Outsourcing Investment Management: TPAM vs. TAMP

Many financial advisory firms want the silver bullet solution to outsourcing investment management so the focus can be on client interactions and business development. However the jargon in this outsourced space has become very confusing so here is a brief summary of our understanding.

TPAM vs. TAMP


TPAM – Third Party Asset Manager

  • A TPAM will provide investment research, product selection, modeling, trading, and investment committee oversight on managed assets.
  • A TPAM will most likely NOT provide oversight nor management of outside, non-managed assets such as a participant’s 401k plan or 529 college fund for a child.
  • A TPAM will NOT provide reporting, reconciliation, billing services nor the software programs for you to generate reports, bills, rebalance, trade or research investments.
  • TAMP – Turnkey Asset Management Program provides:

  • Investment research
  • Investment product selection
  • Trading
  • Modeling
  • Rebalancing
  • Billing of your investment advisory and other fees
  • Billing of their investment management fees for managed accounts
  • Investment committee
  • Reconciliation of the portfolio accounting system to produce performance
  • Creation of performance reports for clients
  • Communicate performance reports to the clients via email, portal, mail
  • Management and licensing of tech: portfolio accounting, client portal, transactional aggregation software, rebalancer
  • Process completed new account forms with your custodian
  • A TAMP may provide most or all of the following software programs:

  • Use of their reporting system to retrieve investment performance reports
  • Allow your clients to use the TAMPs client portal to view performance reports online
  • Use of their new account form filling software
  • A TAMP will most likely NOT provide oversight nor management of outside, non-managed assets such as a participant’s 401k plan or 529 college fund for a child.

    TAMPs appear more appealing to most firms. The list of providers is long and includes firms like BAM, Loring Ward, Morningstar, and Envestnet. Currently, these firms have no interest in buying your business, becoming your successor, nor replacing your company brand with theirs. There are other TAMPs that offer the same services and have the intention of becoming your successor. Knowing what you want to achieve is very important when you call the TAMPs to do your research.

    If you want to learn how a TAMP changes how you operate, you can click HERE to join us for a Boost Call to accelerate your decision on TAMPs. Or you can DIY by purchasing our DIY Directory of Outsourced Providers , which includes a list of TAMPs that you can call and research.

    We hope this helps! Seeking operational excellence? Drop us a line by connecting HERE