Understanding manager of managers

Manager of manager funds are not to be confused with fund of funds because they choose from a wider universe of funds and have greater control over performance

There has been a considerable rise in the last year in the number of multi-manager investment solutions promoted to advisers. This increase is not surprising at a time when the task of fund selection and monitoring has become increasingly difficult. With an increasing number of funds to choose from, consistently picking winners becomes very hard. Past performance is of limited help yet the fund management industry continues to promote it, thereby encouraging intermediaries and investors into bad investment habits. Using past performance encourages investors to buy funds only after a maj...