What does TAMP mean in finance?

TAMP stands for turnkey asset management program, a platform that handles investment implementation tasks like portfolio construction, trading, rebalancing, and performance reporting on behalf of a financial advisor. The advisor stays in control of the client relationship and overall financial advice, while the TAMP manages the operational and back-office work behind the portfolio.

How much does a TAMP cost?

TAMP fees typically range from roughly 0.25% to 2.5% of assets under management, depending on the provider, model complexity, and whether services like billing and reporting are included. An advisor charging a 1.00% advisory fee might pair it with a TAMP charging another 0.30% to 0.60%, bringing the client's total cost to around 1.30% to 1.60%, with each layer clearly disclosed.

How is a TAMP different from working with a single asset manager or fund?

A single asset manager or mutual fund usually runs one strategy or product, while a TAMP is a broader platform that can implement multiple models, strategists, and asset classes across an advisor's whole client base. This lets an advisor offer a more comprehensive, multi-strategy approach without building separate relationships and infrastructure for each piece.

When did TAMPs start, and who uses them today?

TAMPs got their start in the 1980s as an outsourced alternative to advisors picking individual stocks or funds for clients, and they were first distributed mainly through broker-dealers. Today, independent RIAs, financial planning firms, and broker-dealers of all sizes use TAMPs, especially advisors who want to deliver holistic planning without building an in-house investment and operations team.

TAMP for Financial Advisors: What It Is and How It Works

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TAMP for Financial Advisors: What It Is and How It Works | Dunham