InvestorWeb predicts demise of single manager products
Singlemanager multi-sector products will disappear from the market in the medium-term, according to research fromInvestorWeb.
Following its Multi-Manager Growth Superannuation survey, general manager of managed investments Martin Kerr says single products do not offer manager diversification to the investor.
Traditionally, for example, each fund manager creates a multi-asset fund using their own team of shares, fixed interest or property managers.
Through a single manager just offering one style in Australian share management, Kerr says the investor is locked into either a value or growth manager.
However, with multi-manager products, you diversify manager risk with several Australian share managers, and possibly a different set of international share managers.
Kerr predicts that in the medium-term, fund managers will not be offering their own single manager products. “Why would they, when they can get what they are good at on other people’s products?”
The largest corporate super funds have all moved to offering risk-graduated products that use specialist investment managers within each asset class, according to the survey.
They are generally constructed to create a style neutral and well-diversified portfolio for more stable returns when compared to a single style fund.
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