South Africa’s top multi-manager unit trusts

Multi-manager funds, or funds of funds, are not a very widely explored area of the South African unit trust industry. The criticism that their extra layer of fees means that they are too expensive often shuts down any further investigation into their value.

Which means that the benefits of these products are often overlooked. But as a single entry point to a range of top fund managers they can be a very useful tool.

The arguments for and against using these funds will be explored more extensively in future articles, as we dig deeper into how they work. We will also explore the different approaches to multi-management and what investors should look for in such funds.

However, as a starting point it’s worth appreciating how much of the unit trust market these funds of funds make up. More than half of all the funds registered in South Africa’s multi-asset categories use a multi-manager approach.

You can read the full article via Moneyweb here.

Author: Patrick Cairns | 11 April 2014 | 00:01