Last month, Credit Suisse saw a $4.4 billion withdrawal from US and European funds following a takeover deal by rival UBS Group AG. Credit Suisse’s European funds suffered net redemptions of $3.8 billion between March 20 and April 6, while US funds lost another $575 million, according to Morningstar Inc. data. These figures only include funds reporting daily data and do not represent the entire Credit Suisse wealth management universe.
These outflows highlight the critical challenge UBS faces in retaining clients following the government-backed emergency takeover of Credit Suisse. Colm Kelleher, president of UBS, said it will likely take months to complete the deal and up to four years to complete the integration.
The most significant outflow was recorded on March 21, two days after the announcement of the transaction, with a withdrawal of $813 million. Since then, redemptions have declined, with approximately $230 million repaid between April 5 and 6. This could suggest that the worst of Credit Suisse’s losses are over.