UK - Credit Suisse Asset Management (CSAM) - the institutional and mutual fund management arm of Credit Suisse Group - has acquired SLC Asset Management (SLCAM) for an undisclosed amount, in a move that is likely to result in some job losses.
According to deputy chairman for CSAM, Bob Parker, some losses will occur as result of the deal but were not likely to be on a major scale. He added that the firm was still working on the merger of operations.
“We are working out how to achieve the integration, and how the headcount will work out. But I will say that the overlay is minimal with respect to both products and clients.”
The acquisition of SLCAM - the UK fund asset management unit of global insurer Sun Life Financial of Canada - aims to significantly strengthen CSAM’s position in the largest pension fund and retail market in Europe, said the firm.
Terms of the deal include parent-related insurance assets, and third-party institutional and retail funds. On the institutional side, the move enhances CSAM’s operating platform by adding one of the UK’s largest participants in the growing corporate pooled pension fund business, said the firm. Strategically, this is an area that CSAM has wanted to get into for some time, added Parker.
CSAM also gains more than 500 institutional clients, both in pooled and segregated portfolios, as well as a wider network of consultant relationships. CSAM also clinches £800m worth of retail mutual fund business.
Also included in the acquisition is a property investment business with about £800m in funds - a first for CSAM in the UK - adding to existing capabilities in Switzerland and Germany.
Overall, the transaction - pending regulatory approvals - brings CSAM a further £11bn in assets under management to a global figure of approximately US$280bn. Additionally, SLCAM chief executive officer Ian Fishwick has been appointed new head of fixed-income.
The SLC name will be phased out, and the existing SLCAM business rebranded under the Credit Suisse Asset Management name during 1H 2002. The firm will retain its current London base.
Parker said that despite the firm keeping an “open mind” on future acquisitions, realistically the firm would not be looking for another UK buy for another two years. By Madhu Kalia
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