Jacqueline Hess is CEO of Vontobel Swiss Wealth Advisors. She is a U.S.-trained lawyer, Swiss-certified tax expert and Registered Trust and Estate Practitioner with three decades of experience previously working at companies including Deloitte and PwC in Zurich and New York.
Russ Alan Prince: Tell me about Vontobel Swiss Wealth Advisors and what you do.
Jacqueline Hess: Vontobel Swiss Wealth Advisors is one of the leading Swiss-domiciled providers of wealth management investment solutions for individuals in the US, and is a wholly-owned subsidiary of Vontobel Holding AG, a global investment firm offering asset management, banking, and wealth management solutions. At Vontobel Swiss Wealth Advisors we work with high net worth and ultra-high net worth US citizens and green card holders, based either in the US or abroad, who are interested in putting a portion of their wealth in a non-US institution.
I was delighted to take over as CEO of Vontobel Swiss Wealth Advisors last year, after spending nearly three decades as an international tax advisor at Deloitte and PwC, and having worked in this capacity in both Zurich and New York. By way of background, I am a US-trained lawyer, Swiss-certified tax expert, and Registered Trust and Estate Practitioner, so I have grown my career in the space. I very much look forward to helping grow Vontobel Swiss Wealth Advisors’ presence as we expand our footprint in changing times.
Prince: Why might wealthy US investors be interested in diversifying geographically?
Hess: The number one reason is diversification. Many investors and advisors are aware of the advantages that come with holding an internationally diversified portfolio but are less familiar with the diversification of custody assets, which can help investors reduce risk and tap into new sources of global knowledge.
Investors choose to do this, particularly in Switzerland, because of several factors. Working with an investment and wealth manager with boots on the ground outside of the US can provide deeper expertise in finding attractive securities amongst international countries and companies in developed and emerging markets. This can complement investors’ existing portfolios, which often have a home country bias.
Additionally, there are some specific benefits to investing in Switzerland-domiciled institutions. The country has a strong economy with a history of low inflation, meaning the Swiss Franc has appreciated against the US dollar and euro. This makes Switzerland a popular haven in times of uncertainty and distress in the markets. This is especially relevant given the low-interest rates and high debt levels in the US that continue to weigh on the dollar.
Prince: You recently announced a deal impacting your business for US clients. What was the rationale and what will it help you accomplish in the US?
Hess: Vontobel has long been present in the US as an asset manager, and for over a decade Vontobel Swiss Wealth Advisors has been growing its business with teams in Zurich, Geneva, New York, and Miami. There is a huge opportunity to continue to grow in the US, where the wealth management industry is highly developed and growing, and we’re excited to capitalize on this deal which makes us an even bigger player in this specialization.
In December 2021, Vontobel acquired the SEC-registered UBS Swiss wealth management business serving US clients out of Switzerland, UBS Swiss Financial Advisers. This deal is expected to close later this year, and will make Vontobel, through its SEC licensed entities, the largest Swiss domiciled SEC Registered Investment Advisor for US clients seeking wealth management solutions for diversification purposes.
Through the arrangement, UBS Wealth Management clients will continue to work with their trusted SFA financial advisor both now and after this company becomes a part of Vontobel. For those clients looking for this niche service, we will be able to provide this as we bring together the best of what Switzerland has to offer to help serve this market even better going forward.
Prince: What should advisors consider if they have clients interested in this?
Hess: Working with a cross-border partner can give advisors a competitive edge by expanding the products and services they offer. To note, international custodian banks also allow clients to keep foreign listed securities, as well as receive dividend and interest payments in the security’s original currency. This allows for reinvestment in that currency without the need to convert more dollars. Additionally, it’s beneficial to work with a global counterpart that is registered with the SEC and is aware of the tax implications for investors with assets in multiple domiciles.
Ultimately, advisors will know what is best for their clients. For those clients who are internationally minded, and seeking diversification outside of the US, a cross-border partner could provide the comprehensive and safe portfolio management they are looking for, especially in uncertain times.
Russ Alan Prince is the executive director of Private Wealth magazine and one of the leading authorities in the private wealth industry. He consults with family offices, the wealthy, fast-tracking entrepreneurs, and select professionals. Connect with him on LinkedIn.com.
