Investors prefer markets that they know. But this means they miss out on opportunities in emerging markets.
Nowhere is as safe as home. Investors tend to select what is most familiar to them. As a result, investment portfolios look very similar throughout the world: around two thirds are invested in the home market. In Switzerland, this focus is even more pronounced. The average Swiss investor invests 74% of his or her portfolio in Swiss securities. This approach still has risks, however, and has led to painful losses for many Swiss investors – for example, in early 2015 when the Swiss National Bank abandoned the minimum euro exchange rate.
Global geographic diversification of an equity portfolio can absorb such losses, since no geopolitical crisis or market event has the same impact everywhere in the world.
Global diversification is not the only argument for better performance. Spreading assets across asset classes is just as important. We offer analyses and strategies that can help you to align your portfolio optimally with your investor profile and manage it in a disciplined manner. Contact us now.