No one likes paying more taxes than necessary, especially because their investment strategy isn’t personalised to his tax situation. Technology can now help wealth managers avoid this pitfall. By embracing tax-efficient investment personalisation solutions, Swiss wealth professionals can truly serve clients and maintain a competitive edge.

The Swiss wealth management landscape has long been a beacon of stability and sophistication, attracting Ultra-high-net-worth (UHNW) and high-net-worth (HNW) individuals from across the globe. However, the evolving global tax environment demands a shift in perspective. To maintain a competitive edge and provide truly comprehensive investment management services, Swiss institutions must prioritise personalisation with tax-efficient investing strategies.

The cost of tax inefficiency
Every year, several billion Swiss francs are overpaid due to lack of tax efficiency. These overpayments represent a significant erosion of client wealth and a missed opportunity for wealth managers to demonstrate their value proposition. Failing to address the individual tax circumstances of clients can lead to suboptimal returns, strained client relationships, and reputational damage for financial institutions.

Therefore, traditional portfolio management models relying on generic approaches, regardless of clients tax domicile, are no longer sufficient in today's tax-transparent environment. While some banks have taken steps to address tax efficiency for clients in select jurisdictions, a comprehensive solution for managing the complexities of international taxation is required. 

However, personalising investment strategies at scale, considering the unique tax residency and circumstances of each client, presents a significant operational challenge. This challenge can be overcome by leveraging technology capable of seamlessly processing each investment portfolio according to these unique criteria.

Tax-efficient investment personalisation solutions
Sophisticated portfolio personalisation solutions, such as Croesus Central, provides insights into tax trends, identify potential tax liabilities, and forecast tax implications across multiple jurisdictions. 

By incorporating tax data from Indigita, Croesus Central allows wealth managers to optimise portfolios while considering the tax implications for clients in over 80 countries. This data-driven approach allows wealth managers to make informed decisions, optimise outcomes for clients, and streamline portfolio management processes.

To begin with, wealth managers can use this technology to assess existing portfolios to identify tax-inefficient positions and potential tax liabilities in the client tax residence.

With a clear understanding of the tax implications, wealth professionals can develop a tailored strategy for each client. This personalised investment strategy minimises tax burdens while adhering to client risk tolerance profiles and investment objectives.

With technology, wealth managers can implement their fiscal strategies to the portfolio of their choice, according to their client’s country of residence and preference. This means the solution automatically adjusts client portfolio for tax efficiency, considering factors like share classes, withholding taxes, and regional tax variations.

Empowering international wealth managers with Croesus Central
Imagine an international wealth management firm with clients all over the world. An asset that might be highly recommended for your Swiss client could be completely unsuitable for your Greek client due to differing tax treatments. Croesus Central helps portfolio managers to identify these nuances and optimise portfolio implementations accordingly.

Beyond simply flagging tax-inefficient investments, Croesus Central provides actionable solutions. Consider the complexities of various share classes for funds.

Choosing between accumulating, distributing, or tax-transparent share classes (like those registered in the UK) can significantly impact a client's tax burden. Selecting the wrong class could result in clients paying excessive taxes on gains. Croesus Central helps wealth managers navigate these choices and ensure they’re making the most tax-efficient decisions for each client.

Even when a perfectly tax-efficient asset isn't available, Croesus Central goes a step further. It can dynamically reallocate portfolio weight within asset classes to maintain the desired risk profile while optimising for tax efficiency. This ensures that the pursuit of tax efficiency doesn't inadvertently expose clients to undue tax-related risk.

Beyond its powerful tax-efficient features, the platform streamlines many other aspects of portfolio management. This empowers banks to:

• Boost efficiency
  Automate time-consuming tasks such as portfolio rebalancing, compliance monitoring, and reporting. This frees up bankers and portfolio managers to focus on client relationships and strategic decision-making.

• Enhance collaboration
  Improve teamwork and communication through centralised data and shared workflows. This fosters a collaborative environment where wealth professionals can seamlessly work together to serve clients.

• Gain deeper insights
  Access powerful reporting tools to gain a comprehensive understanding of portfolio performance, risk exposures, and tax implications.

• Cost control
  Reduce operational costs associated with manual processes and legacy systems. Croesus Central's cloud-based platform offers a cost-effective solution that scales with your business needs.

Embrace the future of international wealth management
In an increasingly interconnected world, Swiss wealth managers must adapt to the complexities of international taxation. By embracing technological solutions like Croesus Central, institutions can optimise client portfolios, enhance service offerings, and reinforce their position as leaders in the global wealth management landscape.