The Power of Outsourcing Investment Management for Trust Departments

As a trust department, managing client portfolios while handling the day-to-day operations of your business can quickly become overwhelming. Imagine trying to balance client meetings, regulatory requirements, financial planning, and investment decisions while keeping up with the latest market trends. It's no wonder that many trust departments find themselves stretched thin, unable to devote the time needed to nurture client relationships and grow their business. This article explores the power of outsourcing investment management.

Why Should Trust Departments Outsource Investment Management?

Why consider outsourcing investment management? It’s more than a time-saver — it can be a strategic move. By outsourcing, you can gain access to investment expertise, institutional-grade strategies, and customized portfolio solutions. You can streamline operations, reduce operational risk, and free up capacity to focus on client relationships and business growth.

Driving Results with AssetMark: Three Strategic Use Cases for Investment Outsourcing:

1. Small Account Solutions

   Trust departments can enhance their ability to manage smaller accounts efficiently, improve client satisfaction, and ultimately help drive greater growth while reducing overhead and complexity.

2. Legacy / Customizable Transition Portfolios

   Trust departments can successfully navigate legacy portfolio transitions, providing clients with modern investment solutions that meet their evolving needs while helping maintain regulatory compliance.

3. High-Net-Worth Solutions

   High-Net-Worth (HNW) solutions and services help trust departments attract and serve more clients across the wealth spectrum. Access to custom portfolios with individual stocks and bonds, emphasis on long-term growth and risk mitigation, covered-call option strategies, and alternative investments. AssetMark’s Separately Managed Accounts (SMAs) allow you to tilt HNW clients’ portfolios from a selection of investment exposures, including domestic, international, global, value, growth, small, and small mid-cap growth, and additional specialized strategies.

The Importance of Tax Management in Investment Management

Tax management is more than just reducing liabilities — it’s a critical aspect of wealth management. Proactive tax strategies not only help maximize after-tax returns but also preserve wealth for future generations. Comprehensive tax planning is a complex and time-intensive component of what should be a central part of your wealth management service offering. By outsourcing investment management, trust departments can help high-net-worth clients protect their wealth and earnings.

Effective tax management ensures that your clients’ investments generate the highest possible returns after taxes. With the right strategies in place, advisors can help clients preserve more of their wealth and optimize their portfolios for tax efficiency.

Beyond minimizing capital gains taxes, tax-aware solutions allow advisors to implement strategies like tax-efficient portfolio construction, tax-loss harvesting, and optimizing tax-advantaged accounts — all of which help lower clients’ overall tax burden.

A well-executed tax strategy can help ensure that clients’ wealth is preserved for future generations. This could include strategies such as tax-efficient estate planning, charitable giving, and gifting strategies that allow clients to pass on more of their wealth without excessive tax consequences.

Outsourcing investment and tax management services provides bank trusts with a unique opportunity to enhance their business and client relationships. By tapping into specialized expertise, improving operational efficiency, and implementing comprehensive tax and estate planning, trust departments can unlock their full potential to serve high-net-worth clients.

Ready to take the next step? Contact us today for more information or to explore investment outsourcing solutions tailored to your needs.

7941853.1. | 05/2025 | EXP 05/8/2027