For Financial Advisors

Blue Water believes the most successful advisor-client relationship is built on trust and expertise. Financial advisors who work with Blue Water get to experience more time focusing on their client relationships while leaving the investment management and back-office operations to us.

Financial advisory firms are increasingly finding that by using third-party asset management expertise, they can streamline their product offerings to be more efficient while still providing the valuable services their clients require. Outsourcing allows financial advisors the ability to leverage the breadth of investment strategies offered by the third-party asset management firm, as well as the enhanced due diligence and monitoring compliance under which the investment managers operate. The clients benefit from this partnership, as they can trust that the third-party managers reflect the same or higher standards of service that they have come to rely on with their financial advisor.

Many advisers also seek third-party portfolio management to gain access to alternative investments or smart beta investments. They also seek expertise in emerging or frontier markets and environmental, social, and governance investments, also known as ESG. Others want to remove compliance burdens or free up time for business development.

Third-party asset management also provides:

  • Portfolio guidance based on sound, proven investment philosophy
  • Complete portfolio structures designed for a wide variety of client needs
  • Custom portfolio management for clients with unique needs and financial goals, including high-net-worth investors

MANAGED PORTFOLIOS

With 15+ portfolios based on income, total return, tax awareness, and active or passive management, there is a solution that fits your clients’ needs.

Financial advisory firms are entrusting up to 57% of client assets to third-party managers, an increase of over half from four years ago. A recent study shows that outsourcing provides numerous benefits, as confirmed by financial advisors:

  • Increased growth in managed assets
  • Higher personal income
  • Lower operating costs
  • Increase in the number of new clients
  • Improved client retention
  • Higher number of client referrals
  • Increased client engagement
  • Decreased back-office investment
  • Greater flexibility
  • Increased credibility

Increased Growth and Lower Costs

On average, 70% or more advisors experienced growth in total assets, increased personal income, and improved operating costs. Not only did the financial managers achieve growth and lower costs overall, but the impact grew with the number of assets outsourced.

  • Up to 49% outsourced
    • Total asset growth: 68%
    • Increased personal income: 66%
    • Reduced operating expenses: 59%
  • 50% to 80% outsourced
    • Total asset growth: 85%
    • Increased personal income: 76%
    • Reduced operating expenses: 73%
  • >80% outsourced
    • Total asset growth: 87%
    • Increased personal income: 85%
    • Reduced operating expenses: 82%

In-house portfolio management comes at the cost of time and operational investment like back-office operations and technology. According to another study of 8,000 financial advisors, engaging third party asset management increased profits by an average of $14.5 million and 14 new clients annually.
Improved Relationships and Client Engagement 
With the recovered time from outsourcing portfolio management, advisors can focus more on client relationships. They have more time to personalize their services to meet the diverse needs of their client base, ensuring that their overall financial services requirements are being met. The better the trust relationship, the more engaged clients are in planning their financial future. Clients who are actively engaged in their financial planning have a greater level of satisfaction with their advisors.

Increased Credibility and Flexibility

For smaller or newly established firms, outsourcing may help to enhance your credibility. By working with a third-party manager, you maintain objectivity, avoiding any potential conflicts of interest from creating financial plans, and making the investments. Focusing on financial planning and outsourcing portfolio management services also provides the flexibility to scale your business, making it more attractive to potential buyers if you decide to sell.

CUSTOMIZATION

Advisors can utilize Blue Water’s platform to implement many different types of strategies and account structures.

RETIREMENT PLANS

Blue Water can assist you in the design and management of qualified retirement plans. We’re more than just a portfolio manager.

Our certified portfolio and retirement plan advisors partner with you to understand your goals for retirement. We then work together to identify your goals and build a strategy that outlines the steps you can take to achieve them. Whether you are just starting out in your career and wanting to establish your retirement plan or are more established but have put planning off until now, our certified retirement planning advisors can help you prepare for your retirement years.

When you work with our Blue Water retirement advisors, we'll take a measured approach to ensure that you are prepared for your desired lifestyle and whatever surprises come your way. Your advisor will:

  • Identify any gaps in your current retirement savings plan
  • Advise you on the options to maximize retirement savings and minimize tax implications
  • Craft a debt-elimination strategy
  • Plan for healthcare expenses like supplemental insurance premiums and long-term care
  • Recommend an asset allocation that optimizes your expected returns while conforming to your risk tolerance 
  • Review additional products such as annuities or long-term care insurance that help ensure post-retirement income 

Your Blue Water retirement advisor is here to help you specify your retirement goals. Your plan will be based on your desired timeline, risk tolerance, and lifestyle. Together, we'll discuss any potential obstacles to achieving your goals and how to overcome them. Every step of the way, your advisor will be here to help you review your goals and progress to ensure that you are staying on track as the years progress.