What is investment outsourcing?
This is the process of hiring someone else to manage your investment portfolio. It's usually done by institutional investors, organisations that invest money on behalf of their members.
Where have you heard of investment outsourcing?
It's becoming increasingly common, not only for institutional investors but also among families with a very high net worth. You might also have heard of large companies such as Russell Investments and SEI, both based in the US, which provide outsourcing for their clients.
What you need to know about investment outsourcing.
There are a growing number of companies working in outsourced investment management worldwide. The trend originally began among smaller firms, who were either unwilling or unable to set up their own internal investment teams. The most common model is to use an outsourced chief investment officer, who is employed by a family or organisation who do not have fully-staffed investment departments. The process of investment outsourcing is evolving as it becomes more popular, but usual practice is to hand over all decision-making - including asset allocation and monitoring.