Why performance gaps are so important in wealth management

Between -8% and -22% for a balanced portfolio. And even between -5% and -37% for a more aggressive portfolio with 95% equities, according to figures from consultant Zwei Wealth. The differences in performance in Swiss wealth management have reached unprecedented proportions this year. Two clients with the same investment profile can end up with a miraculous move given the circumstances or a dip that will take years to clear. As a reminder: after losing 33%, you must gain 50% to simply return to the starting point. The good news is that the declines recorded since January come after four favorable years over the last five stock market vintages. The less good news is that other asset classes such as private equity will certainly see their valuations fall in the coming quarters.