A type of unit trust fund known as a multi-managed fund is becoming popular with investors. This is a fund that invests not in underlying assets such as shares and bonds, but in other unit trust funds, with the aim of achieving a high, more stable return over the long term than any one of its constituent funds could do.
In the second in a series of four podcasts on investing, in partnership with Alexander Forbes Investments, the company’s head of technical marketing, Riccardo Fontanella, chats to Dhivana Rajgopaul about multi-managed investments. He explains:
- The difference between a multi-managed fund and a standard single-manager fund;
- Why this type of investment is becoming popular;
- Why the diversification achieved by choosing a range of managers offers the prospect of better outcomes for investors;
- The process by which the Alexander Forbes team selects underlying asset managers;
- How the costs of multi-manager funds weigh up against single-manager funds, and how pricing is kept competitive; and
- What the lay investor should look for in choosing a multi-managed fund.
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