Advisors say outsourcing leads to better investment solutions and work/life balance, AssetMark study finds
14 März 2022 - 3:00PM
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.
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.”
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.”
More information on this study can be found in AssetMark’s
whitepaper, The Impact of Outsourcing.
MethodologyThe Impact of Outsourcing study was
conducted in partnership with 8 Acre Perspective, an independent
research firm, and represents the second installment of original
research conducted by AssetMark in 2019.
More than 750 financial advisors participated in the study,
completing an online survey between September and October 2021.
Participants included 581 advisors who outsource investment
management and 176 who do not. All participating advisors are
owners/principals/partners at firms in the independent
broker-dealer, insurance, and independent RIA channels.
All participants have the following characteristics:
- 7+ years tenure as a financial advisor
- Up to $500 million in total assets under management
- At least 30% of total assets is fee-based business
- At least 50% of total assets under management is from
individual retail investors
Those who outsource investment management have at least 20% of
their assets outsourced to a third party (broker-dealer, model
provider, and/or TAMP).
About AssetMark Financial Holdings, Inc.
AssetMark is a leading provider of extensive wealth management and
technology solutions that power independent financial advisors and
their clients. Through AssetMark, Inc., its investment advisor
subsidiary registered with the Securities and Exchange Commission,
AssetMark operates a platform that comprises fully integrated
technology, personalized and scalable service and curated
investment platform solutions designed to make a difference in the
lives of advisors and their clients. AssetMark had $93.5 billion in
platform assets as of December 31, 2021 and has a history of
innovation spanning more than 20 years.
SOURCE: AssetMark, Inc.
Media Contact:Alaina KleinmanDirector,
Communications & Public Relations, AssetMark,
Inc.alaina.kleinman@assetmark.com
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