Outsourcing Portfolio Management

1
Outsourcing Portfolio Management

• Kevin Kirkwood, CFA, MBA
• President
• Global Portfolio Review Inc.

2
Agenda

• Aspects to consider when contemplating whether to
  outsource your portfolio management.
• A brief overview of Global Portfolio Reviews
  outsourcing option.

3
Two Aspects to Your Business

• External
• You cannot control what other businesses do.
• You cannot control the markets.
• Internal
• You can control most of the decisions here.

4
Everyone is Squeezing Your Business
5
Different Needs For Different Markets

• Bigger cities
• 50 of your clients probably make up 10 of your
  books assets.
• Focus on finding a higher quality solution.
• Smaller communities
• Smaller customer base and small town talk means
  you cannot be as selective.
• Focus on finding a solution to increase your
  efficiency.

6
A Business Personal Decision

• Outsourcing portfolio management is a decision
  you make towards the end of a business analysis
  process.
• Take a look at what you want to do with the
  limited number of hours you have in a year
• Make more money.
• Have more time available for other purposes.

7
Increase Profitability or Time
More Profit, Less Time
More Profit, Same Time
Same Profit, Much Less Time
8
Customization or Standardization
9
Candidates for Outsourcing

• Good candidates for outsourcing
• Financial Planner / Wealth Consultant
• Those looking to refocus their business
• Those wanting to boost efficiency
• Those looking to sell their business
• Not good candidates for outsourcing
• Control freaks / DIY types
• Tactical allocators / stock pickers

10
Solution Options

• Complete Handoff
• All investment decisions handled elsewhere
• Partial Handoff
• You handle the investment choices / order entry,
  but portfolios managed elsewhere.
• Apply External Expertise
• You work with an outside firm to create your own
  portfolios and apply them to your business.

11
Questions to Ask Yourself

• Am I concerned about the competition?
• Am I happy with the way my business is operating
  now?
• What is my primary need higher quality, higher
  efficiency, or both?
• Am I okay with some standardization?
• Am I a good candidate for outsourcing?
• Which type of solution best suits my needs?

12
Global Portfolio Review

• We provide external expertise and systems to
  overlay on your existing business.
• Pooled products mutual funds, ETFs, closed-end
  funds are our expertise.
• We provide software and documents to maintain
  everything.

13
Our Process
14
We Focus on You

• Everything starts with a questionnaire to find
  out about you.
• Helps ensure consistency with the past and
  readiness for the future.

15
Asset Allocation

• Modified mean / variance optimization
• Create your own personalized efficient frontier
• Select 5 asset allocations across the risk
  spectrum

16
Investment Research

• A quantitative approach Returns-Based Style
  Analysis with Multiple Currencies.

17
Create Portfolios

• Utilize a Core Secondary approach to create
  tiers of portfolios.

18
Monitoring

• Reporting is available monthly on our website
• Asset allocations,
• Portfolios,
• Investments,
• Marketing

19
Applying Your Portfolios

• Creating and maintaining portfolios is the easy
  part.
• Applying the concept to your client base can be
  difficult,
• Maintaining all your accounts which use these
  portfolios is really hard.

20
On-The-Fly Portfolio Analysis

• Portfolios are integrated into the sales process.

21
Risk/Return Questionnaire

• Our personalized questionnaire also looks at
  return requirements, not just risk tolerance.
• Lets you work with your client to choose the
  best portfolio to meet their financial goals.

22
IPS Generator

• Our IPS Generator integrates everything into one
  document in less than 10 seconds
• Risk tolerance
• Return requirements
• Asset allocation
• Investments
• Monitoring, Rebalancing, Reporting
• Roles Responsibilities

23
Portfolio Monitoring

• The Control Centre shows you the health of your
  book by comparing accounts/households to the
  chosen portfolio template.

24
Rebalancing

• Rebalancing reports can be generated for all
  accounts.
• Non-model investments are ignored, so it doesnt
  try to sell everything!

25
Thank You

• Kevin Kirkwood, CFA, MBA
• President
• Phone [phone]
• Email kkirkwood_at_globalportfolioreview.com
• Web www.globalportfolioreview.com
• In our CLIENT AREA see the information our demo
  advisor, Joe Advisor, receives every month.
  Enter his Username (JoeA) and Password (demo) to
  get in.