What’s the New Status Quo for Investments?

ChangePath: Investment Platforms 101

The outsourced investment management approach began ever so slowly, but as the industry responded to the challenges and regulations of recent years, advisory firms embracing turnkey asset management platforms (TAMPs) has reached critical mass.

How many are embracing TAMPs? Around $3 trillion is running on TAMPs, pushing out traditional in-house portfolio construction assets under management (AUM).

Has your firm made the move to adapt or are you a laggard? At a minimum, TAMPs simplify and create efficiencies while granting access to larger scale offerings. This is reason alone why TAMPs are the new status quo in our industry. Its capabilities are unparalleled and the allocation of resources where you would traditionally manage can be automated while increasing your firm’s processing due diligence. It’s a win-win for advisors seeking more efficiencies and more quality time to acquire and nurture existing clients.

Are TAMPs New? Hardly. TAMPs can be traced back to the Prudent Investor Acts years ago, which gave legal fiduciaries the right to outsource investment management decisions to asset management professionals while still remaining responsible for the client relationship.

What Are the Benefits of Outsourcing Tasks? Multi-level. First, you have one platform monitoring and aggregating performance regardless of the third-party company. It’s a game-changer, pulling multiple capabilities into a single platform for user ease. Second, you also get the advantage of having one independent group working with other independent advisors, which equates to layered, independent due diligence. These money managers—and this platform—are always working in your clients’ and firm’s best interests.

Ethically, it’s the way your firm should function. TAMPs create an opportunity for independent advisors to match capabilities of large firms without ethical baggage, which is better for clients and advisors.

How Long Will It Take? Migrating to a TAMP can be implemented in as little as 90 days. It’s not without effort, however, because the efficiencies alone can free up resources for mergers and acquisitions or enhance other revenue streams.

Why are TAMPs Becoming More Mainstream? Robo platforms are becoming less desirable to highly-sought-after clients. Why? Robo platforms simply provide the allocations without any personal touch, support or relationship. And, those highly desired clients have complex needs—they need the validation of human reassurance they’re headed in the right direction … robo platforms can’t provide this. Robos don’t offer tailored strategies or explanations of how you connect the strategies. They’re shelf products and one size is made to fit the masses. That, combined with no true customer experience, shines a bright light on independent advisors and TAMPs.

TAMPs help firms deliver cohesive solutions, coveted money managers, streamlined processes all at lower costs without sacrificing your firm’s revenue. This is created to increase revenue and decrease effort.

Today’s your day. Optimize your firm with a TAMP. Enhance your productivity and in turn, your firm could boost revenue.

Let’s talk. Call the ChangePath sales team today at 888.798.2360 to see exactly how a TAMP could optimize your time by enhancing your productivity and, in turn, your revenue.


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Information courtesy of Trust Advisor’s 2017 America’s Best TAMPs.


FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. Advisory Services offered through Change Path, LLC an Investment Advisor. 16733 – 2017/6/8

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