Since 1986, the Liberty All-Star® Funds have been bringing the benefits of multi-management to the individual investor. Multi-management is the strategic allocation of assets to multiple independent investment managers who have different investment styles. By employing a disciplined approach to selecting and monitoring investment managers to invest portions of the Funds' assets, the All-Star Funds seek to deliver a more consistent return over time than any single manager practicing one style of investment management can realistically be expected to achieve.
Multi-Management: A Time-Tested, Consistent Approach to Investment Management
Most mutual funds are run by a manager or team of managers that pursue a particular investment style. This approach works well when the manager's style is in favor. But styles go in and out of favor. What produces strong returns one year may produce disappointing results the next. Large institutions, on the other hand, traditionally rely on a multi-management approach to manage the more than $8 trillion they hold in their pension and endowment plans. By employing independent investment managers who practice different investment styles, these institutions seek to reduce the effects of market volatility while producing attractive returns.
The Liberty All-Star Funds' multi-management investment philosophy is based on:
- Adherence to stated investment objectives
- Comprehensive methodology for identifying and combining managers
- Objective and ongoing evaluation of the investment managers and, if necessary, manager replacement
- Emphasis on consistent performance and better-than-average long-term returns
- Disciplined, periodic rebalancing