Americas Best TAMPS 2024 - 7

2024 AMERICA'S BEST TAMPS
end they like and trust. That's a win for
everyone.
THE TAMP ADVANTAGE
As you discover aspects of your
business that you do better than any
robot or outside expert, you can use
TAMP infrastructure to share your
skills. A true TAMP provider offers
wealth advisors a complete investment
management program through the
advisor's sponsoring firm, whether it's
a broker-dealer, registered investment
advisor, or trust company.
The TAMP facilitates investment
selection and management, allowing
you to offload time-consuming backoffice
functions -investment research,
manager due diligence, portfolio
construction, rebalancing, reconciliation,
performance reporting, tax optimization
and statement preparation -and
enabling you to focus more on gathering
assets, acquiring new clients, and
servicing your existing accounts.
TAMPs are fee-based account
relationships that can be implemented
in as little as 90 days. That's the
" Turnkey " part. Many provider firms
offer these capabilities on a customized
managed account platform, permitting
independent wealth advisors and firms
to manage client investments easily.
THE OUTSOURCING EDGE
The number of advisory firms embracing
TAMP operations has now reached
critical mass. According to industry
analysts, client assets run on TAMP
platforms today are approaching $3
trillion, eclipsing traditional in-house
portfolio construction AUM.
Survey after survey shows that once
advisors are done creating financial
plans, managing client relationships,
going after new business and dealing
with back-office and compliance issues,
they only have 30% of their workweek
left for investment management.
Thirty percent of your time is not nearly
enough to create and update investment
lineups and watchlists, build customized
portfolios and monitor, rebalance and
harvest tax losses. But what if you could
use those hours more efficiently? Instead
of managing every aspect of your clients'
portfolios, consider outsourcing those
allocations and asset choices.
Spend too much time tinkering with
client portfolios and you end up in a
reactive posture addressing client fears
and desires-especially when markets
are highly volatile. Outsourcing everyday
investment management means
turning more of that 30% to proactively
communicate your calming wisdom
during turbulent markets, whether
through client meetings, webinars,
videos, podcasts or blog posts.
After all, you already use outside
managers, even if it's only the people
who maintain the indices that drive
passive funds. The more you outsource,
the more you can focus on the activities
that show off your true value.
GET BACK TO WORK
In a BlackRock survey of about 500
advisors back in May of 2020, 92% of
advisors who outsourced during the
COVID-19 market volatility said doing
so improved their practice. Seventy
percent were able to spend all their time
with clients because they didn't have to
worry about investments, and 9 out of
10 won new business as a result.
So how do you transition into
outsourcing those portfolio
management tasks? There are a variety
of ways to do it, depending on what you
and your clients need:
TM
* Model marketplaces offering
prepopulated portfolios of low-cost
mutual funds and ETFs
* Actively managed model portfolios
comprising individual securities and
SMAs directly managed by wellknown
institutional asset managers
* UMAs offered by TAMPs that can
consolidate all these outsourced
solutions in one place
There is an increasing tendency to
reward advisors for communication and
holistic financial planning, reducing the
role of actual portfolio selection to a
simple utility.
THE RISE OF MODEL
PORTFOLIOS
The traditional alternative to creating
personalized portfolios from the ground
up is time-consuming, difficult to
implement effectively, and tough to
scale in practice. Model portfolios, on
the other hand, offer guidance while
giving advisors the flexibility to optimize
portfolios and achieve better client
outcomes-an attractive alternative to
buying one multi-asset pool for many
advisors.
Third-party model portfolios mean
you can responsibly unbundle all your
investment management responsibilities
to outside experts. Like mutual funds
or SMAs, model portfolios may focus
on a single asset class such as equity
or fixed income. But models typically
combine multiple assets, providing
income or maximizing after-tax returns.
As fund selectors focus on enhancing
their product offerings to balance a
changing landscape and meet evolving
client needs and interests, more are
turning to model portfolios.
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Americas Best TAMPS 2024

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