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.
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
