Credit Suisse has launched a liquid alternatives fund, saying it could benefit investors as interest rates increase.
The asset management company is putting the launch of its Credit Suisse (Lux) Multi-Trend Fund firmly in the context of rising rates since the first monetary tightening by the US Federal Reserve in December.
Higher rates mean it is increasingly likely that there will be further increases in borrowing costs and a fall in bond prices in 2017, the firm said.
The fund is meant to seek positive returns in any market environment. It invests exclusively in highly liquid instruments, such as index or currency futures, and receives buy or sale signals by observing market trends over short, medium and long-term time horizons.
Yung-Shin Kung, head of quantitative investment strategies at Credit Suisse, said: “Trend-following strategies are an ideal portfolio component in uncertain market phases, since they generate returns regardless of market movements.”
The fund is available for sale in Switzerland, Germany, Austria, Italy, France, the Netherlands and the UK.
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