Family offices must consider a global view

Wealthy families in the USA and Europe have brought wealth abroad due to domestic uncertainties and market volatility abroad, but it is time for them to revise their portfolios with a global perspective.

The recent market clips have worried for long -term investors. Price waste and volatility in the assets have questioned the reliability of conventional safe ports.

After President Donald Trump's global tariff editions, the US shares suffered losses and turbulence that have not been observed since the Covid 19 pandemic or the global financial crisis in 2008-2009. The VIX – a volatility index, which is known as the “Fear Gauge” of Wall Street – only reached twice that could only be observed twice. The Hong Kong stock market has recorded its greatest decline since the Asian financial crisis in 1997. The returns of the 30-year-old Gilts in Great Britain have reached its highest level since 1998. The oil prices have been the lowest case since February 2021.

As a rule, investors flock in the US state bonds and the US dollar in such crisis-this time, political uncertainty has weakened the demand for US assets, whereby the income increases on the government bonds and the immersion of the dollar.

Mr. Trumps below Volte face With regard to “mutual” tariffs, the tariffs brought in stock markets and at the same time emphasized the volatility of the current administration. The deletion did not include China, which returned with a trade war and its own tariffs.

Both investors and consumers expect increasing global inflation and stagnating growth, for which the Federal Reserve may not be able to reduce interest rates to re -stimulate the economy.

Safe ports and stability

The concern for the US economy has led many ultraahohe net assets (UHNW)-even though diversified worldwide to shift assets abroad. Private bankers, apartment offices and asset management groups in Switzerland and the British report increased the inquiries from US citizens to transfer their assets. However, the Americans can open a Swiss bank account based on the FATCA regulations, according to which foreign banks can report to the IRS US account holder. Only SEC-registered companies in Switzerland can help customers open and manage their accounts.

In Great Britain, changes to the “non -dom” system that people who are not dominated in Great Britain mean lower taxes that the foreign income and the profits of new inhabitants in the first four years are only free of Great Britain, provided that they have not been resident in the past 10 years. After that, you have to pay taxes on global income and the profits. Moving assets in Great Britain can be a stop-lacquer measure, especially if US citizens still have to pay US tax on global income regardless of their stay.

These factors mean that many investors are looking for both local knowledge and a much more global perspective from an asset manager to transfer, protect and expand their assets. UNHW families and foundations need a look at the overall picture and access to specific specialist knowledge and tailor -made global solutions. Most need investment opportunities for institutional quality, strong returns and risk diversification in harmony with their broad and complex needs during this turbulent period.

New possibilities

The immediate concern is to protect prosperity and to escape the fear that investors would otherwise prevent new market opportunities. In the short term, the service industries could offer a safe port by remaining relatively unaffected by the introduction of US tariffs. In the medium term, companies and countries with lower relative tariffs were able to grow exports to the United States because the costs of their products for American consumers become comparatively lower.

Nevertheless, it is possible that the commercial currents will be removed from the United States in the long term with Mr. Trump's current trade policy. While the global supply chain is complex and the transformation takes time, the pandemic showed how a crisis can stimulate faster than usual changes.

A reduced role for the United States in the global trade and an intensive US China trade war-it could enable other countries to play a larger role in some industries, as Europe has in developing AI. When China loses the United States as the main export destination and opens up new trade routes, the costs for consumers in Great Britain and Europe will reduce inflation. This can create new, exciting investment opportunities that experts can identify local knowledge.

Navigate uncertainty

The latest fluctuations in Mr. Trump's guidelines is the average tariff rate in America the highest now that it has been for almost a century – from around 3 percent to more than 20 percent. Regardless of what the US administration will decide next, the global commercial landscape has changed significantly.

In this climate of uncertainty, it is of crucial importance for global families to see the larger picture and access to tailor -made investment strategies that offer simplicity and clarity.

Robert Weeber, President, International Wealth Management, Alti Tiedemann Global