How to choose a multi-manager fund

Convincing the intermediary market that outsourcing to multi-managers is a good move has taken time. The best performers are now consistent sellers, indicating a sea-change in adviser thinking. But no fund of fund portfolio is alike. Mindset, parentage and distribution goals play equally on design and performance. Funds of funds fall into three distinct categories, according to Bambos Hambi, ex head of Gartmore’s multi-manager proposition and now a consultant to the asset management industry. The first is what he terms the aggressive camp. These managers tend to be more assertive in t...