Key Takeaways
- • A Credit Suisse Fund will execute a 1-for-10 reverse share split, effective September 30, 2026, consolidating every ten existing shares into one new share at ten times the pre-split price per share.
- • The reverse split will not alter the intrinsic value of shareholder investments but will reduce the number of outstanding shares proportionately and result in a new CUSIP identifier for trading purposes.
- • Shareholders holding share quantities that are not exact multiples of ten will receive fractional shares, which brokers will redeem for cash—potentially triggering taxable events for affected investors.
- • The reverse split is a common structural adjustment undertaken by funds to maintain compliance with exchange listing standards or address share price thresholds, with no change to the stated principal amount or fund's underlying asset composition.
Summary
A Credit Suisse Fund will implement a 1-for-10 reverse share split effective September 30, 2026, according to SEC filings and fund announcements. Under the consolidation, every ten pre-split shares held by shareholders will be automatically combined into one new share trading at approximately ten times the previous per-share net asset value. The fund will receive a new CUSIP identifier upon the split's effectiveness, though the ticker symbol remains unchanged.
The reverse split will have no material impact on the total value of shareholder positions. As with similar corporate actions, the consolidation reduces the number of outstanding shares in direct proportion to the increase in per-share price. This structural adjustment is designed to maintain exchange listing compliance or address minimum price thresholds that some exchanges impose on publicly traded securities.
A critical consideration for shareholders involves fractional share treatment. Investors holding quantities of shares that do not represent exact multiples of ten will receive fractional shares resulting from the consolidation. These fractional shares will be redeemed by brokers and converted to cash payments sent to shareholders' accounts. Such redemptions may generate taxable capital gains or losses for affected shareholders, depending on the original cost basis and current market price of the fund's shares.
Fund management notes that shareholders should consult their tax advisors regarding potential tax consequences and monitor their positions to understand whether their holdings will result in fractional share redemptions. The reverse split itself does not change the stated principal amount of the fund's securities or its underlying investment composition; it is purely a mechanical adjustment to share structure and trading denomination.
The reverse split will have no material impact on the total value of shareholder positions. As with similar corporate actions, the consolidation reduces the number of outstanding shares in direct proportion to the increase in per-share price. This structural adjustment is designed to maintain exchange listing compliance or address minimum price thresholds that some exchanges impose on publicly traded securities.
A critical consideration for shareholders involves fractional share treatment. Investors holding quantities of shares that do not represent exact multiples of ten will receive fractional shares resulting from the consolidation. These fractional shares will be redeemed by brokers and converted to cash payments sent to shareholders' accounts. Such redemptions may generate taxable capital gains or losses for affected shareholders, depending on the original cost basis and current market price of the fund's shares.
Fund management notes that shareholders should consult their tax advisors regarding potential tax consequences and monitor their positions to understand whether their holdings will result in fractional share redemptions. The reverse split itself does not change the stated principal amount of the fund's securities or its underlying investment composition; it is purely a mechanical adjustment to share structure and trading denomination.
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