Liquid Alternatives: Credit Suisse Back In The ETF Game; Launches Three Funds including ESG
Credit Suisse sold its ETFs business to BlackRock seven years ago.
Credit Suisse announced the addition of three new, “ultra-efficient” ETFs to its range of funds. These funds will supplement the fund manager’s existing index Funds.
Credit Suisse Asset Management had an AUM of CHF 132 billion as of end-December 2019. It has a core business of index funds and has been replicating indices for a wide array of asset classes, regions and currencies since 1994. Currently, it has a range of more than 90 index funds on offer. It has extended this capability to ESG sustainability indices.
Moreover, two of the new funds have a focus on environmental, social and governance (ESG) aspects.
Digital investors – the rationale for the new ETFs
Credit Suisse said they were selectively adding the ETFs in areas “where they exhibit efficiency advantages over index funds.”
Furthermore, the asset manager said the ETFs will meet the “growing demands for liquid, exchange-tradable products driven by digitalization.”
Specifically, such demand emanates from investors, like fintechs, that have geared their processes and systems to stock-market transactions.
“We continually analyze the market, new trends and client needs to provide appropriate solutions for our customers,” the fund managers said in the statement. Moreover, “the strategic importance of ETFs will further increase in the future as digital sales platforms gain greater significance.”
The new ETFs from Credit Suisse
The new ETFs, to be established under Irish law, will be converted from three existing index funds. Furthermore, the ETFs will be listed on the SIX Swiss Exchange, the Borsa Italiana and the Deutsche Börse. They are:
- CSIF (IE) MSCI USA Blue UCITS ETF,
- CSIF (IE) MSCI USA ESG Leaders Blue UCITS ETF,
- And the CSIF (IE) MSCI World ESG Leaders Blue UCITS ETF
As mentioned, the last two mentioned above have an ESG focus.
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