The Problem with Outsourced Investment Management: Who’s Really Managing Your Money?

Most investors assume the professional they hired is the one actively managing their portfolio. It feels like a reasonable assumption, after all. You meet with that person, share your goals, discuss your risk tolerance, or fill out a financial questionnaire, and trust them to guide your financial future. But in today’s financial services landscape, that assumption often breaks down. The reality is that a large percentage of financial advisors do not directly manage client portfolios. Instead, they rely on outsourced investment management through third-party sub-advisor managers, standardized asset allocation model portfolios, or mass-market investment products. This disconnect raises a […]