Independent Asset Management: Key Participants

The key participants in an independent asset management relationship are the customer, the wealth manager, the custody bank and specialized financial services providers like investment funds.

The most important individual relationships in asset management are as follows:

Relationship between clients and asset managers

The independent asset manager receives a limited asset management mandate from the client, and must have the client’s approval before transferring client assets.

Relationship between independent asset managers and custodian banks

After consulting with the client, the independent asset manager decides which assets will be placed in custody accounts. Ideally, an independent asset manager should be independent in the true sense of the word. Decisions should not be influenced by retrocession fees offered by banks or investment funds.

Relationship between custodian banks and asset management clients

A customary contractual relationship exists between the client and the custodian bank. However, the client gives the asset manager full authority to manage assets held in custodian banks.

Relationship between independent wealth managers and investment funds

Normally, an asset manager can either invest the client’s assets in an investment fund directly, or invest indirectly via a custodian bank. In many cases, independent asset managers operate at least one fund themselves. Here to, the deciding factor is whether or not the asset manager acts in the client’s best interest when investing through investment, with no regard for retrocession fees.

More on this topic:
Swiss private banking
Online broker comparison
Comparison of independent asset managers in Switzerland

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