In an era where efficiency, scalability, and high-level client service are paramount, turnkey asset management programs (TAMPs) have moved from a niche offering to an essential tool for Registered Investment Advisors (RIAs), broker-dealers, banks, and family offices. These platforms streamline investment management and offer a suite of solutions that allow advisors to focus on their clients’ needs, while TAMPs handle complex back-office functions. With over $3 trillion in assets under management on TAMP platforms, according to recent data from America’s Best TAMPs report, the momentum toward outsourced asset management shows no signs of slowing down[^1].

The TAMP Evolution: From Fringe to Mainstream

A decade ago, TAMPs were relatively unknown and often dismissed as a novelty for “automated” investing. However, as demand for efficient portfolio management has surged, TAMPs have become a go-to solution for advisors seeking to provide high-quality investment services without the strain of in-house asset management. Outsourcing parts of the investment process has shifted from a fringe practice to a fundamental part of wealth management today. The 2024 report highlights that what once seemed like “exotic” technology is now mainstream, with even the largest firms embracing TAMPs to optimize their operations[^1].

This change is driven by several factors:

• Complex Market Needs: Managing diversified portfolios, handling tax optimization, and conducting due diligence on investment managers have become more complex and time-consuming.

• Client Expectations: Clients increasingly expect high-touch service and advanced technology, making TAMPs a natural fit for firms looking to stay competitive.

• Regulatory Pressures: Compliance requirements from bodies like the SEC and FINRA add further demands on RIAs and wealth managers, who need tools that simplify reporting and record-keeping while maintaining transparency[^2].

Why TAMPs are Essential for RIAs and Wealth Managers

TAMPs provide several unique benefits that have positioned them as critical resources for wealth managers today:

1. Streamlined Operations for Better Client Focus

By outsourcing investment management functions, advisors gain time to focus on building client relationships and expanding their services. According to America’s Best TAMPs, a typical advisory firm only has about 30% of its time left for client-facing activities after handling investment and compliance requirements. Using TAMPs allows advisors to delegate these tasks, increasing efficiency and improving client interactions[^1].

2. Access to Specialized Expertise and Technology

TAMPs provide access to specialized technology and investment models that wealth managers would otherwise struggle to build or maintain internally. For example, leading TAMPs offer services like tax optimization and model portfolios that can be tailored to individual client needs. As reported by Citywire, TAMPs serve as an all-in-one solution, providing RIAs with tools to manage portfolios more effectively while remaining agile and responsive to market changes[^3].

3. Scalability and Growth Potential

TAMPs enable RIAs to grow without adding substantial personnel or infrastructure, making it possible to scale with minimal operational drag. This is particularly valuable for firms looking to expand quickly or serve a larger client base. As InvestmentNews highlights, the scalability TAMPs offer is particularly beneficial for smaller RIAs and independent broker-dealers who may lack the resources to build extensive investment capabilities[^4].

4. Increased Fee Transparency and Cost Control

The modern investor is far more fee-conscious, demanding transparency around costs associated with wealth management. Many TAMPs provide a breakdown of fees, giving clients clear visibility into the costs of investment management. According to the 2024 report, this transparency not only builds client trust but can also create cost advantages by consolidating various investment management and operational fees into a single, predictable cost structure[^1].

5. Adaptability for a Range of Investment Models

Whether advisors prefer model portfolios, Unified Managed Accounts (UMAs), or Separately Managed Accounts (SMAs), TAMPs offer flexible investment structures to meet a variety of client needs. This adaptability allows advisors to maintain a personalized approach, as they can choose the investment model that best aligns with each client’s goals. A report by FINRA emphasizes the importance of flexibility and customization in modern wealth management, a demand that TAMPs are uniquely positioned to fulfill[^5].

TAMPs Across the Financial Landscape

While TAMPs are widely used by RIAs and independent broker-dealers, their utility extends to banks, family offices, and other financial entities. Each type of institution leverages TAMPs differently:

• RIAs: RIAs use TAMPs to access sophisticated investment management solutions without having to bear the cost of hiring in-house asset managers. This allows them to focus more on financial planning and relationship management, which are highly valued by clients.

• Broker-Dealers: For broker-dealers, TAMPs simplify compliance, reporting, and portfolio management, enabling them to provide high-level investment services in a heavily regulated environment.

• Banks and Trusts: Banks leverage TAMPs to expand their service offerings, particularly for high-net-worth clients, while keeping operational overhead low.

• Family Offices: Family offices use TAMPs for investment customization, enabling them to manage complex, multi-generational wealth structures efficiently and with a higher degree of specialization[^1].

The Future of TAMPs: Integration with Fintech and Beyond

The intersection of fintech and wealth management is shaping the next wave of innovation for TAMPs. As the 2024 America’s Best TAMPs report indicates, robo-advisor technology and automated investment processes are being integrated into TAMPs, allowing advisors to further streamline their services. This combination of automation with a human advisor’s personalized approach is often seen as the ideal model for modern wealth management. According to a 2022 InvestmentNews article, wealth management firms adopting this hybrid model report higher client satisfaction and retention rates[^4].

The Wealth Advisor’s survey found that 92% of advisors who outsourced their portfolio management functions during the COVID-19 volatility in 2020 reported increased satisfaction and efficiency. As a result, the hybrid model appears well-positioned to shape the future of the TAMP industry, blending the convenience of digital solutions with the nuanced expertise of financial advisors[^1].

Conclusion: Why Advisors Should Embrace TAMPs

For wealth managers and RIAs, TAMPs have become more than just a helpful tool—they are essential to staying competitive in an industry that demands both innovation and efficiency. By partnering with TAMPs, advisors can deliver top-tier service, maintain flexibility in their investment strategies, and scale operations without sacrificing quality or transparency.

In 2024 and beyond, TAMPs are expected to continue growing, with more advisors seeing the advantages of streamlined operations, transparent fee structures, and access to best-in-class technology and expertise. The move towards TAMP adoption isn’t just a trend—it’s the foundation of a scalable, client-focused, and resilient wealth management business.

By choosing the right TAMP partner, advisors can future-proof their practices, respond more effectively to client needs, and stay ahead in a rapidly evolving financial landscape.

Footnotes

[^1]: “America’s Best TAMPs 2024,” The Wealth Advisor.

[^2]: “The Importance of Transparency in Wealth Management,” SEC.

[^3]: “Citywire’s Guide to TAMPs for RIAs,” Citywire.

[^4]: “TAMPs and the New Age of Wealth Management,” InvestmentNews, 2022.

[^5]: “FINRA Guidelines for Investment Flexibility and Advisor Customization,” FINRA.