This post was authored by Salvatore M. Capizzi, Dunham's Chief Sales & Marketing Officer. If you have questions concerning today's topic, please call us at (858) 964 - 0500. Hold us to a higher standard.

Dunham’s analysts hire institutional mangers to sub-advise the funds in its Advisory Asset Allocation Program for series 65 and series 66 Financial Advisors and in its C-Share Asset Allocation Program for series 6 and series 7 Financial Advisors.

These institutional mangers include names like Allianz, Rothschild, Mellon, and Arrowstreet. Dunham Analysts consider them particularly high performers for the asset class they manage. Generally, each of these institutional managers has a minimum investment that they require to consider taking on a new client.

In a strategies where both Dunham’s Core Equity and Core Fixed are used, your client would need $519 million to meet the minimums of all 13 institutional Sub-Advisers. Instead, by leveraging Dunham’s reach and total assets, they can invest with the very same managers for as little as $5,000.

In addition, keep in mind that Dunham is one of the only asset managers we are aware of who ties the institutional sub-adviser’s compensation to their performance. If the sub-adviser outperforms their benchmark, net of internal fees and expenses, they can make more. However, if they under-perform their benchmark, including internal fees and expense, they give up a substantial portion of their fee.

Dunham feels this level of accountability is not prevalent in the asset management industry.

To learn more about your client’s potential advantages with Dunham institutional sub-advisers, download our Sub-Adviser Advantage information sheet or contact a Dunham associate.

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