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Credit Suisse to merge away luxury goods fund

Credit Suisse to merge away luxury goods fund

Investment firm Credit Suisse has unveiled plans to close its long-running luxury goods fund and merge its assets into a similar strategy.

In a letter to shareholders, the Swiss group said the CS (Lux) Luxury Goods Equity fund would be formally closed on 11 May.

The fund, which currently has €122 million in assets, was launched in 2000 and has been run by Juan Manuel Mendoza, the firm’s head of Asian equities, for the past seven years.

Credit Suisse said owing to the fund operating a similar mandate to the existing CS (Lux) Global Prestige Equity fund, the firm planned to combine the two to improve efficiencies.

Both funds are thematic equity funds that attempt to capture long-term trends in the luxury goods world. In addition, both funds are run on a relatively concentrated basis of 25 to 50 stocks in each portfolio.

The €189 million Global Prestige Equity fund is also overseen by Mendoza, who became lead manager in May 2014 following the departure of Marjorie Sonigo. This fund was first launched in July 2006.

Under the terms of the merger, the assets of the Luxury Goods Equity fund will be rolled into the Global Prestige Equity fund and the restructuring would officially be complete by 15 May.

The CS (Lux) Global Prestige Equity Fund returned 15% in US dollar terms over the three years to the end of March 2015. This is while the CS (Lux) Luxury Goods Equity Fund returned 13% over the same timeframe.

Both funds are benchmarked against the MSCI World/Consumer Discretionary TR, their Citywire-assigned index, which rose 63.8% over the same period.

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