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Credit Suisse AM to merge thematic equity funds

Credit Suisse AM to merge thematic equity funds

Credit Suisse Asset Management will merge its consumer focused-equity fund into a luxury goods focused-equity fund, Citywire Switzerland's sister website Citywire Asia has learnt.

The move will see the Swiss-headquartered asset manager combine its Credit Suisse (Lux) Asia Consumer Equity fund and the Credit Suisse (Lux) Global Prestige Equity fund for better management efficiency, effective November 17.

Due to the merger, holders of shares in the consumer equity fund will receive shares from the prestige equity fund.

Investors may redeem their shares in the consumer equity fund on any day until November 14 at 15:00 CET.

In the wake of liquidation of the consumer equity fund, Juan Manuel Mendoza and his team will continue to manage the prestige equity fund, which he has been running since May 2015.

Mendoza has also been running the consumer equity fund since 2008.

‘The two funds aim to exploit long-term structural growth trends in the consumption industry while share the same investment process, but each applied a different focus in terms of region,’ a source said.

‘The consumer fund focuses on the growing consumer sector in Asia, which consists of Asian companies primarily; while the prestige equity fund concentrates on the growing global luxury goods sector, which includes companies from Europe, US and Asia.’

‘The transferring fund is based on a market index for Asia; while the absorbing fund on a global market index.’

The fund currency will be changed from dollar to euro, however, the currency exposure change in different share classes will not impact investors, except that CS (Lux) Asia Consumer Equity fund UB USD will be transferred into the CS (Lux) Global Prestige Equity fund UB EUR.

The original management fee of CS (Lux) Asia Consumer Equity fund, which ranges between 0.9% to 1.92% for different share classes, will remain the same, after its merger into the Credit Suisse (Lux) Global Prestige Equity fund.  

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