Key Takeaways
- • Credit Suisse Asset Management has launched the Credit Suisse Liquid Alternative Fund, a mutual fund designed to offer hedge fund-like return characteristics with daily liquidity, greater transparency and 1099 tax reporting.
- • The fund is offered in Class A (CSQAX), Class C (CSQCX) and Class I (CSQIX) institutional shares, with minimum initial investments of USD2,500 for taxable accounts or USD500 for IRAs on the retail share classes.
- • Credit Suisse positions the fund as a structural alternative to offshore limited partnership hedge fund vehicles, which it describes as tax-restrictive, lengthy and expensive to access.
- • The launch extends Credit Suisse's growing suite of alternatives-focused mutual funds in the Americas.
Summary
Credit Suisse's Asset Management division has launched the Credit Suisse Liquid Alternative Fund, a mutual fund that seeks to provide access to hedge fund-like returns while offering daily liquidity, increased transparency and 1099 tax reporting, according to the firm's announcement reported by Hedgeweek. The fund complements the expanding range of alternatives-focused mutual fund offerings available through the division.
Jordan Drachman, Head of Research for Credit Suisse Alternative Beta Strategies, said hedge funds can improve portfolio diversification and reduce correlation and volatility, but that investors needing access to capital are often constrained by the illiquid nature of hedge funds. He added that investing through offshore vehicles can be tax-restrictive, lengthy and expensive. Drachman said the fund may offer a liquid alternative for accessing the risk and return characteristics of hedge funds without the structural impediments of limited partnerships.
Robert Alderman, Head of Retail Distribution for Credit Suisse Asset Management in the Americas, said alternative investments are a critical component of a well-diversified portfolio and that the firm aims to fill a gap for clients seeking more liquid, transparent and cost-efficient access to alternatives. He described Credit Suisse's Asset Management division as one of the industry's largest hedge fund allocators and most established alternative investment solution providers.
The firm cites more than a decade of experience in hedge fund index and replication strategy development and one of the industry's largest proprietary hedge fund databases. The Credit Suisse Liquid Alternative Investment Team has worked together since 2007 and has a combined 50 years of investment and hedge fund industry experience.
The fund is offered in Class A (CSQAX) and Class C (CSQCX) shares, each with minimum initial investments of USD2,500 for taxable accounts or USD500 for IRAs. Class I (CSQIX) institutional shares are also available.
Jordan Drachman, Head of Research for Credit Suisse Alternative Beta Strategies, said hedge funds can improve portfolio diversification and reduce correlation and volatility, but that investors needing access to capital are often constrained by the illiquid nature of hedge funds. He added that investing through offshore vehicles can be tax-restrictive, lengthy and expensive. Drachman said the fund may offer a liquid alternative for accessing the risk and return characteristics of hedge funds without the structural impediments of limited partnerships.
Robert Alderman, Head of Retail Distribution for Credit Suisse Asset Management in the Americas, said alternative investments are a critical component of a well-diversified portfolio and that the firm aims to fill a gap for clients seeking more liquid, transparent and cost-efficient access to alternatives. He described Credit Suisse's Asset Management division as one of the industry's largest hedge fund allocators and most established alternative investment solution providers.
The firm cites more than a decade of experience in hedge fund index and replication strategy development and one of the industry's largest proprietary hedge fund databases. The Credit Suisse Liquid Alternative Investment Team has worked together since 2007 and has a combined 50 years of investment and hedge fund industry experience.
The fund is offered in Class A (CSQAX) and Class C (CSQCX) shares, each with minimum initial investments of USD2,500 for taxable accounts or USD500 for IRAs. Class I (CSQIX) institutional shares are also available.
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