Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

BlackRock to acquire Credit Suisse ETF business

BlackRock to acquire Credit Suisse ETF business

BlackRock has struck a deal to buy Credit Suisse’s exchange traded fund (ETF) business.

The amount the US investment firm paid for the business was not disclosed with the deal, which remains subject to regulatory approval, expected to be completed by the second quarter.

Credit Suisse runs a 58-strong ETF business with a total of $17.6 billion in assets under management. The range includes an $8.7 billion range of nine funds domiciled in Switzerland, along with funds domiciled in Luxembourg and Dublin.

The deal complements BlackRock’s existing iShares arm and will result in its ETF business swelling to 264 funds with $157.6 billion in assets under management based on end of 2012 figures.

The move complements BlackRock’s existing iShares business and increases its presence is Switzerland following its purchase of Swiss Re Private Equity Partners in 2012.

Commenting on the deal, BlackRock chairman Larry Fink (pictured) said in a statement: ‘The acquisition we are announcing today represents BlackRock’s continued commitment to the Swiss market and underpins the importance we place on meeting the needs of our clients.

‘This transaction keeps with BlackRock’s growth strategy in the region and provides the necessary scale and presence in the market to further enhance our product suite and deliver client solutions in Switzerland and all of Europe.’

Meanwhile iShares head of EMEA Joe Linhares added: Today’s agreement brings together the innovative culture of two premier ETF providers with a shared commitment to growing the ETF category. The transaction will significantly extend BlackRock’s footprint in Switzerland, which is home to one of the deepest investor bases in Europe.

‘Our long-term strategy is based on tapping growth markets in a disciplined way and deepening our presence with investors, and this acquisition will create an exceptional ETF platform with which to serve local investors and deliver value to shareholders.’

Credit Suisse will continue to be a key investor in the business and BlackRock will look to increase its ETF proposition following the acquisition.

Credit Suisse head of distribution for core investments Martin Keller said: ‘Credit Suisse will remain a large investor of ETFs through our private banking and wealth management division and will partner closely with BlackRock to broaden the ETF product offering for our clients. We believe that BlackRock is well positioned to realise the long-term value of our ETF business.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter