This is a guest post by the wonderful Eric Stein of East Bay Investment Solutions. Eric and his team offer Fractional CIO services to financial planners and RIAs. As part of Perfectly Planned Content’s ongoing commitment to getting advisors the resources (and experts!) they need to amplify their practice, we’re ecstatic to share a Q&A from Eric about how Fractional CIO services create stickier client relationships, level up your competitive edge, and give you a key marketing differentiator as a financial advisor. Want to connect with Eric? Reach out to him and his team here!
It’s a question we hear often from planning-focused advisors: Could partnering with a fractional Chief Investment Officer really set my firm apart? And if it could, would it actually lead to happier clients and more referrals?
We’ve seen the impact firsthand with dozens of firms that have chosen to outsource investment management. The short answer is yes—but the real value is in how it changes the way you operate day to day.
Q: What exactly does a Fractional CIO do for a planning-focused advisory firm?
Think of a fractional CIO as a dedicated investment department you don’t have to build, hire, or manage. Our work covers:
- Portfolio construction tailored to your clients, your philosophy, and your planning process.
- Manager due diligence that digs deeper than the basics and helps you avoid surprises.
- Ongoing market analysis so your strategies stay relevant.
- Support for other investment-related needs like client questions, prospect reviews, and more.
The point isn’t to take over your client relationships—it’s to give you and your team the freedom to focus on them. Instead of dividing your time between client meetings and spreadsheets, you can stay in your lane as the trusted planner, knowing the investment side is handled.
Q: How can this be a differentiator in a crowded advisory marketplace?
Firms often reach the same tipping point: you want to grow, but keeping up with markets, compliance, and day-to-day portfolio work leaves little bandwidth for expansion.
With a fractional CIO, you can:
- Offer the same depth and sophistication as larger firms without sacrificing your boutique feel.
- Walk into client meetings knowing you have current, well-researched answers to questions about the market environment, risks, and opportunities.
In other words, you stop competing on how many hours you can cram into a week and start competing on the quality of your relationships and the strength of your strategies. That’s where real differentiation happens.
Q: Will outsourcing investment management really make my clients happier?
Absolutely—and not because they’ll see more of us, but because they’ll get more of you.
When you’re not juggling, or second-guessing due diligence, you can show up differently in client conversations. You’ll have the time and headspace to:
- Ask better questions and hear what’s really on their mind.
- Offer plans that reflect their goals in greater detail.
- Follow up more quickly and thoughtfully.
Clients notice when you’re not rushed. They feel the difference in the attention you give them. That feeling of being understood and cared for is what deepens loyalty—and loyalty is the foundation for growth.
Q: How does this lead to more referrals?
Referrals happen when clients are proud to talk about their advisor.
If you’re giving them a consistently high-touch experience backed by a robust, well-managed investment process, they’re going to share that story. It’s not about asking for introductions—it’s about creating an experience worth telling people about.
We’ve seen it time and again: when clients feel confident in both the relationship and the results, they’re far more likely to bring friends and family into the fold.
Q: What should I watch out for if I’m considering hiring a Fractional CIO?
The right outsourcing partner should feel like part of your team, not an outside vendor. They should bring fresh vision to your company, not a stale approach that is only slightly modified from client to client. So, in that spirit, here’s what to look for:
- Cultural and philosophical fit. Your CIO should understand your planning-first approach and support it, not try to replace it.
- Clear communication. You should always know what’s happening with your investment process without chasing updates.
- Respect for your role. Control over your investment philosophy and client relationships stays with you.
Q: How do I know if my firm is ready?
Signs we often see in firms that are ready to make the move:
- You’re at or near capacity and worried about stretching your team too thin.
- Investment-related activities are taking time away from client work.
- The cost and commitment of hiring in-house investment staff don’t make sense for your size or growth stage.
- You’ve missed opportunities for clients because there wasn’t enough time for deep analysis.
If these sound familiar, it’s worth exploring whether outsourcing could free you up to grow without losing the personal service your clients value most.
At East Bay, we see our role as quietly making you better. We take the pressure of investment management off your plate so you can focus on the work—and the people—you enjoy most. That’s when firms grow. That’s when clients stay for the long haul. And that’s when referrals happen naturally–contributing to your overall well-being as well as those around you.
If you’ve been wondering whether a fractional CIO could help you stand out, serve clients better, and create a true referral engine, we’d be glad to have that conversation. LET’S TALK.
