Nicolas Syz from Syz Bank is our Advisor of the Month
29 MAY, 2024
By Jose Luis Palmer from RankiaPro Europe
Nicolas Syz is head of private banking at Syz Bank, where he leads the entire front office. The client relationship team is split into independent asset managers and regional focuses (Switzerland and Europe, Latin America and Iberia, as well as Africa).
Prior to this role, Nicolas headed the investments team which is comprised of advisory, discretionary and alternative investment management. Before that he led business development at Syz Bank, managing the business support function and product development process for Syz’s four key regions and focus countries: Switzerland, Africa, Latin America, and Europe. In this role he built the entire Swiss product offering, including wealth planning, pension planning and mortgages.
Preceding Syz Bank, Nicolas started his career as a junior sales manager at Firmenich managing the Unilever Fine Fragrance Division in London and then Paris. Following this he joined UBS as an equity strategist in the wealth management CIO office in Switzerland where he was a part of the Equity Team and Active Global Tactical Asset Allocation (TAA) position taker for discretionary mandates. Nicolas was also responsible for global regional equity investments through qualitative and quantitative research.
Outside of finance, Nicolas is an avid sportsman, previously being part of the Swiss National Skeleton Team, and a passionate photographer.
What made you decide to go into the financial sector? Did you have any other vocations?
My genuine passion for providing exceptional service and valuing each client's unique contributions inspired me to join the industry. I graduated with a master’s degree in finance and economics from HEC Lausanne and Sciences Po Paris in 2009, at the time of the GFC, which made me realise even more that clients’ needs were not a priority. Initially, I started my career in the industrial sector at Firmenich, where I focused on understanding and meeting consumer needs. After successfully developing products tailored for clients rather than the other way around, I was inspired to apply this client-centred approach to my family business. This led me to join Bank Syz in 2017 and later take over the role of Head of Private Banking in 2019.
What does a typical workday look like for you? How do you organize your time?
When you possess an entrepreneurial mindset, your primary focus is on getting things done. This often means that your day may not go as planned. It's essential to remain agile to meet the demands of clients and the business. However, it's crucial to maintain a balance and not let this flexibility distract you from prioritising what is important and what is urgent.
When I am not abroad, I usually split my weeks between Zurich and Geneva. In Zurich, we are renovating a new flagship office scheduled to open in September. I spend time with bankers in Zurich and their clients, conducting banker interviews and allocating time for strategic thinking and meetings.
I travel weekly to our headquarters in Geneva, from Tuesday to Thursday, for a series of meetings—team discussions, client engagements, and organisational updates. My day starts very early on Tuesday morning; the train ride to Geneva provides a valuable opportunity to think, prepare for the day, and review any necessary materials. My day then kicks off with some team meetings, a mix of interviews, client and internal meetings as well as informal discussions. These sessions focus on asset growth and ongoing projects, ensuring all feedback is effectively incorporated.
My workday concludes around 20:00. If there's no dinner engagement, I dedicate 30 minutes to sports to unwind after the intense day.
Every two months, I also plan extended trips to regions such as South Africa, South America, and Asia. Additionally, I undertake shorter trips around Europe and the Middle East every month. These travels are crucial for maintaining and expanding our international presence and operations.
Which portfolio allocations are most interesting in the current market situation?
In any given market, there isn't a one-size-fits-all portfolio allocation that works universally; it truly depends on the individual. Each person has a unique reaction to market fluctuations based on their own risk appetite, tolerance, market biases, experience, and preferences. My core advice to investors, regardless of the market conditions, is to maintain a long-term investment horizon. Ideally, this means keeping assets invested for a duration of 7 to 10 years. This approach helps to buffer against market volatility and allows for the strategic selection of quality stocks that align with an individual's specific criteria.
Additionally, I personally allocate a portion of my wealth to alternative assets. This is a strategic choice aimed at leveraging the benefits of uncorrelated assets and the potential for higher returns due to illiquidity premiums. It’s crucial for any investor to ensure their portfolio is well-diversified and includes capital that can be committed over a longer time horizon. This diversified and long-term approach is fundamental to achieving sustained growth and stability in one's investment portfolio.
Which sector do you consider particularly interesting at the moment?
We live in an age of opportunity! Never has the world been through a time so fertile in innovation and disruption: blockchain, artificial intelligence, genome sequencing, robotics, energy storage, electric vehicles, and the list goes on. All these projects and developments create fantastic investment opportunities. And that's what makes our business and the investment world so exciting!
How should investors orient their portfolios in the current environment?
The combined effects of a moderate slowdown in growth, lower interest rates and positive corporate earnings momentum should lead to a moderate rise in equities in 2024.
The good news is that the rise in equity markets should be more balanced than it was in 2023. The exceptional performance of the magnificent 7s was the main driver of the market's rise this year. But this year, we expect a more generalised rise in equity markets. While some mega-caps in the technology sector should do well, it's time to look at the stocks that are lagging, such as some small- and mid-caps, Swiss blue chips and value stocks.
That being said, we always remind our clients to diversify portfolios and use protection.
Against a backdrop of growing geopolitical risks, uncertainty surrounding the 2024 US election and the consequences of 24 months of monetary policy tightening, we recommend incorporating protective strategies into portfolios. The very low volatility of equity markets also makes it possible to use low-cost option strategies.
Assets that can be used to diversify portfolio risk include oil and energy stocks (useful in the event of geopolitical shocks), gold and digital gold (aka bitcoin), which are effective hedges not only against geopolitical risks, but also against the downside of growing US budget deficits and the debasement of so-called FIAT currencies.
Among hedge funds, we should mention macro and multi-strategy funds, which take advantage of macroeconomic volatility and are nimble enough to take advantage of the best tactical opportunities.
For clients who are not constrained by liquidity requirements, the inclusion of private assets can significantly improve their risk/return profile.
What characteristics do you think a good financial advisor should have?
A competent financial advisor should embody three essential qualities: passion for investing, curiosity, and rigor. Passion is crucial as it keeps the advisor constantly engaged with the market. It helps them stay on top of current events, company updates, and emerging trends. This continuous engagement is vital for maintaining a dynamic and responsive investment strategy.
Curiosity compels the advisor to delve deeper, asking the right questions that reveal the needs and capacities of their clients. It also drives them to rigorously question companies to assess their current trajectory and momentum. This thorough questioning helps ensure that investments are both sound and strategically aligned with client goals.
Lastly, rigor is indispensable. It ensures that the advisor does not merely accept information at face value but instead critically evaluates it to provide well-rounded recommendations. This includes considering factors such as the client’s home bias, risk profile, the market environment, target returns, currency exposure, and portfolio diversification. Rigor ensures that all recommendations are comprehensive, minimising risk and maximising potential returns.
When you have free time, what do you like to do?
I spend as much time as I can with my family – my wife, my seven-year-old son, and five year-old daughter. That time is spent mostly outdoors or traveling with them. To keep my energy levels high and my mind clear, I go running early in the morning around 05:00 before heading to work.
