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  • What are Multi-Blend Funds?

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 Multiblend Funds

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 Based Multiblend Funds

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)
Alphinity Core Broad
Australian Smaller Companies Multi-Blend Fund Neutral/Value Small/Micro
Bennelong Australian Equity Partners Core Broad
BTIM Neutral Broad
Fidelity Growth Broad
Schroders Conservative/Growth Broad
Vinva Quant/Style Neutral 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'.