Glenda Kemple knows precisely why she outsources portfolio construction. “You add value because you understand your client’s total financial picture,” says Kemple, CPA, CFP®, of Kemple Capital in Dallas, Texas. That picture includes cash management, tax planning, retirement planning, estate planning, education planning, and risk management, in addition to investment management. “We want clients focused on all of those dynamics, not just the portfolio.”
Those who outsource portfolio construction as Kemple does passionately agree. They believe it saves them time and empowers them to better serve their clients’ overall financial planning needs, while tapping high-quality investment resources at a reasonable cost. They also believe that outsourcing makes them more competitive, helping them snare bigger, more sophisticated clients—and to win a bigger percentage of their assets.
Non-outsourcers are equally passionate about keeping portfolio construction in-house, arguing that they save their clients fees and provide better performance, and have a better handle on their clients’ portfolios, as well as getting great personal satisfaction out of the portfolio construction process.
Continue reading my article in the Journal of Financial Planning (FPA membership required).
Susan B. Weiner, CFA
Copyright 2008 by Susan B. Weiner All rights reserved