Credit Suisse Launches Asia Bond Fund

by Carla Johnson, Investors Offshore.com

23 August 2006

Credit Suisse has launched a new bond fund that provides investors with a gateway to the potentially attractive returns from the fixed-income markets of Asia.

According to Credit Suisse, the Credit Suisse Bond Fund (Lux) Asia provides investors with opportunities for currency gains and access to high-interest bonds. Moreover, it exhibits a low degree of correlation with other asset classes and the G7 bond markets.

The bank says the fund is suitable for both retail and institutional investors seeking exposure to the Asian region through a diversified bond investment.

"Asia has been enjoying a period of economic growth for quite some time and as a consequence, Asian equity and bond markets have benefited from the structural stabilization in the region with sustained growth across a number of local markets," Credit Suisse said in a press release.

"As the Asian bond market has developed, factors such as liquidity, credit quality, transparency and diversification have significantly improved, setting the framework for Credit Suisse's view that Asian bond markets can be considered a distinct asset class," the bank added.

The fund, which is domiciled in Luxembourg, opened on 14 August and the subscription period runs until 1 September 2006. It is denominated in US dollars, Euros and Swiss Francs and a 1.5% management fee is charged.

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