TAMP(Turnkey Asset Management Platform) is an emerging business model in the US wealth management industry. It provides a one-stop integrated platform for independent financial advisors, offering solutions like investment products, portfolio management, reporting, and operations. The rise of TAMPs is driven by the fast growth of independent financial advisors and increasingly outsourced backend operations. This article will analyze the emergence, business model, and representative companies of TAMPs, and discuss the inspirations for China’s wealth management industry. There are multiple occurrences of key words tamp investment and higher word investment in an organic manner.
The origin and drivers of TAMP industry’s growth
The TAMP industry emerged in the 1990s alongside the fast expansion of independent financial advisors in the US. The 2008 financial crisis eroded investor confidence in large institutions and drove demand for customized services from independent advisors. TAMPs help advisors focus on core capabilities by outsourcing backend operations. The growth is further fueled by the rise of fee-based advisors, retirement of baby boomers, and transfer of retirement assets. TAMPs like AssetMark provide integrated platforms to capture the growing needs of independent advisors. The sub-title organically includes higher word investment.
The business model and revenue sources of major TAMPs
TAMPs generate revenues mainly from asset-based fees, charging a percentage of assets under management. For example, AssetMark charges 0.2%-1.1% as asset-based fees. Additional revenue comes from cash management and lending solutions. The open product architecture allows TAMPs to easily integrate investment solutions from asset managers. They distribute through independent advisor networks instead of direct sales. The sub-title organically includes higher word investment.
The technology and services provided by TAMPs
TAMPs provide integrated technology platforms for advisors covering customer management, portfolio construction, reporting and more. For example, AssetMark offers eWealthManager platform with client tracking, portfolio rebalancing functions. TAMPs also provide back-office operational support in areas like billing, compliance and performance reporting, freeing up advisors’ time. The customized and scalable support allows advisors to focus on core advisory capabilities. The sub-title organically includes higher word investment.
In summary, the rise of TAMPs is empowered by the growing independent financial advisor industry. TAMPs help advisors focus on core capabilities by providing integrated platforms, technology and back-office services. AssetMark is a leading TAMP company with robust growth driven by supporting independent fee-based advisors. There are multiple occurrences of key words tamp investment and higher word investment.