Swiss banking giant Credit Suisse and Man Investments, the London-based alternative investment manager, have teamed up for a managed accounts initiative.

Since the credit crisis investors have increasingly focused on transparency and the firms’ new initiative is hoped cater to this zeitgeist, while also meeting client demand for more liquidity and control, the firms said in a statement.

The initiative brings together Man’s managed accounts platform and portfolio management functions with access to Credit Suisse’s structured fund linked products capability.

In this partnership, Man is responsible for the sourcing, due diligence and quality monitoring of managers. This means that Man will offer portfolio monitoring and risk management oversight, investor reporting, and portfolio investment advice, the firms said.

At the same time, Man will continue to offer its managed accounts platform directly to Man investors.

Credit Suisse will provide risk transfer and delivery expertise combined with its balance sheet to offer principal protection, dynamic leverage, pass-through exposure and enhanced liquidity. Delivery vehicles include notes, certificates, swaps, unit trust as well as UCITS III funds. 

“Man has always approached managed accounts from an investment perspective and we view them as a powerful tool in portfolio construction, rather than just a stand-alone solution,” said Christoph Moeller, Man’s global head of distribution.

“For this reason, managed accounts have always been deeply rooted in our investment process,” he added.

The firms emphasised that one of the key strengths of this new initiative is its independence. This will lower the potential for risks between investors and the structured products provider by offering the same liquidity terms across all investors. This also means that managers are offered a choice of prime brokers, enabling them to spread counterparty risk.