vontobelin viputuotteet - esitys webinaarista 31.1
TRANSCRIPT
Performance creates trust
Investing in indices and commodities with leverage
Mikaela Hildén, Bank Vontobel Europe AG
Nordnet Finland
31 January 2017
2
Important legal information
This presentation serves solely to provide you with information and does not constitute a solicitation or offer by Bank Vontobel Europe AG, Frankfurt am
Main branch (referred to collectively with affiliates as "Vontobel"), to purchase or sell securities. The information provided to you in this presentation does
not constitute financial analysis and also does not satisfy the statutory requirements for ensuring the unbiased nature of financial analysis; nor is such
information subject to a ban on trading prior to the publication of financial analyses.
The information included in this presentation does not constitute any investment, tax or other advisory service. Such information does not take into
account your specific situation as regards to your investment targets and risk appetite. Such information does not replace the advice by your bank or any
other tax or financial adviser which is essential in each individual case prior to taking any purchasing decision.
In order to receive detailed information pertaining in particular to the structure and the risks associated with an investment in the securities, you should
read the relevant base prospectus which, in addition to the final terms and any supplements to the base prospectus, is published on the webpages of the
Issuer (https://certificates.vontobel.com) and which is obtainable free of charge from the Issuer, Vontobel Financial Products GmbH, Bockenheimer
Landstrasse 24, 60323 Frankfurt am Main, Germany. Investors are requested to comply with the applicable selling restrictions.
Historical price performance is not a reliable indicator of future price performance of the underlying or the securities. Note that the payment of tax,
commissions and fees may have a negative impact on the return of investment.
Not all structured products issued by the Issuer are suitable or appropriate for an investment by an interested investor. The purchase of such securities may
be linked to risks. It is strongly recommended to seek for independent advice by tax or financial advisers as well as distribution partners prior to taking any
purchasing decision.
The reproduction, distribution, modification or any other use of this presentation (in full or in part) without the written consent of Vontobel is prohibited.
The product is not sponsored, endorsed, sold or promoted by SIX Swiss Exchange Ltd and SIX Swiss Exchange Ltd makes no representation regarding the
advisability of investing in the product. The SMI® is a registered trademark of SIX Swiss Exchange Ltd, and any use thereof requires a license.
DAX® is a registered trademark of Deutsche Börse AG.
Publisher: Bank Vontobel Europe AG, Frankfurt am Main branch, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany.
Copyright© 2017 Vontobel. All rights reserved.
3
Overview
Presentation of the Vontobel Group
DAX®30 Index
Brent Crude Oil
What are Exchange Traded Products?
What are Bull & Bear Certificates?
Tool box!
Trading Opportunities & Risks
Q&A
4
Vontobel in brief
Global investment advisor with a long tradition and strong capital base
Vontobel specialises in asset management for private clients and institutional investors as
well as in investment banking.
Founded in 1924
90 years of entrepreneurial independence
Still family-run via majority shareholding
Listed on the SIX Swiss Exchange since 1986
Head office in Zurich, 22 locations worldwide
Around 1.500 employees
Moody‘s rating Aa3 (long-term deposit rating Bank Vontobel AG)
Three divisions: Private Banking, Asset Management, Investment Banking
Key figures:*
Total client assets: CHF 187 bn
Equity: CHF 1,40 bn
CET1 capital ratio: 17,9%
Dividend per share CHF 1,85 for 2015
*as of 30 June 2015
5
Private Banking, Investment Banking, Asset Management
Vontobel specialized core capabilities
Protect and Build Wealth
We take a long term approach in protecting and building the wealth our clients
have entrusted to us. In doing so, we provide our clients with responsible and
forward-looking advice, transcending generations.
Manage Assets Actively
As active asset managers, we provide financial added value for our clients and
develop first-class solutions for return optimisation and risk mangement.
Deliver tailor-made investment solutions
We implement tailor-made investment solutions for our clients. Additionally
our products and processes are based on the latest forward-looking research.
6
Overview
Presentation of the Vontobel Group
DAX®30 Index
Brent Crude Oil
What are Exchange Traded Products?
What are Bull & Bear Certificates?
Tool box!
Trading Opportunities & Risks
Q&A
7
The DAX® Index
Composed of the 30 largest German companies traded
on the Frankfurt Stock Exchange
The DAX® is an influential European index and responsive
to global market influences
BMW, Siemens and Deutsche Bank are some of the
companies listed on the German DAX®30 Index
The DAX® is highly liquid compared to other tradable
assets on the market and generally serves good volatility
and many trading opportunities
The DAX® Index 3-year graph
Key Points
Historical price performance is not a reliable indicator of future price performances.
8
Overview
Presentation of the Vontobel Group
DAX®30 Index
Brent Crude Oil
What are Exchange Traded Products?
What are Bull & Bear Certificates?
Tool box!
Trading Opportunities & Risks
Q&A
9
The Brent Crude Oil
Crude Oil has a unique standing point within the world
economic and political systems
OPEC can affect the price by regulating production output
Over-supply and shrinking demand encourage traders to
sell crude oil to lower ground while rising demand and
declining or flat production encourage traders to bid
crude oil to higher ground
Offers high liquidity and excellent trading opportunities
The Brent Crude Oil 3-year graph
Key Points
Historical price performance is not a reliable indicator of future price performances.
10
Overview
Presentation of the Vontobel Group
DAX®30 Index
Brent Crude Oil
What are Exchange Traded Products?
What are Bull & Bear Certificates?
Tool box!
Trading Opportunities & Risks
Q&A
11
Exchange Traded Products
Definition Leverage Effect
ETP:s give you a chance to increase the yield on your investment by leveraging
the performance of the underlying asset
Listed on NDX Finland – the Nordic Derivatives Exchange
Products are linked to underlying assets, e.g. an index, a commodity
Only a small amount of capital must be employed in comparison with a direct
investment in the underlying asset
Leverage effect
Vontobel products tradable free of commission* at your Nordnet depot
Broad range of opportunities that are now easy to access!
* 16.1 – 10.2.2017 Trade free of commission per order above EUR 1000 at
12
Important to keep in mind!
Although leverage products offer opportunities for disproportionately high gains,
the leverage works in both directions(!) and can also result
in disproportionately heavy losses. But, you may never lose more than
your initial investment.
The Leverage Effect
13
Overview
Presentation of the Vontobel Group
DAX®30 Index
Brent Crude Oil
What are Exchange Traded Products?
What are Bull & Bear Certificates?
Tool box!
Trading Opportunities & Risks
Q&A
14
Bull & Bear Certificates
Definition Constant Leverage
Bull & Bear Certificates are open end leveraged financial products
They allow investors to participate disproportionately on stable (positive or
negative) performance of a linked reference asset, e.g. an index or a
commodity
Special strengths in stable trends, either rising (Bull Certificate) or falling
(Bear Certificate)
The leverage remains constant on a daily basis, thus the investment is
equivalent to a reinvestment on a daily basis.
Each certificate replicates the performance of an underlying factor index at a
fixed predetermined ratio. The factor index disproportionately reflects the
performance of the reference instrument on a daily basis by multiplying the
change in its value by a constant factor indices.vontobel.com
Constant leverage at Vontobel from x2 to x15
15
Factor Index for Bull & Bear Certificates
Example: The value of a Bull Certificate with a leverage of 4 will theoretically rise four-times as much as the reference
instrument. If the reference instrument rises by 2%, the value of the underlying factor index will rise by 8%. On the
other side it will lose 8% of its value when the reference instrument decreases by 2%.
Bull Certificate on the 4x
Long Index linked to DAX®
4x Long Index
linked to DAX® DAX®
Check out the Index portal at Vontobel indices.vontobel.com
16
Risks Opportunities
Bull & Bear Certificates
Trading of strong market trends and momentum-driven
market phases, either rising (Bull Certificate) or falling
(Bear Certificate)
Transparent financial instrument due to the leveraged
index, which replicates the respective underlying with a
constant leverage
They allow investors to participate disproportionately on
stable (positive or negative) performance of a linked
reference asset, e.g. an index, a commodity…
Optimal short-term investment product to take part
disproportionately of a stable price trend
Sideways markets without strong trends can generate
significant losses for investors
The price of the certificates may differ significantly from
the intrinsic value during market turmoil as well as in
market phases with significantly higher volatility and/or
market phases with low liquidity
Volatile markets, gap risks as well as liquidity risks
could lead to an increase of the risk margin in the
Certificate. This is a necessary measure for the market
maker in order to manage its risk positions
Furthermore, the market maker can widen the spreads for
risk management reasons
17
Overview
Presentation of the Vontobel Group
DAX®30 Index
Brent Crude Oil
What are Exchange Traded Products?
What are Bull & Bear Certificates?
Tool box!
Trading Opportunities & Risks
Q&A
18
How may I succeed trading Exchange Traded Products?
A trading tool box!
Take advantages of bull and bear market trends
Chose the right moment to enter your trade
Decide on mental “stoplosses” to cut potential losses quicker
Decide on a target price to let your investment be goal determined
Know the risks and opportunities
Alternate short and mid to long-term products, stay active!
Let the trend be your friend…
19
Overview
Presentation of the Vontobel Group
DAX®30 Index
Brent Crude Oil
What are Exchange Traded Products?
What are Bull & Bear Certificates?
Tool box!
Trading Opportunities & Risks
Q&A
20
Linked to DAX®30 Index & Brent Crude Oil Futures
Trading Bull & Bear Certificates with high/low leverage
High leverage results in a high potential reward as well as imposing high
risk!
Remember that quick rewards may as well result in quick heavy losses, lower
leverage mitigates the product value fluctuations
There are opportunities to hedge a portfolio consisting of stocks included in
the DAX® by shorting the DAX® for instance…
Dedicate focus in your portfolio by lifting the performance of the DAX® or the
Brent Crude Oil linked to leverage products, with either low or high leverage!
Stay updated on economic data and political news affecting the global
economy, including unemployment rates, job creation, interest rates, GDP
figures and other economic benchmarks
21
Risks
Opportunities
Short summary of Exchange Traded Products
Participating on clear market trends and a broad access
to global markets!
Fast way to react on company‘s data and also on
economic developments (e.g. oil price, currencies,
economic figures)
Use volatility of capital markets. Flexible instruments
for day trading, swing trading as well as hedging and risk
management
The high liquidity provided by each issuer’s market
makers offer increased market opportunities
Dedicate focus or hedge your portfolio by lifting the
performance of chosen assets with leverage products
Create an alternative to your portfolio, exchange the
assets to products with low leverage – for active traders!
These products are particularly risky and not suitable for
all type of investors
ETPs are complex financial products and requires a good
understanding for the underlying market and the products
specific conditions and characteristics
When investing in ETPs, there is a risk of loosing your
total invested amount
Consider liquidity risk, issuer risk, market risk, currency
risk, gap risk
The higher the leverage is, the higher also the risk
Investors are responsible for reviewing all risk factors
belonging to the products, which are enclosed in the base
prospectus and the respective final terms on the
Vontobel website
22
Trade Vontobel products at Nordnet free of commission* 16.1-10.2.2017
www.nordnet.fi/vontobel
23
Overview
Presentation of the Vontobel Group
DAX®30 Index
Brent Crude Oil
What are Exchange Traded Products?
What are Bull & Bear Certificates?
Tool box!
Trading Opportunities & Risks
Q&A
24
Thank you for your attention!
Mikaela Hildén, Bank Vontobel Europe AG
[email protected] / 0800 91 77 91
www.certificates.vontobel.com
Twitter @Vontobel_FP_FI
Bank Vontobel Europe AG Bockenheimer Landstraße 24 DE-60323 Frankfurt am Main Germany