Introduction

In the complex world of wealth management, high-net-worth individuals often seek personalized services that align with their unique financial goals. While private banks have traditionally been the go-to option for many, an increasing number of investors are turning to external asset managers for a more tailored and flexible approach. This article explores the key advantages of working with an external asset manager compared to maintaining advisory relationships with private banks. We will delve into how this partnership can offer consolidated account management, personalized service, cost efficiencies, and a genuinely open investment architecture.

1. Consolidation of Accounts Across Multiple Banks

One of the significant benefits of engaging an external asset manager is the ability to consolidate accounts from different banks under a single management umbrella. This consolidation simplifies your financial landscape by providing:

• Unified Reporting: Receive comprehensive reports that give a holistic view of your investments across various institutions.
• Streamlined Decision-Making: Make informed decisions quickly without juggling multiple points of contact and differing advice.
• Efficient Portfolio Management: Allow for strategic asset allocation and risk management across all your holdings.

By centralizing the oversight of your accounts, you gain clarity and control over your financial situation, making it easier to achieve your long-term objectives.

2. Single Point of Contact

Navigating the complexities of wealth management is considerably more straightforward when you have a dedicated professional by your side. An external asset manager serves as your single point of contact, offering:

• Personalized Service: Build a relationship with someone who understands your financial goals, risk tolerance, and personal circumstances.
• Responsive Communication: Enjoy timely responses to your inquiries and proactive updates on market developments affecting your portfolio.
• Consistency: Benefit from continuity in service, as external asset managers often have lower staff turnover compared to large institutions.

This personalized approach ensures that your financial strategy is consistently aligned with your needs, providing peace of mind and fostering trust.

3. Favorable Banking Fees

Cost efficiency is a crucial aspect of wealth management. External asset managers can negotiate more favorable banking fees on your behalf, including:

• Reduced Custody Fees: Lower costs for holding your assets with custodian banks.
• Competitive Execution Fees: Benefit from better rates on transactions, saving you money over time.
• Transparent Cost Structure: Clear and straightforward fees without hidden charges or unexpected expenses.

These savings can have a significant impact on the net performance of your portfolio, allowing more of your wealth to work for you.

4. Transparent Fee Structure

Transparency is essential when it comes to managing wealth. External asset managers typically offer a clear fee structure, which includes:

• Upfront Disclosure: Understand exactly what services you are paying for and how fees are calculated.
• Alignment of Interests: Fee models that focus on your success, such as performance-based fees.
• Avoidance of Conflicts: Independence from proprietary products reduces the potential for conflicts of interest.

A transparent fee structure builds trust and ensures that your asset manager's incentives are aligned with your financial goals.

5. Genuine Open Architecture

External asset managers pride themselves on their independence and the ability to provide a genuinely open architecture in investment offerings. This means:

• Independence from Product Pushing: Unlike many firms within larger financial groups, external asset managers are free from pressures to sell in-house products.
• Access to Best-in-Class Solutions: Ability to select the most suitable financial products from a wide range of providers globally.
• Customized Investment Strategies: Tailoring portfolios to your specific needs rather than fitting you into a one-size-fits-all model.

This freedom ensures that the strategies and products recommended are genuinely in your best interest, optimizing potential returns while managing risk.

6. A Dedicated Wealth Ambassador for the Long Term

Building a long-term relationship with a dedicated wealth ambassador offers numerous advantages:

• Deep Understanding of Your Needs: Over time, your asset manager gains an in-depth understanding of your financial aspirations and concerns.
• Proactive Adjustments: Ability to anticipate and adjust strategies in response to life changes or market shifts.
• Stability: Assurance that your wealth management is in steady hands, reducing the stress associated with financial planning.

This enduring partnership enhances the effectiveness of wealth management strategies and contributes to achieving your financial milestones.

7. A More Attractive Investment Offering

External asset managers can provide a more attractive and diverse range of investment opportunities due to their flexibility and independence:

• Innovative Products: Access to unique investment vehicles, including alternative investments and bespoke structured products.
• Global Perspective: Ability to capitalize on international markets and trends not limited by a single institution's offerings.
• Tailored Risk Management: Designing portfolios that align precisely with your risk tolerance and return expectations.

By offering a broader spectrum of investment options, external asset managers can craft strategies that are both innovative and closely aligned with your objectives.

8. Comprehensive Financing Solutions

Beyond traditional wealth management, external asset managers often specialize in securing financing solutions to meet various needs:

• Mortgages: Assistance in obtaining favorable terms for property purchases.
• Lombard Loans: Leveraging your investment portfolio to access liquidity without disrupting your investment strategy.
• Asset Financing: Facilitating loans for high-value assets such as art collections, yachts, and private jets across Europe.

These services provide flexible financing options that can be integrated seamlessly into your overall financial plan.

9. Investment Philosophy Focused on Capital Preservation

A cornerstone of external asset management is a strong emphasis on capital preservation. This investment philosophy includes:

• Protective Strategies: Utilizing investment approaches that offer downside protection and minimize losses during market volatility.
• Capital Guarantees: Incorporating instruments that provide guarantees on the principal amount invested.
• Absolute Returns: Aiming for consistent performance regardless of market conditions.

As specialists in structured products, external asset managers often have direct lines to issuers, enabling them to implement sophisticated strategies efficiently. This expertise allows for the creation of customized solutions designed to preserve and grow your wealth over the long term.

Conclusion

Choosing to work with an external asset manager offers numerous advantages over traditional advisory relationships with private banks. From consolidated account management and personalized service to cost efficiencies and access to a broader range of investment opportunities, external asset managers provide a compelling alternative for discerning investors.

Their independence ensures a genuinely open architecture, free from the constraints of product pushing, allowing for the selection of the best solutions available in the market. With a dedicated wealth ambassador by your side, you benefit from a long-term partnership focused on achieving your unique financial goals.