What is a TAMP?
A Turnkey Asset Management Platform (TAMP) is a third-party service that provides financial advisors with outsourced investment management capabilities. TAMPs offer a complete solution including model portfolios, trading execution, rebalancing, reporting, and often compliance support, allowing advisors to focus on client relationships and financial planning.
TAMP Services Typically Include
Investment Management:
- Research and portfolio construction
- Model portfolio development
- Trading and execution
- Rebalancing
- Performance reporting
Operational Support:
- Account administration
- Billing and fee calculation
- Client reporting
- Custodian integration
Compliance Assistance:
- Investment policy oversight
- Best execution monitoring
- Regulatory support
Major TAMP Providers
| Provider | Minimum AUM | Focus |
|---|---|---|
| AssetMark | $50,000 | Full-service TAMP |
| Orion Portfolio Solutions | Varies | Tech-forward solutions |
| SEI | $250,000 | Institutional quality |
| Envestnet | $25,000 | Large advisor network |
| Riskalyze Autopilot | $25,000 | Risk-based portfolios |
TAMP Pricing Models
Basis Point Fees:
- Typically 10-50 basis points on AUM
- May decrease with higher AUM
- Often tiered pricing
Components:
- Platform fee
- Investment management fee
- Trading/execution costs
- Technology fees
Benefits of Using a TAMP
For Advisors:
- Focus on client relationships
- Access to institutional investment management
- Reduced compliance burden
- Scalable operations
For Clients:
- Professional portfolio management
- Consistent investment process
- Institutional-quality strategies
- Comprehensive reporting
Considerations
- Cost impact on client fees
- Investment philosophy alignment
- Customization limitations
- Brand and relationship ownership
