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Credit Suisse liquidates EM property fund

Credit Suisse liquidates EM property fund

Credit Suisse Asset Management liquidated assets on the CS (Lux) Global Emerging Market Property Equity fund on July 20 2016, the Swiss banking giant has announced.

Closed with immediate effect, the payment of liquidation proceeds is set to go ahead until July 26 2016 and will be paid in the relevant reference currency.

The move comes as the assets of the emerging market property equity fund, which was managed by Werner Richli, fell to $3.5 million, according to a fact sheet released on June 30 2016.

According to Lipper data, the fund had a peak of $38.9 million in assets under management, which was achieved in September 2012, before dropping dramatically in July 2013.

Commenting on the fall in assets, a spokesperson at Credit Suisse AM said: ‘The assets of the Credit Suisse (Lux) Global Emerging Market Property Equity Fund have recently decreased to a level at which efficient asset management is no longer possible.’

The final fact sheet published forecasted a negative outlook, reporting the following caution to investors: ‘The fund offers no capital protection, investors may lose part or all of their investment in this product.’

The fact sheet laid out risks to the fund, identifying the greatest uncertainty as the political and economic situation in emerging market countries.

The Luxembourg-domiciled fund, which was launched in 2008, was largely overweight China, at 38.72%, and recorded a three year return of -17% in US dollar terms to the end of June 2016. This compares to a 12.8% fall by the MSCI EM/Real Estate TR, its Citywire-assigned benchmark, over the same timeframe.

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