Why invest abroad, why invest in Switzerland

In the heart of Europe, Switzerland is the world's capital of private banking. A title that reflects a world of investment opportunities supported by guarantees as iron-clad as having an AAA rating (the best credit quality rating) as a country, which reflects unparalleled economic strength, as only thirteen countries around the world have this rating, according to the internationally recognized Moody's, S&P and Fitch ratings.  But perhaps this is only the gateway to a series of reasons that should not be overlooked when we think about diversifying our portfolio by incorporating exposure to different economies to gain protection, stability and greater security.

The first thing is the security of your finances. As mentioned above, only thirteen countries around the world have this distinguished rating: Germany, Australia, Canada, Switzerland, Denmark, Liechtenstein, Luxembourg, the Netherlands, Norway, Sweden, Singapore, the United States States and New Zealand. It can be inferred that investing in an economic context like this means investing with world-leading security. 

This economic security, along with other legislative reasons, has made Switzerland the world capital of private banking - it is the headquarters of more than 250 banks from across the world - and major insurers. So much so, the financial sector represented 8.9% of Swiss GDP in 2022, according to the State Secretariat for International Finance (SIF). 

Switzerland is not just about banking and finance. Europe's most prominent companies in the scientific and health research sector are listed on the country's stock exchange. Switzerland is also a world leader in competitiveness and innovation. In fact, at a time when the financial paradigm is changing with the arrival of blockchain, Switzerland has opted to promote this technology as part of the new global economy.

If we look at the data only, Switzerland is the home of more than 40 international organizations, including the UN and the Red Cross; it has over 270 years of history in promoting the global financial sector; it brings together 25% of private assets abroad worldwide with more than $4 trillion managed by banks; it is also home to over 350 fintech companies, and as if that weren't enough, it has developed what is known as Crypto Valley, a Swiss blockchain ecosystem leading the world with international connections, which has served to make it the headquarters of the top crypto banks on the planet.

The reasons for investing in Switzerland are strong and attractive, so you should analyze how you can invest and what benefits you might find. For example, BBVA Private Banking in Switzerland has deployed all the tools needed to make it easier and more convenient to choose Switzerland. To do this, a team of more than 120 professionals provide advice, discretionary portfolio management, estate planning, financing and, in addition, open the door to investment and custody in digital assets as securely as possible.

As for portfolio management, the fundamental approach is capital preservation and protection. Following this, the focus shifts to the long term to take advantage of the best opportunities for the future, although without losing sight of these great opportunities that markets sometimes offer in the short term. To do this, BBVA Switzerland seeks management independence and opinions differing from the market consensus to have an even broader vision.

In addition, estate planning focuses on different areas ranging from the needs of the next generations, to minimizing risks and global taxation when selecting investment vehicles to apply these tax effects and possible changes of residence.

As the main attraction, and thanks to Swiss regulations, investing here provides exposure to this new economy and new finances gathered in digital assets. To do this, the bank offers one of the most secure ways to invest in these new finances, allowing you to trade 24 hours a day, providing custody services and ensuring two levels of portfolio - hot and warm. And all of this under the supervision of the regulatory authority in Switzerland, FINMA.

In addition, the SMI index, which groups together the 20 main Swiss market securities listed on the Zurich Stock Exchange, is very remarkable. In the last 3 years, it has accumulated a rise of more than 26%, despite the poor performance of the market in 2022. The index includes names as popular as Nestlé, Novartis and Roche.

The strong Swiss economy, its financial soundness and political stability, taxation and the legal framework favor opportunities for foreign investment. Switzerland makes things easier.