(AssetMark) Our recently released impact of outsourcing study furthers initial research conducted in 2019 to uncover how the role of outsourcing has changed and what direction trends are heading in for financial advisors. Advisors who outsource enjoy a range of advantages, greater access to investment solutions, better relationships with clients, notable improvements in their businesses and personal benefit.
In fact, according to our most recent study, about 83% of advisors surveyed agreed that investment management outsourcing has better enabled them to strengthen client relationships, up from 68% in 2019, while 82% of advisors sighted increased client retention, up from 65% in 2019. Advisors also state that delegating investment management results in a tangible financial value. In fact, 91% of advisors in the study, which, by the way, was a mix of advisors who work with AssetMark, don't work with AssetMark's outsource and don't outsource at all, reported growth in total assets as a result of outsourcing, while 84% reported higher business valuation, and 83% reported higher personal outcome.
The bottom line for us is that outsourcing works and AssetMark is built for advisors who make the decision to outsource. It's no surprise that 93% of advisors who use AssetMark as their primary outsourcing provider are highly likely to recommend outsourcing to other advisors. This is compared to 81% of advisors who outsource with another provider. We're focused on continuing to enhance our outsource offering as well as expand the impact.
