Credit Suisse has confirmed changes to the investment strategy of its Luxembourg-domiciled Global Equity fund.
As of 28 February, the fund’s investment processes will be based on the methodology provided by quantitative firm Systematic Investment Management AG (SIMAG), Credit Suisse announced to its shareholders.
The CS Investment Funds 4 – Credit Suisse (Lux) Global Equity Theme Fund is now called CS Investment Funds 4 – Credit Suisse (Lux) SIMAG Systematic Global Equity Fund.
SIMAG’s investment process applies a series of liquidity filters to the targeted investment universe, excluding securities below a set market capitalisation and trading volume target levels. It also excludes securities with insufficient or excessive price moves.
The SIMAG log-periodic power law singularity methodology subsequently identifies stocks with positive or negative feedback on the basis of their behaviour in relation to their market environment. Stocks are then ranked and weighted accordingly. A portion of the portfolio is intended to be allocated to investments in cash or cash equivalents.
SIMAG is the result of a joint venture between Credit Suisse and the Swiss Federal Institute of Technology (ETH Zurich) launched in January. It aims to provide proprietary quantitative investment solutions to institutional investors using the latest scientific research from the fields of physics, complex self-organizing systems, deep learning, and behavioural finance.
Credit Suisse investors who disagree with the changes to the fund are able to redeem their shares until 27th of February 2018.