MoneyTalk (November 2004)

by Arch Financial Planning Limited

MULTI MANAGER FUNDS

The multi manager concept has been around for more than ten years but then there were just a handful of such funds available for investors. Now multi manager is one of the fastest growing investment products with news of new providers entering the market almost every month.

According to the Investment Management Association there is currently more than £7bn invested in multi manager funds.

In broad terms the multi manager product is the modern day equivalent of the stockbroker managing a portfolio of stocks and shares for his client. However, whereas the stockbroker would have tended to be employed only by wealthy investors, the minimum investment into a multi manager fund is usually around £10,000. In fact, by using fund supermarkets an investor with £1,000 can now invest into a multi manager fund.

There are two main types of multi manager fund. The most common is referred to as ‘fund of funds’ and the other is referred to as ‘manager of managers’.

We have produced a new Fact Sheet: Multi Manager Funds. If you would like to print-off a copy or read about this important subject further, please visit our website www.arch-fp.co.uk/multi_manager_funds.htm.

If you would like to discuss whether an investment into a multi manager fund might be appropriate for you and you have an Arch adviser then please contact him or her, otherwise email direct@arch-fp.co.uk or telephone 01483 204600.

Risk Factors

The value of your investment is not guaranteed. This, together with the income from your investments, can go down as well as up, and you may not get back the amount your originally invested. Where the portfolio invests in overseas markets, changes in currency exchange rates may mean that the value of your investment goes up or down. Where the portfolio invests in developing overseas markets, the arrangements in relation to regulation, dealing, liquidity and custody may be less secure than in the UK.

Where a yield is quoted by a multi manager fund the level of yield will be subject to fluctuation and is not guaranteed. Some, or all, of the annual management fee may be charged to the capital of the fund. Whilst this increases the yield, it will restrict the potential for capital growth.

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Arch Financial Planning Limited

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