Yield Management Inc. – The Future Of Investment Management

84

The financial industry has seen a seismic shift over last few years. Increased competition and modern technology are driving down margins and clients are demanding more. Successful investment companies are those placing a greater importance on building strong relationships and providing better service. Industry reviews show that fee based accounts are growing in popularity, although transaction based accounts still dominate. The other major trend emerging is of advisors working with less clients and building family-wide relationships. This stems from two major demographic trends: a massive wealth transfer currently underway to Baby Boomers, and the inherent challenge in penetrating the Millennial and Generation X markets. Yield Management Inc. incorporates the traits of the ideal investment management company. As an independent investment management company based in Tokyo, Japan, it has gained a solid reputation for providing exemplary service and financial guidance to an expanding global clientele.

The Value Of Independence

Historically, most investment companies were privately owned stockbrokers. Over the last few decades, firms have consolidated and been taken over by banks and insurance companies. Many investment advisors are pressured to gather assets and lock them in managed accounts and mutual funds. This is profitable for the companies, especially in an environment with thinning margins, but rarely in the best interest of the clients. Furthermore, institutional departments at times get stuck taking large equity positions into their inventory, which are then pushed onto unsuspecting retail investors with a glossy buy rating from the research department. Savvy investors have started gravitating to smaller and midsized privately owned investment companies, where they have confidence that the advice they receive is in their best interests and free from conflicts of interest. Yield Management Inc. clients benefit from priority trade execution and objective research recommendations. Investment Advisors have the freedom and confidence to guide their clients from a full complement of investments – stocks, bonds, IPOs and other special situations. The industry has come full circle, and the successful investment companies of the future will be independently owned with a greater emphasis on relationships and service.

Yield Management Inc  Tokyo, Japan – Land Of The Rising Sun

Japan has always held a prominent position in international capital markets. The Yen, along with the U.S. Dollar, Swiss Franc and gold, is respected as a safe place to park money during periods of volatility. Tokyo is home to the second largest stock exchange. The country is economically stable and democratic. It’s also highly regulated, deterring those looking to perpetrate a scam. For the same reasons that the smart money has always invested in Japan, individual investors are increasingly discovering it to be a good home for their investable assets. While having a reputation for being steady, stable and traditional, its people are remarkably forward thinking. A recent review shows Japanese investors being behind up to 50% of bitcoin trading, one of whom is rumored to be the mysterious creator of the cryptocurrency. Furthermore, the Abe government is shaking off the stagnant growth of past decades, reporting successive increases over the last several quarters. A recent push for drastically reduced corporate tax rates will further boost the economy, and help to solidify its position as the dominant regional financial market. The healthy balance between stability and growth makes this a world class center for private investment management. Japan is a safe place to live, a safe place to visit, and is gaining a reputation as a safe place to hold one’s wealth.

International & Offshore Investing

Once the domain of the rich and shady, offshore investing has come into the mainstream. There are many benefits to holding assets outside one’s country of residence and Yield Management Inc. helps their global clientele to navigate a wide range of options. Expatriates and Europeans concerned about the future of the EU are growing sectors of this community, and while Japan is not enthusiastic about offering citizenship, Tokyo is a welcoming home to a diverse group of international residents. The primary benefits of investing offshore are: risk management, tax efficiency, fiscal privacy and higher returns. The new accounts department did a review recently which showed that the biggest factor in people’s decision to move funds offshore was no longer fiscal privacy or tax efficiency, but risk management. Especially in Western Europe, people no longer assume that was is familiar and local is necessarily safest. They are learning that effective diversification is the best insurance money can buy.

Avoiding a Scam

The downside of living in our fast paced global village is that in a world of opportunity, there is the occasional scam. Yield Management Inc. spares no expense in protecting its clients and has instituted several layers of protection. For obvious reasons it was reticent to reveal details of its internal protocols and cyber security, but it was open about the human elements employed. The head of compliance explained that while clients look at a higher level of service as a type of pampering, it is actually an important element of security. For example, all instructions received electronically are now confirmed with a quick phone call. Another important aspect of security is scheduling regular portfolio reviews. Advisors with good client communication can detect anomalies, and at times head people off at the pass before they can make a bad investment decision. Taking time with new clients during the investment planning process is also helpful, in that it educates clients about investing and teaches them what is realistic. People have to use common sense and take personal responsibility in their day to day lives, but Yield Management understands that the future of the investment business involves an increasing amount of protection and security.

 

To Sum it all Up…

Yield Management Inc. is a case study in the future of private wealth management. Independently owned, client-focused and service oriented, the company understands that high returns and low fees are no longer enough to compete. In the midst of rapidly evolving technology, it’s the human element that is once again cutting edge.

1 (20%) 1 vote

Any Ideas / Suggestions About This Topic