Multi-manager funds feed hiring spree

Multi-manager funds are sprouting up all over the place, and with forecast growth at an average annual rate of 18% between now and 2009, recruiters say investment firms trying to keep staff from defecting will have a struggle on their hands.

"Businesses are building up and they are bringing in people," says Kim Yates, director of Principal Search, the leading specialist financial services headhunter. "The investment consultants in particular have found that their people are coming under pressure on the manager research side as multi-managers increasingly seek to lure them."

"Working for a multi-manager gives the manager researcher the opportunity to back their recommendation by implementing it rather than just passing it on to a client as they would working at an investment consultant."

Multi-manager funds are big business. Information from Cerulli Associates shows sales of multi-manager funds are above and beyond those of single manager funds. The Financial Times quotes net new sales growth figures of 17% over the last five years for multi-manager portfolios, compared to just 5% for mutual funds.

The Financial Times says Fidelity International is building up its global multi-manager business, and will start by launching 12 Luxembourg based portfolios for European investors. Mercer Global Investments will also launch its European multi-manager business next month.