Advisors Who Outsource Portfolio Construction Free Up Time for Client Growth 

Advisors who outsource portfolio construction dedicate just 10.6% of their time to investment management, enabling them to focus more heavily on client-facing relationships and high-demand planning services, according to new data from Cerulli Associates. 

In its latest Cerulli Edge—U.S. Asset and Wealth Management Edition, the firm finds that “outsourcers”—advisors who hand off discretion and refrain from customizing model portfolios—tend to be younger, earlier in their careers, and more resource-constrained than “insourcers,” who build portfolios client-by-client. Many of these advisors also operate with leaner staff, making outsourcing a strategic way to reallocate capacity toward business development and holistic planning. 

“In many cases, broker/dealer training programs have done a good job educating up-and-coming junior advisors on the benefits of leveraging model portfolios,” said Kevin Lyons, senior analyst at Cerulli. “As a result, they are more likely to feel comfortable and confident relying on financial planning and, increasingly, tax management as the primary pillars of their competitive positioning.” 

Advanced planning strategies—especially tax management—have become essential differentiators as advisors aim to move upmarket and better serve affluent and high-net-worth households. Four in ten advisors who outsource say these services are “very valuable,” signaling they are intentionally using model portfolios to free up time for client acquisition and expanded planning work. 

For model providers, Cerulli says the opportunity lies in supporting what these advisors value most. More than 87% of outsourcers report that competitive product information, best-practice insights from peers, and access to portfolio managers and product specialists are at least somewhat valuable—critical tools for advisors looking to deepen client conversations without building portfolios themselves. 

“Model providers will need to keep the advisor informed on the nuances of the products and the asset allocation framework of the model, so they are capable of passing that knowledge along to their clients,” Lyons said. He added that the strong desire for best-practice guidance reflects this segment’s focus on learning, growth, and scaling—key reasons many turned to outsourced models in the first place.