Credit Suisse Asset Management launches Emerging Market Corporate Short Duration Bond Fund

The fund expands Credit Suisse's emerging market bond fund range.

August 23, 2021

Today, Credit Suisse Asset Management announced the launch of the Credit Suisse (Lux) Emerging Market Corporate Short Duration Bond Fund, offering investors well-diversified exposure to an attractive market segment. The fund's investment process integrates ESG factors and aims to reduce the overall CO2 emission intensity of the portfolio compared to the benchmark.

Yields from emerging market issuers at the governmental, quasi-sovereign, and corporate level can be very competitive compared to developed market bonds. Emerging market corporate short-duration bonds in particular are sparking investors’ interest due to their relatively low correlation with their developed world counterparts, which makes them a useful source of risk diversification.

To provide clients with the opportunity to invest in this segment, Credit Suisse Asset Management opened the Credit Suisse (Lux) Emerging Market Corporate Short Duration Bond Fund for subscriptions today. The actively managed fund will offer investors exposure to emerging market short-duration corporate, quasi-sovereign, and sovereign bonds with a bias toward corporate high-yield bonds, drawing on the deep emerging market fixed-income expertise of Credit Suisse Asset Management. Apart from the benchmark universe of emerging market bonds with maturities of one to three years, the fund will also be able to invest in bonds with longer maturities (mainly three to five years) while hedging the overall interest rate risk to below 2.5 years.

"Emerging market corporate short-duration bonds offer compelling risk/return characteristics," says Gonzalo Borja, Head of Emerging Markets Fixed Income at Credit Suisse Asset Management. "Our fund will enable investors to gain well-diversified, efficient exposure to this distinct segment, which ideally complements a fixed-income portfolio."

The performance of the fund will be measured against the JP Morgan ESG CEMBI Broad Diversified 1 to 3 years. Apart from targeting financial returns, the fund will also include environmental, social, and governance (ESG) considerations into its investment process. It will apply exclusions defined in the Credit Suisse Sustainable Investment Framework and integrate material ESG factors into its credit assessment. Additionally, the fund will aim to significantly reduce the overall CO2 emission intensity of the portfolio compared to the benchmark. The fund is classified as an Article 8 product according to the Sustainable Finance Disclosure Regulation.

The Emerging Market Fixed-Income team of Credit Suisse Asset Management manages approximately CHF 12.8 bn in AuM, as of June 30, 2021, across strategies run by teams based in Switzerland and Asia. The fund will be co-managed by Andreas Fischer, portfolio manager of the Credit Suisse (Lux) Emerging Market Corporate Investment Grade Bond Fund, and Andranik Safaryan, co-portfolio manager of the Credit Suisse (Lux) Emerging Market Corporate Bond Fund. The subscription period will last from August 23, 2021, until the official launch on September 15, 2021.

Further information

Credit Suisse Asset Management (Switzerland) Ltd.
Credit Suisse Asset Management (Switzerland) Ltd. is part of the Asset Management division of Credit Suisse Group. Asset Management manages assets worth over CHF 471 bn worldwide (as at June 30, 2021). Backed by the global market presence of Credit Suisse Group, Asset Management offers active and passive solutions for traditional and alternative investments as well as proven product expertise in Switzerland, EMEA, APAC, and the Americas. Great importance is attached to sustainability. We offer a broad selection of active and passive investment funds that comply with the Credit Suisse Sustainable Investment Framework or replicate a sustainable index. In doing so, we pursue differing approaches, in which environmental, social and governance (ESG) criteria are applied at various points in the investment process.

This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not a guide to the future. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof. 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). The tax treatment depends on the individual circumstances of each client and may vary over time. Credit Suisse does not provide tax advice, and tax implications have not been taken into consideration when calculating the returns. Credit Suisse (Lux) Emerging Market Corporate Short Duration Bond Fund: This fund is domiciled in Luxemburg. The representative in Switzerland is Credit Suisse Funds AG, Zurich. The paying agent in Switzerland is Credit Suisse (Switzerland) Ltd, 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 the representative or from any branch of Credit Suisse AG in Switzerland.
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