12 Dec 2018
A report released by the Swiss Bankers Association (SBA) and the Boston Consulting Group (BCG) highlights the rise of investment management (management of investments for institutional and private clients) as a fundamental aspect of the Swiss financial centre.
The report reveals that revenues in the industry climbed from CHF17 billion ($17.12 billion) to CHF20 billion between 2016 and 2017. This figure represents around one-quarter of all revenues generated in the financial industry over the period.
In 2017, a total of CHF3.4 trillion in assets were managed in Switzerland, and around one-third belonged to foreign clients.
The report goes on to state that Switzerland is the world’s largest financial centre for cross-border wealth management and is also one of Europe’s leading asset management hubs.
Daniel Kessler, Managing Partner of BCG Switzerland, said in a press release that this could be partially attributed to “structured investment advisory processes” and the country’s “tradition and experience in investment management”.
The report also mentions that competition, regulation, and new technologies are causing an increase in pressure in the industry – especially on mid-market players.
The report says, “sustainable competitive advantages will in future come primarily from larger volumes or non-replicable niche products.”