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)

One Madison Avenue, New York, New York 10010

 

 

(Address of Principal Executive Offices)         (Zip Code)

John G. Popp

Credit Suisse Asset Management Income Fund, Inc.

One Madison Avenue

New York, New York 10010

Registrant’s telephone number, including area code: (212) 325-2000

Date of fiscal year end: December 31

Date of reporting period: January 1, 2015 to June 30, 2015


Item 1. Reports to Stockholders.


Credit Suisse Asset Management
Income Fund, Inc.

One Madison Avenue

New York, NY 10010

 

 

Directors

Steven N. Rappaport

Chairman of the Board

Enrique R. Arzac

Terry Fires Bovarnick

James J. Cattano

Lawrence J. Fox

John G. Popp

 

 

Officers

John G. Popp

Chief Executive Officer and President

Thomas J. Flannery

Chief Investment Officer

Emidio Morizio

Chief Compliance Officer

Lou Anne McInnis

Chief Legal Officer

Rocco DelGuercio

Chief Financial Officer and Treasurer

Karen Regan

Senior Vice President and Secretary

 

 

Investment Adviser

Credit Suisse Asset Management, LLC

One Madison Avenue

New York, NY 10010

 

 

Administrator and Custodian

State Street Bank and Trust Co.

One Lincoln Street

Boston, MA 02111

 

 

Shareholder Servicing Agent

Computershare Trust Company, N.A.

P.O. Box 30170

College Station, TX 77842-3170

 

 

Legal Counsel

Willkie Farr & Gallagher LLP

787 7th Avenue

New York, NY 10019

 

 

Independent Registered Public Accounting Firm

KPMG LLP

345 Park Avenue

New York, NY 10154

 

 

 

 

 

Credit Suisse Asset Management

Income Fund, Inc.

 

 

 

SEMIANNUAL REPORT

June 30, 2015

(unaudited)

 

 

LOGO

 


Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser’s Report

June 30, 2015 (unaudited)

 

 

August 19, 2015

Dear Shareholder:

We are pleased to present this Semiannual Report covering the activities of the Credit Suisse Asset Management Income Fund, Inc. (the “Fund”) for the semiannual period ended June 30, 2015.

Performance Summary

12/31/14 – 06/30/15

 

Fund & Benchmark    Performance  

Total Return (based on NAV)1

     4.45

Total Return (based on market value)1

     1.32

BofA Merrill Lynch US High Yield Master II Constrained Index2

     2.50

Market Review: Issuance Slows Despite Positive Performance

The semiannual period ended June 30, 2015 was mixed for the high yield market. Positive macro-economic headlines during the first quarter led to a risk asset rally that drove positive returns. However, as the market headed into the second quarter, increased equity volatility, weakened technicals and wider sovereign yields led to muted returns. The BofA Merrill Lynch US High Yield Master II Constrained Index, the Fund’s benchmark, returned 2.50% for the period.

Yields were unchanged, ending the period at 6.65%. Spreads were slightly tighter, ending the period at +509 basis points (bps) versus +513 bps. For the period, B rated bonds led the market, returning 3.18%, followed by CCC rated bonds at 1.77% and BB rated bonds at 1.43%.

Par-weighted defaults ended the period at 1.88% — well below historical figures. While the overall default rates have been low, there has been outsized representation in the energy and coal sectors.

New issuance in the high yield market totaled $191.2 billion on a year-to-date basis, down 9% when compared to the first six months of 2014, according to JPMorgan.

Strategic Review and Outlook: Fed Hike Could Lead to Continued Volatility

For the semiannual period ended June 30, 2015, the Fund outperformed the benchmark on a NAV basis, but underperformed the benchmark on a market price basis. Exposures in B rated bonds as well as oil field equipment contributed to relative performance, while names in metals and theater & entertainment detracted from relative performance.

With increased volatility over the past few months, we continue to expect elevated dispersion going forward, making security selection an increasingly important contributor to returns.

 

 

1


Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser’s Report

June 30, 2015 (unaudited)

 

 

Excluding energy, the current fundamental backdrop continues to be benign with default expectations for the high yield market anticipated to remain below historical averages. However, a potential Fed rate hike is on the horizon and this could lead to continued market volatility in the near future.

 

LOGO    LOGO
Thomas J. Flannery    John G. Popp
Chief Investment Officer*    Chief Executive Officer and President**

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.

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 investments. 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 views of the Fund’s management are as of the date of the letter and the Fund holdings described in this document are as of June 30, 2015; these views and Fund holdings may have changed subsequent to these dates. Nothing in this document is a recommendation to purchase or sell securities.

 

1  Assuming reinvestment of dividends of $0.132 per share.
2  The BofA Merrill Lynch U.S. High Yield Master II Constrained Index is an unmanaged index that tracks the performance of below investment-grade U.S. dollar-denominated corporate bonds issued in the U.S. domestic market, where each issuer’s allocation is limited to 2% of the Index. The index does not have transaction costs and investors cannot invest directly in the index.
* Thomas J. Flannery, Managing Director, is the Head of the Credit Suisse U.S. High Yield Management Team. Mr. Flannery joined Credit Suisse Asset Management, LLC (“Credit Suisse”) in June 2010. He is a portfolio manager for Credit Investments Group (“CIG”) with responsibility for trading, directing investment decisions, originating and analyzing investment opportunities. Mr. Flannery is also a member of the CIG Credit Committee and is currently a high yield bond portfolio manager and trader for CIG. Mr. Flannery joined Credit Suisse AG in 2000 from First Dominion Capital, LLC where he was an Associate. Mr. Flannery holds a B.S. in Finance from Georgetown University.
** John G. Popp is a Managing Director of Credit Suisse and Group Head and Chief Investment Officer of the Credit Investments Group (“CIG”), with primary responsibility for making investment decisions and monitoring processes for CIG’s global investment strategies. Mr. Popp also serves as the Chief Executive Officer of the Credit Suisse Funds, as well as serving as Director, Chief Executive Office and President for the Credit Suisse Asset Management Income Fund, Inc. and Trustee, Chief Executive Officer and President of the Credit Suisse High Yield Bond Fund. Mr. Popp has been associated with Credit Suisse since 1997.

 

2


Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser’s Report (continued)

June 30, 2015 (unaudited)

 

 

Credit Quality Breakdown*

(% of Total Investments as of June 30, 2015)

 

S&P Ratings**

 

BBB

     0.3

BB

     21.6   

B

     44.2   

CCC

     24.3   

NR

     7.0   
  

 

 

 

Subtotal

     97.4   

Equity and Other

     0.00   

Short-Term Investment1

     2.6   
  

 

 

 

Total

     100.0
  

 

 

 

 

* Expressed as a percentage of total investments (excluding securities lending collateral if applicable) and may vary over time.
** Credit Quality is based on S&P Ratings. S&P is a main provider of ratings for Credit Asset Classes and is widely used amongst industry participants. The NR category consists of securities that have not been rated by S&P Ratings.
1  Primarily reflects cash invested in State Street Bank and Trust Co. Euro Time Deposit, for which the purchases of securities have been executed but not yet settled at June 30, 2015, if applicable.

Average Annual Returns

June 30, 2015 (unaudited)

 

 

       1 Year        3 Years        5 Years        10 Years  

Net Asset Value (NAV)

       1.35%           7.73%           9.27%           8.11%   

Market Value

       (5.03)%           1.24%           6.85%           6.04%   

Credit Suisse may waive fees and/or reimburses expenses, without which performance would be lower. Waivers and/or reimbursements are subject to change and may be discontinued at any time. Returns represent past performance. Total investment return at net asset value is based on changes in the net asset value of fund shares and assumes reinvestment of dividends and distributions, if any. Total investment return at market value is based on changes in the market price at which the Fund’s shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the Fund’s dividend reinvestment program. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on share price and NAV. Past performance is no guarantee of future results. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return and market price and NAV will fluctuate. Performance information current to the most recent month-end is available by calling 1-800-293-1232.

The annualized gross and net expense ratios are 0.69%.

 

3


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments

June 30, 2015 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS (77.8%)

           

 

Advertising (2.6%)

           
$ 425     

Clear Channel Worldwide Holdings, Inc., Global Company Guaranteed Notes (Callable 11/15/17 @ 103.25)

   (B, B1)      11/15/22         6.500       $ 437,219   
  1,475     

Clear Channel Worldwide Holdings, Inc., Series B, Global Company Guaranteed Notes (Callable 11/15/17 @ 103.25)

   (B, B1)      11/15/22         6.500         1,541,375   
  1,270     

Southern Graphics, Inc., Rule 144A, Company Guaranteed Notes (Callable 10/15/15 @ 106.28)1

   (CCC+, Caa1)      10/15/20         8.375         1,308,100   
  1,650     

WMG Acquisition Corp., Rule 144A, Senior Secured Notes (Callable 01/15/16 @ 104.50)1

   (B+, B1)      01/15/21         6.000         1,691,250   
             

 

 

 
                4,977,944   
             

 

 

 

 

Auto Parts & Equipment (1.8%)

           
  570     

EnerSys, Rule 144A, Company Guaranteed Notes (Callable 01/30/23 @ 100.00)1

   (BB+, Ba2)      04/30/23         5.000         566,614   
  1,150     

MPG Holdco I, Inc., Global Company Guaranteed Notes (Callable 10/15/17 @ 105.53)

   (B+, B3)      10/15/22         7.375         1,230,500   
  1,750     

UCI International, Inc., Global Company Guaranteed Notes (Callable 07/31/15 @ 104.31)

   (CCC-, Caa2)      02/15/19         8.625         1,566,250   
             

 

 

 
                3,363,364   
             

 

 

 

 

Banking (0.8%)

           
  1,500     

CCRE Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 07/31/15 @ 105.81)1

   (B+, B1)      02/15/18         7.750         1,575,000   
  4   

FCC Holdings Finance Subsidiary, Inc., Rule 144A, Senior Unsecured Notes (Callable 07/31/15 @ 100.00)1,2,3

   (CCC, Ca)      12/15/15         13.000         7   
             

 

 

 
                1,575,007   
             

 

 

 

 

Building & Construction (1.7%)

           
  1,200     

AV Homes, Inc., Global Company Guaranteed Notes (Callable 07/01/16 @ 106.38)

   (B-, Caa1)      07/01/19         8.500         1,167,000   
  500     

K Hovnanian Enterprises, Inc., Global Senior Secured Notes

   (CCC+, Ba3)      11/01/21         2.000         332,500   
  700     

NCI Building Systems, Inc., Rule 144A, Company Guaranteed Notes (Callable 01/15/18 @ 106.19)1

   (B+, B3)      01/15/23         8.250         749,000   
  900     

PriSo Acquisition Corp., Rule 144A, Senior Unsecured Notes (Callable 05/15/18 @ 104.50)1

   (CCC+, Caa1)      05/15/23         9.000         888,750   
             

 

 

 
                3,137,250   
             

 

 

 

 

Building Materials (2.8%)

           
  2,000     

Euramax International, Inc., Global Senior Secured Notes (Callable 7/16/15 @ 100.00)5

   (CCC, Caa2)      04/01/16         9.500         1,980,000   
  1,000     

Headwaters, Inc., Global Company Guaranteed Notes (Callable 01/15/16 @ 103.63)

   (B-, Caa1)      01/15/19         7.250         1,045,000   
  1,288     

Interline Brands, Inc.,10.000% Cash,10.750% PIK, Global Senior Unsecured Notes (Callable 07/31/15 @ 105.00)5,6

   (CCC+, Caa2)      11/15/18         20.750         1,349,180   
  875     

Summit Materials Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 07/15/18 @ 103.06)1

   (NR, Caa2)      07/15/23         6.125         879,375   
             

 

 

 
                5,253,555   
             

 

 

 

 

Cable & Satellite TV (4.7%)

           
  800     

Altice Financing S.A., Rule 144A, Senior Secured Notes (Callable 12/15/16 @ 104.88)1

   (BB-, B1)      01/15/22         6.500         802,000   
  400     

Altice S.A., Rule 144A, Company Guaranteed Notes (Callable 02/15/20 @ 103.81)1

   (B, B3)      02/15/25         7.625         377,000   
  925     

Altice S.A., Rule 144A, Company Guaranteed Notes (Callable 05/15/17 @ 105.81)1

   (B, B3)      05/15/22         7.750         897,250   
  1,750     

Block Communications, Inc., Rule 144A, Senior Unsecured Notes (Callable 02/01/16 @ 103.63)1

   (B+, B1)      02/01/20         7.250         1,793,750   
  600     

Cablevision Systems Corp., Senior Unsecured Notes

   (B, B1)      04/15/20         8.000         652,500   
  1,000     

DISH DBS Corp., Global Company Guaranteed Notes

   (BB-, Ba3)      06/01/21         6.750         1,045,000   
  230     

DISH DBS Corp., Global Company Guaranteed Notes

   (BB-, Ba3)      11/15/24         5.875         221,519   
  1,000     

Harron Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 04/01/16 @ 104.56)1

   (BB-, B3)      04/01/20         9.125         1,085,000   
  700     

Numericable-SFR SAS, Rule 144A, Senior Secured Notes (Callable 05/15/17 @ 104.50)1

   (B+, Ba3)      05/15/22         6.000         691,687   
  1,200     

Numericable-SFR SAS, Rule 144A, Senior Secured Notes (Callable 05/15/19 @ 103.13)1

   (B+, Ba3)      05/15/24         6.250         1,183,500   
  200     

Virgin Media Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 01/15/20 @ 102.88)1

   (B, B2)      01/15/25         5.750         200,500   
             

 

 

 
                8,949,706   
             

 

 

 

 

Chemicals (4.7%)

           
  1,175     

A Schulman, Inc., Rule 144A, Company Guaranteed Notes (Callable 06/01/18 @ 105.16)1

   (B+, B3)      06/01/23         6.875         1,204,375   
  679     

AVINTIV Specialty Materials, Inc., Global Senior Secured Notes (Callable 07/31/15 @ 103.88)

   (B-, B2)      02/01/19         7.750         701,068   

 

See Accompanying Notes to Financial Statements.

 

4


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2015 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Chemicals

           
$ 1,000     

AVINTIV Specialty Materials, Inc., Rule 144A, Company Guaranteed Notes (Callable 12/01/15 @ 105.16)1

   (CCC+, Caa1)      06/01/19         6.875       $ 923,750   
  500     

Chemtura Corp., Company Guaranteed Notes (Callable 07/15/16 @ 104.31)

   (BB-, B1)      07/15/21         5.750         510,000   
  1,450     

GrafTech International Ltd., Global Company Guaranteed Notes (Callable 11/15/16 @ 103.19)

   (BB-, B1)      11/15/20         6.375         1,326,750   
  750     

Ineos Group Holdings S.A., Rule 144A, Secured Notes (Callable 02/15/16 @ 102.94)1

   (B-, B3)      02/15/19         5.875         756,562   
  350     

Ineos Group Holdings S.A., Rule 144A, Secured Notes (Callable 07/31/15 @ 103.25)1,5

   (B-, B3)      08/15/18         6.125         358,750   
  1,360     

OMNOVA Solutions, Inc., Global Company Guaranteed Notes (Callable 07/31/15 @ 103.94)

   (B-, B2)      11/01/18         7.875         1,365,100   
  276     

Reichhold Industries, Inc., Rule 144A, Senior Secured Notes (Callable 07/31/15 @ 100.00)1,2,7

   (NR, NR)      05/08/17         9.000         145,046   
  1,100     

The Chemours Co., Rule 144A, Senior Unsecured Notes (Callable 05/15/20 @ 103.50)1,5

   (NR, B1)      05/15/25         7.000         1,069,750   
  600     

Univar, Inc., Rule 144A, Senior Unsecured Notes (Callable 07/15/18 @ 103.38)1

   (B, Caa1)      07/15/23         6.750         607,500   
             

 

 

 
                8,968,651   
             

 

 

 

 

Consumer/Commercial/Lease Financing (1.0%)

           
  2,000     

Infinity Acquisition Finance Corp., Rule 144A, Senior Secured Notes (Callable 08/01/17 @ 103.63)1,5

   (CCC+, Caa2)      08/01/22         7.250         1,890,000   
             

 

 

 

 

Electric - Generation (0.7%)

           
  1,250     

Dynegy, Inc., Rule 144A, Company Guaranteed Notes (Callable 11/01/19 @ 103.81)1

   (B+, B3)      11/01/24         7.625         1,328,125   
             

 

 

 

 

Energy - Exploration & Production (5.9%)

           
  2,230     

Bonanza Creek Energy, Inc., Global Company Guaranteed Notes (Callable 04/15/17 @ 103.38)

   (CCC+, B3)      04/15/21         6.750         2,124,075   
  1,200     

Comstock Resources, Inc., Company Guaranteed Notes (Callable 07/31/15 @ 103.88)5

   (CCC, Caa1)      04/01/19         7.750         510,000   
  900     

Det Norske Oljeselskap ASA, Rule 144A, Subordinated Notes (Callable 05/27/19 @ 105.13)1

   (NR, NR)      05/27/22         10.250         895,500   
  1,975     

EPL Oil & Gas, Inc., Global Company Guaranteed Notes (Callable 07/31/15 @ 104.13)5

   (CCC+, Caa3)      02/15/18         8.250         1,199,812   
  957     

Harkand Finance, Inc., Reg S, Rule 144A, Senior Secured Notes (Callable 03/28/16 @ 104.50)1,8

   (NR, NR)      03/28/19         7.500         798,696   
  475     

Oasis Petroleum, Inc., Company Guaranteed Notes (Callable 11/01/16 @ 103.25)

   (B+, B2)      11/01/21         6.500         475,000   
  895     

Oasis Petroleum, Inc., Global Company Guaranteed Notes (Callable 09/15/17 @ 103.44)5

   (B+, B2)      03/15/22         6.875         912,900   
  1,510     

PDC Energy, Inc., Global Company Guaranteed Notes (Callable 10/15/17 @ 103.88)

   (B-, B3)      10/15/22         7.750         1,585,500   
  1,500     

Stone Energy Corp., Global Company Guaranteed Notes (Callable 11/15/17 @ 103.75)

   (B-, B3)      11/15/22         7.500         1,312,500   
  1,124     

W&T Offshore, Inc., Global Company Guaranteed Notes (Callable 07/31/15 @ 104.25)

   (CCC+, Caa1)      06/15/19         8.500         785,395   
  650     

Whiting Petroleum Corp., Company Guaranteed Notes (Callable 12/15/20 @ 100.00)

   (BB, Ba2)      03/15/21         5.750         642,850   
             

 

 

 
                11,242,228   
             

 

 

 

 

Food & Drug Retailers (0.5%)

           
  850     

Rite Aid Corp., Rule 144A, Company Guaranteed Notes (Callable 04/01/18 @ 104.59)1

   (CCC+, B3)      04/01/23         6.125         878,688   
             

 

 

 

 

Food - Wholesale (0.5%)

           
  1,000     

Dole Food Co., Inc., Rule 144A, Senior Secured Notes (Callable 11/01/15 @ 103.63)1

   (CCC+, Caa1)      05/01/19         7.250         1,012,500   
  7     

Smithfield Foods, Inc., Rule 144A, Senior Unsecured Notes (Callable 08/01/16 @ 104.41)1

   (BB, B1)      08/01/21         5.875         7,245   
             

 

 

 
                1,019,745   
             

 

 

 

 

Forestry & Paper (0.0%)

           
  1,000     

Stone & Webster, Inc.2,3,9

   (NR, NR)      10/23/19         0.000         1,500   
             

 

 

 

 

Gaming (0.8%)

           
  580     

Choctaw Resort Development Enterprise, Rule 144A, Senior Unsecured Notes (Callable 07/31/15 @ 100.00)1

   (B-, Caa1)      11/15/19         7.250         577,100   
  750     

Safari Holding Verwaltungs GmbH, Rule 144A, Senior Secured Notes (Callable 02/15/17 @ 104.13)1,10

   (B, B2)      02/15/21         8.250         887,544   
             

 

 

 
                1,464,644   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

5


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2015 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Gas Distribution (2.5%)

           
$ 1,500     

Energy Transfer Equity LP, Senior Secured Notes

   (BB, Ba2)      10/15/20         7.500       $ 1,698,750   
  750     

Genesis Energy Finance Corp., Company Guaranteed Notes (Callable 06/15/19 @ 102.81)

   (B, B1)      06/15/24         5.625         731,250   
  350     

Genesis Energy Finance Corp., Global Company Guaranteed Notes (Callable 02/15/17 @ 102.88)

   (B, B1)      02/15/21         5.750         347,375   
  2,000     

Holly Energy Finance Corp., Global Company Guaranteed Notes (Callable 03/01/16 @ 103.25)

   (BB, B1)      03/01/20         6.500         2,005,000   
             

 

 

 
                4,782,375   
             

 

 

 

 

Health Facilities (1.7%)

           
  1,725     

Covenant Surgical Partners, Inc., Rule 144A, Senior Secured Notes (Callable 08/01/16 @ 106.56)1

   (B-, B3)      08/01/19         8.750         1,756,913   
  1,000     

Tenet Healthcare Corp., Global Senior Unsecured Notes

   (CCC+, B3)      04/01/22         8.125         1,096,000   
  300     

Tenet Healthcare Corp., Rule 144A, Senior Unsecured Notes1

   (CCC+, B3)      06/15/23         6.750         306,375   
             

 

 

 
                3,159,288   
             

 

 

 

 

Health Services (0.2%)

           
  360     

ExamWorks Group, Inc., Company Guaranteed Notes (Callable 04/15/18 @ 104.22)

   (B-, B3)      04/15/23         5.625         370,480   
             

 

 

 

 

Insurance Brokerage (2.2%)

           
  1,850     

A-S Merger Sub LLC, Rule 144A, Senior Unsecured Notes (Callable 12/15/15 @ 103.94)1

   (CCC+, Caa2)      12/15/20         7.875         1,961,000   
  775     

Hub Holdings Finance, Inc., 8.125% Cash, 8.875% PIK, Rule 144A, Senior Unsecured Notes (Callable 07/31/15 @ 102.00)1,6

   (CCC+, Caa2)      07/15/19         17.000         775,000   
  550     

HUB International Ltd., Rule 144A, Senior Unsecured Notes (Callable 10/01/16 @ 105.91)1

   (CCC+, Caa1)      10/01/21         7.875         562,375   
  900     

National Financial Partners Corp., Rule 144A, Senior Unsecured Notes (Callable 07/15/16 @ 106.75)1

   (CCC+, Caa2)      07/15/21         9.000         892,125   
             

 

 

 
                4,190,500   
             

 

 

 

 

Investments & Misc. Financial Services (2.1%)

           
  750     

Cabot Financial Luxembourg S.A., Rule 144A, Senior Secured Notes (Callable 10/01/15 @ 107.78)1,11

   (B+, B2)      10/01/19         10.375         1,289,457   
  1,450     

Jefferies Finance LLC, Rule 144A, Senior Unsecured Notes (Callable 04/01/16 @ 105.53)1

   (B+, B1)      04/01/20         7.375         1,431,875   
  400     

Jefferies Finance LLC, Rule 144A, Senior Unsecured Notes (Callable 04/15/17 @ 105.16)1

   (B, B1)      04/15/22         6.875         392,000   
  750     

Rialto Corp., Rule 144A, Company Guaranteed Notes (Callable 12/01/15 @ 103.50)1

   (B, B2)      12/01/18         7.000         783,750   
             

 

 

 
                3,897,082   
             

 

 

 

 

Media Content (1.4%)

           
  1,000     

Nexstar Broadcasting, Inc., Rule 144A, Company Guaranteed Notes (Callable 02/15/18 @ 103.06)1

   (B+, B3)      02/15/22         6.125         1,017,500   
  573     

Sinclair Television Group, Inc., Global Company Guaranteed Notes (Callable 10/01/17 @ 103.06)

   (B+, B1)      10/01/22         6.125         591,623   
  1,000     

Sinclair Television Group, Inc., Global Company Guaranteed Notes (Callable 11/01/16 @ 104.78)

   (B+, B1)      11/01/21         6.375         1,037,500   
             

 

 

 
                2,646,623   
             

 

 

 

 

Metals & Mining - Excluding Steel (3.6%)

           
  1,350     

Boart Longyear Management Pty. Ltd., Rule 144A, Company Guaranteed Notes (Callable 04/01/16 @ 103.50)1,5

   (CCC, Caa2)      04/01/21         7.000         897,750   
  230     

Boart Longyear Management Pty. Ltd., Rule 144A, Senior Secured Notes1

   (B-, B3)      10/01/18         10.000         219,650   
  1,050     

Eldorado Gold Corp., Rule 144A, Senior Unsecured Notes (Callable 12/15/16 @ 103.06)1

   (BB, Ba3)      12/15/20         6.125         1,044,750   
  1,400     

Global Brass & Copper, Inc., Global Senior Secured Notes (Callable 06/01/16 @ 104.75)

   (B+, B3)      06/01/19         9.500         1,536,500   
  1,370     

Noranda Aluminum Acquisition Corp., Global Company Guaranteed Notes (Callable 03/01/16 @ 105.50)

   (CCC, Caa2)      06/01/19         11.000         979,550   
  1,900     

Taseko Mines Ltd., Company Guaranteed Notes (Callable 07/31/15 @ 103.88)

   (B-, B3)      04/15/19         7.750         1,458,250   
  1,500     

Xinergy Corp., Rule 144A, Senior Secured Notes (Callable 07/31/15 @ 104.63)1,7

   (NR, NR)      05/15/19         9.250         667,500   
             

 

 

 
                6,803,950   
             

 

 

 

 

Oil Field Equipment & Services (4.6%)

           
  1,900     

Calfrac Holdings LP, Rule 144A, Company Guaranteed Notes (Callable 12/01/15 @ 103.75)1,5

   (BB-, B3)      12/01/20         7.500         1,763,960   
  1,825     

FTS International, Inc., Global Senior Secured Notes (Callable 05/01/17 @ 104.69)

   (CCC+, Caa2)      05/01/22         6.250         1,350,500   

 

See Accompanying Notes to Financial Statements.

 

6


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2015 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Oil Field Equipment & Services

           
$ 600     

Pacific Drilling V Ltd., Rule 144A, Senior Secured Notes (Callable 12/01/15 @ 103.63)1,5

   (B+, Caa1)      12/01/17         7.250       $ 519,000   
  950     

Parker Drilling Co., Global Company Guaranteed Notes (Callable 01/15/18 @ 103.38)

   (B+, B1)      07/15/22         6.750         824,125   
  1,150     

Pioneer Energy Services Corp., Global Company Guaranteed Notes (Callable 03/15/17 @ 104.59)

   (B+, B2)      03/15/22         6.125         925,750   
  1,500     

Shelf Drilling Holdings Ltd., Rule 144A, Secured Notes (Callable 07/31/15 @ 104.31)1,5

   (B+, Ba3)      11/01/18         8.625         1,342,500   
  1,600     

Sidewinder Drilling, Inc., Rule 144A, Senior Unsecured Notes (Callable 11/15/16 @ 104.88)1

   (CCC+, Caa1)      11/15/19         9.750         1,016,000   
  1,000     

Trinidad Drilling Ltd., Rule 144A, Company Guaranteed Notes (Callable 07/31/15 @ 103.94)1

   (BB, B1)      01/15/19         7.875         1,005,000   
             

 

 

 
                8,746,835   
             

 

 

 

 

Oil Refining & Marketing (3.1%)

           
  500     

CITGO Petroleum Corp., Rule 144A, Senior Secured Notes (Callable 08/15/17 @ 104.69)1

   (B+, B3)      08/15/22         6.250         493,750   
  2,000     

Coffeyville Finance, Inc., Global Company Guaranteed Notes (Callable 11/01/17 @ 103.25)

   (B+, B1)      11/01/22         6.500         2,010,000   
  975     

Northern Tier Finance Corp., Global Senior Secured Notes (Callable 11/15/15 @ 105.34)

   (BB-, B1)      11/15/20         7.125         1,009,125   
  1,850     

PBF Finance Corp., Global Senior Secured Notes (Callable 02/15/16 @ 104.13)5

   (BB+, Ba3)      02/15/20         8.250         1,965,625   
  300     

Western Refining, Inc., Global Company Guaranteed Notes (Callable 04/01/17 @ 103.13)

   (B+, B3)      04/01/21         6.250         303,750   
             

 

 

 
                5,782,250   
             

 

 

 

 

Packaging (1.8%)

           
  500     

Ardagh Holdings U.S.A., Inc., Rule 144A, Company Guaranteed Notes (Callable 01/31/17 @ 103.38)1

   (CCC+, Caa1)      01/31/21         6.750         513,750   
  88     

Ardagh Holdings U.S.A., Inc., Rule 144A, Senior Unsecured Notes (Callable 11/15/16 @ 103.50)1

   (NR, Caa1)      11/15/20         7.000         90,441   
  300     

Ardagh Packaging Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 10/15/15 @ 104.63)1,10

   (CCC+, Caa1)      10/15/20         9.250         355,987   
  1,850     

Reynolds Group Issuer LLC, Global Company Guaranteed Notes (Callable 02/15/16 @ 104.13)

   (CCC+, Caa2)      02/15/21         8.250         1,928,625   
  450     

SIG Combibloc Holdings S.C.A., Rule 144A, Senior Unsecured Notes (Callable 02/15/18 @ 103.88)1,10

   (B-, Caa1)      02/15/23         7.750         523,050   
             

 

 

 
                3,411,853   
             

 

 

 

 

Personal & Household Products (0.8%)

           
  1,125     

NBTY, Inc., Global Company Guaranteed Notes (Callable 07/31/15 @ 104.50)

   (B-, B3)      10/01/18         9.000         1,165,781   
  400     

Prestige Brands, Inc., Global Company Guaranteed Notes (Callable 02/01/16 @ 104.06)

   (B-, Caa1)      02/01/20         8.125         429,000   
             

 

 

 
                1,594,781   
             

 

 

 

 

Pharmaceuticals (1.3%)

           
  800     

Capsugel S.A., 7.000 Cash%, 7.750% PIK, Rule 144A, Senior Unsecured Notes (Callable 07/16/15 @ 102.00)1,6

   (B-, Caa1)      05/15/19         14.750         815,592   
  600     

Endo Ltd., Rule 144A, Company Guaranteed Notes (Callable 07/15/18 @ 104.50)1

   (B, B1)      07/15/23         6.000         614,250   
  246     

inVentiv Health, Inc., 10.000% Cash, 12.000% PIK, Rule 144A, Company Guaranteed Notes (Callable 08/15/15 @ 105.00)1,6

   (CCC, Caa2)      08/15/18         22.000         255,757   
  168     

inVentiv Health, Inc., Rule 144A, Company Guaranteed Notes (Callable 07/31/15 @ 105.00)1

   (CCC, Caa3)      08/15/18         11.000         162,960   
  625     

Valeant Pharmaceuticals International, Rule 144A, Company Guaranteed Notes (Callable 10/15/16 @ 103.19)1

   (B, B1)      10/15/20         6.375         659,765   
             

 

 

 
                2,508,324   
             

 

 

 

 

Printing & Publishing (1.0%)

           
  1,790     

Harland Clarke Holdings Corp., Rule 144A, Senior Secured Notes (Callable 08/01/15 @ 104.88)1

   (B+, B1)      08/01/18         9.750         1,872,788   
             

 

 

 

 

Property & Casualty Insurance (0.5%)

           
  1,000     

York Risk Services Holding Corp., Rule 144A, Company Guaranteed Notes (Callable 10/01/17 @ 106.38)1

   (CCC+, Caa2)      10/01/22         8.500         885,000   
             

 

 

 

 

Real Estate Development & Management (0.3%)

           
  500     

DuPont Fabros Technology LP, Company Guaranteed Notes (Callable 06/15/18 @ 104.22)

   (BB, Ba1)      06/15/23         5.625         493,750   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

7


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2015 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Real Estate Investment Trusts (2.0%)

           
$ 1,398     

iStar Financial, Inc., Senior Unsecured Notes (Callable 07/01/16 @ 102.50)

   (B+, B2)      07/01/19         5.000       $ 1,384,020   
  500     

MPT Finance Corp., Company Guaranteed Notes (Callable 02/15/17 @ 103.19)

   (BBB-, Ba1)      02/15/22         6.375         535,000   
  1,175     

QTS Finance Corp., Global Company Guaranteed Notes (Callable 08/01/17 @ 104.41)

   (B+, B2)      08/01/22         5.875         1,185,281   
  575     

The Geo Group, Inc., Global Company Guaranteed Notes (Callable 02/15/16 @ 103.31)

   (BB-, Ba3)      02/15/21         6.625         603,750   
             

 

 

 
                3,708,051   
             

 

 

 

 

Recreation & Travel (0.1%)

           
  250     

Six Flags Entertainment Corp., Rule 144A, Company Guaranteed Notes (Callable 01/15/16 @ 103.94)1

   (BB-, B3)      01/15/21         5.250         256,875   
             

 

 

 

 

Software - Services (4.9%)

           
  685     

Audatex North America, Inc., Rule 144A, Company Guaranteed Notes (Callable 11/01/18 @ 103.06)1

   (BB-, Ba3)      11/01/23         6.125         706,406   
  1,523     

MedAssets, Inc., Global Company Guaranteed Notes (Callable 07/31/15 @ 104.00)

   (B, B3)      11/15/18         8.000         1,580,935   
  1,000     

NeuStar, Inc., Global Company Guaranteed Notes (Callable 01/15/18 @ 102.25)5

   (B+, B2)      01/15/23         4.500         887,500   
  900     

Optimas OE Solutions, Inc., Rule 144A, Senior Secured Notes (Callable 06/01/18 @ 104.31)1

   (B-, B3)      06/01/21         8.625         918,000   
  1,050     

Sophia Finance, Inc., Rule 144A, Company Guaranteed Notes (Callable 07/31/15 @ 107.31)1

   (CCC+, Caa1)      01/15/19         9.750         1,118,250   
  445     

Sophia Holding Finance, Inc., PIK, Rule 144A, Company Guaranteed Notes (Callable 07/31/15 @ 102.00)1

   (CCC+, Caa2)      12/01/18         9.625         452,231   
  1,450     

SS&C Technologies Holdings, Inc., Rule 144A, Senior Unsecured Notes (Callable 07/15/18 @ 104.41)1

   (B+, B3)      07/15/23         5.875         1,450,000   
  975     

Sungard Availability Services Capital, Inc., Rule 144A, Company Guaranteed Notes (Callable 04/01/19 @ 104.38)1

   (CCC+, Caa1)      04/01/22         8.750         716,625   
  1,698     

Syniverse Holdings, Inc., Global Company Guaranteed Notes (Callable 07/31/15 @ 104.56)

   (CCC+, Caa1)      01/15/19         9.125         1,502,730   
             

 

 

 
                9,332,677   
             

 

 

 

 

Specialty Retail (0.3%)

           
  500     

Beverages & More, Inc., Rule 144A, Senior Secured Notes (Callable 11/15/15 @ 105.00)1

   (CCC+, Caa2)      11/15/18         10.000         499,375   
  150     

IT Holding Finance S.A., Company Guaranteed Notes3,10,7

   (NR, NR)      11/15/25         9.875         1,646   
  200     

Takko Luxembourg 2 S.C.A., Rule 144A, Senior Secured Notes (Callable 04/15/16 @ 104.94)1,10

   (CCC, Caa1)      04/15/19         9.875         105,404   
             

 

 

 
                606,425   
             

 

 

 

 

Steel Producers/Products (0.6%)

           
  1,200     

JMC Steel Group, Inc., Rule 144A, Senior Unsecured Notes (Callable 07/31/15 @ 104.13)1,5

   (B-, Caa1)      03/15/18         8.250         1,102,500   
             

 

 

 

 

Support - Services (4.4%)

           
  1,075     

CoreLogic, Inc., Global Company Guaranteed Notes (Callable 06/01/16 @ 103.63)

   (B+, Ba3)      06/01/21         7.250         1,142,187   
  750     

Garda World Security Corp., Rule 144A, Company Guaranteed Notes (Callable 11/15/16 @ 105.44)1

   (CCC+, Caa1)      11/15/21         7.250         723,750   
  1,731     

H&E Equipment Services, Inc., Global Company Guaranteed Notes (Callable 09/01/17 @ 103.50)5

   (BB-, B3)      09/01/22         7.000         1,793,749   
  800     

Light Tower Rentals, Inc., Rule 144A, Senior Secured Notes (Callable 08/01/16 @ 106.09)1

   (B, B2)      08/01/19         8.125         664,000   
  1,000     

NCSG Crane & Heavy Haul Services, Inc., Rule 144A, Secured Notes (Callable 08/15/17 @ 109.50)1

   (B-, Caa2)      08/15/19         9.500         655,000   
  600     

Outerwall, Inc., Global Company Guaranteed Notes (Callable 06/15/17 @ 104.41)

   (BB-, Ba3)      06/15/21         5.875         564,000   
  950     

Safway Finance Corp., Rule 144A, Secured Notes (Callable 07/31/15 @ 103.50)1

   (B+, B3)      05/15/18         7.000         975,925   
  875     

Sterigenics-Nordion Holdings LLC, Rule 144A, Senior Unsecured Notes (Callable 05/15/18 @ 104.88)1

   (CCC+, Caa1)      05/15/23         6.500         890,313   
  915     

United Rentals North America, Inc., Global Company Guaranteed Notes (Callable 05/15/16 @ 103.69)

   (BB-, B1)      05/15/20         7.375         980,871   
             

 

 

 
                8,389,795   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

8


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2015 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

CORPORATE BONDS

           

 

Tech Hardware & Equipment (3.8%)

           
$ 1,000     

Anixter, Inc., Global Company Guaranteed Notes

   (BB, Ba3)      05/01/19         5.625       $ 1,066,250   
  700     

Avaya, Inc., Rule 144A, Senior Secured Notes (Callable 07/31/15 @ 103.50)1

   (B, B1)      04/01/19         7.000         687,750   
  750     

Avaya, Inc., Rule 144A, Senior Secured Notes (Callable 07/31/15 @ 104.50)1,5

   (B, B1)      04/01/19         9.000         768,750   
  1,550     

Belden, Inc., Rule 144A, Company Guaranteed Notes (Callable 09/01/17 @ 102.75)1

   (B+, Ba3)      09/01/22         5.500         1,546,125   
  1,700     

Brightstar Corp., Rule 144A, Company Guaranteed Notes (Callable 07/31/15 @ 104.75)1

   (BB+, Ba1)      12/01/16         9.500         1,751,000   
  525     

CDW Finance Corp., Company Guaranteed Notes (Callable 06/01/24 @ 100.00)

   (B+, B1)      12/01/24         5.500         521,062   
  1,000     

Dell, Inc., Global Senior Unsecured Notes

   (BB+, Ba3)      04/15/38         6.500         955,000   
             

 

 

 
                7,295,937   
             

 

 

 

 

Telecom - Satellite (1.5%)

           
  482     

Hughes Satellite Systems Corp., Global Company Guaranteed Notes

   (BB-, B3)      06/15/21         7.625         532,104   
  750     

Intelsat Jackson Holdings S.A., Global Company Guaranteed Notes (Callable 04/01/16 @ 103.75)

   (B+, B3)      04/01/21         7.500         744,375   
  600     

Intelsat Jackson Holdings S.A., Global Company Guaranteed Notes (Callable 07/31/15 @ 103.63)

   (B+, B3)      04/01/19         7.250         611,250   
  250     

Intelsat Luxembourg S.A., Global Company Guaranteed Notes (Callable 06/01/16 @ 103.38)

   (CCC+, Caa2)      06/01/18         6.750         237,500   
  800     

Intelsat Luxembourg S.A., Global Company Guaranteed Notes (Callable 06/01/17 @ 103.88)5

   (CCC+, Caa2)      06/01/21         7.750         671,000   
             

 

 

 
                2,796,229   
             

 

 

 

 

Telecom - Wireless (1.6%)

           
  225     

Sprint Corp., Global Company Guaranteed Notes

   (B+, B2)      09/15/23         7.875         220,005   
  650     

Sprint Corp., Global Company Guaranteed Notes

   (B+, B2)      06/15/24         7.125         604,565   
  700     

Sprint Corp., Global Company Guaranteed Notes (Callable 11/15/24 @ 100.00)

   (B+, B2)      02/15/25         7.625         661,500   
  1,575     

T-Mobile U.S.A., Inc., Global Company Guaranteed Notes (Callable 09/01/19 @ 103.19)

   (BB, Ba3)      03/01/25         6.375         1,614,375   
             

 

 

 
                3,100,445   
             

 

 

 

 

Telecom - Wireline Integrated & Services (0.2%)

           
  350     

Hellas Telecommunications Luxembourg II S.C.A., Rule 144A, Subordinated Notes1,2,3,7,9

   (NR, NR)      01/15/15         0.000           
  350     

Zayo Capital, Inc., Rule 144A, Company Guaranteed Notes (Callable 04/01/18 @ 104.50)1

   (B-, Caa1)      04/01/23         6.000         346,570   
             

 

 

 
                346,570   
             

 

 

 

 

Telecommunications Equipment (0.5%)

           
  875     

CommScope Technologies Finance LLC, Rule 144A, Senior Unsecured Notes (Callable 06/15/20 @ 103.00)1

   (B, B2)      06/15/25         6.000         873,906   
             

 

 

 

 

Theaters & Entertainment (1.8%)

           
  775     

AMC Entertainment, Inc., Global Company Guaranteed Notes (Callable 02/15/17 @ 104.41)

   (B, B3)      02/15/22         5.875         790,500   
  650     

Carmike Cinemas, Inc., Rule 144A, Secured Notes (Callable 06/15/18 @ 104.50)1

   (BB, B1)      06/15/23         6.000         658,125   
  1,815     

National CineMedia LLC, Global Senior Unsecured Notes (Callable 07/15/16 @ 103.94)

   (B, B2)      07/15/21         7.875         1,910,287   
             

 

 

 
                3,358,912   
             

 

 

 

 

Transport Infrastructure/Services (0.5%)

           
  400     

Navios Maritime Finance II U.S., Inc., Rule 144A, Senior Secured Notes (Callable 01/15/17 @ 105.53)1

   (BB-, B1)      01/15/22         7.375         348,000   
  725     

Teekay Offshore Finance Corp., Global Senior Unsecured Notes

   (NR, NR)      07/30/19         6.000         657,938   
             

 

 

 
                1,005,938   
             

 

 

 

 

TOTAL CORPORATE BONDS (Cost $154,858,772)

              147,370,546   
             

 

 

 

 

BANK LOANS (12.5%)

           

 

Auto Parts & Equipment (0.8%)

           
  750     

Jason, Inc.12

   (CCC+, Caa1)      06/30/22         9.000         691,249   
  780     

U.S. Farathane LLC12

   (B+, B2)      12/23/21         6.750         787,800   
             

 

 

 
                1,479,049   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

9


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2015 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

BANK LOANS

           

 

Building Materials (0.6%)

           
$ 1,134     

Panolam Industries International, Inc.12

   (BB-, B2)      08/23/17         7.750       $ 1,125,740   
             

 

 

 

 

Chemicals (2.0%)

           
  1,750     

AZ Chem U.S., Inc.12

   (B-, B1)      06/12/22         7.500         1,748,906   
  1,975     

Ravago Holdings America, Inc.12

   (BB+, B2)      12/20/20         5.500         1,989,823   
             

 

 

 
                3,738,729   
             

 

 

 

 

Diversified Capital Goods (0.5%)

           
  930     

Dynacast International LLC12

   (B-, Caa1)      01/30/23         9.500         932,325   
             

 

 

 

 

Electronics (0.7%)

           
  1,406     

FIDJI Luxembourg (BC4) Sarl12

   (BB-, B1)      12/24/20         6.250         1,408,008   
             

 

 

 

 

Food - Wholesale (0.2%)

           
  500     

Del Monte Foods, Inc.12

   (CCC+, Caa1)      08/18/21         8.250         455,315   
             

 

 

 

 

Gaming (0.4%)

           
  750     

CBAC Borrower LLC12

   (B-, B3)      07/02/20         8.250         695,625   
             

 

 

 

 

Health Services (0.4%)

           
  750     

Phillips-Medisize Corp.12

   (CCC+, Caa2)      06/16/22         8.250         750,469   
             

 

 

 

 

Investments & Misc. Financial Services (1.3%)

           
  1,000     

Ascensus, Inc.12

   (CCC+, Caa1)      12/02/20         9.000         1,002,505   
  475     

Liquidnet Holdings, Inc.12

   (B, B3)      05/22/19         7.750         460,750   
  1,000     

Mergermarket U.S.A., Inc.12

   (CCC+, Caa2)      02/04/22         7.500         937,500   
             

 

 

 
                2,400,755   
             

 

 

 

 

Machinery (0.6%)

           
  1,250     

CPM Holdings, Inc.12

   (B, Caa1)      04/10/23         10.250         1,256,250   
             

 

 

 

 

Media Content (0.3%)

           
  500     

DLG Acquisitions Ltd.10,12

   (B-, Caa2)      06/30/22         8.250         551,529   
             

 

 

 

 

Oil Field Equipment & Services (0.4%)

           
  1,000     

Shelf Drilling Holdings Ltd.12

   (B+, B1)      10/08/18         10.000         711,665   
             

 

 

 

 

Recreation & Travel (1.0%)

           
  985     

Abercrombie & Kent U.S. Group Holdings, Inc.3,12

   (NR, NR)      12/09/18         5.000         920,975   
  1,000     

Legendary Pictures Funding LLC12

   (NR, NR)      04/17/20         7.000         1,000,000   
             

 

 

 
                1,920,975   
             

 

 

 

 

Software - Services (1.0%)

           
  1,000     

Deltek, Inc.12

   (CCC+, Caa2)      06/17/23         8.500         1,007,500   
  988     

Intralinks, Inc.3,12

   (BB, B2)      02/21/19         7.250         985,031   
             

 

 

 
                1,992,531   
             

 

 

 

 

Specialty Retail (0.8%)

           
  1,500     

BJ’s Wholesale Club, Inc.12

   (CCC, Caa2)      03/26/20         8.500         1,516,042   
             

 

 

 

 

Telecom - Wireless (0.4%)

           
  757     

Maritime Telecommunications Network, Inc.12

   (B+, NR)      03/04/16         8.250         756,772   
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

10


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2015 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 

 

BANK LOANS

           

 

Telecom - Wireline Integrated & Services (0.5%)

           
$ 1,000     

Omnitracs, Inc.12

   (CCC+, Caa1)      05/25/21         8.750       $ 987,500   
             

 

 

 

 

Theaters & Entertainment (0.2%)

           
  1,000     

CKX, Inc.12

   (CCC-, Caa1)      06/21/17         9.000         412,500   
             

 

 

 

 

Transport Infrastructure/Services (0.4%)

           
  680     

PODS LLC12

   (CCC+, Caa1)      02/02/23         9.250         690,625   
             

 

 

 

 

TOTAL BANK LOANS (Cost $24,665,436)

              23,782,404   
             

 

 

 

 

ASSET BACKED SECURITIES (7.3%)

           

 

Collateralized Debt Obligations (7.3%)

           
  1,000     

Carlyle Global Market Strategies CLO Ltd., 2012-4A, Rule 144A1,9

   (NR, NR)      01/20/25         0.000         897,554   
  2,000     

CIFC Funding Ltd., 2012-2A, Rule 144A1,12

   (BB-, NR)      12/05/24         6.034         2,000,631   
  1,250     

Eaton Vance CLO Ltd., 2014-1A, Rule 144A1,12

   (NR, Ba3)      07/15/26         5.306         1,156,186   
  1,000     

ECP CLO Ltd., 2013-5A, Rule 144A1,12

   (BB, NR)      01/20/25         4.475         882,209   
  1,000     

Galaxy XIV CLO Ltd., 2012-14A, Rule 144A1,12

   (BB, NR)      11/15/24         5.657         978,990   
  1,000     

ING Investment Management CLO Ltd., 2012-1RA, Rule 144A1,12

   (B, NR)      03/14/22         6.776         995,712   
  1,000     

Jamestown CLO III Ltd., 2013-3A, Rule 144A1,12

   (BB-, NR)      01/15/26         4.875         895,218   
  1,000     

JFIN CLO Ltd., 2013-1A, Rule 144A1,12

   (BB, NR)      01/20/25         5.025         851,864   
  1,500     

Ocean Trails CLO IV, 2013-4A, Rule 144A1,12

   (B, NR)      08/13/25         6.177         1,316,002   
  1,000     

Shackleton I CLO Ltd., 2012-1A, Rule 144A1,12

   (BB, NR)      08/14/23         6.480         982,679   
  700     

Stewart Park CLO Ltd., 2015-1A, Rule 144A1,9

   (NR, NR)      04/15/26         0.000         715,397   
  1,325     

Venture XVII CLO Ltd., 2014-17A, Rule 144A1,12

   (NR, Ba2)      07/15/26         5.275         1,210,775   
  1,000     

WhiteHorse VIII Ltd., 2014-1A, Rule 144A1,12

   (NR, Ba3)      05/01/26         4.828         876,239   
             

 

 

 

 

TOTAL ASSET BACKED SECURITIES (Cost $13,865,207)

              13,759,456   
             

 

 

 

Number of

Shares

                           

 

 

 

COMMON STOCKS (0.0%)

           

 

Building Materials (0.0%)

           
  372     

Dayton Superior Corp.2,3,13

                
             

 

 

 

 

Gaming (0.0%)

           
  36,250     

Majestic Holdco LLC3,13

              8,610   
  1,500     

Progressive Gaming International Corp.3,13

              8   
             

 

 

 
                8,618   
             

 

 

 

 

Media Content (0.0%)

           
  26,986     

Cumulus Media, Inc., Class A5,13

              54,781   
             

 

 

 

 

TOTAL COMMON STOCKS (Cost $323,430)

              63,399   
             

 

 

 

 

PREFERRED STOCK (0.0%)

           

 

Building Materials (0.0%)

           
  413     

Dayton Superior Corp.2,3,13 (Cost $156,000)

                
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

11


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2015 (unaudited)

 

 

Number of

Shares

                           

Value

 

 

SHORT-TERM INVESTMENTS (10.3%)

           
  14,619,471     

State Street Navigator Prime Portfolio, 0.18%14

            $ 14,619,471   

Par

(000)

             

Maturity

    

Rate%

        
$ 4,974     

State Street Bank and Trust Co. Euro Time Deposit

        07/01/15         0.010         4,973,956   
             

 

 

 

 

TOTAL SHORT-TERM INVESTMENTS (Cost $19,593,427)

              19,593,427   
             

 

 

 

 

TOTAL INVESTMENTS AT VALUE (107.9%) (Cost $213,462,272)

              204,569,232   

 

LIABILITIES IN EXCESS OF OTHER ASSETS (-7.9%)

              (15,019,426
             

 

 

 

 

NET ASSETS (100.0%)

            $ 189,549,806   
             

 

 

 

INVESTMENT ABBREVIATION

NR = Not Rated

 

 

 

Credit ratings given by the Standard & Poor’s Division of The McGraw-Hill Companies, Inc. (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) are unaudited.

 

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 June 30, 2015, these securities amounted to a value of $86,891,820 or 45.8% of net assets.

 

2  Not readily marketable security; security is valued at fair value as determined in good faith by, or under the direction of, the Board of Directors.

 

3  Illiquid security.

 

4  Par value of security held is less than 1,000.

 

5  Security or portion thereof is out on loan (See note 2-I).

 

6  PIK: Payment-in-kind security for which part of the income earned may be paid as additional principal.

 

7  Bond is currently in default.

 

8  REG S: Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.

 

9  Zero-coupon security.

 

10  This security is denominated in Euro.

 

11  This security is denominated in British Pound.

 

12  Variable rate obligations - The interest rate is the rate as of June 30, 2015.

 

13  Non-income producing security.

 

14  Represents security purchased with cash collateral received for securities on loan. The rate shown is the annualized one-day yield at June 30, 2015.

Forward Foreign Currency Contracts

 

Forward Foreign
Currency to be
Purchased (Local)

    

Forward Foreign
Currency to be
Sold (Local)

     Expiration
Date
    

Counterparty

   Value on
Settlement Date
     Current
Value/Notional
     Net Unrealized
Appreciation
(Depreciation)
 

EUR

     750,000       USD      839,745         07/15/15       Morgan Stanley    $ 839,745       $ 835,790       $ (3,955

GBP

     25,000       USD      39,107         07/15/15       Morgan Stanley      39,107         39,314         207   

USD

     3,343,917       EUR      3,135,500         07/15/15       Morgan Stanley      (3,343,917      (3,494,158      (150,241

USD

     1,395,488       GBP      942,000         07/15/15       Morgan Stanley      (1,395,488      (1,481,350      (85,862
                       

 

 

 
                        $ (239,851
                       

 

 

 

Currency Abbreviations:

EUR = Euro

GBP = British Pound

USD = United States Dollar

 

See Accompanying Notes to Financial Statements.

 

12


Credit Suisse Asset Management Income Fund, Inc.

Statement of Assets and Liabilities

June 30, 2015 (unaudited)

 

 

Assets

  

Investments at value, including collateral for securities on loan of $14,619,471
(Cost $213,462,272) (Note 2)

   $         204,569,232 1 

Cash

     84,393   

Foreign currency at value (cost $271,770)

     284,399   

Dividend and interest receivable

     3,193,840   

Receivable for investments sold

     1,327,534   

Unrealized appreciation on forward currency contracts (Note 2)

     207   

Prepaid expenses and other assets

     17,875   
  

 

 

 

Total assets

     209,477,480   
  

 

 

 

Liabilities

  

Investment advisory fee payable (Note 3)

     210,317   

Administrative services fee payable (Note 3)

     2,805   

Payable upon return of securities loaned (Note 2)

     14,619,471   

Payable for investments purchased

     4,709,500   

Unrealized depreciation on forward currency contracts (Note 2)

     240,058   

Directors’ fee payable

     52,549   

Accrued expenses

     92,974   
  

 

 

 

Total liabilities

     19,927,674   
  

 

 

 

Net Assets

  

Applicable to 52,257,211 shares outstanding

   $ 189,549,806   
  

 

 

 

Net Assets

  

Capital stock, $.001 par value (Note 6)

     52,257   

Paid-in capital (Note 6)

     234,038,673   

Accumulated net investment loss

     (449,884

Accumulated net realized loss on investments and foreign currency transactions

     (34,972,168

Net unrealized depreciation from investments and foreign currency translations

     (9,119,072
  

 

 

 

Net assets

   $ 189,549,806   
  

 

 

 

Net Asset Value Per Share ($189,549,806 / 52,257,211)

     $3.63   
  

 

 

 

Market Price Per Share

     $3.20   
  

 

 

 

 

 

1 Including $14,241,860 of securities on loan.

 

See Accompanying Notes to Financial Statements.

 

13


Credit Suisse Asset Management Income Fund, Inc.

Statement of Operations

For the Six Months Ended June 30, 2015 (unaudited)

 

 

Investment Income

  

Interest

   $         7,164,515   

Securities lending (net of rebates)

     49,186   

Foreign taxes withheld

     (188
  

 

 

 

Total investment income

     7,213,513   
  

 

 

 

Expenses

  

Investment advisory fees (Note 3)

     418,858   

Administrative services fees (Note 3)

     27,001   

Directors’ fees

     64,522   

Printing fees

     38,830   

Transfer agent fees

     25,152   

Audit and tax fees

     24,856   

Legal fees

     21,438   

Custodian fees

     12,850   

Stock exchange listing fees

     9,395   

Insurance expense

     3,353   

Commitment fees (Note 4)

     2,335   

Miscellaneous expense

     4,902   
  

 

 

 

Total expenses

     653,492   
  

 

 

 

Net investment income

     6,560,021   
  

 

 

 

Net Realized and Unrealized Gain (Loss) from Investments and Foreign Currency Related Items

  

Net realized gain from investments

     898,918   

Net realized gain from foreign currency transactions

     687,414   

Net change in unrealized appreciation (depreciation) from investments

     (624,842

Net change in unrealized appreciation (depreciation) from foreign currency translations

     (416,536
  

 

 

 

Net realized and unrealized gain from investments and foreign currency related items

     544,954   
  

 

 

 

Net increase in net assets resulting from operations

   $ 7,104,975   
  

 

 

 

 

See Accompanying Notes to Financial Statements.

 

14


Credit Suisse Asset Management Income Fund, Inc.

Statement of Changes in Net Assets

 

 

     For the Six Months
Ended

   June 30, 2015  
(unaudited)
     For the Year
Ended
  December 31, 2014  
 

From Operations

     

Net investment income

   $ 6,560,021       $ 13,182,736   

Net realized gain from investments and foreign currency transactions

     1,586,332         2,123,281   

Net change in unrealized appreciation (depreciation) from investments and foreign currency translations

     (1,041,378      (12,386,485
  

 

 

    

 

 

 

Net increase in net assets resulting from operations

     7,104,975         2,919,532   
  

 

 

    

 

 

 

From Dividends and Distributions

     

Dividends from net investment income

     (6,897,952      (14,153,373

Return of Capital

             (265,864
  

 

 

    

 

 

 

Net decrease in net assets resulting from dividends and distributions

     (6,897,952      (14,419,237
  

 

 

    

 

 

 

From Capital Share Transactions (Note 6)

     

Issuance of 0 and 16,858 shares through the directors compensation plan (Note 3)

             62,984   
  

 

 

    

 

 

 

Net increase in net assets from capital share transactions

             62,984   
  

 

 

    

 

 

 

Net increase (decrease) in net assets

     207,023         (11,436,721

Net Assets

     

Beginning of period

     189,342,783         200,779,504   
  

 

 

    

 

 

 

End of period

   $         189,549,806       $         189,342,783   
  

 

 

    

 

 

 

Accumulated net investment loss

   $ (449,884    $ (111,953
  

 

 

    

 

 

 

 

See Accompanying Notes to Financial Statements.

 

15


Credit Suisse Asset Management Income Fund, Inc.

Financial Highlights

 

 

    For the Six Months
Ended
June 30, 2015

(unaudited)
    For the Year Ended December 31,  
      2014     2013     2012     2011     2010  

Per share operating performance

           

Net asset value, beginning of period

  $ 3.62      $ 3.84      $ 3.80      $ 3.60      $ 3.70      $ 3.56   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INVESTMENT OPERATIONS

           

Net investment income

    0.13        0.25        0.28        0.32        0.30        0.32   

Net gain (loss) on investments and foreign currency related items (both realized and unrealized)

    0.01        (0.19     0.05        0.20        (0.11     0.17   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment activities

    0.14        0.06        0.33        0.52        0.19        0.49   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LESS DIVIDENDS AND DISTRIBUTIONS

           

Dividends from net investment income

    (0.13     (0.27     (0.29     (0.32     (0.29     (0.35

Return of capital

           (0.01     (0.01                     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and distributions

    (0.13     (0.28     (0.30     (0.32     (0.29     (0.35
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

           

Increase to net asset value due to shares issued through at-the-market offerings

                  0.01                        
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 3.63      $ 3.62      $ 3.84      $ 3.80      $ 3.60      $ 3.70   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Per share market value, end of period

  $ 3.20      $ 3.29      $ 3.56      $ 4.03      $ 3.65      $ 3.56   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL INVESTMENT RETURN1

           

Net asset value

    4.45     1.92     9.34     14.95     5.35     14.71

Market value

    1.32     (0.09 )%      (4.42 )%      20.24     11.02     16.94

RATIOS AND SUPPLEMENTAL DATA

           

Net assets, end of period (000s omitted)

  $ 189,550      $ 189,343      $ 200,780      $ 190,673      $ 180,011      $ 184,943   

Ratio of expenses to average net assets

    0.69 %2      0.71     0.76     0.75     0.73     0.76

Ratio of expenses to average net assets excluding interest expense

    0.69 %2                                    

Ratio of net investment income to average net assets

    6.95 %2      6.60     7.40     8.49     8.09     8.76

Portfolio turnover rate

    27     67     69     67     57     86

 

 

1  Total investment return at net asset value is based on changes in the net asset value of Fund shares and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the fund’s dividend reinvestment program. Total investment return at market value is based on changes in the market price at which the Fund’s shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the Fund’s dividend reinvestment program. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on share price and NAV. Total returns for periods less than one year are not annualized.
2  Annualized.

 

See Accompanying Notes to Financial Statements.

 

16


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements

June 30, 2015 (unaudited)

 

 

Note 1. Organization

Credit Suisse Asset Management Income Fund, Inc. (the “Fund”) was incorporated on February 11, 1987 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The investment objective of the Fund is to provide current income consistent with the preservation of capital.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Fund is considered an investment company for financial reporting purposes under GAAP and follows Accounting Standard Codification (“ASC”) Topic 946 — Financial Services — Investment Companies.

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. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Structured note agreements are valued in accordance with a dealer-supplied valuation based on changes in the value of the underlying index. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Forward contracts are valued at the London closing spot rates and the London closing forward point rates on a daily basis. The currency forward contract pricing model derives the differential in point rates to the expiration date of the forward and calculates its present value. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The Fund may utilize a service provided by an independent third party which has been approved by the Board of Directors (the “Board”) to fair value certain securities. When fair value pricing is employed, the prices of securities used by the Fund to calculate its net asset value may differ from quoted or published prices for the same securities. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the investment adviser to be unreliable, the market price may be determined by the investment adviser using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved and established by the Board.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

17


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2015 (unaudited)

 

 

Note 2. Significant Accounting Policies

 

GAAP established a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at each measurement date. These inputs are summarized in the three broad levels listed below:

 

    Level 1 — quoted prices in active markets for identical investments

 

    Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

    Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of June 30, 2015 in valuing the Fund’s assets and liabilities carried at fair value:

 

Assets

   Level 1      Level 2      Level 3      Total  

Investments in Securities

           

Corporate Bonds

   $       $ 147,223,993       $ 146,553       $ 147,370,546   

Bank Loans

             15,556,761         8,225,643         23,782,404   

Asset Backed Securities

             13,759,456                 13,759,456   

Common Stocks

     54,789         8,610                 63,399   

Preferred Stocks

                     0 1       0 1 

Short-term Investments

             19,593,427                 19,593,427   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 54,789       $ 196,142,247       $ 8,372,196       $ 204,569,232   
  

 

 

    

 

 

    

 

 

    

 

 

 

Other Financial Instruments*

           

Forward Foreign Currency Contracts

   $       $ 207       $       $ 207   

Liabilities

   Level 1      Level 2      Level 3      Total  

Other Financial Instruments*

           

Forward Foreign Currency Contracts

   $       $ 240,058       $       $ 240,058   

 

  1  Included a zero valued security.
  * Other financial instruments include unrealized appreciation (depreciation) on forward foreign currency contracts.

The following is a reconciliation of investments as of June 30, 2015 in which significant unobservable inputs were used in determining value. Transfers in or out of Level 3 represent the end of the period value of any security or instrument where a change in the level has occurred from the beginning to the end of the period.

 

     Corporate
Bonds
     Bank
Loans
     Common
Stocks
     Preferred
Stock
     Total  

Balance as of December 31, 2014

   $ 3,769       $ 1,700,650       $ 209,052       $       $ 1,913,471   

Accrued discounts (premiums)

             28,641                         28,641   

Purchases

             3,894,150                         3,894,150   

Sales

     (12      (25,000      (285,000              (310,012

Realized gain (loss)

             587         285,000                 285,587   

Change in unrealized appreciation (depreciation)

     (2,250      (289,178      (200,443              (491,871

Transfers into Level 3

     145,046         3,328,293                         3,473,339   

Transfers out of Level 3

             (412,500      (8,609              (421,109
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance as of June 30, 2015

   $ 146,553       $ 8,225,643       $               $ 8,372,196   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net change in unrealized appreciation (depreciation)
from investments still held as of June 30, 2015

   $ (2,250    $ 94,744       $       $       $ 92,494   

 

18


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2015 (unaudited)

 

 

Note 2. Significant Accounting Policies

 

Quantitative Disclosure About Significant Unobservable Inputs

 

Asset Class

   Fair Value
at 06/30/2015
    

Valuation
Technique

  

Unobservable
Input

   Range  

Corporate Bonds

   $ 146,553       Market Approach    Single Broker Quote      NA   

Bank Loans

   $ 8,225,643       Market Approach    Single Broker Quote      NA   

Each fair value determination is based on a consideration of relevant factors, including both observable and unobservable inputs. Observable and unobservable inputs Credit Suisse Asset Management LLC, the Fund’s investment adviser (“Credit Suisse” or the “Adviser”) considers may include (i) the existence of any contractual restrictions on the disposition of securities; (ii) information obtained from the company, which may include an analysis of the company’s financial statements, the company’s products or intended markets or the company’s technologies; (iii) the price of the same or similar security negotiated at arm’s length in an issuer’s completed subsequent round of financing; (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies; or (v) a probability and time value adjusted analysis of contractual term. Where available and appropriate, multiple valuation methodologies are applied to confirm fair value. Significant unobservable inputs identified by the Adviser are often used in the fair value determination. A significant change in any of these inputs may result in a significant change in the fair value measurement. Due to the uncertainty inherent in the valuation process, such estimates of fair value may differ significantly from the values that would have been used had a ready market for the investments existed, and differences could be material. Additionally, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different from the valuations used at the date of these financial statements.

The Fund follows Financial Accounting Standards Board (“FASB”) amendments to authoritative guidance which requires the Fund to disclose details of transfers in and out of Level 1 and Level 2 measurements and Level 2 and Level 3 measurements and the reasons for the transfers. For the six months ended June 30, 2015, there were no transfers in and out of Level 1 and Level 2, but there were $3,473,340 transferred out from Level 2 to Level 3 due to lack of observable market data because of decrease in market activity and $421,109 transferred out from Level 3 to Level 2 as a result of the availability of a pricing source supported by observable inputs. All transfers are assumed to occur at the end of the reporting period.

B) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES — The Fund adopted amendments to authoritative guidance on disclosures about derivative instruments and hedging activities which require that a fund disclose (a) how and why an entity uses derivative instruments, (b) how derivative instruments and hedging activities are accounted for and (c) how derivative instruments and related hedging activities affect a fund’s financial position, financial performance and cash flows. For the six months ended June 30, 2015, the Fund’s derivatives did not qualify for hedge accounting as they are held at fair value.

Fair Values of Derivative Instruments as of June 30, 2015

 

     Asset Derivatives             Liability Derivatives  
     Balance Sheet Location    Fair Value             Balance Sheet Location    Fair Value  

Currency Contracts

  

Unrealized appreciation on forward currency contracts

   $ 207           

Unrealized depreciation on forward currency contracts

   $ 240,058   
     

 

 

            

 

 

 

 

19


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2015 (unaudited)

 

 

Note 2. Significant Accounting Policies

 

Effect of Derivative Instruments on the Statement of Operations

 

     Location    Realized
Gain (Loss)
            Location   

Net Unrealized

Appreciation

(Depreciation)

 

Currency Contracts

  

Net realized gain from forward currency transactions*

   $ 730,711           

Net change in unrealized appreciation (depreciation) from forward currency translations*

   $ (435,431
     

 

 

            

 

 

 

 

  * Statement of Operations includes both forward currency contracts and foreign currency transactions/translations.

The notional amount of forward foreign currency contracts at the six months ended June 30, 2015 is reflected in the Schedule of Investments. For the six months ended June 30, 2015, the Fund had an average monthly value on a net basis of $5,469,099 in forward foreign currency contracts.

The Fund is a party to International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“Master Agreements”) with certain counterparties that govern over-the-counter derivative (including Total Return, Credit Default and Interest Rate Swaps) and foreign exchange contracts entered into by the Fund. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. Termination events applicable to the Fund may occur upon a decline in the Fund’s net assets below a specified threshold over a certain period of time.

The following table presents by counterparty the Fund’s derivative assets net of related collateral held by the Fund at June 30, 2015:

 

Counterparty

   Gross Amounts of
Assets Presented in the
Statement of Assets
and Liabilities
(a)
     Financial
Instruments
and Derivatives
Available for Offset
     Non-Cash
Collateral
Received
     Cash
Collateral
Received
     Net Amount
of Derivative
Assets
 

Morgan Stanley

   $ 207       $ (207    $       $       $   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The following table presents by counterparty the Fund’s derivative liabilities net of related collateral pledged by the Fund at June 30, 2015:

 

Counterparty

   Gross Amounts of
Assets Presented in the
Statement of Assets
and Liabilities
(a)
     Financial
Instruments
and Derivatives
Available for Offset
     Non-Cash
Collateral
Received
     Cash
Collateral
Pledged
     Net Amount
of Derivative
Liabilities
 

Morgan Stanley

   $ 240,058       $ (207    $       $       $ 239,851   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)  Forward foreign currency exchange contracts are included.

C) FOREIGN CURRENCY TRANSACTIONS — The books and records of the Fund are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate at the end of the period. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Fund does not isolate that portion of realized gains and losses on investments in equity securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of equity securities. The Fund isolates that portion of realized gains

 

20


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2015 (unaudited)

 

 

Note 2. Significant Accounting Policies

 

and losses on investments in debt securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of debt securities.

D) SECURITY TRANSACTIONS AND INVESTMENT INCOME/EXPENSE — Security transactions are accounted for on a trade date basis. Interest income/expense is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method. Dividend income/expense is 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.

E) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — The Fund declares and pays dividends on a monthly basis and records them on ex-date. 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 carryforward, such gain will not be distributed. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

The Fund’s dividend policy is to distribute substantially all of its net investment income to its shareholders on a monthly basis. However, in order to provide shareholders with a more consistent yield to the current trading price of shares of common stock of the Fund, the Fund may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Fund for any particular month may be more or less than the amount of net investment income earned by the Fund during such month.

F) FEDERAL INCOME TAXES — No provision is made for federal taxes as it is the Fund’s intention to continue to qualify as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), and to make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes.

In order to qualify as a RIC under the Code, the Fund must meet certain requirements regarding the source of its income, the diversification of its assets and the distribution of its income. One of these requirements is that the Fund derive at least 90% of its gross income for each taxable year from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, other income derived with respect to its business of investing in such stock, securities or currencies or net income derived from interests in certain publicly traded partnerships (“Qualifying Income”).

The Fund adopted the authoritative guidance for uncertainty in income taxes and recognizes a tax benefit or liability from an uncertain position only if it is more likely than not that the position is sustainable based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and procedures. The Fund has reviewed its current tax positions and has determined that no provision for income tax is required in the Fund’s financial statements. The Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the IRS.

G) SHORT-TERM INVESTMENTS — The Fund, together with other funds/portfolios advised by Credit Suisse, pools available cash into a short-term variable rate time deposit issued by State Street Bank and Trust Company (“SSB”), the Fund’s custodian. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment.

H) 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

 

21


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2015 (unaudited)

 

 

Note 2. Significant Accounting Policies

 

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 foreign currency risk. Forward foreign currency contracts are adjusted by the daily forward 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. The Fund’s open forward foreign currency contracts at June 30, 2015 are disclosed in the Schedule of Investments.

I) SECURITIES LENDING — Loans of securities are required at all times to be secured by collateral at least equal to 102% of the market value of domestic securities on loan (including any accrued interest thereon) and 105% of the market value of foreign securities on loan (including any accrued interest thereon). Cash collateral received by the Fund in connection with securities lending activity may be pooled together with cash collateral for other funds/portfolios advised by Credit Suisse and may be invested in a variety of investments, including funds advised by SSB, the Fund’s securities lending agent or money market instruments. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings.

SSB has been engaged by the Fund to act as the Fund’s securities lending agent. As of June 30, 2015, the Fund had investment securities on loan with a fair value of $14,241,860 and a related liability of $14,619,471 for collateral received on securities loaned, both of which are presented gross on the Statement of Assets and Liabilities. The collateral for securities loaned is valued consistently to the other investments held by the Fund and is included in level 2 of the fair value hierarchy. For the six months ended June 30, 2015, the value of the related collateral exceeded the value of the securities loaned.

The Fund’s securities lending arrangement provides that the Fund and SSB will share the net income earned from securities lending activities. During the six months ended June 30, 2015, total earnings from the Fund’s investment in cash collateral received in connection with securities lending arrangements was $59,093, of which $1,174 was rebated to borrowers (brokers). The Fund retained $49,186 in income from the cash collateral investment, and SSB, as lending agent, was paid $8,733. Securities lending income is accrued as earned.

J) OTHER — 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 affect their ability to service their principal and interest payment obligations, to meet projected business goals and to obtain additional financing.

In the normal course of business the Fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to credit risk, the Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which the Fund has unsettled or open transactions will default. The potential loss could exceed the value of the financial assets recorded in the financial statements. Financial assets, which potentially expose the Fund to credit risk, consist principally of cash due from counterparties and investments. The extent of the Fund’s exposure to credit and counterparty risks in respect to these financial assets approximates their carrying value as recorded in the Fund’s Statement of Assets and Liabilities.

 

22


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2015 (unaudited)

 

 

Note 2. Significant Accounting Policies

 

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 the Fund’s net asset value.

K) NEW ACCOUNTING PRONOUNCEMENTS — In June 2014, FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860), Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The ASU changes the accounting for certain repurchase agreements and expands disclosure requirements related to repurchase agreements, securities lending, repurchase-to-maturity and similar transactions. The ASU is effective for interim and annual reporting periods beginning after December 15, 2014.

L) SUBSEQUENT EVENTS — In preparing the financial statements as of June 30, 2015, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements through the date of release of this report. No such events requiring recognition or disclosure were identified through the date of the release of this report.

Note 3. Transactions with Affiliates and Related Parties

Credit Suisse serves as investment adviser for the Fund. For its investment advisory services, Credit Suisse is entitled to receive a fee from the Fund at a rate per annum, computed weekly and paid quarterly 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 six months ended June 30, 2015, investment advisory fees earned were $418,858.

SSB serves as Accounting and Administrative Agent for the Fund. For its administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, calculated in total for all the Credit Suisse funds/portfolios co-administered by SSB and allocated based upon the relative average net assets of each fund/portfolio, subject to an annual minimum fee. For the six months ended June 30, 2015, administrative services fees earned by SSB (including out-of-pocket expenses) with respect to the Fund were $27,001.

The Independent Directors receive fifty percent (50%) of their annual retainer in the form of shares of the Fund. During the six months ended June 30, 2015 and the year ended December 31, 2014, 0 shares and 16,858 shares were issued through the Directors’ compensation plan, respectively. Directors as a group own less than 1% of the Fund’s outstanding shares as of June 30, 2015.

Note 4. Line of Credit

The Fund, together with other funds/portfolios advised by Credit Suisse (collectively, the “Participating Funds”), participates in a committed, unsecured line of credit facility (“Credit Facility”), in an aggregated amount of $200 million for temporary or emergency purposes with SSB under a first-come, first-served basis. Under the terms of the Credit Facility, the Participating Funds pay an aggregate commitment fee 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 either the Overnight Federal Funds rate or the Overnight LIBOR rate plus a spread. At June 30, 2015, the Fund had loans outstanding under the Credit Facility of $0. During the six months ended June 30, 2015, the Fund had borrowings under the Credit Facility as follows:

 

Average Daily Loan Balance

  

Weighted Average Interest Rate %

  

Maximum Daily Loan Outstanding

  

Interest
Paid

$2,663

   1.380%    $482,000    $18

 

23


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2015 (unaudited)

 

 

Note 5. Purchases and Sales of Securities

 

For the six months ended June 30, 2015, purchases and sales of investment securities (excluding short-term investments) were $51,041,785 and $49,509,903, respectively.

Note 6. Fund Shares

The Fund offers a Dividend Reimbursement Plan (the “Plan”) to its common stockholders. By participating in the Plan, dividends and distributions will be promptly paid to stockholders in additional shares of common stock of the Fund. The number of shares to be issued will be determined by dividing the total amount of the distribution payable by the greater of (i) the net asset value per share (“NAV”) of the Fund’s common stock on the payment date, or (ii) 95% of the market price per share of the Fund’s common stock on the payment date. If the NAV of the Fund’s common stock is greater than the market price (plus estimated brokerage commissions) on the payment date, then Computershare (or a broker-dealer selected by Computershare) shall endeavor to apply the amount of such distribution to purchase shares of Fund common stock in the open market.

The Fund has one class of shares of common stock, par value $.001 per share; one hundred million shares are authorized. Transactions in shares of common stock were as follows:

 

     For the Six Months Ended
June 30, 2015

(unaudited)
     For the Year Ended
December 31, 2014
 

Shares issued through the Directors compensation plan

             16,858   
  

 

 

    

 

 

 

Net increase

             16,858   
  

 

 

    

 

 

 

Note 7. Contingencies

In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts 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.

Note 8. Other Matters

On May 19, 2014, the U.S. Department of Justice (the “Department of Justice”) filed a one-count criminal information (the “Information”) in the District Court for the Eastern District of Virginia (the “District Court”) charging Credit Suisse AG (“CSAG”) with conspiracy to commit tax fraud related to accounts CSAG established for cross-border clients. The Department of Justice and CSAG entered into a plea agreement (the “Plea Agreement”) settling the action pursuant to which CSAG pleaded guilty to the charge set out in the Information.

The Plea Agreement requires CSAG to pay over $1.8 billion to the U.S. government, including the U.S. Internal Revenue Service. The Plea Agreement also requires CSAG to lawfully undertake certain remedial actions to address the conduct described in the Plea Agreement.

CSAG has entered into other settlements relating to the conduct set out in the Plea Agreement. CSAG has entered into a Consent Order with the Federal Reserve Board (the “Federal Reserve”) to resolve certain findings by the Federal Reserve, including that the activities of CSAG regarding opening of foreign accounts for U.S. taxpayers, provision of investment services to U.S. clients, and operation of CSAG’s New York representative office prior to 2009 lacked adequate enterprise-wide risk management and compliance policies and procedures

 

24


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2015 (unaudited)

 

 

Note 8. Other Matters

 

sufficient to ensure that all of its activities comply with U.S. laws and regulations. In addition, CSAG has entered into a Consent Order with the New York State Department of Financial Services (the “DFS”) to resolve the DFS’s investigation into the conduct described in the Plea Agreement. The settlement with the Federal Reserve requires CSAG to pay $100 million to the Federal Reserve, and the settlement with the DFS requires CSAG to pay $715 million to the DFS.

These settlements follow a settlement by Credit Suisse Group AG (“CS Group”), the parent company of CSAG, with the Securities and Exchange Commission (the “Commission”) on February 21, 2014 to resolve an investigation by the Commission into solicitation and provision of broker-dealer and investment advisory services to certain U.S. cross-border clients by CS Group while not registered with the Commission as a broker-dealer or investment adviser. As part of the settlement, CS Group retained an independent consultant to evaluate its policies and procedures and examine its broker-dealer and investment adviser activities to fully verify that the business that was the subject of the Commission investigation has been completely exited. CS Group also agreed to pay $196,511,014, which includes $82,170,990 in disgorgement, $64,340,024 in interest and a $50,000,000 penalty.

CSAG is the indirect parent company of Credit Suisse and CSSU. Neither Credit Suisse, CSSU nor the Fund was named in the Plea Agreement (as defined above) or other settlements relating to the conduct set out in the Plea Agreement. The conduct set out in the Plea Agreement did not involve the Fund, Credit Suisse or CSSU with respect to its investment adviser and distribution activities relating to the Fund.

Credit Suisse, CSSU and certain of their affiliates have received a permanent exemptive order from the Commission to permit them to continue serving as investment advisers and principal underwriters for U.S.-registered investment companies, such as the Fund. Due to a provision in the law governing the operation of U.S.-registered investment companies, they would otherwise have become ineligible to perform these activities as a result of the plea in the Plea Agreement. The permanent exemptive order permits Credit Suisse and CSSU to continue to provide services to the Fund, so long as, among other things, no current or former employee of CSAG or any affiliate of CSAG who previously has been or who subsequently may be identified by CSAG or any U.S. or non-U.S. regulatory or enforcement agencies as having been responsible for the conduct described in the Plea Agreement will be employed by Credit Suisse and certain of its affiliates. Credit Suisse and CSSU have informed the Fund that, Credit Suisse and CSSU believe the Settlements will not have any material impact on the Fund or on the ability of Credit Suisse or CSSU to perform services for the Fund.

On November 21, 2014, at the sentencing hearing, the District Court accepted and implemented the sentence as set out in the Plea Agreement. The District Court imposed no additional conditions beyond those contained in the Plea Agreement.

 

25


Credit Suisse Asset Management Income Fund, Inc.

Results of Annual Meeting of Shareholders (unaudited)

 

 

On April 21, 2015, the Annual Meeting of Shareholders of the Fund was held. Robert Wilson, in his capacity as Inspector, reported that, with respect to the proposal relating to the election of two Directors, the following number of Shares were voted:

 

NOMINEE

   “FOR” NOMINEE    WITHHELD

Lawrence J. Fox

   34,925,647    2,747,703

John G. Popp

   34,909,999    2,763,351

In addition to the Trustees elected at the meeting, Enrique R. Arzac, Terry Fires Bovarnick, James J. Cattano and Steven N. Rappaport continue to serve as Directors of the Fund.

 

26


Credit Suisse Asset Management Income Fund, Inc.

Notice of Privacy and Information Practices (unaudited)

 

 

At Credit Suisse, we know that you are concerned with how we protect and handle nonpublic personal information that identifies you. This notice is designed to help you understand what nonpublic personal information we collect from you and from other sources, and how we use that information in connection with your investments and investment choices that may be available to you. Except where otherwise noted, this notice is applicable only to consumers who are current or former investors, meaning individual persons whose investments are primarily for household, family or personal use (“individual investors”). Specified sections of this notice, however, also apply to other types of investors (called “institutional investors”). Where the notice applies to institutional investors, the notice expressly states so. This notice is being provided by Credit Suisse Funds and Credit Suisse Closed-End Funds. This notice applies solely to U.S. registered investment companies advised by Credit Suisse Asset Management, LLC.

Categories of information we may collect:

We may collect information about you, including nonpublic personal information, such as

 

    Information we receive from you on applications, forms, agreements, questionnaires, Credit Suisse websites and other websites that are part of our investment program, or in the course of establishing or maintaining a customer relationship, such as your name, address, e-mail address, Social Security number, assets, income, financial situation; and

 

    Information we obtain from your transactions and experiences with us, our affiliates, or others, such as your account balances or other investment information, assets purchased and sold, and other parties to a transaction, where applicable.

Categories of information we disclose and parties to whom we disclose it:

 

    We do not disclose nonpublic personal information about our individual investors, except as permitted or required by law or regulation. Whether you are an individual investor or institutional investor, we may share the information described above with our affiliates that perform services on our behalf, and with our asset management and private banking affiliates; as well as with unaffiliated third parties that perform services on our behalf, such as our accountants, auditors, attorneys, broker-dealers, fund administrators, and other service providers.

 

    We want our investors to be informed about additional products or services. We do not disclose nonpublic personal information relating to individual investors to our affiliates for marketing purposes, nor do we use such information received from our affiliates to solicit individual investors for such purposes. Whether you are an individual investor or an institutional investor, we may disclose information, including nonpublic personal information, regarding our transactions and experiences with you to our affiliates.

 

    In addition, whether you are an individual investor or an institutional investor, we reserve the right to disclose information, including nonpublic personal information, about you to any person or entity, including without limitation any governmental agency, regulatory authority or self-regulatory organization having jurisdiction over us or our affiliates, if (i) we determine in our discretion that such disclosure is necessary or advisable pursuant to or in connection with any United States federal, state or local, or non-U.S., court order (or other legal process), law, rule, regulation, or executive order or policy, including without limitation any anti-money laundering law or the USA PATRIOT Act of 2001; and (ii) such disclosure is not otherwise prohibited by law, rule, regulation, or executive order or policy.

 

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Credit Suisse Asset Management Income Fund, Inc.

Notice of Privacy and Information Practices (unaudited) (continued)

 

 

Confidentiality and security

 

    To protect nonpublic personal information about individual investors, we restrict access to those employees and agents who need to know that information to provide products or services to us and to our investors. We maintain physical, electronic, and procedural safeguards to protect nonpublic personal information.

Other Disclosures

This notice is not intended to be incorporated in any offering materials, but is a statement of our current Notice of Privacy and Information Practices and may be amended from time to time. This notice is current as of May 27, 2015.

 

28


Credit Suisse Asset Management Income Fund, Inc.

Proxy Voting and Portfolio Holdings Information (unaudited)

 

 

Information regarding how the Fund voted proxies related to its portfolio securities during the 12-month period ended June 30 of each year, 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.credit-suisse.com/us/funds

 

    On the website of the Securities and Exchange Commission, 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 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 1-202-551-8090.

Funds Managed by Credit Suisse Asset Management, LLC

 

CLOSED-END FUNDS

Fixed Income

Credit Suisse Asset Management Income Fund, Inc. (NYSE MKT: CIK)

Credit Suisse High Yield Bond Fund (NYSE MKT: DHY)

Literature Request — Call today for free descriptive information on the closed-ended funds listed above at 1-800-293-1232 or visit our website at www.credit-suisse.com/us/funds.

 

 

OPEN-END FUNDS

 

Credit Suisse Commodity Return Strategy Fund    Credit Suisse Strategic Income Fund
Credit Suisse Floating Rate High Income Fund    Credit Suisse Commodity ACCESS Strategy Fund
Credit Suisse Multialternative Strategy Fund    Credit Suisse Managed Futures Strategy Fund
Credit Suisse Emerging Markets Equity Fund    Credit Suisse Volaris US Strategies Fund
Credit Suisse Global Sustainable Dividend Equity Fund   

Fund shares are not deposits or other obligation 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-markets, 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 1-877-870-2874. Performance information current to the most recent month-end is available at www.credit-suisse.com/us/funds.

Credit Suisse Securities (USA) LLC, Distributor.

 

29


Credit Suisse Asset Management Income Fund, Inc.

Dividend Reinvestment and Cash Purchase Plan (unaudited)

 

 

Credit Suisse Asset Management Income Fund, Inc. (the “Fund”) offers a Dividend Reinvestment and Cash Purchase Plan (the “Plan”) to its common stockholders. The Plan offers common stockholders a prompt and simple way to reinvest net investment income dividends and capital gains and other periodic distributions in shares of the Fund’s common stock. Computershare Trust Company, N.A. (“Computershare”) acts as Plan Agent for stockholders in administering the Plan.

If your shares of common stock of the Fund are registered in your own name, you will automatically participate in the Plan, unless you have indicated that you do not wish to participate and instead wish to receive dividends and capital gains distributions in cash. If you are a beneficial owner of the Fund having your shares registered in the name of a bank, broker or other nominee, you must first make arrangements with the organization in whose name your shares are registered to have the shares transferred into your own name. Registered shareholders can join the Plan via the Internet by going to www.computershare.com, authenticating your online account, agreeing to the Terms and Conditions of online “Account Access” and completing an online Plan Enrollment Form. Alternatively, you can complete the Plan Enrollment Form and return it to Computershare at the address below.

By participating in the Plan, your dividends and distributions will be promptly paid to you in additional shares of common stock of the Fund. The number of shares to be issued to you will be determined by dividing the total amount of the distribution payable to you by the greater of (i) the net asset value per share (“NAV”) of the Fund’s common stock on the payment date, or (ii) 95% of the market price per share of the Fund’s common stock on the payment date. If the NAV of the Fund’s common stock is greater than the market price (plus estimated brokerage commissions) on the payment date, then Computershare (or a broker-dealer selected by Computershare) shall endeavor to apply the amount of such distribution on your shares to purchase shares of Fund common stock in the open market.

You should be aware that all net investment income dividends and capital gain distributions are taxable to you as ordinary income and capital gain, respectively, whether received in cash or reinvested in additional shares of the Fund’s common stock.

The Plan also permits participants to purchase shares of the Fund through Computershare. You may invest $100 or more monthly, with a maximum of $100,000 in any annual period. Computershare will purchase shares for you on the open market on the 25th of each month or the next trading day if the 25th is not a trading day.

There is no service fee payable by Plan participants for dividend reinvestment. For voluntary cash payments, Plan participants must pay a service fee of $5.00 per transaction. Plan participants will also be charged a pro rata share of the brokerage commissions for all open market purchases ($0.03 per share as of October 2006). Participants will also be charged a service fee of $5.00 for each sale and brokerage commissions of $0.03 per share (as of October 2006).

You may terminate your participation in the Plan at any time by notifying Computershare or requesting a sale of your shares held in the Plan. Your withdrawal will be effective immediately if your notice is received by Computershare prior to any dividend or distribution record date; otherwise, such termination will be effective only with respect to any subsequent dividend or distribution. Your dividend participation option will remain the same unless you withdraw all of your whole and fractional Plan shares, in which case your participation in the Plan will be terminated and you will receive subsequent dividends and capital gains distributions in cash instead of shares.

 

30


Credit Suisse Asset Management Income Fund, Inc.

Dividend Reinvestment and Cash Purchase Plan (unaudited) (continued)

 

 

If you want further information about the Plan, including a brochure describing the Plan in greater detail, please contact Computershare as follows:

 

  By Internet: www.computershare.com

 

  By phone: (800) 730-6001 (U.S. and Canada)
    (781) 575-3100 (Outside U.S. and Canada)

Customer service associates are available from 9:00 a.m. to 5:00 p.m. Eastern time, Monday through Friday

 

  By mail: Credit Suisse Asset Management Income Fund, Inc.
    c/o Computershare
    P.O. Box 30170
    College Station, TX 77842-3170

Overnight correspondence should be sent to:

    Computershare
    211 Quality Circle, Suite 210
    College Station, TX 77845

All notices, correspondence, questions or other communications sent by mail should be sent by registered or certified mail, return receipt requested.

The Plan may be terminated by the Fund or Computershare upon notice in writing mailed to each participant at least 30 days prior to any record date for the payment of any dividend or distribution.

 

31


 

 

 

 

This report, including the financial statements herein, is sent to the shareholders of the Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in this report.

 

 

CIK-SAR-0615


Item 2. Code of Ethics.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 3. Audit Committee Financial Expert.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 4. Principal Accountant Fees and Services.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 5. Audit Committee of Listed Registrants.

This item is inapplicable to a semi-annual report on Form N-CSR.

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.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

This item is inapplicable to a semi-annual report on Form N-CSR.

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 10, 2015.

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 registrant’s second fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.


Item 12. Exhibits.

(a)(1) Not applicable.

(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/John G. Popp
  Name:   John G. Popp
  Title:   Chief Executive Officer and President
  Date:   September 1, 2015

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/John G. Popp
  Name:   John G. Popp
  Title:   Chief Executive Officer and President
  Date:   September 1, 2015

 

  /s/Rocco DelGuercio
  Name:   Rocco DelGuercio
  Title:   Chief Financial Officer and Treasurer
  Date:   September 1, 2015