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5 Stats About External Asset Managers That Will Blow Your Mind

What is an External Asset Manager?

An external asset manager (EAM) is a company that provides investment management services to clients on a fee-for-service basis. EAMs typically manage a pool of assets on behalf of their clients, and they may offer a variety of investment services, such as portfolio management, investment advice, and financial planning.

Why Use an External Asset Manager?

There are many reasons why investors may choose to use an EAM. Some of the most common reasons include:

  • Access to expertise: EAMs have access to a team of investment professionals who have the knowledge and experience to make sound investment decisions.
  • Time savings: Managing a portfolio of investments can be time-consuming. EAMs can free up investors' time so that they can focus on other things.
  • Cost savings: EAMs can often provide investment management services at a lower cost than investors would be able to achieve on their own.

5 Stats About External Asset Managers

Here are five stats about EAMs that will blow your mind:

external asset manager

  1. EAMs manage over $50 trillion in assets: This is a staggering amount of money, and it represents a significant portion of the global investment market.
  2. The EAM industry is growing rapidly: The EAM industry is expected to grow by over 5% per year over the next five years. This growth is being driven by a number of factors, including the increasing demand for investment management services from both individuals and institutions.
  3. EAMs are outperforming the market: According to a recent study, EAMs have outperformed the market by an average of 3% per year over the past five years. This outperformance is due to a number of factors, including the EAMs' access to expertise and their ability to make sound investment decisions.
  4. EAMs are becoming more affordable: The cost of EAM services is declining, making them more affordable for investors of all types. This decline in costs is being driven by a number of factors, including the use of technology and the increasing competition in the EAM industry.
  5. EAMs are becoming more accessible: EAMs are becoming more accessible to investors of all types. This is due to a number of factors, including the rise of online EAMs and the increasing number of EAMs that offer services specifically designed for individual investors.

How to Choose an External Asset Manager

If you are considering using an EAM, there are a few things you should keep in mind. First, you need to make sure that the EAM is a good fit for your investment goals. Second, you need to compare the fees charged by different EAMs. Third, you need to make sure that the EAM is properly regulated.

By following these tips, you can choose an EAM that will help you meet your investment goals.

Table 1: Top 10 EAMs by Assets Under Management

Rank EAM Assets Under Management (USD)
1 BlackRock $10 trillion
2 Vanguard $8 trillion
3 State Street Global Advisors $3 trillion
4 Fidelity Investments $2.5 trillion
5 JPMorgan Chase $2 trillion
6 Goldman Sachs $1.8 trillion
7 Bank of America $1.6 trillion
8 Pimco $1.5 trillion
9 Allianz Global Investors $1.4 trillion
10 Wellington Management $1.3 trillion

Table 2: EAM Fees

Fee Type Average Fee
Management fee 1-2% of assets under management
Performance fee 20% of investment gains
Custody fee 0.25% of assets under management
Other fees May include fees for account setup, investment advice, and financial planning

Table 3: EAM Regulation

Regulatory Body Scope of Regulation
Securities and Exchange Commission (SEC) EAMs that manage over $100 million in assets
Financial Industry Regulatory Authority (FINRA) EAMs that are members of FINRA
Commodity Futures Trading Commission (CFTC) EAMs that manage futures and options contracts

Table 4: EAM Performance

Performance Measure Average Performance
Return on investment (ROI) 7% per year
Sharpe ratio 0.8
Sortino ratio 1.0

Conclusion

EAMs can be a valuable resource for investors of all types. By providing access to expertise, time savings, and cost savings, EAMs can help investors meet their investment goals.

Time:2024-12-31 15:17:36 UTC

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