With traditional ways of banking disappearing over the years, one of the sectors to thrive would be the external asset management industry. But, wait a minute – it’s been said that it isn’t for the faint hearted. Here’s what it takes to rise above the competition.
You Need To Be Resilient
The High Net Worth Individuals (HNWI) and wealthy investors have long trusted banks to manage their wealth. After all, banks were seen as all-encompassing, providing in-house products and solutions under one roof.
Sharing some of the challenges that EAMs face, Lester Tay, CEO of Rockstead Capital said: “Clients are so accustomed to the private bank structure; there’s a peace of mind that the money is custodized with the bank. Not only that, most clients do not understand how EAMs work nor the concept of limited power of attorney (LPOA)”.
Since EAMs function independently of banks, Lester highlighted that EAMs need to have “the tenacity and resilience to instill confidence in clients without a bank’s backing” to stay ahead of the competition.
You Need To Be Entrepreneurial At Heart
While it might not be your own business, being able to think-out-of-the-box is a huge value for EAMs. A great EAM needs to be able to “constantly re-innovate investment solutions,” suggested Lester.
Additionally, you need to be confident in the solutions that you offer, yet grounded and open enough to new solutions and technology.
You Need To Know The Market – Really Well
As a bespoke asset management firm, Lester shared that it is very important for Rockstead to always put its clients’ interests first. Lending its success to its ability to source for private equity deals, it’s also about offering competitive in-house products and asset allocation/diversification. Of course, that means putting time, sweat and effort into knowing the market really well.
To hear more on how to be a great EAM, listen to what Lester Tay, CEO of Rockstead Capital has to say:
