Why It’s Time to Overcome Your TAMP Hesitations as a Financial Advisor

Turnkey asset management platforms (TAMPs) have become increasingly popular in recent years. These innovative platforms allow financial advisors to outsource their investment management and streamline their administrative tasks.

As of 2018, over half of advisors used TAMPs, and the number of assets managed under TAMPs doubled from 2017 to 2022. While a growing number of advisors are leveraging TAMPs to focus more on client relationships, some have yet to make the transition. These slow adopters’ concerns include TAMP fees, loss of control, and fears about clients’ perceptions.

If you’re an advisor who is on the fence about embracing a TAMP, keep reading. Below, we’ll explain how TAMPs work and what benefits they provide. After that, we’ll address advisors’ most common concerns and how to overcome them—with a focus on how SharpeMetrix eliminates many traditional TAMP drawbacks.

What Is a TAMP?

A Turnkey Asset Management Program (TAMP) is a platform that allows financial advisors to outsource various aspects of their investment management, including their:

• Asset allocation
• Portfolio construction
• Trade execution
• Performance monitoring
• Rebalancing
• Compliance management

Some TAMPs connect advisors to seasoned investment teams, who can assist with portfolio model creation, unified managed accounts (UMA), and institutional or high-net-worth clients.

Some may also offer support for administrative tasks, such as client onboarding, billing, reporting, and marketing.

By taking these tasks off advisors’ hands, TAMPs allow them to focus more on what they do best—building relationships with clients, delivering personalized financial planning, and growing their practice—all while ensuring their clients receive best-in-class investment management.

Related Reading: What is a TAMP and Should You Use One?

What Are the Benefits of Leveraging a TAMP?

TAMPs provide financial advisors with many advantages. Some of the most significant benefits include:

More time to spend with clients – According to a Fidelity study, the number one reason advisors outsource their investment management is to provide more value to their clients. Advisors who use TAMPs spend significantly less time on research, due diligence, and trading, freeing them up to dedicate more time to value-added, client-facing activities.

Improved client retention and satisfaction – Today’s clients want more than just investment returns. They expect holistic, personalized financial planning from their financial advisor. TAMPs give advisors the tools and support they need to satisfy these expectations, enhancing their clients’ loyalty and satisfaction.

Higher quality investment strategies – TAMPs offer advisors access to curated lists of third-party investment strategies. By employing these strategies, advisors of all sizes can offer their clients institutional-quality asset management, improving their investment outcomes and bolstering their service value.

Operational efficiency and consistency – Since TAMPs streamline several administrative tasks, they can boost advisors’ operational efficiency. Additionally, some TAMPs can automate routine tasks, such as rebalancing or reporting, reducing the risk of human error and enhancing their consistency.

Scalability – Without the right resources and infrastructure, financial advisors may struggle to scale up their operations while ensuring high-quality service. TAMPs allow advisors to take on more clients and expand their assets under management (AUM) without worrying about these concerns.

Increased revenues – By using a TAMP, advisors can enjoy economies of scale that would be difficult to achieve on their own. Meanwhile, TAMPs’ operational efficiency and scalability can help advisors boost their profitability over time.

Enhanced practice valuation – With 40% of financial advisors retiring over the next ten years, it’s crucial that advisors have a solid exit strategy in place. Adopting a TAMP can increase advisors’ practice values by enhancing their profitability and making their businesses more attractive to potential buyers.

5 Common Hesitations Financial Advisors Have About TAMPs

Now that you know the benefits of leveraging a TAMP, you may be wondering why some financial advisors hold off from adopting them. Here are a few questions that contribute to advisors’ hesitation:

• “How will I justify adding another set of fees to my client’s overall costs?”
• “How will I update my fees and agreements with my existing clients?”
• “Why would I outsource my asset management if I’m good at it?”
• “I’ve marketed myself as an expert money manager, so how do I pivot away from that?”
• “Does using a TAMP go against my fiduciary duty?”

Let’s take a closer look at these common apprehensions:

1. Incorporating an Additional Layer of Fees

Many advisors worry about the extra costs involved in using a TAMP. They may feel uneasy about introducing these fees to clients, particularly if they already charge investment management fees for their services.

2. Loss of Control Over Investment Decisions

Some advisors have built their reputations on being seasoned portfolio managers. As a result, they may be reluctant to hand over control of their clients’ investment decisions to a third party.

3. Concerns About Fiduciary Responsibility

Some advisors wonder whether outsourcing their investment management will compromise their fiduciary duty to their clients, especially if they lack understanding about their TAMP’s customization options.

4. Uncertainty About the Impact on Client Relationships

Hesitant advisors often worry that outsourcing to a TAMP will damage their relationships with clients. They may fear that their clients will question their involvement in investment decisions or feel confused about the role of a third-party manager, leading to a lack of confidence and trust.

5. Perceived Complexity of Implementation

As with many tech tools, transitioning to a TAMP platform may sound daunting to some advisors. They may worry about the complexity of the integration process, the subsequent learning curve, and how it will impact their existing business workflows.

How to Overcome Your TAMP Hesitations

If you relate to some of the concerns listed above, it’s important to know that you’re not alone. It’s completely normal to feel apprehensive about new technology. In fact, nearly half of business leaders cite employees’ resistance to change as their biggest challenge.

Many advisors who now reap the benefits of TAMPs initially shared similar concerns, but the ones who addressed them head-on now enjoy the enhanced efficiencies, deeper client relationships, and business growth that only TAMPs can provide.

Want to follow their lead and avoid falling behind? Check out these practical strategies to overcome the most common TAMP hesitations.

How to Justify TAMP Fees to Your Clients

Most TAMPs charge advisors fees for their services, typically as a percentage of AUM or through a monthly or annual subscription fee. Advisors often feel awkward about passing these fees on to their clients.

The key to overcoming this uneasiness is explaining the benefits your TAMP will bring to your clients. These benefits include:

Superior financial planning – By freeing up your time, a TAMP can help you develop a deeper and more holistic understanding of your clients’ finances. These insights allow you to craft tailored financial plans that help your clients achieve or surpass their goals.

Swifter strategy modifications – TAMPs make it easy to adjust clients’ investment strategies as their goals evolve, ensuring they receive satisfactory investment outcomes.

Insulation from market volatility – Financial markets are constantly in flux. Fortunately, TAMPs can automatically adjust your clients’ asset allocations and promptly rebalance their portfolios to account for these changes. During market downturns, these managed accounts typically enjoy much better outcomes.

Stronger communication – Advisors’ communication frequency has a direct impact on client satisfaction. According to a 2024 survey, only 22% of clients who hear from their financial advisors every four to six months are comfortable with their financial plans, compared to 71% of clients who receive monthly contact. Since TAMPs allow you to focus more time on client communication, they can lead to higher client satisfaction and confidence.

Broader scope of services – Lastly, TAMPs allow you to offer a wider range of services to your clients. With fewer investment management tasks on your plate, you can invest more time into financial planning, retirement planning, estate planning, and tax optimization.

By communicating these benefits to your clients, you can justify your TAMP fees with confidence. Your transparency will enhance clients’ trust and assure them that you’re using every tool at your disposal to further their financial goals.

The SharpeMetrix Advantage: Flat-Fee Pricing

SharpeMetrix eliminates the compounding fee problem entirely. Unlike traditional TAMPs that charge 0.85%–2.80% of AUM (fees that grow as your practice grows), we offer flat-fee pricing that protects your margins as you scale.

This makes the conversation with clients even easier: you’re not adding a percentage-based fee that compounds over time—you’re investing in institutional-quality portfolio management at a fixed cost that improves your efficiency and differentiation.

How to Maintain Your Sense of Control

If you’re used to managing investments on your own, you may worry about giving up control to a TAMP. However, simply choosing the right TAMP can put this fear to rest.

The best TAMPs provide transparency into their investment process, allowing you to maintain oversight while benefiting from professional management.

The SharpeMetrix Advantage: Full Transparency

SharpeMetrix provides complete visibility into our systematic methodology. Unlike discretionary TAMPs where portfolio managers make subjective decisions behind closed doors, our rules-based approach means you always know exactly how portfolios are constructed:

• See the specific factors driving each position
• Understand how alternative data signals contribute to stock selection
• Review factor exposures and risk characteristics
• Access detailed performance attribution

You’re not giving up control—you’re gaining a transparent, systematic process that you can confidently explain to clients. Plus, our approach eliminates manager risk: performance doesn’t depend on which portfolio manager is at the helm.

How a TAMP Can Strengthen Your Fiduciary Duty

If you’re one of the 66% of advisors who don’t fully understand how TAMPs work, you may worry that leveraging one could compromise your fiduciary duty. Fortunately, this couldn’t be further from the case.

As a fiduciary, your duty is to act in the best interests of your clients. Part of fulfilling that duty involves ensuring their investments are managed as well as possible with their long-term goals in mind.

A TAMP lets you access top investment strategies and institutional insights to grow your clients’ wealth, strengthening your fiduciary duty by ensuring their accounts are managed with the highest level of care and expertise.

The SharpeMetrix Advantage: Data-Driven Fiduciary Care

SharpeMetrix enhances your fiduciary duty through systematic, data-driven decision-making. Our approach:

• Eliminates emotional biases and behavioral errors
• Applies proven factors consistently across all market conditions
• Leverages proprietary alternative data for genuine informational advantages
• Provides full transparency so you can demonstrate prudent process

By using SharpeMetrix, you’re not just outsourcing portfolio management—you’re upgrading to a systematic, institutional-quality process that demonstrably serves your clients’ best interests.

Related Reading: 14 TAMP Features That Transform Your Practice

How to Speak Transparently About TAMPs With Your Clients

Some advisors fear that using a TAMP will harm their relationships with clients or cause clients to question the value of their role. While investment management was once the core of financial advisors’ responsibilities, their role has evolved significantly over time.

Today’s clients have different expectations than those of previous generations. Many view their advisors as trusted financial partners who can help them navigate the complexities of their financial lives.

For example, consider a client who is undergoing a divorce. As they navigate their overwhelming emotions, investment returns may be the last thing on their mind. However, this client is still likely to appreciate you checking in frequently and offering reassurance about their finances.

If you use a TAMP, you’ll be better positioned to proactively:

1. Conduct a comprehensive review of this client’s financial situation
2. Offer insights about how their finances will change after the divorce
3. Find out if they have any new goals or priorities to incorporate into their post-divorce financial plan
4. Update their financial plan accordingly, factoring in any child support and alimony payments, along with other details related to their divorce’s asset division

As you can see, using a TAMP can help you provide a much higher level of service than you could if you were solely responsible for your own investment management.

The SharpeMetrix Advantage: A Compelling Differentiation Story

With SharpeMetrix, you have a unique story to tell clients. Rather than using generic TAMP strategies that every advisor can access, you’re offering:

• Proprietary alternative data signals that provide genuine informational advantages
• Systematic, rules-based approach that eliminates emotional biases
• Enhanced quantitative factors refined beyond generic implementations
• Institutional-quality research typically reserved for the largest firms

This differentiation makes client conversations easier. You’re not just “outsourcing to a TAMP”—you’re providing access to sophisticated, data-driven strategies that most advisors can’t offer.

How to Integrate a TAMP With Minimal Disruptions

While most new technology comes with a learning curve, modern TAMPs are designed to be intuitive and seamlessly integrate into your practice.

The key is choosing a TAMP with:

• User-friendly interface
• Comprehensive onboarding support
• Ongoing training and resources
• Responsive customer service

The SharpeMetrix Advantage: Simplicity and Support

SharpeMetrix is built for ease of use. Our platform features:

• Clean, intuitive interface that works across all devices
• Straightforward model selection process
• Clear performance reporting and attribution
• Responsive support team to answer questions

We’ve designed our platform specifically for financial advisors, eliminating unnecessary complexity while providing the sophisticated analytics you need.

Comparing Traditional Approaches: SMAs vs. Traditional TAMPs vs. SharpeMetrix

When evaluating your options for portfolio management, it’s helpful to understand how different approaches stack up:

Traditional Separately Managed Accounts (SMAs)

Pros:

• Quality active management from institutional managers
• Personalization and tax management capabilities
• Transparency into holdings

Cons:

• High fees (typically percentage-based)
• Manager risk (performance depends on portfolio manager decisions)
• Limited differentiation (many SMAs use similar approaches)
• High account minimums

Learn more: SMAs vs TAMPs: Understanding Your Options

Traditional TAMPs

Pros:

• Operational efficiency and scalability
• Time savings for client-facing activities
• Professional portfolio management

Cons:

• Percentage-based fees (0.85%–2.80% of AUM)
• Generic strategies that don’t differentiate
• Discretionary decisions create manager risk
• Limited transparency into methodology

SharpeMetrix: The Best of Both Worlds

Advantages:

• ✓ TAMP efficiency and scalability
• ✓ SMA-level sophistication and differentiation
• ✓ Flat-fee pricing (not percentage-based)
• ✓ Systematic approach (eliminates manager risk)
• ✓ Proprietary alternative data (genuine informational edge)
• ✓ Full transparency into methodology
• ✓ Enhanced quantitative factors
• ✓ Rules-based consistency

SharpeMetrix bridges the gap: We deliver the operational benefits of TAMPs with the differentiation and quality of institutional SMAs—all at flat-fee pricing that protects your margins as you grow.

Real-World Success: How Advisors Benefit from SharpeMetrix

Advisors who’ve adopted SharpeMetrix report:

More time for client relationships – With systematic portfolio management handling the investment heavy lifting, advisors reclaim 10-15 hours per week for client meetings, financial planning, and business development.

Stronger differentiation – Alternative data signals and systematic methodology provide a compelling story that resonates with analytically-minded clients and sets advisors apart from competitors using generic strategies.

Better scalability – Flat-fee pricing means profitability improves as practices grow. Advisors can take on more clients without worrying about compounding TAMP costs.

Enhanced practice value – Systematic, documented investment processes make practices more attractive to potential buyers. The absence of key-person risk adds to valuation multiples.

Improved confidence – Full transparency into methodology means advisors can confidently explain portfolio construction to clients, prospects, and compliance officers.

Elevate Your Financial Advisory Practice With SharpeMetrix

In summary, TAMPs can help advisors strengthen their client relationships, expand their service offerings, and scale their businesses while maintaining excellent investment management behind the scenes.

Ready to reap the benefits of outsourcing your investment management? SharpeMetrix stands out for its:

Systematic, Data-Driven Approach – Rules-based methodology powered by proprietary alternative data signals and enhanced quantitative factors

Flat-Fee Pricing – Transparent pricing that protects your margins as you scale, unlike percentage-based TAMP fees

Full Transparency – Complete visibility into methodology, holdings, and performance attribution—no black boxes

Genuine Differentiation – Alternative data signals (earnings expectations, sentiment analysis, innovation metrics) that provide real informational advantages

No Manager Risk – Systematic approach ensures consistent factor application regardless of market conditions or personnel changes

Institutional Quality – Access to sophisticated research and portfolio construction typically reserved for the largest firms

By choosing SharpeMetrix, you get TAMP efficiency without the typical downsides—and you gain differentiation that helps you win and retain clients.

Next Steps:

• Learn what a TAMP is and how it works
• Explore 14 essential TAMP features
• Compare SMAs vs TAMPs
• View our methodology
• See live model performance

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Ready to overcome your TAMP hesitations and transform your practice? Start your free trial and discover how systematic, data-driven portfolios can differentiate your offering, protect your margins, and scale your business.