Credit Suisse (Lux) Systematic Index Fund CHF

Transcription

1 Credit Suisse AG Credit Suisse (Lux) Systematic Index Fund CHF Your Needs and Our Investment Expertise. For Professional Wealth Management Participate cost-efficiently in global market trends For use in Switzerland only July 18

2 Agenda Reasons to Invest Investment Process Construction & Selection Fund Specific Content Strategic Asset Allocation & Performance Fund Data Benefits & Risks Fund Management Team CVs Contacts Glossary Disclaimer July 18 2

3 Why Choose a Wealth Management Fund? Follow Your Long-Term Goal while Staying Flexible A LONG-TERM FOCUS ACTIVELY MANAGED Participation in financial markets enables you to grow your wealth in the long run. And it is best realized with a disciplined, long term oriented strategy. At the same time, flexibility is essential since financial markets and political developments require daily monitoring. The Wealth Management Fund s strategy adapts to those changes when needed. The Wealth Management Fund applies a structured investment process that combines long-term strategy and short-term flexibility. July 18 3

4 Three Answers to a Challenging Return Environment How to Make a Difference INVESTORS OUR ACTIVE ANSWER Look to profit from regional/local divergences in terms of growth, risks, etc. Multi asset class solution why? Today s loser, tomorrow s winner Require a solution that is styleand factor-agnostic, opportunistically taking advantage of the current market environment Active solution why? Risk factors are a dynamic concept. Simplification leads to unsatisfying results Need a solution that harnesses Credit Suisse s entire research capabilities Top-down complemented with bottom-up investing why? To get the best out of broad investment know-how For illustrative purposes only July 18 4

5 You Are the Owner Your Wealth Management Funds Transparency through Reporting and Publications DETAILED PUBLICATIONS FOR SALES AND AFTERSALES PURPOSE KIID Factsheet Client Presentation Monthly Reporting Newsletter For illustrative purposes only July 18 5

6 Your Globally Diversified Portfolio Embedded in a Structured Investment Process Strategic Asset Allocation Tactical Asset Allocation Selecting and weighting the asset classes that help you to reach your long-term goals Actively deviating from the long-term view in order to exploit investment opportunities Security Selection Selecting the most appropriate instruments to set up and manage your portfolio The three stages are an integral part of investing and require time, expertise and discipline. They are embedded in a rigorous and continuous risk-management framework. For illustrative purposes only July 18 6

7 Management: Always In Line with Your Risk Profile It Is Key to Maintain the Same Level of Risk Over Time MORE THAN 82% OF PERFORMANCE IS DRIVEN BY LONG- TERM ASSET ALLOCATION OTHERS TITLE SELECTION 6% 4% TIMING 8% The long-term asset allocation defines the majority of investment returns over the long run. STRATEGY Diversification protects the portfolio against single security dragging and ensures volatility over the long term is smoothed out. 82% For illustrative purposes only Source: Feri Trust 2002, Financial Analysts Journal, Ausgabe Mai/Juni 1991: Gary Brinson, Brian Singer und Gilbert Beebower, "Determinants of Portfolio Performance II: An Update" July 18 7

8 Low Return High Diversification Within a Single Asset Class Is Not Enough No Asset Class Is Always Winning Low diversification across asset classes exposes investors to a volatile portfolio over time. Diversification throughout multiple asset classes protects investors and improves upside potential over the long-term. Rank Liquidity Equities Real Estate Real Estate Equities Equities Equities Real Estate Equities Equities 2 Real Estate Real Estate Bonds Bonds Bonds Hedge Funds Real Estate Bonds Real Estate Real Estate 3 Bonds Hedge Funds Hedge Funds Liquidity Real Estate Liquidity Bonds Liquidity Bonds Hedge Funds 4 Hedge Funds Bonds Equities Equities Hedge Funds Bonds Liquidity Equities Hedge Funds Bonds 5 Equities Liquidity Liquidity Hedge Funds Liquidity Real Estate Hedge Funds Hedge Funds Liquidity Liquidity Highest Lowest 2.70% 30.33% 5.71% 6.83% 13.15% 19.31% 16.50% 4.17% 9.75% 18.66% % 0.50% 0.17% -9.75% -0.05% -2.76% -1.34% -5.31% -0.91% -0.88% Liquidity: FTSE WMMI Euro Deposit Swiss Franc (3 M) / Bonds: SBI Foreign 7-10J A-AAA Bond Index CHF / Equities: MSCI AC World TR Net Index CHF / Hedge Funds: HFRX Global Hedge Fund Index CHF / Real Estate: SXI Real Estate Index CHF. Historical performance indications and financial market scenarios are not reliable indicators of current or future performance. Last data point: Source: Bloomberg, Credit Suisse AG July 18 8

9 Credit Suisse s Broad Investment Expertise Broad and Local Know-How Is Essential Around 900 investment specialists worldwide An integrated top-down investment process complemented with bottom-up company research Nassau London Guernsey Frankfurt Luxembourg Zurich Milan Madrid Dubai Mumbai Tokyo Hong Kong Singapore Sydney Locations of investment specialists July 18 9

10 Hedge funds Convertible bonds US equities Emerging market bonds Other Foreign currencies Japanese equities Global Diversification for Your Portfolio Combining Different Asset Classes and Geographic Regions A broad universe of asset classes is required to ensure global diversification for your portfolio. Finding the optimal combination requires predictions on future economic growth and return potentials of various asset classes - and the correlation between the two. INVESTMENT UNIVERSE Government and corporate bonds Real estate investment trusts Domestic currency Eurozone equities Commodities Australian equities UK equities Inflation-linked bonds Emerging market equities Swiss equities YOUR PORTFOLIO Our estimates are combined with a sophisticated tool to optimize the allocations of each of the selected asset classes to achieve the best risk/return profile for your portfolio. For illustrative purposes only July 18 10

11 Bringing Your Portfolio to Life Selecting Appropriate Instruments In your portfolio, the asset classes are represented by a number of instruments. To find the appropriate instruments you need to consider various factors and choose from a broad range of options. Liquidity of instruments Instrument holding cost Regulatory requirements MOST APPROPRIATE INSTRUMENTS Portfolio context Instrument structure Other Instrument trading cost At Credit Suisse, a team of experienced portfolio managers is responsible for selecting the most appropriate instruments for you. For illustrative purposes only July 18 11

12 Active Management Rule-based Model for Short- and Medium-Term Opportunities The Strategic Asset Allocation is the ideal long-term positioning of your assets. However, for entering tactical positions, the CS Systematic Tactical Asset Allocation (CS STAA) as a dynamic allocation mechanism is in place. The CS STAA combines short-term momentum and long-term mean reversion, based on fundamental research. PERFORMANCE OF INDEX COMPONENTS DEFINITION OF PORTFOLIO VIEWS Short Term Momentum is providing an initial tactical allocation weight Long Term Mean Reversion will floor or cap the tactical allocation weight to each asset class Dynamic allocation mechanism provides the tactical view for short- and medium-term opportunities SYSTEMATIC TACTICAL ASSET ALLOCATION CS Systematic Tactical Asset Allocation (CS STAA) delivers tactical weights to achieve a long only portfolio across asset classes and regions within predefined investment guidelines. For illustrative purposes only July 18 12

13 You Are Looking For Credit Suisse (Lux) Systematic Index Fund CHF THE FULL EXPERTISE OF CREDIT SUISSE AN ACTIVELY MANAGED BUT COST-EFFICIENT INVESTMENT A GLOBAL INVESTMENT PORTFOLIO IN SWISS FRANCS a solution that harnesses the full investment capacity of a global financial player. Use all resources of Credit Suisse, encompassing the bank s entire investment expertise and strategy, and adhere to professional and stable processes. Always have a broadly diversified portfolio. Implement using the best instruments and sub-funds. a solution that is actively managed, yet cost-efficient. Manage the strategy actively where added value is the greatest while maintaining the ability to react to and preempt the markets based on the CS process. Round out the strategy with costefficient passive instruments. a global diversified solution but in Swiss Francs. Let Credit Suisse fully leverage its global advantage. Focus on global financial markets. Reduce foreign-currency exposure either by investing in Switzerland or by hedging back into CHF. July 18 13

14 Credit Suisse s Broad Investment Expertise Credit Suisse (Lux) Systematic Index Fund CHF DETAILS Follows the professional Credit Suisse Investment Process Globally diversified across regions and asset classes Selection of the best cost-efficient passive instruments out of a global universe of 3,000 index instruments High Swiss franc allocation majority of foreign currencies hedged Constant risk monitoring and control SWISS FRANC ETF-BASED SOLUTION CREDIT SUISSE EXPERTISE Higher portion of Swiss Franc currency in the strategic asset allocation Active selection of cost-efficient passive index instruments Offers the bank s entire investment know-how Participate cost-efficiently in global market trends July 18 14

15 ETF-Based Solutions Credit Suisse (Lux) Systematic Index Fund CHF SELECTION OF BEST INSTRUMENTS... DIVERGING WORLD EQUITY INDICES Investors benefit from lower fees because the fund uses highly cost-efficient ETFs and index-oriented funds, which protect against individual security and counterparty risks. Take chances in specific asset class segments. Credit Suisse s sophisticated, proven process selects and weights countries, styles and sectors according to their opportunities and risks. The fund can seize global investment opportunities without losing the structural strength of the Swiss franc by mainly hedging the currency risk of those global investments. Risks: Equities are subject to market forces and hence fluctuations in value which are not entirely predictable MSCI EMU Net TR Local Index MSCI UK Net TR Local Index MSCI Switzerland Net TR Local Index Historical performance indications and financial market scenarios are not reliable indicators of current or future performance. Last data point: Source: Bloomberg, Credit Suisse AG July 18 15

16 Your Available Investment Strategies Credit Suisse (Lux) Systematic Index Fund CHF July 18 16

17 Performance Credit Suisse (Lux) Systematic Index Fund CHF Historical performance indications and financial market scenarios are not reliable indicators of current or future performance. The performance data do not take into account the commissions and costs incurred on the issue and redemption of fund units. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted to your local currency. Last data point: July 18 17

18 Fund Data Credit Suisse (Lux) Systematic Index Fund Fund name Fund domicile / legal form Fund management company Fund manager Currency share classes Single swinging pricing (SSP) 1 Saving on a regular basis Credit Suisse (Lux) Systematic Index Fund Yield CHF Credit Suisse (Lux) Systematic Index Fund Balanced CHF Luxembourg / SICAV Credit Suisse Fund Management S.A., Luxembourg Sacha Widin & Christopher Schütz, Zurich CHF Yes Credit Suisse (Lux) Systematic Index Fund is suitable for the Credit Suisse fund saving plan. Management fee p.a. A-& B-share classes: 0.80% / U-share classes: 0.70% / I-share classes: 0.40% Credit Suisse (Lux) Systematic Index Fund Growth CHF Minimum investment None for retail classes / I-classes: CHF 500,000 Issue date ; repositioning: Initial charge Charged according to the scale of fees of the client s bank (max. 5%) Share classes and ISINs Credit Suisse (Lux) Systematic Index Fund Yield CHF B Credit Suisse (Lux) Systematic Index Fund Yield CHF UB Credit Suisse (Lux) Systematic Index Fund Balanced CHF B Credit Suisse (Lux) Systematic Index Fund Balanced CHF UB Credit Suisse (Lux) Systematic Index Fund Balanced CHF IB Credit Suisse (Lux) Systematic Index Fund Growth CHF B Credit Suisse (Lux) Systematic Index Fund Growth CHF UB CHF LU LU LU LU LU LU LU SSP is a procedure for calculating a fund's net asset value (NAV). Its purpose is to protect active investors from having to finance indirect transaction costs that result from investors entering and exiting the fund. The NAV is increased on the relevant value date in response to net inflows; net outflows trigger a reduction. There may be a threshold for NAV adjustments linked to the net cash position. For further information, please consult the prospectus. July 18 18

19 What You Can Expect Global Investment Knowledge and Expertise to Benefit You ADVANTAGES RISKS An actively managed, globally diversified portfolio focusing on long-term growth Specialists selecting appropriate instruments from a broad investment universe Multiple strategies and methods of implementation available A portfolio managed by a seasoned investment team and monitored according to stringent guidelines, with strict risk control Regular detailed reporting Returns depend on the strategy, asset allocation, securities and correct market views Investors may lose part or all of the invested amount The liquidity of the instruments depends on the product and the respective market environment Results may be affected by the performance of foreign currencies and exchange rate fluctuations Market developments can influence the bank strategy and/or investment models (in rule-based solutions) and result in losses July 18 19

20 Fund Management Team Curriculum Vitae Sacha Widin, Managing Director Head of Multi Asset Funds Sacha Widin has been Head of Multi Asset Funds since May These funds implement the Bank s global investment strategy through direct management of asset classes, regions, countries, sectors and investment styles. The investments are in individual securities (equities, bonds), active and passive funds, and ETFs. Sacha has over 20 years of experience in asset management, as well as extensive expertise in the management of global Multi Asset Class portfolios and funds. Prior to his current position, for more than two years, he led the ETF-based solutions division, which specialized in ETF-based and index-fund-based portfolios and risk-limiting portfolios. Previously Sacha worked for over seven years as analyst and fund manager in the Swiss Equities area. He was also responsible for more than five years for the management of multi-asset class portfolios with discretionary mandates (individual securities and funds). In 1996, Sacha graduated from the Lucerne University of Applied Sciences and Arts with a bachelor s degree in Business Administration and Economics. He is a Certified European Financial Analyst (CEFA) and a member of the Swiss Financial Analyst Association (SFAA). Christopher Schütz, Assistant Vice President Portfolio Manager Multi-Asset Funds Christopher Schütz joined the Multi Asset Funds-Team of Credit Suisse in July 2012 as portfolio manager. These funds implement the Bank s global investment strategy through direct management of asset classes, regions, countries, sectors and investment styles. The investments are in individual securities (equities, bonds), active and passive funds, and ETFs. He graduated from the University of St.Gallen, Switzerland, with a M.A in Banking and Finance. Prior to that, he acquired a M.Sc. in Mathematical Economics from Bielefeld University, Germany. During his studies Mr. Schütz also attended the 1st year of Phd in Economics at W.P. Carey School of Business - Arizona State University, USA. He is also a CFA charterholder and holds the CAIA designation. Christopher is co-manager for the Income oriented Fund families, namely the CS (CH) Interest & Dividend Focus Funds and the CS (Lux) Global High Income. He focuses on the quantitative screening of current and potential investments. Since joining in 2012 Christopher has been responsible for several Multi Asset Class funds including fund of funds and swap based solutions. The individual mentioned above only conduct regulated activities in the jurisdiction(s) where s/he is properly licensed. Please contact your relationshipmanager for further information. July 18 20

21 Your Point of Contact Fund Management Team Sacha Widin Kalandergasse 4, Zurich Switzerland/Liechtenstein Joachim Suter Kalandergasse 4, Zurich Italy/Iberia Harald Reczek Kalandergasse 4, Zurich Benelux Laurent Misonne Rue Jean Monnet, Luxembourg Christopher Schütz christopher.schuetz@credit-suisse.com Kalandergasse 4, Zurich UK/Nordics/Israel/New Markets Shahar Gordon shahar.gordon@credit-suisse.com Columbus Courtyard, London E14 4DA Middle East Frédéric Schmutz frederic.schmutz@credit-suisse.com The Gate, Dubai International Financial Center, Dubai Germany/Austria Axel Hoffmans axel.hoffmans@credit-suisse.com Junghofstrasse 16, Frankfurt am Main Please note that telephone conversations may be recorded. By making a call, you acknowledge your agreement with this business practice. July 18 21

22 Glossary The Most Important Terms in Brief Active management The process of carefully selecting securities with the purpose of trying to outperform a benchmark index. Active portfolio managers use economic data, investment research, market forecasts, and other indicators to make investment decisions. Alternative investment Financial instruments that do not belong to traditional asset classes such as liquidity, fixed income, or equities are referred to as alternative investments or non-traditional assets. The main advantage of alternative investments is that their returns generally tend to have a low correlation with traditional asset classes. Alternative investments include hedge funds, managed futures, real estate, commodities, and corresponding derivatives contracts. Benchmark A reference index that serves as a basis of comparison for the performance of an investment fund/collective investment. Bloomberg Bloomberg is a major global provider of 24-hour financial news and information, including real-time and historic price data, financial data, trading news, and analyst coverage, as well as general news and sports. Boom A boom is a period of rapid economic expansion resulting in higher GDP, lower unemployment, and rising asset prices. Commodities Unprocessed physical goods that result from mining (e.g. precious/industrial metals), deep drilling in the energy sector (e.g. crude oil or natural gas), or agriculture (e.g. wheat, cotton, livestock, etc.). Convertible bond A bond that can be converted into a predetermined amount of the company s equity at certain times during its life, usually at the discretion of the bondholder. Covered call The sale of a call option on an underlying asset which the seller owns. Credit spread A credit spread is the difference in yield between two bonds of similar maturity but different credit quality, usually one of them is a government bond. Credit Suisse House View The Credit Suisse House View is the opinion of the Bank on the outlook for the global economy and financial markets, both tactical and strategic, and is also reflected in the recommended asset allocation to clients. The House View is determined and reviewed by the Credit Suisse Investment Committee on a regular basis. Diversification Strategy of investing broadly across different assets in order to reduce portfolio risk. Dividend A share in the profits of a limited company (corporation) or cooperative. Distributions to the owners of participation certificates and dividend-right certificates are also called dividends. Dividends can take the form of a cash dividend (payment in cash), stock dividend, and dividends in kind. Drawdown Measures the largest single drop from peak to bottom in the value of a portfolio (before a new peak is achieved). Emerging market (EM) Newly industrializing country or market with above-average growth potential and developing financial markets. Emerging market bonds Emerging-market bonds are bonds issued by companies or governments in developing economies. Corporate bonds Fixed-income security issued by a company. July 18 22

23 Glossary The Most Important Terms in Brief Exchange traded fund (ETF) An exchange-traded fund (ETF) is a fund that reflects the performance of the index on which it is based; it may be bought and sold on a stock exchange. Because ETFs are linked to the underlying index, they are passive investment instruments that simply reflect the performance of the underlying. If the value of the index reflected by the fund increases then so does the value of the ETF. Government bonds/sovereign bonds Government bonds are bonds issued by a government. Government bonds were traditionally viewed as low-risk or even risk-free financial instruments because of their government backing. Hard currency Freely convertible currency characterized by low inflation rates in the issuing country and particularly high currency stability. Hedge A derivative transaction that seeks to limit the risk. Hedge funds A hedge fund is an alternative investment that frequently pursues unconventional investment techniques and strategies including the use of derivatives, short-selling, and borrowing, in order to achieve a leverage effect. The risks assumed can therefore be considerable. In many case, hedge funds provide an exceptionally useful means of diversification because of their low correlation with traditional investments. High-yield bonds High-yield bonds carry a credit rating below investment grade. High-yield bonds have a higher risk of default than investment-grade bonds and are therefore expected to generate higher returns. Index Indicator that can be used to compare the value or level of a statistic with its value or level at an earlier point in time, accounting for changes due to factors such as price changes. Inflation Inflation is an increase in the general price level of goods and services. Inflation-linked bonds Bonds whereby the principal and/or coupon are adjusted depending on inflation. Instrument Collective term for any form of standard, tradable financial product. Investment-grade bonds Bonds of satisfactory to very good quality. Macroeconomics In macroeconomics, the development of the economy as a whole is studied. Sectors and regional economic systems are looked at rather than individual economic units. Money market Market in short-term debt instruments, with maturities from overnight to one year. Option-writing The act of selling an option resulting in an obligation. Passive management A market strategy that involves selecting a benchmark index to ensure that investment performance is the same as that of the underlying index. Price earnings ratio (P/E Ratio) A valuation ratio of a company's current share price compared to its per-share earnings. Real estate Real estate is property comprised of land and the buildings on it, as well as the natural resources of the land, including uncultivated flora and fauna, farmed crops and livestock, water, and mineral deposits. Real estate investment trusts (REITs) Real estate investment trusts, or REITs, are publicly traded companies involved in property development, management, or sales. REITs cover various segments of the real estate market. July 18 23

24 Glossary The Most Important Terms in Brief Recession The stage in the economic cycle at which activity declines, characterized by a drop in real gross domestic product. Risk budget Indicates how much risk an investor is willing or able to take. Senior loans Senior loans are debt instruments that provide the lender with a senior claim to the borrower s assets. In the case of bankruptcy of the borrower, senior loans will supersede the claims of other creditors. Stagflation A condition of stagnating economy combined with, or accompanied by, a rise in prices or inflation. Strategic asset allocation (SAA) The strategic asset allocation (SAA) defines the combination of (sub-)asset classes which optimizes the return for a pre-defined risk. Tactical asset allocation (TAA) The tactical ssset allocation (TAA) defines the deviation from the SAA dependent on investment views. Volatility Volatility is a measure of the variation in price of a financial instrument. Yield The yield is the income return on an investment, such as the interest or dividends received from holding a particular security. July 18 24

25 Important Information Switzerland 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. Investment principal on bonds can be eroded depending on sale price, market price or changes in redemption amounts. Care is required when investing in such instruments. Equities are subject to market forces and hence fluctuations in value, which are not entirely predictable. The fund is domiciled in Luxembourg. The representative in Switzerland is Credit Suisse Funds AG, Zurich. The paying agent in Switzerland is Credit Suisse (Switzerland) Ltd., 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. Your Personal Data will be processed in accordance with the Credit Suisse Data Privacy and/or Cookie Policy accessible at your domicile through the official Credit Suisse website at Copyright 2018 Credit Suisse Group AG and/or its affiliates. All rights reserved. July 18 25