Want More Time to Spend With Clients? Consider Using Third-Party Management
As a financial professional, you face many challenges today, including increased client expectations, changing regulations and fee compression. One solution that can help you save time and optimize your business is to outsource your asset management to third-party money management or TAMPS (Turnkey Asset Management Platform Solutions).
Finding the right investment option for your client can be a time-consuming process. While there are thousands of investment options to choose from, studies show most financial professionals tend to pick from a small handful of preferred fund companies. Over the last few years, the industry has been trending toward advice-led financial planning and away from traditional transactional portfolio management.
As a result, more and more financial professionals are turning to TAMPS to handle end-to-end portfolio management, monitor a portfolio’s performance and make changes as needed.
A third-party money manager can help enhance your investment offering by bringing in the right process and a goal-focused philosophy to manage your client investments. That's great news for you, and most important, your clients.
Financial professionals who have switched to TAMPS enjoy many benefits. These are just a few you could be missing out on:
Spend More Time with Clients
The average financial professional spends almost 40 percent of their time on administrative, operational and investment-related functions. If you’re seeing as many people as time allows, then there’s simply no room to increase volume.
But by freeing up time by using a TAMP, you’ll spend less time managing portfolios and enjoy more time to spend with your clients.
Fiduciary requirements
Fiduciary requirements — including documentation, due diligence, transparency, and audit trails — can be provided by the TAMP. No matter what the future holds, one thing is certain, more financial industry regulation is on the way. Moving to third-party management could make complying with future regulations easier, potentially lower costs and even boost profit margins.
Day-to-day management
The purpose of the TAMP is to handle the process of managing a portfolio – making it as turnkey as possible – from selecting the initial stocks, ETF’s or mutual funds to monitoring the portfolio and making investment changes as needed. As a result, the TAMP structure allows you to have consistently managed portfolios and refocus efforts that would have gone toward managing investments to better servicing clients (or finding new ones).
Bottom line, the combination of greater client alignment, more time, more revenue and more value are all tangible benefits you could see from turning to third-party management.
If you haven’t switched to third-party management, it may be time to consider the move. Contact Iron Point today for a no-obligation coaching call to learn more ways you can accomplish your business goals.