CS Fund International depreciates by almost 12 percent in H1
Including currency losses and devaluations, the shortfall in the fund, which is to be dissolved, amounted to over CHF 300 million in the first half of the year.
Credit Suisse Real Estate Fund International, which is in liquidation, reported net income of CHF -38.0 million in the first half of the year (H1 2023: CHF +107.0 million): +The result was depressed primarily by realized currency losses of CHF 73.5 million (H1 2023: CHF +55.6 million). Total comprehensive income even fell to CHF -303.0 million, after a loss half as high in the same period of the previous year. A devaluation of the portfolio by 11.8% contributed to this. The value of the properties fell from CHF 2.5 billion to CHF 2.0 billion within six months. At the end of 2022, the portfolio was still worth CHF 3.7 billion.
The fund's imbalance can be explained by the redemption of 36% of units in 2022 and 2023. While the units redeemed at the end of the 2022 financial year could be repaid in April 2024, the additional outflows caused difficulties for the fund. "The sale of properties during the last 18
months to finance these redemptions revealed the limited liquidity of the real estate markets," writes the fund management of UBS Asset Management. The fund would have been forced to sell the most easily marketable properties at an unfavorable time and accept losses in the process. "This would have a negative impact on the remaining investors and would reduce the attractiveness of the reduced portfolio," writes UBS. This was the reason for the decision to dissolve the fund.
The fund was the first real estate fund under Swiss law to invest directly in properties abroad. (aw)
