For investors seeking global asset diversification, political and economic stability and first-class wealth management, Switzerland is the first choice, Alex Fung of Vontobel Wealth Management Asia writes.

By Alex Fung, CEO Vontobel Wealth Management, Asia

Thanks to its geographic location, small size, and lack of natural resources, Switzerland has always been internationally orientated in its commercial and industrial development. Companies once focused only on trading commenced to lend money as well, thus establishing the country’s first banks.

As business relationships extended abroad, so too did banking transactions. Individual institutions began to work together, not only to execute cross-border payment transactions, but also to make investments abroad.

Strong Focus on Financial Privacy

Over a span of two hundred years, the Swiss gained broad knowledge of financial markets and global investment opportunities, know-how which laid the foundation of Switzerland as the largest international financial center – and therefore also of «Swiss banking».

As Swiss entrepreneurs and their foreign partners scored business successes, the need grew for advisory and other financial services. Although the country was open and multicultural, the mentality has always been characterised by a strong focus on financial privacy and the protection of property.

Protected Assets

Indeed, these Swiss traits are deeply rooted, and they remain a success factor today – in sectors such as tourism in addition to the financial sector, insofar as well-known personalities can move freely in Switzerland, and banking clients know they will be well cared for and their assets protected.

Further, the country’s stable political environment, strong currency, and the certainty deriving from the rule of law here are all greatly appreciated. For many wealthy people, such conditions are far from «givens» in their home countries.

Especially in times of uncertainty or crisis, a solid framework is very important when it comes to investing. The condition of the government’s budget, a low unemployment rate, and low levels of public debt as well as a stable currency all play a vital role in providing this solidity.

Very Competitive Swiss Companies

From an international perspective, Swiss companies are very competitive. This was underlined by the World Economic Forum (WEF) Report 2016/2017, published in September 2016, when it ranked Switzerland as the most competitive country in the world, for the eighth year in a row.

And Switzerland also retains its top position in the Global Innovation Index (GII) for the sixth consecutive year since 2010. The country particularly outranks the rest of the world in terms of knowledge creation or the political environment. All these factors find not only Asian investors convincing.

Cultivating High Quality and Expanding Knowledge

The mentality of the Swiss and their economic history have had a lasting effect on the high quality of service here, and on the country’s stock of experience.

This is especially true of the financial sector. It has developed a distinctive expertise in diversifying investments across various countries, currencies and sectors, and tailoring them to client needs.

Booking Assets Abroad in a Safe Financial Centre

At Vontobel, we consider the provision of cross-border wealth management services as one of our core competencies. In our integrated business model we combine the expertise of our three business units Asset Management, Investment Banking and Private Banking that are leveraged for creating value adding services for our clients around the globe.

Especially for wealthy Asian investors diversification is one of the most efficient and important ways to protect their assets against wide fluctuations and losses. A solid diversification – also including investments across different jurisdictions and banks – is even more strongly recommended in uncertain times.

Best Coverage

Assets that investors entrust to Vontobel Wealth Management Asia are booked in Switzerland – which allows to entirely profit from the positive conditions of the Swiss financial centre.

While at the same time the advisory services are provided by Vontobel in Hong Kong where clients can take full advantage of their personal relationship manager and the best coverage of their local needs.

 Alex Fung is the Chief Executive Officer of Vontobel Wealth Management Asia, based in Hong Kong.