How to choose a turnkey asset management platform
Some financial advisors take a hands-on approach when it comes to managing client assets. While this is a great practice, the hands-on financial advisor could make better use of their time instead of doing the back-office tasks and other administrative work involved in asset management. That’s where turnkey asset management platforms or TAMPs come in.
These platforms provide a more streamlined, efficient way for advisors to manage client accounts. A TAMP gives them the choice of outsourcing selected tasks so they can focus more of their time and energy on more important tasks.
In this article, InvestmentNews delves into the basics of turnkey asset management platforms. We’ll provide insight into questions like:
A turnkey asset management platform or TAMP is a wealth management tool and technology platform or program for fee accounts. Financial entities and professionals like broker-dealers, insurance companies, law firms, RIA firms, CPA firms, and banks can all use TAMPs.
Turnkey asset management platforms help financial professionals save time, allowing them to focus on servicing clients within their areas of expertise, which may not include asset or portfolio management tasks. TAMPs allow financial professionals and firms to outsource investment management tasks like investment research and portfolio allocation to another party that specializes in those areas.
One of the features of a TAMP is doing due-diligence tasks. Some of these tasks can include investment research and selection, portfolio rebalancing, and maximizing tax efficiency. Typically, advisors pay a fee to the firm that manages the TAMP and offers turnkey services. Fees from turnkey service providers are usually based on a percentage of the total
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