Credit Suisse Global Sustainable Dividend Equity Fund
Fund Profile
Summary
The Fund seeks to exceed the benchmark over the full
market cycle with less risk than the broader equity market.
In a global market environment where yield is difficult to find, blue
chip equities with growing, sustainable dividends offer the potential for higher than benchmark current yield and long-term growth
of income.
Blue Chip, Sustainable, Global Dividend Yield
Blue Chip: Focuses on high-quality companies with wide
defensive moats and ample cash flows.
Sustainable Dividends: Targets capital disciplined companies
with a strong track record of returning cash to shareholders.
Attractive Valuations: Seeks capital appreciation by investing
in companies trading at a discount to intrinsic value.
Better Than Equity Market Yield: Estimated current dividend
yield of 3.3%1 vs. 1.9% for the S&P 500.
Global Diversification: Well-diversified across sectors and
countries and balanced between cyclical and defensive
companies.
Increasing CFROI &
High Reinvestment
Investment Opportunity
High quality, sustainable dividend companies have historically
offered investors strong risk-adjusted returns. The combination of
above market dividend yield and capital appreciation is attractive
to both investors seeking current income and those focused on
total return objectives.
Investment Objective
The objective of the Credit Suisse Global Sustainable Dividend
Equity Fund is to offer current income and income growth, as well
as capital appreciation with less risk than the broader equity market. In particular, the Fund seeks high-quality, blue chip companies with wide, defensive moats and sustainable cash flows,
trading at a discount to their intrinsic value. The Fund seeks to
deliver outperformance over a full market cycle through an asymmetric upside/downside capture.
Above Average but
fading CFROI &
Growth
Average CFROI
and low Growth
Below Average
CFROI and
Negative Growth
Global Sustainable Dividend focuses on
cash flow rich companies with excess
capital to return to shareholders
CFROI2
Growth3
Discount Rate
Sustainable Dividend
Alpha Component 1
Alpha Component 2
Alpha Component 3
Alpha Component 4
Quality/
Blue Chip
Sustainable
Cash Flows
Growth
Valuation
1. Dividend yield as of December 31, 2014. Source: Bloomberg, HOLT.
2. Cash Flow Return on Investment.
3. Real Asset Growth.
Credit Suisse Asset Management
Investment Philosophy
Portfolio Managers
The Fund seeks current income, income growth and capital
appreciation, and is managed by an experienced portfolio management team with an average of 10 years experience, and
access to the resources of the Credit Suisse HOLT team.
Michael Valentinas, CPA, Director
Lead Portfolio Manager
Mike is a lead portfolio manager for the Global Sustainable
Dividend Equity Fund. He joined HOLT Value Associates in 2001
after spending three years as a tax and compensation consultant
for Arthur Andersen. He is a CPA and graduate of DePaul
University in Chicago, Illinois. Mike has been based in Boston,
New York and Chicago, where he currently resides.
ƁƁ High quality, blue chip companies with sustainable
competitive advantages
These companies generally have high and increasing economic returns on capital and low volatility of economic returns
over multi-year periods.
ƁƁ Cash rich companies with excess cash capital to return
to shareholders
These companies often exhibit high to moderate economic
returns, high to moderate free cash flows and high to moderate fixed charge coverage levels.
ƁƁ Companies with moderate sustainable growth levels
These companies have available cash flows for reinvestment
consistent with both the level of a particular year’s economic
returns and a continuation of existing capital structure and
existing dividend payout policy. Companies with moderate
sustainable growth levels often grow at greater than GDP
levels, have moderate to high dividend growth and low to
moderate dividend payout ratios.
ƁƁ Companies with attractive valuations
These companies have potential capital appreciation at or
better than peer median levels, low valuation multiples relative
to peers and dividend yields above market but not at distressed levels.
Adam Steffanus, CFA, Director
Lead Portfolio Manager
Adam is a lead portfolio manager for the Global Sustainable
Dividend Equity Fund. Adam joined Credit Suisse HOLT in 2005
after receiving his MBA from The University of Chicago Booth
School of Business. Prior to business school, Adam worked in
private equity, structuring leveraged buy-out transactions. Adam
is a CFA charterholder and an active member of the CFA Institute
and the CFA Society of Chicago. Adam is based in Chicago,
where he currently resides.
Investment Research
Heather Kidde, CFA, Vice President
Senior Research Analyst
Heather focuses on fundamental company analysis in her role as
the Senior Research Analyst for the Global Sustainable Dividend
Equity Fund. Heather joined Credit Suisse HOLT in 2010 after
spending 3 years in the Private Banking division. Heather is a
CFA charterholder and an active member of the CFA Institute
and the New York Society of Security Analysts (NYSSA). She is
a graduate of Colgate University and is based in New York.
Investment Process
The Global Sustainable Dividend Fund leverages the HOLT database as its primary data source. HOLT is an independent
research division of Credit Suisse which converts noisy accounting data into a standardized set of economic cash flows as a
function of a company’s asset base. HOLT makes adjustments
for varied accounting rules across geographies, rates of inflation,
and company risk profiles to provide a more uniform platform for
stock evaluation, and provides an objective and consistent valuation methodology for over 20,000 companies in 64 countries.
The portfolio management team then uses bottom-up, fundamental analysis to identify companies with a track record of cash
flow generation and the ability to sustain payment of dividends.
The portfolio will generally consist of 30–35 positions, although
the number can vary based on market conditions. Positions are
reviewed weekly and portfolio holdings are generally rebalanced
quarterly.
Credit Suisse Asset Management
Fund Terms
Launch Date
February 27, 2015
Liquidity
Daily
Benchmark
MSCI All Country World Index
Initial Minimum Investment
Class A: $2,500
Class C: $2,500
Class I: $250,000
Tickers
Class A: CGDAX
Class C: CGDCX
Class I: CGDIX
Maximum Sales Charge
Class A: 5.25%
Class C: 1.00%
Class I: None
Redemption Fee
None
Risks:
All investments involve some level of risk. Simply defined, risk is the possibility that you will lose money or not make money.
Principal risk factors for the fund are discussed below. Before you invest, please make sure you understand the risks that apply to
the fund. As with any mutual fund, you could lose money over any period of time. Investments in the fund are not bank deposits
and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Currency Risk: Currency risk is the risk that changes in currency exchange rates will negatively affect securities or instruments
denominated in, and/or payments received in, foreign currencies.
Derivatives Risk: The fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks such as
currency risk, liquidity risk, and market risk.
Equity Exposure Risk: The market values of equity securities, such as common stocks, may decline due to general market
conditions and are subject to greater fluctuations than certain other asset classes.
Foreign Securities Risk: A fund that invests outside the U.S. carries additional risks that include: Currency Risk, Emerging
Markets Risk, Information Risk, Political Risk, Access Risk and Operational Risk.
Futures Contracts Risk: Changes in the price of a futures contract may not always track the changes in market value of the
underlying reference asset, trading restrictions or limitations may be imposed and the fund may need to sell other investments if
it has insufficient cash to meet margin requirements.
Liquidity Risk: Certain portfolio holdings may be difficult or impossible to sell at the time and the price that the fund would like.
Manager Risk: If the fund’s portfolio managers make poor investment decisions, it will negatively affect the fund’s performance.
Market Risk: The market value of an instrument may fluctuate, sometimes rapidly and unpredictably.
Small- and Mid- Cap Stock Risk: Stocks of small- and mid-cap companies may be more volatile than those of larger companies.
Swap Agreements Risk: Swap agreements involve the risk that the party with whom the fund has entered into the swap will
default on its obligation to pay the fund and the risk that the fund will not be able to meet its obligations to pay the other party
to the agreement.
This material has been prepared by Credit Suisse Asset Management, LLC (“Credit Suisse”) on the basis of publicly available information, internally
developed data and other third party sources believed to be reliable. Credit Suisse has not sought to independently verify information obtained from
public and third party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information. All opinions
and views constitute judgments as of the date of writing without regard to the date on which the reader may receive or access the information, and
are subject to change at any time without notice and with no obligation to update. This material is for informational and illustrative purposes only and is
intended solely for the information of those to whom it is distributed by Credit Suisse. No part of this material may be reproduced or retransmitted in any
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any investment purpose and it should not be used as a basis for investment decisions. This material does not purport to contain all of the information
that a prospective investor may wish to consider. This material is not to be relied upon as such or used in substitution for the exercise of independent
judgment. Past performance does not guarantee or indicate future results.
This material should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or investment products
or to adopt any investment strategy. The securities identified and described do not represent all of the securities purchased, sold or recommended for
client accounts. The reader should not assume that any investments in companies, securities, sectors, strategies and/or markets identified or described
herein were or will be profitable and no representation is made that any investor will or is likely to achieve results comparable to those shown or will make
any profit or will be able to avoid incurring substantial losses. This informational report does not constitute research and may not be used or relied upon
in connection with any offer or sale of a security or hedge fund or fund of hedge funds. Performance differences for certain investors may occur due to
various factors, including timing of investment and eligibility to participate in new issues. Investment return will fluctuate and may be volatile, especially
over short time horizons. Each investor’s portfolio may be individually managed and may vary from the information shown in terms of portfolio holdings,
characteristics and performance. Current and future portfolio compositions may be significantly different from the information shown herein. Investing
entails risks, including possible loss of some or all of the investor’s principal. The investment views and market opinions/analyses expressed herein may
not reflect those of Credit Suisse Group as a whole and different views may be expressed based on different investment styles, objectives, views or
philosophies. To the extent that these materials contain statements about the future, such statements are forward looking and subject to a number of
risks and uncertainties.
Alternative investments (e.g., Hedge Funds or Private Equity) are complex instruments and may carry a very high degree of risk. Such risks can arise
from extensive use of short sales, derivatives and debt capital. Furthermore, the minimum investment periods can be long. Alternative investments are
intended only for investors who understand and accept the associated risks.
Estimated fees and expenses are taken from the prospectus dated 02/28/15. Credit Suisse Opportunity Funds (the “Trust”) and Credit Suisse Asset
Management, LLC (“Credit Suisse”) have entered into a written contract limiting operating expenses (excluding certain expenses as described below)
to 0.95% of the fund’s average daily net assets for Class A shares, 1.70% of the fund’s average daily net assets for Class C shares and 0.70% of the
fund’s average daily net assets for Class I shares at least through February 28, 2016. The Trust is authorized to reimburse Credit Suisse for management
fees previously limited and/or for expenses previously paid by Credit Suisse, provided, however, that any reimbursements must be paid at a date not more
than three years after the end of the fiscal year during which such fees were limited or expenses were paid by Credit Suisse and the reimbursements
do not cause a class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses were paid. This contract
may not be terminated before February 28, 2016.
The current maximum initial sales charge for Class A shares is 5.25%. The initial sales charge is reduced for larger purchases. Purchases over
$1,000,000 or more are not subject to an initial sales charge but may be subject to a 1.00% CDSC on redemptions made within 12 months of purchase.
The current maximum CDSC for Class C shares is 1.00% during the first year.
Fund shares are not deposits or other obligations of Credit Suisse Asset Management, LLC or any affiliate, are not insured by the
Federal Deposit Insurance Corporation and are not guaranteed by Credit Suisse Asset Management, LLC or any affiliate. Fund
investments are subject to investment risks, including loss of your investment.
The fund’s investment objectives, risks, charges and expenses (which should be considered carefully before invest­
ing), and more complete information about the fund, are provided in the Prospectus, which should be read carefully
before investing. You may obtain copies by calling 800-577-2321. For up-to-date performance, please visit our web­
site at www.credit-suisse.com/us/funds.
CREDIT SUISSE SECURITIES (USA), LLC, DISTRIBUTOR
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