- Proprietary funds at distributors (used only in affiliated advisory programs) are the largest growth area of sub-advisory opportunities
- Most of these funds are multi-managed, so prospective sub-advisors don’t have a conflict with offering a clone of an existing fund
- Bridge Builder just filed for a tax-managed suite of sub-advised funds, and other distributor fund families may follow, which would further increase sub-advisory opportunities
- SEI already offers sub-advised tax-managed funds
Summary of Distributor Sub-Advised Funds
Note: Includes only active funds. Figures include only unaffiliated mandates.
Source: FUSE Research Network, Morningstar