Back-office operations in most industries aren’t a topic of conversation with clients. We don’t ask our dentists, real estate agents, or even surgeons about their staff, their process, or whether they outsource certain functions of their business. In the financial industry though, transparency is the cornerstone of trust. We’re here to make transparency easier.
In our many years as a leading outsourcing provider, we’ve heard many times from financial advisors that their clients welcome the extra products and services from outsourcing. But, just in case your clients ask, whenever possible, we like to share with you, resources that can help you. Today, we’re sharing fourteen questions that clients may ask about third-party asset management and sample answers.
Explaining the benefits of a TAMP can help your clients feel good about your services and the increased value they get with you as an advisor.
Here are seven client-centric benefits of a TAMP that you should be ready to explain to your clients.
TAMPs provide clients of financial advisors with access to a wider range of investment options and portfolio solutions than might be available through individual advisors. TAMPs can help advisors access new and diverse investments that may not be available through traditional channels, providing clients with more opportunities to diversify their portfolios and achieve their goals.
By leveraging TAMPs, advisors can access institutional pricing and enjoy cost efficiencies they might not have had otherwise. A TAMP’s ability to centralize and streamline operations also translates into lower operational costs for fee-based advisors, which may be passed on to clients. In some cases, the streamlined process may lead directly to a lower bill or a higher value for the cost, as the advisor has more time to focus on client touchpoints and account initiatives.
Advisors must follow the fiduciary rule and act in the best interest of their clients. TAMPs provide research and analysis on investment strategies and options that can help advisors make informed investment decisions that are aligned with their clients' goals and objectives. By leveraging a TAMP’s due diligence capabilities, advisors can offer their clients a higher level of research and confidence in their investment strategies.
TAMPs can also improve communication and transparency between advisors and their clients with a rich collection of client-facing content. By centralizing client reporting and data, TAMPs can offer clients a more complete view of their investments and performance. This enhanced level of transparency helps increase visibility to strengthen the client-advisor relationship.
Additionally, TAMPs can help advisors increase the amount of time they spend on client-facing initiatives by streamlining back-office operations they currently manage in-house. By reducing administrative tasks, TAMPs free up advisors to spend more time with clients, build stronger client relationships, and deliver personalized financial advice.
TAMPs help advisors deliver a better client experience with access to supportive and user-friendly investment tools. This could include features like financial planning software, risk management tools, and investment analytics. By leveraging TAMPs' technology capabilities, advisors can offer their clients a more modern and sophisticated financial planning experience.
Advisors should be connected to a community of peers as part of their due diligence process. TAMPs can provide access to external resources and a community of advisors that can help you deliver better outcomes for your clients. TAMP providers often have teams of research professionals and business consultants who can offer education and resources on specific investment solutions, asset classes, and growth strategies. Advisors can tap into these resources and deliver a higher level of expertise and guidance to their clients.
If you have clients that want to dive further into how TAMPs impact investments, you can share specific examples. Here are five examples of solutions and features that you might use to help support your work on a client’s account.
Proactive communication goes a long way in helping your clients feel informed while reducing the chance of confusion, assumptions, or unspoken concerns. Client satisfaction is key to your profitability and how you build your business.
It’s very possible your clients have never heard of a TAMP, so “turnkey asset management platform” (or “turnkey asset management program”) may not mean very much to them, nor third-party asset management. If they have heard of TAMPs, they may not know how a TAMP works—much less how it can make you more effective as an advisor.
Some clients may feel curious about why you are choosing to go with a TAMP. If you didn’t use one before, why start using one now? A good advisor needs to be completely transparent about expenses and fees for their clients. When you can explain the value of the tools you use, your clients will have fewer concerns and understand how a TAMP helps reduce the cost in the long run.
Here is a comprehensive list of questions you may get from clients and how you can provide some clarity.
AssetMark is a leading TAMP that provides a wide range of investment solutions and services, enabling financial advisors like you to deliver more value. By outsourcing investment management and leveraging AssetMark's technology, you can focus on building relationships and providing comprehensive financial planning advice to your clients.
AssetMark can help you decide which tools and services are right for your practice. To learn more about what a TAMP can do for you, request a consultation with our team.
AssetMark is a leading provider of extensive wealth management and technology solutions that help financial advisors meet the ever-changing needs of their clients and businesses.
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AssetMark, Inc. ("AssetMark") is a leading provider of extensive wealth management and technology solutions that help financial advisors meet the ever-changing needs of their clients and businesses. The information on this website is for informational purposes only and is intended as an overview of the services offered to financial advisors, not a solicitation for investment. Information has been drawn from sources believed to be reliable, but its accuracy is not guaranteed and is subject to change.
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