Swiss assets tend to act as a store of value over time. This enticing characteristic makes them desirable to provide some security in uncertain times and as a long-term investment. Especially in today’s world, where a single tweet can have a huge impact on people’s wealth, diversification with assets denominated in Swiss francs can help to smooth out portfolio returns.

The rock-solid home currency and a market-friendly and highly competitive environment enable the nation’s companies to stay highly efficient. In fact, Swiss equities have outperformed all other major equity markets over the period from 1970 to 2018 in terms of return on investment, when adjusted for the ever-strengthening Swiss franc.

From a valuation perspective, Swiss equities are also attractive. Based on the price-to-earnings ratio, valuations are back at historical averages and the dividend yields are close to a record high. Earnings growth has started to pick up and we see more upside than downside potential, with consensus earnings-per-share growth expectations for Swiss equities ahead of those for Europe for 2019 (11% versus 8%).

Our Capital Protection Note with participation on Nestle, Novartis and Zurich Insurance Group enables you to stay secure while capturing upside potential.