Displaying items by tag: outsourcing

The SEC’s proposed rule requiring registered investment advisers to demonstrate a high standard of due diligence and oversight when selecting and retaining third-party providers for certain tasks, such as investment management, has not been finalized. Yet, it offers RIAs a glimpse into the future compliance landscape, one that many may not have anticipated.


RIAs may delegate investment management to external firms for various reasons, such as freeing time to focus on client relationships, improving portfolio quality, or reducing internal operational tasks.


And while the new rule may appear to be an additional burden, it has a silver lining. RIAs that meticulously select top-tier firms for outsourcing and transparently communicate their rigorous due diligence and oversight procedures to their clientele can use this as a demonstration to their clients of their high standard of care.


Even though all such firms will be held to these same standards, how an RIA firm communicates its process to its clients can be a differentiator. Rather than viewing this solely as a regulatory hurdle, RIAs can capitalize on compliance with the new rule as a means to strengthen client trust.

Finsum: Discover how the SEC's proposed “know your third-party” rule can be a unique opportunity for RIAs to enhance client trust.


Published in Wealth Management

Natixis Investment Managers conducted a survey with CoreData Research of more than 11,000 global investors in March and April of this year. It found that individuals invested in portfolios overseen by professional asset managers had less stress, were more trusting of advisors, and more financially confident. 


Overall, the survey revealed that only 11% of model portfolio investors were stressed, while 23% of non-model portfolio investors were stressed. Additionally, 45% of model portfolio investors were confident about their finances while only 24% of non-model portfolio investors were. 


The survey also revealed that 78% of model portfolio investors saw volatility as an opportunity. In contrast, only 47% of non-model portfolio investors felt the same. 70% of model portfolio investors felt that inflation meant it was time to invest more, in contrast to 40% of non-model portfolio investors. 


For advisors, it’s particularly relevant that 97% of model portfolio investors trusted their financial advisors when making decisions in contrast to 73% of non-model investors who said the same. 

However, only 51% of wealth managers and advisory practices in the US plan to offer third-party model portfolios. 


The survey also revealed that model portfolios free up time for advisors by outsourcing portfolio management. This means more time for client services, financial planning, and prospecting. 

Finsum: Natixis conducted a recent survey about model portfolios. Here are some of the major findings.


Published in Wealth Management

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