How can wealth management firms benefit from multi-manager strategies?
Financial intermediaries face a variety of challenges in today’s marketplace, including:
Preparing portfolios for an expected low-return environment
Simplifying and diversifying investments while meeting clients’ complex needs
Optimizing governance structures to improve operational efficiency
Multi-manager portfolios can help with these challenges, as they provide assistance with:
Tax and capacity management
Access to lower-fee institutional share classes
Access to capacity-constrained alternative investments — at times, with increased transparency
Transitioning to a multi-manager portfolio structure takes time and due diligence in order to identify firms with strong offerings that allow the intermediary to better serve its clients.
By: Andre Rooks, Partner, Senior Director Compensation Consulting
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The third annual survey report shares key findings that shed light on how over 500 financial advisors are thinking about alternatives in their portfolios today.