Streamline Your Asset Management with TAMP
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Summary:
Turnkey asset management programs (TAMPs) are fee-based platforms that enable financial professionals to transfer investment management obligations, saving time and allowing them to focus on client service. This page discusses TAMPs, their benefits, types, main providers, and factors to consider while selecting one.
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What is a turnkey asset management program (TAMP)?
A turnkey asset management program (TAMP) offers a fee-account technology platform that serves a variety of financial professionals, including advisers, broker-dealers, insurance companies, banks, law firms, and CPA firms. These platforms allow professionals to oversee their clients’ investment accounts efficiently.
Streamlining financial operations
TAMPs are designed to streamline financial operations by enabling professionals to delegate asset management and research responsibilities to specialized third parties. This delegation allows professionals to focus on their core expertise and provide more valuable services to their clients.
Key providers
Notable TAMP providers include Envestnet, SEI, AssetMark, Brinker Capital, and Orion Portfolio Solutions. These providers offer technology, back-office support, investment research, asset allocation, and more, enhancing the efficiency of financial firms.
Understanding turnkey asset management programs (TAMPs)
TAMPs come in various forms, including mutual fund wraps, exchange-traded fund wraps, separately managed accounts (SMAs), unified managed accounts (UMAs), and unified managed households (UMHs). Each type caters to different client needs and investment strategies.
Cost considerations
TAMPs typically charge between 0.45% and 2.5% for their services. Financial professionals need to weigh the costs against the benefits, considering the time saved and the potential for generating more business.
Types of turnkey asset management programs (TAMPs)
Mutual fund wrap accounts
Mutual fund wrap accounts offer a cost-effective solution, bundling multiple mutual funds into a single fee, reducing overall expenses for investors.
Exchange-traded fund wrap accounts
Exchange-traded fund (ETF) wrap accounts operate similarly to mutual fund wraps but focus on ETF investments, providing flexibility and diversity in portfolio construction.
Separately managed accounts (SMAs)
SMAs are tailored for high-level investors, offering personalized investment strategies and control for individual clients.
Unified managed accounts (UMAs)
UMAs aggregate different investment types into separate buckets, allowing clients to manage their assets more efficiently and optimize their portfolios.
Unified managed household (UMH)
UMHs cater to multiple individuals within a household, offering a unified approach to managing family investments and financial goals.
Special considerations
TAMPs come in off-the-shelf and customized varieties, often privately labeled to maintain client confidentiality. These programs offer essential technology support, back-office assistance, compliance services, and more, improving the efficiency of advisory firms.
The bottom line
Turnkey asset management programs (TAMPs) play a crucial role in the financial industry, offering efficient solutions for managing client investments. By understanding TAMPs, financial professionals can enhance their services, save time, and reduce risk. Investors can benefit from cost-effective solutions but should be aware of potential fee structures and alignment with their investment goals.
Frequently asked questions
What are the largest turnkey asset management programs (TAMPs)?
The largest TAMPs include Mount Yale Capital Group, Adhesion Wealth, Matson Money, Sawtooth Solutions, Orion Portfolio, Brinker Capital, Buckingham Strategic Partners, AssetMark, Independent Advisor Solution by SEI, and Envestnet.
How do you pick a turnkey asset management programs (TAMP)?
Choosing the right TAMP depends on various factors, including alignment with your investment strategy, custodial relationships, fees, technology compatibility, support management, and additional services offered.
When did turnkey asset management programs (TAMP) start?
Turnkey asset management programs began in the early 1980s, revolutionizing how financial professionals manage client investments efficiently.
Key takeaways
- TAMPs streamline investment management for financial professionals, allowing them to focus on client service.
- Types of TAMPs include mutual fund wraps, ETF wraps, separately managed accounts, unified managed accounts, and unified managed households.
- Consider cost-effectiveness and alignment with your investment strategy when choosing a TAMP.
- TAMPs offer advantages such as time savings and cost-efficiency, but they may reduce control over investment strategies.
- The largest TAMPs provide a range of services to meet different financial needs.
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