Understanding Turn Key Asset Management Platforms

Turn key asset management platforms are designed to streamline the process of managing assets, reducing the administrative burden on businesses. They provide a centralized location for all asset-related data.

These platforms often integrate with existing systems, such as enterprise resource planning (ERP) and customer relationship management (CRM) software. This integration enables real-time data synchronization and eliminates manual data entry.

By automating routine tasks, turn key asset management platforms improve efficiency and reduce errors. They also provide valuable insights into asset performance and utilization.

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A TAMP can save advisors an average of 9 hours per week, allowing them to focus on higher-value activities and experience accelerated growth and business performance. This is according to Matt Matrisian, Head of Client Growth at AssetMark.

By outsourcing investment management and back-office tasks, advisors can free up time to focus on in-depth consultations, personalized financial planning, and building stronger relationships with clients. This leads to higher quality service for more clients and empowers advisors with a wider range of investment options and sophisticated technology.

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Advisors can benefit from a TAMP in several ways, including:

A TAMP, or turnkey asset management platform, offers numerous benefits for financial advisors and their clients. By outsourcing investment management and back-office tasks, advisors can free up time to focus on high-value activities like in-depth consultations and personalized financial planning.

Research shows that advisors who partner with an outsourcing provider can save an average of 9 hours per week. This translates to accelerated growth and business performance.

One of the primary benefits of a TAMP is increased efficiency. By automating tasks such as trade execution, reporting, and billing, advisors can streamline their operations and reduce manual data entry time.

A TAMP can also provide access to top-tier technology and investment management expertise. For example, a TAMP like Alden COVE offers advanced trading and portfolio management, as well as integrated billing, reporting, and accounting.

Some of the key benefits of a TAMP include:

By choosing the right TAMP, financial advisors can gain a competitive advantage over other firms and boost their enterprise value.

Before diving into the benefits of a TAMP, it's essential to acknowledge the potential drawbacks.

One of the significant disadvantages of turnkey asset management platforms is that they can lead to a loss of control over investment decisions.

Finance professionals should consider the potential for reduced transparency when working with a TAMP.

The cost of using a TAMP can be higher than managing assets in-house.

It's crucial to weigh the benefits of outsourcing tasks against the potential drawbacks, including the loss of control over investment decisions and reduced transparency.

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There are several types of turnkey asset management programs available. These include mutual fund wraps, exchange traded fund wraps, separately managed accounts, unified managed accounts, and unified managed households.

Mutual fund wraps and exchange traded fund wraps are two types of TAMPs that allow advisors to offer a range of investment options to their clients. Separately managed accounts, on the other hand, provide a customized investment solution for each client.

Unified managed accounts and unified managed households are also types of TAMPs that enable advisors to manage multiple accounts from one place. This can help streamline processes and create more efficient operations for advisors.

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A TAMP is essentially a fee-account technology platform that financial professionals can use to oversee their clients' investment accounts. It's designed to save time and allow advisors to focus on providing value-added advice.

Typically, TAMPs are provided by RIAs, brokers/dealers, or custodians as part of their suite of services. They enable advisors to access multiple accounts from one place and automate tasks such as trading, reporting, and billing.

By using a TAMP, financial professionals can delegate asset management and research responsibilities to another party that specializes in those areas. This helps them focus on their areas of expertise and provide better service to their clients.

TAMPs can be expensive, but they can also save clients money in the long run. Developing a proprietary asset management system can be costly, especially for small firms.

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Turnkey asset management programs (TAMPs) come in a variety of forms to cater to different financial professionals and their clients. There are five types of TAMPs: mutual fund wraps, exchange traded fund wraps, separately managed accounts, unified managed accounts, and unified managed households.

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These types of TAMPs offer a range of services, from basic investment management to more advanced portfolio management and administration. For example, some TAMPs provide access to over 500 institutional strategies, including mutual funds, ETFs, and equities.

A TAMP can also offer advanced trading and portfolio management capabilities, such as a trade order management system (TOMS) that allows for easy scaling of investment models across multiple custodians. This can be particularly useful for financial professionals who want to streamline their operations and focus on providing value-added advice to their clients.

Here are some of the key features of different types of TAMPs:

Ultimately, the type of TAMP that is right for a financial professional will depend on their specific needs and goals. By understanding the different types of TAMPs available, financial professionals can make informed decisions about which platform to use and how to best serve their clients.

BITRIA is a prominent cryptocurrency TAMP that enables financial and investment advisors to actively manage accounts for clients who want to invest in Ether, Bitcoin, or other cryptocurrencies.

Cryptocurrency accounts are a relatively recent innovation, as cryptocurrency itself is a recent invention.

Using a TAMP like BITRIA can be beneficial for finance firms or professionals, as they can enjoy a few advantages, including the ability to actively manage accounts for clients.

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SMArtX is a relatively young TAMP company, founded in 2017. It's impressive to see a company build its TAMP entirely in-house.

The company's technology platform has earned an award, making it a notable player in the financial services and wealth management industries. With a highly scalable and modular infrastructure, SMArtX caters to specific operational needs of finance professionals.

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Choosing a TAMP involves considering several factors to ensure it meets your needs and those of your clients. You should evaluate the TAMP's investment capabilities, total solution set, and experience in delivering to advisors. A TAMP's expertise and services should help you scale and build a better business, executing your professional goals.

Advisors should ask crucial questions like whether the TAMP has expertise and services that will help them scale and build a better business. They should also consider the nature of their potential business relationship with the TAMP, looking for a business partner that assists them with all aspects of their business service, due diligence, technology, business consulting, and other solutions.

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Here are some commonly used criteria for choosing a TAMP:

TAMPs were first developed in the 1980s, revolutionizing the financial advising landscape with technology that may seem rudimentary by today's standards.

Forty years later, TAMP technology has advanced substantially, offering a broader scope of investment solutions and greater customization.

Today's TAMPs are much more flexible than their predecessors, allowing financial advisors to find a TAMP that aligns with their unique strategies, needs, goals, and budgets.

This flexibility is a far cry from the rigid and limited options available in the 1980s, when TAMPs were first introduced.

Here's a brief timeline of TAMP evolution:

The advancements in TAMP technology have made it easier for financial advisors to streamline processes, automate tasks, and gain insight into portfolio performance, freeing them up to focus on offering value-added advice.

Choosing the right turnkey asset management platform (TAMP) can be a daunting task, but understanding the key factors to consider can make all the difference. Advisors should look for a TAMP that offers flexibility in investment options, as some TAMPs provide a wide array of investment strategies, while others offer a curated selection that complements the advisor's existing strategies.

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A TAMP's ability to streamline operations and maximize efficiency is crucial for advisors who want to focus on high-value activities like building relationships and offering personalized financial guidance. By outsourcing investment management and back-office tasks, advisors can free up time to focus on what matters most – their clients.

Advisors should also consider the cost-effectiveness of a TAMP, as some providers may charge additional fees for certain services. The right TAMP should be viewed as a business partner, assisting the advisor with all aspects of their business, from due diligence to technology and business consulting.

Here are some key criteria to consider when choosing a TAMP:

By considering these factors and doing thorough research, advisors can find a TAMP that meets their needs and helps them achieve their professional goals.

TAMP providers have come a long way since their development in the 1980s. Today, they offer a broader scope of investment solutions and greater customization than ever before.

Forty years after their inception, TAMP technology has advanced substantially. Modern TAMPs are much more flexible, offering a wide range of investment options and greater scalability.

Alden COVE is a notable example of a TAMP solution that stands out for its ability to streamline operations while delivering a bespoke level of service. It offers unparalleled flexibility, whether you prefer to manage your own investment strategies or fully outsource your investment management.

Some of the key features of Alden COVE include advanced trading and portfolio management, account opening and back-end support, integrated billing, reporting, and accounting, and hands-on support from a seasoned investment team.

There are many TAMP providers available, including large, mid-sized, and boutique options. Here are some notable examples:

When choosing a TAMP, it's essential to consider the total solution set and experience the TAMP is delivering to the advisor. Advisors should ask crucial questions like "do they have expertise and services that will help the advisor scale and build a better business?" and "is the TAMP compatible with their clients' investment philosophy?"

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A TAMP can provide compliance support to help you stay on top of evolving regulations and ease your administrative burdens.

Compliance features can include satisfying regulatory requirements and keeping up with industry best practices.

Some TAMPs offer built-in compliance features to help you stay compliant.

A TAMP can help you reduce the risk of non-compliance and free up time to focus on other areas of your business.

Many TAMPs provide access to over 500 institutional strategies, including mutual funds, ETFs, and equities.

A TAMP can offer advanced trading and portfolio management capabilities, such as a trade order management system (TOMS).

This allows you to easily scale your investment models across multiple custodians and customize your rebalancing parameters.

Some TAMPs provide account opening and back-end support, including prefilled forms, compliance, and custodial delays.

A TAMP can offer integrated billing, reporting, and accounting within one easy-to-use platform.

This streamlines your administration and helps you consolidate your billing, reporting, and accounting.

Some TAMPs are built to scale with your business, offering flexible investment options and robust administrative support.

A TAMP can provide hands-on support from a seasoned investment team, including model/UMA creation, business development, and asset manager introductions.

Some TAMPs offer operational support, including the entire process of administrating, funding, and maintaining clients' accounts.

This can save hundreds of hours for the advisor and help streamline the onboarding process.

A TAMP can provide marketing support, including marketing collateral and materials, client communications pieces, and market and investment commentary.

Some TAMPs offer advisor training, including comprehensive workshops for every level of advisor.

This can help advisors learn best practices for conducting appointments with clients and building a risk-managed portfolio.

When choosing a TAMP, it's essential to consider the total solution set and experience the TAMP is delivering to the advisor.

Advisors should ask crucial questions, such as whether the TAMP has expertise and services to help them scale and build a better business.

They should also consider the nature of their potential business relationship with the TAMP provider.

Some key criteria for choosing a TAMP include flexibility, scalability, cost-effectiveness, customer service, security, and integration with other systems.

Here are some key features to look for in a TAMP:

Some TAMPs offer robust advisor technology, including an integrated tech stack, comprehensive planning and proposal tools, and back-office management.

A TAMP can provide a central hub for all the systems an advisor needs to run a modern practice.

Some TAMPs offer after-sales support, including tech support, administrative support, and onboarding training.

This can be a crucial factor in choosing a TAMP, as it can impact the advisor's ability to run their practice efficiently and effectively.

TAMPs are available in both off-the-shelf and customized varieties, often privately labeled, which means clients may not be aware that a third party is handling their investments.

TAMPs provide base technology and additional "back office" support, such as automated alerts, asset tracking, and reporting, as well as proposals, wealth management tools, compliance services, and investment policy statements.

Typically, TAMPs charge between 0.45% and 2.5% for their services, which can be a significant cost for some firms.

TAMPs offer many benefits, but they also have some potential drawbacks to consider, including cost, loss of control, limited customization, and client perception.

Some clients may have reservations about allowing a third party to manage their investments, so it's essential to address their concerns early on and explain the advantages of using a TAMP.

TAMPs can help advisors save time and focus on what matters most, but they also require careful consideration when choosing the right one.

Advisors should ask crucial questions like whether the TAMP has expertise and services to help them scale and build a better business, and whether the TAMP is compatible with their clients' investment philosophy.

Here are some commonly used criteria for choosing a TAMP:

By considering these factors, advisors can make an informed decision about which TAMP is right for their practice and provide the best possible service to their clients.

TAMPs have revolutionized the financial advising landscape, and their scalability is a key benefit. Only 12% of financial advisors are satisfied with their current growth rate, but TAMPs can help close this gap.

TAMPs can strengthen your ability to scale your business by streamlining asset management and administration, freeing up your time to focus on growth-oriented initiatives, ensuring expert asset management, and strengthening client relationships. This can lead to more referrals and increased client retention rates.

A TAMP like Alden COVE offers unparalleled flexibility, allowing you to manage your own investment strategies or fully outsource your investment management. It also provides advanced trading and portfolio management, account opening and back-end support, and integrated billing, reporting, and accounting.

The benefits of using a TAMP include outsourcing investment management, increased efficiency through automation, reduced investment costs, simpler compliance and risk management, and greater transparency into asset tracking.

Having a well-planned succession strategy in place can make a significant difference in the long run. This is especially true for advisory firms looking to sell or merge their company.

A TAMP can help advisory firms become more productive and profitable, which can be a major selling point for potential buyers or new investors.

This improved performance and attractive balance sheet can allow shareholders to command a higher price for their business.

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Seamless Scalability is a game-changer for financial advisors looking to grow their businesses. Only 12% of advisors are satisfied with their current growth rate, but a TAMP can help close this gap.

A TAMP can strengthen your ability to scale your business by streamlining asset management and administration, freeing up your time to focus on growth-oriented initiatives, and ensuring expert asset management even as your AUM increases.

By outsourcing investment management and back-office tasks, you can free up time to focus on what matters most. This is especially true with a flexible TAMP solution like Alden COVE, which offers unparalleled flexibility in investment management.

Alden COVE's advanced trading and portfolio management system allows you to easily scale your investment models across multiple custodians and customize your rebalancing parameters. This is just one of the many benefits of choosing a TAMP like Alden COVE.

Here are some key benefits of using a TAMP for scalability:

By choosing a TAMP like Alden COVE, you can ensure that your practice has access to top-tier technology and investment management expertise all in one. This can help you scale your business efficiently without adding unnecessary overhead.

TAMP compliance and support are crucial aspects of a turnkey asset management platform. A TAMP's compliance and risk management protocols should meet industry standards and adhere to regulatory requirements, ensuring that due diligence processes for selecting investment managers and monitoring investment risks are of the highest caliber.

Staying on top of constantly evolving regulations can be daunting, but TAMPs with built-in compliance features can help satisfy regulatory requirements and keep up with industry best practices. This can ease administrative burdens, reduce the risk of non-compliance, and allow advisors to focus on other areas of their business.

TAMPs can also provide operational support, including the entire process of administrating, funding, and maintaining clients' accounts, streamlining the onboarding process and saving hundreds of hours for the advisor. Some TAMPs charge platform fees based on the total value of client accounts, which can range depending on the provider.

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Using a TAMP can significantly reduce the liability for poor investment performance. This is because the advisor is not directly accountable for underperforming investments.

With a TAMP, the strategist is responsible for underperforming investments, not the advisor. This means that if a client's investment performs poorly, the advisor can work with the client to identify a new strategist, rather than taking the blame themselves.

This can be a huge relief for advisors who want to focus on providing value-added advice to their clients, rather than worrying about the performance of individual investments. By outsourcing investment decisions to a TAMP, advisors can transfer some of the risk and liability to the platform provider.

Here are some key benefits of reduced liability with a TAMP:

Having the right compliance protocols in place is essential for any financial advisor. A TAMP's (Third-Party Administrator) compliance and risk management protocols should meet industry standards and adhere to regulatory requirements.

Industry standards and regulatory requirements are constantly evolving, but a good TAMP will have due diligence processes in place to select investment managers and monitor investment risks. This ensures that your clients' assets are protected and your business is compliant.

Staying on top of regulatory changes can be a significant burden, but a TAMP with built-in compliance features can help ease this administrative task. By automating processes and providing tools for compliance and risk management, a TAMP can reduce the risk of non-compliance and free up your time to focus on client relationships.

Here are some key advantages of using a TAMP for compliance support:

By choosing a TAMP with robust compliance and risk management protocols, you can ensure that your business is operating within the bounds of the law and industry standards. This will give you peace of mind and allow you to focus on what matters most – building strong relationships with your clients.

A TAMP's investment philosophy plays a crucial role in determining the type of TAMP you'll use. Knowing your and your clients' stance in the investment selection process will help avoid mistakes or misunderstanding later.

To align with your investment philosophy, seek out a TAMP that matches your views. According to example 4, it's essential to pin down your investment philosophy before looking at TAMPs.

A TAMP's approach can be determined by its ability to handle client assets, reflecting your investment philosophy. In example 3, it's mentioned that finance professionals should do their due diligence and know as much as they can about a TAMP before outsourcing investment management.

Here are some key considerations when evaluating a TAMP's philosophy and approach:

By choosing a TAMP that aligns with your philosophy, you can ensure that your clients' investments are managed in a way that aligns with their goals and risk tolerance.

A TAMP is an all-in-one solution for financial advisors that streamlines processes and creates more efficient operations.

Advisors can access multiple accounts from one place, automate tasks such as trading, reporting, and billing, reduce manual data entry time, and gain insight into portfolio performance.

Choosing the right TAMP requires careful consideration, beyond just investment capabilities. Advisors should evaluate the total solution set and experience the TAMP is delivering to the advisor.

Matt Matrisian, Head of Client Growth at AssetMark, suggests asking crucial questions like, "do they have expertise and services that will help the advisor scale and build a better business so they can execute their professional goals?"

Advisors should also consider the nature of their potential business relationship with the TAMP provider. The right solution provider should be viewed as a business partner assisting the advisor with all aspects of their business service.

AssetMark is a prime example of a TAMP provider that focuses on empowering financial advisors to deliver personalized advice and build strong client relationships.

Here are some key features of AssetMark's TAMP solution:

By choosing the right TAMP, advisors can enjoy the benefits of a more efficient and scalable business, allowing them to focus on what matters most – delivering value-added advice to their clients.

A TAMP's philosophy is a crucial aspect to consider when choosing a turnkey asset management platform. It's essential to align your investment philosophy with the TAMP's approach to ensure a smooth and effective outsourcing experience.

The TAMP's investment philosophy will reflect how it handles client assets, so it's vital to do your due diligence and understand its stance. Your investment philosophy will determine the type of TAMP you'll need, so it's essential to pin down your approach before looking at TAMPs.

RIAs, the primary users of TAMPs, can expect a high level of service and efficiency from a tech-enabled RIA. If you're an RIA, you'll want to choose a TAMP that aligns with your investment philosophy and provides the level of service your clients expect.

Here are some key aspects to consider when evaluating a TAMP's philosophy:

By considering these factors, you can choose a TAMP that meets your needs and provides a seamless outsourcing experience for your clients.

TAMP costs and fees can vary, but most charge between 0.45% and 2% of your clients' assets under management (AUM).

Research potential TAMPs thoroughly to ensure you and your clients are getting the best value.

TAMP fees are typically based on a percentage of your total AUM, ranging from 0.85% to 2.80%.

You'll need to consider your revenue stream when choosing a TAMP, as higher fees can translate to lower returns.

To put this into perspective, 20% of surveyed financial advisors believe using a TAMP can make expenses more scalable during a market crash.

Here's a breakdown of typical TAMP fee ranges:

Ultimately, it's essential to choose a TAMP that aligns with your business model and clients' AUM, ensuring you're getting the best value for your money.