The major Swiss bank Credit Suisse has turned around and is once again launching Exchange Traded Funds.
• Credit Suisse launches three ETFs
• Returns seven years after the business was sold to BlackRock
• Irish law ETFs
A press release from the financial house said that Credit Suisse Asset Management is expanding its range of funds to include Exchange Traded Funds (ETFs) to complement the existing Credit Suisse Index Funds. The new ETFs would be launched in areas where they have efficiency advantages over index funds, the company said.
U-turn at the big bank
The company left the ETF segment about seven years ago and sold the corresponding division to the asset manager BlackRock. For Credit Suisse, there is obviously no contradiction in the fact that three new ETFs are to be launched: “We are constantly analyzing the market, new trends and customer needs in order to offer suitable solutions for our customers. With the increasing importance of digital sales platforms, ETFs will become more important in the future strategically even more important, “said Michel Degen, Head of Credit Suisse Asset Management Switzerland and EMEA.
The financial house referred in particular to the increased customer interest in exchange-traded index funds. Fintechs in particular, who have aligned their processes to stock exchange transactions, are to be better served with the newly launched products. The bank wants to become more interesting for robo advisors.
Irish law ETFs
The business will be significantly slimmed down compared to the activities sold to BlackRock at the time. First, three existing index funds are to be transferred to the new ETFs. These are imposed under Irish law, which is probably due to the fact that half of them are exempt from the 30 percent withholding tax on dividends. The ETFs are to be listed on SIX, the Italian Borsa Italiana and the Deutsche Börse and track the index development of the MSCI USA and the MSCI World.
Editorial office finanzen.ch
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