PODCAST: How a multi-managed fund works

A multi-management fund 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. Photo: Supplied

A multi-management fund 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. Photo: Supplied

Published Jun 28, 2021

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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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