AMK - AssetMark Financial Goes Public in Growing TAMP Market
AssetMark Financial (NYSE: AMK), which went public in July, is emerging as a major player in turnkey asset management programs, or TAMPs. A TAMP is a platform that allows financial advisors, broker-dealers, banks, and others to outsource certain investment management functions and services. They provide access to a range of automated processes, including account opening, portfolio construction, financial planning, billing, reporting, and goal analysis, among other services.
TAMPS are not a new concept, but they are becoming increasingly popular because they save advisors the time and money it would take to build out their own infrastructure. That's a big investment, particularly for those with limited resources. AssetMark says it's found that outsourcing saves advisors about eight hours per week and 17% in operating costs.
AssetMark (hereafter AMF) is one of the leaders in the TAMP market, with about $56 billion in assets under management (AUM). That's third behind Envestnet, which has about $500 billion in AUM, and SEI with $65 billion. But AMF has been gaining market share and is in the sweet spot of the transitioning financial advisor market. Regulations and trends affecting the way financial advice is dispensed are playing right into its strengths.