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 We don't like Multi-manager funds

These sorts of products usually mean you are buying into a fund which has invested into a selection of other funds.

They are being sold in bucket loads by the big banks, but they have a number of problems. Firstly, the banks have cut costs, and have also been able to put up the charge to the investor - a great trick if you can get away with it.

The investor is also moved further away from the decision maker. If they think their first point of contact is their bank or IFA, forget it - the multi-manager is out of sight and out of mind.

Thirdly, if the bank and IFA are receiving ongoing remuneration for having sold the multi-manager fund (typically 0.5% per annum), what service are they continuing to provide to justify this payment? None, in our view.


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