Sub-Advised Fund

AAA

DEFINITION of '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 EXPLAINS 'Sub-Advised Fund'

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
  1. Wrap Account

    An account in which a brokerage manages an investor's portfolio ...
  2. Variable Annuity

    An insurance contract in which, at the end of the accumulation ...
  3. Hedge Fund

    An aggressively managed portfolio of investments that uses advanced ...
  4. Fund Manager

    The person(s) resposible for implementing a fund's investing ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. No-Load Fund

    A mutual fund in which shares are sold without a commission or ...
Related Articles
  1. A Brief History Of The Hedge Fund
    Options & Futures

    A Brief History Of The Hedge Fund

  2. A Brief History Of The Mutual Fund
    Retirement

    A Brief History Of The Mutual Fund

  3. A Look At The Most Popular Bitcoin Exchanges
    Investing Basics

    A Look At The Most Popular Bitcoin Exchanges

  4. What is the minimum amount of money ...
    Retirement

    What is the minimum amount of money ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center