Credit Suisse Trust Commodity Return Strategy Portfolio (CCRSX)

Overview

The fund is distinctly tailored to pursue a positive total return in comparison to the Bloomberg Commodity Index Total Return (BCOM Index). It strategically aims to allocate its resources across a selective mix of commodity-linked derivative instruments and fixed income securities. This approach is meticulously designed to leverage the dynamics of the commodities markets, incorporating a sophisticated investment scheme through its Subsidiary and in structured notes. These notes are intricately linked to the BCOM Index, among other commodity indices, or tethered to the specific value of a designated commodity or commodity futures contract—or even a particular subset of commodities or commodity futures contracts. Markedly, the fund adopts a non-diversified stance, concentrating its efforts and resources in a focused manner to achieve its investment objectives.

Products and Services

The fund’s investment strategy is specifically structured around two principal components, aiming to optimize the returns for investors by extensively engaging in the commodities market. Each element within this framework serves a pivotal role in navigating the complexities and opportunities that commodities investments present.

• Commodity-Linked Derivative Instruments:

  This product category encompasses a range of financial instruments that derive their value from commodity prices. The fund cleverly utilizes these derivatives as a primary vehicle to gain exposure to the commodities market. This method allows for the strategic positioning within various commodity sectors, enabling the fund to capitalize on price movements without physically holding the commodities. It encompasses futures, options, and swap contracts that are correlated with the performance of the BCOM Index or other specific commodities. This form of investment offers the potential for high returns while simultaneously presenting a unique set of risks associated with derivative trading.

• Fixed Income Securities:

  In balancing its investment portfolio, the fund incorporates fixed income securities. These assets provide a steady income stream and are typically considered to be less volatile than commodity-linked derivatives. The choice of fixed income securities serves as a counterbalance to the inherent risks of commodity investments, adding a layer of diversification and stability. By carefully selecting bonds and other fixed income products, the fund aims to establish a foundational level of security for its investment capital, reducing overall portfolio volatility and enhancing the prospect of achieving a positive total return.

• Investment through the Subsidiary:

  The fund expands its reach into the commodities market by making strategic investments through its Subsidiary. This approach enables a broader scope of investment in commodity-linked assets beyond what might be directly permissible in the fund's primary jurisdiction. The Subsidiary's operations amplify the fund's capacity to engage with a wide array of commodity investments, effectively broadening the horizon of potential growth opportunities. This maneuver is instrumental in pursuing a diversified investment approach within the commodities domain.

• Structured Notes Linked to the BCOM Index:

  Structured notes are sophisticated financial instruments that offer tailored returns based on the performance of the BCOM Index and other commodity indices. By investing in these notes, the fund secures a mechanism to participate in the commodities market’s dynamics indirectly. These instruments can be designed to protect capital, provide enhanced returns, or offer a fixed income, depending on their structure and the underlying index's performance. This method of investment allows for a precise targeting of returns, aligning with the fund's goal of achieving a positive total return relative to the commodities market.