Credit Suisse enters Italian market with ETF range

Credit Suisse is entering the Italian ETF market with its Xmtch range, as part of a plan to expand its offering across Europe.

The bank's first launch into the Italian market comprises 17 cash-based ETFs on the Borsa Italiana. The range includes equity funds, and inflation linked and government bond funds based on a range of maturities, with a regional focus on Europe, the US, and Japan.

The bank says Italy is the first country outside of Switzerland in which it has launched its range, due to increasing demand for index-linked products among European investors.

Over the past eight years, Credit Suisse has bolstered its ETF business in Switzerland and has accrued €6bn in assets under management.

Credit Suisse managing director and head of beta strategies Oliver Schupp says: "The challenging market conditions of the last eighteen months coupled with an investor base that is increasingly looking for transparency and flexibility means that we are seeing a rising demand for ETF products among our clients."

A Deloitte survey of European institutional investors sponsored by Credit Suisse found Italy, the UK and Switzerland have the highest appetite for index related investments with 61% of respondents in Italy showing a preference for ETFs.

Findings also revealed 86% of Italian investors surveyed would prefer traditionally replicated products, rather than synthetic ETFs, showing a shift in attitude towards counterparty risk.

Respondents across Europe view liquidity as the most important criteria when investing in ETFs.