Systematic Risk

In our previous blog entry, and throughout many of our publications, we have explored the principles behind portfolio diversification within a global context.  As discussed in detail, it is important to focus on the portfolio as a whole and not of any asset class or position individually. 

This approach provides the best framework to manage portfolios, given idiosyncratic market risks, in order to earn measured and reciprocal returns. However, we believe it is also important to consider the systematic risks to wealth, such as currency and geo-political risk.

Offshore banking provides a number of benefits, including greater flexibility to diversify some of the systematic risks. An article on MintLife provides a good summary of some key motivations and benefits of offshore banking. Article link: https://www.mint.com/blog/trends/offshore-banking/ 
One difference of opinion however is that we would not consider banking in Belize as an appropriate measure for most of our readers.

Over the course of the year we will be providing insight through our newsletter BEARINGS and articles published to our blog, of the various motivations for offshore banking.

Two weeks ago, our CIO was interviewed by CNBC regarding the unexpected action by the SNB and the resulting volatility of the Swiss Franc (link). This is a good example of where flexibility to invest across markets and to diversify risks can play an important role in protecting wealth.

We invite you to open the discussion with us on how we can help you benefit from investment management with a global perspective that levers the opportunities and flexibility of offshore banking.

You can contact us via email at enquiries@pilotage.ch