Fund mergers - Credit Suisse (LUX) Portfolio Growth and Credit Suisse (LUX) Portfolio Balanced Funds
Credit Suisse Fund Management S.A. (“Credit Suisse") will be merging its Credit Suisse (Lux) Portfolio Growth and Credit Suisse (Lux) Portfolio Balanced funds into similar multi asset portfolio funds within the UBS Fund Management (Luxembourg) S.A. ("UBS") fund range in May 2024.
AVAILABLE IN OUR DEFINED FUND RANGES
The Credit Suisse Merging Funds and selected UBS Receiving Funds
We feature the following Credit Suisse Merging Funds in our regular savings and protection defined fund ranges for the products listed opposite.
| Merging Funds | ISIN | Receiving Funds | ISIN |
|---|---|---|---|
| Credit Suisse (Lux) Portfolio Growth B Acc EUR | LU0091101195 | UBS (Lux) Strategy Fund – Growth Sustainable P Acc EUR | LU0033036590 |
| Credit Suisse (Lux) Portfolio Growth B Acc CHF | LU0078041992 | UBS (Lux) Strategy Fund – Growth Sustainable P Acc CHF | LU0033034892 |
| Credit Suisse (Lux) Portfolio Growth B Acc USD | LU0078042453 | UBS (Lux) Strategy Fund – Growth Sustainable P Acc USD | LU0033040865 |
| Credit Suisse (Lux) Portfolio Balanced B Acc EUR | LU0091100973 | UBS (Lux) Strategy Fund – Balanced Sustainable P Acc EUR | LU0049785446 |
| Credit Suisse (Lux) Portfolio Balanced B Acc CHF | LU0078040838 | UBS (Lux) Strategy Fund – Balanced Sustainable P Acc CHF | LU0049785289 |
| Credit Suisse (Lux) Portfolio Balanced B Acc USD | LU0078041133 | UBS (Lux) Strategy Fund – Balanced Sustainable P Acc USD | LU0049785792 |
Summary of Credit Suisse’s rationale for the mergers
The Credit Suisse Merging Funds and selected corresponding UBS Receiving Funds are actively managed multi asset funds that share similar objectives and risk profiles, in terms of providing investors with either balanced or growth orientated portfolios which are globally diversified.
The aim of merging the funds is to manage the funds more efficiently in the interests of investors through the takeover of Credit Suisse Group AG by UBS Group AG and as part of the integration of Credit Suisse into UBS. Additionally, the merger of the Merging Funds into the Receiving Funds will result in an overall increase of assets under management.
The action RL360 will be taking in relation to the mergers
Although we do not currently feature the UBS Receiving Funds in our fund range, we have decided to accept the mergers. The UBS Receiving Funds will be added into our fund range in order to transfer plan owner holdings, and redirect any regular premium allocation if applicable, from the Credit Suisse Merging Funds into the corresponding UBS Receiving Funds.
Effective Dates between now and the Credit Suisse merger dates
With immediate effect, we will no longer accept premiums or switches into the Merging Funds from new investors.
Credit Suisse has decided to complete the mergers on different dates (the “Effective Merger Dates”). The Portfolio Growth EUR, CHF and USD funds and the Portfolio Balanced EUR fund mergers will complete on 21 May 2024. The Portfolio Balanced CHF and USD fund mergers will complete on 31 May 2024. However, in the lead up to the mergers Credit Suisse will close the Merging Funds to subscriptions and redemptions for a period of between 9 and 13 days respectively (the “Suspension Periods”) ahead of the Effective Merger Dates in order for it to implement the procedures needed to conduct the mergers in an orderly and timely manner. During these Suspension Periods, RL360 will be unable to process any switches in or out of the Merging Funds or invest any regular premiums we receive from plan owners into the Merging Funds.
Therefore, we have taken the decision to transfer holdings and redirect regular premiums for all plan owners into the Receiving Funds ahead of the Effective Merger Dates and just before the stipulated dealing cut-off at Credit Suisse to avoid being impacted by the Suspension Periods.
The RL360 relevant Effective Dates are:
| Merging Funds | RL360 Dealing Cut-Off Date - This is the last date to submit switch instructions to RL360 if plan owners and/or advisers do not want holdings, and any premium allocation, to be automatically transferred into the UBS Receiving Funds | RL360 Switch Effective Date - This is the date that holdings will be moved, and any premium allocation redirected, into the UBS Receiving Funds if no instructions are received |
|---|---|---|
Credit Suisse (Lux) Portfolio Growth B EUR Credit Suisse (Lux) Portfolio Growth B CHF Credit Suisse (Lux) Portfolio Growth B USD Credit Suisse (Lux) Portfolio Balanced B EUR | By 3pm (UK time) on 6 May 2024 | 8 May 2024 |
Credit Suisse (Lux) Portfolio Balanced B CHF Credit Suisse (Lux) Portfolio Balanced B USD | By 3pm (UK time) on 20 May 2024 | 22 May 2024 |
If plan owners and advisers are happy with the choice of UBS Receiving Fund(s) then they do not need to do anything. However, they can switch free of charge into any other fund available in the defined fund range.
Impacted plan owners, or their appointed investment advisers, and servicing agents have been contacted either by e-mailshot, or by letter is no valid email address is available. More detailed information regarding the mergers can be found in the sample letters opposite.
For more information on UBS Funds visit https://www.ubs.com/global/en/assetmanagement.html