Five Signs It’s Time to Outsource Investment Management

As a trend, outsourcing investment management has grown dramatically in recent years, with assets managed by turnkey asset management programs swelling to $853 billion in 2022, up from $162 billion in 2010. 

There's a good reason for the consistent uptick. According to a Northern Trust study, 92% of clients had a positive reaction to outsourced investment management services, and 96% of advisors were satisfied with their decisions to outsource.

But is it the right move for you? 

Here are five clear signs it might be time to consider outsourcing:

1. Your growth is plateauing

When you're spending 15-20 hours a week on investment management tasks, something has to give. Usually, it's business development or client relationships. Research shows that advisors who outsource tend to have larger, more profitable firms than those who don't. Why? Because they have more time to prospect for and service clients, fostering both acquisition and retention.

2. You're passionate about relationships and planning, not portfolio management 

Remember why you became an advisor? As one industry expert notes, advisors generally fall into two categories: those who love the technical side of the business and those who thrive on client interaction. If you prefer client service to investment management, outsourcing could allow you to focus on what truly excites you.

3. Your investment process isn’t keeping pace with modern client needs 

Markets are becoming increasingly complex. Without a dedicated quantitative research team, it's challenging to deliver the sophisticated investment solutions today's clients expect. As regulatory pressures expand fiduciary responsibilities, more advisors are turning to outsourcing to ensure they're providing best-in-class investment management.

4. You're struggling to scale

Growing your practice requires systems that can scale. For practices undergoing business succession or institutionalization for a future sale, outsourcing professionalizes the investment function so it can persist independently from any single advisor's departure, while enhancing transferability and continuity.

5. Your tech costs are ballooning 

Between research tools, portfolio management software, and trading platforms, the technology stack needed for modern investment management is expensive. If you're spending more and more on tech but still feeling behind, outsourcing could actually be more cost-effective.

Consider a Different Approach to Outsourcing 

Rather than completely delegating investment management to a TAMP, you can partner with an Outsourced Chief Investment Officer (OCIO) that acts as an extension of your team.

Unlike a traditional TAMP, Helios provides institutional-grade quantitative capabilities while allowing you to maintain control of your client relationships and investment process. Think of it as adding a sophisticated investment department to your firm without the overhead, giving you:

• Access to advanced quantitative research and portfolio management capabilities
• The ability to scale your practice without sacrificing investment quality
• Cost savings compared to building an in-house investment team
• More time to focus on client relationships and business growth
• Ongoing support that grows with your practice

If you're seeing any of the five signs we mentioned in your practice, it might be time to explore how outsourcing could help you build a more sustainable and scalable business. Just make sure you choose a partner that aligns with your vision and values.

Want to learn more about how Helios can help you transform your investment management approach? Let's talk.