The pros and cons of Fofs and Moms

multi-manager

Fund of funds and manager of managers funds have differing investment freedoms, so before committing clients' money to one or the other it is important you know what the advantages and drawbacks are

One of the enduring debates around multi-manager investing concerns the relative merits of the sector's two main categories - fund of funds and manager of managers. Both disciplines have their own distinct strengths, and our experience suggests that advisers have tended to favour one while avoiding the other. More recently, however, we have seen the beginnings of an evolution within the industry, with some of the leading firms creating and owning their own products that effectively combine both of these concepts. In deciding which is more suitable for a particular client, the first steps ...