Is Your Wealth Protected? Your Guide to Swiss Asset Management for Americans

In 2025, U.S. equities posted solid returns—the S&P 500 gained 17.9%. However, global investors saw even greater momentum elsewhere. The MSCI World ex-US surged by 31.8%, and Emerging Markets rose significantly by 34.4%. 

For the first time in over a decade, international markets outperformed the U.S.—reminding investors that opportunity isn’t confined to Wall Street.

Yet many U.S.-based portfolios remain heavily concentrated in domestic equities, bonds, and the U.S. dollar. This narrow exposure may create potential vulnerabilities. Economic downturns, changes in fiscal policy, and currency fluctuations can ripple across a U.S.-only portfolio with few natural offsets.

Global Diversification in 2026: A Broader Investment Strategy

Global diversification expands your portfolio across different countries, sectors, and currencies, which can:

• Dampen overall volatility
• Avoid overexposure to any one economy
• Tap into growth across international markets
• Potentially serves as a potential hedge against dollar weakness or domestic instability

Unlike U.S. markets, many international assets have historically exhibited lower correlation—meaning they don’t move in tandem. When domestic markets falter, these non-correlated assets may remain stable or even rise, helping support total portfolio performance.

As the global economy evolves, shifting trade alliances and fragmenting markets make international diversification an increasingly discussed consideration. Some asset managers expect capital to continue migrating into global holdings, as a portfolio anchored in a single jurisdiction may lack the adaptability needed for future market dynamics.

Investors seeking resilience and opportunity should consider whether their current allocations reflect a changing world—or remain anchored to a single economic system. For many, it may be time to rethink geographic concentration and explore the role of Swiss investment as part of a globally diversified strategy.

Switzerland’s reputation as a financial safe haven is not built on a single advantage, but on a rare combination of characteristics that have remained consistent for generations. In a global environment marked by political tension, rising debt, and policy uncertainty, this consistency is often cited by investors as a differentiating factor.

Currency strength is one pillar of Switzerland’s appeal. While all currencies experience cycles, the Swiss franc has historically tended to hold its value during periods of global stress. Its role as a defensive-oriented currency has at times helped investors offset volatility elsewhere, particularly during times when confidence in major economies weakens. This reputation is grounded in disciplined monetary policy rather than short-term intervention.

Equally important is Switzerland’s long-standing national stability. Switzerland has maintained political neutrality for more than two centuries, largely avoiding the conflicts and ideological swings that often disrupt financial systems elsewhere. Its fiscal culture emphasizes restraint, consensus, and predictability. Policy changes tend to be incremental, not reactionary, which can help reduce the risk of sudden legal or tax upheaval that can impact capital planning.

A third factor is global investment access. Swiss wealth managers like LFA operate within an international financial ecosystem rather than a single-market framework. This perspective allows investors to participate in opportunities across regions, sectors, and asset types that may receive less attention from U.S.-centric firms. It also encourages diversification beyond domestic cycles without relying solely on packaged or derivative-based products.

Taken together, these elements create an environment where capital can be positioned with greater perceived stability. Switzerland’s appeal is not about avoiding risk altogether—it’s about operating within a system designed to approach risk management conservatively. For investors seeking a steadier footing in an increasingly complex world, that distinction continues to matter.

Currency exposure plays a more significant role in real wealth erosion than many realize. Purchasing power is not only affected by market returns—it is also shaped by how currencies behave during periods of inflation, fiscal stress, and policy change. This is where the Swiss franc (CHF) becomes relevant for consideration.

Unlike currencies tied closely to expansionary fiscal policies, the Swiss franc has been managed with a long-standing emphasis on price stability. The Swiss National Bank’s mandate prioritizes inflation control and monetary discipline rather than short-term stimulus. Over time, this approach has contributed to the franc maintaining relatively stronger purchasing power compared with some other major currencies, particularly those exposed to persistent deficit spending.

For globally active investors, holding assets denominated in CHF may help counterbalance domestic currency risk. When inflation rises faster than asset growth, wealth can lose real value even if nominal balances appear stable. Exposure to a currency with lower historical inflation characteristics can help mitigate that effect, particularly during periods when confidence in major currencies declines.

There are several practical considerations when thinking about how to invest in Swiss francs. Some investors gain exposure through currency-linked instruments, while others hold franc-denominated assets within diversified portfolios. The goal is not speculation, but balance—seeking to reduce reliance on a single monetary system.

Investing in Swiss francs is often most effective when integrated thoughtfully alongside other assets, rather than treated as a standalone position. Used this way, CHF exposure may complement broader allocation decisions and help support purchasing power across economic cycles.

Many American investors are realizing their investments are typically limited to U.S.-listed equities, bonds, and a handful of international funds with domestic wrappers. This home-country bias can result in overlooked opportunities, under-diversification, and heightened exposure to U.S.-centric risks.

Global economies don’t move in lockstep—and neither should your portfolio. Markets in Europe, Asia, and Latin America often experience different growth cycles, interest rate trends, and sector leadership. While U.S. investors focus heavily on tech and consumer sectors, other regions may offer access to less-followed or differently valued infrastructure, green energy, or commodity-based investments.

Direct international exposure through a Swiss-based platform can provide access to:

• Equity and bond markets beyond U.S. borders
• Niche sectors that may be less accessible in U.S. ETFs
• Foreign-denominated investments that can help reduce currency concentration
• Real assets such as gold, held in secure Swiss vaults
• Global funds managed outside of U.S. regulatory constraints

To evaluate whether your current strategy is too narrow, ask yourself:

• Are all my assets priced in U.S. dollars?
• Do I have access to non-U.S. fund managers or only domestic ones?
• Am I missing global sectors with potential long-term growth drivers?
• How will my portfolio react if the U.S. economy slows while others thrive?

Expanding your investment lens internationally isn’t just about growth—it’s about balance, access, and long-term sustainability. A global allocation model may present opportunities you haven’t yet considered.

Swiss banking has long attracted global investors for its perceived security, neutrality, and discretion. However, U.S. citizens must meet specific reporting and regulatory requirements to use Swiss accounts legally and effectively.

Thanks to international tax agreements—most notably FATCA (Foreign Account Tax Compliance Act)—Swiss banks are no longer “secret” in the traditional sense. But that doesn’t mean they’re off-limits. With the right structure and guidance, U.S. citizens may hold Swiss accounts legally and compliantly while seeking the benefits of cross-border diversification.

Key Points for U.S. Citizens Using Swiss Banking Services

Swiss wealth managers who serve U.S. clients typically provide FATCA-compliant accounts and file the required IRS disclosures. These accounts can provide:

• Legal access to foreign securities and currencies
• Direct exposure to Swiss and global markets
• Account management by SEC-registered advisors
• Integration with U.S.-based estate and tax planning strategies

Steps for Navigating Swiss Banking Regulations

• Work with a dual-registered advisor: Choose a firm like LFA that is registered with both the SEC and FINMA.
• Use a FATCA-compliant institution: The Swiss bank must report your account to the IRS annually.
• File the required U.S. tax forms: This includes FBAR (FinCEN 114) and IRS Form 8938 for foreign assets.
• Report foreign income: Earnings from Swiss investments must be included on your U.S. tax return.
• Understand exit taxes: If you renounce citizenship or move abroad, be aware of the potential tax implications.

Working with experienced Swiss wealth managers can help simplify this process while maintaining compliance. Legal access is not just possible—it’s available through properly structured, compliant relationships.

Diversifying beyond the U.S. may help protect purchasing power, add currency strength, and provide access to a wider global opportunity set, especially with support from experienced investment professionals who understand the regulatory needs of American investors.

LFA is part of the group headed by LFG Holding, which holds one of Switzerland’s larger portfolios of independent asset managers, with approximately  50 professionals, 700 clients, and over USD 2.5 bn. of assets under management.

Our team is dedicated to helping clients like you explore global diversification in a way that is strategic, compliant, and personalized. We offer both discretionary and non-discretionary investment management, customizing portfolios through a detailed investment policy statement that reflects your goals, risk tolerance, and tax considerations. 

Whether you’re interested in traditional investments, alternative assets like private equity or gold, or long-term wealth planning for your family, we’re ready to meet with you to understand your objectives and discuss a strategy that aligns with your situation.

Our international clients—including U.S. citizens living in or outside the country—benefit from our extensive experience, U.S. tax reporting support, and personalized attention from a dedicated private banker.

Interested in discussing how Swiss wealth strategies and Swiss bank accounts for U.S. citizens may support you protect and grow your wealth globally?

Contact us today to schedule an introductory conversation.

What Types of Investments Are Available Through Swiss Wealth Managers?

Swiss wealth managers provide access to a globally diversified range of investments, including international equities, fixed income, private equity, hedge funds, and alternative strategies. They also offer tailored portfolios in multiple currencies, including Swiss francs (CHF), allowing for broader diversification than many  U.S.-centric brokerages.

What Are the Tax Reporting Requirements for Americans With Swiss Accounts?

U.S. citizens must report foreign financial accounts through FBAR (FinCEN Form 114) and, when applicable, FATCA (Form 8938). Swiss banks working with American clients are FATCA-compliant and assist in meeting these obligations, helping investors remain transparent and compliant with IRS rules.

Why Should I Consider Diversifying Outside the U.S. in 2026?

Economic concentration in a single country—even one as large as the U.S.—can amplify risk. In 2026, shifting trade dynamics, currency volatility, and inflation concerns have made global diversification a more widely discussed consideration. Non-U.S. assets may respond differently to market events and can provide exposure to opportunities not available domestically.

Is It Complicated To Transfer Funds From a U.S. Brokerage to a Swiss Account?

Transferring funds is generally manageable, especially when working with a firm experienced in cross-border clients. Many Swiss institutions have established onboarding processes and can assist with currency conversion and wire instructions.

Can Swiss Bank Accounts Help Protect Against Inflation or a Weaker U.S. Dollar?

Potentially. Holding assets in Swiss francs or internationally diversified investments may help offset dollar depreciation and can play a role in managing a long-term inflation exposure related to the U.S.