A number of Credit Suisse Asset Management the clients – none with holdings in the $ 10 billion supply chain finance fund that the company has said it is going out of business – have no plans to change their relationship with the manager of funds. But they will continue to monitor the situation as it continues to unfold.
Pension fund executives said the layoffs, which followed the manager’s struggles to meet valuations and insurance coverage issues with now collapsed financial services firm Greensill Capital, had nothing to do with it. impact on their passive investments via CSAM.
The Swiss federal pension fund PUBLICA, Berne, which had 41 billion Swiss francs ($ 42.2 billion) as of December 31, 2019, has a relationship with CSAM in the field of passive shares at around 5 billion Swiss francs, and without investing in Greensill or any other alternative strategy offered by CSAM.
“Is the CSAM now officially under surveillance? No ”, because the allocation managed by CSAM is passive and separate from supply chain finance funds. “And we’re happy with what they’re doing,” said Stefan Beiner, head of asset management and deputy managing director.
But, “are we talking to them and watching what they’re going to do in terms of their strategy, the reorganization of the unit?” Yes of course we do. Being a big asset manager in (the) Swiss market, we would tell them anyway “about any major changes and the situation, whether or not they are a partner – a standard process,” he added. The parent bank announced on March 18 that it was separating the asset management unit from the international wealth management division and installing its own CEO.
According to its 2019 annual report, PKSBB, for which CSAM manages overlay, passive stocks, passive bonds and real estate allocations, is following recent developments “with interest,” said Patrick Zuber, the fund’s chief operating officer. There is no exposure to Greensill products.
“Regarding our mandates, we currently do not see a need for immediate action. The development will be monitored and taken into account during the discussion of all our managers within the investment committee which meets regularly”, Mr. Zuber added.
Patrick Fleming, IT director of the Wyoming State Treasurer’s Office, said the situation has been discussed with senior management and executives “will monitor the situation as it evolves. At this point we do not intend to change our allocations, “he said. Wyoming State Loan and Investment Board, Cheyenne, hired CSAM to manage a $ 500 million bank loan investment in 2019. Mr. Fleming oversees the state’s $ 19.5 billion in non-retirement assets.
Other pension fund executives for which CSAM manages passive allocations have said they have no plans to put the company under scrutiny.