Example of Globalisation, Cross Border Risk and Potential of Equities

Some people think they need to diversify across countries by buying equities in different markets (usually at a higher cost than their local market due to exchange rates spread, higher transaction and custody fees).

It is however possible to create an extremely well diversified „global“ equity risk portfolio while investing in the companies listed in a very open economy such as Switzerland.

 

Example Barry Callebaut:

Barry Callebaut, a SIX (Swiss Stock Exchange) listed company with a long tradition is owner of Stollwerck, which opened a plant with 1000 employees in Hungary (Szekeshehervar) in 1995, a plant in Poland (Poznan) in 1995 [DM 44m], a plant in Russia (Prokrov) in 1996 [DM 51m]. That’s just a few examples of where Stollwerck is active.

This short example shows that investing in the Switzerland listed Barry Callebaut gives you risk exposure to Hungary, Poland, Russia (and many other countries).

As an independent wealth manager it is my job (I believe) to show investors and potential investors that they can invest globally while investing in companies with roots or substantial control based in Switzerland. And at the same time minimising transaction costs and custody fees so that the investors wealth can grow thanks to a solid base that doesn’t drain performance.

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