Skip to Content
Advisor Insights

Of Models and Management

Advisors outsource investment management to focus on financial planning.

There is an old joke that defines economists: They spend their days looking at reality and wondering if it would work as a model. While it is undoubtedly a little harsh, it highlights both the complexity of the economy and the desire to standardize.

It is, therefore, unsurprising that outsourcing investment management has become so popular among advisors, especially in developed markets such as the United States and the United Kingdom. Faced with the joint complexity of financial markets and the individual situation of each client, it is natural to seek a rules-based approach that reduces the number of decisions required to build a portfolio.