Market Insight by Colin Vidal - Insights and trends of the Swiss fund market

The rapid response from financial markets to the pandemic created many new opportunities for fund managers, investors and allocators alike.

As a Swiss representative and paying agent within a multinational banking group, we are in constant contact with a large number of funds, both alternative and traditional, looking to Swiss allocators and investors as one of the key markets to diversify their investor base. Therefore, the main question on these funds’ minds is how the past two years have shaped the Swiss investor landscape and what allocation trends have emerged. We have a rare vantage point to examine this, sitting between funds and Swiss investors. 

With its global reputation as a safe haven, Switzerland has fared relatively well during this crisis and Swiss banks attracted record amounts of new capital. In 2020 alone, Swiss banks saw net new money of CHF 94.5bn, the highest growth since 2010 in both relative and absolute terms . This comes on the heels of a previously strong year, with 2019 recording net new money of CHF 72bn. The question remains as to what fund strategies remain in favour for Swiss investors and what the growing trends are that we are witnessing.