Given the continued economic volatility in the U.S. caused by persistent inflation and high-interest rates, many investors are looking for ways to diversify their assets using a cross-border wealth management strategy.
Switzerland is the global frontrunner in managing cross-border wealth, followed by Singapore and Hong Kong. With foreign private assets totaling approximately CHF 2.4 trillion, Switzerland commands an impressive 22% of the worldwide market.
In our newest article, we’ll look at three ways you can utilize Swiss cross-border wealth management for your financial advantage:
- Global Diversification
- Investing with Swiss Francs
- Global Impact Investing
Global Diversification for Assets Using Swiss Cross-Border Wealth Management
Incorporating global diversification into your investment strategy can contribute to a more resilient and better-performing portfolio. For example, five potential benefits associated with a Swiss-managed, global investment strategy include:
- By allocating your assets across different regions and asset classes, you can reduce the impact of country-by-country economic downturns and excessive stock market volatility. Your alternative is to invest in the best-performing companies in multiple countries.
- A far riskier strategy is to invest a disproportionate amount of money in one country, and that country experiences a steep market decline. This could be a result of economic decline due to inflation, recession, rising interest rates, or some other economic event. Does this sound familiar if you are a US investor?
- Global diversification enables you to invest in faster-growing companies, markets, and various industries that may not be available in the US. That’s because all of the best companies are not headquartered in the US. In fact, they are scattered all over the world, and this trend is growing.
Investing with Swiss Francs
Investing using Swiss francs can be another strategic move that reduces risk and improves potential returns. Following are a few strategies you can use to leverage the stability of Swiss francs when you invest outside the US:
- Swiss francs can provide an important strategy for diversifying your invested assets outside US dollars. This is even more true if the dollar weakens compared to the Swiss franc – one the most historically stable currencies in the world.
- Investing in Swiss francs is a way to benefit from a country’s stable economic environment, which can be particularly appealing during uncertain times.
- Switzerland has a long history of keeping inflation low. By investing in Swiss francs, you can preserve the purchasing power of your assets when other countries are experiencing periods of higher inflation.
- The Swiss franc is often considered a safe-haven currency. In times of global economic turbulence or geopolitical instability, investors tend to flock to the Swiss franc due to its long history of stability and a country that practices neutrality.
- Switzerland offers an appealing range of investment opportunities. You can access Swiss financial markets, invest in Swiss companies, or explore Swiss real estate options, all while using Swiss francs to complete transactions.
Global Impact Investing
Another worldwide phenomenon gaining in popularity is the addition of global impact investing. Global impact investing was developed not only to generate financial returns but also to produce measurable, positive social or environmental outcomes. Unlike more traditional investment alternatives, this strategy goes beyond the production of financial rates of return.
It’s an investment process that aligns the values of many affluent individuals and families with how their assets are invested for the greater good.
In a strategic sense, it is about investing in companies that reflect the beliefs of investors and are having a positive impact on the world. Examples of companies include healthcare, renewable energy, water and sanitation, transportation, and sustainable agriculture companies.
It is assumed the greater the impact on the world’s quality of life, the more valuable the company can be as a long-term investment.
What sets Swiss wealth managers apart in global impact investing is their deep understanding of cross-border investment dynamics and the complexities of managing global portfolios of diversified asset classes that make an impact.
Choosing the Right Swiss Wealth Manager
LFA is a premier Swiss wealth management firm that specializes in serving US investors who are seeking a cross-border portfolio that is denominated in Swiss francs. Our specialty is providing tailored portfolios of securities that are focused on competitive returns, risk management, tax efficiency, and impact on a global basis.
Our clientele gains from our deep expertise and wide-reaching network of professional partners, including Swiss banks, global law firms, international estate planning professionals, and cross-border tax specialists.
We are financial fiduciaries, so our clients’ interests always come first. We are also committed to delivering the highest quality financial advice and global investment solutions to our clients.
We focus our efforts on delivering three critical services to you:
- Competitive financial returns
- Effective risk management
- Tax-efficient investment strategies
As a leading independent wealth management firm in Switzerland that is registered with the SEC in the US, we invite you to connect with us to learn more about our cross-border investment services.
