Mutual Fund Subadvisor

It's bringing in a ringer for your mutual fund. Like those spy movies, where they recruit the rogue hacker to break into North Korea's security system...or like a big-name guest star who comes on a TV show for a few episodes to create some buzz.

You run a fund company. You feel a particular fund needs a little help. So you go outside your employee base to bring in a third-party expert (likely a group with a particular specialty, like...how to navigate Silicon Valley) to run the fund. That person represents a mutual fund subadvisor.

And note that mutual funds comprise a few different levels or areas of focus: The people who raise the money, i.e. the fund brokers, put that money into one pot with a captive board of directors. That board then hires an advisor to the fund, i.e. the people who actually run the fund, making buy and sell decisions on its investments. The sub-advisor then comes after that broader portfolio manager set.

Many dials to be turned to make your 1%.