About Us Press Release
Increased regulation given as one of key reasons for choosing Multi-Manager products by leading IFAs
Intermediaries are more comfortable outsourcing fund selection and monitoring to the experts given the current regulatory environment.
The top reason for advisers opting for the multi-manager route, given by 68% of the respondents, was expert fund selection and diversification. The survey of more than 500 intermediaries, carried out between 5 - 16 September this year during CSAM's Multi-Manager Roadshow, also found that 38% of respondents cited reduced administration as a key influencer in choosing multi-manager funds. Other reasons given included performance, core/satellite propositions, clients' risk profiles and asset allocation.
The survey also highlighted that the average level of investment business in multi-manager funds stands at 34% of all investment recommendations and this is expected to increase.
Ian Chimes, Managing Director, CSAM Funds (UK) Limited, says:
"The huge number of funds available to the retail investor in the UK makes selection a time consuming headache for many intermediaries, let alone having to monitor the performance of those funds once they have selected them. So outsourcing these skills to expert multi-manager investors makes perfect sense."
Robert Burdett, Joint Head of Credit Suisse Multi-Manager Services, added:
"The spread of investments was the key reason for picking multi-manager funds given by the intermediaries questioned in our survey, which highlights that their clients are demanding the highest levels of diversification, not just by country, sector or style but by fund management group. No one group, team or manager has the monopoly on investment talent. Therefore, the key proposition of multi- manager is to seek out the best investment management skills from around the world with the aim of achieving the best results for our investors.
"Finding consistent returns requires considerable research. At CSAM, we are able to draw upon the considerable resources of the entire team and fully research each potential investment prior to investing. Lacking the benefit of highly intensive research, the odds are not stacked in favour of the average investor or intermediary."