Report of the Mutual Fund Directors Forum on effective oversight of subadvisers.

Many mutual funds choose sub-advisers for day–to-day portfolio management.  While sub-advisers frequently manage the assets of funds underlying variable annuities, other open-end funds employ them as well.  As of December 2008, 18 percent of open-end funds, representing eight percent of open-end fund assets were managed by sub- advisers.  In the variable annuity context, sub-advisers managed 45 percent of the underlying funds, representing 36 percent of variable annuity assets...