The Power of Outsourcing Investment Management

AssetMark (2019)

Financial advisors face increasing demands on their time from additional client expectations to administrative burdens. A potential way to gain capacity in a practice is through outsourcing. AssetMark, a provider of wealth management and technology solutions for financial advisors, partnered with 8 Acre Perspective to understand the impact of outsourcing investment management on financial advisors’ businesses.

A survey of more than 700 financial advisors uncovered:

  • Nearly all (98%) outsourcing advisors feel they have been able to deliver better investment solutions due to outsourcing.
  • Advisors saved an average of more than 8 hours per week when nearly all investment management tasks were outsourced.
  • Advisors who outsourced investment management reported experiencing stronger client relationships, higher retention, and increased client acquisition rates.
  • Advisors who outsourced attributed on average, 27% growth in total assets under management, 26% higher personal income, and 17% lower operating costs to outsourcing.

The research has been cited in Yahoo! Finance, ThinkAdvisor, and other news outlets.
Note: 8 Acre Perspective was operating as Q8 Research at the time of this study

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