SHARE


The appeal and value-add that multi-management brings to investors is to consistently deliver on client outcomes. The aim is to reduce the range of outcomes that would otherwise be experienced by investing with a single investment manager.

During times or market crisis, even the seemingly best-positioned investment managers may experience a heightened level of unpredictability in their performance over the short-term. This may result in investors experiencing unexpected outcomes.

 

How do multi-managers manage risk?

A multi-manager’s process is aimed at delivering more certainty in investment outcomes. We consider investment risk management, which aids in the smoothing of returns, to be as important as the goal of obtaining above-peer and above-benchmark returns.

The appeal and value-add that multi-management brings to investors is to consistently deliver on client outcomes, and in the process reduce the range of outcomes that would otherwise be experienced by taking a view to investing with a single investment manager. During times such as these, and as experienced during other crises such as the financial crisis in 2008, even the seemingly best positioned investment managers may experience a heightened level of unpredictability in their performance over the short-term. This may result in investors experiencing unexpected outcomes from investing in a one-investment manager.

This Citywire article can be found here.