Americas Best TAMPS 2024 - 5

2024 AMERICA'S BEST TAMPS
FROM NICHE TO NORMAL
We once treated automated wealth
management as fringe technology: More
sizzle than substance. We would leave
it to the visionaries to put their client
portfolios on autopilot: Real advisors did
everything by hand. Every client portfolio
was a mark of professional pride.
But then we started to see the results.
Those visionaries and their exotic
systems delivered results comparable
to the finest hand-picked portfolios.
In many cases, of course, they were
using the same strategies-only now,
delivered to every advisor willing to
explore outside expertise.
Compare it to the cloud computing
revolution. Data that had been locked
up in redundant servers was now free
to circulate around the world, powering
applications that can be accessed
anywhere. Those are the systems that
saved the industry when all the offices
were shut down and we needed to keep
working remotely.
Now, we all collaborate with clients and
colleagues in the cloud. It's not exotic,
it's normal. And more importantly, it's
not going away. Every VC with dreams
of disrupting the wealth management
industry is pouring their dollars into
robot-only alternatives.
They can't match what you can do.
Most of them will fail. But before they
go, they'll remain a drag on everything
from client retention to asset attraction
to advisory fees. They'll go on capturing
today's marginal Millennial and Gen Z
accounts before they can grow into
something more substantial.
Here's the good news: Human talent
can use the exact same tools and
efficiencies. The easiest way to start?
TM
Opening a relationship with a Turnkey
Asset Management Program: a TAMP.
STATE OF THE INDUSTRY 2024
Each and every year, this guide profiles
the most dynamic TAMPs on the
market-the best platforms available,
representing the majority of all assets
advisors use via automated portfolio
management techniques.
For our purposes, these are the only
TAMPs that matter. They run the
range from the trillion-dollar giants to
ambitious entities still experimenting in
their scope. Some focus on technology,
others act as consultants. They use
their platforms for the distribution of
professional expertise.
Whether you want to work with an
integrated set of investment models or
wide-open architecture, you'll find the
perfect platform here. This is the new
mainstream.
WHO QUALIFIES AS A TAMP?
Traditionally, a " TAMP " was a Turnkey Asset Management Platform,
but even expanding the acronym left a lot of people confused. They
might call themselves " model marketplaces " or " portfolio management
systems. " The names vary, but the function is the same.
For our purposes, TAMPs are technological platforms that support
asset management by distributing investment ideas and processes
to clients via their advisors. In theory, these platforms are intuitive
and easy to deploy, which is where the turnkey experience comes in.
Ideally, all you need to do is turn the key and go.
Lest you forget: Once you turn the key, you have the freedom to set
your own course. You control the speed and the direction. You choose
the automation features you want to rely on or not. Hate a routine
task like trade reconciliation or rebalancing? Push the button and let
the TAMP do the work. Love tax harvesting or maneuvering around
concentrated client positions? Don't push the button. You're in control.
Envestnet alone counts more than
$600 billion in platform assets and over
100,000 advisors across its ecosystem.
That scale feeds new innovation at the
core as the dominant platforms add
capabilities across the financial spectrum:
insurance, credit, multi-generational
wealth services, cash management.
Predictive finance is popular now, just
as " big data " account aggregation is
approaching full artificial intelligence.
CHANGE IS COMING
We've already seen some TAMPs
surrender to the call of the buyout:
Sawtooth absorbed into the insurancedriven
Simplicity Group not that long
after Orion and Brinker Capital came
together, with the blessing of private
equity backers. Last year, EQIS and 3D
were pushed together while AssetMark
bought Adhesion. There will be more
consolidation.
5
Americas Best TAMPS 2024

Table of Contents for the Digital Edition of Americas Best TAMPS 2024
