What Is a Turnkey Asset Management Program?

A Turnkey Asset Management Program (TAMP) is a specialized platform designed to support financial advisors. TAMPs offer a streamlined approach to managing client investments and back-office operations. They enable financial professionals to enhance service offerings and optimize practice management.

Defining a Turnkey Asset Management Program

A TAMP is a comprehensive, tech-enabled platform that allows financial professionals, such as registered investment advisors (RIAs) and wealth managers, to outsource investment management and administrative tasks. The “turnkey” aspect means the solution is ready-to-use, providing a complete package of services and technology. This allows advisors to implement sophisticated investment strategies without building the entire infrastructure themselves.

TAMPs help financial advisors balance client-facing activities with the operational demands of managing investments. By delegating tasks like investment research, portfolio construction, and trading, advisors can redirect their time and resources. This outsourcing reduces administrative burdens and provides access to diverse investment strategies. A third-party provider handles these functions, acting as a sub-advisor or co-advisor. This allows advisors to manage client portfolios more efficiently and focus on client relationships, financial planning, and business development.

Key Services and Features

TAMPs bundle a variety of services and features. These include:
Investment management services, offering access to diverse strategies, pre-built model portfolios, and asset allocation tools. TAMPs handle ongoing portfolio rebalancing and trade execution, aligning portfolios with client objectives and market conditions, leveraging professional expertise.
Technology platforms, providing integrated tools for efficient practice management. These include client relationship management (CRM), robust portfolio reporting, performance tracking, client portals, and internal dashboards. Many TAMPs integrate document management systems for secure storage and regulatory compliance.
Streamlined back-office operations, including automated billing and fee calculation, account opening, ongoing maintenance, and compliance support with regulatory reporting and industry standards.
Integration with multiple custodians, allowing advisors flexibility in where client assets are held. This simplifies data flow and provides a consolidated view of client holdings across different custodial platforms.

Operational Framework

A TAMP connects the financial advisor, the TAMP provider, and the custodian. Advisors use the TAMP platform to select investment strategies for clients. Once chosen, the TAMP handles trade implementation, ongoing monitoring, adjustments, and rebalancing based on market conditions or strategy changes.

Clients access dedicated portals to view investment performance, statements, and documents. They receive consolidated reports offering a comprehensive view of their investments, even those held outside the TAMP. This transparency keeps clients informed without daily management involvement.

Data flows seamlessly between the advisor, TAMP, and custodian. Advisors provide client information and directives to the TAMP, which communicates with the custodian for trade execution. The TAMP processes and feeds data back for advisor review, covering performance, billing, and compliance. This integrated system minimizes manual data entry and ensures accuracy.

Integrating a TAMP involves a setup period to transition client accounts and configure advisor preferences. The TAMP’s infrastructure alleviates administrative burdens, allowing advisors to focus on client relationships and business development. Advisors retain oversight for client communication and financial planning, while the TAMP manages delegated investment and operational aspects.

Common Structures and Providers

TAMPs are structured in various ways. Some are proprietary, offered by larger financial institutions like custodians or broker-dealers for their affiliated advisors. Other TAMPs operate as independent providers, serving a broader range of advisory firms. Hybrid models also exist, combining proprietary and independent offerings or blending services.

TAMP fee structures typically involve charges based on a percentage of assets under management (AUM), often ranging from 0.45% to 2.5% annually. Some providers may use flat fees or offer unbundled pricing for specific services. These fees generally cover investment management, technology, and back-office support.

TAMP providers span several categories. Custodians frequently offer TAMP solutions to advisors. Large broker-dealers also provide TAMPs to their networks. Specialized technology firms and independent asset managers have developed TAMP platforms, focusing on robust technology and diverse investment strategies. Major providers include Envestnet, SEI, AssetMark, and Orion Portfolio Solutions.