Who's minding your money?
In this day of disclosure, why is it sometimes difficult to get the scoop on who's man-aging your fund? Simply put: because of the myriad management options employed by fund families.
When deciding who will manage one of their portfolios, fund families choose from a number of scenarios. According to Don Cassidy, senior research analyst at Lipper, these include using an advisor, typically within the fund family, to manage the fund; employing co-advisors, where two or more companies are paid to man-age different parts of the fund; using subadvisors, where the advisor pays a subcontractor to manage the fund; and using multiple subadvisors, where portfolio managers of various funds within a larger fund each manage their own assets.
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