Some companies succeed and some don’t. For every success story, there are dozens if not hundreds of companies that don’t make it. While a number of factors come together to influence why one company is successful and another isn’t, one of the most critical decisions each firm makes is who to hire. Finding the right employees is key for the long-term success of every firm.
The decision-making process is heightened in certain occupations. Finding the right employee in a more specialized field, such as wealth management and portfolio oversight, makes the decision all the more important.
Many firms across a variety of industries have begun to outsource some of the work their company performs. While outsourcing was once limited to the less than ideal prospect of shipping customer service overseas, it no longer has such a negative association, and can involve nearly any position in a company.
In today’s post, we will look at why advisors should consider outsourcing the CIO role in their firm, and how Sawtooth can bring a specialized expert into the equation.
Why should advisors outsource their CIO role?
To begin with, let’s start by asking a simple question. Why should advisors consider outsourcing their Chief Investment Officer? Before we can understand the benefits to your clients, we first should understand the internal net positive that can result.
The first reason advisors should consider outsourcing the CIO role is simple: you can’t perform every task required to run your business. Every task that gets added to your to-do list means another suffers from lack of attention.
You are the advisor. For most financial advisors, picking investments is not their primary responsibility. If you’re like most advisors, advising clients is your favorite part of the job, and the most valuable to your clients.
Time that you spend sifting through investment options is time you have to take away from providing the answer to a question a long-time client emailed to you last night.
At the end of the day, pouring through a mountainous stack of research material will not help you serve clients better.
So what will? Let’s find out.
Centralizing your investment approach
Bringing in outside experts to help you firm up areas in your practice where you are not as experienced can be an important part of how you choose to grow. If asset management and investment selection are one of those areas, Sawtooth can act as a partner to your firm to help you create a centralized investment approach and establish a more organized firm overall.
We do this by allowing you to essentially outsource the role that a CIO would fill in the typical advisory firm.
The industry increasingly needs and wants financial advisors to defend their decisions with research-based criteria. It’s a byproduct of the DOL fiduciary rule proposals. Although the DOL fiduciary rule has evolved a great deal since it was first enacted, its original intent of ensuring advisors have clients’ best interests at heart is still in high demand.
Sawtooth provides the research for you to help prove that the selected investment approach is in the clients’ best interest. We also provide extensive investment options, so you can choose from a wide variety of models or choices to fit each client.
The time saved for your firm can be put directly back into growing your firm through interacting with clients, managing your team, and focusing on your strengths.
Sawtooth partners with industry leaders
Sawtooth approaches the outsourced CIO experience in much the same way we construct a technology stack for advisors built on the best that advisor technology has to offer. We work with industry–leading investment managers who can help your team in this area of your practice.
Every indication is that we are experiencing a time where an individual advisor sitting in his office and choosing mutual funds for each client portfolio is near its end. You can step into a more modern advice model and give your clients more flexibility and choice with the investment options offered by Sawtooth’s platform.
Get in touch with our team to see what outsourcing the CIO role in your firm would look like for your day-to-day schedule, and how you can build better client relationships as a result.