Advisors Say Outsourcing Leads to Better Investment Solutions and Work/Life Balance, Assetmark Study Finds

• AssetMark found that 92% of advisors who outsource investment management were happy with their decision

Among advisors who outsource investment management, 92% said they are happy with their decision, up from 83% in 2019, according to a new study from leading wealth management platform AssetMark.

AssetMark’s Impact of Outsourcing Study polled more than 750 financial advisors to uncover the biggest challenges advisors face, and how investment management outsourcing can help them address these issues and drive meaningful change in their businesses.

HR Technology News: Stem Appoints Chief People Officer to Lead Global Human Resource Initiatives

According to the study, the most common challenges advisors face today are scaling their business for growth and spending the time needed on business-building activities such as financial planning with clients, practice management, and new business development. Thus, it’s not surprising that the ability to serve more clients and focus time on other business activities are two of the top reasons advisors say they are motivated to outsource investment management.

“To achieve scale and growth, advisors need to prioritize their limited time on activities that drive the most value. Investment management can be very time-consuming and doesn’t generate the same value as spending time on clients and business development,” said Matt Matrisian, Chief Channel Officer at AssetMark. “The study found that, on average, advisors who outsource report they save more than seven hours per week that they can repurpose toward other priorities, with the confidence that their clients’ assets are being expertly managed.”

HR Technology News: Wrike Powers Creative Workflows End-To-End With Cloud Content Connector

The survey findings underscore how outsourcing drives client, personal, and business benefits to financial advisors:

• Ninety-eight percent said that outsourcing allows them to deliver better investment solutions.
• Ninety-five percent of respondents affirm they have a better work-life balance due to outsourcing.
• Ninety-one percent have achieved accelerated growth in total assets as a result of outsourcing.

Among advisors who don’t outsource, top reasons for not doing so are concern over higher fees (65%), concern about loss of control (48%), and the perceived inability to customize solutions for unique customer situations (43%).

“It’s a strategic decision to outsource and advisors need to weigh the pros and cons for their unique practices,” said Matrisian. “Our experience has demonstrated that outsourcing drives transformational value for advisors by providing them with solutions that give them choice, flexibility, and autonomy.”

HR Technology News: Insurance Applications Group, Inc.’s Essential StaffCARE Wins ClearlyRated Best of Insurance Award for Superior Client Service