An Independent Asset Manager (IAM) is a stand-alone company which is independent of private banks, that provides services varying from tax consultation, cash management, trading, estate planning and inheritance management.

 

Some IAMs focus on specific areas or investments, while others may also focus on specific types of clients.

 

IAM is able to provide objective and personalized advice based on clients’ individual goals, expectations and risk appetite in return for a transparent fee. IAM are generally compensated based on a fixed percentage of management fee, and it is in their direct self-interest to be aligned with their clients’ interest.

 

Independent asset managers do not hold client’s assets, which give clients the flexibility to choose their preferred private bank and ensure upmost security of the assets.

 

In Singapore, IAMs are required to hold a license for fund management issued by the Monetary Authority of Singapore and are regulated strictly to protect investors.

Range of Services: An independent asset manager can offer several types of service. Other than the core activities of asset management such as building an investment portfolio consisting of equities, fixed-income securities and forex, you may also be able to get access to direct investment opportunities and alternative investments. Many IAMs also offer and can engage additional services such as family office services, trusts specialists, fund solutions and capital markets if you require. When choosing an IAM, you should ensure that you select one that has expertise in the areas that are of interest to you.

 

Investment Strategy and Approach: IAMs should be transparent with regards to their recommended investment strategy and conduct meticulous risk assessment. If you do not fully understand a specific investment approach or product, ask the IAM to clarify it. A good IAM would be willing to patiently answer all your queries.

 

Fees: Independent Asset Managers (IAMs) should be upfront and honest when discussing about their fees. The business models used by different IAMs vary widely, with some generating revenue through a retrocession model, while others use management fees or performance fees. Comparing the cost of the various IAMs services will help you understand the going rates

 

Size: While a large independent asset management firms that has assets under management of several billion dollars will have access to a wider range of products and investment options, you may do equally well, or even better with a small firm. This is because you are more likely to receive personalized services that is aligned to your risk profile and needs.

Assets are held by private banks under client’s name.

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Clients has access to the account via digital private banking (if available) and will continue to receive transaction advice and statement from the private banks.

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Clients can always contact the bank to  check any irregularities regarding the account.

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To operate as a IAM in Singapore, the IAM has to have the relevant licenses and is subjected to the respective regulators.