Metropolitan Multi-Managers offers investors access to smaller and emerging fund managers

As smaller and emerging fund managers build an enviable track record in SA – outperforming larger funds - Metropolitan Multi-Managers announced the launch of SA’s first retail multi-manager smaller and emerging fund – which gives investors access to fund managers with portfolios of less than R5bn.

Fund Manager Jonel Mathee says while many of these smaller managers are outperforming the larger rivals – in some case by some margin – large institutional investors simply overlook or cannot access these funds as their portfolios are simply too small, or due to liquidity or risk limitations.

Mathee says the Metropolitan Multi-manager Emerging Managers Equity Fund offers retail investors, including Fund-of-funds, with a single point cost-effective entry to niche fund managers.

“The rationale behind the fund is simple. Metropolitan Multi-Managers will be responsible for manager selection and fund allocation, whilst the selected specialist portfolio managers will be responsible for stock selection and sector allocation within their respective sub-portfolios. Metropolitan will conduct comprehensive due diligences on all selected portfolio managers and monitor them on a continuous basis,” says Mathee.

Mathee expects that this combination will result in lower volatility, risk and diversification.

The following underlying investment managers were appointed: 36One (20%), BlueBay (15%), Mazi Visio Capital (15%), Cannon (20%), Hermes (20%), Katzgold 5% and Valugro 5%. The benchmark is 50% JSE SWIX J403 index and 50% FTSE JSE J201 Midcap indices (being emerging managers the portfolio will focus more on mid caps than the average large manager).