Credit Suisse Asset Management is adding a global healthcare fund and a European convertible bond ...
Credit Suisse Asset Management is adding a global healthcare fund and a European convertible bond fund to its Luxembourg umbrella, writes Dylan Emery.
Emil Doerig will be running the Healthcare fund. Stephen Wander, head of retail European marketing, said: "Emil Doerig is an extremely experienced fund manger who also runs an equivalent fund in Switzerland."
The current environment is not particularly good for the launch of equity products, but Credit Suisse is confident in the story behind the healthcare sector and this expansion of the Luxembourg range is very much a long-term commitment.
Wander said: "There is a shift in demographics taking place. People are living longer and want a sustained standard of living."
Furthermore, a number of innovations are coming through the pharmaceutical industry and Wander feels this is a sector where there are significant opportunities for restructuring.
Win Robbins, from the London-based fixed-interest team, will be running the convertible bond fund.
The timing for this launch may be kinder to sales than the healthcare fund. Wander believes that in a volatile market investors will be looking for stability in their portfolios. However, there is still a desire to have access to the type of returns people have become used to during the US bull market. Convertible bonds, according to Wander, allow a degree of exposure to the equity markets, but with a greater degree of security regarding asset value.
Wander said: "Some investors may want some downside protection during periods of market volatility Ã convertibles are a more defensive way of playing the equity market for people who may not have the same risk budget."
The funds will be euro-denominated and there is no minimum investment. The annual management charge for the healthcare fund is 1.92% and 1.2% for the bond fund. An institutional share class, with a minimum of E3m, will be added when there is demand for it.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m