Beacon Capital Management
View Online
For advisor use only. Not to be used with clients.
fundamentally improving the science of investing
market spotlight | monthly review

The economy picked up the pace in November, as did the stock market. After getting off to a sluggish start during the early part of the month, equities soared following the results of the presidential election. Each of the indexes listed here reached record highs during the month. The Russell 2000 posted the largest monthly gain, reaching double digits. Energy stocks jumped at the end of the month following OPEC’s agreement to cut production. Investors seemed willing to sell bonds and buy stocks as evidenced by the yield on 10-year Treasuries, which jumped 56 basis points by the end of the month and now exceeds their 2015 closing yield. Gold lost value, closing November at $1,174.80, down $103 from its October closing value of $1,277.80.

did you know?

A new study reveals key differences between advisors who are also investment managers and advisors who outsourced their investment business. The following are ten-year averages:

  • *Outsourcers added 14 new clients each year compared to four new clients for investment managers.
  • *Outsourcers spend 12% of their time with prospects and 37% with existing clients. Those numbers drop to 6% and 20% to those doing their own investment management.
  • *Over the last decade, on average, client-focused advisors saw revenue grow $1.9 million. Those managing portfolios in-house saw growth of $815,902. 


*Source: SEI Advisor Network

bright ideas
Outsourcing Investment Management:
A $1 Million Question

At some point in an advisor’s career, as his book of business continues to grow, an important question will arise: Do I want to be an asset manager or an asset gatherer?

According to a new study conducted by SEI Advisor Network and FP Transitions, the answer is an easy one because advisors who outsource their investment management business make more money than advisors who don’t. And the numbers aren’t close.

The study examined 8,000 advisors over a ten-year period and revealed an eye-opening statistic: Advisors who outsourced their investment management brought home roughly $1 million more in revenue over a decade than their counterparts who managed clients’ assets in-house.

For many advisors, the question is not only about the money. With a booming business, they simply cannot do both functions well. If they are doing both, then much of the time they could spend cultivating client relationships and new business gets lost on the management side. Instead of client consultations, they’re stuck behind a desk, buried in research and putting technology systems in place.

The benefits of outsourcing

By outsourcing the management side, advisors open up new possibilities for their advisory business such as:

Relationships. Without the time-consuming aspect of managing portfolios, now an advisor can deepen the relationships they have with existing clients. They can spend more time with each client, broaden the relationship they already have, and develop stronger bonds with the client’s heirs and other family members.

New Ideas. Advisors can find unique ways to connect with clients. One advisor who outsourced his management business used that time to connect with clients in new ways such as following them on Facebook. He now will know when someone is planning a trip or when they get a new dog, and he can communicate with them on a very personal level. For instance, if a client says they are planning a trip to London, the advisor could send them a guide book to help plan the vacation. Maybe the book costs $10, but think of the good will it created.

New Business. With the deeper relationships being formed, now there’s more opportunity to get additional leads and to further grow the business. One way is by referrals from existing clients. Another is by developing successful lead networks. Some of our advisors are already having great success by putting together ad hoc teams that include a CPA, an attorney, and a property casualty expert, and they’ll meeting monthly to share ideas and leads. Partnering with these centers of influence, allows the advisor to grow and expand their business in new and exciting ways.

Community. For some advisors, outsourcing their investment business has been transformational, allowing them additional free time to become leaders within their communities. Finally, they can focus their time and energy to serve on boards that they are passionate about or to cultivate nonprofit programs that can serve others.

Family. One of the most rewarding outcomes of outsourcing the investment business is the time an advisor can now spend with their own family. There’s more time to spend at kids’ athletic or school events. There’s more time to go on that family vacation that they’ve been putting off for years. 

At Beacon, we are committed to helping advisors reach their potential. One clear way to do that is by taking on their investment management business so they can focus on what they do best—bringing in new business and cultivating the relationships they already have. For further assistance on how to outsource your business or how to implement any of the tips or ideas above, contact your wholesaler today!

Source: SEI Advisor Network

beacon news

The overwhelming response from investors today has been a need for safety and consistency in their investment approach, without giving up all hope for competitive returns—and our Vantage portfolios continue to deliver. 

This month, Beacon Capital Management was named by RIA Channel as

one of the 2016 Top 100 RIA Firms ranked by growth of assets from 2006 to 2016.

Thanks to all our advisors who have helped make this possible!



Beacon Capital Management, Inc. is an investment advisory firm registered with the Securities and Exchange Commission. Additional information about Beacon Capital Management is also available on the SEC’s website at under CRD number 120641. Beacon Capital Management only transacts business in states where it is properly registered, or excluded or exempted from registration requirements.

Click to unsubscribe

7777 Washington Village Drive, Suite 280, Centerville, OH 45459
P: 866.439.9093 | F: 937.424.4825