Best practices for multiple sub-adviser mutual funds
Operational and compliance best practices for mutual fund portfolios with multiple sub-advisers
Combining multiple sub-advisers within a single mutual fund creates numerous complexities for investment managers who seek to generate maximum value, efficiency and controls with this fund structure. Success requires careful planning and strict adherence to compliance requirements, operational processes and communications practices. Otherwise, the sub-adviser model can exacerbate compliance and processing risks and impede the fund’s performance.
The linked whitepaper presents a number of best practices for robust operational and compliance procedures for funds with multiple sub-advisers — both at the fund’s inception and throughout its lifetime. It covers the following topics:
- Adviser responsibilities in a sub-advised mutual fund
- Mutual fund sub-adviser responsibilities
- Best practices for onboarding and transitioning sub-advisers to mutual funds
- Mutual fund compliance testing best practices
- Portfolio allocation and cash management best practices
- Fund CCO and board best practices in sub-advised mutual funds.
Applying the concepts presented in this whitepaper can help minimize processing and compliance complications and ensure stability within the fund. Draw from this experience-tested information to improve efficiency and reduce operational, financial and reputational risks for all parties.
Click here to learn about the mutual fund solutions we offer.
©2018 U.S. Bank. Member FDIC.
U.S. Bank does not guarantee the products, services, or performance of its affiliates and third-party providers.
Investment and Insurance products and services including annuities are:
Not a Deposit ● Not FDIC Insured ● May Lose Value ● Not Bank Guaranteed ● Not Insured by any Federal Government Agency
U.S. Wealth Management – U.S. Bank and U.S. Bancorp Investments is the marketing logo for U.S. Bank and its affiliate U.S. Bancorp Investments.
The information provided represents the opinion of U.S. Bank and U.S. Bancorp Investments and is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide specific investment advice and should not be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation.
U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
For U.S. Bank:
Equal Housing Lender.
Deposit products are offered by U.S. Bank National Association. Member FDIC. Mortgage, home equity and credit products offered by U.S. Bank National Association. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice.
U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.
For U.S. Bancorp Investments:
Investment and insurance products and services including annuities are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.
U.S. Bancorp Investments is registered with the Securities and Exchange Commission as both a broker-dealer and an investment adviser. To understand how brokerage and investment advisory services and fees differ, the Client Relationship Summary and Regulation Best Interest Disclosure are available for you to review.
Insurance products are available through various affiliated non-bank insurance agencies, which are U.S. Bancorp subsidiaries. Products may not be available in all states. CA Insurance License #OE24641.
Pursuant to the Securities Exchange Act of 1934, U.S. Bancorp Investments must provide clients with certain financial information. The U.S. Bancorp Investments Statement of Financial Condition is available for you to review, print and download.
The Financial Industry Regulatory Authority (FINRA) Rule 2267 provides for BrokerCheck to allow investors to learn about the professional background, business practices, and conduct of FINRA member firms or their brokers. To request such information, contact FINRA toll-free at 1.800.289.9999 or via https://brokercheck.finra.org. An investor brochure describing BrokerCheck is also available through FINRA.
U.S. Bancorp Investments Order Processing Information.
© 2022 U.S. Bancorp
