Credit Suisse Asset Management and CSFB Prime Services will combine two units to create a joint cash and short-duration business within CSAM, according to Suzanne Fleming, spokeswoman. The integration will create a single line of business with operations in New York and London and a combined $58 billion in cash and short-duration assets under management. "The combined business will enable us to both broaden Credit Suisse's cash and short-duration product offerings and significantly grow our client base," said Ms. Fleming.
Tim Donovan, currently CIO for CSFB Prime Services' short-term reinvestment portfolios for managed lending clients and hedge funds, will head the new group. He will report to Dennis Schaney, global head of fixed income for CSAM. Mr. Donovan's Prime Services team - Tim Wilson, Alex Boyd and Karen Ng - will join him in the new CSAM unit. CSAM's Andrew Dickinson, head of European cash and short duration, and Richard Balfour, Andrew Lenskold, Kam Poon, Jennifer Ferguson and Kevin Chau, members of the current CSAM cash and short-duration team, will now report to Mr. Donovan as part of the restructuring.
The new structure combines CSAM's $22 billion in U.S. and U.K. cash and short-duration assets and CSFB Prime Services' $36 billion in assets. The move is part of Credit Suisse Group's strategy to move towards a more unified "one bank" structure and is not related to the recent departures of a number of CSAM's investment employees, Ms. Fleming said. In April, CSAM lost its high-yield team, led by Richard Lindquist, to HSBC. Gail Landis, managing director and head of CSAM's distribution in the Americas, and Gregory Sawyers, global co-head of equities, both resigned last month. And earlier this month, Suzanne Moran, head of investment policy for short duration portfolios, resigned from the firm, as did David Fisher, a fixed-income portfolio manager. Ms. Fleming acknowledged the departures but said CSAM has also made several recent hires, adding three new credit analysts and an investment-grade, fixed-income portfolio manager, Ms. Fleming said.