Credit Suisse lowers distribution for real estate funds
Credit Suisse expects the net asset value of its real estate fund CS REF International to fall by around 10 percent. The distribution is therefore to be reduced from 40 francs in the previous year to 35 to 38 francs for 2022.
Credit Suisse Funds AG expects a reduction in the net asset value of its Credit Suisse Real Estate Fund International (CS REF International). The background to this is developments in the global target markets on which the real estate fund is based, Credit Suisse informs in a statement. Here, rising interest rates in the key markets of the US, UK and Germany have impacted valuations.
In concrete terms, the fund’s net asset value will fall to between CHF 960 and CHF 970 as of the reporting date at the end of 2022. As at year-end 2021, a net asset value of 1070.72 was recorded. By year-end 2022, Credit Suisse Funds AG has accepted redemption requests amounting to 13.3 percent of the units issued.
As a result of the expected reduction in the net asset value of 9.5 to 10.5 percent, the major Zurich bank is adjusting the distribution on CS REF International. For 2022, the distribution is to be 35 to 38 francs per unit. In the previous year, 40 francs per unit were distributed.