Q&A Credit Suisse (Lux) Portfolio Funds Opportunistic USD (Yield/Balanced) The Funds Will Be Restructured

Transcription

1 Questions & Answers September 8, 2017 Q&A Funds Opportunistic USD (/) The Funds Will Be Restructured Key points The Funds Opportunistic USD (/) were set up with a FCP legal structure. As many investors now prefer a SICAV legal structure, the decision was made to restructure the s. Under the restructuring, investors holding shares in the Funds Opportunistic USD (/) will be allocated shares in the Credit Suisse (Lux) Portfolio Funds Global USD (/) instead. The investment universe, investment objective and investment process remain the same. The strategic asset allocation is slightly different, with a lower weighting of high-yield and emerging-market in favor of investment-grade and equities; however, the risk/ return profile will be comparable. Same manager. Lower management fees. V share es (future P share es): the variable part of the management fee is to be replaced by a performance fee. s in the Funds Opportunistic USD (/) can be redeemed on any day until 13:00 CET on October 9, Which s will be restructured? s Fund Opportunistic USD V V LU , LU , LU , LU , Fund Opportunistic USD V USD IB V LU , LU , LU , LU , LU , s Fund Global USD P P LU , LU , LU , LU , Fund Global USD P USD IB P LU , LU , LU , LU , LU , When will the restructuring take place? The restructuring will take place on October 13, The net asset values (NAV) will be calculated on October 13, 2017, using the closing price on October 12, What is the timetable for the restructuring? Publication of the restructuring Closure of the transferring s for subscriptions and redemptions , 13:00 CET Calculation of NAV and conversion ratios Effective date of restructuring /5

2 What is the reason for the restructuring? The Funds Opportunistic USD (/) were set up with an FCP 1 legal structure when they were launched in September As many investors now prefer a SICAV 2 legal structure, the decision was made to restructure the s. What are the differences between the absorbing and the transferring s? The Funds Global USD (/) are in many respects identical to the transferring s. They are also globally diversified Multi Asset Class s denominated in US dollars, and their investment objective is also to generate attractive returns by maximizing income and capital growth within specific risk parameters. Like the transferring s, they apply the investment views of Credit Suisse to this end. However, the absorbing s do differ from the transferring s in certain ways: SICAV instead of FCP legal structure; with respect to this point, please note the last item in this Q&A document, What will the tax implications be? Slightly different strategic asset allocation: Lower weighting of high-yield and emerging-market in favor of investment-grade in US dollars and equities Slightly different weighting in some other asset es as well However, the risk/return profile of both the absorbing s is comparable to that of the transferring s. A comparison of the strategic asset allocation is provided in the following table. Lower management fee for all share es. V share es (future P share es): 3 the variable part of the management fee has until now been 10% of the absolute performance; this is being replaced by a new 10% performance fee with a hurdle rate (3-month LIBOR USD). Comparison of features Investment universe Investment policy Previously: Credit Suisse (Lux) Portfolio Funds Opportunistic USD (/) New: Credit Suisse (Lux) Portfolio Funds Global USD (/) Global, Global, incl. high-yield and incl. high-yield and emerging-market emerging-market Global equities, incl. Global equities, incl. emerging-market emerging-market equities; large, mid and equities; large, mid and small caps small caps REITs 4 REITs 4 MLPs 5 MLPs 5 The investment views of Credit Suisse are implemented in a combined top-down/ bottom-up approach Fund currency USD USD Strategic asset allocation Fund profile The investment views of Credit Suisse are implemented in a combined top-down/ bottom-up approach Fund profile Liquidity Bonds USD IG High-yield Emerging-market Equities US Global Emerging-market Alternative investments REITs MLPs Portfolio manager Gerhard Werginz Gerhard Werginz Fund assets 6 Risk profile SRRI: USD 47.7 m USD 77.4 m 3 4 Settlement cycle T+3 T+3 1 Fonds commun de placement. 2 Société d investissement à capital variable. 3 As part of the restructuring, the V share es will be transferred to P share es; please also note the section How will the share es of the original s be transferred to those of the absorbing s? 4 Real Estate Investment Trusts (listed real estate s). 5 Master Limited Partnerships. 6 As at June 30, Not available ( will be launched on October 12, 2017); however, risk ification should conform with that of the transferring s. 2/5

3 What is the investment process of the absorbing s? As previously, the investment process combines a top-down and bottom-up approach, relying on the investment analyses of Credit Suisse at both the macro level and the level of the individual securities. It comprises four steps: 1. Strategic asset allocation Stipulation and annual review of the strategic asset allocation by the Investment Committee, based on the long-term estimates of risks and returns in the respective investment segments. 2. Tactical adjustments Flexible deviations from the strategic asset allocation for the purpose of exploiting short-term investment opportunities in individual asset es, regions or currencies. 3. Portfolio construction Selection of investment instruments, taking into account the preferred investment styles, themes and sectors and the valuation of the individual investments. 4. Comprehensive risk management Risk is monitored and managed continuously as an integral component of the investment process. Please refer to the prospectus for detailed information. The prospectus is available under Funds on the Credit Suisse Asset Management website. What are the risks of investing in the Credit Suisse (Lux) Portfolio Funds Global USD (/ ) as compared to the original s? Since the key aspects of the absorbing s match those of the original s (i.e. the investment universe, investment objective and investment process), the investment risks are likely to remain the same on balance. The main risks still comprise the following: There is no guarantee that losses may be avoided or that the investment objectives will be achieved. The performance of the portfolios will depend in part on the investment decisions of Credit Suisse. Currency exposure may influence the performance of the portfolios. The liquidity of the investment instruments depends on the respective market environment. Who will manage the absorbing s? What is their track record? The Funds Global USD (/ ) are managed by Gerhard Werginz. He was also responsible for the Funds Opportunistic USD (/). Gerhard Werginz, Director, is a Senior Portfolio Manager in the Solutions team of Credit Suisse Asset Management. He joined Credit Suisse in Over the last 20 years, his focus has been on the management of Multi Asset Class Solutions (s and mandates) for private clients and institutional investors. Gerhard Werginz holds a bachelor s degree in business administration from the Zurich Business School and is an EFFAS Certified European Financial Analyst (CEFA). Are the Funds Opportunistic USD (/) still open for subscriptions and redemptions? Subscription and redemption orders of the transferring s can be made until 13:00 CET on October 9, How will the share es of the original s be transferred to those of the absorbing s? The share es of the original s will be transferred to those of the absorbing s as follows: The, USD IB and share es of the original s will be transferred to the, USD IB and share es of the absorbing s, respectively. The V and V share es of the original s will be transferred to the P and P share es of the absorbing s, respectively. What is the management fee for the absorbing share es? The annual management fee of the absorbing s is lower than that of the transferring s in all the share es: Fund profile Management fee p.a V P V P Fund profile Management fee p.a V P USD IB USD IB V P /5

4 Does the variable part of the management fee of 10% on the absolute performance remain applicable to the V share es? As part of the restructuring, the V share es will be transferred to the P share es. The P share es will no longer be subject to the variable part of the management fee, but rather to an annual performance fee of 10% with a hurdle rate (3-month LIBOR USD). Will the settlement cycle remain the same? Yes, the settlement cycle will remain the same for both the transferring and absorbing s, i.e. three business days (T+3). What does the restructuring process involve? First, the Funds Opportunistic USD (/) will add their assets to the Credit Suisse (Lux) Portfolio Funds Global USD (/) in the form of noncash distributions. The transferring s will receive shares in the Funds Global USD (/) in return. Once the noncash distribution is complete, the Funds Opportunistic USD (/) will be liquidated. Following the liquidation, the holders of shares in the Credit Suisse (Lux) Portfolio Funds Opportunistic USD (/) will receive new shares in the Funds Global USD (/) in the form of a portfolio distribution. How will the restructuring process be settled against clients accounts? 1. As at the effective date of the restructuring, investors will receive a portfolio distribution (i.e. a special dividend) in the form of shares in the Funds Global USD (/). The shares in the Credit Suisse (Lux) Portfolio Funds Global USD (/) will be booked to clients safekeeping accounts. Fractions will be rounded to three decimal places. The booking will be made around October 17, At the same time, the NAV of the Credit Suisse (Lux) Portfolio Funds Opportunistic USD (/) will be set to zero. 3. The Funds Opportunistic USD (/) will be subsequently liquidated and booked out around October 24, Will this entail any costs or fees for clients? The restructuring will not entail any costs for clients. What will the tax implications be? Restructuring can have tax implications. As our clients have very different tax positions, Credit Suisse is unable to make general statements. We therefore recommend that clients contact their tax advisor to find out what the tax implications of the restructuring will be in their country of citizenship, country of residence or country of domicile. The absorbing s at a glance Fund Global USD, Fund Global USD Fund domicile Luxembourg Legal structure SICAV Portfolio manager Gerhard Werginz Fund currency USD Performance fee P share es: 10% p.a. (hurdle rate: 3-month LIBOR USD) Inception date Subscriptions/redemptions Daily, with cutoff at 13:00 CET Initial charge As per bank fees Single Swinging Pricing (SSP) 8 Yes ISIN Valor no. Management fee p.a. Fund Global USD LU P LU LU P LU Fund Global USD LU P LU USD IB LU LU P LU For more details, please refer to the Net Asset Value chapter of the s prospectus. Source: Credit Suisse, otherwise specified Your contact Do you have any questions? Please contact us. Credit Suisse Asset Management (Switzerland) Ltd. Asset Management Fund Distribution Tel clientservices.ams@credit-suisse.com credit-suisse.com 4/5

5 The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein was produced by Credit Suisse Group AG and/or its affiliates (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. Equities are subject to market forces and hence fluctuations in value, which are not entirely predictable. Investment principal on can be eroded depending on sale price, market price or changes in redemption amounts. Care is required when investing in such instruments. Emerging market investments usually result in higher risks such as political, economic, credit, exchange rate, market liquidity, legal, settlement, market, shareholder and creditor risks. Emerging markets are located in countries that possess one or more of the following characteristics: a certain degree of political instability, relatively unpredictable financial markets and economic growth patterns, a financial market that is still at the development stage or a weak economy. Fund Opportunistic is domiciled in Luxembourg. The representative in Switzerland is Credit Suisse Funds AG, Zurich. The paying agent in Switzerland is Credit Suisse AG, Zurich. The prospectus, the simplified prospectus and/or the Key Investor Information Document (KIID) and the annual and half-yearly reports may be obtained free of charge from the representative or from any branch of Credit Suisse AG in Switzerland. Copyright 2017 Credit Suisse Group AG and/or its affiliates. All rights reserved. CH/E/ /5