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Credit Suisse plans to overhaul asset-management units

Switzerland's Credit Suisse is planning to integrate its asset-management entity with the private and investment banking divisions, in a move to reduce operational costs and increase work efficiency.

Sources familiar with the matter told The Wall Street Journal that the bank is yet to finalise on the plans and a decision could be reached in October.

Its asset management contributed only 12% to Credit Suisse Group’s pretax profit in the first half of this year, according to the financial data released by the bank.

The bank had intended to offload its two private-equity units in July to meet new regulatory requirements on investments in hedge funds and private-equity funds brought by the US Volcker rule.

In the early 2012, the bank had also slashed its asset management operations in Aberdeen Asset Management to less than 3% from 20% by the end of the second quarter.

Credit Suisse asset-management unit oversees approximately $360bn in assets and provides mutual funds, alternative investments and other products to institutional clients and private investors.