Managers are chosen for their specific expertise. Using this approach provides multiple benefits:


Employing multiple money managers allows for diversification not only across asset classes but also across investment styles and strategies. Each manager may have a unique approach to investing, which can help mitigate risk and improve overall portfolio performance.

Specialized Expertise

Different money managers may specialize in various sectors, regions, or investment strategies. By leveraging the expertise of multiple managers, investors can access specialized knowledge and potentially capitalize on market inefficiencies or opportunities that may not be apparent to a single manager.

Risk Management

Systematic rebalancing involves periodically realigning the portfolio back to its target asset allocation. This process helps maintain risk levels within desired parameters and prevents the portfolio from becoming overly concentrated in certain asset classes that may become overvalued or underperforming.

Enhanced Returns

Systematic rebalancing can also enhance returns by systematically buying low and selling high. When certain asset classes underperform and fall below their target allocations, rebalancing involves selling relatively higher-performing assets and buying more of the underperforming assets, potentially capturing gains over the long term.

Tax Efficiency

Tax management strategies aim to minimize the impact of taxes on investment returns. By strategically locating assets in taxable or tax-advantaged accounts and employing tax-loss harvesting techniques, investors can reduce their tax liabilities and maximize after-tax returns.

Customization and Flexibility

Using multiple money managers allows investors to tailor their portfolios to their specific investment objectives, risk tolerance, and time horizon. It also provides the flexibility to make adjustments as market conditions change or as the investor's financial situation evolves.

Reduced Manager Risk

By diversifying across multiple money managers, investors can mitigate the risk associated with individual manager performance or unforeseen events that may impact a single manager’s ability to deliver returns.

Alignment with Investor Preferences

Employing multiple money managers, systematic rebalancing, and tax management strategies can align with investors’ preferences for active management, risk management, and tax optimization, providing a more personalized investment approach.

Overall, integrating multiple money managers, systematic rebalancing, and tax management into an investment portfolio can help investors achieve their financial goals while managing risk, enhancing returns, and minimizing taxes. However, it’s crucial to carefully consider the costs, complexity, and potential trade-offs associated with these strategies and to work with a qualified financial advisor to implement them effectively.

Skip to content