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Why invest in Multi-manager funds
Multi-manager funds offer you a level of diversification not possible from single manager funds. They give you the power to spread your investment across three levels:
- asset classes
- investment managers
- investment styles
Think of a vineyard. There are very few wine makers who attempt to produce all varieties of grapes and wines, let alone be the best in each variety. Typically, a wine maker will specialise in growing a particular variety of grape with the aim of producing a premium bottle of wine. This is particularly true with boutique wineries – rather than spread their skills they become specialists in growing a certain variety of grape and become renowned for a certain variety of wine.
So too with managed funds. There are very few investment managers who invest across all asset classes, let alone excel in each. With a multi-manager fund we overcome this - we select the best investment managers across each asset class allowing you to benefit from specialists in each area, all via a single investment.
This means you can invest with confidence, knowing that should one investment manager or asset class turn sour, the impact on your overall investment returns is minimised.
BT's Multi-manager funds employ this diversification to their maximum benefit – to target higher returns without increasing the level of risk, They help you with making the difficult decisions about which managers to select and how much money you should allocate to different types of investment and manager – all this plus the comfort that your investment is being professionally managed and monitored daily.
Why do I need to diversify?
Imagine a wine cellar. Would you stock it with a single variety of wine, produced by the one wine maker? Or, would you rather have a cellar stocked with multiple varieties to suit different occasions, produced by several specialist wine makers?
So too with BT's Multi-manager fund. They offer you a cellar stocked with multiple investment strategies managed by a vast array of specialist managers. Via a single investment option you achieve:
- an investment that spans across each major asset class as well as other more sophisticated/exotic strategies
- a vast range of investment managers, carefully selected from around the world, to bring you the best in each asset class and style
- a range of investment styles, carefully blended to maintain a neutral balance/style in the portfolio and minimize the impact of changes in market cycle.
- a diverse range of investment strategies, optimally blended to complement each other to deliver maximum return for a given risk profile.
- a sound investment process to combine the managers in an optimal way/mix
Why do I want to invest in a mix of managers?
By combining and optimally weighting a broad range of asset classes and investment managers, we aim to deliver more consistent levels of return with lower levels of risk.
Different investment managers use different investment styles and processes, which adds another layer of diversification to your portfolio. First and foremost we aim to search Australia and the world for investment managers with exceptional, demonstrated talent, and bring them together in these funds so you benefit from more consistent, higher returns in your investment, all while we manage for you the risk taken.