Multi Manager investing was initially conceived by Russell Asset Consulting (RAC) in the USA. Russell Asset Consulting was founded in 1936 by Frank Russell who identified that clients/pension funds required help determining which investment managers were the best at managing pension investments.
Multi-management globally has expanded rapidly and now includes fund-of-funds and manager-of-managers portfolios in virtually every region. Multi-manager (along with hedge funds) has arguably been the fastest growing industry in investment management
The South African roots in multi–management go back to 1994, when Time Life Insurance was converted from a pure life insurance company into a multi-manager asset management company. The South African multi-management industry expanded rapidly, and at its peak, over 20 multi-managers were in operation. As the industry came to terms with the fact that running a successful multi-manager required scale and significant investment in skilled expertise, the SA industry consolidated into essentially four main players, of which Investment Solutions is the largest by both asset size and number of dedicated investment professionals.