Guide To Choosing An Independent Asset Manager (Part One)

General Finances, Investments
By hiveup,

In this guide, you will learn:

– What an independent asset manager can do for you.

– The key factors to consider when choosing an independent asset manager.

– The step-by-step process you should follow when choosing an independent asset manager.


What can an independent asset manager do for you?

searching, magnifying glass, choosing

Independent Asset Managers (IAM) offer wealth management services that are independent of a private bank. Most independent asset managers started their careers as private bankers. As a client, you will get the advantage of their experience and the network of contacts that they have established in the financial services industry.

The primary benefit that clients get from dealing with an IAM is that you have direct access to the individuals who own and operate the firm as well as close contact with the portfolio managers. This is a more personalised experience compared to dealing with a large private bank, where private bankers typically oversee a much larger number of clients.

If you retain the services of an independent asset manager, you can expect to receive the following services and benefits:

  • Independent investment advice that is in sync with your risk profile and your expected rate of return.
  • The option to work closely with the IAM’s portfolio managers to build a portfolio that suits your needs.
  • A transparent fee structure.
  • Access to institutional-class investments. While the product may not differ to those offered at retail level, the upfront sales charge and ongoing management fees charged to the investor will differ significantly.
  • Highly personalised service and impartial advice on investment options.
  • Consolidated reporting. The convenience of dealing with your independent asset manager for your entire asset portfolio, which is especially useful if you have investments spread across several private banks and institutions.

Many independent asset managers provide additional services as well that include trust planning, direct investment opportunities, and multi-family office services.

How is this different from what a private bank does? It’s important to remember that the responsibility of an individual who works for a private bank is to the organisation. There are revenue targets to be met and the salespeople in a private bank are constantly under pressure to increase business volumes.

Key factors to consider when choosing an independent asset manager

It’s advisable to consider appointing an asset manager only after you have confirmed that the firm that you are proposing to deal with is registered with the appropriate regulatory authorities. Most well-regarded firms are also members of the local self-regulating bodies.

Join us next week for our instalment as we list the key factors in assessing prospective independent asset managers.


Be the first to write a comment.

Your feedback