The Cerulli research and consulting firm in its latest edition of “The Cerulli Edge” reported that advisers see portfolio construction as more challenging and increasingly they are outsourcing it to their home office or to third-party vendors.
Other highlights included:
– Only one-third of advisers refuse to outsource any aspect of the portfolio construction process to their B/D firm or to a third-party vendor (TPV). A somewhat significant, and growing, number of advisers are choosing to outsource this function entirely — 5 percent of advisers tell Cerulli that they completely relinquish this duty to their B/D firm or a TPV.
– The large majority of advisers recognize that the portfolio construction process is considerably more elaborate now than in years past. In this quarter’s survey, 88 percent stated that they believe it is at least somewhat more complex.
– Advisers are generally satisfied with their B/D firm’s technology, but 20 percent told Cerulli they are either highly or somewhat dissatisfied with their customer relationship management (CRM) system.