Credit Suisse Asset Management caters to fintech demand with new ETFs

Source: Credit Suisse

Credit Suisse Asset Management is adding exchange-traded funds (ETFs) to its range of investment fund products.

The new ETFs supplement the existing Credit Suisse Index Funds. The introduction of ETFs by Credit Suisse meets the growing demand for liquid, exchange-tradable products that is being driven by digitalization. The first three ETFs will be listed on the SIX Swiss Exchange, the Borsa Italiana and the Deutsche Börse.

Credit Suisse Asset Management, a leading provider of index funds and indexed mandates in Europe, with CHF 132 billion of assets under management (as of December 31, 2019) in this investment business, is selectively adding exchange-traded funds (ETFs) to its existing range of index fund offerings. The new ETFs will be rolled out in areas where they exhibit efficiency advantages over index funds.

The introduction of select ETFs by Credit Suisse Asset Management as a supplement to index funds is aimed at better serving investors, like fintechs, that have geared their processes and systems to stock-market transactions. Michel Degen, Head of Credit Suisse Asset Management Switzerland and EMEA, views the targeted entry into the ETF business as a logical step: “We continually analyze the market, new trends and client needs to provide appropriate solutions for our customers. The strategic importance of ETFs will further increase in the future as digital sales platforms gain greater significance.”

Valerio Schmitz-Esser, Head of Credit Suisse Asset Management Index Solutions, said: “We have been replicating indices with exacting precision for a wide array of asset classes, regions and currencies since 1994, and have been doing the same for ESG sustainability indices for over two years now. Through our core business, index funds, we have the critical mass and possess the technology and expertise to provide ETFs in targeted investment segments that supplement our existing offerings.”

Three new ETFs
In the first stage, three existing index funds will be converted into new ultra-efficient ETFs. They will be established under Irish law and will be listed on the SIX Swiss Exchange, the Borsa Italiana and the Deutsche Börse. The ETFs will include:

CSIF (IE) MSCI USA Blue UCITS ETF
CSIF (IE) MSCI USA ESG Leaders Blue UCITS ETF
CSIF (IE) MSCI World ESG Leaders Blue UCITS ETF

Brown Brothers Harriman has been appointed to act as the fund administrator and custodian bank.

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