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Garantum Fondkommission  Specialized fund commissioner – solely offers structured financial securities – with or without capital protection  Established.

Published byErin Woods Modified over 9 years ago

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Presentation on theme: "Garantum Fondkommission  Specialized fund commissioner – solely offers structured financial securities – with or without capital protection  Established."— Presentation transcript:

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2 Garantum Fondkommission  Specialized fund commissioner – solely offers structured financial securities – with or without capital protection  Established 2004  Solid experience – Working with capital protected securities since 1994  Employee owned  22 employees  More then 370 issued securities since the start of 2005  Target group: Private persons, companies, foundations etc.  Independent – No connections to other business areas, insurance brokers, private banking, banks or individual investment banks.

3 Capital Protected Growth part 20 100 80 Bond 1,0 x Growth Option Index linked Bond – Construction

4 Capital Protected Tillväxtdel 20 100 80 Bond 1,0 x growth Option 10 Growth part 1,5 x growth An extra premium increases the return potential or makes investments in growth markets possible. Index linked Bond – Construction

5 The importance of independent purchases - reality examples December 2007 Conditions from different banks for a custom made Product purchased in December 2007. The six best prices. BankParticipation level 1121% 2118% 3117% 4108% 5102% 694%

6 Active management with structured products. Profit lock in Sell the old structure Buy a new one Increase capital protection Lowering of guarantee Sell the old structure (take a small loss) Restart the equity exposure Increase potential return 100 150 90 50 180 +100% Förfall

7 Capital protectionMSCI World IndexCurrent portfolio Index development +118% Capital protection +321% Market value +271% Reference portfolio 1995 - 2008

8 Profit lock-in 100 190 187

9 Capital protectionMSCI World IndexCurrent portfolio Index development +118% Capital protection +321% Market value +271% Reference portfolio 1995 - 2008

10 When the market declines… 100 150 90 50 180 +100%

11 Capital protectionMSCI World IndexCurrent portfolio Index development +118% Capital protection +321% Market value +271% Reference portfolio 1995 - 2008

12 Portfolio containing structured products 5 years 3 years 3,5 years 4 years VO Brazil, Tr150 000 kr x 1,5 AIO Sweden Optimal, Ti150 000 kr x 1,1 AIO China, Ti150 000 kr x 1,0 AIO Asia Optimal, Ti150 000 kr x 1,4 SO Carry Trade Mix, Ti150 000 kr x 2,2 AIO Global Best of Three, Ti150 000 kr x 1,5 Total investment 984 000 kr Sum capital protection 900 000 kr Sum capital in growth 1 335 000 kr China Sweden Asia Carry Trade Mix 5 years Global Best of Three Brazil currency 1 year PORTFOLIO WITH STRUCTURED PRODUCTS

13 Current products Growth Issue price: 112 Gearing.: 1,1 Growth Issue price: 112 Gearing.: 1,4 Defensive Issue price: 101 Gearing.: 1,5 Sweden Optimal 4 years 3 years China 5 years Brazil Currency 3,5 years 1 year Global Best of Three Defensive Issue price: 102 Cap.protected: 120 Gearing.: 1,0 Growth Issue price: 107 Gearing.: 2,2 Asia Optimal Growth Issue price: 112 Gearing.: 1,2 Carry Trade Mix 5 years Defensive Issue price: 102 Cap.protected: 100 Gearing.: 1,0 Growth Issue price: 112 Gearing.: 1,5

14 Sweden Optimal Carry Trade Mix 5 years 3 years Asia Optima l 5 years Brazil Currency 4 years 1 year Global Best of Three Growth Issue price: 112 Gearing.: 1,1 Growth Issue price: 112 Gearing.: 1,4 Defensive Issue price: 102 Gearing.: 1,0 Growth Issue price: 112 Gearing.: 1,5 Defensive Issue price: 101 Gearing.: 1,5 Defensive Issue price: 102 Cap.protection:120 Gearing.: 1,0 Growth Issue price: 107 Gearing.: 2,2 China 3,5 years Growth Issue price: 112 Gearing.: 1,2 Reduce the timing risk!

15 An optimal investment in a tough market

16 Sweden Optimal Carry Trade Mix 5 years 3 years Asia Optima l 5 years Brazil Currency 4 years 1 years Global Best of Three Growth Issue price: 112 Gearing.: 1,1 Growth Issue price: 112 Gearing.: 1,4 Defensive Issue price: 102 Gearing.: 1,0 Growth Issue price: 112 Gearing.: 1,5 Defensive Issue price: 101 Gearing.: 1,5 Defensive Issue price: 102 Cap.protection: 120 Gearing.: 1,0 Growth Issue price: 107 Gearing.: 2,2 China 3,5 years Growth Issue price: 112 Gearing.: 1,2 Reduce the allocation risk!

17 Global – Best out of three. USA Europa Asien Basket 1: 50% 25% 25% Basket 2: 25% 50% 25% Basket 3: 25% 25% 50% Hong Kong South Korea Taiwan Singapore

18 Sweden Optimal Carry Trade Mix 5 years 3 years Asia Optima l 5 years Brazil Currency 4 years 1 year Global Best of Three Growth Issue price: 112 Gearing.: 1,1 Growth Issue price: 112 Gearing.: 1,4 Defensive Issue price: 102 Gearing.: 1,0 Growth Issue price: 112 Gearing.: 1,5 Defensive Issue price: 101 Gearing.: 1,5 Defensive Issue price: 102 Cap.protection: 120 Gearing.: 1,0 Growth Issue price: 107 Gearing.: 2,2 China 3,5 years Growth Issue price: 112 Gearing.: 1,2 Find alternatives!

19 Real Vs Euro. Strengthening of the Real.  Befits from the health economical politics  Repaid the governmental debt  Promoted to ”investment grade”  One of the largest receiver of FDI in the World.  Demand for oil and raw material supply. Weakening of the Euro.  Weakening of the European economy.  Interest rate reduction expected during the year.

20 Return from interest and currency markets. ”Carry Trade” Borrow in countries with low interest Invest in countries with high interest Earn money on interest differences and currency rate fluctuations. 5 years average return of 14,3% per year. 20% Guaranteed return in the Defensive alternative. 2,2 participation grade with only 5% premium.

21 Portfolio nr 1 - Defensive Suitable for: -The careful customer. -Liquidity in companies -Pension funds

22 5 years 1 year VO, Brazil Tr300 000 kr x 1,5 SO Carry Trade Mix, Tr400 000 kr x 1,0 AIO Global Best of Three, Tr300 000 kr x 1,0 Total investment 1 020 000 kr Sum Cap protection1 080 000 kr Sum Market growth 1 150 000 kr Brazil Currency Carry Trade Mix (20% guaranteed return) Global Best of three PORTFOLIO WITH STRUCTURED PRODUCTS

23 Portfolio nr 2 - Growth Suitable for: -For those who consider on entering the market -Reallocation of fund money -Pension funds -For those who wants to reduce complex timing problems (with an optimal start.)

24 Growth portfolio 5 years 3 years 3,5 years 4 years AIO Sverige Optimal, Ti200 000 kr x 1,1 AIO Kina, Ti150 000 kr x 1,1 AIO Asien Optimal, Ti150 000 kr x 1,4 SO Carry Trade Mix, Ti200 000 kr x 2,2 AIO Global ”Bäst Mix”, Ti200 000 kr x 1,5 Total investment 1 054 000 kr Sum Capital protection 900 000 kr Sum Capital in growth 1 335 000 kr China Sweden Optimal Asia Optimal Carry Trade Mix Growth 5 years Global Best of Three PORTFOLIO WITH STRUCTURED PRODUCTS

25 Warrant  Brasilien Valuta: 6 500 SEK per warrant gives 1,5 times the growth on 100 000 kr.  Asien Optimal: 24 500 SEK per warrant gives 1,0 times the growth on 100 000 kr  Carry Trade: 18 500 SEK per warrant gives 1,0 times the growth on 100 000 kr

26 Case – low-risk investment in warrants Invest 102 000 SEK in Carry Trade Mix Defensive (5 år) with 20% guaranteed return and furthermore the full return on Carry Trade. Invest 24 500 SEK in warrants for Asian Optimal (4 years) with the full return on 100 000 SEK from the Asian basket. What will the outcome be: - Total invested capital: 126 500 SEK (ink courtage) - Guaranteed return: 120 000 SEK - Full return on Carry Trade Mix above 20% - Full return on Asian basket on 100 000 SEK.

27 Dubbelexponering Invest 102 000 SEK in the new Carry Trade Mix Defensive – 20% guaranteed return. Invest in 3 warranties “Brazil Currency” for 6 500 SEK per warranty which each give 1,5 times the growth on 100 000 SEK in Brazilian Real vs Euro. What will the outcome be: - Total invested capital: 121 500 SEK (ink courtage) - Guaranteed return: 120 000 SEK - Full return on Carry Trade Mix above 20% - 1,5 times the increase on 300 000 SEK in Brazilian Real vs. Euro

28 Summary  Replace shares, mutual funds, hedge funds and interest yielding securities, so the corresponding return is recieved to a lower risk.  Diversified portfolio with asset allocation  Different durations – liquidity planning  The capital protections makes it possible for the investor to identify the worst case scenario.  Profit lock-in – raises the level of capital protection, without venturing further growth potential.  Reversed Profit lock-in – lowers the level of capital protection but increases future growth potential

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