what is a turnkey asset management program tamp 
a turnkey asset management program offers a fee account technology platform that financial advisers broker dealers insurance companies banks law firms and cpa firms can use to oversee their clients investment accounts turnkey asset management programs are designed to help financial professionals save time and allow them to focus on providing clients with service in their areas of expertise which may not include asset management tasks like investment research and portfolio allocation in other words tamps let financial professionals and firms delegate asset management and research responsibilities to another party that specializes in those areas understanding turnkey asset management programs tamps delegating the role of asset manager to a tamp can help financial professionals and firms to increase profitability by freeing up more time for tasks like attracting new clients and meeting with clients in person these programs can also save their clients money because developing a proprietary asset management system can be expensive especially if the company does not already have one in place tamps also handle account administration billing and reporting using tamps also helps wealth advisers limit their risk of being sued for poor investment performance by outsourcing investment selection and management firms can transfer part of that risk to the tamp major turnkey asset management program providers include envestnet sei assetmark investment services brinker capital and orion portfolio solutions types of turnkey asset management programs tamps mutual fund wraps exchange traded fund wraps separately managed accounts unified managed accounts and unified managed households are five types of turnkey asset management programs a mutual fund wrap account is a tamp that offers many mutual funds with the fees encompassing wrapping around all of the investor s mutual fund trading rather than having to pay individual fees for each mutual fund thereby reducing overall fees exchange traded fund etf wrap accounts work in the same manner as mutual fund wrap accounts but investment choices are limited only to etfs as opposed to mutual funds separately managed accounts sma are geared to high level investors those with a significant amount of capital available for investing smas operate similarly to mutual funds except where a mutual fund is owned by pooled investors a separately managed account is owned only by one investor unified managed accounts hold a variety of different investments that are allocated to their own bucket one bucket would have stocks for example while another bucket would have bonds and another would have derivatives umas aggregate the entirety of an investor s assets but allow them to be managed separately as the name implies a umh is designed to handle the investments of multiple individuals of one household this would include parents and children and possibly grandparents if they are in the same household special considerationstamps are available in both off the shelf and customized varieties they are often privately labeled meaning that it is not apparent to clients that a third party is handling their investments in addition these programs serve all types of investors from mass market lower net worth clients to ultra high net worth individuals tamps provide base technology and additional back office support such as setting up automated alerts asset tracking and reporting and other dashboard features the service might also include supplying proposals wealth management tools compliance services investment policy statements and might also conduct a risk analysis tamps typically charge between 0 45 and 2 5 for their services 1these benefits can greatly improve an investment advisory firm but they come with costs and managers need to determine whether that additional cost is worth what they get in return which includes time saved to be able to generate more business advantages and disadvantages of tampstamps provide a significant advantage to advisors as they allow for the outsourcing of a variety of functions such as reporting that frees up a significant amount of time for an advisor that they can use to gain more clients or spend more time focusing on their client s investments which benefits the client in the end tamps can also be cost effective by outsourcing functions to a tamp an advisor will avoid the cost of having to set up such functions in house which can include hiring more employees providing more benefits and so on in the end this could reduce their overhead savings that they can technically pass onto their clients as an investor it s important to understand your fee structure if your advisor uses a tamp check to see if the fees they pay are passed onto you or not if so that could be a disadvantage making your investments more costly 