As an asset manager, your challenges loom large. Throughout your day, the competition for investor funds pushes you to broaden your portfolio across multiple asset classes, currencies and regions — but managing these complexities can overwhelm your back office.
You also know that in the industry, the broader trend of fee compression is shifting priorities, along with charging based on asset points. Wealth managers now need to be focused on strategy or style of investments, while gaining efficiencies in their operation. Now, you can do both.
Asset managers are trying constantly to keep up with changing industry regulations and shifting priorities. This can create gaps and inefficiencies. Asset management outsourcing may be the answer.
For example, asset managers may outsource middle- and back-office operations but perform other operational functions internally, such as trade processing. Asset managers therefore have the ability to “mix and match” which services they want to perform in-house and which services they want to outsource.
Up to 50% of financial advisors today outsource some or all of their investment management, and the numbers are similar for asset managers. Here are some key benefits of outsourcing your asset management:
The resources required to support advisors’ management activities are time-consuming and costly. Offloading those tasks by taking advantage of asset management solutions can save your staff for other activities like client engagement and networking.
Technology is already helping asset managers save significant money through outsourcing. KPMG predicts that will free up managers to focus more on clients.
“Client profiling, data analytics and operational flexibility will be increasingly critical to effectively target and service an increasingly diverse client base,” says KPMG.
According to BCG, a firm with AuM of $100 billion can save 15% to 20% of total costs through such initiatives as outsourcing — a $16 billion to $21 billion opportunity across the industry.
According to another study, advisors who have more time to nurture clients and prospects bring in $1 million more in revenue over 10 years. That study also indicated that advisors who outsource add $14.5 million to their assets annually, double what in-house investment managers add.
A recent study indicates that 84% of firms and advisors who outsourced operations to specialists reported that they’d had a successful experience. They reported that outsourcing:
Empaxis provides asset managers with a proven outsourcing solution for operations, thanks in part to our TAMP1 platform. At heart, we are systems-agnostic, meaning we work with any systems you’re currently running, and our TAMP1 platform is a welcome alternative to asset managers looking to upgrade a newer, more functional system.
The TAMP1 platform provides asset managers with comprehensive, cost-effective middle-office and back-office outsourcing that aligns with your specific processing, allowing you to scale with efficiency and ease.
Now, you don’t have to worry about technology with a partner in operation management. TAMP1 will give you cost savings and time savings. We’re experts at resolving reconciliation breaks, dealing with more complex reporting requirements, including separately managed accounts, and more. We do the work in the off hours so you can have a better result.
We work with data feeds from over 2,200 custodians and financial firms, including Goldman Sachs, Morgan Stanley and Merrill Lynch.
No matter what systems you use, TAMP1 or otherwise, Empaxis can offer you asset management solutions, such as:
We knew we were going to launch new products and target new types of clients, which would lead to growth and require scalability. We also knew that if our back-office was not prepared to sustain that growth, these initiatives we were putting in place would not be successful.
– Aimee Hauff, Director, Investment Operations, Cornerstone Advisors, Inc.