This fund was created by changing the name, investment objective and policy of the Credit Suisse Multi-Manager Global Bond As the multi-manager multi-asset distribution fund, it aims to provide regular income and growth by investing globally in a range of asset classes through a portfolio of investment funds.
Some of the underlying funds will be managed by well-known names such as Artemis and Schroders, while others will be small boutiques that are not well known.
Co-heads of multi-manager Graham Duce and Aidan Kearney will manage the fund. Duce joined Credit Suisse in 2002 from Towry Law, where he was managing director. He and was appointed to his current role in March and had been running a multi-asset income product for private clients.
Kearney joined Credit Suisse in April from Premier Asset Management where he was senior investment manager of pooled funds. He has over 20 years of investment experience, having run portfolios for Artemis, ABN Amro, Singer & Friedlander, and Allied Irish Investment Managers.
Duce and Kearney will build a portfolio of funds investing in equities fixed interest securities, property, structured products, private equity and listed hedge funds.
The case for multi-asset investing stems from recognition that asset classes behave differently and returns will vary during the market cycle. By spreading investments across a range of asset classes, the idea is that there should always be something in the portfolio to keep it ticking over, even as market conditions change.
Combining this with a global multi-manager approach means that not only will the fund be diversified across asset classes, it will also be diversified across manager, region and industrial sector. The portfolio will also be monitored to ensure it remains invested in what the managers regards as the best blend of funds.
Multi-asset funds of funds are nothing new but Credit Suisse’s focus on income does provide a new angle on the concept. However, the yield will vary according to market conditions, which could be a problem for investors who need regular income at a consistent level.