1. Newsroom
  2. Swiss equities back on the radar
Insight 26.04.2024

Swiss equities back on the radar

Swiss equities back on the radar

Following a relatively lacklustre performance in 2023 and the Swiss National Bank’s recent interest rate cut, is now the time to revisit the Swiss equity opportunity set? In this Investment Rendez-Vous podcast, Eleanor Taylor Jolidon, co-head of UBP’s Swiss and Global Equity team, walks us through Swiss business models, current valuations and industries of particular interest.

Listen and subscribe to our podcasts on these platforms:
spotify.png  apple-podcast.png  Google-podcast.png

In 2023, the Swiss equity market faced a rare occurrence of underperformance compared with global equities, largely attributed to the robust performance of US equities, and in particular the “Magnificent 7”. Nevertheless, the underlying business case for Swiss companies remains strong, and in light of the Swiss National Bank’s recent interest rate cut, now could be the opportune moment to refocus attention on Swiss equities.

First, the underperformance needs to be contextualised against the global equity landscape. In 2023, while global equities saw zero earnings growth, Swiss equities demonstrated positive earnings growth, achieving a 14% performance in the same currencies. This performance highlights Swiss equities’ resilience and potential.

Additionally, the 2023 appreciation of the Swiss franc reiterated to Swiss companies the impact currency has, and thus the continuous need for strategic adjustments to their operations.

Last, Swiss equities command premium valuations akin to US equities, justified by strong earnings visibility and value creation. In 2024, and in particular following the recent rate cut, Swiss equities are trading at a discount to their US counterparts, offering compelling investment alternatives.

Ultimately, when these factors are combined, Swiss equities present opportunities for investors seeking value and diversification within global portfolios.

More about our expertise

Eleanor Taylor Jolidon
Co-Head of Swiss and Global Equity
View her Linkedin profile

Robert Wibberley Robert Wibberley
Corporate & Investment communications Manager

Global equities

Invest in companies with superior and sustainable value creation.

Further reading

Insight 21.05.2024

Embracing regenerative agriculture for sustainable growth

UBP’s impact team believes in the pivotal role regenerative agriculture has to play in addressing environmental challenges and fostering long-term prosperity. This theme can provide fertile ground for investors looking at impact investing.

Insight 08.05.2024

UBP House View - May 2024

In light of the extended duration of high interest rates, we’re employing a carry strategy, ramping up our allocation to high-yield bonds.

Insight 12.04.2024

UBP House View - April 2024

The unexpected interest rate cut by the Swiss National Bank marks the beginning of a new cycle of global easing, paving the way for new investment opportunities in the broader market. This has bolstered the Bank’s confidence in the Swiss and UK markets, which have been lagging behind the US indices. In addition, we have locked in gains on gold, which was the top performer in March.