MULTI-MANAGER FUNDS
Multi-manager funds are a type of actively managed fund, where a fund manager invests in different underlying funds run by different individual fund managers. In a nutshell, multi-manager funds are your ready-made route to a diversified portfolio.
One big advantage of multi-manager funds is that they give experienced fund managers the power to manage their specialist asset class – instead of one manager running a whole portfolio. This cuts down your exposure to manager risk, and means that your investments can benefit from industry insights that aren’t always accessible to individual investors. However, because of the extra layers of management that come as part of the package, multi-manager funds often have higher charges.