Credit Suisse is awaiting FSA approval to launch an onshore version of its Luxemburg-domiciled target return fund in a move aimed at boosting its presence in the fixed-income market.
If given the green light, the fund will be run along similar lines to its offshore counterpart, which invests in core instruments such as Government bonds and in enhanced asset classes such as emerging Europe.
This approach, aimed at generating positive returns during all stages of the economic cycle, led to the fund returning 3 per cent in euro terms between launch last March and December 2003.
It is understood that the new fund will be managed by CSAM's London-based fixed income team, headed by Winifred Robbins, who runs the offshore version. But it is unclear whether the onshore fund will target a net return based on European Libor – as with the offshore fund – or on UK Libor. If approved, the fund should launch around April.
CSAM managing director Ian Chimes says: “We have lots of in-house expertise in fixed income but most of our products are institutional and offshore. This new fund would add considerably to our retail offering and we are very excited about it.”
Chelsea Financial Services managing director Darius McDermott says: “If it can do whatever it likes in terms of asset weightings, it will be a welcome addition to the bond fund market.”