diff --git a/gtk2_ardour/group_tabs.cc b/gtk2_ardour/group_tabs.cc
index a1aedc6c5b..df0ad20373 100644
--- a/gtk2_ardour/group_tabs.cc
+++ b/gtk2_ardour/group_tabs.cc
@@ -308,7 +308,9 @@ GroupTabs::get_menu (RouteGroup* g)
 	
 	if (g) {
 		items.push_back (MenuElem (_("Edit..."), sigc::bind (sigc::mem_fun (*this, &GroupTabs::edit_group), g)));
-		items.push_back (MenuElem (_("Subgroup"), sigc::bind (sigc::mem_fun (*this, &GroupTabs::subgroup), g)));
+		items.push_back (MenuElem (_("Subgroup using Direct Bus"), sigc::bind (sigc::mem_fun (*this, &GroupTabs::subgroup), g, false, PreFader)));
+		items.push_back (MenuElem (_("Subgroup using Aux Bus (pre-fader)"), sigc::bind (sigc::mem_fun (*this, &GroupTabs::subgroup), g, true, PreFader)));
+		items.push_back (MenuElem (_("Subgroup using Aux Bus (post-fader)"), sigc::bind (sigc::mem_fun (*this, &GroupTabs::subgroup), g, true, PostFader)));
 		items.push_back (MenuElem (_("Collect"), sigc::bind (sigc::mem_fun (*this, &GroupTabs::collect), g)));
 		items.push_back (MenuElem (_("Remove"), sigc::bind (sigc::mem_fun (*this, &GroupTabs::remove_group), g)));
 	}
@@ -424,9 +426,9 @@ GroupTabs::edit_group (RouteGroup* g)
 }
 
 void
-GroupTabs::subgroup (RouteGroup* g)
+GroupTabs::subgroup (RouteGroup* g, bool aux, Placement placement)
 {
-	g->make_subgroup ();
+	g->make_subgroup (aux, placement);
 }
 
 struct CollectSorter {
diff --git a/gtk2_ardour/group_tabs.h b/gtk2_ardour/group_tabs.h
index 22ebd808cc..da9523d50d 100644
--- a/gtk2_ardour/group_tabs.h
+++ b/gtk2_ardour/group_tabs.h
@@ -93,7 +93,7 @@ private:
 	void collect (ARDOUR::RouteGroup *);
 	void set_activation (ARDOUR::RouteGroup *, bool);
 	void edit_group (ARDOUR::RouteGroup *);
-	void subgroup (ARDOUR::RouteGroup *);
+	void subgroup (ARDOUR::RouteGroup *, bool, ARDOUR::Placement);
 	void activate_all ();
 	void disable_all ();
 	void remove_group (ARDOUR::RouteGroup *);
diff --git a/libs/ardour/ardour/route_group.h b/libs/ardour/ardour/route_group.h
index 7dbdc1d882..d5e4b274e1 100644
--- a/libs/ardour/ardour/route_group.h
+++ b/libs/ardour/ardour/route_group.h
@@ -135,7 +135,7 @@ class RouteGroup : public SessionObject
 		changed();
 	}
 
-	void make_subgroup ();
+	void make_subgroup (bool, Placement);
 	void destroy_subgroup ();
 
 	boost::shared_ptr<RouteList> route_list() { return routes; }
diff --git a/libs/ardour/route_group.cc b/libs/ardour/route_group.cc
index 629216da39..a9e942ef3a 100644
--- a/libs/ardour/route_group.cc
+++ b/libs/ardour/route_group.cc
@@ -387,7 +387,7 @@ RouteGroup::audio_track_group (set<boost::shared_ptr<AudioTrack> >& ats)
 }
 
 void
-RouteGroup::make_subgroup ()
+RouteGroup::make_subgroup (bool aux, Placement placement)
 {
 	RouteList rl;
 	uint32_t nin = 0;
@@ -407,7 +407,7 @@ RouteGroup::make_subgroup ()
 
 	try {
 		/* use master bus etc. to determine default nouts */
-		rl = _session.new_audio_route (false, nin, 2, 0, 1);
+		rl = _session.new_audio_route (aux, nin, 2, 0, 1);
 	} catch (...) {
 		return;
 	}
@@ -415,11 +415,18 @@ RouteGroup::make_subgroup ()
 	subgroup_bus = rl.front();
 	subgroup_bus->set_name (_name);
 
-	boost::shared_ptr<Bundle> bundle = subgroup_bus->input()->bundle ();
+	if (aux) {
 
-	for (RouteList::iterator i = routes->begin(); i != routes->end(); ++i) {
-		(*i)->output()->disconnect (this);
-		(*i)->output()->connect_ports_to_bundle (bundle, this);
+		_session.add_internal_sends (subgroup_bus, placement, routes);
+
+	} else {
+
+		boost::shared_ptr<Bundle> bundle = subgroup_bus->input()->bundle ();
+		
+		for (RouteList::iterator i = routes->begin(); i != routes->end(); ++i) {
+			(*i)->output()->disconnect (this);
+			(*i)->output()->connect_ports_to_bundle (bundle, this);
+		}
 	}
 }