Asset management is not a product you buy. It is a long-term strategy tailored to your particular circumstances. In an era of passive investing, digitization, and globalization, you have access to possibilities that previous generations could scarcely have imagined. But this abundance of choice creates its own risks—the risk of poor decisions, suboptimal structures, excessive costs, misallocated capital.
The key to success is not knowing every investment product or tracking every market trend. The key is defining your goals clearly, understanding your own situation and constraints, and selecting the right partners to help you build and maintain a strategy suited to your needs.
Switzerland, Liechtenstein, and Luxembourg remain Europe’s centers of excellence in asset management, and not without reason. Stability, experience, sophistication, an understanding of the international client’s particular circumstances—all of this has real value. But it requires proper preparation, structuring, and support.
Passive Versus Active Management: Does This War Still Make Sense?
For the past decade, the financial world has been consumed by a debate: passive or active management? The statistics seem merciless—only thirty-four per cent of actively managed equity funds outperform their benchmarks. BlackRock, with $12.5 trillion in assets under management, and Vanguard, with $10.1 trillion, have built empires on index funds and ETFs. Fees have fallen dramatically: the average cost of a European passive fund is just 0.13 per cent annually, compared with 0.42 per cent for active funds.
Does this mean active management is dying? Absolutely not. It means that mediocre active management is dying.
For a client with several million euros to invest, the real question is not “passive or active?” but rather “Where passive, where active, and where alternative?” It is a matter of proper allocation and understanding where the value added by active management is genuine—and where you are paying for an illusion.
In efficient markets—American large caps, European blue chips, developed equity markets—passive strategies dominate for good reason. When Bloomberg analyzes every move Apple’s board makes in real time, and algorithms trade milliseconds after press releases, the chances of consistently beating the index are minimal. Here, the low fee of an index fund is the sensible choice.
In inefficient markets—small caps, emerging markets, corporate credit, multi-asset strategies—space for active management still exists. Not every Polish or Hungarian company has fifty analysts tracking its every move. Not every corporate bond is properly priced by the market. Here, a good active manager can generate alpha—but you need access to genuinely skilled managers, not average ones.
In alternative investments—private equity, private credit, infrastructure, real estate, hedge funds—there is no passive option at all. This is, by definition, the world of active management, opportunity selection, due diligence, and specialized expertise. And it is here, with proper manager selection, that the most compelling returns can be generated.
The Geography of Asset Management: Why Location Still Matters
In the digital age, you can theoretically manage your portfolio from anywhere in the world. In practice, geography still matters enormously—not because of access to information, which is global, but because of regulatory frameworks, tax efficiency, access to products, and legal infrastructure.
The United States manages fifty-four to sixty-one per cent of global assets. New York is the epicenter, with $35 to $40 trillion in assets under management. BlackRock, Vanguard, Fidelity, State Street—American giants dominate globally. But is an American asset manager the right choice for a European client with wealth in euros, tax residency in Poland, and business assets in Central Europe?
Probably not. FATCA and American tax requirements for nonresidents, complications related to reporting foreign structures, currency-conversion costs, time-zone differences—all of this makes American solutions a less-than-optimal choice for most European clients.
Europe manages 29.7 per cent of global assets but is characterized by far greater fragmentation than the United States. London remains a center, with $15 to $20 trillion in assets under management, despite Brexit. But the true gems of European asset management lie elsewhere.
Switzerland and Liechtenstein: Why Neutrality Has Value
Switzerland is not just private banking—it is also a powerhouse in asset management. Swiss asset managers specialize in multi-asset strategies, currency-risk management, and tax optimization for an international clientele. UBS Asset Management, Credit Suisse (now part of UBS), Pictet Asset Management, Lombard Odier Investment Managers—these are institutions with decades of experience managing cross-border wealth.
What distinguishes Swiss asset management? Above all, an understanding of the international client’s specific situation. Swiss managers know how to structure portfolios for clients with tax residency in one country, business assets in a second, and life plans encompassing a third. They understand the complex implications of double-taxation treaties. They have experience managing multi-currency portfolios where optimization means not only maximizing returns but also minimizing exchange-rate risk relative to the client’s base currency.
Swiss political and monetary stability is another asset that cannot be overstated. The Swiss franc as one of the world’s strongest currencies, a history of political neutrality, predictable regulatory frameworks—all of this creates an environment where long-term planning makes sense.
Liechtenstein is a smaller market but no less sophisticated. The principality specializes in asset management for ultra-high-net-worth individuals and royal families. LGT (Liechtenstein Global Trust)—a bank owned by the princely family—exemplifies an institution that combines the stability of a family structure with professional asset management. Minimum deposits are high (often starting at five million euros), but in return you receive a level of discretion, customization, and long-term thinking that is difficult to find elsewhere.
Liechtenstein also offers unique legal structures—the Anstalt, the Stiftung—that can be integral to an asset-management strategy, particularly in the context of succession planning and asset protection.
Luxembourg and Dublin: Investment-Product Factories
Luxembourg is the world’s second-largest fund-registration center, with 7.9 per cent of global fund assets. Dublin controls 6.5 per cent. Why do these small countries matter so enormously?
Because this is where UCITS funds are registered—the European gold standard for investment products. UCITS is not merely a regulatory acronym; it is a passport allowing a fund to be sold throughout the European Union without separate registration in each country. It means stringent investor-protection standards, diversification and liquidity requirements. It means the trust that clients and distributors place in UCITS products.
For you as an investor, this means that most of the sophisticated investment strategies you want to access—whether a global-macro hedge fund, an emerging-markets equity fund, or a high-yield credit strategy—will probably be registered in Luxembourg or Dublin.
Luxembourg also specializes in alternative products—AIFs (Alternative Investment Funds) subject to AIFMD. Dublin is the European capital of ETFs; most European ETFs from BlackRock, Vanguard, or State Street are domiciled there.
The tax neutrality of both jurisdictions means you do not pay double taxation at the fund level—you settle only in your country of tax residence. This may sound technical, but in practice it means hundreds of basis points of difference in effective returns over the years.
Regulation: MiFID II, UCITS, AIFMD—Alphabet Soup or Real Protection?
European asset-management regulations form a complicated labyrinth of acronyms and directives. But that labyrinth has a purpose—and it is on your side as a client.
MiFID II (the Markets in Financial Instruments Directive) is the foundational regulation introducing the “best execution” requirement: your asset manager must demonstrate that transactions are executed on the best available terms. Product-governance rules mean that investment products must be designed with a specific target group in mind, not as universal solutions sold to everyone. Expanded reporting obligations give regulators insight into what is actually happening in markets.
For you, this means that the relationship with an asset manager in Europe is significantly more transparent and regulated than in many other parts of the world. You receive detailed information about costs, risks, and conflicts of interest. It is not perfect—no regulation is—but it is a far better environment than unregulated markets.
UCITS is the gold standard for European funds. Strict diversification requirements (a maximum of ten per cent of a portfolio in a single issuer, with exceptions for government securities), liquidity requirements (most assets must be liquid), an independent depositary, detailed reporting. For you, this means that UCITS funds are significantly safer than unregulated investment vehicles.
AIFMD regulates alternative funds—hedge funds, private equity, real estate. Requirements are less restrictive than for UCITS but still far more rigorous than in many other markets. Asset managers must meet capital requirements, maintain appropriate organizational structures, and apply proper valuation and risk-management principles.
Technology Is Changing the Rules—But Not for Everyone
Forty-four per cent of asset managers already use AI and machine learning. Eighty-two per cent have implemented cloud infrastructure. Global robo-advisory platform assets reached $2.06 trillion in 2025, with projections of growth to $3.2 trillion by 2033.
Does this mean traditional asset management is dying? No. It means it is evolving.
For small portfolios (under a hundred thousand euros), robo-advisory can be an excellent solution. Low-cost, automatic rebalancing, intelligent allocation, tax optimization—all without paying for a human adviser. Platforms like Wealthfront and Betterment in the United States, or Scalable Capital in Europe, are democratizing access to professional investment strategies.
For mid-sized portfolios (a hundred thousand to one million euros), a hybrid model makes the most sense. You use technology for operational efficiency—automatic portfolio tracking, rebalancing alerts, account aggregation—but you also have access to a human adviser for key strategic decisions.
For large portfolios (above one million euros), technology is a tool, not a substitute. Your asset manager uses AI for risk analysis, trend identification, and portfolio optimization. But strategic decisions—allocation among asset classes, selection of alternative managers, tax structuring, succession planning—remain the domain of human expertise and experience.
Alternative Investments: Where Value Is Really Created
Private markets are projected to grow from $13 trillion to more than $20 trillion by 2030. This is not a fad—it is a structural transformation in how ultra-high-net-worth wealth is managed.
Private equity ($5.5 to $6 trillion in AUM) offers the potential for returns exceeding public equity markets but requires long-term capital commitment (typically seven to ten years) and high minimums (often €250,000 to €1 million per fund). Manager selection is critical: the difference between top-quartile and bottom-quartile performance in private equity is often fifteen to twenty percentage points annually.
Private credit ($1.5 to $2.6 trillion in AUM) is the fastest-growing segment, with a CAGR of fifteen to twenty per cent. Why? Because banks, under pressure from Basel III regulations, have curtailed lending—particularly to mid-sized companies. A gap has emerged, and private credit fills it. For investors, this means access to attractive yields (typically seven to twelve per cent annually) with relatively low correlation to public markets. But—and this is crucial—it requires proper credit due diligence. Here you genuinely need an experienced asset manager.
Infrastructure ($1.2 to $1.5 trillion in AUM) means long-term investments in real assets: power plants, energy networks, ports, airports, telecommunications infrastructure. The energy transition is creating enormous opportunities—wind farms, solar panels, energy storage, transmission networks. For investors, this means stable, predictable cash flows (often inflation-indexed) with low correlation to equity markets.
Real estate is the classic alternative, but the market is evolving. Traditional office properties are struggling with the remote-work transformation. Logistics centers and data centers have been the stars of recent years. Premium residential property in key locations remains a defensive allocation. But this requires specialized market knowledge—an asset manager must understand local markets, demographic trends, and urban-planning regulations.
The Role of a Professional Adviser: Do You Really Need One?
In the age of robo-advisory and DIY investment platforms, one might ask: do you need a professional adviser and asset manager at all?
For a €50,000 portfolio invested in a simple mix of equity and bond ETFs—probably not. Digital platforms handle this perfectly well at a fraction of the cost.
For a €5 million portfolio comprising assets in different currencies, corporate structures, real estate, private equity, tax optimization across multiple jurisdictions, and succession planning—absolutely yes. This is a level of complexity where professional advice is not a luxury but a necessity.
Our role as Kancelaria Prawna Skarbiec is not selling specific investment products—we are not an asset manager. Our role is helping you navigate this complicated ecosystem and select the right partners.
Needs analysis: First, we must understand your situation. What is the structure of your wealth? Where are the assets located? What is your tax residency? What are your goals—growth, capital protection, income generation? What is your time horizon? What is your risk tolerance—not theoretical, but real, tested in market downturns? The answers to these questions determine the appropriate strategy.
Manager selection: We know the asset-management ecosystem in Switzerland, Liechtenstein, and Luxembourg. We know which manager specializes in multi-asset strategies for international clients, which has the best track record in emerging markets, which offers access to top-tier private-equity funds, which is most tax-efficient for Polish residents.
Tax structuring: This is critical. The wrong investment structure can mean unnecessary withholding taxes, inability to deduct foreign taxes, CFC (Controlled Foreign Company) reporting problems. The right structure can save tens of thousands—and, with larger portfolios, hundreds of thousands—of euros in taxes over the years.
Compliance verification: Before you invest significant capital abroad, your tax situation in Poland must be crystal clear. CRS means automatic information exchange. If you have any arrears, undeclared income, or ambiguities, they must be resolved before, not after. We help identify and close these gaps.
Fee negotiation: Asset managers publish standard pricing, but with larger portfolios everything is negotiable—fees, minimum deposits, product access, reporting levels. Knowing what can be negotiated and how to do it effectively can save significant amounts.
Monitoring and oversight: Opening an investment account is only the beginning. The real value emerges in long-term monitoring: Is the strategy being executed according to plan? Is performance meeting expectations? Is the structure still optimal in a changing regulatory environment? This requires continuous oversight and readiness to adjust.
Practical Steps: How to Begin
If you are considering professional asset management as part of your financial strategy, here are practical steps:
1. Realistically assess your portfolio size. Professional discretionary management makes sense from approximately €500,000 to €1 million. Below that threshold, a combination of ETFs and robo-advisory platforms may be more cost-effective.
2. Define your goals and constraints. Is the priority growth, capital protection, or income generation? What is your time horizon? Are there any constraints—ethical, religious, sectoral? Are you planning significant withdrawals in the coming years (property purchase, children’s education)?
3. Get your tax situation in order. Gather tax returns from recent years. Identify any potential problems. Consider voluntary disclosure (if there are any arrears) before launching investment structures that will be automatically reported to Polish tax authorities.
4. Understand the cost structure. Do not look only at the headline management fee. Factor in transaction costs, performance fees, custody costs, taxes. Total cost of ownership is the only measure that matters.
5. Consider professional advice. Attempting to navigate the world of international asset management on your own, without experience and contacts, is a recipe for mistakes that often cost more than professional advice. A good adviser will save you months of wandering and potentially hundreds of thousands of euros in suboptimal decisions.
Kancelaria Prawna Skarbiec has advised clients on structuring and optimizing asset-management strategies for twenty years. Our expertise in international tax law, compliance, and investment structures enables us to offer comprehensive support in accessing the finest asset-management solutions in Switzerland, Liechtenstein, and Luxembourg—not as product salespeople, but as independent advisers acting solely in our clients’ interests.
