A multi-managed fund is a portfolio constructed by making investments into other single manager unit trusts. The underlying fund managers are carefully chosen to best meet the investment objectives of the multi-managed fund and to achieve optimal outcomes for investors.

One of the key benefits that a multi-managed fund can provide is an extra level of diversification. Investors gain access to all the usual benefits of a managed fund, such as diversification of asset class and management expertise with the added layer of diversification by fund manager. This is strategically significant because different fund managers will rarely perform equally in all market conditions. Having a panel of fund managers reduces the exposure to the performance of a single fund manager and therefore the risk while incorporating different investment theories and styles.

Effective active management by the multi-managed fund is an important part of the process and through ongoing monitoring, manager selection and allocation adjustment, helps to ensure that the underlying funds are delivering the best possible outcomes for investors in varying market conditions.