Reviewed by Sep 30, 2020| Updated on
Turnkey asset management systems are designed to help financial professionals save time and allow them to concentrate on providing clients with services in their areas of expertise, which does not include asset management tasks such as investment analysis and portfolio allocation.
In other words, TAPMs enable financial professionals and firms to assign asset management and research responsibilities to another party that specialises in these fields.
## Importance of a TAMP
Delegating the position of the asset manager to a TAMP will help financial professionals and companies improve productivity by freeing up more time for tasks, such as recruiting new clients and meeting clients in person. Such systems will also save its clients money because implementing a proprietary asset management system can be expensive, particularly if the organisation does not already have one in place. TAPMs also handle the accounting, billing, and recording of accounts.
Utilising TAMPs also help wealth advisors reduce their risk of being sued for poor investment performance. By outsourcing investment selection and management, firms can transfer part of the risk to the TAMP.
## Examples of TAMP
Exchange-traded fund wraps, mutual fund wraps, segregated managed accounts, consolidated managed accounts and consolidated managed households are five kinds of turnkey wealth management systems that usually charge fees between 0.85% and 2.80%, based on the number of assets under control and the size of the investments retained.
TAPMs are accessible in both off-the-shelf and customised varieties. They are often labelled privately, which means that it is not clear to clients that a third party is handling their investments. In addition, these programs serve all types of investors, from mass-market, lower net-value clients to ultra-high net-value individuals.