Credit Suisse has filed with the SEC to launch the Gold and Income Strategy Fund, which will be available in institutional shares. An expense ratio for the fund was not listed.
The fund will follow a two-pronged strategy, investing in fixed-income and gold-linked derivative instruments.
The fund plans to gain exposure to gold by investing primarily in Credit Suisse Cayman Gold and Income Strategy Fund, Ltd., a wholly owned subsidiary of the fund. This fund invests primarily in gold-linked derivative instruments, including gold-linked swap agreements, options, futures and options on futures. The gold-linked derivatives instruments will be linked to the spot price of gold or to the price of gold futures of different settlement dates based on Credit Suisses analysis of trends in gold prices.
The fixed income instruments in which the fund may invest include, but are not limited to, U.S. government securities, U.S. government agency securities, debt issued by supranational entities, corporate bonds, debentures and notes, mortgage-backed and other asset-backed securities, bank certificates of deposit, fixed time deposits, bankers acceptances, commercial paper and other short-term fixed income securities.