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CS liquidates FoFs and reshapes systematic return fund

CS liquidates FoFs and reshapes systematic return fund

Credit Suisse has liquidated a fund of funds CS (Lux) Prima Growth fundCitywire Switzerland can reveal. 

The fund manager responsible for the strategy was Stéphane Julen, head of fundamental strategies at the firm.

Julen is still in charge of the CS (Lux) Multi-Advisor Equity Alpha fund and CS (Lux) Prima Multi-Strategy fund.

Dirk Wieringa, an alternative investments adviser at the firm, said the liquidated strategy, CS (Lux) Prima growth fund, was one of two funds targeting the European market as a classical fund of Ucits funds along with the CS (Lux) Prima Multi-Strategy fund. However, it was more concentrated, with a focus on growth strategies.

‘As part of our strategy to offer innovative investment concepts, investors have reinvested proceeds from the Prima growth fund into the CS (Lux) Multi-Advisor Equity Alpha Fund and other solutions.’

The CS (Lux) Multi-Advisor Equity Alpha fund, however, has a different investment approach. The fund doesn't invest in the underlying funds but takes the best ideas of up to seven advisers to create a long/short portfolio. 

Wieringa said a lot of investors are talking about alternative risk premia or quantitative investment strategies at the moment. However, he added, the demand is even more prominent for the classical fund of funds structures.

Shifting focus

Meanwhile, the firm has decided to recalibrate another strategy from its fundamental bucket, the CS (Lux) Systematic Return fund, which was launched in August 2014. 

From March 2017, the fund managers in charge are Bernhard Hechinger and Mehmet Güngörmez, who succeeded Dietmar Peetz and Daniel Schmitt.

Wieringa said the fund shifted its focus towards momentum strategies in order to create a cost-efficient alternative to CTAs and other trend-following exposures.

‘Better exposure to the momentum investment style in this fund will be constructed through a series of trend-following algorithms provided by major investment banks,’ he added.

The CS (Lux) SystematicReturn fund returned 4.95% in Swiss franc terms over the past year to the end of March 2017. Its technical indicator, Lipper Global Alternative Multi Strategies, has returned 5.67% over the same timeframe. 

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