It is nothing but class of financial intermediary that hires professional investment managers to oversee aspects of a client's investment fund. More particularly, the MOM tracks the performance of each investment manager and has the power to fire ineffective managers and then take into service replacements on a client's behalf. Using a MOM to grip investments funds is an alternative to hiring a single investment portfolio manager that makes all the asset management decisions.
For illustration, suppose that a teacher's union hires a MOM to invest in its pension fund. The MOM then hires a number of investment managers, for instance a bond expert, a money market expert and a large-cap stock expert; each has the responsibility of managing the particular asset class in which he or she specializes.
For the reason that no single manager is an expert at investing in all asset classes, using a MOM allows clients to have an expert asset manager working on each characteristic of an investment at all times.