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In the latest issue of multi-manager guide Blending Talents, Fraser Donaldson, principal consultant for investments, and Christopher Jones-Warner, consultant, said there had been very little product activity or manager hiring over the last quarter.

The authors said this had followed "an unprecedented level of change in terms of manager moves and the launching of new multi-manager propositions during 2007". They attributed the drop in activity to the current economic uncertainty.

"Fund management companies will be reluctant to embark on any significant capital expenditure with the possibility of a recession looming and likely pressure on new business and possible drop in funds under management," they said.

"It would be a big gamble to set up any new operations, or revamp any existing ones with high-profile and expensive appointments in any investment arena at this point in the cycle."

But they said investors may welcome the shift after the many industry shake-ups of the last two years.

"While it is understandable that fund management companies have been positioning themselves in this very successful market, it has resulted in some uncertainty among clients and advisers. Perhaps multi-manager funds can be selected with some confidence that the fund managers are likely to stay put for the foreseeable future," they said.