The mutual fund sub-advisory business in Canada, which currently accounts for nearly $200 billion in assets, is under pressure on multiple fronts. Fee compression and the push by fund manufacturers to become more vertically-integrated by moving asset management in-house are two key trends affecting virtually all firms operating in the segment.
The February issue of Insight examines the state of the mutual fund sub-advisory business in Canada and discusses the key trends, challenges and opportunities impacting both sub-advisors and the mutual fund managers who use sub-advisors. This research article includes material covering many aspects of the sector, including the growth of sub-advised assets; the most sub-advised asset classes; users of sub-advisors; and the management expense ratios (MERs) of sub-advised funds.
The Trendlines article at the end of the report places January 2016 flow results in the historical context. Last month marked the first net redemption result for the Canadian mutual fund industry in more than 50 consecutive months.