Private Banking Advisory (EAM)
Contact us to find out moreAs Asian markets have matured and wealth has increased, there is a booming client base of affluent individuals who are open to different forms of wealth management.
A decade ago, External Asset Managers (EAMs) were virtually unknown in Asia, despite being well established in Europe and the USA. Now the sector is expanding rapidly. Hong Kong and Singapore have a total of 160 independent asset management firms, and collectively manage USD91.5 billion in private wealth as of 2017.*
*2018 IAM Report: Asia-Pacific Ready for Take-Off?
Three key reasons of using EAM
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Assurance of independence - Relationship Managers receive a fixed percentage management fee.
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EAMs offer flexibility and a highly personalised client service.
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EAMs have lower costs and are more flexible on fee structures compared to banks.
LGT is a leading international private banking and asset management group that has been fully controlled by the Liechtenstein Princely Family for over 90 years. As at 31 December 2018, LGT managed assets of over USD 200 billion for wealthy private individuals and institutional clients. LGT employs over 3,400 people in more than 20 locations in Europe, Asia, the Americas and the Middle East. The bank offers active portfolio management, expertise in regional markets and provides a suite of family governance and philanthropy services. More importantly, clients may invest in the same opportunities as the owners through the ‘Princely Portfolio’ investments via LGT's open architecture and state-of-the-art investment platform
*Information and source provided by LGT in 2019.
Bank of Singapore is a wholly owned subsidiary of OCBC Bank, Southeast Asia’s second largest bank. Headquartered in Singapore, Bank of Singapore operates from a strong and open economy. Bank of Singapore is one of the fastest growing private banks in Asia, offering a structured and consistent approach - an open architecture product platform with robust research capabilities to deliver a total risk-based solution customised to each client’s needs. As it is strategically positioned to serve clients across the globe with our network of offices, Bank of Singapore also enjoys access to OCBC Bank’s full suite of investment and commercial banking solutions such as financing, insurance and brokerage services.
Some key trends of External Asset Management
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Growing AUM and number of EAMs
Julius Baer’s Independent Wealth Management Report (Asia) forecasts that the combined AUM run by EAMs in Singapore and Hong Kong will grow by more than 100% to around USD55 billion by 2020 - a 25% and 50% increase of EAMs in Singapore and Hong Kong respectively.
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Custody, reporting and brokerage set-up
EAMs offer consolidated reporting across asset classes, with details for custodians, countries, and currencies. This also allows the relationship manager to offer strategic advice. Custody and broker network segments will continue growing as EAMs onboard more clients.
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Digital development
More private banks will deploy digital banking for end clients and advisors. Most banks are enhancing their current digital capabilities including portfolio viewing, securities trading, dedicated EAM portals.
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Increasing regulations
Regulators are increasing pressure on private banks and EAMs due to the breadth of their product offerings from investments to capital markets and lending.
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Evolving business model and client segmentation
AUM and EAMs will grow. With increasing price pressure, EAMs and private banks will investigate client segmentation, thus, client criteria will be based on the price the client is willing to pay for a service resulting in not entirely on AUM. This leads to have more tailor-made products, optimal segment-specific strategies and different pricing.