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When is it the Right Time to Upgrade Your TAMP?

By Antonio Neri on

Turnkey Asset Management Programs, or TAMPs, can provide a major advantage for investment managers and financial advisors. By the end of 2019, Forbes stated that TAMPs were expected to manage close to $4 trillion in client assets. With this in mind, it’s apparent that using outsourcing investment management is on the rise.

However, when it comes to your business, the responsibility of utilizing the benefits that come with TAMPs lies heavily on you. This is true for any kind of partnership – you only work as well as your counterpart allows you to. For this reason, we highly recommend regularly checking in with your investment partner and assess whether or not the relationship is working for you.

Although working with a TAMP is still fairly new to the financial industry, considering changing up your operations can help free up your time and your resources. If you feel that there might be room for improvement, you may want to evaluate how working with a Turnkey Asset Management Program is bringing value to your business. Ultimately, you should be seeing an improvement in office efficiencies, and growth in your client relationships and business success.

Or perhaps not.

If you’re not seeing the results that TAMPs have the potential to deliver, it may be the right time to upgrade your program. In this article, we will cover key questions and criteria you should review to help you evaluate your operations.

What is a TAMP?

In case you missed our article, “What is a TAMP and How Do They Work?”, and are in the dark about what a TAMP exactly is, here is a quick synopsis. After all, this is an imperative step in helping you get closer to maximizing your financial firm’s efficiency and growth.

Turnkey Asset Management Programs offer advisors a streamlined approach to account management. This supports the outsourcing of certain tasks so that the advisor can focus on areas of their expertise and importance. For example, reporting and accounting may fall under these tasks.

In addition to this, a TAMP can help advisors with due-diligence tasks that enhance their client relations and investment strategies. These include:

  • Investment research and selection
  • Portfolio rebalancing
  • Tax efficiency maximization

It’s important to note that these services are available through digital platforms. Having a web-based portal enables advisors to seamlessly access vital data, monitor all transactional activity in real-time, and generate reports as required.

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How to Know Your TAMP Needs Upgrading:

If your firm is operating without any hiccups and you’re seeing the results that you not only anticipated, but required too, then your TAMP may not be a problem. If you think there could be some room for improvement, you may want to take the following areas into consideration.

Shared Investment Policy

When reviewing your TAMP relationship, it’s vital to assess whether or not they align with your investment philosophy. This will ultimately drive the effect it will have on your business and operations. The reason for this is that your philosophy is the foundation for how you conduct your business. This is what sets you apart from your competitors, drives client acquisition, and is the pillar of your firm’s integrity.

For a TAMP to become strategic, its philosophy should mirror your own. For example, if you favor certain investment strategies over the other and your TAMP doesn’t share the same interest, a clear disconnect will occur. In turn, your clients and your investment strategies will suffer.

 

TAMP Efficiency

Technology is a great tool to help your firm enhance its efficiency and modernize tasks. Your TAMP is no different. With the right TAMP, operations can become smooth and streamlined that paves the way for success without roadblocks.  Of course, if you’re facing anything else than this, an upgrade is notably required.

As TAMPs exist on a digital platform, it’s essential to look at the technological benefits it provides. A few points to evaluate are:

  • Are you able to access all the services you need in one place or are third-party programs needed?
  • How does it integrate with your CRM?
  • Does it add to your financial planning strategies or detract from it?
  • Is it up to date with the digital world and your clients’ needs?

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Level of Support

Unfortunately, the digital world isn’t always a walk in the park in terms of navigation. Remember, your TAMP should provide you with a partnership and a certain level of support should be expected.

As TAMPs differ in their level of support, it’s important to assess if you’re getting what you need out of the platform or not. Do you know who to speak to if a problem arises or if you have a question about the application? Even if you may not need a dedicated team to assist you with product questions or services, it’s comforting to have this readily available to you and your fellow advisors.

Client Alignment

Your chosen TAMP should support the financial services your clients require. With the help of a TAMP, you can boost your client offering and help attract your ideal audience.

For example, digital-savvy millennials who are looking to invest align themselves with advisors who are using technology to their advantage. As a result, you are going to require a TAMP that has complex offerings to meet their unique needs. Similarly, high-net-worth investors can be attracted to your chosen TAMP based on strategic digital communication.

Growth Potential

If there is one specification that drives your TAMP upgrade, it should be how it helps grow your business. Are they helping you meet your business goals? Does it make it easier for your firm to expand through innovation and constantly developing content? If not, it’s time to upgrade!

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Final Thoughts

The digital world is constantly changing and so are your client demands. For this reason, it’s imperative for financial advisors and investment managers to stay on top of their outsourcing partnerships. When it comes to your chosen TAMP, it’s recommended to regularly check-in and evaluate how they’re helping you maximize your firm and your clients’ investments. If they’re failing to do so, an upgrade is evidently necessary.

Learn more today!

Schedule a demo and explore how the right reports, decision-enabling dashboards, and intelligent tools can help you drive growth and investor satisfaction.

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