Systematic portfolios with active risk control
TAM Enhanced Passive is a discretionary, risk-managed model portfolio service that uses predominantly passive investments, combined with active oversight and disciplined risk management.
It is designed for advisers and clients who value cost efficiency, transparency, and consistency, while retaining a structured approach to managing portfolio risk.
What is TAM Enhanced Passive?
TAM Enhanced Passive is a range of risk-graded model portfolios constructed using low-cost passive investments, primarily ETFs.
The portfolios are managed within the same risk framework as TAM Active, with asset allocation aligned to defined risk profiles and ongoing oversight by TAM’s investment team.
While the underlying investments are passive, portfolio construction, monitoring, and risk management are active.
What TAM Enhanved Passive is – and is not
TAM Enhanved Passive is:
- A discretionary model portfolio service
- Built primarily using passive investments
- Risk-graded and aligned to client risk profiles
- Actively overseen within a disciplined framework
TAM Enhanved Passive is not:
- A fully static or buy-and-hold solution
- A benchmark-tracking fund
- An execution-only ETF portfolio
How portfolios are managed
TAM Enhanced Passive portfolios follow a clear and systematic process:
- 1
Risk profile definition
Each portfolio is aligned to a defined level of client risk.
- 2
Strategic asset allocation
Portfolios are constructed around long-term asset allocation targets using passive instruments.
- 3
Portfolio construction
Low-cost ETFs are selected to provide diversified exposure across asset classes and regions.
- 4
Ongoing oversight
Portfolios are monitored continuously, with changes made where required to maintain risk alignment or reflect structural considerations.
The emphasis is on consistency, discipline, and cost efficiency rather than tactical trading.
Active and Enhanced Passive: understanding the difference
TAM offers two complementary model portfolio services.
- TAM Active uses active asset allocation within defined ranges to respond to changing market conditions.
- TAM Enhanced Passive focuses on strategic asset allocation using passive investments, with active oversight and risk management.
Both services share the same risk framework, governance standards, and operational infrastructure.
Advisers can select the most appropriate approach based on client preference, cost sensitivity, and investment philosophy.
View the Active vs Enhanced Passive guide
Risk-led portfolio construction
Risk management remains central to the Enhanced Passive approach.
Each portfolio is designed to reflect a defined level of risk rather than to maximise returns or track a benchmark. Asset allocation is reviewed regularly to ensure portfolios remain aligned with their stated risk profile.
This approach is intended to deliver predictable behaviour across market cycles, with a strong focus on suitability and long-term outcomes.
Who TAM Enhanced Passive is designed for
TAM Enhanced Passive is typically used by advisers for clients who:
Practical information
- Available in GBP, USD, and EUR
- Minimum investment of £7,500 or currency equivalent
- Daily dealing and full transparency
- Custody provided by Pershing, a BNY Mellon company
- Compatible with most pension, trust, and wrapper structures
Important information
TAM Enhanced Passive is a discretionary model portfolio service. Clients retain full ownership of the underlying investments. The value of investments can fall as well as rise, and past performance is not a reliable indicator of future results.
