It’s been said that in business if you’re not growing, you’re shrinking.
In the case of financial advisors, growth can be market appreciation or organic. Both are important contributors to the overall well-being of independent RIAs.
As an RIA, the pressure to grow your client base and increase assets under management can be a source of increased pressure, considering all of your other business and personal responsibilities. For example, Meeting client expectations, running your day-to-day operations, and competing in an increasingly crowded investment advisory market are challenges that you face on a daily basis.
Like many RIAs, you might find that despite your best efforts, implementing effective growth strategies is getting more difficult in a digital world.
Partnering with an Outsourced Chief Investment Officer (OCIO) firm like Cornerstone Portfolio Research can help you streamline your operations and foster sustainable growth, enabling you to focus on what you do best: serving your clients and expanding your business.
This article will discuss some common roadblocks that can hinder your RIA firm’s growth and explore how Cornerstone’s OCIO services can help you overcome them.
The Roadblocks to RIA Growth
Here are some of the most common challenges that can hold back growth:
- Limited time and resources: Many RIAs wear multiple hats, juggling investment management, client service, and firm-related activities. This can leave you little time or energy to focus on strategic growth initiatives.
- Difficulty attracting and retaining High-Net-Worth clients: Catering to HNW clients often requires an experienced portfolio management team and strong customer service. RIAs may struggle to compete with larger firms to attract this lucrative clientele.
- Need for enhanced investment capabilities: As your client base expands, you may need to offer a broader range of investment options and strategies. Developing the internal expertise to handle these complexities can be a significant investment.
- Regulatory and compliance challenges: Keeping up with the ever-changing regulatory environment can be time-consuming and require dedicated resources. RIA firms may need help staying compliant with new investment strategies while focusing on growth.
- Technology and infrastructure limitations: Investing in the latest technology and infrastructure is essential for efficiency and scalability. The upfront costs and ongoing maintenance associated with these services could exceed the operating budgets of many RIAs.
- Talent acquisition and retention: Attracting and retaining skilled professionals is crucial for growth. Competing with larger firms for top talent can be difficult, impacting an RIA’s ability to deliver high-quality services and competitive solutions.
Cornerstone Portfolio Research’s OCIO services can be a powerful tool for overcoming these roadblocks and propelling your RIA firm toward future growth.
Cornerstone: Your RIA Growth Partner
Here’s how our OCIO services can unlock new possibilities for your RIA firm.
Enhances investment capabilities: Cornerstone’s team of experienced investment professionals, with over 70 years of combined experience, provides sophisticated investment research and portfolio management services. You’ll be partnered with a CFA Charterholder, a well-regarded industry designation. We offer a wide range of investment strategies and solutions, allowing you to cater to a broader client base and attract new types of client, such as retiring business owners.
Improves client service: Our streamlined investment operations allow you to dedicate more time to your existing clients. This fosters stronger relationships, leading to higher client satisfaction, improved retention rates, and potentially more client referrals.
Increases new business development: Outsourcing your investment management functions frees up valuable time and resources, enabling you to concentrate on high-impact activities like prospecting. With more bandwidth, you can engage in proactive business development, cultivate new client relationships, and grow your assets under management.
Scalability for growth: Our OCIO services are designed to scale seamlessly as your RIA firm grows. We can provide you with access to top investment talent, sophisticated research, and advanced technology to accommodate an expanding client base without significant upfront investment. You don’t have to give up equity or hire a CIO at a high six-figure salary plus taxes, benefits, and bonuses.
As your firm grows, our robust infrastructure and support allow you to manage the increased demands of bigger, more sophisticated clientele.
A Holistic Approach to Growth
At Cornerstone Portfolio Research, we understand that true growth requires more than just investment management. Our holistic approach enhances operational efficiency while elevating client service to a much higher level.
Operational Efficiency
We can handle investment operations, from trade execution to performance reporting, enabling you to streamline your back-office functions. As a result, your team can focus on strategic growth initiatives and servicing rather than getting bogged down in day-to-day operational tasks.
We are custodian-neutral, allowing you to keep your current custodian and avoid major transition issues. With minimal client disruption, there is no need to re-paper clients, transfer assets, or establish new accounts.
Our onboarding assistance makes for a smooth process for new clients, providing a seamless experience. All of our services can be white-labeled with your RIA’s name, maintaining your firm’s identity and continuity. Additionally, we can be listed on your website’s team page, reinforcing our partnership and collaboration.
Client Service Support
Cornerstone enhances your client service capabilities by providing ongoing communication and reporting. We help keep your clients informed and engaged and develop customized investment solutions for their specific needs. Our process is tax efficient when recommending changes, so clients experience minimal disruptions when adjustments are made gradually over longer time periods.
We offer weekly communication to keep you informed about our current thinking and recommendations. You will have access to a full-service OCIO during business hours, and our team can conduct virtual meetings with you and your clients upon request.
Our services are designed to integrate smoothly into your operations without disrupting your clients or current investment methodologies, thereby providing broad support for all of your portfolio management activities.
Investing in Your Future With Cornerstone
By partnering with Cornerstone, you can gain access to a wealth of expertise and resources that can position your RIA firm for significant growth. We understand the unique challenges RIAs face, and our OCIO services are specifically designed to address those opportunities for growth and improved client retention rates.
We’re dedicated to empowering you and your firm to thrive in a competitive environment. By leveraging our services, you can unlock a multitude of benefits, like focusing more energy on business development and attracting new clientele with a broader range of sophisticated investment options.
When you team up with us, you have a dedicated partner invested in your success. We work with you to develop a customized growth strategy that aligns with your vision for the future.
Contact us today to schedule a free consultation or request a complimentary growth strategy assessment. During this consultation, we’ll discuss your business goals and explore how our OCIO services can help your practice’s growth strategy.
