A sub-advisory fund is an investment fund managed by a management team or other company than when the assets are held. A sub-advisory fund may consist of specialized or niche facilities for which major fund portfolio managers require external expertise. Sub-advisory relationships provide an alternative for the creation of new funds for investors. In some cases, investment managers can offer new fund offerings more efficiently, with lower costs and better operational management through a sub-advisory relationship. Many investment managers work with sub-advisors to reduce costs and offer broader diversification of the fund. Sub-advisory fee structural agreements vary according to the investment market. Sub-advisory fees are generally higher due to the complex relationships associated with offering a sub-advisory fund. In general, investors should take a closer look at the pricing structures of sub-advisory funds, which are often higher and more complex than traditional fund offerings. Sub-advisory funds can be found through a number of strategies in the investment market.
They are the product of relationships that are formed throughout the investment management business. They allow an investment manager to conclude contracts with other investment managers to offer funds with specific investment objectives. Sub-advisory relationships cover the entire investment universe. Any type of fund can be sub-sponsored. Investment funds and variable annuities are some of the most frequently underrated offerings. Some of the largest and most experienced investment managers in the investment market are setting up a sub-advisory platform allowing them to gain greater access to sub-advisory relationships in the market. Wellington Asset Management and State Street Global Advisors are two investment managers who actively strive to offer their services through sub-advisory relationships. Wellington has a well-established sub-advisory relationship with Hartford Funds and acts as a sub-advisor to the company.
The Hartford International Equity Fund is a Wellington advisory fund. The Fund aims for a long-term capital increase by investing in international equities. . . .