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Credit Suisse (Lux) Fixed Maturity Bond Fund 2020 S-1
Combining the Best Attributes of Bonds and Funds
The fund’s objective is to achieve an attractive yield pickup by investing mainly in USD-denominated corporate bonds with a maximum maturity on September 30, 2020. It will be actively managed, following a global approach to increase the opportunity set and expand the investment universe. This will allow the portfolio management team to more effectively construct a “best” bonds portfolio.
In September 2020, when the fund matures, investors will be repaid their share of its net asset value. The fund shows a payout structure that is similar to that of a single bond investment but with additional diversification benefits. The total return at maturity profits from higher interest rates and is negatively impacted by lower interest rates. However, the portfolio profits today from higher locked-in rates in a continued low yield environment.
Watch the video to learn more about the fund's features and how it achieves an attractive yield pickup
The initial subscription period for the fund runs from September 5 to its launch date, September 28, 2016. After the launch, the fund will remain open for subscriptions (at the NAV/SSP) until end of November 2016, though an earlier closing of the fund is possible.
- Repayment of capital, (subject to default risk of invested bonds)
- Attractive gross indicative yield-to-maturity of 3.0% to 3,5%, depending on market conditions1
- Regular income stream over a fixed time horizon
- Target of semi-annual payouts of 2% p.a. for the USD share class
- A well-diversified global portfolio including developed and emerging market debt and investment grade and non-investment
- Holdings with an average investment grade credit rating
- Professional management, active monitoring and risk management
- Decreasing interest rate and spread risk over time
- Daily redemptions
1Assuming reinvestment rate is equal to yield-to-maturity. The final portfolio value depends on number of defaults and reinvestment rate over the lifetime of the fund. Target yield or payout is not a projection, prediction or guarantee for future performance, and there is no certainty that the target yield or payout will be reachedThe shown yield-to-maturity is calculated as of 30.06.2016 and does not take into account costs, changes in the portfolio, market fluctuations and potential defaults. The yield to maturity is an indication only and is subject to change.
- Bonds carry the risk of default; if the issuer defaults or goes into liquidation, investors may lose some or all of their invested capital
- The investments are subject to market fluctuations
- There is no guarantee for the level of coupon payments or the value of the investments at maturity or at any other time
There are no projection, prediction or guarantee for future performance and there is no certainty that the target return will be reached.
The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein was produced by Credit Suisse Group AG and/or its affiliates and subsidiaries (hereafter "CS") with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. Investment principal on bonds can be eroded depending on sale price, market price or changes in redemption amounts. Care is required when investing in such instruments. Credit Suisse (Lux) Fixed Maturity Bond Fund 2020 : This fund is domiciled in Luxembourg. The representative in Switzerland is Credit Suisse Funds AG, Zurich. The paying agent in Switzerland is Credit Suisse AG, Zurich. The prospectus, the simplified prospectus and/or the Key Investor Information Document (KIID) and the annual and half-yearly reports may be obtained free of charge from Credit Suisse Funds AG, Zurich or from any branch of Credit Suisse AG in Switzerland.
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The shares offered are exclusively offered to a limited group of investors. This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have personally been sent. This material and the transactions described therein are not nor have been subject to the review and supervision of the Liechtenstein Financial Market Authority.
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