Sub-Advised Fund
An atypical fund structure in which a fund, such as a hedge fund or mutual fund, is managed by another management team or firm than where the assets are held. Sub-advised funds are often found in wrap programs or variable annuities. Investopedia Says:
Sub-advised funds are often smaller versions of larger mutual funds and hold the same stock proportions as the larger mutual fund. Because there are two management companies being paid, sub-advised funds can often have layered fees, so these funds should be examined closely before deciding to invest. Related Terms:
Fund Manager
Hedge Fund
Load
Mutual Fund
No-Load Fund
Variable Annuity
Wrap Account |