Credit Suisse Asset Management filed
to launch a new fixed income fund targeted towards medium to long-term investors who want a riskier, and higher-return product than money market funds.
The Credit Suisse Target Return Fund seeks to have an absolute return of 200 basis points on top of the U.S. dollar London Interbank Offered Rate (LIBOR). Managers will invest at least 80 percent of net assets in fixed income securities, officials stated in the filing.
The average modified duration of the fund's investments will be from zero to four years. Modified duration is the ratio for one plus a security's yield divided by the duration of that security.
The U.K.-based Credit Suisse Target Return Team -- Dilip Rasgotra, Winifred Robbins, Jana Benesova-Tuma, John de Garis, Craig Ruch and Ahmed Talhaoui -- will manage the fund on a day-to-day basis.
That same team already manages a separate account similar to the Target Return Fund.
Officials did not indicate total operating expenses, but 12b-1 fees will be 25 basis points
on Class A shares and 100 basis points on Class C shares. The fund's management fee will be 70 basis points.
The fund requires a minimum initial investment of $2,500.
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