Turnkey Asset Management Program (TAMP)

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What is a Turnkey Asset Management Program (TAMP)?

A Turnkey Asset Management Program (TAMP) is a fee-based platform that provides financial advisors, broker-dealers, and other professionals with outsourced investment management, technology, and back‑office services. TAMPs let advisors delegate portfolio construction, investment research, reporting, billing, and many administrative tasks so they can spend more time serving and acquiring clients.

How TAMPs work

  • Advisors contract with a TAMP to manage client assets according to agreed models or customized strategies.
  • The TAMP handles investment selection, rebalancing, performance reporting, billing, and often compliance support.
  • Services can be white‑labeled (private‑labeled) so clients see the advisor’s brand rather than a third party.
  • Responsibility for day‑to‑day portfolio management shifts to the TAMP, which can reduce operational burden and some liability for advisors.

Types of TAMPs

  • Mutual fund wrap accounts: One fee covers trading and management of mutual-fund-based portfolios, reducing multiple individual fund fees.
  • ETF wrap accounts: Same structure as mutual fund wraps but limited to ETFs.
  • Separately managed accounts (SMAs): Individually owned accounts (typically for high‑net‑worth clients) where securities are held directly for one investor.
  • Unified managed accounts (UMAs): Consolidate different asset types into buckets (stocks, bonds, alternatives) managed under a single account structure.
  • Unified managed households (UMHs): Aggregate and manage assets across multiple household members for consolidated oversight.

Key factors to consider

  • Fee structure and transparency: Typical TAMP fees range roughly from 0.45% to 2.5%; determine whether fees are absorbed by the advisor or passed to clients.
  • Alignment with your investment philosophy and client risk profiles.
  • Technology and integrations: portfolio reporting, proposals, dashboards, custodial compatibility, and automated alerts.
  • Service scope: model construction, research depth, compliance support, IPS creation, tax‑aware management.
  • Customization and private‑labeling options.
  • Operational support and client reporting quality.
  • Due diligence: performance history, risk management, regulatory/compliance practices, and client references.

Benefits

  • Saves time on investment research, rebalancing, and administration.
  • Enables faster scaling of an advisory practice without building in‑house infrastructure.
  • Access to institutional research, model portfolios, and advanced technology.
  • Potentially lower overhead versus building equivalent capabilities internally.
  • Consolidated reporting and compliance support.

Drawbacks and risks

  • Layered fees can increase client costs if TAMP fees are passed through.
  • Advisors may have reduced control over day‑to‑day investment decisions.
  • Potential conflicts if a TAMP’s model or product incentives don’t fully align with client interests.
  • Dependence on a third party for critical operational functions.
  • Customization may be limited compared with fully in‑house management.

How to choose a TAMP

  1. Define your client segments, AUM thresholds, and service model.
  2. Compare investment philosophies and model performance across providers.
  3. Evaluate total cost to clients (including any fee layering).
  4. Test technology, reporting, and custody integrations.
  5. Review service level agreements, support structure, and escalation processes.
  6. Conduct regulatory and operational due diligence (compliance practices, audits).
  7. Ask for references and pilot the service with a subset of clients before full adoption.

Examples of major TAMP providers

Common providers in the market include Envestnet, SEI, AssetMark, Brinker Capital, Orion, Mount Yale Capital Group, Adhesion Wealth, Matson Money, Sawtooth Solutions, and Buckingham Strategic Partners.

Brief history

TAMPs emerged in the early 1980s as a way for advisors to outsource investment management and back‑office functions and have since evolved to offer sophisticated technology, model management, and integrated reporting.

Bottom line

TAMPs are a practical way for advisory firms to scale, outsource complex investment operations, and focus on client relationships. They can reduce overhead and provide access to institutional tools, but advisors must carefully evaluate fees, alignment with client goals, technology, and contractual terms to ensure the TAMP enhances—rather than constrains—their practice.