Fixed income markets are currently dominated by low interest rates and increasing uncertainty. In this kind of environment, dynamic and comprehensive fixed income management is more important than ever. Therefore, the Credit Suisse Fund (Lux) Fixed Income Cycle Invest applies a fixed income cycle approach. It takes advantage of the whole global investment universe and invests in instruments likely to profit from the current market environment while using a flexible investment approach. The fund aims to target attractive sustainable risk-adjusted returns, independent of the current market environment. The strategic allocations are driven by the Credit Suisse Global Investment Committee with strong emphasis on risk mitigation when necessary.
The current fixed income market is challenged by exceptionally low yields and modest risk premiums. This environment requires holistic solutions and opportunistic investment approaches in the fixed income universe.
The Credit Suisse Fund (Lux) Fixed Income Cycle Invest is an integrated fixed income investment solution and is suitable for all investors seeking an actively managed investment solution which is geared to the fixed income investment cycle. The objective of the fund is to achieve capital appreciation by engaging in active fixed income sector rotation, from government bonds to different credit asset classes across the quality spectrum to capture global investment opportunities based on the development of the business cycle.
«Active risk management is key for outperformance in the current fixed income environment. Unlike traditional bond funds, the new fund may take advantage of rising interest rates as well as widening credit spreads through an active risk mitigation approach» says Michel Degen, Co-Head Fixed Income, Asset Management division at Credit Suisse in Zurich.
This week Credit Suisse has started taking subscriptions for the Credit Suisse Fund (Lux) Fixed Income Cycle Invest which will launch on February 11, 2011.