What are Multi-Blend Funds?
Multi-Blend Funds combine investment managers with complementary styles across different asset classes. This increased level of diversification reduces ‘style bias’, an outcome of relying too heavily on a single fund manager, and minimises different types of risk in your portfolio.
Two types of Multi-Blend Funds
1. Diversified
Diversified multi-blend funds spread your investment across different asset classes – like shares, property, and cash – with a choice of portfolios varying in risk to suit your individual needs.
2. Sector based
Sector multi-blend funds diversify within each of the asset classes – spreading your investment across different companies, geographies, industries and currencies.
The correct mix of asset class diversification for you depends on your investment goals, timeframe and tolerance for risk.
How does this work in practice?
Here’s just one example of how Advance blends the specialist skills of different investment managers to create one multi-blend fund.
Advance Australian Shares Multi-Blend Fund
| Manager | Manager’s style | Size of companies invested into (market cap) |
|---|---|---|
| Alleron | Growth | Large |
| Australian Smaller Companies Multi-Blend Fund | Neutral/Value | Small/Micro |
| Bennelong Australian Equity Partners | Core | Broad |
| BTIM | Neutral | Broad |
| Northcape | Core | Large |
| Schroders | Conservative/Growth | Broad |
Growth managers typically seek to invest in stocks with above-average growth tendencies, no matter what the price.
Value managers typically look for 'bargains', or stocks that are below their 'true value'.
Neutral managers typically don't show any bias to growth or value stocks. They can invest in the 'best of both worlds'.
For further information please download the Make the connection flyer.
The Advance investment process
Listen to Patrick Farrell, Head of Advance Investment Solutions, talk about the award-winning Advance investment process and the importance of managing risk effectively within our Multi-Blend Funds. Watch the webcast.
