AdvisorShares

AdvisorShares does not employ in-house portfolio managers for its ETFs. Instead, the firm enters into sub-advisory agreements with external asset management firms who are responsible for day-to-day portfolio construction. These sub-advisors are typically boutique investment boutiques or established hedge fund managers seeking to offer a daily-liquid, transparent ETF version of their core strategy.

Investment decisions are made entirely by the third-party sub-advisor assigned to each ETF. AdvisorShares serves as the investment advisor to the trust, overseeing compliance and operations, but the sub-advisor retains full discretionary authority for stock selection and portfolio allocation within the fund's stated mandate.

AdvisorShares is an asset manager organized as a Delaware statutory trust that issues exchange-traded funds. It has never functioned as a family office or private wealth manager. The firm generates revenue through advisory fees charged to the ETFs it sponsors, not through family wealth advisory services.

AdvisorShares participates exclusively in ETF issuance and management as a registered investment company sponsor. The firm does not make commitments to private funds as a limited partner, nor does it operate a fund-of-funds platform. Its sole business is creating and operating its own family of actively managed exchange-traded funds.

AdvisorShares enters into arm's-length sub-advisory agreements with unaffiliated third-party asset managers. The sub-advisors remain legally separate entities and often continue to operate their own separate accounts or private funds. Sub-advisors can and have terminated agreements to launch their own independent ETFs, as the relationship does not grant AdvisorShares exclusivity or ownership over the manager's strategy.