Key Takeaways
- EAM (External Asset Manager) is a practical term for a firm that provides investment management and advice to clients from outside a particular banking group, rather than as an internal unit of that group. Singapore does not have a separate licensing category called "EAM."
- Put simply, the assets remain with a bank or securities firm, while the role of deciding how to invest them is entrusted to an external specialist.
- The value of an EAM lies not only in product access or investment performance, but also in the separation of custody from the investment management function, management across multiple financial institutions, open architecture, and coordination with professional advisers.
- However, being "independent" does not in itself mean that an EAM is neutral or free from conflicts of interest. Its regulatory status, trading authority, custody arrangements, fees, total cost, and product selection process must be reviewed.
- For a family office, the key question is not simply which EAM is better, but first which functions the EAM should perform within the family's asset administration framework.
Contents
- Singapore's Private Wealth Market and EAMs
- What Is an EAM?
- How EAMs Differ from Private Banks and Japanese IFAs
- What Is the Value of Using an EAM?
- Cross-Border Wealth Management
- Evaluate EAM Fees on a "Total Cost" Basis
- How Should Investment Performance Be Evaluated?
- Seven Points for a Family Office to Review When Selecting an EAM
- The Often-Overlooked Risk of Dependence on Individual Personnel
- Viewing an EAM as an "External Function" of the Family Office
- Conclusion: The Essence of EAM Selection
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