Multi-manager fund

A multi-manager arrangement appoints several managers, each running a sleeve of the assets. It takes two common forms: a fund of funds buys other funds, while a manager of managers gives each appointee a segregated mandate. A pension scheme or family office that appoints several managers directly works the same way.

Each manager works within its own investment mandate and guidelines. Trustees in England and Wales need a written agreement with each manager, binding it to their policy statement (Trustee Act 2000 s15). The owner’s policy also limits the whole, such as one issuer across every sleeve.

Positions each manager keeps within its own limits can still breach a combined limit. In Acclimetry, each mandate can be its own portfolio, with rules linked to its agreement; the Analysis view rolls up an entity. A related-portfolio limit measures an instrument, issuer group or counterparty group across several portfolios at once.