Credit Suisse launches new limited issue fund

Credit Suisse Asset Management is to expand its range of multi-manager portfolios with the launch later this month of a limited issue fund.

Structured as a non-Ucits retail scheme the fund will be limited to 75 million units (equivalent to 75m based on launch price). The portfolio will focus on funds with less than 100m in assets, including recently launched funds yet to establish a lengthy track record.

CSAM’s multi-manager team of six investment professionals, headed by Gary Potter and Robert Burdett, will manage the portfolio.

Burdett says: “We have deliberately used a flexible product structure. Over time we might use long/short-type funds, but it is unlikely that we will invest in these from day one.”

He explains that often funds will produce the best performance during their formative years when managers are looking to build up a strong performance record. The in-depth qualitative research capabilities of the multi-manager team will be used to exploit these opportunities.

The portfolio will be able to access both regulated and unregulated funds globally, but will have a bias towards British investments. The team will target smaller boutique funds and, by limiting the size of the portfolio, performance will not be impacted by concentration constraints, according to the group.

Credit Suisse head of product development Toby Hogbin says: “We are seeing an increase in innovation in Ucits III funds and the whole universe of these funds is available for the portfolio. Offshore funds are potentially attractive and we are beginning to see a number of launches of Nurs funds.”

Hogbin explains: “Within Nurs rules portfolios can effectively invest up to 20% of assets in unregulated funds, subject to these funds employing prudent risk measures. We think the fund enables us to leverage our areas of expertise very effectively and is a strong product proposition.”

“The idea to launch the portfolio was fund manager driven,” explains Burdett.

Credit Suisse is expected to provide further details on the fund, including name, charging structure and minimum investment amounts this week. The fund will form part of the group’s CS Multi-Manager Portfolio range.