Partner Insight: Andy Bennett, director of Hartcliff Financial Planning and Serena Van der Meulen, director at Van der Meulen Associates met recently to discuss the topic: 'Adviser approaches to outsourcing.'
Talking to Square Mile's Alex Farlow, head of risk based solutions research, in the video below - the third in a series of five - Bennett and Van der Meulen discuss the merits of outsourcing for advisers, with very few drawbacks.
Bennett says: "To research and build portfolios are such a time-consuming process. For most small IFAs, they simply don't have the resource to do this, it is far better to outsource to someone who has the time, resources and access to markets. You will get far better client outcomes if you outsource to someone who is dedicated to doing that sort of thing."
Van der Meulen agrees with Bennett: "I totally outsource. I absolutely would not self-build portfolios in this 'day and age'. I think a lot of people did this a long time ago. When I speak to advisers now, I hear very few are actually doing it, if they do, it tends to be larger firms, with in-house research departments, who then outsource to a multi-manager and DFM, rather than using individual holdings. It wouldn't be for my business model at all, and I wouldn't feel confident doing it, even with over 20 years' experience [self-building portfolios]."
To outsource or not?
Not having a bespoke portfolio for Bennett's and Van der Meulen's clients is not an issue.
Bennett adds: "I haven't come across clients who want a bespoke portfolio, I know there are people out there like that, but they are the ones who tend to do it themselves anyway. Most of my clients want to achieve their goals and aspirations. So outsourcing, solves a lot of problems."
Van der Meulen says: "Outsourcing for me also saves a lot of time, I don't think I would be able to do my job without it. I have a lot of clients who are ex-fund managers and IFAs and they are happy for me to outsource their funds, so I think within the industry there has been a big shift."
