The steady proliferation of independent asset managers and multi-family offices throughout Asia has given rise to a number of commonly used business models. Here are the three most widely used models.
For most firms, investment management either on a discretionary or advisory basis remains the core of what they do.
In recognising that clients may require other services, some IAMs/MFOs have built a network of business partners in complementary areas such as tax planning, insurance, legal and trust advisory. When necessary, they will be able to connect their clients with the right expertise.
Some firms also provide wealth planning advice, helping families set up family offices and governance structures.
Some independent wealth managers also have an asset management arm, where they run in-house strategies. However, most continue to operate on an open architecture model with low allocation to their own funds.
While the two other setups are more commonplace in Asia, we have also seen platforms that offer a different proposition. They provide operational and administrative support to individual bankers and representatives of wealthy families.