Credit Suisse Asset Management has set up a new diversified and liquid trend-following fund, the Credit Suisse Multi-Trend Fund. It will aim to produce positive returns from both falling and rising equity, bond, currency and commodity markets.
The fund, which is structured as a UCITS-compliant mutual fund domiciled in Luxembourg, will use liquid instruments such as index or currency futures to react to market developments and trends over short-, medium- and long-term horizons. “Trend-following strategies are an ideal portfolio component in uncertain market phases, since they generate returns regardless of market movements,” commented Yung-Shin Kung, head of quantitative investment strategies at Credit Suisse.
Globally, $400 million is now invested in trend-following strategies. The fund has a minimum investment of €500,000 for institutional investors and a management fee of either 0.9% or 1.1% depending on the tranche used. It has daily liquidity and is approved for distribution in the UK and six other European markets.