Thursday, February 18, 2016

Taking on risk that could otherwise be diversified away

Since the United States is the world's largest national economy, it is understandable that US investors think that it is fine to hold all of their assets within US borders. The home country bias is understandable, but it isn't optimal. Owning an American-only portfolio can lead to suboptimal risk-adjusted returns, according to best practices in portfolio management which reduces the volatility of your investment portfolio by adding international diversification to your overall wealth strategy.
In the long term, a well-diversified, global portfolio can help avoid unnecessary risks.

Jurisdictional diversification is key

Holding some emerging market mutual funds at your local bank, even in other currencies, is not true international diversification. Going to another jurisdiction outside of the United States, to other non-American financial institutions, holding other foreign investments and other currencies is the real thing. Hiring a wealth manager with international experience and a global outlook and a different perspective than your local investment adviser will lead you to true international diversification.
Don't tie your future financial well-being to just one country, one market, one currency and one perspective.
US financial professionals for the most part, understandably focus on the American market, American financial institutions and US dollar investments.  However, to achieve greater resiliency for your overall portfolio through international diversification, a global-oriented wealth manager will target different investments than your domestic adviser. Holding a portion of your assets in a bank outside of the American banking system provides institutional risk diversification and greater flexibility. Currency diversification provides a hedge against a falling US dollar. The prudent investor shouldn't walk around blindfolded but should prepare for bumps which may arise along their home-markets roads.
It is simply prudent to have some assets outside of the American system.

Where to go? Grüezi!

Switzerland has adopted a white money strategy putting the old myths of secret numbered accounts and hiding funds from the tax man behind. Despite turbulences, Switzerland remains the global leader for private wealth management with a world share of 25%, of which 51% is from investors abroad.
 Switzerland: The global leader
The highest level of economic and political stability, high-quality services and extensive expertise and experience is Switzerland's claim to fame for long-term success as the leading center for private wealth management. Especially during times of increasing volatility, the world's wealthy turn to Switzerland as a safe haven for their assets.

The Swiss traditions of honesty, reliability, continuity and a high regard for privacy are qualities appreciated by investors around the world.
Switzerland: Perhaps the safest home to your assets

Get started and get it right

A Swiss wealth manager registered as an Investment Adviser with the Securities and Exchange Commission in the United States, is focused on providing US tax-compliant, unrestricted wealth management services to Americans domiciled in the United States. Giving advice, telephone calls, correspondence and personal meetings with clients or promotional activities for potential clients is allowed. Reporting requirements are also clear so you can get it right, right from the beginning.
American clients welcome!
You can establish a relationship with a Swiss SEC-registered wealth manager and develop an internationally-diversified portfolio held with a Swiss bank that welcomes American clients without leaving home. Your Swiss wealth manager will walk you through the steps. Nevertheless, a trip to Switzerland to meet your wealth manager and to discuss your needs and goals in person is highly recommended.

Swiss SEC-registered wealth managers range from larger, bank-associated firms to smaller and more personal independent wealth managers. Minimum amounts of investment range between USD 50,000 and USD 30mn with everything in between.

They are also happy to collabroate with American financial professionals in co-counseling their clients in developing an internationally-diversified portfolio to complement the American portfolio already in place.
There's not an easier way to find a suitable Swiss wealth manager.

Do your homework

Finding a suitable Swiss SEC-registered wealth manager is easy. The new Swiss platform Where Americans are Welcome at lists them all, in an easy-to-access manner, individually, alphabetically and regionally. You can browse through the listings, read up on their SEC registrations and ADV Part 2 brochures with information on company size, assets under management, minimum amounts of investment, strategies, fees and so forth. Some provide particularly client-friendly access.

You can easily do your homework in the comfort of your home and narrow down a few (perhaps with the help of your local adviser) that you would like to get in contact with for an initial consultation. They are not more than a phone call or click away. And don't forget to mention that you accessed them through the Where Americans are Welcome platform!

For further information or if you have any questions please contact:
Anne Liebgott, CEO at +41 79 767 07 58

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