Wealth Advisor Magazine June 2024 Edition - 30

TAMPS
America's Best
TAMPs 2024
E
very year, the Wealth Advisor
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-in
our ranking of America's Best TAMPs.
TAMPs- traditionally, turnkey asset
management programs-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.
These TAMPs run the range from
trillion- dollar giants to ambitious entities
still experimenting in their scope.
Some focus on technology; others act as
consultants. They use their platforms to
30 | JUNE 2024
distribute 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.
Using TAMP technology to distribute
investment ideas will take us
places the creators of mutual funds and
exchange-traded funds barely could
have imagined. Investors have real
access to the best ideas available, more
efficiently than ever, no matter where
they live and work or whoever happens
to be their advisor of record. And that's
a great thing-as long as you're the one
making that relationship happen and
making it work.
THE FUTURE IS HERE
Behind all the hype, every robo-advisor
app is a way of delivering pre-prepared
investment models remotely. That's
the exact domain of the outsourced
portfolio platform. The only difference?
Robots are purely automation, but a
TAMP is stronger with a human advisor
behind the wheel.
An advisor with access to TAMP
systems can push many traditional
responsibilities of running client money
out to third-party experts, or just let the
robots follow their automated rules. The
robots do a lot of the heavy lifting, at a
fraction of the cost, and human advisors
intervene as needed to make sure everything
is a perfect fit for human clients.
Delegating this labor means advisors
can concentrate on what they do
best-managing especially sophisticated
investment strategies, providing
tailored financial planning services,
or focusing on the intricacies of their
client relationships. Many use the extra
hours to prospect additional accounts,
dropping the facade of competing with
the world's top asset managers and
marketing themselves more effectively.
Others might opt to spend more time
with family, favorite causes, or hobbies.
That's good too.
Early adopters have been successfully
applying outside investment
accounts to their own client accounts
for years. They've built new business
processes around that proposition: taxes,
customization, socially responsible
or " impact " approaches, planning-driven
solutions, and so on.
Others are still on the fence, watching
nervously as robots eat their lunch.
There's still time to get the upper hand
on the future-to wield industry disruption
as a competitive weapon. After all,
if other advisors have what you need,
why spend a fortune reinventing the
wheel? Bring their expertise in, trading
them a tiny piece of your fee income for
a little of their excess capacity.
You can stop supporting redundant,
commoditized operations and redeploy
your resources to what you most want
to do. That's a win for you. Other advisors
monetize their capacity without
having to capture client assets in an
already hypercompetitive landscape.
That's a win for them. And your clients
get world-class solutions, with a front
end they like and trust. That's a win for
everyone.
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Wealth Advisor Magazine June 2024 Edition

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