12 B2 600 657,000
----------------
GROUP TOTAL 5,420,810
----------------
PUBLISHING (2.0%)
(1) CBD Media Holdings/
CBD Holdings Finance,
Inc.
Sr. Notes
9.25%, 7/15/12 Caa2 500 516,875
Dex Media East LLC
Gtd.
12.125%, 11/15/12 B2 200 244,750
Dex Media, Inc.:
(3) Discount Notes
0.00%, 11/15/13 B3 500 394,375
Notes
8.00%, 11/15/13 B3 250 271,875
Haights Cross
Operating Co.:
Gtd.
11.75%, 8/15/11 Caa1 350 397,250
(1) Sr. Notes
11.75%, 8/15/11 Caa1 100 113,500
Houghton Mifflin Co.:
(3) Sr. Discount Notes
0.00%, 10/15/13 Caa2 250 185,000
Sr. Notes
8.25%, 2/1/11 B3 300 321,000
Liberty Group Publishing,
Inc.
Debentures
11.625%, 2/1/09 Caa2 900 914,625
PRIMEDIA, Inc.
Sr. Notes
8.00%, 5/15/13 B3 350 361,813
(2)(4) Premier Graphics, Inc.
Gtd.
11.50%, 12/1/05 N/R 2,000 0
Sheridan Acquisition Corp.
Secured
10.25%, 8/15/11 B1 300 329,625
(1) WDAC Subsidiary Corp.
Sr. Notes
8.375%, 12/1/14 B2 500 495,625
----------------
GROUP TOTAL 4,546,313
----------------
RESTAURANTS (1.6%)
Buffets, Inc.
Sr. Sub. Notes
11.25%, 7/15/10 B3 500 537,500
(1) Carrols Corp.
Sr. Sub. Notes
9.00%, 1/15/13 B3 150 156,000
(1) Denny's Corp./ Denny's
Holdings, Inc.
Sr. Notes
10.00%, 10/1/12 Caa1 500 540,625

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

El Pollo Loco, Inc.
Secured
9.25%, 12/15/09 B2 $ 250 $ 264,375
Friendly Ice Cream Corp.
Sr. Notes
8.375%, 6/15/12 B2 500 493,125
(1) Landry's Restaurants, Inc.
Sr. Notes
7.50%, 12/15/14 B2 350 349,125
O'Charley's, Inc.
Sr. Sub. Notes
9.00%, 11/1/13 Ba3 400 430,000
(2)(4) Romacorp, Inc.
Sr. Notes
10.50%, 12/31/08 N/R 1,102 722,072
Sbarro, Inc.
Gtd.
11.00%, 9/15/09 Caa2 125 126,875
----------------
GROUP TOTAL 3,619,697
----------------
RETAIL- FOOD & DRUG (0.7%)
(1) Duane Reade, Inc.
Sr. Sub. Notes
9.75%, 8/1/11 Caa1 500 457,500
Great Atlantic & Pacific
Tea Company, Inc.
Sr. Notes
9.125%, 12/15/11 Caa1 400 377,000
(1) Rite Aid Corp.
Notes
6.125%, 12/15/08 Caa1 300 283,500
Roundy's, Inc.
Series B, Gtd.
8.875%, 6/15/12 B2 200 219,500
Stater Brothers Holdings,
Inc.
Sr. Notes
8.125%, 6/15/12 B1 150 159,375
----------------
GROUP TOTAL 1,496,875
----------------
RETAIL STORES (1.4%)
Asbury Automotive
Group Co.
Gtd.
9.00%, 6/15/12 B3 400 422,000
(2)(4) Flooring America, Inc.
Series B, Gtd.
9.25%, 10/15/07 N/R 703 0
Michaels Stores, Inc.
Sr. Notes
9.25%, 7/1/09 Ba1 400 430,628
NBTY, Inc.
Series B, Sr. Sub. Notes
8.625%, 9/15/07 B1 400 408,000
Nebraska Book Co., Inc.
Sr. Sub. Notes
8.625%, 3/15/12 Caa1 500 515,000
Perry Ellis International,
Inc.
Series B, Sr. Sub. Notes
8.875%, 9/15/13 B3 250 263,750
(1) Southern States COOP, Inc.
Sr. Notes
10.50%, 10/15/10 B3 $ 750 $ 772,500
United Auto Group, Inc.
Gtd.
9.625%, 3/15/12 B3 250 277,500
----------------
GROUP TOTAL 3,089,378
----------------
SATELLITE (0.2%)
Echostar DBS Corp.
Sr. Notes
9.125%, 1/15/09 Ba3 195 215,475
(1) PanAMSat Corp.
Gtd.
9.00%, 8/15/14 B2 300 336,375
----------------
GROUP TOTAL 551,850
----------------
SECONDARY OIL & GAS PRODUCERS (1.8%)
(1) Belden & Blake Corp.
Secured
8.75%, 7/15/12 B3 250 255,000
Chesapeake Energy Corp.:
Sr. Notes
6.875%, 1/15/16 Ba3 602 633,605
7.00%, 8/15/14 Ba3 250 267,500
Forest Oil Corp.
Sr. Notes
8.00%, 6/15/08 Ba3 900 997,875
Plains E&P Co.
Sr. Sub. Notes
8.75%, 7/1/12 Ba3 300 336,750
Pogo Producing Co.
Series B, Sr. Sub. Notes
8.25%, 4/15/11 Ba3 550 599,500
Vintage Petroleum, Inc.
Sr. Sub. Notes
7.875%, 5/15/11 B1 700 749,000
Whiting Petroleum Corp.
Sr. Sub. Notes
7.25%, 5/1/12 B2 300 315,000
----------------
GROUP TOTAL 4,154,230
----------------
SERVICES (5.3%)
Advanstar
Communications, Inc.
Secured
10.75%, 8/15/10 B3 400 453,500
(1) Allied Security Escrow
Corp.
Sr. Sub. Notes
11.375%, 7/15/11 Caa1 400 420,000
American Color Graphics,
Inc.
Notes
10.00%, 6/15/10 Caa1 800 679,000
Brand Services, Inc.
Gtd.
12.00%, 10/15/12 B3 600 675,000
Buhrmann U.S., Inc
Sr. Sub. Notes
8.25%, 7/1/14 B2 250 254,063

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

Diamond Triumph Auto
Glass, Inc.
Gtd.
9.25%, 4/1/08 Caa1 $ 500 $ 457,500
Great Lakes Dredge &
Dock Co.
Sr. Sub. Notes
7.75%, 12/15/13 Caa2 850 777,750
IESI Corp.
Gtd.
10.25%, 6/15/12 N/R 500 587,500
(1) Integrated Alarm Services
Group, Inc. Secured
12.00%, 11/15/11 B3 400 422,000
Integrated Electrical
Services, Inc.
Series C, Gtd.
9.375%, 2/1/09 Caa1 625 590,625
Iron Mountain, Inc.:
Gtd.
8.625%, 4/1/13 Caa1 450 480,375
7.75%, 1/15/15 Caa1 250 255,000
La Petite Academy, Inc.
Series B, Gtd.
10.00%, 5/15/08 Ca 1,300 1,163,500
Language Line Holdings,
Inc.
Sr. Sub. Notes
11.125%, 6/15/12 Caa1 250 266,250
Morton's Restaurant
Group, Inc.
Secured
7.50%, 7/1/10 B2 300 294,000
Muzak LLC/Muzak
Finance Corp.:
Gtd.
9.875%, 3/15/09 Caa2 650 457,438
Sr. Notes
10.00%, 2/15/09 Caa1 300 280,875
National Beef Packing Co.
LLC
Sr. Notes
10.50%, 8/1/11 B2 400 422,000
Quintiles Transnational
Corp.
Sr. Sub. Notes
10.00%, 10/1/13 B3 250 281,250
Rent-Way, Inc.
Secured
11.875%, 6/15/10 B3 500 565,625
Salton, Inc.
Sr. Sub. Notes
12.25%, 4/15/08 Ca 750 570,000
United Rentals
North America, Inc.:
Sr. Sub. Notes
7.75%, 11/15/13 B2 800 788,000
7.00%, 2/15/14 B2 1,000 940,000
----------------
GROUP TOTAL 12,081,251
----------------
TECHNOLOGY (2.4%)
AMI Semiconductor, Inc.
Gtd.
10.75%, 2/1/13 B3 $ 136 $ 160,480
(1) Advanced Micro Devices,
Inc.
Sr. Notes
7.75%, 11/1/12 B3 500 523,125
Amkor Technology, Inc.:
Sr. Notes
9.25%, 2/15/08 B3 350 359,625
7.75%, 5/15/13 B3 500 472,500
Ampex Corp.
Secured
12.00%, 8/15/08 N/R 443 443,481
(1) Itron, Inc.
Sr. Sub. Notes
7.75%, 5/15/12 B2 250 255,625
Lucent Technologies, Inc.:
Notes
7.25%, 7/15/06 B2 340 357,000
5.50%, 11/15/08 B2 550 567,875
Sanmina-SCI Corp.
Gtd.
10.375%, 1/15/10 Ba2 800 922,000
Unisys Corp.
Sr. Notes
7.875%, 4/1/08 Ba1 250 257,500
Viasystems, Inc.
Sr. Sub. Notes
10.50%, 1/15/11 Caa2 600 591,000
Xerox Corp.
Sr. Notes
7.625%, 6/15/13 Ba2 550 606,375
----------------
GROUP TOTAL 5,516,586
----------------
TEXTILE/APPAREL/SHOE MANUFACTURING (1.6%)
BGF Industries, Inc.
Series B, Sr. Sub. Notes
10.25%, 1/15/09 Ca 250 241,875
Levi Strauss & Co.:
Notes
7.00%, 11/1/06 Ca 515 543,325
Sr. Notes
12.25%, 12/15/12 Ca 735 821,363
(1) 9.75%, 1/15/15 Ca 850 845,750
Phillips Van-Heusen Corp.
Sr. Notes
7.25%, 2/15/11 B2 400 422,000
(1) Propex Fabrics, Inc.
Sr. Notes
10.00%, 12/1/12 Caa1 500 521,250
Tropical Sportswear
International Corp.
Series A, Gtd.
11.00%, 6/15/08 Ca 700 339,500
----------------
GROUP TOTAL 3,735,063
----------------
TOWERS (0.7%)
American Towers, Inc.
Gtd.
7.25%, 12/1/11 B2 500 532,500

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

Crown Castle
International Corp.
Series B, Sr. Notes
7.50%, 12/1/13 B3 $ 400 $ 432,000
(1) SBA Communication Corp.
Sr. Notes
8.50%, 12/1/12 Caa1 400 410,000
(3) SBA Telecommunications
Corp.
Sr. Discount Notes
0.00%, 12/15/11 B3 300 254,250
----------------
GROUP TOTAL 1,628,750
----------------
TRANSPORTATION (0.2%)
(1)(3) H-Lines Finance Holding
Corp.
Sr. Discount Notes
0.00%, 4/1/13 Caa2 300 217,500
(1) Horizon Lines LLC
Notes
9.00%, 11/1/12 B3 300 324,000
----------------
GROUP TOTAL 541,500
----------------
UTILITIES (3.4%)
AES Corp.:
Sr. Notes
9.50%, 6/1/09 B2 37 41,701
7.75%, 3/1/14 B2 400 436,000
Allegheny Energy Supply
Co., LLC
Notes
7.80%, 3/15/11 B3 400 438,000
Aquila, Inc.
Sr. Notes
7.625%, 11/15/09 B2 400 420,000
CMS Energy Corp.:
Sr. Notes
7.50%, 1/15/09 B1 700 749,000
7.75%, 8/1/10 B1 250 274,687
Calpine Corp.:
(1) Secured
8.50%, 7/15/10 N/R 950 819,375
Sr. Notes
7.75%, 4/15/09 Caa1 800 616,000
(5) Calpine Generating Co.
Secured
7.756%, 4/1/10 B2 800 786,000
Edison Mission Energy
Sr. Notes
7.73%, 6/15/09 B1 500 540,000
(1) Inergy LP
Sr. Notes
6.875%, 12/15/14 B1 250 252,500
Midwest Generation LLC
Secured
8.75%, 5/1/34 B1 400 456,000
(2) Mirant Americas
Generation LLC
Sr. Notes
7.625%, 5/1/06 N/R 500 540,000
(1)(2) Mirant Corp.
Sr. Notes
7.40%, 7/15/04 N/R $ 300 $ 222,000
(1) NRG Energy, Inc.
Secured
8.00%, 12/15/13 B1 400 438,000
Sierra Pacific Resources
Sr. Notes
8.625%, 3/15/14 B2 300 340,500
TNP Enterprises, Inc.
Series B, Sr. Sub. Notes
10.25%, 4/1/10 B2 350 375,375
----------------
GROUP TOTAL 7,745,138
----------------
WIRELESS (3.7%)
Airgate PCS, Inc.
Secured
9.375%, 9/1/09 Caa1 400 433,000
(3) Alamosa PCS Holdings,
Inc.
Gtd.
0.00%, 2/15/10 N/R 800 868,000
American Cellular Corp.
Series B, Sr. Notes
10.00%, 8/1/11 Caa1 500 431,250
Centennial Cellular
Operating Co./
Centennial
Communications Corp.
Gtd.
10.125%, 6/15/13 Caa1 400 451,000
Dobson Communications
Corp.
Sr. Notes
8.875%, 10/1/13 Ca 300 212,250
(1) Horizon PCS, Inc.
Sr. Notes
11.375%, 7/15/12 B3 350 393,750
IPCS Escrow Co.
Sr. Notes
11.50%, 5/1/12 B3 250 285,000
(1)(3) IWO Escrow Co.
Sr. Discount Notes
0.00%, 1/15/15 Caa2 250 156,250
(2) IWO Holdings, Inc.
Gtd.
14.00%, 1/15/11 N/R 550 360,250
Nextel Communications,
Inc.
Sr. Notes
7.375%, 8/1/15 Ba3 250 276,250
Nextel Partners, Inc.
Sr. Notes
8.125%, 7/1/11 B3 750 836,250
Rural Cellular Corp.
Sr. Sub. Notes
9.75%, 1/15/10 Caa2 1,450 1,319,500
Triton PCS, Inc.
Gtd.
8.50%, 6/1/13 Caa1 750 727,500

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

U.S. Unwired, Inc.
Series B, Secured
10.00%, 6/15/12 Caa1 $ 400 $ 453,000
Ubiquitel Operating Co.:
Sr. Notes
9.875%, 3/1/11 Caa1 150 169,125
(1) 9.875%, 3/1/11 Caa1 350 394,625
Western Wireless Corp.
Sr. Notes
9.25%, 7/15/13 Caa1 500 546,250
----------------
GROUP TOTAL 8,313,250
----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $161,100,630) 167,104,989
----------------

SHARES/
UNITS
-----------------------------------------------------------------------------------------------------------------

COMMON STOCKS (0.9%)

BROADCAST/OUTDOOR (0.1%)
(6) Equinix, Inc. 5,567 237,934
----------------
CABLE (0.0%)
(6) Digitalglobe, Inc. 69,987 69,987
----------------
CAPITAL GOODS (0.0%)
(4)(6) Motels of America, Inc. 750 75
----------------
CONTAINERS (0.0%)
(4)(6) Continental AFA Dispensing Co. 20,689 37,240
----------------
FINANCE (0.0%)
(4)(6)(7) Westfed Holdings, Inc.
Class B (acquired 9/20/88, cost $510) 16,893 169
----------------
FOOD PROCESSORS/BEVERAGE/BOTTLING (0.4%)
(6) Crunch Equity Holdings LLC 703 913,722
(1)(4)(6) Specialty Foods Corp. 52,500 525
----------------
GROUP TOTAL 914,247
----------------
INDUSTRIAL (0.1%)
(4)(6) Doskocil Manufacturing Co. 36,000 126,000
----------------
RETAIL- FOOD & DRUG (0.0%)
(4)(6) Archibald Candy Corp. 2,030 0
----------------
RETAIL STORES (0.1%)
(4)(6) Safelite Glass Corp.
Class B 18,064 90,320
(4)(6) Safelite Realty Corp. 1,219 12,190
----------------
GROUP TOTAL 102,510
----------------
SERVICES (0.0%)
(6) Cenveo, Inc. 21,306 66,049
(1)(6) Cenveo, Inc. 10,652 33,021
----------------
GROUP TOTAL 99,070
----------------

SHARES/ VALUE
UNITS (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

TEXTILE/APPAREL/SHOE MANUFACTURING (0.2%)
(6) Safety Components International, Inc. 26,759 $ 370,612
----------------
WIRELESS (0.0%)
(6) Dobson Communications Corp.
Class A 57,927 99,634
----------------
TOTAL COMMON STOCKS
(Cost $2,959,560) 2,057,478
----------------
PREFERRED STOCKS (0.2%)
CABLE (0.0%)
(6) Adelphia Communications Corp.
13% Cum. Exchangeable Series B 7,500 9,375
----------------
FINANCE (0.0%)
(4)(6)(7) Westfed Holdings, Inc.
Class A (acquired 9/20/88-
6/18/93, cost $4,815,472) 57,005 14,251
----------------
RESTAURANTS (0.0%)
(4)(6)(8) AmeriKing, Inc.
13% Cum. Exchangeable 40,375 0
----------------
WIRELESS (0.2%)
Dobson Communications Corp.
6% Conv. preferred 900 58,466
(6)(8) Rural Cellular Corp.
11.375% Sr. Exchangeable 426 331,215
----------------
GROUP TOTAL 389,681
----------------
TOTAL PREFERRED STOCKS
(Cost $6,611,899) 413,307
----------------
WARRANTS (0.1%)
(6) Advanced Glassfiber Yarns
expiring 5/14/10 115 288
(6) Colt Telecom Group Plc
expiring 12/31/06 400 5,778
(1)(6) Dayton Superior Corp.
expiring 6/15/09 1,250 13
(1)(6) Decrane Aircraft Holdings
expiring 9/30/08 800 8
(1)(6) Huntsman Equity Holdings Corp.
expiring 5/15/11 250 117,625
(6) Loral Space & Communications
expiring 12/27/06 6,290 63
(6) Mikohn Gaming Corp.
expiring 8/15/08 3,000 98
(6) NTL, Inc.
expiring 1/13/11 4 16
(4)(6) Pegasus Communications Corp.
expiring 1/1/07 250 3
(1)(6) Pliant Corp.
expiring 6/1/10 747 93
(4)(6) Safelite Glass Corp.:
Class A expiring 9/29/06 44,271 443
Class A expiring 9/29/07 29,514 295

The accompanying notes are an integral part of the financial statements.

SHARES/ VALUE
UNITS (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

(6) Star Choice Communications, Inc.
expiring 12/5/05 16,212 $ 60,889
(4)(6) Windsor Woodmont Black Hawk
expiring 3/15/10 100 0
----------------
TOTAL WARRANTS
(Cost $137,905) 185,612
----------------
TOTAL DOMESTIC SECURITIES
(Cost $170,809,994) 169,761,386
----------------

MOODY'S FACE
RATINGS AMOUNT
(UNAUDITED) (000)
-----------------------------------------------------------------------------------------------------------------

FOREIGN SECURITIES (17.1%)

CORPORATE OBLIGATIONS (7.4%)

AUTOMOBILE MANUFACTURING/VEHICLE PARTS (0.1%)
Bombardier Recreational
Products, Inc.
Sr. Sub. Notes (Canada)
8.375%, 12/15/13 B3 USD $250 268,125
----------------
BROADBAND (0.5%)
Call Net Enterprises, Inc.
Yankee Gtd. (Canada)
10.625%, 12/31/08 Caa3 USD 400 402,000
(1) Global Crossing
Finance plc
Gtd. (United Kingdom)
10.75%, 12/15/14 Caa1 USD 750 744,375
----------------
GROUP TOTAL 1,146,375
----------------
BROADCAST /OUTDOOR (0.1%)
Corus Entertainment, Inc.
Global
Sr. Sub. Notes (Canada)
8.75%, 3/1/12 B1 USD 150 165,375
----------------
BUILDING PRODUCTS (0.1%)
(1)(3) MAAX Holdings, Inc.
Sr. Discount Notes
(Canada)
0.00%, 12/15/12 Caa1 USD 500 316,250
----------------
CABLE (0.8%)
(2) Australis Holdings Pty. Ltd.
Yankee Sr. Secured
Discount Notes (Australia)
15.00%, 11/1/02 N/R USD 4,600 92,000
(1) Kabel Deutschland GmbH
Sr. Notes (Germany)
10.625%, 7/1/14 B2 USD 400 462,000
Rogers Cablesystems, Inc.
Series B, Yankee
Sr. Notes (Canada)
10.00%, 3/15/05 Ba3 USD 250 254,687

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

(1)(3) Telenet Group Holding NV
Discount Notes (Belgium)
0.00%, 6/15/14 Caa2 USD $600 $ 459,000
(1) Videotron LTEE
Sr. Notes. (Canada)
6.875%, 1/15/14 Ba3 USD 600 623,250
----------------
GROUP TOTAL 1,890,937
----------------
CHEMICALS (1.0%)
Acetex Corp.
Global Sr. Notes (Canada)
10.875%, 8/1/09 B2 USD 400 437,000
Avecia Group plc
Global Gtd.
(United Kingdom)
11.00%, 7/1/09 Caa3 USD 750 776,250
(1) BCP Caylux Holdings
Sr. Sub. Notes
(Luxembourg)
9.625%, 6/15/14 B3 USD 400 453,000
Rhodia SA
Sr. Notes (France)
10.25%, 6/1/10 B3 USD 600 678,000
----------------
GROUP TOTAL 2,344,250
----------------
CONTAINERS (0.6%)
Crown Cork & Seal
Finance plc
Yankee Gtd.
(United Kingdom)
7.00%, 12/15/06 B3 USD 300 316,500
Crown Euro Holdings SA
Secured (France)
9.50%, 3/1/11 B1 USD 795 910,275
----------------
GROUP TOTAL 1,226,775
----------------
INDUSTRIAL (0.3%)
(2) International Utility
Structures, Inc.:
Sub. Notes (Canada)
13.00%, 2/1/08 N/R USD 924 4,620
Yankee Sr. Sub. Notes
(Canada)
10.75%, 2/1/08 N/R USD 800 168,000
(1) Magnachip Semiconductor
Sr. Sub. Notes
(South Korea)
8.00%, 12/15/14 B2 USD 400 419,000
----------------
GROUP TOTAL 591,620
----------------
LEISURE (0.3%)
Intrawest Corp.
Sr. Notes (Canada)
7.50%, 10/15/13 B1 USD 250 267,188
(1) NCL Corp.
Sr. Notes (Bermuda)
10.625%, 7/15/14 B2 USD 500 502,500
----------------
GROUP TOTAL 769,688
----------------

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

METALS & MINING (0.1%)
Gerdau Ameristeel Corp.
Sr. Notes (Canada)
10.375%, 7/15/11 Ba3 USD $250 $ 294,375
----------------
PAPER/FOREST PRODUCTS (1.1%)
Abitibi-Consolidated, Inc.
Notes (Canada)
7.75%, 6/15/11 Ba3 USD 250 263,750
(1) Ainsworth Lumber Co.,
Ltd.
Sr. Notes (Canada)
7.25%, 10/1/12 B2 USD 250 255,625
JSG Funding plc
Global Sr. Notes (Ireland)
9.625%, 10/1/12 B3 USD 500 560,000
Norkse Skog Canada Ltd.
Sr. Notes (Canada)
7.375%, 3/1/14 Ba3 USD 250 261,875
Riverside Forest Products
Ltd.
Sr. Notes (Canada)
7.875%, 3/1/14 B2 USD 400 442,000
Tembec Industries, Inc.:
Global Notes, Gtd.
(Canada)
7.75%, 3/15/12 Ba3 USD 250 243,125
Yankee Gtd. (Canada)
8.625%, 6/30/09 Ba3 USD 400 404,000
----------------
GROUP TOTAL 2,430,375
----------------
RETAIL - FOOD & DRUG (0.2%)
(1) Jean Coutu Group (PJC),
Inc.
Sr. Sub. Notes (Canada)
8.50%, 8/1/14 B3 USD 400 412,000
----------------
SECONDARY OIL & GAS PRODUCERS (0.7%)
Paramount Resources Ltd.
Yankee Sr. Notes (Canada)
8.875%, 7/15/14 B3 USD 325 396,500
(1) Petroliam Nasional
Berhad (Petronas)
Bonds (Malaysia)
7.75%, 8/15/15 A2 USD 1,000 1,226,382
----------------
GROUP TOTAL 1,622,882
----------------
TECHNOLOGY (0.4%)
Celestica, Inc.
Sr. Sub. Notes (Canada)
7.875%, 7/1/11 Ba3 USD 300 323,250
(1) Flextronics International
Ltd.
Sr. Sub. Notes (Singapore)
6.25%, 11/15/14 Ba2 USD 250 248,750
Danka Business
Systems plc
Sr. Notes
(United Kingdom)
11.00%, 6/15/10 B3 USD $250 $ 266,250
----------------
GROUP TOTAL 838,250
----------------
TRANSPORTATION (0.8%)
Sea Containers Ltd.
Series B, Yankee Sr. Notes
(Bermuda)
10.75%, 10/15/06 B3 USD 700 736,750
Ship Finance International
Ltd.
Sr. Notes (Bermuda)
8.50%, 12/15/13 B1 USD 750 776,250
(1) Stena AB
Sr. Notes (Sweden)
7.00%, 12/1/16 Ba3 USD 250 248,750
----------------
GROUP TOTAL 1,761,750
----------------
UTILITIES (0.1%)
Calpine Canada Energy
Finance LLC
Gtd. (Canada)
8.50%, 5/1/08 Caa1 USD 317 261,525
----------------
WIRELESS (0.2%)
(1) Millicom International
Cellular S.A.
Sr. Notes (Luxembourg)
10.00%, 12/1/13 B3 USD 500 525,625
----------------
TOTAL CORPORATE OBLIGATIONS
(Cost $19,073,792) 16,866,177
----------------
GOVERNMENT OBLIGATIONS (9.7%)

ARGENTINA (0.2%)
(5) Bocon PRO 1
Bonds
2.67%, 4/1/07 Ca ARP 152 3,397
Republic of Argentina
Series 2031,
Unsubordinated
12.00%, 6/19/31 Ca USD 1,060 352,450
----------------
GROUP TOTAL 355,847
----------------
BRAZIL (3.6%)
Federal Republic of Brazil:
Series 20YR, Bonds
8.00%, 4/15/14 B1 USD 1,916 1,973,386
Series 30YR, Collateralized
3.0625%, 4/15/24 B1 USD 1,680 1,567,754
Series RG, Bonds
2.125%, 4/15/12 B1 USD 1,324 1,268,799
Unsubordinated
11.00%, 8/17/40 B1 USD 2,850 3,385,087
----------------
GROUP TOTAL 8,195,026
----------------

The accompanying notes are an integral part of the financial statements.

MOODY'S FACE
RATINGS AMOUNT VALUE
(UNAUDITED) (000) (NOTE 1-A)
-----------------------------------------------------------------------------------------------------------------

COLOMBIA (0.5%)
Republic of Colombia:
Global Bonds
11.75%, 2/25/20 Ba2 USD $715 $ 922,350
Series EMTN, Notes
11.50%, 5/31/11 Ba2 EUR 150 258,021
----------------
GROUP TOTAL 1,180,371
----------------
PANAMA (0.2%)
Republic of Panama
Bonds
9.375%, 1/16/23 Ba1 USD 375 435,000
----------------
PHILIPPINES (0.6%)
Republic of Philippines
Bonds
8.375%, 2/15/11 Ba2 USD 1,315 1,319,931
----------------
RUSSIA (2.7%)
Ministry Finance of Russia:
Series V, Debentures
3.00%, 5/14/08 Ba2 USD 4,255 3,966,086
Series VI, Debentures
3.00%, 5/14/06 Ba1 USD 180 176,778
(3) Russian Federation
Series REGS,
Unsubordinated
5.00%, 3/31/30 Baa3 USD 2,030 2,101,862
----------------
GROUP TOTAL 6,244,726
----------------
TURKEY (0.9%)
Republic of Turkey:
Notes
11.50%, 1/23/12 B1 USD 405 522,450
Sr. Unsubordinated Notes
11.875%, 1/15/30 B1 USD 1,000 1,445,000
----------------
GROUP TOTAL 1,967,450
----------------
UKRAINE (0.2%)
Ukraine Government
Bonds
7.65%, 6/11/13 B1 USD 500 535,000
----------------
VENEZUELA (0.8%)
Republic of Venezuela:
Bonds
9.25%, 9/15/27 B2 USD 650 687,375
Notes
8.50%, 10/8/14 B2 USD 500 531,250
Sr. Unsubordinated Notes
11.00%, 3/5/08 B2 EUR 360 573,299
----------------
GROUP TOTAL 1,791,924
----------------
TOTAL GOVERNMENT OBLIGATIONS
(Cost $20,382,980) 22,025,275
----------------
TOTAL FOREIGN SECURITIES
(Cost $39,456,772) 38,891,452
----------------
TIME DEPOSIT (5.8%)
HSBC Bank USA
(Grand Cayman)
1.37%, 1/03/05
(Cost $13,345,000) $ 13,345,000
----------------
TOTAL INVESTMENTS (97.6%)
(Cost $223,611,766) 221,997,838
----------------
OTHER ASSETS IN EXCESS OF LIABILITIES (2.4%)
5,376,096
----------------
NET ASSETS (100%)
Applicable to 49,895,588 issued and outstanding
$.001 par value shares (authorized 100,000,000
shares) $ 227,373,934
================

N/R--Not Rated
ARP--Argentine Peso
EUR--Euro Dollar
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
2004, these securities amounted to was $39,102,142 or 17.20% of net assets.
(2) Defaulted security.
(3) Step Bond--The interest stated is as of December 31, 2004 and will reset at
a future date.
(4) Not readily marketable; securities are valued at fair value as determined
in good faith by, or under the direction of, the Board of Directors.
(5) Floating Rate--The interest rate changes on these instruments based upon a
designated base rate. The rates shown are those in effect at December 31,
2004.
(6) Non-income producing security.
(7) Restricted as to private and public resale. Total cost of restricted
securities at December 31, 2004 aggregated $4,815,982. Total market value
of restricted securities owned at December 31, 2004 was $14,420 or 0.01% of
net assets.
(8) Payment-in-kind preferred stock. Market value includes accrued dividend.

The accompanying notes are an integral part of the financial statements.

STATEMENT OF ASSETS AND LIABILITIES

DECEMBER 31, 2004
---------------------------------------------------------------------------------

ASSETS:
Investments at Value
(Cost $223,611,766) (Note 1-A) $ 221,997,838
Foreign Cash at Value
(Cost $1,551,073) 1,561,411
Receivables:
Receivable for Investments Sold 9,799
Interest Receivable (Note 1-B) 4,394,528
Other Assets 11,091
---------------------------------------------------------------------------------
Total Assets 227,974,667
---------------------------------------------------------------------------------
LIABILITIES:
Investments Purchased 147,715
Unrealized Depreciation on Forward
Foreign Currency Transaction
(Note 1-I) 37,740
Investment Advisory Fees (Note 2) 278,333
Shareholders' Reports 68,358
Custodian Fees 20,378
Administrative Fees (Note 2) 19,579
Shareholders' Servicing Fees 12,462
Audit Fees 10,000
Legal Fees 4,003
Other Liabilities 2,165
---------------------------------------------------------------------------------
Total Liabilities 600,733
---------------------------------------------------------------------------------
NET ASSETS $ 227,373,934
=================
NET ASSETS CONSIST OF:
Capital Shares at $.001 Par Value $ 49,896
Capital Paid in Excess of Par Value 390,430,990
Distributions in Excess of Net
Investment Income (3,889,740)
Accumulated Net Realized Loss on
Investments and Foreign Currency
Transactions (157,580,865)
Unrealized Depreciation on
Investments, Foreign Currency
Translations (1,636,347)
---------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO 49,895,588 ISSUED
AND OUTSTANDING SHARES (AUTHORIZED
100,000,000 SHARES) $ 227,373,934
=================
NET ASSET VALUE PER SHARE $ 4.56
MARKET PRICE PER SHARE $ 4.45
=================================================================================

STATEMENT OF OPERATIONS

YEAR ENDED
DECEMBER 31, 2004
---------------------------------------------------------------------------------

INVESTMENT INCOME:
Interest (Net of foreign taxes withheld
of $3,818) (Note 1-B) $ 19,410,109
Dividends (Note 1-B) 9,435
---------------------------------------------------------------------------------
Total Income 19,419,544
---------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees (Note 2) 1,080,394
Custodian Fees 120,774
Administrative Fees (Note 2) 108,039
Shareholders' Reports 103,897
Directors' Fees and Expenses 67,856
Shareholders' Servicing Fees 65,671
Legal Fees 49,950
Audit Fees 44,650
NYSE Fees 39,105
Insurance 25,382
Miscellaneous 13,254
---------------------------------------------------------------------------------
Total Expenses 1,718,972
---------------------------------------------------------------------------------
Net Investment Income 17,700,572
---------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) FROM INVESTMENTS
AND FOREIGN CURRENCY RELATED ITEMS
Net realized gain from investments 2,566,562
Net realized gain on foreign currency
transactions (Note 1-B) 453,423
Net change in unrealized appreciation
(depreciation) from investments 7,561,550
Net change in unrealized appreciation
(depreciation) from foreign
currency translations (Note 1-B) 184,469
---------------------------------------------------------------------------------
Net Realized Gain and Change in
Unrealized Appreciation 10,766,004
---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 28,466,576
=================================================================================

The accompanying notes are an integral part of the financial statements.

STATEMENT OF CHANGES IN NET ASSETS

YEAR ENDED DECEMBER 31,
------------------------------
2004 2003
---------------------------------------------------------------------------------------------------------------------------------

INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income $ 17,700,572 $ 18,352,767
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions 3,019,985 (5,436,579)
Change in Unrealized Appreciation of Investments and Foreign Currency Translations 7,746,019 34,311,753
---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 28,466,576 47,227,941
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income (20,005,808) (21,280,026)
Return of Capital (950,339) (1,173,023)
---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (20,956,147) (22,453,049)
---------------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 7,510,429 24,774,892
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 219,863,505 195,088,613
---------------------------------------------------------------------------------------------------------------------------------
End of Period (Including distributions in excess of net investment income of (3,889,740) and
($4,068,815), respectively.) $ 227,373,934 $ 219,863,505
=================================================================================================================================

The accompanying notes are an integral part of the financial statements.

FINANCIAL HIGHLIGHTS

YEAR ENDED DECEMBER 31,
---------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 2004 2003 2002 2001(2) 2000
------------------------------------------------------------------------------------------------------------------------

NET ASSET VALUE, BEGINNING OF YEAR $ 4.41 $ 3.91 $ 4.74 $ 5.70 $ 7.34
------------------------------------------------------------------------------------------------------------------------
Offering Costs -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income 0.35 0.37 0.42 0.61+ 0.67
Net Realized and Unrealized Gain (Loss)
on Investments and Futures Contracts 0.22 0.58 (0.55) (0.85) (1.55)
------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.57 0.95 (0.13) (0.24) (0.88)
------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income (0.40) (0.43) (0.62) (0.72) (0.76)
Return of Capital (0.02) (0.02) (0.08) -- --
------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.42) (0.45) (0.70) (0.72) (0.76)
------------------------------------------------------------------------------------------------------------------------
Decrease in Net Asset Value due to Shares
Issued through Rights Offering -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 4.56 $ 4.41 $ 3.91 $ 4.74 $ 5.70
========================================================================================================================
PER SHARE MARKET VALUE, END OF YEAR $ 4.45 $ 4.50 $ 3.88 $ 4.98 $ 5.56
========================================================================================================================
TOTAL INVESTMENT RETURN:
Net Asset Value (1) 13.55% 24.59% (5.26)% (6.04)% (12.37)%
Market Value 8.60% 28.11% (10.52)% 1.15% 3.55%
========================================================================================================================
RATIOS AND SUPPLEMENTAL DATA:

Net Assets, End of Year (Thousands) $ 227,374 $ 219,864 $ 195,089 $ 236,652 $ 197,817
Ratio of Expenses to Average Net Assets
Including Expense Offsets 0.78% 0.78% 0.79% 1.07% 0.78%
Ratio of Expenses to Average Net Assets 0.78% 0.78% 0.79% 1.07% 0.78%
Ratio of Net Investment Income to Average
Net Assets 8.08% 8.83% 9.93% 11.66% 10.10%
Portfolio Turnover Rate 57.8% 77.8% 61.1% 50.1%(3) 39.1%
------------------------------------------------------------------------------------------------------------------------

YEAR ENDED DECEMBER 31,
---------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995^
------------------------------------------------------------------------------------------------------------------------

NET ASSET VALUE, BEGINNING OF YEAR $ 7.77 $ 8.44 $ 8.12 $ 8.63 $ 8.05
------------------------------------------------------------------------------------------------------------------------
Offering Costs -- -- -- (0.02) --
------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income 0.75 0.71 0.69 0.75 0.86
Net Realized and Unrealized Gain (Loss)
on Investments and Futures Contracts (0.46) (0.66) 0.39 0.18 0.48
------------------------------------------------------------------------------------------------------------------------
Total from Investment Activities 0.29 0.05 1.08 0.93 1.34
------------------------------------------------------------------------------------------------------------------------
Distributions:
Net Investment Income (0.72) (0.72) (0.76) (0.90) (0.76)
Return of Capital -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.72) (0.72) (0.76) (0.90) (0.76)
------------------------------------------------------------------------------------------------------------------------
Decrease in Net Asset Value due to Shares
Issued through Rights Offering -- -- -- (0.52) --
------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF YEAR $ 7.34 $ 7.77 $ 8.44 $ 8.12 $ 8.63
========================================================================================================================
PER SHARE MARKET VALUE, END OF YEAR $ 6.06 $ 7.56 $ 8.75 $ 7.63 $ 7.88
========================================================================================================================
TOTAL INVESTMENT RETURN:
Net Asset Value (1) 4.50% 0.47% 14.03% 10.59%* 17.41%
Market Value (11.32)% (5.68)% 25.90% 10.05%* 24.34%
========================================================================================================================
RATIOS AND SUPPLEMENTAL DATA:

Net Assets, End of Year (Thousands) $ 254,857 $ 269,507 $ 291,959 $ 280,634 $ 210,441
Ratio of Expenses to Average Net Assets
Including Expense Offsets 0.78% 0.81% 0.84% 0.94% --
Ratio of Expenses to Average Net Assets 0.78% 0.81% 0.84% 0.95% 0.92%
Ratio of Net Investment Income to Average
Net Assets 9.90% 8.59% 8.47% 9.23% 10.22%
Portfolio Turnover Rate 43.5% 84.7% 97.7% 81.0% 44.1%
------------------------------------------------------------------------------------------------------------------------

^ Credit Suisse Asset Management, LLC, formerly known as BEA Associates
replaced CS First Boston Investment Management as the Fund's investment
adviser effective June 13, 1995.
* Adjusted for Rights Offering.
+ Calculated using the average share method.
(1) Total investment return based on per share net asset value reflects the
effects of change in net asset value on the performance of the Fund during
each year, and assumes dividends and capital gains distributions, if any,
were reinvested. These percentages are not an indication of the performance
of a shareholder's investment in the Fund based on market value, due to
differences between the market price of the stock and the net asset value
of the Fund.
(2) As required, effective January 1, 2001 the Fund has adopted provisions of
AICPA Audit and Accounting Guide for Investment Companies and has begun
amortizing premium on debt securities. The effect of this change for the
year ended December 31, 2001 was a decrease to net investment income per
share by $0.004 and an increase to net realized and unrealized gains and
losses per share by $0.004 and a decrease to the net ratio of net
investment income to average net assets from 11.73% to 11.66%. Per share
ratios and supplemental data for prior periods have not been restated to
reflect this change.
(3) Due to the realignment of the Fund's portfolio in connection with the
combination with Credit Suisse Strategic Global Income Fund, Inc., the cost
of purchases of $30,040,944 and proceeds from sales of $37,801,151 have
been excluded from the Portfolio Turnover calculation.

Note: Current Year permanent book-tax differences, if any, are not included
in the calculation of net investment income per share.

The accompanying notes are an integral part of the financial statements.

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Credit Suisse Asset Management Income Fund, Inc. (the "Fund") was incorporated
on February 11, 1987 and is registered as a diversified, closed-end investment
company under the Investment Company Act of 1940, as amended. The Fund's
investment objective is to seek current income through investment primarily in
debt securities.

On May 14, 2001, the Fund acquired substantially all of the assets and assumed
the liabilities of Credit Suisse Asset Management Strategic Global Income Fund,
Inc. ("CGF"). Pursuant to the terms of the agreement governing the acquisition,
the CGF shareholders, for each share of common stock of CGF held, became
entitled to receive an equivalent dollar amount of full shares of common stock
of the Fund. Based on the net asset values of the Fund and CGF as of May 11,
2001 ($5.49 and $6.96, respectively), the conversion ratio was 1.2681 shares of
the Fund for each share of CGF. Cash was paid in lieu of fractional shares. Net
assets of the Fund and CGF as of the acquisition date were $190,522,544 and
$83,383,448, including unrealized depreciation of $71,252,968 and $16,668,823,
respectively. Total net assets immediately after the acquisition were
$273,905,992. Based upon the opinion of Fund counsel, the acquisition qualified
as a tax-free reorganization for Federal income tax purposes, with no gain or
loss recognized by the Fund, CGF or their shareholders.

A. SECURITY VALUATION: The net asset value of the Fund is determined daily as of
the close of regular trading on the New York Stock Exchange, Inc. (the
"Exchange") on each day the Exchange is open for business. Debt securities with
a remaining maturity greater then 60 days are valued in accordance with the
price supplied by a pricing service, which may use a matrix, formula or other
objective method that takes into consideration market indices, yield curves and
other specific adjustments. Debt obligations that will mature in 60 days or less
are valued on the basis of amortized cost, which approximates market value,
unless it is determined that using this method would not represent fair value.
The Fund's equity investments are valued at market value, which is generally
determined using the closing price on the exchange or market on which the
security is primarily traded at the time of valuation ("Valuation Time"). If no
sales are reported, equity investments are generally valued at the most recent
bid quotation as of the Valuation Time or at the lowest asked quotation in the
case of a short sale of securities. Securities and other assets for which market
quotations are not readily available, or whose values have been materially
affected by events occurring before the Fund's Valuation Time but after the
close of the securities' primary markets, are valued at fair value as determined
in good faith by, or under the direction of, the Board of Directors under
procedures established by the Board of Directors.

The Fund may invest up to 10% of its total assets in securities which are not
readily marketable, including those which are restricted as to disposition under
securities law ("restricted securities") (excludes 144A securities). These
securities are valued pursuant to the valuation procedures noted above.

B. SECURITY TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
accounted for on a trade date basis. Interest income is accrued as earned. The
Fund amortizes premium and accretes discount using the effective yield method.
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. Discount or premium
on mortgage backed securities are recorded upon receipt of principal payments on
the underlying mortgage pools.

C. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment
income are declared and paid monthly. 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 gains distributions are
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles in the United States of America
("GAAP").

D. FEDERAL INCOME TAXES: No provision is made for federal taxes as it is the
Fund's intention to continue to qualify for and elect the tax treatment
applicable to regulated investment companies under the Internal Revenue Code of
1986, as amended, and to make the requisite distributions to its shareholders
which will be sufficient to relieve it from federal income and excise taxes.

E. USE OF ESTIMATES: The preparation of financial statements in conformity with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.

F. SHORT-TERM INVESTMENTS: The Fund, together with other funds/portfolios
advised by Credit Suisse Asset Management, LLC ("CSAM"), an indirect
wholly-owned subsidiary of Credit Suisse Group, sweeps available cash into
either a short-term variable rate time deposit issued by Brown Brothers Harriman
& Co. ("BBH&Co."), the Fund's custodian, Grand Cayman branch or with other
client approved, and highly rated banks. The short-term time deposit is a
variable rate account classified as a short-term investment.

G. DELAYED DELIVERY COMMITMENTS: The Fund may purchase or sell securities on a
when-issued or forward commitment basis. Payment and delivery may take place a
month or more after the date of the transaction. The price of the underlying
securities and the date when the securities will be delivered and paid for are
fixed at the time the transaction is negotiated.

H. FUTURES CONTRACTS: The Fund may enter into futures contracts to the extent
permitted by its investment policies and objectives. Upon entering into a
futures contract, the Fund is required to deposit cash or pledge U.S. Government
securities as initial margin. Subsequent payments, which are dependent on the
daily fluctuations in the value of the underlying instrument, are made or
received by the Fund each day (daily variation margin) and are recorded as
unrealized gains or losses until the contracts are closed. When the contracts
are closed, the Fund records a realized gain or loss equal to the difference
between the proceeds from (or cost of) the closing transactions and the Fund's
basis in the contracts. Risks of entering into futures contracts for hedging
purposes include the possibility that a change in the value of the contracts may
not correlate with the changes in the value of the underlying instruments. In
addition, the purchase of futures contracts involves the risk that the Fund
could lose more than the original margin deposit and subsequent payments
required for a futures transaction. At December 31, 2004, the Fund had no open
futures contracts.

I. FORWARD FOREIGN CURRENCY CONTRACTS: The Fund may enter into forward foreign
currency contracts for the purchase or sale of a specific foreign currency at a
fixed price on a future date. Risks may arise upon entering into these contracts
from the potential inability of counterparties to meet the terms of their
contracts and from unanticipated movements in the value of a foreign currency.
The Fund will enter into forward foreign currency contracts primarily for
hedging purposes. Forward foreign currency contracts are adjusted by the daily
exchange rate of the underlying currency and any gains or losses are recorded
for financial statement purposes as unrealized until the contract settlement
date, or an offsetting position is entered into. At December 31, 2004, the Fund
had the following open forward foreign currency contract:

FORWARD FOREIGN
FOREIGN CURRENCY
CURRENCY EXPIRATION TO BE CONTRACT CONTRACT UNREALIZED
CONTRACT DATE SOLD AMOUNT VALUE LOSS
---------------------- ---------- ------------------ ------------ ------------ -----------

European Economic
Unit 3/16/05 EURO (1,699,438) $ 2,274,188 $ 2,311,928 $ (37,740)

J. OTHER: The Fund may invest in securities of foreign countries and governments
which involve certain risks in addition to those inherent in domestic
investments. Such risks generally include, among others currency risks
(fluctuations in currency exchange rates), information risk (key information may
be inaccurate or unavailable) and political risk (expropriation, nationalization
or the imposition of capital or currency controls or punitive taxes). Other
risks of investing in foreign securities include liquidity and valuation risks.

The Fund may be subject to taxes imposed by countries in which it invests with
respect to its investments in issuers existing or operating in such countries.
Such taxes are generally based on income earned or repatriated and capital gains
realized on the sale of such investments. The Fund accrues such taxes when the
related income or gains are earned.

The Fund's investments in securities of issuers located in less developed
countries considered to be "emerging markets" involve risks in addition to those
generally applicable to foreign securities. Focusing on emerging (less
developed) markets involves higher levels of risk, including increased currency,
information, liquidity, market, political and valuation risks. Deficiencies in
regulatory oversight, market infrastructure, shareholder protections and company
laws could expose the Fund to operational and other risks as well. Some
countries may have restrictions that could limit the Fund's access to attractive
investment opportunities. Additionally, emerging markets often face serious
economic problems (such as high external debt, inflation and unemployment) that
could subject the portfolio to increased volatility or substantial declines in
value.

Lower-rated debt securities (commonly known as "junk bonds") possess speculative
characteristics and are subject to greater market fluctuations and risk of lost
income and principal than higher-rated debt securities for a variety of reasons.
Also, during an economic downturn or substantial

period of rising interest rates, highly leveraged issuers may experience
financial stress which would adversely effect their ability to service their
principal and interest payment obligations, to meet projected business goals and
to obtain additional financing.

In addition, periods of economic uncertainty and changes can be expected to
result in increased volatility of market prices of lower-rated debt securities
and (to the extent a Fund invests in junk bonds) the Fund's net asset value.

NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
CSAM serves as investment adviser for the Fund. For its investment advisory
services, CSAM is entitled to receive a fee from the Fund at a computed weekly
and paid quarterly rate as follows: 0.50% of the lower of the weekly stock price
(market value) of the Fund's outstanding shares or its average weekly net
assets.

For the year ended December 31, 2004, investment advisory fees earned were
$1,080,394.

BBH&Co., provides administrative and custodial services to the Fund. Under the
Administration and Custody Agreements, BBH&Co. is paid a fee based on average
net assets.

For the year ended December 31, 2004, BBH&Co. earned administrative service fees
(including out-of-pocket expenses) of $108,039.

Fleet National Bank provides transfer agent services to the Fund. Under the
Transfer Agent Agreement, Fleet National Bank is paid a fee based on the number
of accounts in the Fund per year. In addition, the Fund is charged certain
out-of-pocket expenses by Fleet National Bank.

Merrill Corporation ("Merrill"), an affiliate of CSAM, has been engaged by the
Fund to provide certain financial printing services. For the year ended December
31, 2004, Merrill was paid $52,865 for its services to the Fund.

NOTE 3. LINE OF CREDIT
The Fund, together with other funds/portfolios advised by CSAM (collectively,
the "Participating Funds"), participates in a $75 million committed, unsecured
line of credit facility ("Credit Facility") with Deutsche Bank, A.G. as
administrative agent and syndication agent and State Street Bank and Trust
Company as operations agent for temporary or emergency purposes. Under the terms
of the Credit Facility, the Participating Funds pay an aggregate commitment fee
at a rate of 0.10% per annum on the average unused amount of the Credit
Facility, which is allocated among the Participating Funds in such manner as is
determined by the governing Boards of the Participating Funds. In addition, the
Participating Funds pay interest on borrowings at the Federal Funds rate plus
0.50%. At December 31, 2004 and during the year ended December 31, 2004, the
Fund had no borrowings under the Credit Facility.

NOTE 4. PURCHASES AND SALES OF SECURITIES
For the year ended December 31, 2004, there were no transactions in U.S.
Government and Agency Obligations. Purchases and sales of investment securities
(excluding short-term investments) were as follows:

INVESTMENT SECURITIES
---------------------

Purchases $ 122,790,631
Sales 138,838,759

NOTE 5. FEDERAL INCOME TAXES
Income and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP. These differences are
primarily due to differing treatments of foreign currency transactions, interest
accrual from defaulted bonds, losses deferred due to wash sales and Post-October
losses.

The tax characteristics of dividends paid during the year ended December 31,
2004 and the year ended December 31, 2003, respectively, for the Fund were as
follows:

ORDINARY INCOME RETURN OF CAPITAL
-------------------------------- ---------------------------
2004 2003 2004 2003
--------------- -------------- ----------- -------------

$ 20,005,808 $ 21,280,026 $ 950,339 $ 1,173,023

At December 31, 2004, the components of distributable earnings on a tax basis
for the Fund were as follows:

Undistributed Income Other $ (3,889,740)*
Accumulated Capital and other losses (157,391,053)
Unrealized appreciation (depreciation) (1,826,160)**
----------------
$ (163,106,953)
----------------

* Other Book/Tax temporary differences are attributable primarily to the
mark-to-market of Forward Currency Contracts and the accrual of defaulted
interest on bonds.

** The difference between Book-basis and Tax-basis unrealized depreciation
is attributable primarily to the Tax deferral of losses on wash sales.

At December 31, 2004, the Fund had capital loss carryforwards available to
offset possible future capital gains as follows:

EXPIRES DECEMBER 31,
---------------------------------------------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012
------------ ------------ ------------ ------------- ------------- ------------- ------------

$ 3,565,110 $ 9,512,339 $ 2,335,946 $ 50,358,903 $ 72,148,258 $ 18,379,472 $ 1,091,025

At December 31, 2004, the identified cost for federal income tax purposes, as
well as the gross unrealized appreciation from investments for those securities
having an excess of value over cost, gross unrealized depreciation from
investments for those securities having an excess of cost over value and the net
unrealized appreciation (depreciation) from investments were as follows;
$223,801,579, 18,047,399, (19,851,140) and $(1,803,741), respectively.

At December 31, 2004, the Fund reclassified $3,434,650 from accumulated
undistributed net investment income and $(2,389,770) from accumulated net
realized loss to paid in capital, to adjust for permanent book/tax treatments of
foreign currency transactions, interest accrual from defaulted bonds sold and
return of capital. Net assets were not affected by these reclassifications.

NOTE 6. OTHER
The Fund issued to its shareholders of record as of the close of business on
September 27, 1996, transferable Rights to subscribe for up to an aggregate of
10,160,570 shares of Common Stock of the Fund at a rate of one share of Common
Stock for three Rights held at the subscription price of $7.15 per share. During
October 1996, the Fund issued a total of 10,160,570 shares of Common Stock on
exercise of such Rights. Rights' offering costs of $550,000 were charged
directly against the proceeds of the Offering.

NOTE 7. CONTINGENCIES
In the normal course of business, the Fund may provide general indemnifications
pursuant to certain contacts and organizational documents. The Fund's maximum
exposure under these arrangements is dependent on future claims that may be made
against the Fund and, therefore, cannot be estimated; however, based on
experience, the risk of loss from such claims is considered remote.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of
Credit Suisse Asset Management Income 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 Credit Suisse Asset Management
Income Fund, Inc. (the "Fund") at December 31, 2004, 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 the financial highlights for each of
the ten years in the period then ended, 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 the standards of the
Public Company Accounting Oversight Board (United States). Those standards
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 December 31, 2004 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania
February 18, 2005

DESCRIPTION OF INVESTLINK(SM) PROGRAM (UNAUDITED)

The InvestLink(SM) Program is sponsored and administered by Fleet National Bank,
not by Credit Suisse Asset Management Income Fund, Inc., (the "Fund"). Fleet
National Bank 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.

Fleet National Bank, 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 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 judgment and research.

While the Program Administrator hopes to continue the Program indefinitely, the
Program Administrator reserves the right to suspend or terminate the Program at
any time. It also reserves the right to make modifications to the Program.
Participants will be notified of any such suspension, termination or
modification in accordance with the terms and conditions of the Program. The
Program Administrator also reserves the right to terminate any participant's
participation in the Program at any time. Any question of interpretation arising
under the Program will be determined in good faith by the Program Administrator
and any such good faith determination will be final.

Any interested investor may participate in the Program. To participate in the
Program, an investor who is not already a registered owner of the Shares must
make an initial investment of at least $250.00. All other cash payments or bank
account deductions must be at least $100.00, up to a maximum of $100,000.00
annually. An interested investor may join the Program by reading the Program
description, completing and signing the enrollment form and returning it to the
Program Administrator. The enrollment form and information relating to the
Program (including terms and conditions) may be obtained by calling the Program
Administrator at one of the following telephone numbers: First Time Investors
(888) 697-8026. Current Shareholders (800) 730-6001. All correspondence
regarding the Program should be directed to: Fleet National Bank, InvestLink
Program, P.O. 43010, Providence, RI 02940-3010.

INFORMATION CONCERNING DIRECTORS AND OFFICERS (UNAUDITED)

NUMBER OF
PORTFOLIOS IN
POSITION(S) TERM OF OFFICE FUND COMPLEX
NAME, ADDRESS AND HELD AND LENGTH PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
DATE OF BIRTH WITH FUND OF TIME SERVED DURING PAST FIVE YEARS DIRECTOR HELD BY DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------

INDEPENDENT DIRECTORS

Enrique R. Arzac Director, Since 1990; Professor of Finance and 8 Director of The Adams
Columbia University Nominating current term Economics, Graduate Express Company (a
Graduate School of Committee ends at the 2007 School of Business, closed-end investment
Business Chairman and annual meeting Columbia University company); Director of
New York, New York Audit Committee since 1971. Petroleum and Resources
10027 Member Corporation (a closed-end
Date of Birth: 02/10/41 investment company.)

Lawrence J. Fox Director, Since 1990; Partner of Drinker 3 Director, Winthrop Trust
One Logan Square Nominating current term Biddle & Reath (law firm) Company.
18th & Cherry Streets Committee ends at the 2006 since 1972.
Philadelphia, Member and annual meeting
Pennsylvania 19103 Audit Committee
Date of Birth: 07/17/43 Chairman

James S. Pasman, Jr. Director, Since Fund Currently retired. 42 Director of Education
c/o Credit Suisse Asset Nominating Inception; Management Corp.
Management, LLC and Audit current term
466 Lexington Avenue Committee ends at the 2005
New York, New York Member annual meeting
10017-3140
Date of Birth: 12/20/30

INTERESTED DIRECTORS(1)

Michael E. Kenneally Director, Since 2004; Chairman and Global 44 None
Credit Suisse Asset Chairman of Current term Chief Executive Officer of
Management, LLC the Board and ends at the 2006 CSAM since 2003;
466 Lexington Avenue Chief Executive annual meeting Chairman and Chief
New York, New York Officer Investment Officer of
10017-3140 Banc of America Capital
Date of Birth: 03/30/54 Management from 1998 to
March 2003.

William W. Priest, Jr. Director Since 1997; Chief Executive Officer of 47 Director of Globe
c/o Epoch Investment current term J Net Enterprises, Inc. Wireless, LLC (maritime
Partners ends at the 2005 (technology holding communications company);
667 Madison Avenue annual meeting company) since June 2004; Director of InfraRed X
New York, New York Chief Executive Officer of (medical device company);
10021 Epoch Investment Director of J Net
Date of Birth: 09/24/41 Partners, Inc. since Enterprises, Inc.
April 2004; Co-Managing
Partner, Steinberg Priest &
Sloane Capital Management,
LLC since March 2001 to
March 2004; Chairman and
Managing Director of CSAM
from 2000 to February 2001;
Chief Executive Officer and
Managing Director of CSAM
from 1990 to 2000.

POSITION(S) TERM OF OFFICE
NAME, ADDRESS AND HELD AND LENGTH PRINCIPAL OCCUPATION(S)
DATE OF BIRTH WITH FUND OF TIME SERVED DURING PAST FIVE YEARS
--------------------------------------------------------------------------------------------------------------------------------

OFFICERS(2)

Richard J. Lindquist President and Since 1996 Managing Director of CSAM; Associated with CSAM since 1995; Officer
Credit Suisse Asset Chief of other Credit Suisse Funds.
Management, LLC Investment
466 Lexington Avenue Officer
New York, New York
10017-3140
Date of Birth: 06/22/60

Michael A. Pignataro Chief Since 1995 Director and Director of Fund Administration of CSAM; Associated
Credit Suisse Asset Financial with CSAM since 1984; Officer of other Credit Suisse Funds.
Management, LLC Officer, Vice
466 Lexington Avenue President and
New York, New York Secretary
10017-3140
Date of Birth: 11/15/59

Emidio Morizio Chief Since 2004 Director and Global Head of Compliance of CSAM; Associated with
Credit Suisse Asset Compliance CSAM since July 2000; Vice President and Director of Compliance
Management, LLC Officer of Forstmann-Leff Associates from 1998 to June 2000; Officer of
466 Lexington Avenue other Credit Suisse Funds.
New York, New York
10017-3140
Date of Birth: 09/21/66

Ajay Mehra Chief Legal Since 2004 Director and Deputy General Counsel of CSAM since September 2004;
Credit Suisse Asset Officer Senior Associate of Shearman & Sterling LLP from September 2000 to
Management, LLC September 2004; Senior Counsel of the SEC Division of Investment
466 Lexington Avenue Management from June 1997 to September 2000; Officer of other Credit
New York, New York Suisse Funds.
10017-3140
Date of Birth: 08/14/70

J. Kevin Gao Senior Vice Since 2004 Vice President and legal counsel of CSAM; Associated with CSAM since
Credit Suisse Asset President July 2003; Associated with the law firm of Willkie Farr & Gallagher
Management, LLC LLP from 1998 to 2003; Officer of the other Credit Suisse Funds.
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 10/13/67

Robert M. Rizza Treasurer Since 1999 Assistant Vice President of CSAM; Associated with CSAM since 1998;
Credit Suisse Asset Officer of other Credit Suisse Funds.
Management, LLC
466 Lexington Avenue
New York, New York
10017-3140
Date of Birth: 12/09/65

(1) Designates a director who is an "interested person" of the Fund as defined
under the Investment Company Act of 1940, as amended. Mr. Priest is an
interested person of the Fund because, up to December 31, 2002, he was
retained by CSAM to provide consulting services.

(2) The officers of the Fund shown are officers that make policy decisions.

ANNUAL CERTIFICATIONS (UNAUDITED)

The Fund's Chief Executive Officer has filed an annual certification with the
NYSE that, as of the date of the certification, he was unaware of any violation
by the Fund of the NYSE's corporate governance listing standards. The Fund's
Chief Executive Officer and Chief Financial Officer have also filed
certifications with the SEC as part of the Fund's Form N-CSR filings that cover
certain public disclosure documents of the Fund, including its annual and
semi-annual reports to stockholders.

ADDITIONAL FEDERAL TAX INFORMATION (UNAUDITED)

The percentage of ordinary income dividends paid by the Fund during the year
ended December 31, 2004, which qualify for the Dividends Received Deduction
available to corporate shareholders was 0.02%.

In January, 2005, the Fund will report on Form 1099 the tax status of all
distributions made during the calendar year 2004. Shareholders should use the
information on Form 1099 for their tax income returns.

Please consult your Tax Advisor if you have any questions concerning the above
information.

PROXY POLICY AND PORTFOLIO HOLDINGS INFORMATION (UNAUDITED)

Information regarding how the Credit Suisse Asset Management Income Fund, Inc.
(the "Fund") voted proxies related to its portfolio securities during the
12-month period ended June 30, 2004, as well as the policies and procedures that
the Fund uses to determine how to vote proxies relating to its portfolio
securities are available:

- By calling 1-800-293-1232
- On the Fund's website, www.csam.com/us
- On the website of the Securities and Exchange Commission, http://www.sec.gov

The Fund files a complete schedule of its portfolio holdings for the first and
third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms N-Q
are available on the SEC's website at http:/www.sec.gov and may be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. Information on the
operation of the SEC's Public Reference Room may be obtained by calling
1-800-SEC-0330.

OTHER FUNDS MANAGED BY CREDIT SUISSE ASSET MANAGEMENT, LLC

Credit Suisse Capital Appreciation Fund
Credit Suisse Cash Reserve Fund
Credit Suisse Emerging Markets Fund
Credit Suisse Fixed Income Fund
Credit Suisse Global Fixed Income Fund
Credit Suisse Global Small Cap Fund
Credit Suisse High Income Fund
Credit Suisse International Focus Fund
Credit Suisse Japan Equity Fund
Credit Suisse Large Cap Value Fund
Credit Suisse Mid-Cap Growth Fund
Credit Suisse New York Municipal Fund
Credit Suisse Select Equity Fund
Credit Suisse Short Duration Bond Fund
Credit Suisse Small Cap Growth Fund
Credit Suisse Small Cap Value Fund

Fund shares are not deposits or other obligations of Credit Suisse Asset
Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by
Credit Suisse Asset Management, LLC or any affiliate. Fund investments are
subject to investment risks, including loss of your investment. There are
special risk considerations associated with international, global,
emerging-market, small-company, private equity, high-yield debt,
single-industry, single-country and other special, aggressive or concentrated
investment strategies. Past performance cannot guarantee future results.

More complete information about a fund, including charges and expenses, is
provided in the Prospectus, which should be read carefully before investing. You
may obtain copies by calling Credit Suisse Funds at 800-927-2874. For up-to-date
performance, please look in the mutual fund section of your newspaper under
Credit Suisse.

Credit Suisse Asset Management Securities, Inc., Distributor.

THE CSAM GROUP OF FUNDS

LITERATURE REQUEST- Call today for free descriptive information on the
closed-end funds listed below at 1-800-293-1232 or visit our website on the
Internet: http://www.csam.com/us.

CLOSED-END FUNDS

SINGLE COUNTRY
The Brazilian Equity Fund, Inc. (BZL)
The Chile Fund, Inc. (CH)
The Indonesia Fund, Inc. (IF)
The First Israel Fund, Inc. (ISL)

MULTIPLE COUNTRY
The Emerging Markets Telecommunications Fund, Inc. (ETF)
The Latin America Equity Fund, Inc. (LAQ)

FIXED INCOME
Credit Suisse High Yield Bond Fund (DHY)

4946-AR-04
Credit Suisse Asset Management, LLC
Phone: 1-800-293-1232
www.csam.com/us

ITEM 2. CODE OF ETHICS.

The registrant has adopted a code of ethics applicable to its Chief Executive
Officer, President, Chief Financial Officer and Chief Accounting Officer, or
persons performing similar functions. A copy of the code is filed as Exhibit
12(a)(1) to this Form. There were no amendments to the code during the fiscal
year ended December 31, 2004. There were no waivers or implicit waivers from the
code granted by the registrant during the fiscal year ended December 31, 2004.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant's governing board has determined that it has two audit committee
financial experts serving on its audit committee: Enrique R. Arzac and James
Pasman, Jr. Each audit committee financial expert is "independent" for purposes
of this item.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) through (d). The information in the table below is provided for services
rendered to the registrant by its independent registered public accounting firm,
PricewaterhouseCoopers LLP ("PwC"), for its fiscal years ended December 31, 2003
and December 31, 2004.

2003 2004
---------------------------------------------------------------

Audit Fees $ 37,410 $ 37,410
Audit-Related Fees(1) $ 3,000 $ 4,500
Tax Fees(2) $ 2,175 $ 2,284
All Other Fees -- --
---------------------------------------------------------------
Total $ 42,585 $ 44,194
---------------------------------------------------------------

(1) Services include agreed-upon procedures in connection with the registrant's
semi-annual financial statements ($3,000 per year) and the registrant's
third quarter 2004 Form N-Q filing ($1,500).

(2) Tax services in connection with the registrant's excise tax calculations
and review of the registrant's applicable tax returns.

The information in the table below is provided with respect to non-audit
services that directly relate to the registrant's operations and financial
reporting and that were rendered by PwC to the registrant's investment adviser,
Credit Suisse Asset Management, LLC ("CSAM"), and any service provider to the
registrant controlling, controlled by or under common control with CSAM that
provided ongoing services to the registrant ("Covered Services Provider"), for
the registrant's fiscal years ended December 31, 2003 and December 31, 2004.

2003 2004
--------------------------------------------------------

Audit-Related Fees N/A N/A

Tax Fees N/A N/A
All Other Fees N/A N/A
-------------------------------------------------------
Total N/A N/A
-------------------------------------------------------

(e)(1) Pre-Approval Policies and Procedures. The Audit Committee ("Committee")
of the registrant is responsible for pre-approving (i) all audit and permissible
non-audit services to be provided by the independent registered public
accounting firm to the registrant and (ii) all permissible non-audit services to
be provided by the independent registered public accounting firm to CSAM and any
Covered Services Provider if the engagement relates directly to the operations
and financial reporting of the registrant. The Committee may delegate its
responsibility to pre-approve any such audit and permissible non-audit services
to the Chairperson of the Committee, and the Chairperson shall report to the
Committee, at its next regularly scheduled meeting after the Chairperson's
pre-approval of such services, his or her decision(s). The Committee may also
establish detailed pre-approval policies and procedures for pre-approval of such
services in accordance with applicable laws, including the delegation of some or
all of the Committee's pre-approval responsibilities to other persons (other
than CSAM or the registrant's officers). Pre-approval by the Committee of any
permissible non-audit services shall not be required so long as: (i) the
aggregate amount of all such permissible non-audit services provided to the
registrant, CSAM and any Covered Services Provider constitutes not more than 5%
of the total amount of revenues paid by the registrant to its independent
registered public accounting firm during the fiscal year in which the
permissible non-audit services are provided; (ii) the permissible non-audit
services were not recognized by the registrant at the time of the engagement to
be non-audit services; and (iii) such services are promptly brought to the
attention of the Committee and approved by the Committee (or its delegate(s))
prior to the completion of the audit.

(e)(2) The information in the table below sets forth the percentages of fees for
services (other than audit, review or attest services) rendered by PwC to the
registrant for which the pre-approval requirement was waived pursuant to Rule
2-01(c)(7)(i)(C) of Regulation S-X:

2003 2004
--------------------------------------------------------

Audit-Related Fees N/A N/A
Tax Fees N/A N/A
All Other Fees N/A N/A
--------------------------------------------------------
Total N/A N/A
--------------------------------------------------------

The information in the table below sets forth the percentages of fees for
services (other than audit, review or attest services) rendered by PwC to CSAM
and any Covered Services Provider required to be approved pursuant to Rule
2-01(c)(7)(ii)of Regulation S-X, for the registrant's fiscal years ended
December 31, 2003 and December 31, 2004:

2003 2004
--------------------------------------------------------

Audit-Related Fees N/A N/A
Tax Fees N/A N/A
All Other Fees N/A N/A
--------------------------------------------------------
Total N/A N/A
--------------------------------------------------------

(f) Not Applicable.

(g) The aggregate fees billed by PwC for non-audit services rendered to the
registrant, CSAM and Covered Service Providers for the fiscal years ended
December 31, 2003 and December 31, 2004 were $5,175 and $6,784, respectively.

(h) Not Applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The registrant has a separately designated standing audit committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended. The members of the committee are Enrique R. Arzac, Laurence Fox and
James Pasman, Jr.

ITEM 6. SCHEDULE OF INVESTMENTS.

Included as part of the report to shareholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

CREDIT SUISSE ASSET MANAGEMENT, LLC

CREDIT SUISSE FUNDS

CREDIT SUISSE INSTITUTIONAL FUNDS

CSAM CLOSED-END FUNDS

PROXY VOTING POLICY AND PROCEDURES

Introduction

Credit Suisse Asset Management, LLC ("CSAM") is a fiduciary that owes each
of its clients duties of care and loyalty with respect to proxy voting. The
duty of care requires CSAM to monitor corporate events and to vote proxies.
To satisfy its duty of loyalty, CSAM must cast proxy votes in the best
interests of each of its clients.

The Credit Suisse Funds, Credit Suisse Institutional Funds, and CSAM
Closed-End Funds (the "Funds"), which have engaged Credit Suisse Asset
Management, LLC as their investment adviser, are of the belief that the
proxy voting process is a means of addressing corporate governance issues
and encouraging corporate actions both of which can enhance shareholder
value.

Policy

The Proxy Voting Policy (the "Policy") set forth below is designed to
ensure that proxies are voted in the best interests of CSAM's clients. The
Policy addresses particular issues and gives a general indication of how
CSAM will vote proxies. The Policy is not exhaustive and does not include
all potential issues.

Proxy Voting Committee

The Proxy Voting Committee will consist of a member of the Portfolio
Management Department, a member of the Legal and Compliance Department, and
a member of the Operations Department (or their designees). The purpose of
the Proxy Voting Committee is to administer the voting of all clients'
proxies in accordance with the Policy. The Proxy Voting Committee will
review the Policy annually to ensure that it is designed to promote the
best interests of CSAM's clients.

For the reasons disclosed below under "Conflicts," the Proxy Voting
Committee has engaged the services of an independent third party
(initially, Institutional Shareholder Services ("ISS")) to assist in issue
analysis and vote recommendation for proxy proposals. Proxy proposals
addressed by the Policy will be voted in accordance with the Policy. Proxy
proposals addressed by the Policy that require a case-by-case analysis will
be voted in accordance with the vote

recommendation of ISS. Proxy proposals not addressed by the Policy will
also be voted in accordance with the vote recommendation of ISS. To the
extent that the Proxy Voting Committee proposes to deviate from the Policy
or the ISS vote recommendation, the Committee shall obtain client consent
as described below.

CSAM investment professionals may submit a written recommendation to the
Proxy Voting Committee to vote in a manner inconsistent with the Policy
and/or the recommendation of ISS. Such recommendation will set forth its
basis and rationale. In addition, the investment professional must confirm
in writing that he/she is not aware of any conflicts of interest concerning
the proxy matter or provide a full and complete description of the
conflict.

Conflicts

CSAM is the institutional and mutual fund asset management arm of Credit
Suisse First Boston, which is part of Credit Suisse Group, one of the
world's largest financial organizations. As part of a global, full service
investment-bank, broker-dealer, and asset-management organization, CSAM and
its affiliates and personnel may have multiple advisory, transactional,
financial, and other interests in securities, instruments, and companies
that may be purchased or sold by CSAM for its clients' accounts. The
interests of CSAM and/or its affiliates and personnel may conflict with the
interests of CSAM's clients in connection with any proxy issue. In
addition, CSAM may not be able to identify all of the conflicts of interest
relating to any proxy matter.

Consent

In each and every instance in which the Proxy Voting Committee favors
voting in a manner that is inconsistent with the Policy or the vote
recommendation of ISS (including proxy proposals addressed and not
addressed by the Policy), it shall disclose to the client conflicts of
interest information and obtain client consent to vote. Where the client is
a Fund, disclosure shall be made to any one director who is not an
"interested person," as that term is defined under the Investment Company
Act of 1940, as amended, of the Fund.

Recordkeeping

CSAM is required to maintain in an easily accessible place for five years all
records relating to proxy voting.

These records include the following:

- a copy of the Policy;

- a copy of each proxy statement received on behalf of CSAM clients;

- a record of each vote cast on behalf of CSAM clients;

- a copy of all documents created by CSAM personnel that were material to
making a decision on a vote or that memorializes the basis for the
decision; and

- a copy of each written request by a client for information on how CSAM
voted proxies, as well as a copy of any written response.

CSAM reserves the right to maintain certain required proxy records with ISS
in accordance with all applicable regulations.

Disclosure

CSAM will describe the Policy to each client. Upon request, CSAM will
provide any client with a copy of the Policy. CSAM will also disclose to
its clients how they can obtain information on their proxy votes.

ISS will capture data necessary for Funds to file Form N-PX on an annual
basis concerning their proxy voting record in accordance with applicable
law.

Procedures

The Proxy Voting Committee will administer the voting of all client
proxies. CSAM has engaged ISS as an independent third party proxy voting
service to assist in the voting of client proxies. ISS will coordinate with
each client's custodian to ensure that proxy materials reviewed by the
custodians are processed in a timely fashion. ISS will provide CSAM with an
analysis of proxy issues and a vote recommendation for proxy proposals. ISS
will refer proxies to the Proxy Voting Committee for instructions when the
application of the Policy is not clear. The Proxy Voting Committee will
notify ISS of any changes to the Policy or deviating thereof.

PROXY VOTING POLICY

Operational Items

Adjourn Meeting

Proposals to provide management with the authority to adjourn an
annual or special meeting will be determined on a case-by-case basis.

Amend Quorum Requirements

Proposals to reduce quorum requirements for shareholder meetings below
a majority of the shares outstanding will be determined on a
case-by-case basis.

Amend Minor Bylaws

Generally vote for bylaw or charter changes that are of a housekeeping
nature.

Change Date, Time, or Location of Annual Meeting

Generally vote for management proposals to change the
date/time/location of the annual meeting unless the proposed change is
unreasonable. Generally vote against shareholder proposals to change
the date/time/location of the annual meeting unless the current
scheduling or location is unreasonable.

Ratify Auditors

Generally vote for proposals to ratify auditors unless: (1) an auditor
has a financial interest in or association with the company, and is
therefore not independent; (2) fees for non-audit services are
excessive, or (3) there is reason to believe that the independent
auditor has rendered an opinion, which is neither accurate nor
indicative of the company's financial position. Generally vote on a
case-by-case basis on shareholder proposals asking companies to
prohibit their auditors from engaging in non-audit services (or
capping the level of non-audit services). Generally vote on a
case-by-case basis on auditor rotation proposals taking into
consideration: (1) tenure of audit firm; (2) establishment and
disclosure of a renewal process whereby the auditor is regularly
evaluated for both audit quality and competitive price; (3) length of
the rotation period advocated in the proposal, and (4) significant
audit related issues.

Board of Directors

Voting on Director Nominees in Uncontested Elections

Generally votes on director nominees on a case-by-case basis. Votes
may be withheld: (1) from directors who attended less than 75% of the
board and committee meetings without a valid reason for the absences;
(2) implemented or renewed a dead-hand poison pill; (3) ignored a
shareholder proposal that was approved by a majority of the votes cast
for two consecutive years; (4) ignored a shareholder proposal approved
by a majority of the shares outstanding; (5) have failed to act on
takeover offers where the majority of the shareholders have tendered
their shares; (6) are inside directors or affiliated outside directors
and sit on the audit, compensation, or nominating committee; (7) are
inside directors or affiliated outside directors and the full board
serves as the audit, compensation, or nominating committee or the
company does not have one of these committees; or (8) are audit
committee members and the non-audit fees paid to the auditor are
excessive

Cumulative Voting

Proposals to eliminate cumulative voting will be determined on a
case-by-case basis. Proposals to restore or provide for cumulative
voting in the absence of sufficient good governance provisions and/or
poor relative shareholder returns will be determined on a case-by-case
basis.

Director and Officer Indemnification and Liability Protection

Proposals on director and officer indemnification and liability
protection generally evaluated on a case-by-case basis. Generally vote
against proposals that would: (1) eliminate entirely directors' and
officers' liability for monetary damages for violating the duty of
care; or (2) expand coverage beyond just legal expenses to acts, such
as negligence, that are more serious violations of fiduciary
obligation than mere carelessness. Generally vote for only those
proposals providing such expanded coverage in cases when a director's
or officer's legal defense was unsuccessful if: (1) the director was
found to have acted in good faith and in a manner that he reasonably
believed was in the best interests of the company, and (2) only if the
director's legal expenses would be covered.

Filling Vacancies/Removal of Directors

Generally vote against proposals that provide that directors may be
removed only for cause. Generally vote for proposals to restore
shareholder ability to remove directors with or without cause.
Proposals that provide that only continuing directors may elect
replacements to fill board vacancies will be determined on a
case-by-case basis. Generally vote for proposals that permit
shareholders to elect directors to fill board vacancies.

Independent Chairman (Separate Chairman/CEO)

Generally vote for shareholder proposals requiring the position of
chairman be filled by an independent director unless there are
compelling reasons to recommend against the proposal, including: (1)
designated lead director, elected by and from the independent board
members with clearly delineated duties; (2) 2/3 independent board; (3)
all independent key committees; or (4) established governance
guidelines.

Majority of Independent Directors

Generally vote for shareholder proposals requiring that the board
consist of a majority or substantial majority (two-thirds) of
independent directors unless the board composition already meets the
adequate threshold. Generally vote for shareholder proposals requiring
the board audit, compensation, and/or nominating committees be
composed exclusively of independent directors if they currently do not
meet that standard. Generally withhold votes from insiders and
affiliated outsiders sitting on the audit, compensation, or nominating
committees. Generally withhold votes from insiders and affiliated
outsiders on boards that are

lacking any of these three panels. Generally withhold votes from
insiders and affiliated outsiders on boards that are not at least
majority independent.

Term Limits

Generally vote against shareholder proposals to limit the tenure of
outside directors.

Proxy Contests

Voting on Director Nominees in Contested Elections

Votes in a contested election of directors should be decided on a
case-by-case basis, with shareholders determining which directors are
best suited to add value for shareholders. The major decision factors
are: (1) company performance relative to its peers; (2) strategy of
the incumbents versus the dissidents; (3) independence of
directors/nominees; (4) experience and skills of board candidates; (5)
governance profile of the company; (6) evidence of management
entrenchment; (7) responsiveness to shareholders; or (8) whether
takeover offer has been rebuffed.

Amend Bylaws without Shareholder Consent

Proposals giving the board exclusive authority to amend the bylaws
will be determined on a case-by-case basis. Proposals giving the board
the ability to amend the bylaws in addition to shareholders will be
determined on a case-by-case basis.

Confidential Voting

Generally vote for shareholder proposals requesting that corporations
adopt confidential voting, use independent vote tabulators and use
independent inspectors of election, as long as the proposal includes a
provision for proxy contests as follows: In the case of a contested
election, management should be permitted to request that the dissident
group honor its confidential voting policy. If the dissidents agree,
the policy may remain in place. If the dissidents will not agree, the
confidential voting policy may be waived. Generally vote for
management proposals to adopt confidential voting.

Cumulative Voting

Antitakeover Defenses and Voting Related Issues

Advance Notice Requirements for Shareholder Proposals/Nominations

Votes on advance notice proposals are determined on a case-by-case
basis.

Amend Bylaws without Shareholder Consent

Proposals giving the board exclusive authority to amend the bylaws
will be determined on a case-by-case basis. Generally vote for
proposals giving the board the ability to amend the bylaws in addition
to shareholders.

Poison Pills (Shareholder Rights Plans)

Generally vote for shareholder proposals requesting that the company
submit its poison pill to a shareholder vote or redeem it. Votes
regarding management proposals to ratify a poison pill should be
determined on a case-by-case basis. Plans should embody the following
attributes: (1) 20% or higher flip-in or flip-over; (2) two to three
year sunset provision; (3) no dead-hand or no-hand features; or (4)
shareholder redemption feature

Shareholders' Ability to Act by Written Consent

Generally vote against proposals to restrict or prohibit shareholders'
ability to take action by written consent. Generally vote for
proposals to allow or make easier shareholder action by written
consent.

Shareholders' Ability to Call Special Meetings

Proposals to restrict or prohibit shareholders' ability to call
special meetings or that remove restrictions on the right of
shareholders to act independently of management will be determined on
a case-by-case basis.

Supermajority Vote Requirements

Proposals to require a supermajority shareholder vote will be
determined on a case-by-case basis Proposals to lower supermajority
vote requirements will be determined on a case-by-case basis.

Merger and Corporate Restructuring

Appraisal Rights

Generally vote for proposals to restore, or provide shareholders with,
rights of appraisal.

Asset Purchases

Generally vote case-by-case on asset purchase proposals, taking into
account: (1) purchase price, including earnout and contingent
payments; (2) fairness opinion; (3) financial and strategic benefits;
(4) how the deal was negotiated; (5) conflicts of interest; (6) other
alternatives for the business; or (7) noncompletion risk (company's
going concern prospects, possible bankruptcy).

Asset Sales

Votes on asset sales should be determined on a case-by-case basis
after considering: (1) impact on the balance sheet/working capital;
(2) potential elimination of diseconomies; (3) anticipated financial
and operating benefits; (4) anticipated use of funds; (5) value
received for the asset; fairness opinion (if any); (6) how the deal
was negotiated; or (6) Conflicts of interest

Conversion of Securities

Votes on proposals regarding conversion of securities are determined
on a case-by-case basis. When evaluating these proposals, should
review (1) dilution to existing shareholders' position; (2) conversion
price relative to market value; (3) financial issues: company's
financial situation and degree of need for capital; effect of the
transaction on the company's cost of capital; (4) control issues:
change in management; change in control; standstill provisions and
voting agreements; guaranteed contractual board and committee seats
for investor; veto power over certain corporate actions; (5)
termination penalties; (6) conflict of interest: arm's length
transactions, managerial incentives. Generally vote for the conversion
if it is expected that the company will be subject to onerous
penalties or will be forced to file for bankruptcy if the transaction
is not approved.

Corporate Reorganization

Votes on proposals to increase common and/or preferred shares and to
issue shares as part of a debt restructuring plan are determined on a
case-by-case basis, after evaluating: (1) dilution to existing
shareholders' position; (2) terms of the offer; (3) financial issues;
(4) management's efforts to pursue other alternatives; (5) control
issues; (6) conflict of interest. Generally vote for the debt
restructuring if it is expected that the company will file for
bankruptcy if the transaction is not approved.

Reverse Leveraged Buyouts

for the debt restructuring if it is expected that the company will
file for bankruptcy if the transaction is not approved.

Formation of Holding Company

Votes on proposals regarding the formation of a holding company should
be determined on a case-by-case basis taking into consideration: (1)
the reasons for the change; (2) any financial or tax benefits; (3)
regulatory benefits; (4) increases in capital structure; (5) changes
to the articles of incorporation or bylaws of the company. Absent
compelling financial reasons to recommend the transaction, generally
vote against the formation of a holding company if the transaction
would include either of the following: (1) increases in common or
preferred stock in excess of the allowable maximum as calculated a
model capital structure; (2) adverse changes in shareholder rights;
(3) going private transactions; (4) votes going private transactions
on a case-by-case basis, taking into account: (a) offer price/premium;
(b) fairness opinion; (c) how the deal was negotiated; (d) conflicts
of interest; (e) other alternatives/offers considered; (f)
noncompletion risk.

Joint Ventures

Vote on a case-by-case basis on proposals to form joint ventures,
taking into account: (1) percentage of assets/business contributed;
(2) percentage ownership; (3) financial and strategic benefits; (4)
governance structure; (5) conflicts of interest; (6) other
alternatives; (7) noncompletion risk; (8) liquidations. Votes on
liquidations should be determined on a case-by-case basis after
reviewing: (1) management's efforts to pursue other alternatives such
as mergers; (2) appraisal value of the assets (including any fairness
opinions); (3) compensation plan for executives managing the
liquidation. Generally vote for the liquidation if the company will
file for bankruptcy if the proposal is not approved.

Mergers and Acquisitions

Votes on mergers and acquisitions should be considered on a
case-by-case basis, determining whether the transaction enhances
shareholder value by giving consideration to: (1) prospects of the
combined companies; (2) anticipated financial and operating benefits;
(3) offer price; (4) fairness opinion; (5) how the deal was
negotiated; (6) changes in corporate governance and their impact on
shareholder rights; (7) change in the capital structure; (8) conflicts
of interest.

Private Placements

Votes on proposals regarding private placements should be determined
on a case-by-case basis. When evaluating these proposals, should
review: (1) dilution to existing shareholders' position; (2) terms of
the offer; (3) financial issues; (4) management's efforts to pursue
alternatives such as mergers; (5) control issues; (6) conflict of
interest. Generally vote for the

private placement if it is expected that the company will file for
bankruptcy if the transaction is not approved.

Prepackaged Bankruptcy Plans

Recapitalization

Votes case-by-case on recapitalizations (reclassifications of
securities), taking into account: (1) more simplified capital
structure; (2) enhanced liquidity; (3) fairness of conversion terms,
including fairness opinion; (4) impact on voting power and dividends;
(5) reasons for the reclassification; (6) conflicts of interest; (7)
other alternatives considered.

Reverse Stock Splits

Generally vote for management proposals to implement a reverse stock
split when the number of authorized shares will be proportionately
reduced. Generally vote for management proposals to implement a
reverse stock split to avoid delisting. Votes on proposals to
implement a reverse stock split that do not proportionately reduce the
number of shares authorized for issue should be determined on a
case-by-case basis.

Spinoffs

Votes on spinoffs should be considered on a case-by-case basis
depending on: (1) tax and regulatory advantages; (2) planned use of
the sale proceeds; (3) valuation of spinoff; fairness opinion; (3)
benefits that the spinoff may have on the parent company including
improved market focus; (4) conflicts of interest; managerial
incentives; (5) any changes in corporate governance and their impact
on shareholder rights; (6) change in the capital structure

Value Maximization Proposals

Vote case-by-case on shareholder proposals seeking to maximize
shareholder value.

Capital Structure

Adjustments to Par Value of Common Stock

Generally vote for management proposals to reduce the par value of
common stock unless the action is being taken to facilitate an
antitakeover device or some other negative corporate governance
action. Generally vote for management proposals to eliminate par
value.

Common Stock Authorization

Votes on proposals to increase the number of shares of common stock
authorized for issuance are determined on a case-by-case basis.
Generally vote against proposals at companies with dual-class capital
structures to increase the number of authorized shares of the class of
stock that has superior voting rights. Generally vote for proposals to
approve increases beyond the allowable increase when a company's
shares are in danger of being delisted or if a company's ability to
continue to operate as a going concern is uncertain.

Dual-class Stock

Generally vote against proposals to create a new class of common stock
with superior voting rights. Generally vote for proposals to create a
new class of nonvoting or subvoting common stock if: (1) it is
intended for financing purposes with minimal or no dilution to current
shareholders; (2) it is not designed to preserve the voting power of
an insider or significant shareholder.

Issue Stock for Use with Rights Plan

Generally vote against proposals that increase authorized common stock
for the explicit purpose of implementing a shareholder rights plan.

Preemptive Rights

Votes regarding shareholder proposals seeking preemptive rights should
be determined on a case-by-case basis after evaluating: (1) the size
of the company; (2) the shareholder base; (3) the liquidity of the
stock

Preferred Stock

Generally vote against proposals authorizing the creation of new
classes of preferred stock with unspecified voting, conversion,
dividend distribution, and other rights ("blank check" preferred
stock). Generally vote for proposals to create "declawed" blank check
preferred stock (stock that cannot be used as a takeover defense).
Generally vote for proposals to authorize preferred stock in cases
where the company specifies the voting, dividend, conversion, and
other rights of such stock and the terms of the preferred stock appear
reasonable. Generally vote against proposals to increase the number of
blank check preferred stock authorized for issuance when no shares
have been issued or reserved for a specific purpose. Generally vote
case-by-case on proposals to increase the number of blank check

preferred shares after analyzing the number of preferred shares
available for issue given a company's industry and performance in
terms of shareholder returns.

Recapitalization

Vote case-by-case on recapitalizations (reclassifications of
securities), taking into account: (1) more simplified capital
structure; (2) enhanced liquidity; (3) fairness of conversion terms,
including fairness opinion; (4) impact on voting power and dividends;
(5) reasons for the reclassification; (6) conflicts of interest; (7)
other alternatives considered.

Reverse Stock Splits

Share Repurchase Programs

Generally vote for management proposals to institute open-market share
repurchase plans in which all shareholders may participate on equal
terms.

Stock Distributions: Splits and Dividends

Generally vote for management proposals to increase the common share
authorization for a stock split or share dividend, provided that the
increase in authorized shares would not result in an excessive number
of shares available for issuance.

Tracking Stock

Votes on the creation of tracking stock are determined on a
case-by-case basis, weighing the strategic value of the transaction
against such factors as: (1) adverse governance changes; (2) excessive
increases in authorized capital stock; (3) unfair method of
distribution; (4) diminution of voting rights; (5) adverse conversion
features; (6) negative impact on stock option plans; (7) other
alternatives such as a spinoff.

Executive and Director Compensation

Votes on compensation plans for directors are determined on a
case-by-case basis.

Stock Plans in Lieu of Cash

Votes for plans which provide participants with the option of taking
all or a portion of their cash compensation in the form of stock are
determined on a case-by-case basis. Generally vote for plans which
provide a dollar-for-dollar cash for stock exchange. Votes for plans
which do not provide a dollar-for-dollar cash for stock exchange
should be determined on a case-by-case basis.

Director Retirement Plans

Generally vote against retirement plans for nonemployee directors.
Generally vote for shareholder proposals to eliminate retirement plans
for nonemployee directors.

Management Proposals Seeking Approval to Reprice Options

Votes on management proposals seeking approval to reprice options are
evaluated on a case-by-case basis giving consideration to the
following: (1) historic trading patterns; (2) rationale for the
repricing; (3) value-for-value exchange; (4) option vesting; (5) term
of the option; (6) exercise price; (7) participants; (8) employee
stock purchase plans. Votes on employee stock purchase plans should be
determined on a case-by-case basis. Generally vote for employee stock
purchase plans where: (1) purchase price is at least 85 percent of
fair market value; (2) offering period is 27 months or less, and (3)
potential voting power dilution (VPD) is ten percent or less.
Generally vote against employee stock purchase plans where either: (1)
purchase price is less than 85 percent of fair market value; (2)
Offering period is greater than 27 months, or (3) VPD is greater than
ten percent

Incentive Bonus Plans and Tax Deductibility Proposals

Generally vote for proposals that simply amend shareholder-approved
compensation plans to include administrative features or place a cap
on the annual grants any one participant may receive. Generally vote
for proposals to add performance goals to existing compensation plans.
Votes to amend existing plans to increase shares reserved and to
qualify for favorable tax treatment considered on a case-by-case
basis. Generally vote for cash or cash and stock bonus plans that are
submitted to shareholders for the purpose of exempting compensation
from taxes if no increase in shares is requested.

Employee Stock Ownership Plans (ESOPs)

Generally vote for proposals to implement an ESOP or increase
authorized shares for existing ESOPs, unless the number of shares
allocated to the ESOP is excessive (more than five percent of
outstanding shares.)

401(k) Employee Benefit Plans

Generally vote for proposals to implement a 401(k) savings plan for
employees.

Shareholder Proposals Regarding Executive and Director Pay

Generally vote for shareholder proposals seeking additional disclosure
of executive and director pay information, provided the information
requested is relevant to shareholders' needs, would not put the
company at a competitive disadvantage relative to its industry, and is
not unduly burdensome to the company. Generally vote against
shareholder proposals seeking to set absolute levels on compensation
or otherwise dictate the amount or form of compensation. Generally
vote against shareholder proposals requiring director fees be paid in
stock only. Generally vote for shareholder proposals to put option
repricings to a shareholder vote. Vote for shareholders proposals to
exclude pension fund income in the calculation of earnings used in
determining executive bonuses/compensation. Vote on a case-by-case
basis for all other shareholder proposals regarding executive and
director pay, taking into account company performance, pay level
versus peers, pay level versus industry, and long term corporate
outlook.

Performance-Based Option Proposals

Generally vote for shareholder proposals advocating the use of
performance-based equity awards (indexed, premium-priced, and
performance-vested options), unless: (1) the proposal is overly
restrictive; or (2) the company demonstrates that it is using a
substantial portion of performance-based awards for its top
executives.

Stock Option Expensing

Generally vote for shareholder proposals asking the company to expense
stock options unless the company has already publicly committed to
start expensing by a specific date.

Golden and Tin Parachutes

Generally vote for shareholder proposals to require golden and tin
parachutes to be submitted for shareholder ratification, unless the
proposal requires shareholder approval prior to entering into
employment contracts. Vote on a case-by-case basis on proposals to
ratify or cancel golden or tin parachutes.

May 19, 2004

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Form N-CSR disclosure requirement is not yet effective with respect to the
registrant.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

None.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors since the registrant
last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(g)
of Schedule 14A in its definitive proxy statement dated March 1, 2004.

ITEM 11. CONTROLS AND PROCEDURES.

(a) As of a date within 90 days from the filing date of this report, the
principal executive officer and principal financial officer concluded that the
registrant's disclosure controls and procedures (as defined in Rule 30a-3(c)
under the Investment Company Act of 1940 (the "Act")) were effective based on
their evaluation of the disclosure controls and procedures required by Rule
30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.

(b) There were no changes in registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the
second fiscal quarter of the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Registrant's Code of Ethics is an exhibit to this report.

(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under
the Act are exhibits to this report.

(a)(3) Not applicable.

(b) The certifications of the registrant as required by Rule 30a-2(b) under
the Act are an exhibit to this report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC.

/s/ Michael E. Kenneally
------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: March 8, 2005

Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

/s/ Michael E. Kenneally
------------------------
Name: Michael E. Kenneally
Title: Chief Executive Officer
Date: March 8, 2005

/s/ Michael A. Pignataro
------------------------
Name: Michael A. Pignataro
Title: Chief Financial Officer
Date: March 8, 2005