Credit Suisse fund holds back some client cash

The fund lost about 32% last year, in line with the decline in the Renaissance Institutional Diversified Alpha Fund International fund that it invests into, the people said.

ZURICH: Credit Suisse Group AG is temporarily barring clients from withdrawing all their cash from a fund that invests with Renaissance Technologies after the strategy tanked and investors rushed to exit.

The bank has invoked a so-called hold back clause, after assets in the CS Renaissance Alternative Access Fund slumped to about US$250mil (RM1.03bil) this month from about US$700mil (RM2.89bil) at the start of 2020, according to people with knowledge of the matter. While investors will receive 95% of their redemption requests after two months, the remaining 5% is expected to be paid out in January, after the fund’s year-end audit, the people said.