Why use multi-manager solutions?
A multi-manager fund means that there is not just one investment manager managing your money – there are many.
We believe that no single manager can be the best at managing money in every asset class, every sector, using every strategy and in every market condition. We also believe that specialisation is a good thing. As a result, in each of our funds we employ a range of specialists, based on their particular areas of expertise, to cover a range of different investment approaches.
For example, we use seven different managers in the IOOF MultiMix Australian Shares Trust. One of those managers specialises in investing in smaller companies, another specialises in a highly-technical strategy called 'buy-write' and others use more traditional 'value' or 'growth' strategies. While some of these strategies may be unfamiliar to you, they blend together to create a well-rounded Australian shares solution.
If you invested in one of these managers on their own, you would be exposing yourself to the risk that their preferred strategy may underperform at certain times. Combining these complementary styles provides you with a level of diversification that should produce solid performance across the market
To see how a multi-manager fund works in practice, see our flyer on how multi-manager funds make investing easy.
Click here to learn more about the multi-manager approach and why this solution makes sense for advisers.