The act or practice of multiple money managers working on a single, particularly large portfolio. As with other forms of asset management, these managers make investment decisions on behalf of a client. Each manager has autonomy in the decisions he/she makes, which is intended to both foster a spirit of competition and allow individual investments to be more closely monitored. However, multiple management is not always conducive to coordination between the managers, a fact that may hinder the accomplishment of the client's investment goals. Multiple management is usually limited to institutional investors and high net-worth individuals, as it is usually expensive.
The apportionment of a large portfolio's assets among several managers. This process permits the managers more flexibility, allows for closer monitoring of investments, and creates a competitive atmosphere among the managers. The major disadvantages are higher cost and the potential lack of coordination in meeting the fund's overall investment goals.