Markets are volatile. How does BlackRock Switzerland assess the current environment?

We’re seeing exceptionally high demand for advice. In times of uncertainty, we view this as an opportunity to reaffirm our position as a trusted local partner with global reach, while identifying new investment opportunities.

What guidance are you offering clients?

We advise investors to look beyond short-term market fluctuations and instead analyze the long-term implications for capital markets, geopolitics, and investment opportunities. It’s ; it’s about cutting through the fog to identify structural trends.

Which trends do you currently observe?

A key development is the recalibration of globalization. Value chains and capital flows are being realigned.

«The tech sector is also essential — and often overlooked. Europe remains heavily reliant on U.S. tech firms.»

Some U.S. investors are shifting capital to Europe. Is this Europe’s big opportunity?

Since the financial crisis, Europe has underperformed the U.S. by roughly 1 percentage points in annual growth — which is clearly reflected in market performance. Now, there is a genuine chance to regain lost ground. 

Which areas need the most catching up? Which areas represent the largest performance gap?

Infrastructure and defense are critical. The tech sector is also essential — and often overlooked. Europe remains heavily reliant on U.S. tech firms. We also need a functioning European capital market to ensure easier access to funding for start-ups.

Policymakers are announcing multi-billion investment packages. How important is swift action?

Very important. The investment backlog is significant, and expectations are high — from both the public and investors. Policymakers have gained a degree of trust, but they must not squander it.

«Germany has sent a strong signal to Europe with its announced investments in infrastructure and defense.»

Is this renewed confidence already visible in the markets?

Yes, we saw strong inflows into European equities in Q1. However, allocations have since shifted back somewhat toward the U.S., reflecting the continued appeal of American stocks.

How do you interpret this?

We don’t see this as a fundamental shift, but rather a recalibration — with slightly greater weight being allocated to European equities. 

What role does Germany play in this shift?

Germany has sent a strong signal to Europe with its announced investments in infrastructure and defense. It also has the potential to lead globally in trade and cooperation. 

What does this mean for Switzerland?

Switzerland is part of this dynamic. In the near short term, much depends on new trade agreements with the U.S. success will largely depend on new trade agreements with the U.S. As a highly diversified, innovation-driven economy, Switzerland remains attractive — including for us. Switzerland continues to stand out as an attractive destination, thanks to its diversified and innovation-led economy — a key consideration for us. Blackrock has invested approximately CHF 150 billion in Switzerland, and CHF 1.5 trillion across Europe — more than any other asset manager.

«In response to increasing demand, we’ve launched new products — such as ETFs — focused specifically on European defense.»

Blackrock recently launched a Bitcoin ETP. What role does crypto play in today’s environment?

Many investors are reassessing their asset allocations. Two themes are gaining prominence: gold as a core multi-asset anchor — and Bitcoin.

Are you surprised by the growing interest?

Not really. Bitcoin shares key traits with gold: it’s it is decentralized and has a limited supply. We see more and more clients opening up to crypto — including institutional investors like private banks, wealth managers, and increasingly pension funds, —including some in Europe. 

Still, Blackrock wasn’t the first provider.

That’s true. However, we now command over 80% of net inflows in this segment. When investors choose to allocate to Bitcoin, the majority are opting for Blackrock. That shows investors trust us to be a robust partner. 

Defense investments are also gaining traction. Is Blackrock active in this area?

Yes, there’s growing interest in European defense companies. In response to increasing demand, we’ve launched new products — such as ETFs — focused specifically on European defense.

Dirk Klee is the Country Head of Blackrock Switzerland.