Thanks in large part to Vanguard, Wellington is the world's largest subadviser, with more than $178 billion worldwide managed on behalf of other managers on Dec. 31, according to a survey by Pensions & Investments.
Vanguard, in turn, is the world's largest managers of managers, with $175 billion worldwide passed to other asset managers.
That interrelationship - Wellington Management Co. LP, Boston, manages a whopping $109.4 billion in 13 funds for The Vanguard Group of Investment Cos., Malvern, Pa. - is characteristic of the growing segment of the investment management industry in which managers hire others to broaden their product offerings and to get best-of-breed investment performance.
As part of its annual money managers' directory (P&I, May 26), P&I asked money managers to detail how much they manage as subadvisers and how much they pass on to others through fund-of-funds and multimanager programs. The survey focused for the first time on managers' worldwide assets. (While the questions included worldwide assets, the universe for the May issue includes only those firms that manage U.S. institutional tax-exempt assets.)
Collectively, the top 50 subadvisers managed $796.4 billion as of Dec. 31. On the other side of the coin, the top 50 managers of managers passed a total of $966.5 billion worldwide to other money managers.
Wellington topped the list of subadvisers, but true to company policy, Lisa Finkel, director of marketing, declined to comment on the secret of Wellington's multibillion dollar success, preferring to "let our numbers and our clients speak for themselves."