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Tell me about... BT's Multi-manager Funds
The recent fall in global share markets has led to higher levels of market volatility and greater uncertainty amongst investors both in Australia and overseas. Many investors are now wondering where the best place to invest their money is. Should you be invested in shares, bonds, property? With a multi-manager fund, investors can actually invest in all of these and other asset classes at the same time, and through a single product.
At a glance
- Multi-manager funds are a simple, cost-effective way for investors to diversify their investments, lower their risk and achieve greater consistency of investment returns.
- BT's Multi-manager Fund range has provided investors with consistently strong returns in recent years.
What is a Multi-manager fund?
A Multi-manager fund is designed to make an investor's life easier by packaging together high quality investment managers from Australia and around the world into a single fund. They give the investor exposure to a range of different asset classes and investment styles, using an approach that would be impossible for them to replicate on their own, as well as the expert oversight of the team managing the fund.
Multi-manager funds typically invest in all the major asset classes - Australian and international shares, property, bonds, alternative investments (e.g. hedge funds) and cash. The team managing the fund will select investment managers for the different asset classes and bring them together in a single fund. They then allocate an amount of money to each asset class within the fund depending on the fund's objective. For example, if the fund is designed for conservative investors who want low levels of risk, then more money will be allocated to less risky assets, e.g. bonds, than will be allocated to riskier assets, e.g. shares.
Therefore, by investing in a single multi-manager fund, investors can diversify their investment risk and achieve greater consistency of investment returns as a result.
So what are the 'key' benefits of investing in a Multi-manager fund?
Asset classes such as shares, bonds and property perform differently depending on the prevailing economic and market conditions. For example, when the economy is strong, shares typically perform well, whereas when the economy is weak, bonds are likely to perform well. In a way, multi-manager funds 'level the playing field', because investors are spread across a number of different asset classes, all of which perform better than others at some point. This means that when markets experience the sort of volatility we've seen recently, a well diversified portfolio becomes very important. But there are also many other benefits to investing in a multi-manager fund, including:
- Access to a range of specialist investment managers
- Access to different styles of managing money
- Reduced levels of risk
- Consistent and less volatile investment returns
- A dedicated team of investment professionals to select and monitor the fund's managers and to manage the fund on your behalf
BT's range of Multi-manager Funds
BT offers investors a choice of four multi-manager funds that provide continuous exposure to Australia's and the world's leading investment managers in each asset class mixed in a way that lets investors enjoy the best possible returns for their risk appetite.
BT Multi-manager Conservative Fund
For conservative investors who want low levels of risk
BT Multi-manager Balanced Fund
For investors who are comfortable with a moderate level of risk
BT Multi-manager Growth Fund
For investors who are comfortable with a reasonably aggressive approach to
investing
BT Multi-manager Diversified Share Fund
For investors who seek higher levels of return through an aggressive, growth-
oriented investment style and who are comfortable with a higher level of
risk
BT's Multi-manager Funds are managed in-house by our experienced Investment
Solutions team with input from a leading professional investment consultant.
The team is responsible for the asset allocation, manager selection and
construction of each of the four portfolios in the BT Multi-manager Fund range.
At present, BT's Multi-manager Funds use 24 of the world's leading investment
managers spread across 8 different asset classes.
When selecting managers, the team actively seeks out those that have a clearly
identifiable, sustainable edge and a repeatable process that can deliver strong
investment performance over time. To find the right manager, a number of
factors are considered, including their investment philosophy and process, the
quality of their investment team, and the efficiency and robustness of their
business.
Once a manager has been selected, the Investment Solutions team continually monitor and review that manager's performance to ensure they are performing in-line with the fund's investment objective. The team will add or remove managers promptly whenever necessary.
BT's Multi-manager Funds' performance as at 28 February 2007*
| 3 months | 1 year | 3 years | |
|---|---|---|---|
| BT Multi-manager Conservative Fund | 2.68% | 8.80% | 9.51% |
| BT Multi-manager Balanced Fund | 4.31% | 13.82% | 15.15% |
| BT Multi-manager Growth Fund | 4.84% | 15.21% | 17.00% |
| BT Multi-manager Diversified Share Fund | 5.13% | 15.15% | 17.78% |
* Performance data is post-fees, pre-tax. Past performance is not a reliable indicator of future performance
Which BT Multi-manager Fund is right for you?
As with any investment decision, which BT Multi-manager Fund is right for you will depend on your own investment objectives and your risk appetite.
For example, if you are a conservative investor with a low tolerance for risk, then BT's Multi-manager Conservative Fund might be suitable for you. If, however, you are a more aggressive investor and comfortable investing the majority of your money in growth assets, such as shares, then BT's Multi-manager Growth Fund or Multi-manager Diversified Shares Fund might be better for you.
More information?
- Use our Multi-manager Portfolio Calculator to display the asset allocation split of hypothetical investment amounts across our investment managers
- Understand your attitude to investment risk
- Make an appointment with a financial adviser
To find out more about investing with BT:
- Visit BT Online
- Contact BT Customer Relations on 132 135 between 8.00am and 6.30pm, Monday to Friday (Sydney time)