{"id":328,"date":"2022-01-31T05:00:39","date_gmt":"2022-01-31T10:00:39","guid":{"rendered":"https:\/\/cornerstoneportfolioresearch.com\/?p=328"},"modified":"2023-03-31T16:28:45","modified_gmt":"2023-03-31T20:28:45","slug":"why-will-more-rias-outsource-to-a-chief-investment-officer-in-2022","status":"publish","type":"post","link":"https:\/\/cornerstoneportfolioresearch.com\/outsourcing\/why-will-more-rias-outsource-to-a-chief-investment-officer-in-2022\/","title":{"rendered":"Why We Believe More RIAs Outsource to a Chief Investment Officer in 2022"},"content":{"rendered":"

Some RIAs have Chief Investment Officers (CIOs) and some don\u2019t. In general, it is the larger firms that can afford the expense of in house CIO employees (Salary, bonuses, benefits, taxes, support, stock options). Smaller RIAs have to make a major decision. Act as their own CIO, use the services of an Outsource CIO (OCIO) or use a third party manager, for example a TAMP, SAM, or another type of money management service.<\/span><\/p>\n

We believe 2022 will be a watershed year for a critical decision that will have a major impact on RIAs and their clients for the rest of this decade and beyond. Let us tell you why.<\/span><\/p>\n

How credible is your claim to be your own Chief Investment Officer?<\/b><\/h2>\n

Every RIA in America has a website. 95% of those websites have a page titled Our Team that profiles the professionals and administrators who work for the firm.<\/span><\/p>\n

When there is no marketable Team many advisors revert to a page they call Our Founder and only profile the owner of the firm. The alternative is to leave this page off of the website which becomes conspicuous by its absence. This is a difficult choice for many RIAs – profile a Founder or leave that page off of the website.<\/span><\/p>\n

The next challenge concerns credentials. Let\u2019s say you are a CFP that owns his or her firm. Your challenge is to convince investors you can wear the planning and investment hats as effectively as firms with specialized professionals. In this case many of these advisors would position themselves as generalists.<\/span><\/p>\n

On the other hand what if you profiled an OCIO<\/a><\/strong> on your website who was a CFA? This frees you up to market a team of specialized professionals versus one or a few professionals who wear several hats.<\/span><\/p>\n

Will the next 10 years be more volatile than the past 10 years?<\/b><\/h2>\n

2009 to 2021 had some bumps in the road, but in general investors and their financial advisors were rewarded for being in the market. The market more than weathered the Covid crisis and a disruptive 2020 election. The question is will the market deliver the same returns in the 2020\u2019s as it did in the 2010\u2019s?\u00a0<\/span><\/p>\n

There are numerous clouds on the horizon that suggest otherwise:<\/span><\/p>\n