] just dropped a sub-advisor from three of its mutual funds while adding a different sub-advisor to a fourth.
On Friday the Oaks, Pennsylvania-based firm filed to remove San Francisco-based Wells Capital Management
as a sub-advisor to its Small/Mid Cap Equity
and Tax-Managed Small Cap
funds, while also adding Charlotte, North Carolina-based West End Advisors
as a sub-advisor to the Tax-Managed Large-Cap Fund
[see filings here
An SEI spokesperson was not immediately able to comment on the moves. A spokeswoman for Wells (part of the banking giant Wells Fargo) declined to comment for this story. The filings offered no specific motivation for the moves.
Pharr, who joined the $1.8-billion, three-star Tax-Managed Large-Cap Fund
as a PM, confirmed that this is not West End's first sub-advisory deal with SEI.
"We have a sleeve in a number of different funds that SEI has," Pharr told The MFWire
According to Pharr, West End worked with about $2.4 billion at the end of the first quarter, about 55 percent in institutional assets and 45 percent in broker-dealer wrap programs. And Pharr and Mike Goldman
, another partner, insist that West End is on the prowl for more mutual fund sub-advisory work.
"We think that we're a good fit," Pharr said, describing West's "different approach" to U.S. domestic large-cap management. "We start with a macroeconomic view that leads us to sectors and individual stocks within those sectors."
That, Goldman explained, leads to returns that have a low correlation "to other managers [large cap and otherwise] and the broad market as a whole, which is very unique for a large-to-mega-cap manager."
The Tax-Managed Small Cap Fund
holds $343.8 million and has three stars from Morningstar
. And the Mid-Cap Fund
has $161.1 million and three stars.
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