Polin says these offerings have come to fruition at a time when people were looking to make quick money and the recent volatility is a timely reminder of their downside.
A number of well-known leading single-country funds have seen returns tank in the past 12 months such as the Neptune Russia and Greater Russia fund, which has fallen by 60.2 per cent.
Polin says: “I think invest-ors will realise that while they need exposure to emerging and frontier markets, the better route to go down is a general portfolio that looks across all those areas and diversifies risk.”
Polin says he expects the multi-manager market to once again benefit from a prolonged bear. He says: “IFAs will continue to opt to leave fund selection and asset allocation to investment specialists. The growth of that market will lead to more sophisticated products moving towards the macro-hedge fund model as managers look to differ-entiate to justify fees.”