Credit Suisse Asset Management is offering a fund investing in a wide selection of global fixed-income opportunities with a new investment concept it calls “target return”.
First revealed in Money Marketing in February, the fund addresses investors' needs for a product that targets a certain level of positive return within a strict risk control framework.
The fund is an onshore version of the firm's Luxemburg-domiciled target return fund and uses the expertise of five fixed-income professionals supported by a fixed-income credit and equity team of over 30 analysts.
The fund aims for a gross return of six-month Libor plus 2.5 per cent through optimising the portfolio's allocation process across a diverse range of global fixed income assets.
Credit Suisse says preservation of capital is key, although it is not guaranteed. The fund can be invested 100 per cent in cash. The fund's risk management tool has been applied to a similar portfolio since August 2000.
Initial charge is 4.25 per cent and annual 1.25 per cent. Initial commission is 3 per cent with 0.5 per cent trail. Minimum investment is £5,000.
CSAM UK managing director Ian Chimes says: “The Credit Suisse target return fund has been launched against a backdrop of growing uncertainty and mixed returns for investors. In response to investor demand for investment-grade products that provide positive returns with a commensurately moderate level of risk whatever the market conditions, we have developed an innovative solution which we call target return.
“This is based on a strategy that seeks to take a blended approach and full advantage of an increasingly diverse range of global investment opportunities within fixed-income markets.”