Blackrock has strengthened its position in Switzerland after buying Credit Suisse’s exchange traded funds (ETF) business.
The acquisition, for an undisclosed sum and subject to regulatory approval, is expected to be finalised by the end of the second quarter of this year.
The move represents the firm’s second acquisition in the country in the last 12 months following the purchase of Swiss Re Private Equity Partners in 2012.
Credit Suisse manages $17.6bn across the 58 funds in its ETF range, including $8.7bn in nine funds domiciled in Switzerland as well as funds domiciled in Ireland and Luxembourg.
The business will complement Blackrock’s existing ETF platform, iShares, and the combined platform will enable Swiss-based clients to access the largest European ETF offering across equities, fixed income and gold. Upon completion, the expanded iShares EMEA ETF range will comprise 264 ETFs with $157.6bn in assets under management.
Blackrock chairman and chief executive Laurence Fink said: “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.”
Credit Suisse head of distribution for Core Investments Martin Keller added: “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.”
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