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3 Credit Suisse Mutual Funds to Build a Solid Portfolio

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Headquartered in Zurich, Switzerland, Credit Suisse Group AG is a global investment bank and financial services firm. In 1856, it was founded to fund the development of the Swiss railway system. Globally renowned for its bank-client confidentiality, Credit Suisse offers asset management, amongst various other services. As of Mar 31, 2023, it had $435 billion in assets under management.

Credit Suisse has played a substantial role in the economic development of Switzerland and has helped the country develop its currency system and electrical grid. Even in the subprime crisis of the late 2000s, Credit Suisse fared better than most of its counterparts and did not have to borrow from the government. However, an early 2023 share price collapse paved the way for UBS Group AG, another Zurich-based bank, to acquire Credit Suisse in a $3.25 billion all-stock deal.

The company currently has 1212 employees across 150 offices in 50 locations globally. The group reported a third-quarter loss of $4.1 billion, widely missing estimates. However, the embattled Swiss bank also unveiled its post-acquisition strategy. Following a strategic review conducted by the board of directors and executive board, a radical restructuring of the Investment Bank, an accelerated cost transformation, and a plan to strengthen and reallocate capital have been designed to create a new Credit Suisse.

Significantly, Credit Suisse intends to reallocate capital to its core, high-return businesses. The share of revenues in Wealth Management, the Swiss Bank and Asset Management, together with Markets, is estimated to increase to almost 85% by 2025.

Notwithstanding its recent plight, a stellar, solid reputation of almost 170 years, proven performance even in market downturns like the 2008 crisis and a comprehensive plan for the future suggest that one may consider Credit Suisse mutual funds in these volatile markets. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000, as well as carry a low expense ratio.

Credit Suisse Floating Rate High Income (CHIAX - Free Report) invests primarily in high-yield, fixed-income securities, also known as junk bonds. These bonds usually consist entirely of senior secured floating rate loans issued by non-investment grade companies.

Wing Chan has been one of the lead managers of CHIAX since October 2005. The three top holdings for CHIAX are 1% in Hub International, 1% in Hyland Software and 1% in Proampac PG Borrower.

CHIAX’s 3-year and 5-year annualized returns are 5.6% and 3.5%, respectively, and its net expense ratio is 0.71% compared to the category average of 1.03%. CHIAX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

Credit Suisse Commodity Return Strategy (CRSCX - Free Report) seeks to achieve a positive total return compared to the performance of the Bloomberg Commodity Index Total Return by investing in a combination of commodity linked-derivative instruments and fixed-income securities. The fixed-income securities it invests in usually have an average duration of one year or less.

Scott Ikuss has been one of the lead managers of CRSCX since January 2023. The three top holdings for CRSCX are 4.5% in BNP Paribas, 4.3% in Royal Bank of Canada and 3.9% in Bank of Montreal.

CRSCX’s 3-year and 5-year annualized returns are 14.2% and 5.7%, respectively, and its net expense ratio is 1.05% compared to the category average of 1.11%. CRSCX has a Zacks Mutual Fund Rank #2.

Credit Suisse Managed Futures Strategy (CSAAX - Free Report) seeks varied exposure to significant price trends across asset classes, geographies and time zones. CSAAX is actively managed by Credit Suisse based on its view of the prevailing trends in the market.

Yung-Shin Kung has been one of the lead managers of CSAAX since November 2015. The three top holdings for CSAAX are 56.6% in U.S. Treasury Bills, 29.5% in Short-Term Investments and 14% in Others.

CSAAX’s 3-year and 5-year annualized returns are 9.7% and 4.8%, respectively, and its net expense ratio is 1.34% compared to the category average of 1.68%. CSAAX has a Zacks Mutual Fund Rank #12.

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