Improve Time Management by Partnering With Outsourced CIOs

Improve Time Management by Partnering With Outsourced CIOs

Q: What’s the most expensive commodity?

A: Time. It’s the most precious of all assets. No mortal advisor can replace it. 

So, let’s examine the options for managing yours more effectively. Especially if you find yourself with fewer and fewer hours, what follows could help you start getting some back. 

Can Effective Time Management Increase Your ROI?

A full plate sometimes comes with the fiduciary territory. If your practice’s bills are paid, chances are that you are busy.  

Managing assets, especially, can be a two-edged sword: Success means growing your book… but that, in turn, means adding more tasks to your schedule. Even the best time management skills aren’t always enough.  

In ancient Greek mythology, Sisyphus was a Corinthian king. Evil behavior got him sentenced by Zeus to roll a massive boulder up a high hill each day. 

At the end of each day, the boulder would roll all the way back down the hill again. This is why tasks that feel endless are sometimes referred to as “Sisyphean.”

When you want more prospects—but your schedule is perpetually full of investment strategizing, managing staff, overseeing operations, it can feel that way. 

Getting ahead starts to seem unreachable. You know you could, maybe, double your AUM if you only had a little extra time… 

So, here’s some good news: Additional time and your growth goals are both reachable. A major secret to effective time management lies in how you prioritize things. 

First, you have to focus on reclaiming time. We believe the easiest way to do this is by delegating to-do-s. In the simplest terms, the more tasks you offload, the freer you will be to spend your time elsewhere. 

If you’re part of a mega financial firm, it may be a no-brainer. You may only have to email or call somebody in HR. Assuming the hire’s approved, additional support should be in-house before the close of the quarter. 

If you’re an RIA, hybrid, or independent broker-dealer, things may be less cut-and-dried. To be blunt, your pockets might not be as deep. 

Unfortunately, the salary, bonuses, insurance, et cetera for a new hire could devour your bottom line. 

You could designate your principal. However, if they aren’t unusually super-skilled, that might just be shifting trouble from one area to another. 

Is There Another Way to Reclaim Prospecting Time?

You could consider a turnkey solution. However, they might be just as expensive. Their management approaches can get very one-size-fits-all, too.

Nevertheless, if you want to grow your book, we believe that you need a CIO. We don’t think there’s a way to get around this. 

That’s why a growing number of firms are opting for an outsourced chief investment officer (OCIO). This can be an independent contractor who joins your team. You may even list them on a meet-our-people page.

We believe it’s the best of both worlds: While they take a fee for their services, there’s usually no salary, parking fees, or bonuses to pay—but they’re often available online for as many or as few assignments as you give them.

If you’re tired of wholesaler calls, offload them. You can do the same with meetings and prioritize tasks like risk management. It can be an incredibly easy way to manage your time. 

Every part of asset management that pulls you away from what you do best can be delegated.

In fact, some advisors may regain a whole day of their workweek by delegating all portfolio management onto outsourced CIOs. This is never required, but it can free up amazing amounts of time. 

Obviously, you want an OCIO who’s vetted and trustworthy, first. Any candidate worth your time will be fully research-able, so don’t skip setting time for the verification step. Once you know that they are who they say they are; you can rest easier. We recommend that you look for certain qualifications, including a CFA Charterholder.

Next, with your clients’ assets in well-trained hands, you can finally get back to targeting prospects. The benefits of good time management don’t stop there, though.

You can also put more hours back into important tasks like building client relationships. People don’t stay with a firm long-term by accident. Whenever they do, it’s because an advisor has carefully, consistently nurtured that professional connection.

Some millionaires rarely seek recommendations. However, they may notice when a peer recommends an outstanding financial advisor for their asset class. 

How Else Could You Benefit from an OCIO?

There are more ways that an outsourced CIO can help your practice than we have room to describe in detail here. For instance, their market analyses likely stay more up to date. 

The prestige that OCIOs bring to any firm can be impressive, too. If you choose, you can even have them participate in Zoom calls to further market your investing solutions. 

At the same time, very little compares with the overall quality-of-life improvement that freeing your schedule can bring. Outsourcing your investment management might be the key to getting both your work and family lives back in balance. 

Nobody’s promising a miracle here: You still have to earn your pay, deliver maximum value to clients daily, and be kind to your loved ones. 

Nevertheless, with an OCIO and good time management techniques, the difference could be as noticeable as night and day. For a few basis points per client, you could actually start going home when everyone else does. 

That, in turn, could mean getting more rest. As you see how well your new CIO manages client assets, you also might start getting better; deeper sleep. 

A well-rested financial advisor can stay focused more easily. Losing bags from under your eyes couldn’t hurt your pitch to prospects, either. Think of it as a physical aspect of dressing for success.

Have We Gotten Your Attention?

In all honesty, if you are happy with your firm where it is, you may not need an OCIO. There’s something to be said for contentment with what we have in life. 

 However, if you find yourself dreaming of growing your book to its true potential, please contact us. The ROI for you, your clients, and your firm could significantly exceed your initial investment. 

CPS eBook Reasons to Outsource
Cornerstone Portfolio Research (“Cornerstone”) is an SEC-registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. This publication should not be construed by any consumer or prospective client as Cornerstone’s solicitation or attempt to effect transactions in securities, or the rendering of personalized investment advice over the Internet. The statements in this publication are the opinion of Cornerstone regarding Outsourced Chief Investment Officer (“OCIO”) services. These are not personalized recommendations and you should consider your own criteria when choosing an OCIO.
A copy of Cornerstone’s current written disclosure statement as set forth on Form ADV, discussing Cornerstone’s business operations, services, and fees is available from Cornerstone upon written request. You should not assume that any discussion or information contained herein serves as the receipt of, or as a substitute for, personalized investment advice from Cornerstone or the professional advisors of your choosing.

More about the author: Thomas Balis

Thomas holds a Bachelor of Science in Business from Ohio State and has since earned the Chartered Financial Analyst® (CFA®) designation as well as the Accredited Portfolio Management Advisor (APMA®) and Chartered Mutual Fund Counselor (CMFC®) certifications.