More RIA Firms Look To Outsource Investment Management
August 21, 2013
Outsourcing Gathers Momentum

The focus of successful RIA practices is developing and maintaining client relationships.  In recent years, however, RIAs are experiencing increasing demands on their time due to volatile markets and industry regulation.  Investment management is consuming more and more time, taking focus away from clients.  Why not be gathering assets and meeting with clients as opposed to being locked in a room in front of a computer?

 

SMA/UMA/TAMP

 

More and more RIA firms are using Third Party Money Managers to manage the tactical or alternative slice of their client portfolios.  The most common way to outsource some or all of the investment management is through an investment platform such as a UMA or TAMP.  In this case, a firm may be satisfied with their current in-house core allocation, but want to "carve out" a portion of the client portfolio for a third party tactical or alternative strategy. The UMA/TAMP platforms provide a convenient way to seamlessly integrate various strategies or investment styles into a single account.

 

Strategy License Agreement

 

What if a firm wants to access a particular investment strategy or money manager, but their book of business does not currently sit on a UMA or TAMP platform for easy access to that strategy or manager?  Do they really want to endure the pain of moving all of their existing accounts to a new platform or setting up hundreds of new accounts?  The answer in this case may be a Strategy License Agreement - a month to month agreement that provides simple, cost effective access to a unique tactical or alternative strategy for easy integration into existing client portfolios.  For a monthly fee, the Third Party Money Manager provides the trade instructions for their investment strategy, which allows the RIA to place the trades in their own client accounts.  Often times, the Third Party Money Manager can even recommend the most appropriate tactical or alternative strategy to integrate into existing client portfolios.

 

Investment Consulting & Research
 

When looking for a comprehensive solution, one that will allow the RIA to focus exclusively on client relationships and growing assets under management, outsourcing the entire investment management process makes the most sense.  Through a consulting process, the Third Party Money Manager can gain an in-depth understanding of the RIA's clientele and core investment principles.  This allows the Third Party Manager to then develop and maintain institutional quality portfolios that actively invest in multiple asset classes through exchange traded products or mutual funds.  This process enables the RIA to have influence over the portfolio construction process, but frees them from the time consuming task of portfolio development.  The Third Party Manager can then maintain portfolios through a Strategy License Agreement.

 

"Do What You Do Best and Outsource the Rest"   

 

Many fast growing RIA firms are relying on private-labeled outsourcing solutions that fit seamlessly into their existing practice, allowing them to strengthen their brand and grow their business.  Please contact us to discuss how our strategies and other outsourcing services can benefit your firm and your clients. 

   

 

 

(877) 885-7468

www.optimusadvisory.com 

info@optimusadvisory.com 

 

 

Optimus Advisory Group's Mission
Optimus Advisory Group seeks to create liquid alternative and tactical investment strategies that meet the needs of our advisor clients.  We use a disciplined, quantitative methodology to build and manage our portfolios.  Over a full market cycle, these strategies are designed to provide superior risk-adjusted returns while maintaining a low-correlation to traditional market indices. 

Advisors looking for expert advice on how best to utilize alternative and tactical investment strategies in their practice can access our investment consulting and research.  We provide guidance in the following areas:

  • Strategy Integration - Show you how our alternative and tactical strategies can fit into your existing client portfolios to better their risk/reward profile.
  • Asset Allocation Modeling - Create multi-strategy asset allocation models that combine the benefits of traditional core holdings and alternative/tactical strategies.
  • Custom Strategies - Create customized alternative and/or tactical strategies to fit the specific needs of your clientele.

For more information about any of our programs, please contact us.  You may also download the fact sheets for any of our investment strategies by clicking the Investment Strategies webpage link.  Each fact sheet contains disclaimers and disclosures for each model.

 

Thank you for your interest in our investment strategies.  We'll continue to keep you informed.

 

Sincerely,

 


Steve Rumsey

Chief Investment Officer
Optimus Advisory Group
6 Venture, Suite 200

Irvine, CA  92618 

(949) 727-4734

 

Advisory services offered through Optimus Advisory Group,
a registered investment advisor.

 

Disclosures

The performance results shown include the reinvestment of dividends and other earnings. Comparison of the Optimus Advisory Group Programs to any other indices is for illustrative purposes only and the volatility of the indices used for comparison may be materially different from the volatility of the Optimus Advisory Group Programs due to varying degrees of diversification and/or other factors. Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment will be profitable. Optimus Advisory Group does not make any representation that the Optimus Advisory Group Programs will or are likely to achieve returns similar to those shown in the performance results in this presentation. Optimus Advisory Group reserves the right to trade different funds within their models.
 

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance will be profitable, or equal to any corresponding historical index. The S&P 500 Composite Index (the "S&P") is a market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. Standard & Poor's chooses the member companies for the S&P based on market size, liquidity, and industry group representation. Included are the common stocks of industrial, financial, utility, and transportation companies. The historical performance results of the S&P (and those of all indices) do not reflect the deduction of transaction and custodial charges, nor the deduction of an investment management fee, the incurrence of which would have the effect of decreasing indicated historical performance results. The S&P is not an index into which an investor can directly invest. The historical S&P performance results (and those of all other indices and index funds used as proxies for indices) are provided exclusively for comparison purposes only, so as to provide general comparative information to assist an individual client or prospective client in determining whether the performance of the Optimus' portfolio meets, or continues to meet, his/her investment objective(s). It should not be assumed that any Optimus portfolio holdings will correspond directly to any such comparative index.
 

Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy (including the investment strategies devised or undertaken by Optimus Advisory Group) will be profitable for a client's or prospective client's portfolio. All performance results have been compiled solely by Optimus Advisory Group and have not been independently verified.
 

The Optimus performance results do not reflect the impact of taxes.