As 2025 draws to a close, it is clear that this has been a year marked by paradoxes.
It has been a year of opportunities and threats. In fields as diverse as life sciences, climate change, new technologies, and artificial intelligence, major innovations have emerged, all representing significant investment opportunities.
Uncertainty has characterised 2025. Geopolitical tensions, armed conflicts, tariff announcements, fiscal and monetary policy have all posed challenges. Once synonymous with opportunity, globalisation is now revealing its weaknesses. Yesterday’s safe havens have become today’s sources of risk.
At Lombard Odier, we aim to find balance through movement. If we have learned one key principle in our 229 years of existence, it is this: stability is not static. It is constantly created. By supporting our clients and rethinking the world around us, we remain true to our primary mission: helping clients preserve and grow their wealth over the long term, across market cycles.
This letter provides you with our outlook for 2026 and a summary of the latest developments in our service offering.
Instability and yet solid market returns defined 2025. Policy uncertainty, geopolitics, and public debt concerns have reshaped the landscape, yet markets have remained resilient. Many uncertainties will persist into 2026. The global economy should continue expanding in 2026, albeit slowly, as trade adjusts to US import tariffs.
In the US, monetary policy and corporate investment will remain supportive. The Federal Reserve will likely pause its rate cuts through much of the first half of 2026 before easing conditions later in the year. However, policy uncertainties and tariffs will continue to weigh on growth, and the labour market will remain pivotal to US and global economic prospects.
The euro area should maintain current growth levels next year, supported by steadier business confidence, improved government-led investments, lower interest rates, and fewer trade uncertainties. Public finances will remain in focus in developed economies, though higher savings rates among corporates and households should reduce imminent debt-crisis risks.
In Switzerland, a recent US trade deal has improved the country’s outlook, and we have raised our 2026 growth forecast to 1.2%. The Swiss National Bank should keep policy rates at zero, with negative rates reserved as a last resort.
China’s shift towards greater self-sufficiency and technological leadership will continue. Emerging economies’ prospects have also improved, with fewer structural imbalances and strengthened foreign reserves, institutions, and corporates.
Geopolitical instabilities, including US–China rivalry, conflicts, and tariffs, will persist, yet markets have largely looked past them to focus on fundamentals. Investors will monitor any political interference in Fed policy and the US midterms, which could shift legislative power.
Despite volatility, markets delivered a second year of strong performance in 2025, with equities and gold setting new records. As we move into 2026, we are carefully aligning our portfolio exposures to unlock opportunities in a shifting global landscape. We overweight global equities, expressed primarily via emerging market stocks where valuations and earnings growth are attractive. In fixed income, we favour emerging market bonds in hard currency, which combine attractive yields with resilient fundamentals. The US dollar should weaken through 2026 as the Fed eases policy while most other major central banks have ended their rate-cutting cycles. With lower real US interest rates and strong central bank and investor demand, gold should remain supported in 2026.
A meaningful slowdown, perhaps triggered by a delayed tariff impact or weakening US labour market, would challenge our stance. Conversely, AI adoption could drive productivity gains, boosting growth. Stronger growth would mean a more positive outlook for equities, limit bond yield declines, and support the US dollar. Overall, if the world economy continues to navigate policy uncertainty successfully, growth and market momentum are likely to persist. We remain invested and vigilant.
As a dedicated investment firm, we believe long-term portfolio success depends on a clear vision, strong convictions and attractive investment solutions. Our house view represents the clearest articulation of our investment views at any given time and guides our asset allocation and positioning across the cycle.
Publications setting out our house view are always available on our digital My LO platform, and can also be sent to you by email. Simply ask your banker.
Investment performance and the ability to achieve one’s financial objectives over the long term primarily depend on a clearly defined strategic asset allocation. To help our clients define such an allocation, we have developed a proprietary approach called ‘Your Wealth Outlook’. Supported by an iterative and intuitive approach to IT, this methodology allows us to simulate different scenarios and select the asset allocation best suited to your needs.
The best of our house view is reflected in our discretionary multi-asset mandates and tax-efficient asset allocation funds. Once again, we are pleased to report sound performance. Since our new strategic allocations were launched on 1 January 2024 our Lombard Odier asset allocation funds have regularly featured at the top of the league tables.
In 2025, we expanded our multi-asset offering by launching several strategies tailored to the needs of specific clients. In the Swiss market, where interest rates remain low, we initiated two new mandates (Moderate and Balanced Payout) that provide a tax-efficient way of increasing returns. We also successfully started the LPP Equity strategy, strengthening our pension fund management offering.
Our PrivilEdge range of investment strategies seeks to offer clients preferential access to best-in-class external managers. In 2025, we expanded our offering and appointed a new global equities manager. Assets were up 48% this year, a clear sign of the trust our clients place in this platform.
We are delighted to announce that over the last three years, 83% of our PrivilEdge funds have ranked in the top two quartiles in their categories.
The challenges associated with the climate transition and sustainable development are substantial. Today, that transition is no longer driven by governments alone. Increasingly, it is propelled by economic incentives and private capital. Low costs and productivity gains are encouraging more companies to voluntarily seek to accelerate their transition and shrink their carbon footprint.
In our view, sustainability represents an attractive investment opportunity. Our role is to identify the companies most likely to emerge as winners from this transition by transforming their business models or introducing new technological solutions. We have designed a specialist mandate for clients keen to align their portfolios with the principles of the transition, which delivered solid performance in 2025.
In times of uncertainty and volatility, we seek to broaden our sources of outperformance beyond traditional asset classes by using alternative strategies to enhance the resilience of our portfolios. In 2025, we expanded our hedge fund offering by launching the Lombard Odier Hedge Funds Feeder.
Private assets offer advantages in terms of both portfolio diversification and potential outperformance. Over the past 17 years, we have developed solid expertise in this field, thanks to dedicated specialists and a distinctive offering focussed mainly on opportunities in intermediary markets that are hard to access.
In 2025, we reorganised and strengthened the team and are currently working on new launches for 2026. Being illiquid by nature, private assets are not suitable for all investors and require in-depth understanding of how this asset class works. If you are interested and they are appropriate for your personal situation, we can help you construct a bespoke, diversified portfolio that meets your objectives.
Gold benefitted from positive fundamentals in 2025: the dollar fell, US interest rates fell, and many central banks around the world sought to diversify their reserves. For clients looking to build additional exposure to this asset class, we offer a wide range of financial instruments and customised solutions for physical holdings in our vaults.
As private bankers, our ambition is to help you protect and grow your assets over the long term for the benefit of future generations. Our expertise in wealth and succession planning enables us to align the structuring of your assets with your long-term objectives in a way that is fully personalised.
In 2025, we strengthened our educational offering aimed at new generations. Over the year, we arranged four meetings (in Geneva, Madrid, London, and Singapore), enabling numerous NextGen representatives to meet, exchange views, and build a sense of community. We hosted two masterclasses to familiarise them with the world of wealth management.
Many countries – including France, Belgium, Italy, and the United Kingdom – introduced tax changes this year. We remain at your disposal to discuss these changes in light of your personal circumstances and to support you in managing the tax implications linked to your investments.
Our experience in this area means that many families call on us to help them design and implement sustainable governance systems, ensuring assets are passed on harmoniously from one generation to the next.
Our My LO digital solution provides a full and secure overview of your portfolio at any time, including performance, market movements, and our latest research – all accessible from your smartphone, tablet, or desktop. This secure communication channel is playing an increasing role in client dialogue and represents a natural digital extension of our service offering, with many new and innovative functionalities: electronic signatures, payment confirmations, online payments, and more.
If you do not yet have access to My LO, please contact your banker, who will assist you in setting it up.
We monitor regulatory changes affecting the financial sector very closely. We would like to remind you that relevant regulatory documentation is always available on a dedicated page on our website: www.lombardodier.com/legal-information. Any changes affecting you will be sent separately.
We have always applied a philosophy of sound prudence to the management of both our activities and our balance sheet. The financial stability of our Group was once again recognised by the Fitch rating agency, which confirmed our AA- rating with a stable outlook – the highest possible rating for a group of our size.
As at 30 June 2025, total client assets amounted to CHF 323 billion. Our capital ratio of 34% makes Lombard Odier one of the best capitalised banking groups in Europe. Our balance sheet is liquid and conservatively invested.
To mark its 20th anniversary, the Fondation Lombard Odier launched an ambitious new programme of international initiatives combining climate protection with tangible benefits for society. The programme will involve setting up new partnerships with organisations such as the World Meteorological Organization (WMO), the Zoological Society of London (ZSL), and Giving to Amplify Earth Action Awards (GAEA), with the aim of advancing innovation and climate data use, and strengthening protections for biodiversity and areas threatened by climate change.
Our philanthropic advisory activities continue to grow. Since 2008, Fondation Philanthropia – an umbrella foundation involved in our clients’ philanthropic projects – has helped our clients bring their projects to life through experienced professional guidance.
Credit : Giulio Ghirardi
This autumn, we were thrilled to welcome clients to our new headquarters on the shores of Lake Geneva – a moment of great pride for us. By bringing all our teams together under one roof, we can offer clients seamless access to the full breadth of our expertise.
This milestone marks an important chapter in our history, reaffirming both our confidence in the future and our deep roots in Geneva and Switzerland. Honouring our heritage, we have designed a building that reflects our legacy while creating a distinctive and welcoming experience for our clients.
We look forward to welcoming you.
We warmly thank you for your trust and support over the past year, and we send you, your families, and your loved ones our best wishes for a happy, successful, and healthy 2026.
Frédéric Rochat, Managing Partner
Denis Pittet, Managing Partner
Xavier Bonna, Managing Partner
share.