goRIA’s list of turnkey asset management providers
Check out this list of some turnkey asset management providers (TAMPs) that financial advisors look to when outsourcing asset management
With today’s technological advancements, financial advisors, insurance companies, broker-dealers, law firms and CPA firms never had it this good. Nowadays, turnkey asset management providers (TAMPs) can handle many administrative and back-office functions when it comes to managing clients’ investment accounts.
By using TAMPs, finance professionals can save time and increase their profitability. This is achievable by delegating the tedious tasks, so they can spend more time getting new clients and maintaining their relationships with current clients.
Since their introduction in the 1980s, TAMPs have also provided the added benefit of limiting investment firms’ liability in cases where the investment performance was less than ideal.
In this article, InvestmentNews provides a list of turnkey asset management providers in the USA.
Turnkey asset management providers to consider
Here are some turnkey asset management providers to consider for your asset management needs:
Envestnet
TAMP AUM: $4 trillion
website: envestnet.com
custodian: FNZ at present, but with plans to self-custody soon
type of program: TAMP, unified managed accounts (UMAs), model portfolios, portfolio management tools, financial planning solutions, data analytics and reporting
Possibly the leading provider of integrated portfolio, practice management, and reporting solutions for financial advisors and institutions, Envestnet is a popular TAMP.
Envestnet is renowned in the industry for its innovative technology solutions that help advisors streamline their operations and deliver personalized financial advice to clients. Currently, Envestnet remains a key player in wealth management, serving a broad range of clients and finance professionals.
SEI
TAMP AUM: $443.6 billion
website: SEI.com
custodian: self-custody with SEI Private Trust Co.
type of program: mutual fund wrap, no-load, style-specific mutual funds, ETF wrap, managed account solutions
SEI’s mission is to deliver technology and investment solutions that connect the financial services industry. SEI offers a range of programs that make investment processing, operations, and asset management more efficient. SEI boasts of its TAMP working with corporations, financial institutions and professionals, and ultra-high-net-worth families. They’ve made it their purpose to help power their clients’ growth and assist in making informed financial decisions that secure good financial futures.
AssetMark
TAMP AUM: $108.9 billion
website: assetmark.com
custodian: self-custodied by AssetMark Trust
type of program: model portfolios, UMAs, separately managed accounts (SMAs), and mutual fund and exchange-traded fund (ETF) strategies
Established in 1996, AssetMark is still hitting the mark when it comes to TAMPs. The company recently purchased another TAMP, Adhesion Wealth, for about $9.5 billion. Adhesion Wealth still operates under the same brand but mentions itself as an AssetMark subsidiary.
AssetMark is famed for its focus on empowering financial advisors to deliver personalized advice and build strong client relationships. The company’s technology platform and investment solutions are designed to help advisors efficiently manage client assets and grow their businesses.
Brinker Capital
TAMP AUM: $40 billion
website: orion.com/brinker-capital
custodians: Charles Schwab, Fidelity Custody & Clearing
type of program: TAMP, SMA, UMA, advisor-directed, strategist models
Established in 1987, Brinker Capital was officially known as CLS Investments, LLC. The company was bought by Orion Advisor Solutions in June 2020. To date, Brinker Capital provides investment advice to private clients like non-high-net-worth and high-net-worth individuals, pooled investment vehicles, and pension and profit-sharing plans. They also service the public sector and have some municipal government clients, charitable institutions, educational savings and ABLE plans.
Orion Portfolio Solutions
TAMP AUM: $15.6 billion
website: orion.com/wealth-management
custodian: TD Ameritrade
type of program: TAMP, mutual funds, ETFs, SMAs, financial planning
The company offers a robust suite of services, including portfolio accounting, performance reporting, trading, and compliance tools. With its focus on innovation and technology, Orion Portfolio Solutions enables advisors to efficiently manage client portfolios and deliver personalized financial advice.
The company’s platform is known for its user-friendly interface and customizable features.
Orion Portfolio Solutions has experienced significant growth in recent years, owing partly to its recent acquisition of Brinker Capital.
SMArtX
TAMP AUM: $27.4 billion
website: smartxadvisory.com
custodians: Fidelity, Charles Schwab, TD Ameritrade
type of program: TAMP, SMAs, UMAs, model portfolios, and custom portfolio solutions
In an industry where decades-long companies operate and dominate the market, SMArtX is one of the younger TAMP companies around. Founded in 2017, SMArtX advisory solutions built its TAMP 100% in-house.
The company boasts an award-winning technology platform for firms across the financial services and wealth management industries. With its TAMP, finance professionals can have a highly scalable, modular infrastructure catered to their specific operational needs. SMArtX Advisory Solutions provides a complete solution or supplements existing technologies to provide firms with a modern, streamlined middle and back-office operations application.
Adhesion Wealth
TAMP AUM: $90.8 billion
website: adhesionwealth.com
custodians: TradePMR, Fidelity, Charles Schwab
type of program: TAMP, rebalancing and trading tools, UMAs, SMAs, model portfolios, data and analytics
Recently acquired by AssetMark, Adhesion Wealth was founded in 1999 by Barrett Ayers and Trey Reinhard. Adhesion Wealth is known for its focus on customization and flexibility, and their TAMP enables advisors to tailor their services and meet the unique needs of their clients.
With a commitment to excellence and a reputation for delivering high-quality solutions, Adhesion Wealth has established itself as a trusted partner for advisors seeking to enhance their practice. It strives to deliver the best outcomes for its clients.
A (nearly complete) list of turnkey asset management providers
The above list of turnkey asset management providers is a sample of some of the major, well-known TAMPs, but there are many more. Here are more TAMPs worth looking into for your asset management needs:
In terms of size and market presence
In terms of investment strategies
| Traditional | Technology-driven | Specialized strategies |
| Absolute Capital | Intelliflo | Matson Money |
| Brookstone Capital Management | FusionIQ | Strategy Marketplace |
| Cantor Fitzgerald Investment Management | Greenrock Research | Valor Capital Management |
In terms of services offered
| Comprehensive wealth management | Financial planning focus | Offers innovative solutions |
| EQIS | ARQ Wealth Advisors | Dale K. Ehrhart |
| Geowealth | Advyzon Investment Management | DT Investment Partners |
| EverSource Wealth Advisors | Ashton Thomas Private Wealth | Forum Financial Management |
| Advisor OS LLC | UX Wealth Partners |
Here are other turnkey asset management providers to consider. They didn’t blow us away, but they do deserve a mention:
List of niche turnkey asset management providers
As part of your investment research, here are some of the best niche TAMPs for specialized needs:
- Addepar for family offices
- Enfusion for hedge funds
- InvestCloud for wealth management firms
These platforms offer tailored solutions to meet the specific requirements of different types of clients.
To get the best outcomes, include these with this list and other lists of the top TAMPs to consider.
Then choose only that TAMP that aligns best with your specific needs.
What should an advisor look for when choosing a TAMP?
With the many TAMPs available, how should an advisor make their choice? Matt Matrisian, Head of Client Growth at AssetMark, suggests, “While TAMPs offer many benefits, choosing the right one requires careful consideration. Beyond just investment capabilities, advisors need to evaluate the total solution set and experience the TAMP is delivering to the advisor.”
Advisors should ask crucial questions like, “do they have expertise and services that will help the advisor scale and build a better business so they can execute their professional goals?”
Another important consideration is the nature of their potential business relationship. “The right solution provider should be viewed as a business partner assisting the advisor with all aspects of their business service, due diligence, technology, business consulting, and other solutions vs solely providing asset management access,” Matrisian says.
Advisors should also check if the TAMP is compatible with their clients’ investment philosophy. “As it relates to investments, a TAMP’s investment solutions should complement the advisor’s existing strategies and investment beliefs,” Matrisian says. “Additionally, they need to consider their preference for flexibility versus comprehensiveness in investment options. Some TAMPs offer a wide array, while others provide a curated selection.”
Criteria for choosing a TAMP
So, what criteria should finance professionals use to base their choices? The turnkey asset management platform you choose not only saves time but serves as the asset manager for your clients’ investments.
The way a TAMP handles client assets also reflects your investment philosophy. That’s why it’s crucial to do your due diligence and know as much as you can about a TAMP before outsourcing investment management. Here are some commonly used criteria for choosing a TAMP:
1. The types of investment strategies the TAMP can handle
There are TAMPs that can be relied upon to handle several types of investment strategies, while there are some TAMPs that specialize in one or a few. Here are some of the investment strategies that a TAMP can manage:
- growth investing
- passive investing
- active investing/investment strategies
- value investing
- managing 401(k) plans
- ESG investing
- stocks
- commodities
- bonds
- buy and hold
- dollar cost averaging
Choose the TAMP that has the right services and can take on the responsibility of handling your clients’ asset management needs.
2. The cost of the programs
Cost is an important factor when choosing a TAMP, as higher fees translate to lower returns. Most TAMPs charge between 0.45% and 2% fees for their services.
To know which TAMP’s fee percentage is feasible for your practice, consider your revenue stream.
Take a second and think about your revenue characteristics – will the bulk of it be from financial planning fees or from AUM?
3. The TAMP’s investment philosophy
As a finance professional, knowing your and your clients’ stance in the investment selection process determines the sort of TAMP you’ll be using. If you and your clients are uncertain of this, pinning down your investment philosophy before looking at TAMPS will help avoid mistakes or misunderstanding later. Once you’re clear on this, seek out the TAMP that aligns with your and your clients’ investment philosophy.
4. The TAMP’s custodians
Another important criterion for your choice of TAMP is where they custody client assets. There are TAMPs that self-custody, and there are those that use one, and others that use several custodians. Check first if the TAMP you’re considering uses custodians that are familiar and ones that your clients trust.
Also, check that the TAMP and/or their custodians have requirements such as minimum account sizes or a minimum required level of assets to use their services. If your client’s assets do not meet these requirements, you’ll have to either manage these smaller accounts yourself or choose another TAMP.
5. The technology
The technology that a TAMP uses is crucial to your and your clients’ service experience. In terms of the tech, here are some essential elements to look for in a TAMP:
- client portal
- maintenance tools
- risk tolerance questionnaires
- account aggregation features
- smooth account opening process
Thanks to computing power improving exponentially over time and the advent of the internet, TAMPs have become more than just trading platforms. Get to know what’s in the full tech package of a potential TAMP.
Some components can save you money and do away with other subscription services that incur a monthly cost. It’s also helpful to check if the TAMP will work well with your current tech stack.
6. The after-sales support
As they say in marketing, it always pays to cover your…After-Sales Support. The support can mean a lot of things but in TAMPs, you need to look at:
- tech support – this includes onboarding training, help desk availability (is it 24/7 or restricted to office hours?), and self-service troubleshooting and resources
- administrative support – this can include specific investment management process tasks like choosing the appropriate investment strategy and asset allocation
What does the future look like with TAMPs? For one, there’s a new kid on the block of financial advisors called the “holistic financial planner” who may become one of the TAMP’s heaviest users. In this video, finance expert Michael Kitces discusses the cost implications of TAMPs and other interesting tidbits.
Which type of finance professional uses TAMPs the most?
It helps to know which type of financial advisor or finance-related professional uses TAMPs, so you are aware of what clients may expect of you and your services. TAMPs are mostly used by RIAs, so clients can and will expect the level of service and efficiency a tech-enabled RIA may typically provide.
Turnkey asset management providers have indeed been around for decades with solutions to help finance professionals streamline their operations. Outsourcing investment management to TAMPs can help advisors focus on client relationships and other aspects of their business.
Investment advisors can choose from the largest turnkey asset management providers on this list, or smaller TAMPs – if they are the better choice in terms of cost and effectiveness in handling client accounts. While it can potentially lead to cost savings and operational efficiencies, outsourcing to a particular TAMP should be carefully evaluated based on your client’s needs and goals outlined in their financial plans.
Check out our goRIA section for more articles on turnkey asset management providers and other RIA-related topics.
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