What Is a Sub-Advised Fund?

A sub-advised fund is an investment fund that is managed by another management team or firm than where the assets are held. A sub-advised fundꦺ may consist of specialty or niche investments that the main fund portfolio managers seek outside expertise for.

Understanding Sub-Advised Funds

Sub-advised funds can be found across a range of strategies in the investable market. They are the product of relationships formed across the 澳洲幸运5开奖号码历史查询:investment management business. They allow an investment ma💫nager to contract with other investment managers to offer funds with specific investment objectives.

Sub-advisory relationships allow for one alternative in launching new funds for investors. In some cases, investment managers can launch 澳洲幸运5开奖号码历史查询:new fund offerings more efficiently with lower costs and better operational processing thr🍃ough a sub-advi🧔sory relationship. Many investment managers partner with sub-advisors for lower costs and broader fund offering diversification.

Some of the investment market’s largest and most experienced investment managers bui🐈ld a sub-advisory platform that allows them greater access to sub-advisory relationships in the market. Wellington Asset Management and State Street Global Advisors are two investment managers th📖at actively seek to offer their services through sub-advisory relationships.

Sub-advisory 澳洲幸运5开奖号码历史查询:fee structure agreements vary across the investment market. Fees for sub-advised funds are typically higher due to the multi-layered relationships involved with offering a sub-advised fund. In general, investors should more closely examine the fee structures of sub-advised funds because they are often higher and more complex than traditional fund offerin⛎gs.

Despite potentially higher fees, other aspects of a sub-advised fund can be advantageous for investors. Specifically, sub-advised funds are typically managed by 澳洲幸运5开奖号码历史查询:fund managers with in-depth experience and expertise in managing a certain strategy. Fund managers fo🌠r sub-advised funds are often sought out for thei🤪r strategy expertise, offering investors the best strategy option in the market.

Sub-Advised Fund Investments

澳洲幸运5开奖号码历史查询:Sub-advisory relationships span across the entire investment universe. Any type of fund can be sub-advised. Mutual funds and variable annuities are some of the most common sub-advised offerings. In a 2016 report from Pensions & Investments, Wellington is identified as the investment industry’s largest sub-advisor by assets with $499.1 billion in sub-advised assets under management.

Wellington has a well-established sub-advisory relationship with Hartford Funds and serves as a sub-advisor for the firm. The Hartford International Equity Fund is one fund sub-advised by Wellington. The Fund seeks long-term capital ಞappreciation through investment in international equities. The Fund offers four share classes: A, F, I, and Y. Expenses vary for each of the share classes with the gross expense ratio ranging fr𝓀om 1.89% to 1.40%.