Update on subfunds of Credit Suisse Virtuoso SICAV-SIF Illiquid fund assets being separated, subscriptions and redemptions to be resumed
March 31, 2021
March 31, 2021
The fiduciary responsibility of both the funds’ Board of Directors and Credit Suisse Asset Management is to act in the best interests of investors in those funds. Since a certain part of the funds’ assets is currently subject to considerable uncertainty with respect to their valuation, as communicated on March 5, 2021 , the Board of Directors has decided to create a side pocket for each of the four funds containing only those assets affected by this uncertainty. A dedicated share class will be set up for each of them.
What this means for investors
Investors will receive a separate share class in addition to the original one and hold two share classes for a certain period of time: the original share class reflecting the liquid part of the funds’ assets and the additional one reflecting the illiquid part.
For each fund and its respective share classes, there will only be one additional share class. Irrespective of their original share class, investors in the Credit Suisse (Lux) Multi Strategy Bond Fund, Credit Suisse (Lux) Multi Strategy Alternative Fund and Credit Suisse (Lux) Qatar Enhanced Short Duration Fund will receive an additional share class labelled as “USD SP”. Investors in the Credit Suisse (Lux) Institutional Target Volatility Fund EUR will receive an additional share class labeled as “EUR SP”. No currency hedging will be implemented for these additional share classes. No management and performance fees will be applied.
This separation of the illiquid part of the funds’ assets will make it possible to re-open the funds for subscriptions and redemptions with respect to the shares that are not SP shares. Investors will thereby be able to continue to benefit from the comprehensive fund strategies offered by Credit Suisse Asset Management.
|Fund name||Original share class||Additional share class|
|ISIN, valor no.||ISIN, valor no.|
|Credit Suisse (Lux) Multi Strategy Bond Fund||USD IB||LU1706613111, 38799653||USD SP||LU2319534694, 110542486|
|Credit Suisse (Lux) Multi Strategy Bond Fund||USD IB5||LU1706613897, 38799659|
|Credit Suisse (Lux) Multi Strategy Bond Fund||USD IB10||LU1706613970, 38799660|
|Credit Suisse (Lux) Multi Strategy Bond Fund||USD IA||LU1706613467, 38799656|
|Credit Suisse (Lux) Multi Strategy Bond Fund||USD IA5||LU1946055016, 46209500|
|Credit Suisse (Lux) Multi Strategy Bond Fund||USD IA10||LU1946055107, 46209605|
|Credit Suisse (Lux) Multi Strategy Bond Fund||USD QB||LU1706614275, 38799662|
|Credit Suisse (Lux) Multi Strategy Bond Fund||EUR IBH||LU1706613202, 38799654|
|Credit Suisse (Lux) Multi Strategy Bond Fund||EUR QBH||LU1946055446, 46209443|
|Credit Suisse (Lux) Multi Strategy Bond Fund||USD DB||LU1706612576, 38798095|
|Credit Suisse (Lux) Multi Strategy Alternative Fund||USD EB||LU1839133870, 42212662||USD SP||LU2319534348, 110542467|
|Credit Suisse (Lux) Multi Strategy Alternative Fund||EUR EBH||LU1839134092, 42212674|
|Credit Suisse (Lux) Multi Strategy Alternative Fund||CHF EBH||LU1839133953, 42212673|
|Credit Suisse (Lux) Qatar Enhanced Short Duration Fund||USD QB||LU1242419957, 28425270||USD SP||LU2319534421, 110542476|
|Credit Suisse (Lux) Institutional Target Volatility Fund EUR||EUR IB3||LU1706614358, 38799675||EUR SP||LU2319534850, 110543504|
|Credit Suisse (Lux) Institutional Target Volatility Fund EUR||EUR MA20||LU0435979819, 10311677|
Suspension of redemptions and subscriptions
|Dispatch of letter to depositors||31.03.2021|
|Establishment of side pockets||01.04.20211|
|Resumption of subscriptions and redemptions of original share classes||07.04.2021|
1 On basis of Net Asset Values (NAV) as of March 31, 2021.
The affected funds are invested in Credit Suisse Supply Chain Finance Funds (SCFFs). Those are Credit Suisse Nova (Lux) Supply Chain Finance High Income Fund and Credit Suisse Supply Chain Finance Investment Grade Fund. Each of these SCFFs suspended the calculation of its net asset value and the issuance, redemption, and conversion of shares with effect as of March 1, 2021, and the decision to liquidate each of the funds was subsequently taken with effect as of March 4, 2021.
Taking into account the suspension of the SCFFs and the current impossibility to determine an accurate price for their shares, the Board of Directors decided to temporarily suspend also the calculation of the net asset value per share, the issuance, redemption, and conversion of shares from or into the four funds that are invested in the SCFFs. This decision took effect on March 1, 2021.
The decision to create separate share classes for the impacted assets will make it possible to re-open the four funds invested in the SCFFs for subscriptions and redemptions as of April 7, 2021, with respect to the shares that are not SP shares. It will also allow for the liquidation over time of the illiquid parts of the funds’ assets managed in a separate account (side pocket) and distribution of the proceeds to investors in cash from time to time.
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 liquidation of the additional share classes 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 31, 2021, informing them about the creation of the side pockets. In addition, a securities settlement advice will be sent to inform affected clients of the number of their shares to be exchanged for a corresponding number of side pocket shares.