Insight May 2010 Monthly Update

In the highly competitive sub-advisory business,the focus has shifted to building stronger partnerships. While vertical integration is always a threat,there appears to be considerable commitment to sub-advisory among fund companies,stemming from a growing acceptance of coexistence. In the current issue of Insight,we address the opportunities and challenges for sub-advisors and their users,the themes of diversification and product development,and cost control in an environment of margin compression. Further topics of discussion surround vertical integration,the increasingly sophisticated selection processes and criteria of fund companies,the economics of the business,the vital issue of performance,and the growing diversity of the asset class concentration of sub-advisory business.