HedgeCo News Archives - Man Investments and Credit Suisse are launching a managed accounts initiative in response to investors’ increased demands for transparency, liquidity and control.
The new initiative brings together Man’s extensive managed accounts platform and portfolio management expertise with access to Credit Suisse’s structured fund linked products capability, to offer institutional investors flexible and secure investment across a broad selection of the best managers globally.
Under the initiative, Man Investments is responsible for the sourcing, due-diligence and ongoing quality monitoring of managers. For more than ten years Man has built a significant managed accounts platform as an investor, in contrast to the flow driven business model of other providers. This means that in addition to the security, transparency and liquidity that managed accounts provide, Man is also able to offer ongoing portfolio monitoring and risk management oversight, bespoke and transparent investor reporting, as well as portfolio investment advice. Man will continue to offer its managed accounts platform directly to Man investors.
Credit Suisse is responsible for providing risk transfer and delivery expertise in combination with its strong balance sheet to provide a choice of principal protection, dynamic leverage, pass-through exposure and enhanced liquidity. Delivery vehicles include solutions such as notes, certificates, swaps, unit trust and UCITS III funds.
A key differentiator of the joint offering is its independence; it has been designed to mitigate potential conflicts between investors and the structured products provider by offering the same liquidity terms across all investors. Independence also means that managers are offered a choice of prime brokers, enabling them to spread counterparty risk and achieve better execution.
Christoph Moeller, Global Head of Distribution at Man, said: “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 standalone solution. For this reason, managed accounts have always been deeply rooted in our investment process. We are delighted to have teamed up with Credit Suisse, a leader in fund linked products, to help broaden our global investor reach through customised solutions on the platform.”
Walter Rotondo, Global Head of Fund Linked Products at Credit Suisse, said: "Man has accumulated a wealth of experience over the years in running managed accounts, supported by highly impressive portfolio management, research, infrastructure and risk management teams. Credit Suisse is delighted to commit its specialised resources, capital and balance sheet to the programme and provide investors with highly attractive investment solutions.”