2015 AMERICA`S BEST TAMPS

Transcription

2015
AMERICA’S
BEST
TAMPS
YOUR INSIDE LOOK AT THE BEST TURN-KEY
ASSET MANAGEMENT PROGRAMS FOR
FINANCIAL ADVISORS, FAMILY OFFICES
AND BROKER-DEALER REPRESENTATIVES.
2015 America’s Best TAMPs
Table of Contents Executive Summary:
TAMPS Represent Wealth Management Done “Right”........................................ 1
Why Outsource Investment Management?............................................................ 1
Trends in Outsourced Investment Management.................................................. 5
The Current TAMP Universe.........................................................................................10
Analyzing the TAMP Providers....................................................................................11
Selection of the Ideal TAMP..........................................................................................14
Conclusion: The Age of the TAMP is Finally Here.................................................15
Glossary of Terms..............................................................................................................17
2015 America’s Best TAMPs Comparison Chart.............................................25
Adhesion Wealth Advisor Solutions, Inc. ...............................................................30
AssetMark............................................................................................................................31
AT Financial Advisors......................................................................................................32
Citi Investor Services.......................................................................................................33
Envestnet.............................................................................................................................34
EQIS........................................................................................................................................35
Flexible Plan Investments, Ltd.....................................................................................36
FolioDynamix.....................................................................................................................37
FTJ FundChoice, LLC........................................................................................................38
Lockwood Advisors, Inc.................................................................................................39
LRJ Investment Management.....................................................................................40
Mt TAMP ..............................................................................................................................41
SEI ..........................................................................................................................................43
Sowell Management Services.....................................................................................44
About the Editors and Contributors.........................................................................45
© 2014 The Trust Advisor, All Rights Reserved. Any reproduction all or in part is strictly prohibited
without consent.
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retention or sale of any product or securities.
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T
urn-key Asset Management Programs (TAMPs) are the “win- Executive Summary:
win-win” solution for utilizing outsourced investment man- TAMPS Represent Wealth
agement to deliver enhanced capabilities and results for Management Done “Right”
clients, advisors, and wealth management firms. Despite uneven
growth over the last thirty years, TAMPs have now turned the corner
and are ready to become the dominant model of investment management within the retail wealth management space.
Outsourced investment management is now a best practice for most
trust companies, broker-dealers, registered investment advisor firms
(RIAs) and family offices.TAMPs feature a platform with selected and
vetted investment manager options, while supporting functions
that range from reportingto compliance to operations. TAMPs allow
for more efficient client processing, more variety in money manager
styles and products, and improved profitability over most in-house
solutions. TAMPs enable financial advisors of all stripes to talk with
their clients more often and effectively through mobile and webbased channels. Clientsare receiving faster information and greater
self-service options, leading to more satisfied and loyal customers.
All this outsourced capability allows the financial advisor to focus on
what they do best - interact with the client to provide the greatest
value to the relationship.
This guide is intended to help the various types of wealth management firms understand and learn about TAMP capabilities of both
large and innovative players. Individual wealth management firms
can then select the best TAMP model to successfully differentiate
the firm to attract more clients and assets.
F
inancial advisors are only paid for doing two things: creating relationships, and using those relationships to gather
more assets. Regardless of necessity, every other activity is
effectively uncompensated. TAMP platforms allow financial advisors to complete those non-compensated activities with optimum
efficiency and focus on revenue enhancement.
Why Outsource Investment
Management?
It has been suggested that the typical advisor spends just one quarter of their time on client service, meetings and prospecting. The
other three-quarters of an advisor’s time (e.g., writing proposals, designing portfolios, evaluating managers, retrieving and preparing
documents, and other paperwork-intensive activities) add nothing
to the advisors’ compensation or a firm’s revenue. There is a better
methodology.
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TAMPs provide a variety of services, but all TAMPs have two major
aspects in common:
1) They provide a platform for wealth advisors on which to manage client relationships.
2) They provide third-party professional-grade (institutional) asset managers to manage the clients’ assets.
The TAMP provides a wealth-management platform to manage the
holistic client relationship, transact and send client funds to the asset manager,report to the client through statements, and interact
with the client online and through mobile technology. Advisors
no longer have to balance between meeting with clients, managing money, and researching mutual funds, ETFs and different asset
management firms. Hiring a TAMP to conduct back-end reporting
functions, administrative, accounting, and investment management solutions means more time spent with clients. Advisors can
now focus on building and acquiring relationships that will increase
revenuesfar more than the cost of outsourcing.
TAMPs allow for access to some of the best asset managers in the
world. Instead of selecting the stock of Company A or the bond from
Company B, financial advisors using TAMPs sit on the same side of
the table with clients. Together they review the performance of both
well-known and innovative asset managers, picking and choosing
among various portfolios for their clients. Focusing on the asset allocation mixallows for better client risk management, which remains a
major concern since the 2008 financial crisis. Stronger client-advisor
relationships provide a greater reason for clients to aggregate more
assets with someone who knows their holistic financial picture, rather than just a “stock-picker!”
Some advisors find the discussion of switching to an outsource provider from in-house investment management very difficult. Clients
should view the TAMP as a facilitating tool that the advisor uses to
open accounts, execute trades, and generate account reporting.
Framing the TAMP in this manner will ease the minds of investors
who may be wondering why the old in-house method was neither
optimal nor cost-efficient.
The platforms, built for managing clients’ needs directly, allow for
more efficiency in every step of the client interaction. Using a TAMP
means more time with clients, more assets gathered, and more referrals per marketing dollar.
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T
here are five varieties of account types offered by TAMPs.
With each account type, the type of investment, associated
fees, and the role of the TAMP changes significantly. The division of fees between the TAMP, individual investment asset manager and sponsor also changes with each type of program. In order of sophistication and complexity, the five TAMP programs are:
Different Types of
Outsourced Investment
1. Mutual Fund Wrap Accounts: Essentially a basket of mutual
funds selected from the pre-screened professional managers
on the TAMP platform. The platform provider has performed
due diligence on these managers to ensure they are utilizing a
specific investment strategy. The client is charged a single fee
that covers all the mutual funds on the platform at a lower rate
than if the investor acquired and traded the funds directly. The
managers provide institutional-class mutual fund shares to the
TAMP for further credit to the client. Mutual-Fund Wrap Accounts require a minimum amount of assets per client, which
has fallen from $100,000 a few years ago to around $25,000
today, and even less in qualified accounts.
2. Exchange-Traded Funds (ETF) Wrap Accounts: The primary difference between an ETF Wrap Account and a Mutual
Fund Wrap Account is the products inside the client’s account.
Exchange-traded funds are traded on stock exchanges and
track stock or bond indices like index mutual funds. These
funds hold assets like stocks, bonds, or commodities, and trade
extremely close to therelevant index over the course of the
trading day. The goal of the ETF Wrap Account is to provide investors with a benchmark return at minimal cost, and typically
trade free of commission. The total fee is often less than the
Mutual Fund Wrap Account.
3. Separately-Managed Accounts (SMAs): SMAs are portfolios of individual securities instead of mutual funds or ETFs.
These portfolios are acquired from the same professional asset managers who provide both mutual funds and ETFs to the
marketplace and customized portfolios for institutions and the
wealthiest clients. Each portfolio is unique to a single account,
unlike mutual funds. The decisions made by the money manager may differ for each account, giving credence to the name.
On the SMA investor’s statement, the assets will be listed separately, and the total value of the account will be the aggregate
value of the assets. SMAs allow for mass customization and can
be managed for even greater tax efficiency by using loss harvesting to offset gains and losses in individual securities. SMAs
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generally require more assets than wrap accounts for the client to participate, although the minimum threshold has been
decreasing in the last few years. Some SMAs are offered for a
threshhold as as low as $50,000, though the more-common
threshold is still $100,000.
4. Unified Managed Accounts (UMAs): This private investment account encompasses every type of investment vehicle
(mutual funds and individual securities, including ETFs, equities and bonds) in a single client account.The account is frequently rebalanced and investment decisions are managed by
either an overlay tool (a technological solution) or an overlay
manager (an investment advisor, usually an RIA, overseeing
the account). Only one UMA is necessary, unlike SMAs, which
need to have one account per manager. By consolidating the
holdings, UMAs streamline paperwork, provide tax and trading
efficiency, and simplify fees paid by investors. They typically
operate as discretionary programs, where the overlay manager
or sponsor makes tax and trade decisions and rebalances as
needed. A UMA usually has just one custodian to safeguard the
assets, although some platforms may enable multiple custodians. Fees are collected by the sponsor from the client and are
divided between the advisor, their firm (the sponsor,) the platform provider and the individual asset management firm.
5. Unified Managed Households (UMHs): A UMH is an UMA
that covers all theindividuals in a household, while incorporating their non-tradable assets such as real estate or privatelyheld companies. Overlay management services are extended
across the household to minimize trading costs and maximize
tax efficiency. True UMHs are still rare, but growing rapidly, and
approach the methodology of a family office. Both qualified
and unqualified accounts can be managed under a single registration and can be aggregated across multiple custodians.
Once the managed account type has been selected, the advisor builds an asset allocation model appropriate for the risk level
of the client.1
The main investment classes within equities are large-cap growth stocks, large-cap
value stocks, large-cap core holdings (a combination of growth and equity), mid-cap
US equities, small-cap US equities and international equities (either developed nations,
developing nations or some combination
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T
AMPs were a natural development born from the Prudent
Investor Acts (laws enacted by a variety of states to replace
the centuries’-old Prudent Man fiduciary laws). Fiduciaries,
parties with legal responsibilities to others, could for the first time
outsource investment management decisions to asset management professionals while remaining responsible for the overall client relationship. As opposed to simply allowing for the use of a
separate investment advisor, the Prudent InvestorActs have made
selection of a qualified third-party manager the preferred model
for providing superior investment capabilities combined with improved liability protection for the fiduciary.
Trends in Outsourced
Investment Management
Today, there are over $250 billion in client assets on TAMPs. The largest TAMPs may not be well-known retail brands, but they are powerhouses in the wealth management industry, and include firms like
Envestnet, SEI and AssetMark (formerly Genworth), who together
control a major share of the independent TAMP market. The big
wirehouses (Morgan Stanley, Merrill Lynch, Wells Fargo Advisors &
UBS) and RIA institutional providers like Schwab and Fidelity, also
provide managed money platforms, but they are only available to
their associated advisors or client firms. Captive platforms often result in sub-optimal manager selection and hidden conflicts of interest. This, in fact, creates an opportunity for independent advisors
and trust companies to match capabilities of the big firms without
the ethical baggage.
TAMPs will continue to evolve over the next few years. The best
TAMP providers will be the most responsive to needs of clients and
advisors, and take advantage of new technologies like cloud-based
storage and social media to further enhance the client-advisor relationship.
Products
The first casualty of the client-centric TAMP model in the future may
be the actively-managed mutual fund wrap account with its relatively high level of embedded fees. Associated higher-than-average
fees lower the likelihood of positive investment returns for clients.
With less clients and advisors willing to use mutual funds, the mutual fund wrap may decline in usage.
The main classes for fixed income are US government, US government agencies, US
corporations (corporates), municipals (state and local governments), high-yield (riskier
debts) and foreign sovereign (non-US governmental debts).
Alternatives are non-correlated assets like real estate and commodities.
Cash equivalents include money-market accounts, cash management accounts (CMAs)
and sweep accounts for holding cash not currently deployed in the market.
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Instead, the ETF wrap account is likely to grow as the preferred basic
model, using passive ETFs tied to legitimate indices. A few actively managed funds, like emerging international or high-yield bond
funds will remain in wrap accounts in lieu of ETFs; however, the vast
majority of wrap accounts will contain primarily ETFs.
Similarly, SMAs may give way to UMAs, especially models-based
UMAs, where the money manager downloads models instead of
conducting trades. Each manager’s portfolio will have a separate
sleeve, and overlay tools and managers will be used for tax and
trading efficiency. This ability to develop tax efficiency, sometimes
known as “tax alpha” (tax benefits above and beyond a normal market return), will become a key differentiator. Firms that are not able
to generate and prove improved returns through active tax management will struggle.
Currently, some advisors insist on managing a “sleeve,” and selecting individual securities.These advisors feel they must prove their
“worth” to the client in this manner. This activity is dangerous for
both the advisor (“live by performance; die by performance”) and
the client. Compliance in the future may greatly limit these “rep as
advisor” sleeves.
When it comes to risk, clients still fear volatility. Professional traders may embrace and profit from volatility, but retail households
can often react irrationally, such as moving all to cash in 2008. TAMP
platforms that include products that lessen volatility will be well received by clients.
Tracking portfolios to client goals will also become a competitive
necessity. Clients need to see their portfolios’ performance relative
to appropriate indices, as well as attribution. Clients like to know
which managers are adding value, and most importantly, the progress made towards their goals.
Delivery Channels
Two future developments expected in the delivery channel area
are real fee transparency and improved practice management. For
too many clients, the fees charged for managed accounts remains a
black box. It is necessary for the industry to move beyond a single,
unexplained rate to at least three distinct fee components if managed money platforms and products are to become ubiquitous:
•
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The product fee is the institutional rate charged to the
firm for the mutual fund, ETF or managed portfolio. In the
case of the UMA, it should be just the managers’ models
without the associated trading costs. For ETFs, fees may
range from 10bp for large cap to 25bp for smaller indices.
For UMAs, the range for models should cost between 35bp
and 50bp depending on the asset class.
•
The firm fee reflects the true costs of providing the
managed money platform, trading, custody, statement
preparation, and other definable costs. It should
include both the mark-up to the firm and the advisor’s
compensation tied to the account.
•
On top of these TAMP-based fees, other services such as
financial planning should be billed separately.
ETF wrap fee maximums should be less than 150bp for smaller accounts. UMAs that serve larger accounts with more complex portfolios should fee between 100bp and 175bp, dependent on use of
models and type of overlay services provided.
Transparency in pricing will go a long way towards improving the
number of clients selecting managed money as the best practice in
wealth management.
Using automated solutions where possible should decrease fees
and account minimums. This will spread managed accounts to
those most in need of relief from poor products and high fees - the
mass affluent. While managed accounts alone cannot solve the retirement crisis, lower overall fees can increase balances significantly
over a 30+-year accumulation horizon. Minimums for ETF wraps will
eventually fall to around $25,000.
Some TAMPs will also establish “no minimums” for retirement accounts like 401k’s and IRAs which are expected to grow substantially
over time. If the industry follows through on this strategy, managed
products and the firms that provide them may be able to displace
the current dominance of mutual fund firms in the retirement investment industry.
Best practice TAMPs also help their advisors and firms optimize use
of the platform. As TAMPs greatly enhance advisor and firm productivity, TAMPs need to take the lead in making sure their clients, the
firms and advisors, get the most from the platforms.
Segments
Older advisors are faced with an interesting predicament—they
must be “ambidextrous” in managing older clients while simultaneously attracting younger investors. Changes in age, ethnicity, gen-
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der, and aspiration are affecting the ways advisors view prospective
clients, and how clients view advisors. As Figure 1from SEI shows,
wealth management is no longer all about the Baby Boomers, who
have dominated the financial arena for the last 30 years
Figure 1: It’s not just about the Boomers (Source: SEI)
Younger advisors appreciate and utilize the technological capabilities of the platforms. While face-to-face client service remains the
standard for wealthier and older clients, a firm should not get locked
into a single delivery channel solution. Millennials have come to expect fast, convenient, and efficient service from anywhere, at any
time of the day. Using their Smartphones, they are more likely to
download the latest “app” and manage their finances from the palm
of their hand, rather than to take the time to meet with an advisor
face-to-face. If a firm plans to define their competitive advantage in
time utility, then they must look to the ideal of a “24-hour service”
capability.
Millennials, favoring advanced technology, are not a segment to be
ignored. Nielson reports that this group makes up 14.7% of those
with assets in excess of $2 million, making them the second most
profitable segment behind Baby Boomers. Advisors would be wise
to incorporate technology into their approach.
Social media is becoming a preferred marketing strategy and proving effective at changing behavior through “word-of-phone” efforts
rather than traditional marketing methodologies. Potential millennial clients are open to recommendations of advisors from friends
and family, which they then evaluate from their phone or computer.
Robo-advisors, with their advanced technology, also appeal to
younger investors. These online wealth management providers reduce or eliminate the need for human interaction and are appeal-
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ing for clients comfortable handling other aspects of their finances
online. In fact, according to SEI, 42% of advisors believe that roboadvisors are a beneficial technology in areas of client reporting,
scheduling, managing a scaled investment process, and social media channels.
Technology Implications
Only the largest firms can afford to build and maintain managed account platforms in-house. For the majority of the wealth management industry, partnering with a top outsourced managed money
platform (TAMP) is a competitive necessity.
TAMPs eliminate the need for many manual tasks, and future best
practices will reduce these activities further so advisors can focus on
their clients. Required capabilities of TAMPs in the near future will
include:
•
Automated onboarding, including ACAT and asset transfer.
•
E-signatures reducing the amount of paperwork and time
to open accounts.
•
Automated compliance based on exception reporting and
escalation.
•
Advisor and manager dashboards and alerts sent to mobile
devices.
•
Automated custody reconciliation across multiple
custodians.
•
Automated rebalancing.
•
Easier customization of portfolios for unique client
requirements.
•
Greater use of the cloud for data storage, statement
availability, platform updating, business continuity and
data recovery.
TAMPs are a marvel of technology, enabling practices that just a few
years ago were only available to the wealthiest investors. They are
expected to continue to lead the way in wealth management technology.
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The Current
TAMP Universe
J
ust thirty years ago, less than a billion dollars was being managed by TAMPs. Today, best estimates are approximately onequarter trillion dollars of assets are managed on TAMP platforms. Over that period of time, the industry has developed new
players while others have grown via consolidation. Figure 2 shows
TAMP market share from a recent survey.
Figure 2: Major TAMP industry Participants with Estimated Market
Share (2014)
Source: Trust Advisor Survey (199 respondents, 2014) to the question “If your firm
is using a TAMP solution, what TAMP solution is your firm using currently?”“Other”
providers mentioned included Fortigent, PNC ADVISORport and proprietary systems.
The largest players continue to be Envestnet, SEI and AssetMark (formerly Genworth). Other TAMPs, fighting to grow their market share,
have developed unique approaches to compete with the larger providers. For example, Adhesion Wealth Advisor Solutions, an RIA-focused TAMP with $13 billion on its platform, has grown 30% in the last
year by offering an account-by-account solution for advisors who are
not ready to move all their clients’ assets to the new platform. Adhesion credits this type of flexibility as a key differentiator.
Some of the bigger firms continue to grow through consolidation,
such as Envestnet buying Tamarac and Placemark, and AssetMark
acquiring smaller TAMPs focused on the 401(k) space.
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Eqis, another fast-growing TAMP, focuses on improving advisor efficiency and workflow. According to Scott Winters, CEO of Eqis,
“Advisors’ most valuable and scarce resource is their time,
which is best used for face-to-face meetings with investors.
Reducing the burdens of compliance and asset management
due diligence, plus also outsourcing administrative, billing,
reporting and other tasks can save up to 30% of an advisor’s
time. That’s 75 days in a 250-day work year.”
There are no shortage of TAMP providers, each with a different set
of capabilities, managers and technologies. It is vital that the individual firm select the TAMP provider with the capabilities most
important to the firm, one that allows the firm to differentiate itself
from the competition.
S
electing the best TAMP depends on several factors:
•
•
•
•
The legal structure of the wealth management firm.
The client segments the firm primarily serves.
How the firm wishes to differentiate itself from those
they see as primary competitors.
Existing capabilities of the firm, such as compliance,
reporting technology, workflow tools, CRM, etc.
Analyzing the
TAMP Providers
TAMPs may support or enable many of the following functions in
Figure 3, depending on their competitive offerings.
When a firm contracts with a TAMP, they usually receive at a minimum:
• A white labelled solution reflecting the look and feel the
wealth manager desires.
Figure 3: Functions supported by TAMPs dependent on platform
provider
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•
The technology platform to manage and execute the
clients ‘investments, often with appropriate dashboards,
alerts and compliance.
A menu of approved asset managers for different types of
accounts and asset classes.
Links to appropriate trading networks as required.
Custody reconciliation.
•
•
•
Other considerations include manager and product selection,
levels of fees to the clients, the ability to fee on held-away assets,
costs of the platform, aggregation capabilities, and ancillary support like financial planning. Processes like proposal generation
and reporting can also be key determining factors.
Manager and Product Selection
TAMPs using open architecture allow for financial advisors to offer
a combination of proprietary and non-proprietary strategies for
greater flexibility, greater investment options, and a reduction of
potential conflicts of interest.
A broad array of investments is essential for capturing high net worth
individuals. The mix should include mutual funds, ETFs, SMA, securities, and alternative investments. Overlay managers assist financial
advisors in model portfolio implementation, trading efficiency, risk
management, investment customization, and tax optimization. For
platforms using a rules-based overlay tool, the tax and trading efficiency is maintained without the input of another expert, albeit at
a lower cost than the overlay manager model.
TAMP Fee Structure
The range of TAMP fees, as shown in Figure 4, can run from 85 to
280 basis points depending on the underlying complexity and
cost of the incorporated investments.
Figure 4: Typical TAMP fee ranges*
Account Type
Investment Fees Management Fees
Total Fees
Mutual Fund Wrap
.5% - 1.5%
.5% -1.5%
.75% - 1.5%
ETF Wrap
.1% - .25%
.5% - 1.0%
.75% - 1.25%
SMA
.5% - 1.0%
1.0% - 1.75%
1.5% - 2.5%
UMA(using models)
.4% - .6%
.75% - 1.5%
1.5% - 2.5%
UMH
Negotiable along lines of UMA, with modest
(.01% - .03%) for held-away assets
*For large clients with greater assets, fees are negotiable, and will tend to be near the
minimums noted above.
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Performance
Advisors must be cognizant of how their efforts stack up against
predetermined benchmarks. Benchmarks established at regular intervals not only give clients peace of mind, but also relieve the advisors’ burden of “hoping for the best” for their clients. Fortunately,
several TAMP technologies allow advisors to easily assemble the
clients’ information, goals, and plans into a user-friendly platform.
Aggregation
Clients have found it difficult to settle on a single trusted advisor.
Citing perceived expertise in different investment areas and personal biases, clients typically employ multiple advisors. It is impossible for the advisor to offer effective asset allocation without a
holistic financial picture of the client. Aggregation tools allow for
holistic, client-centric advice and the ability to manage client risk.
Figure 5 from SEI indicates that only a small percentage of wealth
managers are making aggregation of their clients’ assets a priority:
Aggregation better aligns services and outcomes for clients and
advisors, and paves for the way for mutual long-term relationships.
Figure 5: Only some advisors are aggregating account data
(Source: SEI)
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Feeing on Held-Away Assets
Many financial advisors are missing the opportunity to fee on heldaway assets. According to a study in Financial Advisor Magazine in
2012, 95% of advisors reported that their clients asked them for advice on assets that were not in the hands of the advisor’s financial
institution (McConville, 2012). Financial advisors are missing out on
opportunities to increase revenue and, by ignoring these other assets, are not providing holistic advice.
Experience shows that if the advisor does a good job in explaining
how their oversight improves the risk and return profile of the entire
client or household portfolio, clients do not balk at a modest fee of
3bp – 5bp on the held-away assets.
Selection of the Ideal TAMP
A
dvisors must analyze their firm’s legal structure, client segments and asset class mix, andmatch their needs to a specific TAMP provider. Choosing the optimal provider for
a specific firm the first time around will minimize the hassle and
costs of switching providers in the future.
Three kinds of value can be realized by selecting an outsourced
portfolio solution: product, service and image value.
Product value should be passed along to clients when partnering
with a TAMP. Investments must cater to the client base of an advisor’s firm. For example, an advisor with a mass-market client base
will need a platform that offers mostly ETF wrap accounts. Making
sure the product offerings match the advisor’s client base is mandatory. More managers on the TAMP platform create more choices, but
also make it harder to justify a specific solution.
Service value must be evaluated in terms of expected support, as
well as operational cost savings. Criteria for selection includes the
strength of marketing, training, and technology support systems.
Firms should review the support available when planning the switch
to a TAMP. If there is a technological issue with the platform, an advisor must be able to contact support individuals to remedy the issue
quickly. Some providers offer programs to assist with sales training
and marketing. Advisorsneed to determine which tools are important to their business when evaluating TAMP alternatives.
Image value is important in terms of maintaining the image and
reputation of the company. This includes the quality and reputation
of the managers, as well as the look and feel of websites, mobile
apps and statements.
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On the other hand, monetary costs, timing issues, hassle factors, as
well as reputation and image issues, should be at the forefront of a
wealth management firm’s process when partnering with a specific
outsourced portfolio solution provider.
Monetary costs should be considered in both the cost of deploying
the system, reoccurring costs, and most importantly, costs that have
to be passed along to the clients that impact the value proposition.
Timing is important when considering how quickly the system can
be rolled out, and the difference it will make in speed of client and
asset acquisition and retention.
Hassle factors relate to the day-to-day operation of the platform by
advisors and administrators. The platform should make their jobs
easier, not shoe-horn them into a specific workflow.
Partnering with an outsourced provider must result in seamless
customer service, and clients should not be adversely affected in
any way by the switch to a TAMP. The reputation and image of the
wealth management firm should not be impacted by what is intended to be a superior process and improved workflow.
In the final choice for selecting the TAMP partner for a specific firm,
it simply comes down to the capabilities a firm values most. TAMPs
today are quite flexible; few force a firm into a single way of doing
business. The firm selects its strategy, the TAMP selection process
follows.
T
he future of the TAMP wealth management model couldn’t be
brighter. TAMPs reflect everything that will move the advisory
profession forward; they are the true “win-win-win” solution.
Conclusion: The Age of the
TAMP is Finally Here
The client benefits as they get better investment solutions. They will
come to understand that, by using the TAMP model, their advisor is
taking the long-term, holistic approach to managing their wealth.
The wealth management firm gains through a standardized and integrated approach that lowers liability exposure and costs. The advisor now wins because he or she sits on the same side of the table
with the client, picking the best managers for the client’s specific
situation.
TAMPs are the appropriate business solution for all types of wealth
managers. For the trust companies, they provide a level of investment sophistication not available with the traditional model of the
in-house investment officers. For broker dealers, TAMPs speed the
move to managed money solutions without the extensive money
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manager due diligence, all on an easy-to-use, outsourced, fully integrated platform. For RIAs, it allows the advisor to focus on the asset
allocation and risk management models, while removing performance as a possible point of contention. For the multi-family office,
the TAMP platform allows management of more assets and more
sophisticated investments in an efficient and professional manner.
Fees will continue to decline for investors as firms achieve greater
scale through their TAMP platforms. Fees will also become more
transparent, breaking into a fee for the asset allocation and risk service, a product-related fee from the third-party manager, and service-based fees for financial planning and trusts, among other aspects. ETFs will replace most mutual funds, UMAs will replace most
SMAs, and UMHs will become the sticky solution for client retention.
At the core of the business model, firms select their differentiated
strategy, and the TAMP selection process follows. In the end, the
majority of wealth management firms will be utilizing the managed
money solution, many through TAMPs. Assets on TAMP platforms
will continue to grow. The only question remains, when will your
firm reap the benefits of an outsourced investment management
provider?
16
Account Aggregation: Methodology that involves compiling
information from different investment and bank accounts into a
single view of the client. This may be done by either combining
custody records, screen-scraping from other organizations’
websites, or permission-based access to other accounts. Account
aggregation is important in order to gain a complete view of the
client’s financial position. Vendors of account aggregation tools
include Albridge (Pershing), ByAllAccounts and DST.
Glossary of Terms
Asset Allocation: A primary investment decision for wealth advisors
is to recommend among the three major asset classes: equities,
fixed income and cash equivalents.
n The main investment classes within equities are large-cap
(capitalization) growth stocks, large-cap value stocks, largecap core holdings (a combination of growth and equity),
mid-cap US equities, small-cap US equities, and international
equities (either developed nations, developing nations or
some combination).
n The main classes for fixed income are US government,
US government agencies, US corporations (corporates),
municipals (state and local governments), high-yield (riskier
debts) and sovereign (non-US governmental debts).
n Cash and cash equivalents include money-market accounts,
cash management accounts (CMAs) and sweep accounts for
holding cash not currently deployed in the market.
n Asset allocation percentages can vary based on client age,
risk tolerance, and the advisor’s opinion of the individual
asset classes and segments.
n Sector Rotation: Strategy of selecting among market
segments (e.g. raw materials, consumer goods) based on
where the advisor or asset manager feels the market is
within the long-term economic cycle.
Brokerage Network: Pre-assembled group of broker dealers tied
to a variety of physical and electronic exchanges through
which the advisor may execute client trades. This network
may be provided by either the platform provider that the
advisor is using, or may be selected based on other outsourced
relationships. Two of the largest are the SunGard Transaction
Network (STN) and the SEI network.
n Trade-Order Management (TOM): If the wealth manager
is not provided with a brokerage network, they will require
a TOM system. One of the more popular TOM systems is
MOXY from Advent.
n Straight-Through Processing (STP): STP is based on making
the minimum number of entries necessary to trade an equity
17
or other tradable investment (e.g. mutual funds) for a single
or group of clients, and is vital for efficient operations.
Custody/Custodian: The custodian provides a physical or electronic
facility to house investments. While the wealth advisor directs
the investments, in all but the cases of the largest firms, the
advisor does not have “custody,” or possession, of a client’s assets.
Custodians may also require that checks and other negotiable
instruments be made out to them, not the wealth advisor.
Custodians have gained increased importance in the minds of
clients since the Bernie Madoff theft occurred, and clients are
now paying attention to custodian selection. Wealth advisors
using a large, well-known custodian help protect their clients
from investment fraud. Most investment advisors use large
custodians such as Fidelity, Pershing, TD Ameritrade, Citi, Charles
Schwab, Bank of New York Mellon, State Street or Northern Trust.
n Reconciliation requires ensuring that client statements
match the records of the custodian. For many wealth
advisors, this is still a manual task. The task is fully-automated
where there is a singularity between custodian and platform
provider (e.g. Citi’s OpenWealth platform or SEI’s Global
Wealth Platform). The task can be one of the most timeconsuming and difficult tasks of a wealth manager, and can
be eased by use of various account aggregation tools.
ETF Wrap (Account): Type of managed account where the client’s
investment portfolio is invested solely in exchange-traded funds.
The selection and composition of each ETF class is based on the
appropriate asset allocation model, and is periodically assessed
to respond to market changes. As with most managed accounts,
there is an asset-based fee charged for the account, and
transaction costs are paid by the advisor. ETF wraps often have
lower expense ratios than mutual fund wraps, and offer intraday
trading, tax efficiency, and other benefits.
Feeing: The fees paid by the client (which may range from 85bp
to 280bp dependent on the type of program and asset classes
included) have to be appropriately divided among the asset
manager, the advisor, the sponsor, the platform provider and
the overlay manager, usually on a monthly basis. Feeing can
be quite complex in the managed account space, though new
technologies are being developed to assist in the process.
Investment Policy Statement (IPS): Outlines the advisor’s
appropriate investment strategy in terms of asset allocation for a
particular client.
n Restrictions identify holdings that may be inappropriate
for a specific client. Restrictions may be based on personal
beliefs (e.g. no tobacco stocks) or significant current holdings
18
through inherited equities or stock options and grants to be
exercised as a result of working for a publicly traded company.
n Risk: Every client has a unique risk profile based on their age,
risk tolerance (how much they are willing to absorb market
losses as they reach for greater market gains), and investment
objectives. The asset allocation must outline these risk issues,
which are then specifically identified in the IPS.
n Suitability/Fiduciary: Suitability is the standard used by
Registered Reps when selecting asset classes for individual
clients. Registered Investment Advisors (RIAs) and trust
officers use the fiduciary standard, where their clients’
objectives are supposed to be placed ahead of their own,
and where they adhere to the Prudent Investor Rule.
Manager Due Diligence: TAMPs frequently provide an extensive
list of asset management products, among which are mutual
funds, ETFs, funds of funds, SMAs or UMAs. What each of
these have in common is that the assets are managed by an
“asset manager” whose job it is to provide the models and
manage the underlying assets to a specific strategy. As part
of vetting the products, TAMP providers conduct a detailed
examination of the manager and firm in terms of track record,
experience, performance, assets under management (AUM),
risk management, reference checks, compliance history and
externally-audited financial statements.
Models (Models-Based Approach): Investment methodology
that requires asset managers download investment strategies
into a sponsor firm’s UMA platform for the sponsor to conduct
the actual trades, as opposed to the SMA approach where the
asset manager conducts the trades themselves. If part of a
UMA, the SMA sleeve is incorporated into the UMA. Modelsbased approaches are more profitable for UMA sponsors
due to wide omnibus trading and better for clients as they
allow for incorporation of an overlay methodology for tax
and trading efficiency. The loss of trading revenue may cause
asset managers’ reluctance to participate in a models-based
environment, resulting in the managers’ decision to participate
in a sponsor’s UMA program or not. Some asset managers also
fear a loss of intellectual property. Models may be updated on
the UMA platform in real time or in a batch mode.
Mutual Fund Wrap (Account): Also known as a Mutual Fund
Advisor Program, a mutual fund wrap account provides
multiple mutual funds (selected from a large pool) based on
asset allocation guidelines. The investment advisor designs a
portfolio of funds and manages the funds as a single account for
a single annual fee of 85bp to 150bp. The fee is an alternative to
19
individual mutual fund sales charges.
n Fund of Funds: Mutual fund-like vehicles made up of shares
of alternative investments (usually hedge funds) where the
investor has their risk reduced through diversification. A
fund-of-funds approach also allows investors who might not
qualify for “accredited” status to invest in hedge funds.
On-boarding: Process by which a prospect who has agreed to
become a client is brought onto the investment advisor’s
platform and their client’s assets retitled or moved to a new
custodian. The process must comply with SEC recordkeeping
rules and US Treasury know-your-customer and anti-money
laundering rules. The process often involves new asset types
being set up on the system, detailed household information,
and an eventual reconciliation between the system and the
custodian’s records.
Open Architecture: In the extreme case, open architecture requires
that the investment platform would enable and support any
investment managed by any asset manager. While such a
goal is desirable, it is also impractical, as each asset manager
must undergo comprehensive due diligence to be included
on the platform. As a result, many program providers claim
“open architecture” as a feature, while offering from dozens
to hundreds of asset managers and their products on their
particular platforms.
Outsourcing: Process of contracting a necessary business function
or process to an independent organization, and ceasing to
perform that function or process internally, instead purchasing it
as a service. TAMPs are an investment management outsourcing
solution.
n Private Branding/White Labeling: A TAMPs platform is
branded to identify with the wealth advisor’s firm as
opposed to the actual developer or provider of the
technology or system.
Overlay: Methodology used by the wealth advisor to provide the
best in tax and trading efficiencies to their clients. The effort
can be manual or technology-based, and comes in a variety of
“flavors.”
n Overlay Tools vs. Overlay Managers
u Overlay tools are software designed to ensure tax and
trading efficiency and are integrated with the managed
account platform.
u Overlay managers deliver an investment advisory
service to achieve the same objectives as the
tool, subject to relevant regulatory and fiduciary
20
requirements.
u Overlay managers may offer a more complete solution
but with reduced control for the advisor, and typically at
a higher cost.
n Passive Overlay vs. Active Overlay
u In passive overlay, asset managers have operational
control over their sleeves; the wealth advisor’s
overlay role is limited to account level allocation and
reconciliation.
u Some asset managers are uncomfortable with having
their models modified by different players and fear loss
of their intellectual capital.
u Active overlay management relies on a single overlay
tool or manager to assume discretion for all of a client’s
accounts.
u In active overlay, managers send their model-based
portfolios to the overlay manager who then trades at
the account level.
u Active overlay results in improved tax optimization,
portfolio customization and operational efficiency.
n
Distributed Overlay vs. Centralized Overlay
u Distributed overlay (e.g. Smartleaf) allows a relationship
manager or trust officer to set up individual rules to
manage individual client accounts.
u Centralized overlay decisions are made at the firm level
and asset managers tend to be more comfortable with
releasing their models under this type of process.
Proposal Generation: Either a process or on-boarding step wherein
the advisor presents the client with an appropriate asset
allocation model or investment policy statement, customized
to their specific situation, in order to get the prospect to make a
decision to become a client of the firm.
Platform: Refers to both the underlying investment management
technology the advisor uses and the investments available to
the advisor to offer to their clients. Both aspects of the platform
are provided to the wealth advisor by the TAMP providing the
outsourced investment solutions.
Rebalancing: The rebalancing of an investment portfolio is the
action of bringing a portfolio that has deviated away from its
target asset allocation back into line. Now under-weighted
securities can be purchased with sales of the now overweighted securities. Rebalancing can be automated on the
investment platform at either the account level or across all
21
the advisor’s accounts. Advisors and firms must select the time
period at which rebalancing will be done. Some firms conduct
rebalancing manually to ensure no unwanted or de minimus
trades. Recent scholarly papers have discounted the benefits of
rebalancing portfolios, instead showing that rebalancing can
lead to lower returns over time.
Reporting: Stating the results of clients’ investment portfolios is
one of the most important aspects in attraction and retention
of clients. Good reporting systems and capabilities help in client
understanding of the value added by their advisor, no matter
the actual underlying performance of specific investments.
Reporting may be conducted at the account level, at the sleeve
level or at the household level.
n Best practices require Attribution Reporting where results
are compared to a benchmark, and the asset manager’s
performance can be adjusted for general market gains, risk
and style drift in order that the client can ascertain the exact
value-added of each manager.
Sleeves: Each portion of clients’ total portfolio managed by a single
asset manager is considered a “sleeve” on the UMA platform, and
each sleeve fulfills some part of the asset allocation selection.
Sleeves may be created for each asset class (whether traded, e.g.,
ETFs, or non-traded, e.g. real estate or alternative investments),
individual investment manager, asset type (e.g., mutual funds or
SMAs), model or investment strategy.
n Rep-as-Advisor Sleeves are specific sleeves put together by
the investment advisor themselves to conduct a specific
strategy of their own design.
Separately-Managed Account (SMA): A portfolio of individual
securities managed by a single asset manager matching some
aspect of the client asset allocation strategy and offered to the
investor by a sponsoring firm. A fee-based SMA program utilizes
multiple SMAs. A single SMA can also form a single sleeve within
a UMA structure. SMAs also differ from mutual funds because
the investor directly owns the securities instead of owning a
share in a pool of securities.
Turn-key Asset Management Programs (TAMPs) provide
outsourced investment selection and management, allowing
the wealth advisor to offload time-consuming back-office
functions, such as research, manager due diligence, portfolio
construction, rebalancing, reconciliation, performance reporting,
tax optimization and reporting in order to focus more on
gathering assets, acquiring new clients, and servicing existing
accounts.
22
Unified Managed Account (UMA): A single fee-based account that
houses numerous investment products to fulfill the client’s asset
allocation strategy within multiple separate account sleeves.
Management between sleeves is determined by the overlay
process to gain tax and trading efficiencies. This necessitates the
wealth advisor managing the client relationship on a platform
optimized for UMAs. A UMA is usually conceived as having a
single custodian, though some platforms do aggregate across
multiple custodians.
Unified Managed Household (UMH): A UMA-like relationship
taken to the next level by bringing together all aspects of a
client household’s wealth, not just the wealth of the separate
individuals. UMH platforms enable program sponsors to take
a holistic approach to their investors’ total portfolio, and apply
a range of solutions that treat the client’s wealth in a manner
similar to how clients think about their personal wealth. Assets
to be managed include qualified and non-qualified accounts,
as well as real estate, collectibles, oil and gas properties, limited
partnerships and managed futures accounts. A UMH has a single
registration, and can aggregate across multiple custodians. Many
advisors consider the UMH to be the ultimate advancement in
the managed-account space.
23
2015 Americas Best TAMPs
Adhesion
Wealth Advisor Solutions,
Inc.
AssetMark
AT Financial Advisors
Adhesion Wealth Advisor Solutions is a true partner to wealth
advisors, providing a complete
and customizable investment and
practice management solution,
powered by our integrated
investing-monitoring-reporting
platform and high touch service
culture. Our open-architecture
solution brings the best of all
worlds directly to the wealth
manager’s finger tips.
AssetMark is a leading provider of
innovative investment and consulting solutions serving independent
financial advisors. Supporting
advisors who help clients thrive is
all we do. We provide investment,
relationship and practice management solutions that advisors use to
help clients achieve their investment objectives and life goals
AT Financial Advisors (ATFA) is a
specialized investment subsidiary
of AT Bancorp, a multi-bank holding company with a history dating
back to 1911. ATFA was created to
allow advisors greater opportunity
to utilize its fully discretionary
investment strategies. ATFA’s
advisor partners can include RIAs,
broker/dealers, banks, and trust
companies, who have the choice
of utilizing the platform for all of
their business, as a compliment to
other investment platforms, or in a
sub-advisory capacity.
Ty McDaniel
(888) 295-8351 ext 1
(980) 321-5842
tymcdaniel@adhesionwealth.
com
Michael Kim,
Executive Vice President, Sales
(800) 664-5345
NewAdvisorQuestions@
assetmark.com
Wade Johnson,
VP, Advisor Services
(563) 589-7164
wjohnson@atfinancialadvisors.
com
Brand of Program
Adhesion Customized Practice
Solutions & Portfolio Solutions
None
AT Managed Portfolios
Type of program
Advisor-directed MF/ETF
portfolios, UMAs/ UMHs. Thirdparty SMAs and UMA strategies
Mutual fund wrap, ETF wrap,
traditional SMA
SMA, UMA, Hybrid, Other
$3.3 billion AUM, $13 billion AUA
$25 billion
$334 million
Managers GIPS compliant
Yes
No
Yes
Type of products available
MF/ ETF strategies; equity/ FI
SMAs; multi-product, multimanager UMA strategies
Advisor Directed UMA/UMH,
Mutual Fund wrap, ETF models,
Model only SMAs
Mutual funds, ETFs, SMAs,
UMAs
Optimizes for tax and trading
efficiency
Yes
No
Yes
Sleeve-level reporting
Yes
Yes
Yes
Links to a trust accounting
system
Yes
Yes
Generates investment policy
statements
No
Yes
Yes
TDAmeritrade, Schwab,
Pershing, Fidelity
Pershing, Pershing PAS,
Fidelity, FIWS, Schwab, TDAI
Fidelity, others
Highlights
New Business Contact
Total Assets in Pogram
Custodians supported
24
Yes: Sungard Addvantage
Citi Investor Services
Envestnet
EQIS
Citi Investor Services has built
one of the most client-centered
turnkey asset management
programs on the market in
its OpenWealth® solution, an
open-architecture Unified Managed Household platform flexible
enough to support a wide range
of advisory relationships.
Wealth managers using the program range from trust companies
and private banks to broker/
dealers and their affiliates, family
offices and RIAs.
Envestnet, Inc. is one of the largest providers of wealth management solutions in the financial
industry and provides more than
21,000 financial advisors with a
broad range of investment management products and services.
The firm has a proven tradition
of “advising the advisor” by
providing expert consulting and
analytical investment solutions
to financial advisors and their
clients.
At EQIS we believe wealth management needs to be reinvented.
For too long, the playing field has
been tilted away from advisors
and their clients. We strive to
solve this problem.
Brian Corkery, VP Product Sales
Specialist, Citi Investor Services
(617) 824-1262
brian.corkery@citi.com
John Phoenix, Managing
Director, Advisory Solutions
(866) 924-8912
envestnetplatform@
envestnet.com
Dave O’Rourke
Brand of Program
Citi OpenWealth
Envestnet
EQIS Capital Management,
Inc.
Type of program
Mutual fund wrap, ETF wrap, traditional SMA,
Model only SMA, UMA/UMH, Hybrid
Mutual fund wrap, ETF wrap, traditional SMA, Model
only SMA, UMA/UMH, third- party strategists
Separately Managed Account (SMA)
and Exchange Traded Fund (ETF)
wrap
$14 billion
$246 billion
Over $1 billion
Yes
Not required
Some
Advisor Directed UMA/UMH, Mutual Fund wrap,
ETF models, SMA’s, Model only SMAs
Advisor Directed UMA/ UMH, Mutual Fund wrap, ETF models,
Advisor Directed Unified Managed Account
(UMA) and managed ETF programs
efficiency
Yes
Yes
Yes
Yes
Yes
Yes
system
Yes
Yes
Yes
statements
Yes
Yes
Yes
Pershing, Pershing PAS,
Fidelity, FIWS, Schwab, TDAI
Fidelity IWS, National Financial, Schwab, Pershing, TD
Ameritrade,
JP Morgan, RBC, First Clearing,
Sterne Agee, others
Foliofn
Highlights
SMAs, Model only SMA, Fund Strategist portfolios
(800) 949-9936
dave.orourke@eqis.com
25
Flexible Plan
Investments, Ltd
A Financial Times Top 300 Money
Management firm headquartered in Michigan, Flexible Plan
Investments delivers effective
money management, client
communication, and back office
solutions to financial advisors
while its professional asset
managers direct client portfolios,
enabling advisors to grow their
practices. For over 30 years, our
focus has been on preserving and
growing capital while responding
to shifting market environments
in real time to provide investors
with competitive returns while
reducing risk.
FolioDynamix
FTJ FundChoice, LLC
FolioDynamix empowers wealth
We are a leading provider of
management firms for innovation investment, reporting and service
and growth with a truly unified,
solutions.
secure cloud-based wealth
management technology platform and the research, advisory
services and insight they need to
be successful.
Highlights
Brand of Program
Type of program
Len Durso
Aaron Schumm
Cory Kendall
(412) 225-4936
+1 888-526-6300
(859) 426-2000
sales@foliodx.com
sales@foliodx.com
cory.kendall@ftjfundchoice.com
Strategic Solutions/Schwab/
Folio Institutional/Various VAs
and white labels
FolioDynamix TAMP
N/A
Mutual fund wrap, ETF wrap
Mutual fund wrap, ETF
wrap, traditional SMA, Model-only SMA, UMA, UMH
TAMP, Mutual Funds, ETF
$2+ billion
$21 billion in AUM, $709 billion in AUA
$4.6 billion
Yes
Mutual funds, ETFs, SMAs,
UMAs,VAs, VULs
Yes
UMA/UMH, MFW, ETF models, SMA, model SMA
Some
Advisor Directed, mututal
funds, ETFs
efficiency
Yes
Yes
Yes
Yes
Yes
Yes
system
Yes
Yes
Yes
statements
Yes
Yes
Yes
Trust Company of America, Schwab,
Fidelity, Folio Institutional, various VAs,
and retirement platforms
SunGard, FIS/Metavante, Thomson
Reuters, Broadridge, Pershing, Fidelity,
Schwab, TD Ameritrade, others
TD Ameritrade
26
Lockwood Advisors
LRJ Investment
Management
Mt TAMP
Lockwood’s solution harnesses
the team’s investment management expertise and enables
investment professionals to
outsource various parts of the
investment process so that they
may spend more time with clients
and prospects. These solutions
range from separately managed
accounts, which allow the option
of outsourcing the research component, to discretionary solutions
where Lockwood is managing
portfolios on a fully discretionary
basis.
LRJ offers wealth managers and
advisor alike a hybrid service
that allows the advisor to define
TAMP parameters and implement
them on Envestnet’s quantitative
portfolio solution platform.
WrapManager started in 2000,
as the first online, direct-to-highnet-worth-investors managed
account program. These investors
were able to research, compare,
and hire money managers. Our
experience and research has
helped thousands of investors,
and through related search and
consulting, thousands more advisors and money managers. It is
with this experience that we have
built our new platform – Mt TAM.
Dan Penrose,
Division Sales Manager
(800) 200-3033
daniel.penrose@
lockwoodadvisors.com
Landon Jones
440)786-6110
info@LRJIM.com
Jeremy Wilmerding,
Director of Advisory Services
(415) 541-7774
jwilmerding@
wrapmanager.com
Lockwood
LRJ Investment Management
Mt TAMP
Mutual fund wrap, ETF wrap,
traditional SMA, Model only
SMA, UMA/UMH
Consulting ServiceH
UMA, MF wrap, ETF wrap,
SMA, Rep as PM
$9 billion
N/A
$320 billion
Yes
Yes
Yes
ETF models, SMAs, Model only SMAs
All
Separate Account Managers,
mutual funds, ETFs, equities,
fixed income
Yes
Yes
Yes
Yes
Yes: Sungard, FIS, SEI, others
under development
Yes
Yes
Yes
Yes
N/A
Yes
Yes
State St., BONY, FITB,
Sundard, FIS, SEI, others
Schwab, Fidelity, and TD
Ameritrade
TD Ameritrade
Highlights
Brand of Program
Type of program
efficiency
system
statements
27
Sawtooth Solutions, LLC
SEI
Sowell Management
Services
Sawtooth is a comprehensive
and flexible investment platform
delivered through a Unified Managed Account (UMA) program.
Our collaborative approach
enables trust advisors and portfolio managers to easily implement their wealth management
offering while embedding the
pillars of an institutional framework: definable and repeatable
investment management, sales,
and operational processes including research, billing, trading
and performance reporting. Our
top priority is providing the ideal
solution for your business—we
customize our services to your
needs, not the other way around.
SEI is a leading, global provider
of investment management
business outsourcing solutions,
investment processing, and fund
processing that help corporations, financial institutions and financial advisors. As of December
31, 2014, through its subsidiaries
and partnerships in which the
company has a significant interest, SEI manages or administers
$625 billion in mutual fund and
pooled or separately managed
assets, including $253 billion in
assets under management and
$372 billion in client assets under
administration.
Sowell Management Services is a
“Fee-Based” Third Party Management firm with investment
portfolios for individuals, retirement plans, corporations, trusts,
foundations, and institutions. As
a Third Party Manager, Sowell
Management Services manages
assets for industry professionals
through a network of some of
the industry’s largest and most
respected Independent Broker/
Dealers.
Erich Leidel
(952) 831-9359
(888) 584-0039
sales@sawtootham.com
(888) 734-2679
Chuck Hicks
adnetleadgenteam
@seic.com
(800) 399-2391
chuck@sowellmanagement.
com
Sawtooth Platform
Integrated Wealth
Management Program
Customized SMA High Net worth Stock
/ Fixed Income / Alternative Investment
Portfolios
SMA, UMA, Hybrid
No-load, Mutual Fund Wrap, Style-Specific
Mutual Funds, ETF Wrap, Traditional Sma
and Unified Managed Accounts
SMA and UMA, Mutual Fund,
ETF (Tactical and Strategic
portfolios)
$2 billion
$47 billion
$500 million
Yes
Yes, some
Yes
ETF models, SMA’s, Model only SMAs, Insourced or
Outsourced Tax Sensitive Overlay Technology
Advisor Directed UMA/UMH, Mutual Fund
Wrap Including Goals-based and
Tax-managed Strategies
SMA and UMA, Mutual Fund, ETF (Tactical and Strategic
portfolios), 403(b) account management and 401(k)
plan management, Variable Annuity
efficiency
Yes
Yes
Yes
Yes
Yes
Yes
system
Yes
statements
Yes
Yes
Yes
TD Ameritrade, Schwab,
Pershing, Fidelity, US Bank ,
BONY, FCC, NFS, PAS
Pershing, Fidelity, Schwab,
TDA, SEI Private Trust
Company
Fidelity, Pershing, Schwab,
TD Ameritrade
Highlights
Brand of Program
Type of program
28
Yes:
SEI-3000, SEI Global Wealth
PlatformSM
Yes
adhesion
Wealth Advisor Solutions
Adhesion Wealth Advisor Solutions, Inc. • 5935 Carnegie Blvd Suite 100 Charlotte, NC 28209 • www.adhesionwealth.com
A
dhesion Wealth Advisor Solutions is a highly
personalized, open architecture UMA platform
that delivers your essential investment services. We
power your advisor and client Alpha.
There are two ways to engage with Adhesion:
1. Customized Practice Solution. Use our personalized UMA
platform for your firm’s integrated reporting, reconciliation,
trading, rebalancing and monitoring. Our open architecture
allows access to your choice of funds, ETFs, asset managers and
fund strategists. You define your investment proposition and
we deliver it on your behalf.
2. Adhesion Portfolio Solutions (APS). Choose from hundreds
of objective–based models managed by third party asset
managers and fund strategists. And with APS, you have
turnkey solution that can scale from individual strategies to a
completely researched and defensible outsourced investment
management program.
Through a dynamic combination of human capital and
cloud-based technology, we offer a scalable and more
efficient way for you to:
• Offer clients a single ClearView of their managed and nonmanaged investment holdings and performance.
• Provide simplified online on-boarding.
• Serve up a single investment allocation that can grow to
become a sophisticated portfolio as your clients’ needs and
resources change.
• Offer tax aware management that may result in a material
contribution to after-tax portfolio returns. Our transition
management can create a tax aware road map to migrate new
assets over to you.
With $13 billion in AUA we’re 100% built for and focused
on you — the registered investment advisor. 100% of our
operations and personnel are located in Charlotte, North
Carolina.
30
New business contact:
Ty McDaniel
Phone, Main: (888) 295-8351 ext 1
Phone, Direct: (980) 321-5842
Email: tymcdaniel@adhesionwealth.com
Brand of program: Adhesion Customized Practice
Solutions and Portfolio Solutions
Type of program: Advisor-directed MF/ETF portfolios,
UMAs/ UMHs. Third-party SMAs and UMA strategies
Total assets in program: Key Operating Metrics -- More
than $2.5 billion in AUM and $13 billion in AUA
Year program began: 2007
Managers on platform vetted: Yes
Type of products available: MF/ ETF strategies;
equity/ FI SMAs; multi-product, multi-manager UMA
strategies
Program uses platform to track reporting of client
holdings: Full, customizable client performance
reporting with online client portal for managed and
non-managed assets.
Program is compatible for: Brokerage, Trust, RIA, UMA
Program optimized for tax and trading efficiency: Yes
Sleeve-level reporting: Yes
Program links to a trade execution or order
management system: Yes
Program links to a trust accounting system: Yes:
Sunguard Advantage, Charlotte
Private branding or white labeling possible: Yes
Proposal generator: Yes; Electronic enrollment
workflow. Also features online client on-boarding
Generates investment policy statements: No
Asset allocation methodologies: All methodologies
supported. 3rd party strategists available providing
complete, turn-key investment programs
Rebalancing: Yes. Dynamic rebalancing by centralized
overlay manager.
Aggregation of held-away accounts: Yes
Custodians supported: TDAmeritrade, Schwab,
Pershing, Fidelity
Marketing support offered: Yes
30
AssetMark • 1655 Grant Street, 10th Floor, Concord, CA 94520 • www.assetmark.com
A
ssetMark is a leading provider of innovative
investment and consulting solutions serving
independent financial advisors. Supporting
advisors who help clients thrive is all we do. We provide
investment, relationship and practice management solutions
that advisors use to help clients achieve their investment
objectives and life goals.
Our relentless service ethic and robust client relationship
support set us apart. Our offering is flexible to suit each
advisor’s vision for working with clients and growing their
practice.
Our carefully curated investment lineup gives advisors
access to purposefully selected institutional and boutique
portfolio strategists. Together, they provide unparalleled
flexibility for creating investment solutions that align with
your clients’ needs.
Advisors can access everything from proposals to research
and reporting in our online portal, eWealthManager. We
also offer the AssetMark Advisor iPad app so advisors can
share the how and why of portfolios whether in the office or
on the go.
AssetMark provides a team of practice management
specialists who share best practices and knowledge gained
from years of advisor engagement. Through workshops and
1:1 consultations, we can help you build efficient operations,
create powerful marketing plans, and identify opportunities
for revenue enhancement.
AssetMark, Inc. and its affiliate Aris Wealth Services have
approximately $25 billion in combined assets on their
respective platforms and a history of innovation spanning
over 20 years.
Michael Kim, Executive Vice President, Sales
Phone: (800) 664-5345
Email: NewAdvisorQuestions@assetmark.com
Brand of program: None
Type of program: Mutual Fund Wrap, ETF Wrap,
traditional SMA
Total assets in program: $25 billion
Managers GIPS compliant: No
Type of products available: Advisor Directed UMA/
UMH, Mutual Fund wrap, ETF models, Model only
SMAs
holdings: Yes
Program is compatible for: Independent advisors at
broker/dealers with selling agreements with AssetMark
or RIAs. Advisors looking for an investment provider
partner in order to spend more time with clients.
Program optimized for tax and trading efficiency: No
Program links to a trust accounting system: Yes
Proposal generator: Yes
Generates investment policy statements: Yes
Asset allocation methodologies: Strategic, Tactical
Constrained®, Tactical Unconstrained®, Absolute
Return
Rebalancing: Yes
Aggregation of held-away accounts: No
Custodians supported: Pershing, Pershing PAS, Fidelity,
FIWS, Schwab, TDAI
Marketing support offered: Co-branding of materials
through online resource
31
AT FinancialAdvisors
AT Financial Advisors • 895 Main Street, Dubuque, IA 52004 • www.atfinancialadvisors.com
AT
Financial Advisors (ATFA) is a specialized
investment subsidiary of ATBancorp, a multibank holding company with a history dating
back to 1911. After three generations of successful growth
in its local markets, ATBancorp established ATFA in 2006 to
create the opportunity for financial advisors and their clients
to access their proven team of investment professionals.
Since that time, we have focused on partnering with RIAs,
B/Ds, other TAMPs, and trust companies to distribute the
following investment products to their advisors and clients:
• SMA portfolios: Large Cap Core, Mid Cap Core, Select
Equity, Balanced, and Fixed Income
• Dynamic mutual fund and ETF portfolios
• A UMA program that appeals to high net worth clients. • A series of tactical ETF portfolios and income-oriented
products are soon to be released as well.
We are constantly looking for ways to create innovative
products and refine our partner program. Our Advisor
Focused Tools make it simple for advisors to sell more
business and outsource their clients’ investment management
duties with confidence. A few features include:
• MyPortalOnline – Securely view custodial and
performance information for accounts
• Dashboard – Review your business with this interactive
landing page
• Proposal Generator – Create and deliver electronic or
printed sales presentations
• Back Office Support – Our operations team takes care of
account opening, trading, performance statements, billing,
and much more
• Sales/Marketing Assistance – Access our portfolio
managers to help you sell more clients
Our goal is to help advisors make their practices more
efficient and effective. With the backing of a larger, privatelyowned organization, our advisor partners are able to leverage
the resources and expertise of a large organization, but still
enjoy the personal experience delivered by smaller firms.
32
Wade Johnson, VP, Advisor Services
Phone: (563) 589-7164
Email: wjohnson@atfinancialadvisors.com
Wade Johnson, VP, Product Development
Phone: (563) 589-7164
Fax: (563) 589-0839
Email: wjohnson@atfinancialadvisors.com
Brand of program: AT Managed Portfolios
Type of program: SMA, UMA, Hybrid, Other
Total assets in program: $334 million
Managers GIPS compliant: Yes
Type of products available: Mutual funds, ETFs, SMAs
UMAs
holdings: Yes: Vestmark
Program is compatible for: Brokerage, Trust, RIA and
UMA
Sungard Addvantage
Asset allocation methodologies: By asset allocation,
by asset class allocation, by suitability
Rebalancing: Yes
Custodians supported: Fidelity, others
32
Citi Investor Services 388 Greenwich Street, 14th Floor New York, NY 10013
C
ITI INVESTOR SERVICES has built one
of the most client-centered turnkey asset
management programs on the market in its
OpenWealth® solution, an open-architecture Unified
Managed Household platform flexible enough to
support a wide range of advisory relationships.
Wealth managers using the program range from trust
companies and private banks to broker/dealers and
their affiliates, family offices and RIAs.
Brian Corkery, VP Product Sales Specialist,
Citi Investor Services
Phone: (617) 824-1262
Email: brian.corkery@citi.com
Brand of Program: Citi OpenWealth
traditional SMA, Model only SMA, UMA/UMH, Hybrid
OpenWealh supports an open-ended investment
universe including Mutual Fund wrap, ETFs models,
separately managed accounts, annuities and alternative
investments, as well as the capability to create
proprietary models, portfolios and strategies. Managers
can also build special instructions, restrictions,
investment policy statements and online proposals.
The OpenWealth program is distinctive for its unified
household account orientation, in which client
wealth is managed in its entirety even when the assets
themselves are held away. All assets are rebalanced and
performance is attributed on the level of the sleeve,
the account and the relationship to optimize client
outcomes and satisfaction.
Straight-through processing ensures that trades are
executed quickly and inexpensively. While the system
is custodian-agnostic, assets on the Citi platform
benefit from faster and more efficient reporting and
account reconciliation.
The goal is to improve workflow, increase advisor
efficiency and reduce operating costs.
UMH, Mutual Fund Wrap, ETF models, SMAs, Model
only SMAs
holdings: Yes
Program is compatible for: Brokerage, Trust, and RIA
Program links to a trust accounting system: Yes,
Asset allocation methodologies: By asset class, by
sub-asset class, by suitability
Rebalancing: Yes, multiple rebalancing options
Custodians supported: Pershing, Pershing PAS, Fidelity,
FIWS, Schwab, TDAI (Over 400 unique trade destinations supported)
33
Envestnet • 35 East Wacker Drive, 24th Floor Chicago, IL 60601 • www.envestnet.com
E
NVESTNET, INC. (NYSE: ENV) is a leading provider
of unified wealth management technology and
services to investment advisors. Our open-architecture
platforms unify and fortify the wealth management process,
delivering unparalleled flexibility, accuracy, performance, and
value. Envestnet solutions enable the transformation of wealth
management into a transparent, independent, objective, and
fully-aligned standard of care, and empower advisors to deliver
better results.
With Envestnet’s next generation platform, advisors can
streamline and enhance their daily practice of managing wealth
through innovative technology.
Access Insight: From desktop or mobile, leverage a complete
wealth management platform that synthesizes aggregated
data to deliver critical information about client assets. Tap
comprehensive market research and investment consulting
from seasoned industry professionals.
Extend Reach: With more than 14,000 investment vehicles
available and a full spectrum of third-party strategists—many of
who are renowned in the industry—on an integrated platform,
advisors can efficiently serve client investment needs with a
personalized approach.
Drive Knowledge: Powerful technology that allow advisors to
deliver better advice to clients with market intelligence specific
to client portfolios. Advisors leverage insightful research and
due diligence on investment products and programs to foster
thoughtful investing decisions.
Scale Your Business: Flexible platform preferences allow
advisors to streamline workflows and spend more time building
client relationships. Professional presentations available on
the go and a 24/7 client portal that delivers customizable
white-labeled reports enable advisors to effectively meet client
expectations.
For more information on Envestnet, please visit envestnet.com
and follow @ENVintel.
34
John Phoenix, Managing Director, Advisory Solutions
Phone: (866) 924-8912
Email: envestnetplatform@envestnet.com
Brand of Program: Envestnet
traditional SMA, Model only SMA, UMA/UMH, thirdparty strategists
Total assets in program (Key Operating Metrics):
More than $72 billion in AUM and $174 billion in AUA
(Total AUM/A $246 billion) as of 12.31.14
Managers GIPS compliant: Not required
UMH, Mutual Fund Wrap, ETF models, SMAs, Model
only SMA, Fund Strategist portfolios
holdings: Yes
Program is compatible for: Brokerage, RIA, Trust,
Dually Registered, and Self Custody
sub-asset class, by suitability, by risk tolerance
Rebalancing: Yes
Custodians supported: Fidelity IWS, National Financial,
Schwab, Pershing, TD Ameritrade, JP Morgan, RBC,
First Clearing, Sterne Agee, and others
34
Eqis • 1000 Fourth Street, Ste. 650, San Rafael, CA 94901 • www.eqis.com
A
Dave O’Rourke
Phone: (800) 949-9936
Email: dave.orourke@eqis.com
Brand of Program: EQIS Capital Management, Inc.
1. Replacing mutual funds that can be expensive, taxinefficient, and non-transparent with separately
managed accounts whenever feasible;
Type of program: Separately Managed Account (SMA)
and Exchange Traded Fund (ETF) Wrap
Total assets in program: Over $1 billion (Approximately
100% growth over prior 12 months)
t EQIS we believe wealth management needs to
be reinvented. For too long, the playing field has
been tilted away from advisors and their clients.
We strive to address this problem by implementing a
three-pronged strategy:
2. Providing technology built by advisors for advisors that
aims to be user-friendly and time saving, yet flexible so
you can provide investments suitable to unique clients;
3. Supporting advisors with knowledgeable consultants
and helpful administrative support who are there to try
their best in going the extra mile to say “yes” and follow
through to help you grow your business.
We truly believe that advisors are key to helping investors
implement advanced investment alternatives. If you are
ready for the challenge and reward of being a pioneer,
then join us in reinventing wealth management.
Examples of how we can serve advisors include:
1. Globally diversified, multi-manager, multi-strategy
SMAs with an account minimum of only $25,000;
2. Money manager due diligence including review of
performance, methodology, and management;
3. Proposal generation and money management options
both for advisors who want the money management
details taken care of for them and advisors who want
to customize asset allocations and manager selection;
4. Proposal generation concierge service for advisors
who want to simply fill out a form and be ready for a
client meeting.
Managers GIPS compliant: Some
Type of products available: Advisor Directed Unified
Managed Account (UMA) and managed ETF
programs
holdings: Yes
Program is compatible with: IBD, RIA, 401k, Trust
Asset allocation methodologies: By risk tolerance,
asset class, equity style, geographic region, and
investment philosophy
Rebalancing: If desired
Custodians supported: Foliofn
35
2015 AmericA
merica’s Best tAmP
TAMPs
Flexible Plan Investments, Ltd. • 3883 Telegraph Rd, Ste 100, Bloomfield Hills, MI 48302 • www.flexibleplan.com
A
Financial Times Top 300 Money Management
firm headquartered in Michigan, Flexible Plan
Investments delivers effective money management,
client communication, and back office solutions to financial
advisors while its professional asset managers direct client
portfolios, enabling advisors to grow their practices. For
over 30 years, our focus has been on preserving and growing
capital while responding to shifting market environments in
real time to provide investors with competitive returns while
reducing risk.
“Active management is at the core of everything we do,”
Jerry Wagner, Founder of FPI, explains. “Beating the
market is not what active management is about; rather, it is
an under-utilized, defensive tool. If you can reduce losses,
performance will usually take care of itself over a full market
cycle, because the investor will have more money to invest
when the market comes back.”
Along with active management, FPI employs strategic
diversification as a defensive tool. By bringing a mix of active
strategies to the average investor, we make it more likely
that a portion of a client’s portfolio is correctly positioned
to weather market storms. FPI’s OnTarget Investing
process improves client retention rates by monitoring
where a client’s portfolio is in relation to their personalized
benchmark.
36
Len Durso
Phone:
225-4936
Phone: (412)
412-225-4936
Email:
sales@flexibleplan.com
e-mail: sales@flexibleplan.com
Brand
StrategicSolutions/Schwab/Folio/
Solutions/Schwab/Folio
Brand of
of Program:
Program: trategic
Institutional/Various
VAs
and
Various VAs and white labels white labels
Type
Wrap,ETF
ETFwrap
Wrap
Type of
of program:
program: Mutual
Mutual Fund
fund wrap,
Total
assets
in
program:
$2+
billion
Total assets in program: $2+ billion
Year
1981
Year program
program began:
began: 1981
Managers
on
platform
Managers on platform vetted:
vetted: Yes
Yes
Managers
GIPS
compliant:
Tes
Type of
of products
products available:
available: Mutual
Type
Mutual funds,
funds, ETFs,
ETFs, SMAs,
SMAs,
UMAs,VAs, VULs
VULs
UMAs,VAs,
Program
Program uses
uses platform
platform to
to track
track reporting
reporting of
of client
client
holdings:
Yes
holdings: Yes
Program
FPs
Program is
is compatible
compatible for:
for: RIA,
RIA, Registered
Registered Reps,
Reps, FPs
Program
for tax
tax and
and trading
trading efficiency:
efficiency: No
No
Program optimized
optimizes for
Sleeve-level reporting:
reporting: Yes
Sleeve-level
Yes
Program
links
to
a
trade
Program links to a trade execution
execution or
or order
order
management
system:
Yes
Program
Program links
links to
to a
a trust
trust accounting
accounting system:
system: Principal
Principal
custodian
is
a
trust
company
limited
custodian is a trust company limited support
support for
for third
third
party
software
party software
Private
Private branding
branding or
or white
white labeling
labeling possible:
possible: Yes
Yes
Proposal generator:
generator: Yes
Yes
Proposal
Generates
Yes
Generates investment
investment policy
policy statements:
statements: Yes
Asset
Asset allocation
allocation methodologies:
methodologies: Dynamic
Dynamic Risk
Risk
Management,
MPT,
Non-MPT
proprietary
Management, MPT, Non-MPT proprietary systems
systems
Rebalancing:
Yes
Rebalancing: Yes
Aggregation of
of held-away
held-away accounts:
accounts: No,
Aggregation
No, but
but some
some BD
BD
connectivity available
available
connectivity
Custodians
Custodians supported:
supported: Trust
Trust Company
Company of
of America,
America,
Schwab,
Fidelity,
Folio
Institutional,
various
VAs, and
and
Schwab, Fidelity, Folio Institutional, various VAs,
retirement
platforms
retirement platforms
Marketing
supportsales
Marketing support
Support offered:
Offered:40+
Yes,sales
40+ person
department
plus
separate
marketing
department
support department as well as separate
marketing
department
36
31
FOLIODYNAMIX
Wealth Servicing Made Seamless
FolioDynamix • One Harmon Plaza, 6th Floor Secaucus, NJ 07094 • www.foliodynamix.com
F
OLIODYNAMIX empowers wealth management
firms for innovation and growth with a truly unified,
secure cloud-based wealth management technology
platform and the research, advisory services and insight they
need to be successful.
Supporting every stage of the wealth management lifecycle,
FolioDynamix automates processes, eliminates technology
silos and delivers a unified view of performance across all
account types. The result is better profit margins for you and
better service for your clients.
The FolioDynamix TAMP solution can help you generate
greater efficiency, eliminate technology silos and reduce
costs, while at the same time dramatically improving your
wealth management programs and helping you attract new
clients. FolioDynamix can help you:
• Deploy a modern, privately-branded technology platform
for the full wealth management lifecycle
• Fill your current platform gaps through our unique,
modular structure
• Enable connectivity across multiple custodians with ease
• Support household-level reporting and proposal
generation
• Gain access to access to over 500 third-party institutional
grade researched products
• Offer and support a broad range of account programs
(UMA, UMH, SMA, MFW, discretionary and nondiscretionary) with a single platform
• Provide centralized or decentralized overlay management
• Customize experiences at the correspondent level
• Offer a powerful web-based advisor toolset to improve
advisory productivity and enable advisors to better serve
clients
Aaron Schumm
Phone: +1 888-526-6300
Email: sales@foliodx.com
Brand of Program: FolioDynamix TAMP
Type of program: Mutual fund wrap, ETF wrap,
traditional SMA, Model-only SMA, UMA, UMH
Total assets in program: Key Operating Metrics -- More
than $21 billion in AUM and $709 billion in AUA
Type of products available: UMA/UMH, MFW, ETF
models, SMA, model SMA
holdings: Yes
Program is compatible for: Banks, Broker Dealers, RIAs
and Trust firms
Program links to a trust accounting system:
Relationships with over 60 bank/trust organizations
with links to: Sungard AddVantage, Sungard Charlotte,
FiTech, FIS, Innovest/InnoTrust, SEI, & others
sub-asset class, by suitability
Rebalancing: Yes
Custodians supported: SunGard, FIS/Metavante,
Thomson Reuters, Broadridge, Pershing, Fidelity,
Schwab, TD Ameritrade, others
37
2015 AmericA
TAMPs
FTJFundChoice,
FundChoice,LLC
LLC••2300
300 Litton
FTJ
LittonLane,
Lane,Suite
Suite102,
102,Hebron,
Hebron,KY
KY41048
41048••www.ftjfundchoice.com
www.ftjfundchoice.com
W
eeare
area aleading
leading
provider
provider
of investment,
of investment,
reporting
reporting
service solutions.
and
service and
solutions.
Whetheryou
yououtsource
outsourceinvestment
investment
Whether
or run
runyour
yourown
ownmodel
modelportfolios,
portfolios,our
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and service
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needs to
togrow.
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and versatile
resources,
FTJ FundChoice
allows
and
versatile
resources,
FTJ FundChoice
allows your
your company
to become
instantly
scalable.
Weforward
look to
company
to become
instantly
scalable.
We look
forward toyour
providing
your
company
with
solutions
providing
company
with
solutions
that
simplifythat
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business,
restoretime,
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restore
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improve
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improve client satisfaction.
satisfaction.
FundChoice provides
providesunparalleled
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servicetotoyou
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add expertise
outsourcing and
andinvestment
investmentoutsourcing.
outsourcing.
outsourcing
38
Cory Kendall
Phone: (859) 426-2000
Email: cory.kendall@ftjfundchoice.com
e-mail:
cory.kendall@ftjfundchoice.com
Brand of Program:
program: N/A
Type of program: TAMP, Mutual Funds, ETF
Total assets in program: $4.6 billion
Managers on platform vetted: Yes - Use Third Party Rocaton
Managers GIPS compliant: Some
Type of products available: Advisor Directed, mututal
funds, ETFs
holdings: Yes
Program is compatible for: N/A
Program optimizes
optimized for
for tax
tax and
and trading
trading efficiency:
efficiency:Yes
Yes
Asset allocation methodologies: Strategic, Tactical,
Absolute Retuen
Rebalancing: Yes
Custodians supported: TD Ameritrade
Marketing Support
support offered:
Offered:Yes
Yes
38
31
LOCKWOOD
ADVISORS
AN AFFILATE OF PERSHING
Lockwood Advisors, Inc.• 760 Moore Road King of Prussia, PA 19406 • www.lockwoodadvisors.com
L
ockwood’s solution harnesses the team’s investment
management expertise and enables investment
professionals to outsource various parts of the
investment process so that they may spend more time
with clients and prospects. These solutions range from
separately managed accounts, which allow the option of
outsourcing the research component, to discretionary
solutions where Lockwood is managing portfolios on a
fully discretionary basis.
Lockwood Advisors, Inc.(Lockwood), serves as innovative
strategic partners in building highly custom, integrated,
managed account solutions designed to help drive
product adoption and grow revenue, increase operational
efficiency, reduce expenses and to assist in compliance
with account oversight.
The technology, advisory and business development
support we provide are intended to help you attain
scalability; attract and retain financial professionals; and
strengthen your end-client relationships through an
improved and consistent managed account experience.
Our highly consultative approach helps determine the feebased products, program and service offerings that best fit
your evolving wealth management offering.
Our open architecture, flexible solution offers established
firms—or those looking to enter the managed account
space—a full range of services:
• Investment Management and Research
• Front-Office Integrated Technology Solutions
• Middle- and Back-Office Solutions
• Distribution Support
Dan Penrose, Division Sales Manager
Phone: (800) 200-3033
Email: daniel.penrose@lockwoodadvisors.com
Brand of program: Lockwood
Type of program: Mutual Fund Wraps, ETF Wraps,
traditional SMA, Model only SMA, UMA/UMH
Year program began: N/A
UMH, Mutual Fund wrap, ETF models, SMAs, Model
only SMAs
holdings: Yes
Program is compatible for: Brokerage, Trust, UMA, RIA
Program links to a trust accounting system: Yes.
Sungard, FIS, SEI, others under development.
Generates investment policy statements: N/A
Asset allocation methodologies: By asset allocation,
by asset class allocation, by suitability
Rebalancing: Yes
Custodians supported: State St., BONY, FITB, Sungard,
FIS, SEI, others.
39
LRJ
Wealth Management
LRJ Investment Management • 34305 Solon Road, Suite 60, Solon OH 44139 • www.LRJIM.com
L
RJ offers wealth managers and advisor alike a
hybrid service that allows the advisor to define
TAMP parameters and implement them on
Envestnet’s quantitative portfolio solution platform.
We provided a fully customized and flexible investment
outsourcing option at a comparable cost to more rigid/
non-flexible options.
We design custom portfolios for each of our partner
firms based on the firms philosophy on investment
management.
After we design custom portfolios based on the firms
beliefs we implement the proper outsourcing plan to
allow the firm to keep as much or as little of the day to day
investment management tasks in house.
About Envestnet - ENVESTNET, INC. (NYSE: ENV)
is a leading provider of unified wealth management
technology and services to investment advisors.
Its open-architecture platforms unify and fortify the
wealth management process, delivering unparalleled
flexibility, accuracy, performance, and value.
Envestnet solutions enable the transformation of wealth
management into a transparent, independent, objective,
and fully-aligned standard of care, and empower advisors
to deliver better results.
40
Landon Jones
Phone: (440)786-6110
Email: info@LRJIM.com
Brand of Program: LRJ Investment Management
Type of program: Consulting Service
Total assets in program: N/A
Type of products available: All
holdings: Yes
Program is compatible for: RIA’s, Hybrid Reps, Family
Offices, etc.
Asset allocation methodologies: Yes
Rebalancing: Yes
Custodians supported: Schwab, Fidelity, and TD
Ameritrade. For flat fee consulting option any
custodian can be used.
40
Mt TAMP
WrapManager, Inc. • 703 Market Street, 18th Floor; San Francisco, CA 94103 • www.MtTAMP.com
W
rapManager started in 2000, as the first online,
direct-to-high-net-worth-investors managed
account program. These investors were able
to research, compare, and hire money managers. Our
experience and research has helped thousands of investors,
and through related search and consulting, thousands more
advisors and money managers. It is with this experience
that we have built our new platform – Mt TAMP.
Mt TAMP is built with new technology and no legacy
systems. We are now making Mt TAMP available to the rest
of the advisory industry to share in our success and growth.
Our platform is built with our partners, on an award
winning open source, portfolio accounting and trading
website that already has over 180 billion dollars of assets
under administration.
We have developed a simple platform that integrates the
best of proposal and portfolio accounting with your ability
to build multiple sleeve combinations under a single client
registration. Mt TAMP has a broad bench of Mutual Fund
strategists, ETF models, and SMA managers that can all be
managed through a seamless UMA implementation.
We are bringing the power back to the advisor.
The entire process works with your existing business. You
can build your proposal on a customizable, self-branded
system that feeds into a paperless account opening process.
This then builds out your client’s registration with all the
sleeves ready to trade.
Simple - Quick – Easy!
Visit www.MtTAMP.com or call 800-541-7774 to learn
more.
Jeremy Wilmerding, Director of Advisory Services
Phone: (415) 541-7774
Email: jwilmerding@wrapmanager.com
Brand of program: Mt TAMP
Type of program: UMA, MF wrap, ETF wrap, SMA, Rep
as PM
Total assets in program: $320 million
Type of products available: Separate Account
Managers, Mutual Funds, ETFs, equities, fixed income,
All managed in registration level UMA.
holdings: Yes
Program is compatible for: Brokerage, RIA, Trust,
Dually Registered
Private branding or white labeling possible: Yes,
proposal, reporting, client account view portal and
communication
Generates investment policy statements: Yes, with
customization options
suitability, by risk-profile
Rebalancing: Yes, multiple rebalancing options
Custodians supported: TD Ameritrade
41
2015 AmericA
TAMPs
Sawtooth
Sawtooth Solutions,
Solutions, LLC
LLC •• 3500
3500 American
American Blvd
BlvdW,
W Suite 150,
150 Minneapolis,
Minneapolis, MN
MN 55431
55431 •• www.sawtootham.com
www.sawtootham.com
S
awtooth is a comprehensive and flexible
investment platform delivered through a
Unified Managed Account (UMA) program.
Our collaborative approach enables trust advisors and
portfolio managers to easily implement their wealth
management offering while embedding the pillars of
an institutional framework: definable and repeatable
investment management, sales, and operational processes
including research, billing, trading and performance
reporting. Our top priority is providing the ideal solution
for your business—we customize our services to your
needs, not the other way around.
Our skilled
skilled team
team of
ofprofessionals
professionalswill
willwork
workwith
withyou
you
to tailor aa solution
solutionthat
thatmeets
meetsyour
yourrequirements
requirements
and enhances
enhances your
yourbusiness.
business.We
Weprovide
providean
anexpert
expert
investment team,
team,innovative
innovativetechnology,
technology,and
andexperienced
operations
that will staff
workthat
withwill
youwork
to expand
your
experiencedstaff
operations
with you
business,
your back
office, your
and increase
the and
to expandmanage
your business,
manage
back office,
quality
both
the advisor
clientand
experience.
increaseofthe
quality
of bothand
theend
advisor
end client
Our
missionOur
is tomission
supportisasset
growth asset
and better
enable
experience.
to support
growth
and
our
clients
to focus
on client
service
closing
sales.
better
enable
our clients
to focus
onand
client
service
and
Our
platform
is integrated
Salesforce.com
CRM
closing
sales. Our
platformwith
is integrated
with Salesforce.
and
selling by streamlining
the sales process
comencourages
CRM and encourages
selling by streamlining
the
and
consistency
every point
of contact.
salesproviding
process and
providingacross
consistency
across
every
Sawtooth
helps strengthen
differentiate
point of contact.
Sawtoothyour
helpsbrand,
strengthen
your your
company
in
the
marketplace,
and
ultimately
grow
your
brand, differentiate your company in the marketplace,
business.
and ultimately grow your business.
29
34
New business contact: Erich Leidel
Phone: (952) 831-9359
(888) 584-0039
(888) 584-0039
Email: sales@sawtootham.com
Brand of Program:
program: Sawtooth
Sawtooth Platform
Platform
Type
of
Program:
SMA,
UMA,
Hybrid
Type of program: SMA, UMA, Hybrid
Total
in program:
Program: $2
$2 Billion
Billion
Total Assets
assets in
Year
Year Program
program Began:
began: 2009
2009
Managers
on
platform
Yes
Managers on platform vetted:
vetted: Yes
Managers
GIPS
compliant:
Yes
UMH, Mutual Fund wrap, ETF models, SMA’s, Model
UMH, Mutual Fund wrap, ETF models, SMA’s, Model
only SMAs, Insourced or Outsourced Tax Sensitive
only SMAs, Insourced or Outsourced Tax Sensitive
Overlay Technology
Overlay Technology
Program
usesYes
platform to track reporting of client
holdings:
holdings: Yes
Program is compatible for: Brokerage, RIA, Banks,
Program
Trusts is compatible for: Brokerage, RIA, Banks,
Trusts
Program optimizes for tax and trading efficiency: Yes
Sleeve-level
reporting: Yes
Program
Program links
links to
to a
a trade
trade execution
execution or
or order
order
management
system:
Yes
Program
Yes,
Program links
links to
to a
a trust
trust accounting
accounting system:
system: Yes,
full
integration
across
SunGard
Trust
Accounting
full integration across SunGard Trust Accounting
Platforms
Platforms including
including Global
Global Plus,
Plus, AddVantage,
AddVantage, and
and
Charlotte
Charlotte
Private
Yes
Private branding
branding or
or white
white labeling
labeling possible:
possible: Yes
Asset allocation methodologies: All methodologies
supported. By asset class, sub-asset class, risk
supported
tolerance, suitability,
etc.
Rebalancing:
Yes
Rebalancing:
Yesheld-away accounts: Yes
Aggregation of
Custodians supported: TD Ameritrade, Schwab,
Custodians
TD Ameritrade,
Pershing, supported:
Fidelity, US Bank
, BONY, FCC,Schwab,
NFS, PAS
Pershing, Fidelity, US Bank , BONY, FCC, NFS, PAS
Marketing Support Offered: Yes
29
34
SEI • 1 Freedom Valley Drive, Oaks, PA 19456 • seic.com/advisors
S
EI is a leading, global provider of investment
management business outsourcing solutions,
investment processing, and fund processing that
help corporations, financial institutions and financial
advisors. As of December 31, 2014, through its
subsidiaries and partnerships in which the company has
a significant interest, SEI manages or administers $625
billion in mutual fund and pooled or separately managed
assets, including $253 billion in assets under management
and $372 billion in client assets under administration.
With a history of financial strength, stability, and
transparency, the SEI Advisor Network has been serving
the independent financial advisor market for more than
20 years with $47.0 billion in advisors’ assets under
management (as of December 31, 2014). The SEI
Advisor Network is a strategic business unit of SEI.
The more than 6,100 independent advisor clients who
work with SEI, leverage our core competencies to run
more efficient and scalable businesses. This expertise
is focused on providing financial advisors with turnkey
wealth management services through outsourced
investment strategies, administration and technology
platforms, and practice management programs. It is
through these services that SEI helps advisors save time,
grow revenues, and differentiate themselves in the market.
SEI is ranked as one of the top U.S. Advisory Third-Party
Managed Account Providers (Cerulli Associates, 4Q
2014). SEI is a publically-traded company and is listed on the
NASDAQ exchange under the symbol SEIC. New business contact:
Phone: (888) 734-2679
Email: adnetleadgenteam@seic.com
Brand of program: Integrated Wealth Management
Program
Type of program: No-load, Mutual Fund Wrap, StyleSpecific Mutual Funds, ETF Wrap, Traditional SMA and
Unified Managed Accounts
Managers GIPS compliant: Yes, some managers
UMH, Mutual Fund Wrap Including Goals-based and
Tax-managed Strategies
holdings: Yes
Program is compatible for: Brokerage, Trust, RIA
sm
Trust-3000, SEI Wealth Platform
sub-asset class, by suitability, by goal, by objective
Rebalancing: Yes. Multiple rebalancing options
Custodians supported: Pershing, Fidelity, Schwab, TDA,
SEI Private Trust Company
30
Sowell Management Services • 7301 River Pointe Drive, North Little Rock, AR 72113 • www.sowellmanagement.com
S
owell Management Services is a ‘fee only’ third party
money management firm, offering turn-key investment portfolios to mass affluent and high net worth
individuals, retirement plans, corporations, trusts and
foundations. These assets are managed on an off-platform
basis, primarily through a broad network of financial intermediaries affiliated with some of the industry’s largest an
most respected Independent Broker/Dealers and Registered
Investment Advisors.
With over $500 million in affiliated assets, both domestic
and abroad, Sowell Management offers a consultative and
customized approach via a service-based offering focused on
the business needs of the advisor, along with the underlying
demands of their clients. With a team of dedicated professionals assigned to each account, Sowell Management is
committed to offering up a ‘white glove’ experience. Their
value proposition is to provide excellent service with flexible
and intelligent boutique investment management at a fair
price. At Sowell, it’s all about the overall advisor experience.
The Sowell business model offers a broad and comprehensive range of outsourced services to the financial intermediaries they serve. Grounded in the underlying premise that most
advisors do not have the time to be ‘everything to everybody’,
industry professionals choose to partner with Sowell Mangement to spend more of their time focusing on the activities
they enjoy most (like managing and cultivating relationships
with their clients) while outsourcing the investment management, technology, and service components of their business.
31
Chuck Hicks
Phone: (800) 399-2391
Email: chuck@sowellmanagement.com
Brand of Program: Customized SMA High Net Worth
Stock/Fixed Income/Alternative Investment Portfolios
Type of program: SMA and UMA, Mutual Fund, ETF
(Tactical and Strategic Portfolios)
Total assets in program: $500 million in affiliated
assets
Type of products available: SMA and UMA, Mutual
Fund, ETF (Tactical and Strategic portfolios), 403(b)
account management and 401(k) plan management,
Variable Annuity
holdings: Yes
Program is compatible for: Brokerage, Trust, RIA
sub-asset class, by suitability, by goal, by objective
Rebalancing: Yes - multiple rebalancing options at all
custodians
Custodians supported: Fidelity, Pershing, Schwab, TD
Ameritrade
31
Scott Martin is the Senior Editor, The Trust Advisor
Now lead writer for The Trust Advisor, he has been tracking
various aspects of the financial industry since 2001 for
publications like Research, Buyside and Institutional Investor,
as well as for CNN. As an advocate for the trust industry, he
has testified to the Nevada Senate Committee on Commerce, Labor and
Energy on issues of national competition. He is also active as a marketing
and editorial consultant for registered investment advisors.
Robert Ellis is a wealth management strategy consultant.
Robert J. Ellis is a Principal at Fast Track Advisors, LLC,
advising wealth management firms on client segmentation,
product, and delivery channel strategies, plus the related
technologies, including advisor platforms, planning and
distribution systems. Bob holds a BBA from the University of Michigan
and an MBA from the Harvard Business School, as well as gaining
licenses as a CPA, securities principal (Series 24), and life/health/accident
insurance agent in N.Y.
Steven Maimes, principal of SALAM Research.
He is an independent researcher, analyst and freelance
writer. Current focus includes media analysis and competitive
marketing research. He is an editor/researcher for The Trust
Advisor and a former stockbroker. His contributions to The
Trust Advisor include Understanding and Managing Digital Property,
Michigan Adopts Uniform Trust Code, and Pet Trust States Grow as
Owners Continue to Leave Money to Care for their Dogs and Cats.
32
AMERICA’S LEADING WEALTH MANAGEMENT E-NEWSLETTER
The Trust Advisor
1299 Ocean Avenue, Suite 900
Santa Monica, CA 90401
Phone: (800) 392-8811
Copyright © 2015. The Trust Advisor. All rights reserved.
34

2015 AMERICA`S BEST TAMPS

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