How does external asset management function

1. How does external asset management function? What is it? External asset management manages your financial assets and investments without taking them into custody. Instead, a custodian will be required to provide custody of your wealth; this usually will be a bank with the appropriate licence. You will thus have a contractual relationship with the external asset manager and the bank. A custodian, such as a bank with the required permissions, will be subject to regulatory supervision. You will keep control over your assets since you are the only authorized party to perform cash withdrawals. Instead of managing these assets yourself, the TEAM will manage your portfolio in line with the defined investment strategy. This will include orders to buy and sell financial instruments but not withdrawals. Who is the external asset manager? Private businesses known as External Asset Managers (EAMs) offer specialized asset management services to their clients. Often, they are referred to as independent asset managers since they are usually not affiliated with banks. They are subject to regulatory supervision and must act in the best interests of their clients. Their core activity is the execution of an investment strategy at a portfolio level. Overall, managing external assets can be a difficult and complex undertaking. It calls for the appropriate partner with industry knowledge and awareness of the client's long-term aims or ambitions.