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Review summary

TAM Asset Management

TAM Asset Management manages assets for private clients, insurance companies, pension schemes, trust companies, charities and other financial institutions.

They manage assets of over £415m as at 31st December 2020.

TAM Asset Management has it's head office in London and their international offices are located in Mauritius and Spain. They claim to offer the flexibility of both onshore and offshore investment management.

TAM Asset Management Ltd is authorised and regulated by the Financial Conduct Authority No. 208243. Registered in England No. 04077709.

Our Verdict
A Closer Look
FAQs
Customer Reviews

TAM Asset Management is an award-winning discretionary investment manager founded in 2000 by their CEO, Lester Petch.

The key features of TAM's discretionary management services can be summarised below:

  • They accept investments directly or transfers from an ISA, pension scheme, life insurance bond or trust.
  • TAM works with most of the major product providers and are adding new ones each day.
  • The time to return clients' money is reported every day.
  • TAM claims to not have any lock-in periods for clients withdrawing or moving their funds.
  • Their Focus, ESG, Sharia and Passive ranges are available in Defensive to Adventurous, and their Premier service is available across the spectrum.
  • TAM uses diversification across asset class, geographical focus and underlying funds.

Model portfolio services for financial advisers:

TAM Asset Management does not offer financial advice so it is essential that they work with financial advisers and intermediaries to offer their services to clients.

Over the years, they have developed a range of model portfolios for advisers, namely:

  1. TAM Premier
  2. TAM ESG
  3. TAM Sharia
  4. TAM Passive

1. TAM Premier:

TAM Premier is their leading active asset management service that has an active investment strategy. It offers a broad range of risk-graded portfolio choices comprising a wide variety of diversified funds.

TAM Premier clients can select an investment portfolio that most closely reflects their investment return objectives and attitude to risk. They offer seven risk-graded portfolios that span the risk spectrum from more defensive, lower risk returns, through to higher risk, equity based investment returns. These are:

Portfolio*

Risk rating
Premier Liquidity Plus 2
Premier Defensive 2
Premier Cautious 3
Premier Balanced 4
Premier Growth 5
Premier Adventurous 6
Premier Speculative 7

 

2. TAM ESG:

The TAM ESG service provides investors with a range of environmental, social & governance (ESG) portfolios designed to protect and grow their wealth in a socially responsible manner.

TAM ESG clients can select an investment portfolio that most closely reflects their investment return objectives and attitude to risk. TAM Asset Management offers five risk-graded portfolios that span the risk spectrum from more defensive, lower risk returns, through to higher risk, equity based investment returns. These are:

Portfolio*

Risk rating
ESG Defensive 3
ESG Cautious 4
ESG Balanced 5
ESG Growth 6
ESG Adventurous 7

 

3. TAM Sharia:

TAM Sharia service provides investors with a range of Islamic investment portfolios designed to protect and grow their wealth in a Sharia-compliant manner.

They offer five risk-graded portfolios that span the risk spectrum from more defensive, lower risk returns, through to higher risk, equity based investment returns. These can be summed up below:

Portfolio*

Availability
Sharia Defensive Direct
Sharia Cautious Direct
Sharia Balanced Direct
Sharia Growth Direct
Sharia Adventurous Direct

 

4. TAM Passive:

TAM Passive is their range of portfolios using solely passive investments.

The passive portfolios seek to outperform the TAM benchmark on a risk/return metric through a diversified set of passive investments. This passive investment strategy seeks to maximise returns over time, by keeping trading to a minimum thereby avoiding excessive dealing and other charges that might drag on performance.

TAM Passive clients have a choice of five risk graded portfolios:

Portfolio*

Availability
Passive Defensive Direct
Passive Cautious Direct
Passive Balanced Direct
Passive Growth Direct
Passive Adventurous Direct


*You can learn more about what each of the portfolios listed above entail in the documents section of this review.

NOTE:

  • TAM's investment philosophy focuses on guessing the future (nobody can predict the future and the markets).
  • All portfolios are built on a multi-manager basis in order to tap into different specialisms if you buy into the theory that active management is likely to beat the market (which we do not).
  • We would highly recommend reading the 'expert verdict' section of this review to learn why our experts gave TAM Asset Management 3.5 out of 5 stars.

Additionally, here's a free guide that can help you achieve better results. In this guide, you'll learn:

  • Academic evidence only shared with a select few firms across the world
  • A real-life example of why you should never try to outguess the market
  • Why a fund's past performance is not enough to predict future returns
  • Why you need to focus on what you can control and why this leads to a better investment experience
  • Why you should accept the markets for what they are
  • What can impact behaviour and make people seek instant gratification

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The Pros

> Award-winning discretionary services
> Good administration

The Cons

> Expensive way to invest
> Active methodology is academically questionable
> Pays retrocession commission to your adviser which can create conflict
What is TAM Asset Management's performance track record?

Performance from TAM has been impressive, particularly in recent times with difficult market conditions to work in.

The outperformance is down to the success of their tactical short and medium-term calls.  This is what you pay an active manager to do, and when it works everything is great.

However, empirical evidence is overwhelmingly stacked against anyone being able to do this consistently, and it wouldn’t take many incorrect calls for performance to suffer. 

What is TAM's investment process?

TAM Asset Management's investment process is as follows:

Step 1: Investment objective review and objective setting

TAM says that the key to their investment process is ensuring that, from the outset, every client has a realistic idea as to what they can expect. Therefore, before signing up to their services you must ensure that you have established an accurate investment objective with your intermediary. This will form the cornerstone of how TAM manages your assets.

Investment horizons can change however, and they will be affected by your personal circumstances. TAM recommends that if your goals or circumstances change, you should inform your financial adviser immediately and re-evaluate your portfolio to ensure it is balanced and in line with these changes. 

Step 2: Investment strategy formulation

Once TAM has been informed of a client's investment objective, they will propose an investment strategy that is most aligned with those requirements and objectives. Their investment strategy will include both asset and security selection proposals.

Step 3: Asset allocation

TAM says that asset allocation is a medium to long-term process designed to capture more macro-economic determined events through investing in asset classes that they expect to appreciate and withdrawing from those they expect to decline. 

For example, investing in equities in 2007 (and not bonds) would have been beneficial, as opposed to 2008 when an emphasis on bond investment (and not equities) would have proved a more successful strategy.

In other words, they try to guess and time the market (which we do not agree with).

TAM says that they attempt to ensure that the asset allocation of the portfolio between the various asset classes (shares, bonds and cash, etc.) is continually managed according to the changing economic cycles and financial markets.

However, this process is always managed in accordance with the investment mandate and corresponding risk profile. TAM claims that during certain phases of the economic cycle, asset allocation is the most effective method of maintaining the performance of portfolios (we beg to differ).

Step 4: Fund and security selection

TAM says: "It is obvious that no single investment company or portfolio manager can be a top performer in respect of every geographic region or different type of asset class".

To try and get around this, they consider a multi-manager approach to any investment portfolio and choose specialist managers for differing investment disciplines. 

They prefer to diversify amongst known specialists with proven track records. Where appropriate, they may also hold discrete investments in individual securities, if both the portfolio type and risk profile warrant it. 

As per TAM, the advantage of this diversified approach is that portfolios will be exposed to the investment styles, strategies and positioning of different, often top, investment specialists. This reduces the risk profile of an investment portfolio, in TAM's opinion - should one investment house misread the market, it has less chance of having a negative effect on the entire portfolio.

Of course, you could ditch the entire active management/crystal ball approach entirely - but then, TAM wouldn't be the right DFM for you!

Step 5: Performance monitoring and review

Each portfolio is individually benchmarked in accordance with risk profiling and is monitored and reviewed by the investment team at TAM on an on-going basis.

Each individual fund investment is also checked for any style shift within the strategy employed to ensure that the continued management is in line with their expectations. 

TAM Asset Management says that they continually monitor for any deviation from performance expectation against peer group and within strategy to ensure, as far as possible, that the underlying managers do not take actions that may impinge upon their ability to generate on-going satisfactory returns.

Did not get the results I was promised

I knew nothing about investing - and was impressed with the extraordinary claims TAM made about how their approach can basically beat the markets and even provide a safe haven for investing.

Soon realised that it wasn't true and parted ways with them.

Expert assessment of TAM Asset Management

While TAM Asset Management is an award-winning reputable business and they provide a range of international, actively managed DFM solutions, we believe that there are far better, more cost-effective alternatives available.

If you already have a portfolio with TAM and it is worth £250,000 or more, we strongly recommend you seek a Second Opinion to ensure you are on track to get and keep the life you want.

GET A SECOND OPINION

TAM Asset Management - Overview Brochure

TAM Asset Management - Premier Liquidity Plus Factsheet

TAM Asset Management - Premier Defensive Factsheet

TAM Asset Management - Premier Cautious Factsheet

TAM Asset Management - Premier Balanced Factsheet

TAM Asset Management - Premier Growth Factsheet

TAM Asset Management - Premier Adventurous Factsheet

TAM Asset Management - Premier Speculative Factsheet

TAM Asset Management - ESG Defensive Factsheet

TAM Asset Management - ESG Cautious Factsheet

TAM Asset Management - ESG Balanced Factsheet

TAM Asset Management - ESG Growth Factsheet

TAM Asset Management - ESG Adventurous Factsheet

TAM Asset Management - Sharia Defensive Factsheet

TAM Asset Management - Sharia Cautious Factsheet

TAM Asset Management - Sharia Balanced Factsheet

TAM Asset Management - Sharia Growth Factsheet

TAM Asset Management - Sharia Adventurous Factsheet

TAM Asset Management - Passive Defensive Factsheet

TAM Asset Management - Passive Cautious Factsheet

TAM Asset Management - Passive Balanced Factsheet

TAM Asset Management - Passive Growth Factsheet

TAM Asset Management - Passive Adventurous Factsheet

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