America’s Best TAMPs Showcase - Flipbook - Page 16
2026 AMERICA’S BEST TAMPS
WHO USES TAMPs?
The ETF wrap account is the natural
successor, and its growth as the
preferred baseline model already reflects
that. Passive ETFs tied to legitimate
indices will anchor the majority of
these accounts. A handful of actively
managed funds, in categories like
emerging market international or highyield bonds where passive alternatives
are less compelling, will retain a place in
wrap structures. But ETFs will dominate.
ABT Universe
RIAs: $93.07B
The same dynamic is playing out one
level up, where SMAs are steadily giving
way to UMAs. The models-based UMA
is particularly well-suited to where
the industry is heading: the money
manager downloads models rather than
executing trades directly, each strategy
occupies its own sleeve, and overlay
tools handle tax and trading efficiency
across the whole structure.
That tax efficiency capability, sometimes
called tax alpha, is becoming a genuine
competitive differentiator. Advisors
and firms that can demonstrate better
after-tax returns through active tax
management will have a meaningful
edge. Those that can’t will find it
increasingly difficult to justify their fees
against alternatives that can.
Some advisors still insist on managing a
proprietary sleeve of individual securities
as a way of demonstrating their value
to clients. It’s an approach built on
performance as the primary proof point,
which is a precarious position for both
the advisor and the client. Regulatory
scrutiny of these “rep as advisor”
arrangements is likely to tighten, and the
advisors most dependent on them may
find that pressure arriving sooner than
they expect.
UMA, SMA AND MORE
The underlying outsourced portfolio
solution investment model that drives
TM
IBDs: $24.41B
Wirehouse: $17.15B
Bank/Trust: $17.06B
MFOs: $16.05B
Family Offices: $6.26B
Source: The Wealth Advisor’s TAMP Survey 2025
Law Firms: $5.25B
Other (Estate Planning, Law Firm, Insurance
Broker, Insurance Company, Mutual Fund
IRA Custodian, BD Custodian, Third Party
Administrator): $22.38B
Each segment shown represents AUM only.
$2 trillion includes both industry AUM and AUA.
modern TAMPs can be classified into
five fundamental varieties depending
on the type of investments offered, the
firm’s responsibilities, and the added
capabilities of overlay—not to mention
cost.
around” all the client’s mutual fund
activity, providing transparency,
simplicity, and an alternative pricing
option opposed to paying an upfront commission or surrender
charge.
1. Mutual Fund Wrap Accounts
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
manages the funds as a single
account, for a single annual fee of 85
to 150 basis points. That fee “wraps
2. ETF Wraps
An ETF wrap is a 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 periodically assessed to
respond to market changes. As with
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