While clients may seek outsized returns when shopping for investments themselves, they often desire more predictability within a managed portfolio, says Friederich.
“We take a bigger picture view. It’s more about the financial wellness of the client’s family and their long-term goals,” says Friederich. “Let advisors spend a lot of time on the front end and focus on the client’s plan. Then they can get to the investment.”
Envestnet examined nearly 345,000 accounts, 180,800 of them advisor managed and 163,800 of them managed by fund strategists.