1SEI Survey, Outsourcing, March 2016, n=506
2FP Transitions’ internal database of more than 8,000 valuations of investment advisory practices conducted over the last 10 years formed the basis of its comprehensive research. The analysis compared two business models in terms of current operations and long-term growth and value. Client Managers were segmented based on less than or equal to 5% of owners’ time spent on Investment Research and less than or equal to 5% of owner’s time spent on Portfolio Rebalancing. Investment Managers were segmented based on greater than or equal to 10% of their time spent on Investment Research and greater than or equal to 10% of time spent on Portfolio Rebalancing. The Middle Group fell in between the other group’s thresholds. Once defined, CMs and IMs represented 50% of the total sample size
3Growth projections presented here are hypothetical and provided for illustrative purposes only. This information should not be relied upon by the reader as research or investment advice and is intended for educational purposes only. Information provided by SEI Advisor Network, a strategic business unit of SEI. Services provided by SEI Investments Management Corporation (SIMC), a wholly owned subsidiary of SEI. SEI has strategic relationships with third party service providers including FP Transitions. The experiences of the firms highlighted here may not be representative of all firms’ experiences. SEI and FP Transitions are not affiliated. Opinions expressed by FP Transition are their own. SEI cannot guarantee the accuracy or completeness of the information presented by independent third parties and assumes no responsibility or liability for any incompleteness or inaccuracy.