The overseas market for fund firms looking to strike subadvisory deals is set to grow as a number of countries enjoy a boom in their fund business. Mike Raso, analyst at Financial Research Corp., said Canada, Japan and Australia are three examples of countries that will have high demand for new subadvisory deals in 2007.

Raso said fund firms have an opportunity to market their investment management expertise in other countries. He said a key to overseas success is to form alliances with large distributors in the country. The subadvisory market in 2006 saw 151 new mandates and $60 billion in takeover assets.