Growth of assets in subadvised mutual funds has outstripped that of internally managed funds in the five years ended Dec. 31, according to new data from Financial Research. Subadvised funds grew by 19.5% over the five-year period, compared with 10.8% for internally managed funds.
FRC fund researchers expect subadvised fund assets to grow to $683 billion by the end of 2005, up from $450 billion at year-end 2001. If the projection is correct, $1 of every $8 invested in long-term mutual funds will be managed by a subadviser, up from $1 in every $10 as of last Dec. 31. FRC projects that subadvised assets will total $486 billion by the end of this year.
While net flow into stock funds overall slowed during poor market conditions in 2001, subadvised funds continued to grow, attracting 25% of all net flows into long-term domestic and international mutual funds.
