SWISS SEC-REGISTERED INVESTMENT ADVISOR
Interview with René Marty, CEO
Why are US investors an attractive group of clients?
The American economy is a large and very attractive microcosm of entrepreneurs, many of which want to extend their business and banking relations internationally either by choice or necessity.
As reported in the Spectrum Group Market Insights Report from 2018:
The number of millionaires, those with a net worth between USD 1 million and USD 5 million, climbed to 9.98 million, an increase of almost 600,000 compared with 2016.
The Ultra High Net Worth market, in which net worth is between USD 5 million and USD 25 million, grew to 1,348,000 households, an increase of 84,000 from 2016.
There are now 172,000 households with a net worth exceeding USD 25 million. That reflects an increase of 16,000 households from the 2016 total, an increase of more than 10 percent from the 2016 total of 156,000.
This makes the U.S. a highly interesting but also challenging market for independent investment advisers registered and regulated by the SEC.
Swiss banks and Swiss wealth managers are still attractive for foreigners as Switzerland is one of the most sustainable, resilient, and stable economies in the world with a strong currency and a trustworthy and reliable legal system. Switzerland stands out as an example of solidity and safety. Furthermore, Swiss banks have a cachet because of the "culture of confidentiality and discretion" that is an ingrained part of our society.
Recent data provided by the Swiss Bankers Association shows that Switzerland remains the leading player in the global cross-border private banking market with a market share of over 27%. The volume of assets held by individuals with Swiss banks has seen growth over the past few years reaching over CHF 7,000 billion. About 48% of the assets come from abroad.
How do Swiss financial advisors attract international, wealthy clients, particularly from the US?
An investment adviser has to be able to serve U.S. clients in a fully compliant way. Reyl Overseas started serving U.S. clients as an SEC-registered adviser in 2011. We are offering international investment solutions that include global portfolio diversification by leveraging our expertise in international markets, especially Asia and Europe, as well as providing direct access to such markets in local currency. U.S. investors and their U.S. financial advisors tend to be home-biased and while there are products focusing on emerging markets and Europe, they are most likely to be U.S. dollar denominated investments. Opening a foreign currency account with an American firm is often still impossible.
Physically holding some assets outside of the domestic financial system gives access to funds abroad. Geographic, as well as currency diversification are key to success with U.S. clients. The world is changing and growth and power are globally shifting, volatility is on the rise. Having all eggs in one basket within the same jurisdiction is becoming increasingly risky.
What is key for a boutique Swiss wealth manager when developing a US clientele?
Reyl Overseas, an independent affiliate of the REYL Group, responds to the needs of U.S. nationals and taxpayers worldwide for international and geographical investment diversification. As a Swiss company, we are ideally positioned to offer our U.S. clients the full extent of REYL’s international wealth management expertise.
REYL differentiates itself from other bigger players not only because it has strong entrepreneurial DNA but also because it is a family-owned business. The group's expertise and defined presence throughout Europe and Asia is another a key advantage. From one generation to the next, the bank has experienced organic growth, vertically focused on entrepreneurial values and a strong Anglo-Saxon management spirit. It matches perfectly with the U.S. mentality and the U.S. way of doing business.
Reyl Overseas Ltd growth in the USA
Reyl Overseas, Ltd. aims to grow organically through its existing client network and with the support of its business partners as well as through new contacts. It has a unique business model, in line with the hands-on personalized approach characterized by the group, it offers U.S. clients multidimensional value-added services that go beyond wealth management. It also benefits from the groups offering such as Corporate Advisory & Structuring Services (merger & acquisition, capital & debt raising, capital restructuring & optimization, corporate debt structuring), Entrepreneur & Family Office Services (succession & estate planning, family governance, cost optimization, concierge services) and Asset Custodian Offering dedicated to institutional clients (IT, operations, legal advice, management & research).
With its capacity to incorporate the entrepreneurial dimension of its clients, and its extensive experience in merchant banking, REYL Group ensures a full range of services supplementing wealth management activities. Adding to that, a strong Anglo-Saxon culture and in-depth knowledge of the business in Switzerland, Europe, Asia and the Middle East, REYL is positioned to provide a comprehensive and attractive offering in traditional Private Banking fashion.
Swiss private banks and banking in Switzerland can still add a lot of value for tax compliant U.S. clients: quality management, service excellence, a culture of discretion, trust, and entrepreneurial spirit.
About REYL Overseas Ltd
Founded in October 2011, REYL Overseas Ltd. is a company under Swiss law regulated by the Swiss Financial Market Supervisory Authority (FINMA) for all aspects relating to the Swiss Money Laundering Act, and isregistered as an Investment Adviser with the Securities and Exchange Commission (SEC).