News
Credit Suisse Asset Management winds down its Supply Chain Finance Funds
March 5, 2021
News
March 5, 2021
Following its decision to suspend subscriptions and redemptions for the Credit Suisse Supply Chain Supply Funds as of March 1, 2021, Credit Suisse Asset Management - acting in the best interests of investors in its funds – has decided to wind down all of the four funds, effective March 4, 2021.
The valuation uncertainty with respect to certain investments, the reduced availability of insurance coverage for new investments, and the substantial challenges with sourcing suitable investments make it currently unachievable for the Credit Suisse supply chain funds to remain invested in accordance with their investment policies. Credit Suisse Asset Management fund boards believe that these market conditions will continue and that the funds can no longer be appropriately managed, and have therefore decided to terminate the funds effective March 4, 2021.
As a consequence, all shares of the Credit Suisse Supply Chain Finance Funds will be compulsorily redeemed and will participate proportionally to the fund’s assets. Pending redemption requests will be cancelled. The first payments amounting to approximately 80% of the available cash and cash equivalents will be proceeded starting on March 8, 2021, for the Luxembourg-domiciled funds, and later the same week for the Liechtenstein-domiciled fund. The remaining liquidation proceeds will be paid out as soon as practicable in one or more instalments until the investors receive the funds’ total net liquidation proceeds. Investors will receive notification of such payments. Management fees are waived with immediate effect.
Affected funds and cash and cash equivalents in % of fund volume as of 03.03.2021:
Credit Suisse (Lux) Supply Chain Finance Fund |
39% |
Credit Suisse Nova (Lux) Supply Chain Finance High Income Fund |
18% |
Credit Suisse Nova (Lux) Supply Chain Finance Investment Grade Fund |
55% |
Credit Suisse Supply Chain Finance Investment Grade |
70% |
Do clients need to take any action?
Investors do not need to take any action. The proceeds from the liquidation will be credited to their accounts in instalments. Payments will be made in the fund currency. Clients who hold an account in the corresponding currency and have issued appropriate instructions will have the liquidation proceeds credited to this account. Otherwise, the proceeds will be credited to the client’s reference currency account.
Will an alternative investment option be available?
There are currently no plans to offer an alternative investment option to investors.
Will the liquidation entail any costs or fees for clients?
Any costs or charges that are incurred in relation to the liquidation of all of the SCFFs will be borne by the SCFFs. Management fees are waived with immediate effect.
What are the tax implications?
Liquidations may have tax implications. As our clients have very different tax positions, Credit Suisse is unable to make general statements. We therefore recommend that clients contact their tax advisors to find out what the tax implications of the fund closure will be in their native country, country of residence, or country of domicile.
How will clients be informed?
A letter to depositors will be sent to the affected clients around March 9, 202, informing them about the liquidation and the payment of the liquidation proceeds. In addition, clients will receive account statements once payouts have been credited to their accounts.