Multi-manager investment vehicles

There are two distinct multi-manager investment vehicles under the Collective Investment Schemes Control Act (CISCA)1, namely Manager of Managers (MoM’s) and Fund of Funds (FoF’s). Although both vehicles combine / blend underlying managers, they differ in the manner in which they are constructed and implemented.

Thobile Finca

STANLIB Multi-Manager Investment Specialist

MoM’s – define the underlying segregated mandates

A multi-manager usually invests mainly in segregated portfolios managed by different underlying asset managers but may also invest in collective investment schemes. Segregated mandates allow the multimanager greater control over the portfolio and the costs associated with it. This vehicle not only enables clients to select a single collective investment portfolio and enjoy the exposure to a range of different asset managers, but also provides the “peace of mind” that the underlying asset managers are actively monitored for mandate compliance.

FoF’s – no influence over underlying fund mandates

A fund of funds invests in a range of collective investment funds and may not invest in less than two underlying collective investment funds. This vehicle offers a wide range of diversification within a single fund, as well as access to some of the best investment talent across asset management houses. The multi-manager selects the underlying funds with no influence over the underlying mandates set by the asset management houses for their respective funds.