Here's the irony

Intermediaries are increasingly turning to multi-manager funds in the name of better performance and Treating Customers Fairly. So why is the FSA now investigating the use of multi-manager funds by advisers on the same grounds?

You might call the FSA's current investigation into use of multi-managers ironic. Actually, some readers might use stronger words than that, but let us avoid provocation. The fact is that the FSA is asking IFAs to explain why they are increasingly turning to multi-manager funds. The regulator is paying particular attention to the level of charges compared to single-manager funds and, above and beyond that, the cost of fund of funds (Fofs) in comparison to manager of managers (Moms). Initial inquiries have been described as exploratory; files have been inspected, interviews conducted, an...