(Bloomberg) -- Credit Suisse Group AG suspended redemptions from and subscriptions to a group of supply chain finance funds that invests in products sourced by financier Lex Greensill, citing “considerable uncertainties” over the valuation of some of the funds' assets.
The suspension is effective March 1, the Swiss bank said in a statement. Credit Suisse is looking at ways to reduce ties to Greensill Capital amid concerns about the size of its exposure to firms linked to U.K. industrialist Sanjeev Gupta, people familiar with the matter said earlier Monday.
“It is the fiduciary responsibility of Credit Suisse Asset Management to act in the best interest of investors in its funds,” the bank said. Part of the fund' assets “is currently subject to considerable uncertainties with respect to their accurate valuation.”
The funds were at the center of a review last year that led to an overhaul of the funds, including changes to how much exposure they can have to a single borrower. Greensill, which effectively pick the assets in these funds, has come under pressure including from regulators in Germany over its banking arm exposure to Gupta.
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