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.
There are many reasons why investors may choose to use an EAM. Some of the most common reasons include:
Here are five stats about EAMs that will blow your mind:
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.
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 |
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 |
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 |
Performance Measure | Average Performance |
---|---|
Return on investment (ROI) | 7% per year |
Sharpe ratio | 0.8 |
Sortino ratio | 1.0 |
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.
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