Role of investment adviser and sub-adviser

Combining the investment expertise of an investment adviser and sub-adviser can provide a dual layer of knowledge, expertise and oversight that can benefit a fund’s investors.

Role of investment adviser and sub-adviser

Combining the investment expertise of an investment adviser and sub-adviser can provide a dual layer of knowledge, expertise and oversight that can benefit a fund’s investors.

Investment adviser

An investment adviser, or “fund manager,” is typically responsible for overseeing the fund’s daily operations and managing the fund’s assets while adhering to the fund’s investment objectives. The investment adviser may hire one or more sub-advisers to assist in the management of the fund and otherwise gain access to a particular area of expertise or augment and enhance its investment capabilities.

The investment adviser’s primary role is to:

  • Determine a fund’s investment objective, strategy and policies
  • Make all final investment decisions
  • Evaluate, select and recommend sub-advisers
  • Monitor and oversee the performance and investment activity of the fund and sub-adviser
  • Advise and consult with the board of directors of the fund on matters relating to the fund

Investment
sub-adviser

A sub-adviser is an asset management firm hired by an investment adviser to help identify, evaluate and manage investments within a portfolio. Sub-advisers are typically selected based on their investment style, expertise and track record in a specific investment strategy.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

Search our site