In the face of new multi-asset solutions, are multi-managers losing their edge?

Discretionary fund managers and new multi-asset solutions are squeezing the traditional multi-manager model, which cost more and no longer offer anything new. Jon 'JB' Beckett and Stephen Walker debate the issues surrounding the traditional multi-manager model, and discuss if it is still relevant to investors today.

Stephen Walker: There are three key tasks that fall on a multi-manager and their aptitude which should justify what they get paid. The first is determining the appropriate strategic asset allocation, while the second is determining any tactical deviation from the strategic targets and adding value from doing so. The third, which undoubtedly consumes most of the time and effort in most cases, is manager selection. Jon Beckett: True, but the challenge for multi-managers is they cannot simply assume they can charge for asset allocations by default, unless they can demonstrate a consistent q...