Credit Suisse is launching a new target-dated bond fund to capitalise on the success of a similar strategy which saw a surprisingly large amount of inflows over the past four months.
The Swiss asset management firm unveiled the Credit Suisse (Lux) Fixed Maturity Bond Fund 2020 S-1, which is a Ucits-compliant fund.
It will mainly invest in US dollar corporate bonds with a maximum maturity September 30, 2020. Lead manager on the fund is Romeo Sakac, who is a senior portfolio manager at the firm.
The target allocation of the fund covers both investment grade and non-investment grade bonds from developed and emerging markets.
Dependent on market conditions the projected gross yield to maturity is between 3.0%-3.5%. It is broadly diversified and daily redemption opportunities ensure high liquidity.
A similar target-dated bond fund launched in May 2016 saw assets under management reach €3.33 billion shortly after launch and was closed to new investors in June ahead of the planned September close.
Commenting on the launch, Luc Mathys, managing director and deputy head of fixed income at Credit Suisse, said: ‘With Credit Suisse (Lux) Fixed Maturity Bond Fund 2020 S-1, we are implementing an established concept that is in high demand among investors.'
The subscription period for the fund ends on September 28 2016. It is available for sale in Germany, Austria, Switzerland, Liechtenstein, Luxembourg, the UK, France, Italy, Spain, the Netherlands, Norway, Sweden and Finland, as well as Singapore.