Independent asset management: what is it?
You may have heard of independent asset management . Below you can read what this term means exactly, why you should or should not choose this and what you should pay attention to.
Definition of independent asset management
There are different definitions of independent asset management but in a nutshell it comes down to an organization that is not forced to make certain investments. Many asset managers, such as banks, have their own indexes that may or may not be of good quality. The quality of such a fund is difficult to check, especially if it is a relatively new fund. An independent asset manager does not use these indexes or funds . They only use the funds and indexes that they believe in. This also gives you as a client more freedom and certainty.
What you should pay attention to with independent asset management
Choose an independent asset manager to make sure that you are not prescribed funds or indexes because the organization itself benefits from this. The choice of funds and indexes by the company has only one goal: to keep you satisfied. Often these asset managers have also managed to make good agreements with the banks they work with. As a result, you pay lower purchase and sales costs.
How do you guarantee independent asset management?
Not all asset managers are clear about whether they are independent. The following points can help you investigate the independence of the manager:
- Does the manager offer its own products or is everything external?
- What kind of own products do they sell? How is the quality?
- Why do they offer their own product?
Don’t be alarmed when a manager offers their own products. Many managers are very successful with their own funds or indexes. However, it is important to do research on the success and goals of the product before you choose it.