According to a survey conducted by Schroder Investment Solutions, more financial advisors are outsourcing investment management to model portfolio services. The survey, which was conducted in May, suggested that the shift towards third-party portfolio management is continuing, with 17% of advisers stating that they have increased their use of outsourced solutions over the past twelve months. The number of advisers that reported outsourcing more than half of their client’s assets had risen from 21% in November to 31% in May. The factors influencing advisor outsourcing include, in order, access to investment expertise and resources, effective volatility management, spending more time with clients, and improved operational effectiveness. For some advisors, investment expertise in sustainable investing has led to outsourcing. Volatility management as a factor reflects an emphasis that advisors have placed on active management during the current market turmoil.
Finsum:Based on the results of a recent survey, more advisors are outsourcing investment management to third-party model portfolio providers due to their investment expertise and volatility management.
- model portfolios
- advisor
- client management
- portfolio management
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