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‘IFAs need style counsel’

Fidelity says rapid growth in the multi-manager market has led to different product types, which means IFAs need more information on how these strategies work.

The firm says multi-man-ager has become a “must- have” product and its latest research shows that 82 per cent of advisers are using multi-manager products.

Fidelity sets up its first unfettered funds of funds in 2003.

There is no shortage of information for advisers but Fidelity believes that rather than reaching saturation point, advisers need more targeted information about the suitability of the different types of multi-manager products for their client base.

It says a lot of providers market their multi-man- ager funds on performance but advisers appreciate inf-ormation about multi-manager which is not based on the provider pushing its products.

Fidelity has this week been hosting a series of multi-manager masterclasses across the UK, which will continue until the end of the month.

It is using these forums to address topics such as the impact that each multi- manager approach has on advice and the future of multi-manager.

Head of IFA channel Peter Hicks says: “Multi-manager is growing so fast and the types of offering are not the same. There are different styles – manager of manager, funds of funds. If you understand what is going on under the bonnet, it easier to dec-ide what is most suitable for clients.

“Advisers often spend the majority of their time on the highest value clients. It does not mean they don’t want their lower-value clients but they can deal with them more efficiently through multi-manager. It is not all about performance but suitability – how the strategies are different and why the funds behave differently.”

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