ICBC Credit Suisse Asset Management

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ICBC Credit Suisse Asset Management - Wikipedia

From Wikipedia, the free encyclopedia

ICBC Credit Suisse Asset Management Co., Ltd.

Native name	工銀瑞信基金管理有限公司
Company type	Joint venture
Industry	Financial services
Founded	June 21, 2005; 19 years ago (2005-06-21)
Headquarters	Beijing, China
Key people	Zhao Guicai (Chairman) Chong Gao (CEO)
AUM	US$239 billion (December 2022)
Owners	Industrial and Commercial Bank of China (80%) Credit Suisse (20%)
Website	www.icbccs.com.cn

ICBC Credit Suisse Asset Management (ICBCCS; Chinese: 工銀瑞信基金管理; pinyin: Gōngyín Ruìxìn Jījīn Guǎnlǐ) is a Chinese asset management company founded in 2005. It is currently a joint venture (JV) between Industrial and Commercial Bank of China (ICBC) and Credit Suisse.

History

ICBCCS was founded in June 2005 as a Qualified Domestic Institutional Investor by Industrial and Commercial Bank of China, Credit Suisse and COSCO. They held stakes of 55%, 25% and 20% respectively.^[1]^[2] ICBCCS officially launched on 5 July 2005, and on 26 July, it launched its first equity fund, The Core Value Equity Fund which raised $530 million. Prior to this banks such as ICBC were only allowed to sell third-party funds.^[3]^[4]

In its first year of operation, ICBCCS had some initial setbacks where it saw a 51% drop in assets under management from $493 million to $240 million in the first quarter of 2006. Analysts blamed ICBC which was believed to have encouraged its 370,000 employees and its clients to invest in ICBCCS funds. Demand for equity mutual funds in China had fallen sharply since mid-2004 due to poor stock market returns. However afterwards ICBCCS had become quite profitable.^[2]^[5]

In September 2009, battered by losses because of falling shipping rates, COSCO sold its 20% stake in ICBCCS for $37.8 million to raise cash. The sale of the stake was conducted through the China Beijing Equity Exchange from 29 September to 3 November. According to the pilot rules for bank JV ownership and management in China at the time, only state-owned commercial banks with experience in managing asset management companies could bid to acquire a fund management company. In addition the buyer would be required to be vetted by the China Securities Regulatory Commission, China Banking Regulatory Commission and People's Bank of China. As a result, the bidding list was quite restricted and there were not many bidders. By October that year, it was determined that ICBC would be acquiring COSCO's stake. The acquisition was seen as a sign of consolidation in the industry of China where domestic companies were acquiring more control from their foreign partners over their JVs. On 16 November 2011, the deal was completed with ICBC acquiring 20% of ICBCCS from COSCO and 5% from Credit Suisse which increased ICBC's stake in ICBCCS to 80%.^[1]^[2]^[6]^[7]^[8]

In February 2012, ICBCCS launched its international arm in Hong Kong. It was named ICBC Credit Suisse Asset Management (International) and was licensed by the Securities and Futures Commission.^[8]

In July 2023, after the Acquisition of Credit Suisse by UBS, it was announced by UBS that it had halted plans to set up a new fund unit in China and instead decided to maintain ownership over ICBCCS. China regulations stated that any company can own no more than two fund management firms in the market. UBS had already two firms in China which were ICBCCS and another JV, UBS SDIC Fund Management.^[9]

References

^ ^a ^b "Cosco seeks 260m yuan from sale of venture". South China Morning Post. 1 October 2009. Retrieved 9 December 2023.
^ ^a ^b ^c "ICBC to raise role in Credit Suisse venture". www.ft.com. Retrieved 9 December 2023.
^ Lord, Nick (18 August 2006). "Credit Suisse Asset Management gets HK nod". FinanceAsia. Retrieved 9 December 2023.
^ "The China 20: The feeling's mutual". Institutional Investor. 10 October 2005. Retrieved 9 December 2023.
^ "Setback for Credit Suisse's China plans". www.ft.com. Retrieved 9 December 2023.
^ "China's Era of Bank JVs May Be Ending". Bloomberg.com. Retrieved 9 December 2023.
^ "2011 Annual Report" (PDF). ICBC.
^ ^a ^b "ICBC Credit Suisse set to launch Hong Kong arm | Moves". AsianInvestor. 16 February 2012. Retrieved 9 December 2023.
^ Li, Selena (11 July 2023). "UBS shelves plan for new China fund unit, takes over Credit Suisse joint venture, sources say". Reuters.

External links

Official website

Credit Suisse

Founders

Alfred Escher

Notable executives

Current	Axel Lehmann Jose Isidro Camacho Robert S. Murley Ulrich Körner
Former	Adebayo Ogunlesi António Horta-Osório Brady Dougan John J. Mack Francesca McDonagh Lukas Mühlemann Oswald Grübel Paul Calello Robert L. Genillard Thomas Gottstein Tidjane Thiam Urs Rohner

Subsidiaries

Current	Credit Suisse First Boston ICBC Credit Suisse Asset Management Select Portfolio Servicing
Former	APriori Capital Partners Avista Capital Partners Diamond Castle Holdings DynamicOps Qube Research & Technologies Winterthur Group Valcambi

Historical components

Buildings

1 Cabot Square

Category

Major asset management companies

Americas

Canada

USA

EMEA

France	Amundi AXA Investment Managers BNP Paribas Asset Management Ostrum Asset Management
Germany	Allianz Global Investors DWS Group Union Investment Universal Investment
Italy	Anima Holding ARCA Fondi SGR Assicurazioni Generali Azimut Holding Eurizon Capital
South Africa	Allan Gray Coronation Fund Managers Ninety One
UK	Abrdn Aviva Investors Baillie Gifford Insight Investment Janus Henderson Legal & General Man Group Newton Investment Management M&G Royal London Asset Management Schroders
Others	Aegon Fidelity International GAM Robeco

Asia Pacific

Australia	AMP Capital Challenger First Sentier Investors IFM Investors Magellan Financial Group Perpetual Pinnacle
China	Bosera Asset Management China Asset Management China Southern Asset Management China Universal Asset Management E Fund Management Fullgoal Fund Management Harvest Fund Management ICBC Credit Suisse Asset Management Penghua Fund Management Tianhong Asset Management Zhong Ou Asset Management
India	Aditya Birla Sun Life Asset Management Axis Mutual Fund ICICI Prudential Mutual Fund Kotak Mutual Fund SBI Mutual Fund UTI Asset Management
Japan	Asset Management One Mitsubishi UFJ Trust and Banking Corporation SPARX Group Sumitomo Mitsui Trust Holdings
Korea	Mirae Asset Financial Group Samsung Asset Management Shinhan Asset Management
Others	Eastspring Investments

Methodology: By AUM