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Credit Suisse follows trends with new UCITS fund
24 January 2017
Luxembourg-domiciled vehicle receives its buy or sale signals by observing market trends
Credit Suisse has launched a UCITS-compliant fund focused on
trend-following, a strategy commonly used by hedge funds using
rule-sets that react to trends in the price and volatility of
stocks, bonds and currencies.
Led by quantitative investment specialist Yung-Shin Kung,
the new fund, dubbed 'Multi-Trend’ will invest
in index or currency futures in a bid to profit from a mix of
rising and falling asset classes.
Experts within the Swiss bank's asset management unit said
they wants to "provide an alternative for this particular
market environment," in which bond prices are likely to fall
due to rising rates while equity valuations are already
The Luxembourg-domiciled vehicle receives its buy or sale
signals by observing market trends over short, medium and
long-term time horizons, a strategy described by Kung as an
"ideal portfolio component in uncertain market phases."
"It has become increasingly likely that we will see
further increases in borrowing costs and accordingly falling
bond prices in 2017," he said.
"This presents investors with the challenge of achieving
sufficient risk diversification for their portfolios, with
many key equity benchmarks already at record highs."
The process has been used by Credit Suisse for many years
and the firm manages around $400m invested in trend-following
strategies out of a total $10.5bn in alternative investment
The new 'multi-trend' fund has been approved for
distribution in Switzerland, Germany, Austria, Italy, France,
the Netherlands and the UK.