AMERICAS MUTUAL FUNDS MARKET

AMERICAS: MARCH 2008 - The use of sub-advisers by US mutual funds is on the increase.

The use of sub-advisers by US mutual funds enables them to utilise knowledge and expertise in geographic areas and asset classes without the expense or time lapse involved in acquisition or building it in-house. This is despite the fact that the sub-adviser will receive approximately 50% of the management fee.

Lipper have reported that assets held in sub-advised funds in the United States increased to $641 bn in 2007 from $261 bn in 2002. Financial Research Corp. analysts forecast that over the next five years assets in sub-advised funds will grow at a...more