External Asset Management (EAM)
The EAM industry is built on a distinct business model that contrasts with traditional private wealth management. In the standard process, a high-net-worth individual would entrust a bank's investment professionals with managing their account. However, in the EAM approach, an outside entity oversees the investments, with the bank handling the maintenance of the account.
The EAM provides a range of financial services including investment advisory, discretionary portfolio management, tax and succession planning, and guidance to the custodian bank where the client establishes their account. The client then authorizes the EAM to oversee the assets with the custodian bank under a Limited Power of Attorney (LPOA) agreement. This model establishes a three-way relationship between the client, the custodian bank, and the EAM.
The EAM provides a range of financial services including investment advisory, discretionary portfolio management, tax and succession planning, and guidance to the custodian bank where the client establishes their account. The client then authorizes the EAM to oversee the assets with the custodian bank under a Limited Power of Attorney (LPOA) agreement. This model establishes a three-way relationship between the client, the custodian bank, and the EAM.
EAMs make money through retrocession, management, and performance fees. Retrocession fees are commissions from banks for recommending them to clients. These are the most straightforward to earn. Custodian banks may also offer rebates on service fees based on client trading volume. Some regulators mandate retrocession disclosure to clients, while others allow EAMs to choose whether to disclose.
Several EAMs collect management fees for managing client portfolios, imposed on an annual basis under a discretionary mandate. Another source of revenue is the performance fee, determined by the client according to a pre-established benchmark with the EAM. An EAM has the option to implement all three revenue models simultaneously.
EAMs provide personalized and customized services tailored to each client's unique financial goals and objectives. By taking the time to truly understand their clients' needs and preferences, EAMs are able to offer tailored investment strategies that align with clients' risk tolerance and time horizon. This personalized approach not only helps clients achieve their financial goals.
EAM's expertise in creating personalized solutions to meet client needs is unparalleled. As independent advisors, EAMs can serve as prime brokers and provide open architecture to clients. This allows them to work with multiple custodian banks, granting access to various capital markets, investment products, and solutions from partner banks. The advantage lies in EAM's ability to deliver tailored investment management solutions to the client`s needs.
Several EAMs collect management fees for managing client portfolios, imposed on an annual basis under a discretionary mandate. Another source of revenue is the performance fee, determined by the client according to a pre-established benchmark with the EAM. An EAM has the option to implement all three revenue models simultaneously.
EAMs provide personalized and customized services tailored to each client's unique financial goals and objectives. By taking the time to truly understand their clients' needs and preferences, EAMs are able to offer tailored investment strategies that align with clients' risk tolerance and time horizon. This personalized approach not only helps clients achieve their financial goals.
EAM's expertise in creating personalized solutions to meet client needs is unparalleled. As independent advisors, EAMs can serve as prime brokers and provide open architecture to clients. This allows them to work with multiple custodian banks, granting access to various capital markets, investment products, and solutions from partner banks. The advantage lies in EAM's ability to deliver tailored investment management solutions to the client`s needs.
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Our Tokyo colocation facilities are a major peering and Internet exchange point for the Asia-Pacific region with direct access to key Equinix Internet Exchange partners, such as BBIX, Japan Internet Exchange and Japan Network Access Point. We also offer connections to Japan’s two largest financial exchanges: TFX and TOCOM. Equinix currently operates 4 data centers in Tokyo, including the new TY5 IBX. Opened in March 2016, TY5 forms a campus with TY3, home of one of the most famous financial ecosystems in Tokyo, strengthening Equinix’s financial services ecosystem in North Asia.
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