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Credit Suisse cuts holding in BlackRock

Credit Suisse’s multi-manager team has lowered its exposure to Mark Lyttleton’s BlackRock absolute alpha fund by a third, investing most of the proceeds in a Barclays ishares exchange traded fund.

The move follows the failure of the first bail-out deal in the US and the sell-off in the Dow Jones early last week.

Credit Suisse co-head of multi-manager Graham Duce says it remains a big follower of Lyttleton but felt the need to put some beta into its portfolios.

He says: “Mark has had a difficult period but we still hold a significant portion of assets with him, particularly in the cautious managed fund.”

The Barclays ishares ETF will sit in the group’s multi-asset distribution, equity managed, constellation, multi-asset growth and balanced mana- ged funds, with ranging exposure across the five offerings.

Duce says: “The ishare allows us more flexibility as a trade while we do not have to wait until 12 each day for a valuation.”

He says the group has also lowered its cash weighting from around 12 to 8 per cent across its 12 funds.

Duce says: “We had been holding a double-digit position for most of the third quarter and we felt it was time to put the money to work and the Barclays ishares ETF is one of the leaders in the marketplace.”

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