What are Multi-Manager funds and why are they useful?

We take a look at the benefits of Multi-Manager funds and how they can save you time and effort when investing.

Article updated: 28 March 2019 3:00pm Author: Sheridan Admans

Let’s face it, we would all rather be sitting on a beach, playing with the kids or going on days out rather than filling our spare time worrying about our investments and whether something like Brexit will result in losing money. So if you're time constrained, and want a solution for making your money work harder, then a Multi-Manager investment could be just what you need.

An easy way to get broad exposure

A Multi-Manager fund can be considered an off the shelf solution that aims to meet the challenges set out above. The only thing you need to do is determine what level of risk you are comfortable taking (low, medium or high) and what your investment goal is (income, growth or a combination of the two).

The managers of Multi-Manager funds are able to invest in a multitude of different asset classes, geographies and sectors. The managers and their teams will have a berth of knowledge and tools available that allow them to combine investments in such ways to minimise risk, while attempting to grow returns in most market conditions.

Normally investors are encouraged by their brokers or advisers to regularly review and re-balance their portfolio, as not doing so can lead to distortions in the level of risk taken which will impact on returns. In a Multi-Manager fund, this is taken care of for you.

Multi-Manager funds essentially act as a one stop shop for those that want to be active in securing their financial future but with minimal fuss.

How we make your money work harder

At the Share Centre we offer three such Multi-Manager funds that invest across a broad spectrum of regions, such as the UK, US and Asia. It offers exposure across sectors, for example insurance and infrastructure, as well as different asset classes, such as equities, bonds and commodities. Additionally, the fund invests across different investment vehicles like investment trusts, exchange traded funds (ETFs) and funds.

The manager selects specialist managers who make investment decisions in their area of expertise. This way the TC Share Centre Multi-Manager funds can invest across asset classes, regions and sectors but still have specialists making decisions about where to invest.

The funds’ assets are managed on a medium to long-term perspective, which we believe reduces the ever-increasing effect of market noise and should help them outperform more short-term, momentum-orientated managers over the long term. This may mean the funds underperform their sector peers in some years, as the managers prefer not to chase markets, but instead look for assets or sectors which they believe are undervalued and have strong potential for delivering low risk higher returns over time. Therefore, it is unlikely the portfolios will experience a high turnover and equally, we seek funds to invest in that also have lower than average turnover compared to sector peers.

To give some background to the investment process, the managers engage with c.200 fund managers a year to make sure we have the best managers looking after investors’ money. At The Share Centre we have analysts studying different regions, sectors and asset types as well as global economic conditions to better understand the market risks and steer our funds through a maze of challenges.

Want to know more?

The TC Share Centre Multi-Manager Cautious fund is our lowest risk offering. Our TC Share Centre Multi-Manager Balanced fund is suited to growth and income investors and our TC Share Centre Multi-Manager Adventurous fund is higher risk, which aims to achieve capital growth.

Find out about all of our Multi-Manager fund range.

All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Sheridan Admans portrait photo
Sheridan Admans

Investment Manager

Sheridan co-manages our ES Share Centre Multi Manager funds and heads our team of research analysts. He is a chartered wealth manager and qualified financial adviser, and his qualifications include the Securities & Investment Institute (SII) Diploma and an MBA in investment analysis.