Shareholders of the Credit Suisse High Yield Credit Fund are about to see their share count shrink dramatically, even though the money in their accounts won’t change one bit. The fund’s Board of Trustees has approved a 1-for-10 reverse share split, a move set to take effect before markets open on the NYSE American on September 30, 2026, according to a company announcement.
Summary
Key takeaways
- The Board approved a 1-for-10 reverse share split of the fund’s common shares.
- The split takes effect before trading opens on NYSE American on September 30, 2026, for shareholders of record as of the close of business on September 29, 2026.
- Shares keep trading under the ticker DHY but will carry a new CUSIP number, 22544F202, replacing 22544F103.
- The fund’s name officially changes to UBS Asset Management High Yield Credit Fund on September 4, 2026.
- No fractional shares will be issued; leftover fractions will be sold and the cash distributed pro rata to affected shareholders.
Credit Suisse High Yield Credit Fund Approves 1-for-10 Reverse Share Split
The fund’s trustees signed off on the consolidation as part of a broader restructuring already underway at the entity, which is transitioning fully under the UBS umbrella following its earlier absorption of Credit Suisse. Under the terms of the plan, every ten shares currently outstanding will be folded into a single share once the transaction closes.
Details and Timing of the Split
The mechanics are straightforward but carry a strict calendar. Shareholders on record at the close of business on September 29, 2026, are the ones whose holdings will be converted. Trading on a split-adjusted basis is expected to begin right at the opening bell on NYSE American the following day, September 30, 2026. That short window between the record date and the effective date is typical for corporate actions of this kind, giving the transfer agent time to process the consolidation before the market reopens.
Fund Name Change
Separately, but on a related timeline, the fund is dropping the Credit Suisse name altogether. As previously disclosed, the entity will be rebranded as UBS Asset Management High Yield Credit Fund effective September 4, 2026 — weeks ahead of the reverse split itself. The rebrand reflects the ongoing integration of Credit Suisse’s legacy fund lineup into UBS’s asset management structure, a process that has been unfolding gradually since UBS absorbed its former rival.
Impact and Mechanics of the Reverse Share Split
A reverse share split changes how many shares exist and what each one is worth on paper, but it does not touch what investors actually own underneath. For the Credit Suisse High Yield Credit Fund, the total value of any shareholder’s investment stays the same immediately after the transaction, and the fund’s underlying portfolio holdings remain untouched.
Effect on Shares and Investment Value
Here’s why this matters for anyone holding the fund: after the split, each shareholder will own proportionally fewer shares, but each of those shares will carry a correspondingly higher net asset value. Every shareholder retains the exact same percentage stake in the fund they held before the transaction. In plain terms, if an investor held 1,000 shares worth $5 each before the split, they would hold 100 shares worth roughly $50 each afterward — the total dollar value is unchanged, only the arithmetic behind it shifts.
Handling of Fractional Shares
Because ten shares become one, some shareholders will inevitably end up with a fraction of a share left over. The fund won’t issue those fractions directly. Instead, all fractional shares the fund’s transfer agent will aggregate and sell them on the NYSE American, and the resulting proceeds will be distributed pro rata to the shareholders who would have otherwise received them. Those payments will be net of customary fees and expenses tied to the sale. Computershare Trust Company, N.A., which serves as the fund’s transfer agent, is expected to send shareholders further details on how the fractional-share cash-out will work.
Trading and Regulatory Details
The fund’s ticker symbol isn’t changing, but its identification number behind the scenes is. That distinction matters for brokers, custodians, and anyone tracking the security through automated systems.
Post-Split Trading and Identification
Shares will keep trading on NYSE American under the existing symbol DHY, so retail investors monitoring their brokerage accounts shouldn’t notice any disruption in how the fund is quoted. Behind the scenes, though, the CUSIP number is being swapped from 22544F103 to 22544F202, a technical change that reflects the new share structure created by the split.
Investment Adviser and Forward-Looking Statements
The fund’s investment adviser, UBS Asset Management (Americas) LLC, is part of the Asset Management arm of UBS Group AG, the Zurich-headquartered global financial services firm. Both the Board and the Adviser have said they expect the higher post-split share price to widen the pool of potential investors interested in the fund, which in turn could improve trading liquidity and marketability on the secondary market. That reasoning is common among closed-end funds pursuing reverse splits, though the fund’s own announcement frames the liquidity benefit as a possibility rather than a guarantee.
The company’s statement also included the standard forward-looking language required under securities law, cautioning that any projections about improved liquidity or investor interest involve assumptions, risks, and uncertainties that could cause actual outcomes to differ from what’s expected. The fund and its adviser noted they are not obligated to update those forward-looking statements beyond what the law requires.
Risks Associated with the Reverse Share Split and Fund Investment
Why does a reverse share split carry risk at all if it doesn’t change the money you have invested? Because the structural fix doesn’t guarantee a market response. Closed-end funds like this one frequently trade at a discount to their net asset value, and that dynamic can persist regardless of how many shares are outstanding.
Market and Investment Risks
The fund is also subject to ordinary stock market risk — the possibility that share prices broadly decline over short or long stretches, which would affect the value of an investment in the fund independent of the split mechanics. As the company’s own materials note, there’s no assurance the fund will achieve its investment objective, and past performance offers no guarantee of what comes next.
Risks Related to Forward-Looking Statements
Investors should also treat any commentary about improved liquidity or broader investor interest as an expectation, not a promise. These are the kinds of statements covered by federal securities law provisions governing forward-looking disclosures, and actual results could diverge from what the Board and Adviser currently anticipate, depending on market conditions when the split actually takes effect.
FAQ
What is a reverse share split and what is its purpose in this context?
The reverse share split converts every ten shares into one share, reducing the share count and increasing the market price per share, which the fund’s Board and Adviser believe may potentially improve liquidity and marketability.
Will the total investment value of shareholders change after the reverse share split?
No. The total value of shareholders’ investments remains the same, since the split only adjusts the number and price of shares proportionally without touching the fund’s underlying holdings.
How will fractional shares be handled after the reverse share split?
Fractional shares won’t be issued directly. Instead, they’ll be aggregated and sold by the fund’s transfer agent, Computershare Trust Company, N.A., with proceeds distributed pro rata to the shareholders entitled to them.
When will the fund change its name and what will be the new name?
The fund is set to change its name to UBS Asset Management High Yield Credit Fund, effective September 4, 2026 — ahead of the reverse split, which takes effect on September 30, 2026.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
