Geert-Eisso van der Zande

Credit Suisse has been ahead of the pack in moving its banking, broking and investment services online, and offers premium research. Its Credit Suisse Weekly newsletter is featured on AMEInfo.com/fn. But what have been the recent trends in this very private world?

'We have seen a shift towards investments that are not correlated with stock market performance,' says regional head Geert-Eisso van der Zande whose calm manner inspires confidence. 'We have also seen a move towards the creation of trusts to provide an additional layer of security for clients'.

'Our philosophy remains one of diversification, and I suppose the real shift has been towards non-correlated investments such as hedge funds where fund managers invest in different investment strategies like event driven, equity market neutral or long/short equities.

'It is no longer a matter of choosing between sectors within stock markets or different regions, as there has been a convergence between them, with major stock exchanges moving together. In this environment our strategy is to invest in the companies that represent core values in their sector and which will give value in the future. Otherwise we look at investments not correlated to stock market movements'.

Credit Suisse prizes its regional base in Singapore which offers a regulatory environment similar in many ways to Switzerland, but away from the increasing internal controls of Europe. From here this private bank provides its full range of financial services to individuals with a net worth of more than $1m and to institutional clients.

'I think Singapore is the model that Dubai should follow in developing its financial services industry, particularly with regard to the legal framework,' says Mr van der Zande. 'The proposed Dubai International Financial Centre will be good for Dubai, and might be a good alternative to Singapore if a similar regulatory system is established.

'Most of Dubai's visionary ideas have worked, and so the DIFC has to be seen in this context, although they have not necessarily proceeded in exactly the way that they set out. At the moment the DIFC is talking about developing a full GCC stock market, while it might be that a Singapore-style offshore banking centre is created at the end of the day. We will be very interested to see how this project develops'.

Yet for the moment these remain challenging times for investors, and Mr van der Zande is perfectly honest about the difficulties ahead.

'There is no room for interest rates to go except up,' he says. 'We are basically at the bottom for US interest rates. That means that bonds should be avoided, although there are always exceptions.

'However, the rising economic growth that causes the Federal Reserve to hike interest rates might make equity investments more attractive again,' says Mr van der Zande. But he agrees that it is almost a truism to note that the high investment returns seen in the late 1990s are now a thing of the past.

Investors in the Middle East also need to watch the US dollar which Credit Suisse believes will weaken further against the Euro.
'The hay day of the US dollar is over,' say Mr van der Zande. 'The weakening of the dollar will continue, although there are always fluctuations'.

For its part CS will continue to provide investment advice to its many Middle East clients from its spacious new offices on Dubai's Sheikh Zayed Road and from an office in Abu Dhabi. Troubled times generally see a 'flight to quality', and that should benefit Credit Suisse.