Outsourcing Portfolio Management—A Partner, Not a Product

Advice to the Advisors

Sheaff Brock RIA partner investment business performance and growth

Outsourcing Portfolio Management—A Partner, Not a Product

As a Registered Investment Advisor, you’re dedicated to growing and preserving your clients’ wealth, helping them protect their families, and define their goals. Simultaneously, of course, you’re dealing with all the nuances of running a business and of meaningfully participating in your community. As Tevye observed in Fiddler on the Roof, “It isn’t easy…”

In many areas of life, even people accomplished in their fields leverage the additional knowledge and skills of others—as valued coaches, consultants, and advisors. At Sheaff Brock, we see our role as partnering in an advisory or sub-advisory capacity in wealth management. Based on our experience in working with a variety of RIAs, the more a practice grows, the greater the likelihood that advisor will encounter client situations that call for specialized portfolio constructs and techniques. In those situations, outsourcing a certain portion of the client’s portfolio may begin to make sense.

“Like many professional service providers, successful advisors know their limits. From experience, they gain awareness of what they do well and what tasks or skills they prefer to avoid,” observes Investor’s Business Daily. In an interview with that publication, California certified financial planner Catherine Hawley explains that she developed a matrix of business functions in deciding what duties to outsource:

  • What you’re good at and like to do
  • What you’re good at but don’t like to do
  • What you’re not good at but like to do
  • What you’re not good at and don’t like to do

While Hawley outsources only tasks that fall into the last category, (you’re not good at that and don’t like doing it), at Sheaff Brock we acknowledge that while many RIAs DO, in fact, have expertise—and enjoy—involvement in many areas, they may not be as well-versed in others.

We would like to fill in that gap, letting the advisors do what they do best in their businesses. If you are an advisor with an orientation towards growth and are looking for additional resources or to diversify, Sheaff Brock can help. We know outsourcing and we know growth. In fact, outsourcing has been important to our own growth from $60 million to $1 billion. We know that what you may need is a partner, not a product.

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