Interview with Jan Wikberg, Managing Director
With more than 25 years personal experience in the financial business, I founded Penn Investment. For the past 17 years I have marketed highly competitive structured products such as Equity Bonds, Autocalls and the Vinga Fond that combine capital protection with positive yield potential. Penn operates internationally and is focused on private individuals, companies and institutions that invest capital in the medium and long-term. Penn structured client portfolios generate documented high risk-adjusted returns, especially with the historically difficult capital markets of recent years.
Describe your main products. Explain how structured products work compared to mainstream investment products.
The mainstream products that are offered to most equity and index fund investors can move up or down resulting in unlimited gains or uncontrolled losses. Investors investing in these instruments are quite familiar with roller coaster investments. With structured products you put a floor on an investment without a ceiling. They are structured in two parts. The first part is a bond that provides capital protection. The other part is an option that offers a market-related growth opportunity.
1 Year Structured Product
What products would you recommend Swedes living in Sweden and what products would you recommend Swedes that have migrated and live abroad.
A Swede living anywhere can invest in structured products, equities and mutual funds through the Swedish governments new ISK – account (investment savings account) without paying capital gains taxes. An investor does not even have to submit the complicated tax declarations.
By combining several different structured investments, one can effectively build a diversified, well-balanced and sustainable portfolio at low risk.
I recommend the VINGA FOND, a mutual fund with the floor and no ceiling (see answer 2). VINGA FOND invests in structured products and sets a floor for investments in a falling market and high potential returns in a rising market.
Combining an investment in VINGA FOND with an Autocall structured product generates returns in sideways and falling markets.
Give us a prediction for the economy 2014: Western Europe, Eastern Europe, United States and finally Asia. If we put our money in funds, where is the highest risk/return potential and vice versa the lowest risk/low but safe return?
New winds are blowing in China after President Xi Jinping’s 10-year manifesto. It may well be the most ambitious reform effort in postwar China that opens the door to a more market-oriented economy. This should trigger a positive stock market performance in light of low Chinese stock market valuations. Other Asian economies may also be pulled toward more sustainable growth because of the Chinese redirection. Previous Chinese policy revisions have historically been the starting point for a new Chinese period of economic growth.
P / E ratio based on projected earnings forecasts for the coming year
Growth in the American economy has already triggered expansive consumption, increased housing starts and lowered unemployment, with the potential to continue a shift upward. The stalled budget negotiations, however, have halted investment by over-capitalized American companies. If the politicians reach an agreement on budgetary issues in January 2014, the power of American companies to resume their investments should not be underestimated. It could boost the US economy, the stock market and increase a faster recovery in the European economy.
Europe continues weak economic growth with the exception of Sweden and Germany. The deterioration rate has levelled off through the reforms already initiated and the European Central Bank’s expansive fiscal policy. The result has been an increase in southern European stock markets, which have high potential now that reforms are progressing in Italy, France, Portugal and Spain.
• More stable economic conditions – but the market is still not optimistic about the global economy.
• The risks stem mainly from political developments.
• Conditions for optimism can increase:
– Growth will gradually increase faster in the United States and should not be underestimated if budget negotiations are resolved
– China’s growth is levelling off, but will probably increase through new reforms with attractive stock market valuations.
– The weak, but more stable European economy should feature attractive southern European stock market valuations.
– A better global economy should lead to higher profit estimates.
– The exchanges that have lagged behind should then recoup with the best developments foreseen in China, Russia, Brazil and Southern Europe.
The Strongest Survive.
Charles Darwin’s theory of evolution is true not only in the plant and animal kingdom. Every person who has been exposed to stock market turbulence can attest that Darwinism is just as relevant in the financial world. Although it does not apply to everyone, the people who had their investments in structured investments have seen their capital withstand price declines. When stock markets have risen, their capital has grown at the same rate or often faster.
So you have to ask yourself – how strong is your portfolio!?
To keep in mind:
– Do not take unnecessary risks
– Make the right investment at the right time
– Have peace of mind in the portfolio regardless of market fluctuations.