Credit Suisse Asset Management to launch ETFs alongside existing index funds
Credit Suisse Asset Management, with CHF132 billion under management, is launching ETFs to run alongside its existing range of index funds. The firm writes that the new ETFs will be rolled out in areas where they exhibit efficiency advantages over index funds.
The first three ETFs will be listed on the SIX Swiss Exchange, the Borsa Italiana and the Deutsche Börse.
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, the firm says. 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 analyse 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, says: “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.”
In the first stage of the new implementation, three existing index funds will be converted into new ultra-efficient ETFs, the firm writes. They will be established under Irish law and will include: CSIF (IE) MSCI USA Blue UCITS ETF; CSIF (IE) MSCI USA ESG Leaders Blue UCITS ETF and CSIF (IE) MSCI World ESG Leaders Blue UCITS ETF.
Brown Brothers Harriman has been appointed to act as the fund administrator and custodian bank.