The multi-manager strategy would, on the surface, seem to have taken a knock from the market-timing scandal that hit the $7 trillion United States mutual funds industry. After all, with players such as Putnam Investment Management, Strong Capital, Alliance Capital, Janus Capital and Invesco striking settlements with the Securities Exchange Commission or Eliot Spitzer, New York State's attorney general, the multi-managers such as Russell, Northern Trust and SEI must have taken a hit.
Russell's Leonard Brennan, managing director in Tacoma, Washington, argues that although multi-managers did have exposures to these firms, the result should help their case for a diversified portfolio and the dangers of being too exposed to a single fund manager....
