Monene Watson, the chief investment officer, Old Mutual Multi-Managers - a manager of multiple managed funds - explained how a vast universe of global funds was reduced to just a few investment options by following a prudent investment approach. “Drilling down from hundreds of funds to a handful is no easy feat, but multi-managers can do this on an on-going basis by designing a process of selecting managers that is well-thought-through and anchored in a sound philosophy.”
Watson believes skilled multi-managers with a robust framework are best placed to navigate the complex sea of offshore investment opportunities to minimise risk and maximise growth for retirement savings. “Multi-managers have access to a broad universe of funds on a global scale, and are able to combine managers to fully diversify their offshore exposure over time.”
This process allows multi-managers to curate an assortment of varied asset managers, each with their unique investment style, in a complementary way that provides flexibility, enhances investment performance and minimises risk. Multi-managers access this information using a comprehensive database that covers a broad universe of funds - from large corporate firms to smaller boutique investment managers.
The first step, says Watson, is screening this universe of options. “Once we have our defined universe, we are able to begin filtering the most appropriate funds within each asset class in terms of both managers and mandates. This stage involves identifying a minimum track-record, a risk profile that falls within our desired parameters and a mandate that is aligned with our own.”