Time for a change?

Do you find yourself wearing too many hats? Financial planner, investment manager, tax expert – the list goes on. It’s no wonder that some advisers are feeling stretched as the demands on their time and resources continue to grow.

In addition, we know pensions freedom has led to soaring client volumes and increasingly complex advice needs. Just look at the contentious debate around defined benefit to defined contribution pension transfers. Then there’s the requirement for greater transparency, compliance and reporting in this post-MiFID II world.

One way to alleviate some of the strain might be to change your business model and consider outsourcing your day-to-day investment management. So, what are the benefits?

Crucially, outsourcing can help de-risk your business. Shifting the responsibility of constructing portfolios, selecting investments and rebalancing to an investment manager can significantly reduce your liabilities.

This point is particularly pertinent in light of pensions freedom. More of your clients are likely to stay invested during retirement, which brings new investment challenges. Do you have the time and proficiency to tackle complex issues like ‘ruin age’, ‘pound-cost ravaging’ and sequencing of returns? Given clients’ greater propensity towards income drawdown during retirement, more of them will need long-term servicing too. This involves substantial admin that outsourcing could help reduce.

Cost savings are a further incentive to outsource. You won’t need to maintain expensive systems or back-office staff in-house. You can also subcontract the cost involved in research and portfolio construction.

“Outsourcing can help free up your time and resources, allowing you fully focus on your clients’ advice and financial planning needs.”

Outsourcing could provide your clients with access to greater investment expertise too. Most investment managers will have huge resources behind them – global research teams, fund selection specialists and stock-picking experts. This could provide greater potential for investment performance.

Today’s clients are more likely to need a much broader investment opportunity set to achieve their financial goals. This might include multi-asset or enhanced-diversification strategies. Values-based investing is another growing consideration. You might struggle to replicate such strategies in-house. However, you can access them relatively easily through an experienced and well-resourced investment manager.

Ultimately, outsourcing can help free up your time and resources. This means you can get back to fully focusing on your clients’ advice and financial planning needs without distraction.


The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested.

The views and conclusions expressed in this communication are for general interest only and should not be taken as investment advice or as an invitation to purchase or sell any specific security.

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Risk warning

Risk Warning

The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested.