Multi Manager FundsMulti Manager Investment funds
There are now over 2,000 UK domiciled funds available to investors, plus an array of offshore funds. Few of these funds' managers are going to deliver good returns consistently so how do you increase your chances of choosing the best ones?
Multi-managers are experts in fund selection. They research the whole market and can also uncover hidden gems that may not even be available to private investors. They then meet the fund managers individually and quiz them on how they intend to achieve long-term performance. Multi-managers will also be experts in combining different funds together to minimise risk and maximise returns. The two main types are fund of funds and manager of managers. Fund of funds managers build portfolios based on their research and will then buy or sell funds based on changing performance potential and market conditions. Typically these portfolios will be split into cautious, balanced or aggressive, with different weightings in different assets. Manager of managers funds invest allocations of a portfolio with pre-selected managers and give those manager specific pots of money, along with specific guidelines as to how that money should be run to meet their objectives.
Multi-manager funds can be a useful one-stop-shop solution as a ‘core’ investment where they can form the bedrock of your wider portfolio. Alternatively, for beginners or the more cautious investor, they are an ideal route into the wider world of market and equity investment.
