Strength in numbers: How multi-manager investing works

When it comes to investing, no one has a crystal ball. Markets shift, economies change, and the businesses leading today may not be the leaders of tomorrow. That’s why many investors value a multi-manager approach. This strategy draws on the expertise of  different fund managers to build a more balanced, resilient portfolio.

What is multi-manager investing?

Multi-manager investing is an investment strategy where a single portfolio is managed by multiple fund managers, often from different firms and regions. Instead of relying on just one individual’s ideas, the portfolio benefits from a range of perspectives and approaches.

At Alliance Witan, for example, the trust typically selects 8 to 12 independent managers from around the world. Each is carefully chosen for their expertise, track record, and ability to contribute something distinctive to the portfolio.

Why have more managers?

The strength of the approach lies in combining different minds, styles, and strategies:

• Diversity of perspectives. One manager may focus on high-growth technology stocks, while another specialises in more defensive, income-generating businesses. Together, they capture opportunities across different parts of the market.
• Global expertise. Managers based in different regions bring local insights, spotting opportunities and risks that others might overlook.
• Balance and resilience. While one area of the market may struggle, another may thrive. Having multiple managers helps smooth returns and reduce reliance on any single strategy.
• Active management. The portfolio is actively managed and rebalanced, with the aim of beating the benchmark and potentially generating more returns for investors like you.

In short, more managers mean more ideas and more balance.

Who are our managers?

The multi-manager approach at Alliance Witan is overseen by WTW (Willis Towers Watson). Their role is to identify and appoint fund managers they believe will have the greatest positive impact on the portfolio.

The result is a carefully curated group of managers, each chosen for their complementary strengths. Some may specialise in growth investing, hunting for tomorrow’s winners. Others may take a more value-driven approach, identifying strong companies that are currently undervalued. Together, they create a blend designed to perform across different market conditions.

The pros and cons of multi-manager investing

Like any strategy, the multi-manager model has both strengths and trade-offs.

Advantages:

• Broader diversification across regions, sectors, and styles.
• Reduced reliance on the success of a single manager or idea.
• Access to specialist expertise from managers around the globe.
• A smoother investment journey, with less exposure to sharp swings from one concentrated style.

Disadvantages:

• Costs may be higher than relying on a single manager, as fees reflect multiple sources of expertise.
• Exceptional performance from one manager may be diluted when blended with others.
• The structure requires careful oversight to ensure managers complement each other rather than overlap.

That’s why the role of WTW is so important. Not only do they use their buying power to keep fees lower than most multi-manager funds, they also actively monitor the fund managers.  They make sure their styles are balanced, ensuring the overall portfolio continues to deliver for investors. Like a conductor for an orchestra.

The bottom line

Multi-manager investing rests on a simple principle: more minds mean more ideas, more balance, and greater resilience. Instead of betting everything on a single strategy, investors benefit from a carefully managed blend of different perspectives, all working together toward long-term growth.

At Alliance Witan, we believe this approach combines the best of both worlds: the depth of individual manager expertise, and the breadth of a globally diversified portfolio.

Issued by Towers Watson Investment Management Limited (TWIM), registered office Watson House, London Road, Reigate, Surrey RH2 9PQ. TWIM is authorised and regulated by the Financial Conduct Authority, firm reference number 446740. TWIM is the Alternative Investment Fund Manager (AIFM) for Alliance Witan PLC. TWIM is part of Willis Towers Watson.
Alliance Witan PLC is listed on the London Stock Exchange and is registered in Scotland No SC1731. Registered office, River Court, 5 West Victoria Dock Road, Dundee DD1 3JT. Alliance Witan PLC gives no financial or investment advice. © Copyright Alliance Witan PLC. Tel: 01382 938320.
 
This information is for informational purposes only and should not be considered investment advice. The views expressed are the opinion of TWIM and are not intended as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell any securities. The views expressed were current as of end July 2025 and are subject to change. Past performance is not indicative of future results. A company’s fundamentals or earnings growth is no guarantee that its share price will increase. You should not assume that any investment is or will be profitable. Information contained herein has been obtained from sources believed to be reliable but not guaranteed.