Credit Suisse terminates fund
Ratings house Standard & Poor’s has withdrawn its three-star rating from the Credit Suisse/Tremont Index Strategies Fund after Credit Suisse Asset Management decided to terminate the fund and close all investments and redemptions.
The cessation of investments and redemptions took effect from Monday.
Commenting on the move, S&P Fund Services analyst Simon Scott said following a review of the fund by Credit Suisse, it was felt the vehicle designed to provide Australian investors with access to the underlying Credit Suisse/Tremont Hedge Index Tracker was not optimal in the current market environment.
He said the fund offered was a leveraged solution to the problem of offering daily liquidity around a fund of hedge funds product. With the market events of recent months, maintaining this fund was not deemed to be in the best interests of investors.
“The winding up of the fund is expected to result in the realisation of assets at the end of the first quarter of 2009, with full proceeds available within 75 calendar days of the quarter end,” Scott said.
He pointed out the action only applied to the Credit Suisse/Tremont Index Strategies Fund and not the underlying Credit Suisse/Tremont Hedge Index Tracker or Credit Suisse/Tremont Index, both of which continued to offer investment opportunities.
However, he said a fund designed to provide Australian investors with access to these two products would no longer be available.
AUTHOR
Mike Taylor
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