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Managers defend single strategy funds

Multi-managers have defended single-strategy funds amid claims from Chelsea Financial Services that there is no value in the strategy.

Chelsea Financial Services’ latest Relegation Zone shows 24 multi-manager funds in the 101-strong list.

Managing director Darius McDermott has questioned the future of single-strategy offerings, claiming that it is difficult to justify the increased total expense ratio. He says: “We are opposed to single-strategy offerings as we feel there is no value in paying an increased total expense ratio for a multi-manager fund in a sector that has plenty of other choices.”

Henderson director of fund of funds Craig Heron says: “I can see the point that these funds are not as popular as others but we have a European single-strategy multi-manager fund that is one of the best performers.”

Aberdeen multi-manager fund manager Scott Spencer says: “There are reduced assets in that space but there is still demand and we can add value through blending large and small caps as well as growth and value.”

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