Three key reasons of using EAM
Assurance of independence - Relationship Managers receive a fixed percentage management fee.
EAMs offer flexibility and a highly personalised client service.
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.
Originally named Raiffeisen Privatbank Liechtenstein (RPL) and founded in 1998 in Liechtenstein, later acquired by Mason Group Holdings Limited. Mason Private Bank has been committed to providing private banking and wealth management services such as asset management and portfolio analysis across Asia and Europe.
Some key trends of External Asset Management
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.
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.
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.
Regulators are increasing pressure on private banks and EAMs due to the breadth of their product offerings from investments to capital markets and lending.
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.