New ROI whitepaper documents $100,000Õs in annual savings independent advisors are achieving by outsourcing portfolio management and performance reporting
JACKSONVILLE, FL—June 1, 2009 - Black Diamond Performance Reporting™ announced today the release of it’s latest industry research that documents how independent advisors can save hundreds of thousands of dollars in annual operating expenses by outsourcing the core tasks of portfolio management and performance reporting.
“In today’s volatile markets, independent advisors are seeing a marked reduction in revenues and an increase in internal operating costs which is having a big impact on profitability, ” said Reed Colley, President and CEO of Black Diamond Performance Reporting. “Our research and experience in helping advisors move from legacy software and manual processes to dynamic online solutions with leading service and support has shown a dramatic difference in advisor economics.”
The report, developed in partnership with Nexus Strategy, LLC, a leading consulting firm to the wealth management industry, highlights the various areas of cost savings advisors can achieve by shifting their traditional software model to an outsourced solution. The key areas of cost savings identified were in technology acquisition and the back-office, labor-intensive activities of account reconciliation, quarterly reporting, billing, and ongoing training.
Through an online platform that is flexible, dynamic, easy to use and is integrated into all of the industry’s leading custodians, advisors can lower technology and ongoing back-office costs by tens of thousands of dollars for smaller firms to upwards of hundreds of thousands of dollars for large firms on an annual basis.
Annual Savings from Web-Based Outsource Performance Reporting Solution vs. Traditional Software/License Based Systems
| Size of Firm (AUM) | $150M | $500M | $1B+ |
| Software Solution | $94,000 | $149,000 | $267,000 |
| Outsource Solution | $41,000 | $82,000 | $136,000 |
| Savings | $53,000 (56%) |
$67,000 (45%) |
$131,000 (49%) |
“Providing relevant, timely and actionable information is part of our commitment to helping advisors efficiently solve their operational and technology challenges,” noted Colley. “Our mission is to help advisors achieve greatness by continually adapting their practice to the ever changing need of their clients. This report outlines how they can achieve that in today’s marketplace.”
To view a copy of the report, please logon to www.blackdiamondreporting.com/ROI .
About Black Diamond Performance Reporting
Founded in 2003, Black Diamond Performance Reporting™ offers a powerful tool for advisors and wealth managers by providing unbiased, outsourced investment performance reporting. The Black Diamond solution is a highly customizable, Web-based performance reporting solution that provides accurate, timely and meaningful data allowing advisors and wealth managers to tell their investment performance story. Using its proprietary reconciliation engine, Black Diamond reconciles its clients’ data on a daily basis so advisors and wealth managers always have the most current reporting information available at their fingertips. Black Diamond Performance Reporting™ is headquartered in Jacksonville, Florida, with offices in San Francisco and Dallas.
Media Contact
Timothy D. Welsh, Nexus Strategy, LLC
415-847-4874 or .(JavaScript must be enabled to view this email address)
