- Just over half (53 percent) of advisors outsource via turnkey asset management programs (TAMPs), and more than two-thirds (68 percent) say they partner with or outsource to multiple firms.
- 29 percent of respondents outsource all investment management activities, and 57 percent say they outsource just specific asset classes and strategies. Back-office operations, investment manager research, product selection and portfolio monitoring all are among activities that are being outsourced.
- Half of the respondents (48 percent) outsource more than half of their clients’ assets.
- Four out of 10 advisors say they outsource investment activities on all client accounts. Those who selectively outsource are likelier to outsource large accounts, new accounts and accounts employing alternative strategies or complex portfolios.
- The primary decision drivers for outsourcing have changed, with “access to alternative investment expertise,” “portfolio construction” and “portfolio monitoring” at the top of the 2014 list. In 2012, the top three reasons were: “access to asset allocation models,” “access to managers we could not access on our own,” and “potential to generate alpha through best investment ideas.”
Financial Advisors Report Positive Client Response To Investment Outsourcing
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