Fund of Funds versus Manager of Managers

There has been a lot of discussion about the differences and relative advantages of one versus the other. During the span of our multi-manager careers, initially at UBS and now at Insight Investment, we have managed both types of vehicles. The goals of both approaches are essentially the same. Both try to effectively provide a diversified portfolio by combining managers with different objectives, investment characteristics, and investment styles, into an efficient portfolio which removes the onus from the IFA regarding manager selection, monitoring, and re-balancing. While the concept of...