In countries such as Germany and Norway in recent years, affluent individuals have been relocating assets – or even themselves – to Switzerland to get away from wealth and dividend taxes. But is such a drastic step the only way to navigate an uncertain time for investors?

It’s a decision that draws mixed reactions, but from a purely economic perspective it can help to maintain a higher capital for investment.
 

However, not every investor is in a position or wants to uproot their life and don the proverbial Alpine hat. For them, the key lies in adeptly managing their wealth in a way that ensures the best possible return for the level of risk they are comfortable to undertake.
 

In a world fraught with uncertainty and economic instability, learning to manage wealth efficiently yet securely is of paramount importance.
 

One of our experts at Infront, Massimo Ferrari, Head of WealthTech, took some time to share his thoughts on alternative approaches investors are taking to manage wealth in uncertain times.

Have a complete overview

According to Massimo, there are four key factors to consider when managing wealth.
 

"One of the keys to success in wealth management lies in having a comprehensive overview of your investments and the financial situation," says Ferrari.
 

In times of uncertainty and large fluctuations, it is important to have control over where your assets are allocated, the returns in different asset classes and the distribution of risk in the total invested capital. During turbulent times, many choose to allocate a larger portion of their capital to more secure investments.
 

Having up-to-date and immediate information about your investments provides you with the necessary information to feel comfortable with your short-term investment strategy and helps you make informed decisions.

Monitor trends and diversify capital

Another important factor in maximizing investments is to monitor trends and diversify investments across different assets.

"Talking to our clients, we notice that their portfolios have become quite diversified over the past decade. Wealth managers have been seeking alternatives to low-yielding fixed-income products and the underwhelming performance of certain equity sectors."
 

As a result, many wealth managers have started investing in debt collection, private debt and start-up financing on one side, and cryptocurrencies and digital assets on the other side.

Despite rising interest rates, these new asset classes are expected to remain popular in the future.

Embrace technology

The digital age we are in not only introduces new asset classes but also new technologies that can be used to optimise portfolios.
 

"Alternative investments that were once associated with high management costs or were difficult to access, such as private equity, have become more readily available through investment platforms, along with the recently introduced management, analysis, and reporting capabilities of portfolio management systems."
 

Advanced consolidation engines also provide a comprehensive and highly accurate overview of one's assets. Financial data and content providers enable intraday analysis of one's assets.
 

Times of significant changes require more information before making decisions.
 

To navigate the financial world full of changes and surprises, it is crucial to have the right information, sufficient information and most importantly, timely information to make the right decisions.
 

"The financial world is dominated by technological advancements, and in the near future only financial institutions with state-of-the-art electronic data interfaces and next-generation information systems will be able to offer excellent services," concludes Massimo.

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