Article published in Le Temps on 28 May 2026.
In an environment characterised by tensions surrounding the Strait of Hormuz, rising oil prices, the resurgence of inflationary fears and volatile markets, wealth management needs to go beyond financial asset allocation alone and extend to tax, wealth transfer, family governance, and life projects. For Philippe Gay, Head of the Swiss Offering at Lombard Odier, it is precisely at times like these that discipline, a long-term vision and a holistic approach to wealth management make the difference.
key takeaways.
- Stay on course despite the volatility. Sudden market lurches call for adjustments, but reactions should not be impulsive. An asset strategy has to remain anchored to the client's investment horizon and objectives
- Think in terms of net return. Tax, costs, currencies, and holding wrappers can have a significant impact on real performance. What matters is the return available following all deductions
- Manage debt at the level of overall wealth. A wise choice needs to be made between Lombard loans, mortgages, and paying down borrowings, depending on liquidity, risk, and the tax situation. Leverage is a tool, not an end in itself
- Structure assets by time horizon. Liquidity, growth, protection, and wealth transfer all serve distinct purposes. A robust allocation organises these different pools of capital, rather than setting them against one another.
When geopolitical uncertainty returns as a market risk
The conflict surrounding the Strait of Hormuz is a reminder of a reality that often gets forgotten when markets are going up: portfolio management can never be totally separated from geopolitics. A major percentage of the world's energy flows through the Strait, and any closure or prolonged disruption would have a significant effect on oil prices, expected inflation, interest rates, and risk appetite. According to Reuters1, the International Energy Agency (IEA) recently issued a warning that commercial oil stocks were falling fast due to the war with Iran and the closure of the Strait of Hormuz. Since the tensions broke out, Brent has seen sharp price fluctuations, bond markets have been nervous and several equity markets have corrected, particularly at the beginning of March, when investors started to factor in the risk of an energy price shock that could be prolonged.
But it is important to view this initial reaction separately from the underlying trend. So far some markets, especially the US, Japan, and China, have been trading at levels higher than where they were when the escalation with Iran began. This offers an important insight for private investors: a geopolitical shock can trigger a rapid correction, without necessarily undermining a long-term wealth management strategy. The challenge is not to react to every movement in the market, but to consider what these tensions really change for the client's allocation, liquidity, overall risk and wealth objectives.
After several weeks of conflict it is very tempting to let every decision be dictated by emotion: bring risk down sharply, add to defensive assets at the worst possible time or even try to profit from every tactical bounce. "At times like these, the job of a private banker is not to add agitation on top of uncertainty, but to help clients distinguish meaningful signals from market noise," comments Philippe Gay. Volatility is undoubtedly uncomfortable, but it should not become the main driver of decision-making.
Being disciplined about wealth management does not mean being inactive. Quite the opposite – it means knowing what needs to be adjusted, protected, or maintained
Being reactive is not the same as being hasty
Being disciplined about wealth management does not mean being inactive. Quite the opposite – it means knowing what needs to be adjusted, protected, or maintained. An energy crisis may change the inflation outlook, delay some interest rate cuts, depress company margins, and encourage sector rotation. Recent research has shown that market scenarios vary widely depending on how long shipping around the Strait of Hormuz is disrupted: will it return to normal quickly, or be impacted for an extended period, or will there be a major shock to energy supplies?
The right reaction is certainly not to turn a diversified portfolio into a trading floor. "You cannot manage a portfolio by buying and selling stocks three times a day," remarks Philippe Gay. The statement reflects a fundamental principle: long-term performance depends less on hyperactivity than on overall consistency. In a world saturated with information, the risk is not only missing an opportunity. It is also making hasty and contradictory decisions, increasing costs, and losing sight of long-term objectives.
Read also: Beyond the conflict, what landscape should investors expect?
A holistic management that looks at more than just the portfolio
At Lombard Odier, this conviction is reflected in an integrated approach to wealth management. It is not simply a matter of determining the allocation to equities, bonds, cash, and private assets in a portfolio. It also requires understanding what the wealth is intended to achieve, over what time horizon, within which tax framework, with what liquidity requirements, and in pursuit of which personal ambitions. Lombard Odier stresses the importance of a holistic and bespoke approach to wealth planning, taking into account each client's family circumstances, long-term objectives, life projects, and wealth structuring needs.
This approach is particularly relevant in Switzerland, where many clients have complex estates: financial assets, real estate, stakes in family companies, retirement savings, international assets, foundations, and complex family structures.
Gross performance, net performance, and real risk
In periods of stress, investors often focus on gross performance. It's easy to see why: indices are moving fast, comparisons are immediate, and underperformance quickly becomes apparent.
But effective wealth management requires a more holistic understanding. At Lombard Odier this approach is based on four dimensions taken together: gross performance, net performance after tax, the location of assets, and family wealth transfer considerations.
Gross performance is still the main driver, in other words, the ability to capture long-term structural sources of return, whether they be from profit growth, innovation, productivity, bond spreads, or private assets. The second driver is net performance after tax, i.e. tax-efficient management. An asset allocation that appears attractive on paper can lose much of its appeal if it has not been designed with tax considerations, relevant jurisdictions, expected income flows, and wealth transfer plans in mind. The real question is not simply, "What return has my portfolio generated?". It is also, and above all, "How much remains after tax, costs, and deductions, and to what extent does my wealth remain aligned with my family's objectives? ".
The third driver concerns the appropriate use of leverage and its impact on return on equity. In some situations, using a Lombard loan, a mortgage, or a combination of both can help optimise the overall structure of a portfolio. However, the level of indebtness must remain consistent with expected return objectives, the client's liquidity capacity, and the overall risk borne by the family's wealth. This consideration becomes even more important in Switzerland, given the , which may prompt some clients to revisit the balance between mortgage debt, taxation, and asset allocation.
The issue is therefore not whether to increase or reduce debt automatically, but rather to determine the most appropriate level of leverage for each client's situation. Depending on the circumstances, it might be appropriate to reduce debt in order to lower overall risk, or conversely to retain, or even increase, leverage where doing so enhances return on equity without undermining the overall balance of the wealth structure. It is precisely this consolidated understanding of gross performance, net performance after tax, location of assets, leverage and wealth transfer that makes it to move beyond a purely portfolio-based perspective and think in terms of family wealth as a whole.
From a family or generational perspective, the question is no longer simply a matter of the annual return. It becomes of continuity
Structuring wealth by time horizon, purpose, and generation
One approach to wealth management involves setting up several portfolios,each aligned with a clear life goal defined in advance, an investment horizon, and a specific level of risk, while maintaining a consolidated view of family wealth: a cash portfolio for immediate needs, a preservation portfolio to ensure certain objectives can be met, a growth portfolio to tap into long-term growth drivers and, in some cases, an allocation to less liquid holdings such as private assets or entrepreneurial ventures. This structure helps ensure that the entire strategy is not put at risk every time markets are disrupted, like the period of geopolitical and macroeconomic uncertainty we are seeing at the moment. When markets undergo a correction, this strategy makes it possible to identify the resources available, the assets to be retained and the horizons that remain unchanged.
The same logic applies to wealth transfer . From a family or generational perspective, the question is no longer simply a matter of the annual return. It becomes of continuity: how do you prepare your children or grandchildren? Should you make lifetime gifts? How do you prevent a poorly planned transfer of wealth from upsetting the family equilibrium, or jeopardising the tax situation? How do you coordinate retirement planning, succession, governance, and investment? Lombard Odier supports entrepreneurs and their families in structuring, preserving, and passing on their wealth, fully integrating considerations relating to taxation, family governance, and long-term objectives.
Read also: Why should entrepreneurs choose a private bank?
Maintaining a clear course in an unstable world
The current situation calls less for predicting the exact outcome of the conflict than for assessing the resilience of a wealth strategy. Energy prices may stay high for longer than expected, central banks may have to contend with more persistent inflation, and equity markets may alternate between rapid corrections and sharp rebounds – but the priority is still to stay on course and maintain a long-term perspective. In this type of environment, a disciplined approach rooted in diversification, asset quality, and portfolio resilience appears all the more relevant, helping to prevent every geopolitical shock from leading to short-term decisions that run counter to long-term wealth objectives.
For Philippe Gay, this is exactly the right time to get back to fundamentals: wealth is best managed when it is transparent, well-structured, and aligned with the owner's objectives. Volatility is not going away any time soon, nor are the geopolitical crises we are experiencing.
Having a consolidated view of your assets, a coherent allocation, a clear tax strategy, and a well-prepared wealth transfer plan provides a decisive advantage: the ability to make decisions with clarity and discipline rather than reacting with short-term anxiety. In wealth management, peace of mind does not come from the absence of uncertainty; it stems from preparation and foresight.
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