Leading RIAs have discovered that one key to differentiating their investment value proposition is to offer clients the benefits of a “Chief Investment Officer.”
“The executive position responsible for a company’s investment portfolios. The chief investment officer (CIO) usually oversees a team of professionals that have responsibilities such as managing and monitoring investment activity, managing pensions, working with external analysts and maintaining good investor relations. They will also develop short-term and long-term investment policies.” (Investopedia)
Having a leader in your firm with an expertise in investing strategy is not simply a luxury; it’s a significant value-add. As Phil Huber writes in the Wall Street Journal, “A chief investment officer can provide advisers with a resource for information and guidance, allowing them to focus on building and developing relationships with prospective and existing clients.”
The key here is having a unified investment vision for your firm. This way, all of your clients get the same investment strategy and approach. A CIO also adds value to the firm by helping provide investment information and guidance to prospective and existing clients in furtherance of your firms underlying investment approach. Beyond that, CIO leadership helps give your firm an investment philosophy. You need a long-term message for your clients that can help keep them on course in good times and bad.
However, as Huber points out CIO is not a position that’s right for every firm. Some firms may simply not have the desire to dedicate resources for this kind of specialized position. That’s where Adhesion comes in. For those firms, we offer an “outsourced CIO” option. Through our Unified Managed Programs, we provide a collection of leading strategists who offer asset allocation, manager and vehicle selection with on-going due diligence research. In other words, you get the same unified investment approach and philosophy without having to hire your own in-house CIO.
Visit our Adhesion eXchange site for more.