Simplified Prospectus • October 2008
Credit Suisse Bond Fund (CH) Dynamic International Simplified Prospectus
October 2008 Distribution in Switzerland and Liechtenstein
Performance of the Subfund (in %) (change in the net asset value where distributions are reinvested)
30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Subfund of the Umbrella Fund under Swiss Law of the “Other Funds for Traditional Investments” Type
Information This simplified prospectus contains the key information about the Credit Suisse Bond Fund (CH) Dynamic International (the “Subfund”). The definitive regulations on the legal and economic aspects are laid down in the full prospectus with integrated fund contract. These govern, among other things, the rights of the investors, the duties and obligations of the fund management company and the custodian bank, as well as the investment policy of the Subfund. Investors are advised to consult the full prospectus with integrated fund contract. The annual and semi-annual reports provide information on the assets and income statement. These documents may be obtained free of charge from the fund management company, the custodian bank and all distributors.
Credit Suisse Bond Fund (CH) Dynamic International
Average Return Credit Suisse Bond Fund (CH) Dynamic International 3 years 2.2% 5 years 7.9% 10 years -
Source: Lipper, a Reuters Company. The chart shows the development of the Subfund’s value in its reference currency. Historical performance is not a guarantee of future returns.
Profile of the Typical Investor The subfund is suitable for investors with a longer-term horizon who are primarily seeking a steady income. Investors must be willing to accept temporary fluctuations in the net asset value of Fund units and not be reliant on realizing their investment at a specific date. Distribution Policy For each unit class, the net income of the subfunds will be distributed to the investors annually within four months of the end of the financial year in the corresponding currency of account. Up to 30% of the net income of each unit class of the subfund may be carried forward to the new account. Unit Classes There are at present three classes of units: A, D and I. Class A units are distribution units. There are no provisions concerning a minimum investment or minimum holding. Class A units are issued and redeemed in the Fund’s accounting currency. Class D units are distribution units and may only be held by investors who have signed an asset management, cooperation or other similar written agreement with the fund management company or with Credit Suisse, Zurich. They differ from the other unit classes with regard to cost structure in terms of the maximum rates for management fees set out in § 20 prov. 1 (Fees and Incidental Costs Charged to the Subfunds’ Assets). Investors for whom there is no longer any contractual basis for holding units of class D may be required by the fund management company to redeem their units or to have them exchanged for units of another class for which the investor is eligible. The corresponding entries must be made in a safekeeping account at the custodian bank. Class I units are distribution units. With regard to cost structure, they differ from class A units in terms of the maximum rates set out in § 20 prov. 1 (Fees and Incidental Costs Charged to the Fund’s Assets). The minimum initial investment for class I units and the minimum number of Class I units that must be held by the investor at any given time (minimum holding) are stated in the table below. If the value of the units held falls below this minimum holding figure, the fund management company may take steps to switch the investment into units of another class for which the investor is eligible. Should unit holdings fall below the minimum figure for market or performance-related reasons, switching into another unit class is not mandatory; such a switch is, however, mandatory if the minimum holding figure is undershot due to a redemption. The corresponding entries must be made in a safekeeping account at the custodian bank. Minimum Investment / Minimum Holding
Unit class A Unit class D Unit class I Minimum investment – – USD 3,000,000 Minimum holding – – USD 600,000
Investment Information
Investment Objective The investment objective of the umbrella fund is principally to achieve an appropriate return in the accounting currency by investing in the instruments listed below for each subfund. Due account shall be taken of the principle of risk diversification, security of the capital invested and liquidity of the subfunds’ assets. Investment Strategy (Investment Policy) This subfund invests primarily in bonds, notes and other fixed- or variableinterest debt instruments and rights (including asset-backed securities and mortgage-backed securities) issued in any convertible currency by private, semi-private and public-law borrowers worldwide. Investments may be made worldwide, with no restrictions in terms of country, currency or sector. The fund management company may invest up to 45% of the subfund’s assets in securities or money market instruments of the same issuer, provided these are issued or guaranteed by a state or public law entity of the OECD or by international organizations with public law characteristics in which Switzerland or a European Union member state participate. The following are authorized issuers and/or guarantors: OECD countries, the European Union (EU), the Council of Europe, the International Bank for Reconstruction and Development (the World Bank), the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the Asian Development Bank and the African Development Bank. To ensure efficient management of the Fund’s assets, the fund management company may use standardized and non-standardized (customized) derivative financial instruments. It may conclude the transactions on an exchange, another regulated market open to the public or directly with a bank or financial institution acting as counterparty that is subject to oversight and specializes in this kind of transaction (OTC transaction). Risk Profile of the Subfund The value of the Subfund’s investments is governed by the market value of investments at any given time. Depending on the prevailing stock market and interest rate trend and the performance of the stocks held in the portfolio, the net asset value can fluctuate considerably. The Subfund’s income may increase or decrease in line with interest rate fluct uations and changes in the investments’ ratings. There is no guarantee that the investors will receive a certain yield and that they will be able to return their units to the fund management company for redemption at a certain price. When redeeming units, it is possible that an investor will not recoup the amount originally invested in the Subfund. For more detailed information, investors should refer to the full sales prospectus with integrated fund contract.
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Simplified Prospectus • October 2008
Economic Information
Commissions and Costs
Fees and incidental costs charged directly to investors on purchases and redemptions Maximum issuing Unit class A commission Unit class D Maximum redemption commission 30.9.2005 30.9.2006 30.9.2007
Information Relating to Trading
Publication of Prices Prices of all unit classes for all subfunds are published daily on the electronic Swiss Fund Data platform (www.swissfunddata.ch) and possibly also in other Swiss and international newspapers and electronic media. Modalities for Purchasing and Redeeming Units Subscription and redemption orders received by the custodian bank by 1 p.m. on a given bank working day (order day) will be settled on the next bank working day (valuation day) on the basis of the net asset value calculated on this day. The net asset value taken as the basis for the settlement of the order is therefore not known when the order is placed (forward pricing). It will be calculated based on closing prices on the valuation day.
5.0%
5.0%
5.0%
Unit class I Unit class A Unit class D Unit class I
2.0%
none 30.9.2005
2.0%
none 30.9.2006
2.0%
none 30.9.2007
Commission on conversions between unit classes Commissions and costs charged to the Fund’s assets on an ongoing basis Max. management Unit class A commission payable Unit class D to the management Unit class I company for the management, administration and sale of the subfunds Maximum custodian Unit class A bank fee Unit class D
1.4% 0.2% 0.7%
1.4% 0.2% 0.7%
1.4% 0.2% 0.7%
Brief Profile of the Fund
Launch date of the Fund October 16, 1970 under Swiss law October 1 – September 30 Financial year Security number Unit class A USD: Unit class A USD: unlimited Credit Suisse Group, Paradeplatz 8, 8001 Zurich Credit Suisse Asset Management Funds AG, Sihlcity – Kalandergasse 4, 8070 Zurich Credit Suisse, Paradeplatz 8, 8001 Zurich Credit Suisse, Paradeplatz 8, 8001 Zurich KPMG Klynveld Peat Marwick Goerdeler SA, Badenerstrasse 172, 8004 Zurich Swiss Federal Banking Commission, Bern In Switzerland: Credit Suisse, Sales Investment Funds, Postfach 800, 8070 Zurich In Liechtenstein: LGT Bank in Liechtenstein Aktiengesellschaft, Herrengasse 12, FL-9490 Vaduz 277 177 CH0002771779
0.15% 1.02% – – –
0.15% 1.02% – – 21.78%
0.15% 1.02% – – 12.1%
ISIN Term (of the Fund) Promoter Fund management company Asset manager Custodian bank Auditors Supervisory authority Contacts
Unit class I Total expense ratio Unit class A (TER) Unit class D (excluding securities Unit class I
transaction costs) Portfolio Turnover Rate (PTR)
Unit class A Unit class D Unit class I
Fee Splitting Agreements and Soft Commissions The fund management company has concluded no fee splitting agreements or agreements in respect of soft commissions. Tax Information (in Respect of the Fund) The umbrella fund and the subfunds have no legal personality in Switzerland. They are not subject to tax on income or capital. The Swiss federal withholding tax deducted from the subfunds’ domestic income can be reclaimed in full for the corresponding subfund by the fund management company. Income and capital gains realized outside Switzerland may be subject to the relevant withholding tax deductions imposed by the country of investment. Insofar as is possible, these taxes will be reclaimed by the fund management company on behalf of investors resident in Switzerland under the terms of double taxation treaties or other such agreements. Tax Information (for Investors Resident for Tax Purposes in Switzerland) Distributions of income made by the subfunds to investors domiciled in Switzerland are subject to Swiss federal withholding tax (source tax) at 35%. Any capital gains paid on a separate coupon are not subject to withholding tax. Investors domiciled in Switzerland may reclaim the deducted withholding tax via their tax returns or by submitting a separate refund application. Tax Information (for Investors Resident Outside Switzerland for Tax Purposes) Distributions of income to investors domiciled outside Switzerland are made free of Swiss withholding tax, provided at least 80% of the income of the corresponding subfund stems from foreign sources, and subject to presentation of confirmation from a bank stating that the units in question are held at the bank in the custody account of an investor domiciled outside Switzerland, and that the distributions of income are credited to this investor’s account (declaration of domicile / affidavit). No guarantee can be given that at least 80% of the Fund’s income will stem from foreign sources. If withholding tax is charged to an investor domiciled outside Switzerland owing to a failure to present a declaration of domicile, under Swiss law they may submit a refund application directly to the Swiss Federal Tax Administration in Berne. The income distributed and/or the interest realized on the sale or redemption of units is not subject in Switzerland to EU savings tax. Taxation and other tax implications for investors who hold, buy or sell fund units are defined by the tax laws and regulations in the investor’s country of domicile.
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