Five-star rating: FNB Multi Manager Equity Fund proves its value as a part of any well-diversified portfolio

Renzi Thirumalai

Carla de Waal

The primary objective of any equity focused investment fund should be to deliver above-average growth for investors over time. But as any equity investor knows, targeting high returns inevitably involves higher levels of risk than one would be exposed to with more conservative asset classes.

And higher risk and volatility levels can make for an uncomfortable investment experience, even for the most experienced of investors.

A proven track record of effective risk adjusted returns over time recently earned the FNB Multi Manager Equity Fund (L-class) a five-star rating from the highly respected global investment research provider, Morningstar.

“The FNB Multi Manager Equity Fund has a stated aim of providing investors with above-average growth over the medium- to long term, by investing primarily in equities, but it focuses on doing so in a way that consistently balances risk and return to ensure that investors are not faced with the need to make difficult, emotionally based investment decisions in response to uncomfortable levels of volatility,” says Renzi Thirumalai, Head of Investments at FNB Wealth and Investments.

He adds that, “this is precisely the reason why any equity investment fund worth its salt need to not only focus on the ultimate destination it targets for investors, but also on the journey it takes them on to reach that destination. The established track record of the FNB Multi Manager Equity Fund exemplifies the value of such a dual commitment”.

Thirumalai explains that “the five-star rating from Morningstar stands as strong validation of the effectiveness of the FNB Multi Management approach, which combines active asset allocation with the careful selection and management of highly complementary fund managers.”

“The five-star rating places the offering in the top 10% of similar funds evaluated by Morningstar in terms of risk-adjusted performance over three years,” he points out.

Carla de Waal, head of multi management and manager selection at FNB, added that the FNB Multi Manager Equity Fund provides a well-constructed exposure to six underlying managers following different yet complementary investment styles. The L-class is accessible through FNB Investor Services (Pty) Ltd (FNB’s LISP). De Waal also emphasises that the Morningstar rating is for a period of time that fell mainly within the Covid-19 pandemic, with its concomitant impacts on investment markets and funds the world over. “Our multi-management investment philosophy is built on the solid foundations we have established over the years in terms of our ability to choose the finest fund managers, blend them together in weightings aimed at best meeting the expectations of our investors, and leverage their expertise to give effect to our active management approach,” she explains, “and this makes our multi managed fund range, including the FNB Multi Manager Equity Fund, an invaluable tool that investors can leverage to build a well-diversified, resilient and successful portfolio that can stand firm in the face of any market challenge and minimise any fear-based, short-term actions that could have negative long-term consequences.”