America’s Best TAMPs Showcase - Flipbook - Page 18
2026 AMERICA’S BEST TAMPS
alternative investments. A platform that
can’t deliver that range will lose those
relationships to one that can.
Overlay managers play a meaningful
role in making complex portfolios
work in practice. They assist advisors
with model portfolio implementation,
investment customization, and tax
optimization, bringing a level of
coordination to multi-sleeve accounts
that would otherwise require significant
manual effort.
For platforms that use a rules-based
overlay tool rather than a dedicated
manager, tax and trading efficiency
can still be maintained at a lower cost,
though with somewhat less flexibility
than the full overlay manager model
provides. The right choice depends on
the complexity of the client base and
how much customization the advisor’s
practice typically demands.
The product fee is the institutional rate
charged for the underlying investment,
whether that’s a mutual fund, ETF, or
managed portfolio. In a UMA structure,
this should reflect only the managers’
models, separate from trading costs.
TOTAL FEE TRANSPARENCY
AT LAST
• For ETFs, product fees typically range
from around 10 basis points for largecap strategies to roughly 25 basis
points for smaller indices.
For too many retail investors, the fee
on a managed account is a single
unexplained number. That has to
change. As managed money platforms
become the industry standard, fees
need to be broken into at least three
distinct components so clients can see
exactly what they’re paying for and why.
WHY DO ADVISORS USE TAMPs?
MORE TIME TO
CHASE PROSPECTS
39%
MORE TIME FOR
CURRENT CLIENTS
36%
HOLISTIC FINANCIAL
PLANNING
34%
OPERATIONAL
EFFICIENCY
31%
BETTER CLIENT
OUTCOMES
22%
FIDUCIARY DUTY /
COMPLIANCE
TM
• For UMAs, model fees generally fall
between 35 and 50 basis points
depending on the asset class.
The firm fee covers the real cost of
delivering the managed money platform:
trading, custody, statement preparation,
and other definable operational
expenses. It should incorporate both
the firm’s markup and the advisor’s
account-based compensation.
Services beyond the platform itself,
financial planning being the most
common example, should be billed
separately and clearly. All-in ETF wrap
fees should come in below 150 basis
points for smaller accounts. UMAs
serving larger, more complex portfolios
should fall between 100 and 175
basis points, depending on the overlay
services involved.
Transparent pricing isn’t just good
ethics. It’s good strategy. Clients who
understand what they’re paying for are
more likely to choose managed money
over the alternatives, and clearer fee
structures help make the case that
professional management is worth it.
9%
Source: Wealth Advisor Survey 2025. Participants were allowed to pick multiple
options so percentages add to more than 100%.
18
Automation should continue to push
fees lower and account minimums
down with them. That matters most
for the mass-affluent investor, the
segment most in need of relief from
poor products and excessive costs.
Minimums for ETF wraps are already
