Efficient & Effective Client Investment Portfolio Management

Posted by Jonathan Shiffer, Chief Investment Officer on May 4, 2022 9:15:00 AM
Jonathan Shiffer, Chief Investment Officer

In-House vs. Outsourcing of Portfolio Management

When it comes to managing your clients’ portfolios, you can:

Hire an in-house professional. Hiring an in-house portfolio manager can provide more control over managing investments and allocations day-to-day, but it also requires a great deal of effort, time, and financial resources to find and keep the right professional.

Outsource portfolio management. Partnering with the right institutional asset management firm allows you to delegate portfolio construction, management, and ongoing maintenance activities to skilled professionals with years of proven experience.

Outsourcing portfolio-specific activities places those essential responsibilities in the hands of professionals dedicated full-time to that work, giving you the time and space to focus on what you do best – helping your clients reach their financial objectives.

For independent advisors, turnkey asset management platforms (TAMPs) in particular can expertly fulfill the need for the right outsource partner to provide the technology, processes, and staff to handle on your behalf the tens of thousands of tasks involved with successful portfolio management, from manager search and due diligence (initial and ongoing), establishing capital markets assumptions followed by asset allocation modeling, investment model design and creation, portfolio construction, performance reporting and communication, ongoing oversight and rebalancing, and much more. The right TAMP partner gets much closer to your business to ensure that executing portfolio management is done the way you want it done and to your clients appears seamless under your brand, advisor practice, and service delivery.

The right TAMP partner also offers you the ability to outsource as much or as little of the portfolio management workload. You may choose to fully outsource, or you may prefer to initially construct portfolios, set the rules, and then outsource the ongoing portfolio maintenance.

Portfolio Maintenance with Freedom Advisors

You know well that client portfolios are never designed to be static. Events occur from all directions that warrant changes. Investor objectives change due to a life event. Economies slide into recession. Interest rates fall and alternative sources of income are needed to meet client needs. Markets experience periods of volatility that can stress portfolios that are built to last through retirement. Securities and funds under- and over-perform, requiring a fresh look at current allocations.

Whatever the issue or influence is on the portfolio, you need to have the flexibility to make the adjustments you deem necessary, you need to be able to do that on a moment’s notice, and with seamless execution. We recognize the importance of this requirement and provides the platform to allow you to efficiently:

  • Monitor portfolio positions and performance
  • Rebalance on a scheduled basis or spontaneously
  • Schedule systematic investments and withdrawals
  • Manage individual and block reallocations and trades
  • Track and manage cash inflows and outflows

What This Means to You

Portfolio maintenance tools and staff are only useful when they allow you to efficiently execute the tasks you need to keep your clients’ portfolios optimized. The Freedom Advisors platform provides this efficiency so you can focus on the more critical aspects of your practice, like strengthening client relationships and prospecting for new clients.

Outsourcing: More Efficient than In-House

The decision to outsource some or all of the time-consuming and complex operational and administrative functions, investment due diligence, and portfolio construction and management to the right partner who knows you and your practice is the quickest and easiest way to scale your practice and free you to spend your time where you can have the greatest impact and make the biggest difference.

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Advisory services are offered through EQIS Capital Management, Inc. ("EQIS"), a registered investment adviser. EQIS does not provide tax or legal advice. This is intended for informational purposes only and should not be considered an offer to sell securities or provide investment advice. The representations and opinions herein are the opinions and view of EQIS and are believed to be reliable but are not guaranteed by EQIS nor its affiliates. Other sources may be available which contradict EQIS’s opinion, process, and methodology.

Topics: Advisor Support

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