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Credit Suisse scraps systematic approach on Asia Pacific fund

Credit Suisse scraps systematic approach on Asia Pacific fund

Credit Suisse has restructured its Asia Pacific Income Maximiser Equity fund to simplify the investment approach, and lead manager Juan Manuel Mendoza has stepped down from the fund.

The Swiss asset manager announced plans to change the Luxembourg-domiciled fund in October, with the change in name and investment style set to come into effect in November 17.

The fund, which has $25 million in assets and will be known as the Credit Suisse (Lux) Asia Pacific Income Equity fund, will no longer use a systematic covered call strategy and will instead physically invest in high-yielding stocks.

While the investment approach will remain the same, focused on Asia Pacific blue chip stocks, the change is designed to simplify the approach for investors and create more cost-efficient management of the fund.

In addition to the changes, Juan Manuel Mendoza, who had run the fund since its launch with Shiling Guo, will step back from the strategy. Mendoza will be replaced by Rushil Khanna.

It marks the latest changes for Mendoza, who saw his Credit Suisse (Lux) Asia Consumer Equity and Credit Suisse (Lux) Global Prestige Equity funds merged as part of efforts to improve efficiencies in the fund range.

The CS (Lux) Asia Pacific Income Maximiser Equity fund lost 13.7% in US dollar terms over the three years to the end of October 2016. This compares to a fall of 0.25% by its Citywire-assigned benchmark, the MSCI AC Asia Pacific TR USD, over the same period.

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