InvestorWeb praise for multi-managers
By Rebecca Evans
InvestorWebRe-search has given the burgeoning multi-manager sector a nod of approval, but has found investment houses are challenged to differentiate themselves from their competitors.
The inaugural report covers seven providers and 27 individual funds and according to the research firm, the level of homogeneity within the sector was confirmed in the dispersion of returns between multi-manager offerings.
InvestorWeb, which operates on a six star rating system, assigned two rating classifications as part of the review — strong buy (five stars) and buy (four stars).
The three managers to receive a strong buy rating were BT FinancialGroup, InTech Financial and Russell Investments.
BT’s multi-manager funds were launched to corporate super clients in September 2001, and first offered to retail investors in March 2002 through its wrap and personal super products, with the management of these BT funds outsourced to InTech.
InTech’s five actively managed funds were rated strong buy, however, its three passive managed funds were awarded a buy rating.
InvestorWeb senior investment analyst Rodney Sebire praises the emerging multi-manger sector, and notes the advantages of cost savings and diversification opportunities for investors.
“We believe the sector is ideal for investors looking to delegate manager selection decisions, portfolio management responsibilities and ongoing monitoring to investment professionals,” Sebire says.
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