In the summer of 2012, Northern Trust revisited a 2010 research initiative and again surveyed financial advisors about their use of investment management outsourcing. We employed this research as a means of deepening the understanding of advisors’ perspectives on outsourcing the management of their clients’ assets. We hope this research will benefit outsourcing solutions providers as well as advisors who are considering whether it makes sense to outsource their investment management function. The survey enabled us to tap the experience and insights of two groups of financial advisors:
1) Advisors whose firms are outsourcing investment management
These advisors say that outsourcing has positively impacted the productivity and efficient growth of their practices. With the possible exception of disappointing investment performance, outsourcing advisors are categorically satisfied with their solution and what it achieves for their firms.
2) Advisors whose firms are not outsourcing investment management
The majority of these advisors contend that their in-house management of client assets is central to their firms’ value proposition. The 2012 survey found a higher percentage of advisors maintaining this view – across firm type, firm size and compensation model segments – than in 2010.
 | 2012 Research and Supplemental Information 2010 Research |
Listen to a replay of a webinar on this topic from October 3, 2012
