KBC Asset Management has launched its range of Manager of Managers funds, which it says is a new way of adding investor value while also managing the different risks associated with pension funds.
KBC says the traditional method of using specialist managers creates the huge task of finding, hiring, blending and monitoring these managers. It says this can be a daunting task for Trustees and investors, not to mention when the whole process is triggered again if one or a number of individuals decide to leave the fund management house.
KBC says that one solution is to transfer these tasks to a group of full time manager selection professionals or 'Manager of Managers. 'This 'gives all the benefits of a more sophisticated approach with none of the headaches,' they add.
In order to provide a tailored solution for the Irish market, KBC have teamed up with Northern Trust, who have €19 billion under management for MOM products.
Over the last four years, the multi-manager industry has grown by over 14% a year compared to just 3% for the global fund industry. By the end of 2003, over €680 billion was held in global multi-manager products, up almost a third on the previous year.
KBC says it expects to attract €1 billion into this product by 2006.
