Beginner’s Guide to Investment
- January 29th, 2018
- in PROPERTY
Q & A with VP Bank’s President Sjoerd Koster, Elizabeth Harper, and Joanna Vass
Photography by Rainbow Visions BVI
When considering buying a property, maintaining a stable position of funding is prudent.
A wise place to begin this journey is with learning how to invest correctly, ensuring greater financial security in your present and for your future.
In making a decision to invest, the options and information available may appear daunting.
We talked to VP Bank’s BVI team—who bring together a wealth of experience in all areas of finance—to gain a concise understanding of the investment game.
We hear the word investment a lot – what is VP Bank’s definition?
Investment is the outlay of time, capital, or effort with the expectation of a positive outcome over time. At VP Bank, we take a methodical approach to meeting our clients’ desired outcomes over the relevant time horizon, along with understanding their risk tolerance and constraints that apply to their situation.
Why would an individual invest?
Motivations for investment are varied and often change depending on the life stage of an individual. Investors generally sit somewhere along the spectrum of seeking capital preservation or capital appreciation.
Holding investments can be a useful tool to mitigate uncertainty in the future, as well as deliver returns and accrue wealth. At VP Bank, clients can use their investments as collateral for borrowing.
Each client is individual and has his or her own aspirations. This could be long term estate planning (for inheritance), liquidity planning (for retirement, or education), or even hedonistic tendencies for those hoping to exploit opportunities in the market.
We develop an individual investment strategy with our clients on a step-by-step basis, offering the option of a discretionary managed account where the management of their assets are delegated to VP Bank, or a self-directed account if the client has some knowledge of investing. In this case, they feel confident in making their own investment decisions. Even a mix of these options is available.
How much should be invested?
This depends on the client’s financial situation, their aspirations for return, and their risk appetite.
With 50,000 USD (or currency equivalent), clients can open a current account with VP Bank and begin their investment journey. This amount is suitable for investments in time deposits, currencies, or a modest portfolio of self-directed investments into single securities or unit funds.
With 250,000 – 500,000 USD, clients can benefit from our classic managed portfolios comprised of either funds or direct investments which meet their risk profile.
Bespoke managed accounts with enhancements can be tailor-made for clients with balances above two million USD.
What are the typical types of investment available?
VP Bank offers investment and custody across all asset classes—equities, commodities, bonds, currencies, alternative investments, funds, structured products and derivatives.
One of our goals is to cover as many asset classes as possible by adopting an open architecture approach. This allows our clients to have exposure to a much wider investment universe.
We offer three levels of investment service to our clients, dependent on their preference. Execution only: You make your own personal investment decisions and your client advisory team executes these. Investment advisory: You make your own personal investment decisions on the foundation of our strategy-based investment publications and market information. Managed Portfolio Mandates: You delegate your investment decisions to our specialists, who manage your assets professionally in accordance with your requirements.
Methods of investing include ‘active’ and ‘passive’ – what does this mean to VP Bank and how they can assist a client?
Active management refers to the approach whereby a portfolio manager will make specific investments in order to outperform a benchmark or performance target without assuming inappropriate levels of risk.
At VP Bank, the risk exposure is kept in line with the risk profile of our clients. This is managed before the event and monitored after the event. All of our Active Management Mandates are systematically hedged, thus assisting our clients with offsetting adverse price movements in currencies.
Passive management refers to the approach whereby investors will seek to track the performance of a market, an index, or a theme.
This can be delivered through Exchange Traded Funds and offers a cost-efficient means of investing in a diversified portfolio without incurring additional costs from trading and holding individual securities if these aren’t required.
How would VP Bank help their client in choosing the right investment options?
Developing a comprehensive understanding of our clients’ wealth situation and objectives, marks the starting point for ensuring we enjoy a successful working relationship with our clients.
Getting to know a client and understanding them as a person provides the basis for the provision of a professional and comprehensive advisory service. When working together with corporate clients and intermediaries, establishing an understanding of the respective business model is also of key importance. Our client advisors will define the necessary steps for achieving the client’s objectives and will implement the strategy in a systematic manner.
Why open an account with VP Bank? What are the benefits?
We specifically compare our clients’ investor profile with the chosen solution and provide our clients with information on an ongoing basis in desired form.
Our personal client advisory ensures our clients always have a committed contact person at side who will offer a first-class service and the highest level of reliability. We attach the utmost value to these very aspects, which is why we repeatedly receive industry accolades for the quality of our advisory services.
Our clients receive access to our global network. Here, we select the right solution for each client with the best products from around the world.
With our publications and in personal discussions, our clients receive a clear overview at a pace of their choice.
Our clients deserve the very best; an unquestionably stable banking partner, professional service, and top-notch solutions. As an independent banking group with outstanding financial strength and top marks for the quality of our advisory services, we have the optimal conditions in place to meet investment and lending requirements.
Contact VP Bank
Telephone: +1284 394 1100