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Investment Strategy

Source: www.vpbank.com
Topic: Bank Investment

Sort Desciption: VP Bank's investment. universe consists of a wide range of investment possibilities. ...... ly joined investment bank Kleinwort Benson as an analyst. ...

Content Inside: Investment Strategy 3 rd Quarter 2007 4 Foreword I Demographic Trends Affect Us All 6 Investment Universe I VP Bank 7 Global Environment I China in the Headlines 9 Currencies I Is the Canadian Dollar’s Strength Sustainable? 10 Government Bonds I Surprisingly Robust Economic Growth Pushes Up Yields 11 Credit Markets I Never-ending Party, or “Morning After” Blues? 13 Equities I Big is Beautiful – Again! 16 Private Equity I Communist Paradox 18 Hedge Funds I Revolution in the Hedge Fund Industry 20 Convertibles I An Elegant Way to Pay Less Tax 21 Commodities I Energy Price Rise “Made in the USA” 22 Asset Allocation I Updated 24 Feature I Inequality and Its Discontents 27 Feature I How to Find True Fulfillment in Business 29 The VP Bank Group I Addresses Contents | vp bank | investment strategy 3 rd quarter 2007 Much has been written about the aging of the populations of Europe, Japan and other regions. Even those who deal with this topic constantly, as we do, find it far from easy to get a clear overall picture. Most reports are tendentious. They range from horror scenarios – the extinction of entire popu- lations – to minute analyses with explosive conclusions, like the "black holes" in pensions financing. Here I would like to highlight two demographic develop- ments that are of enormous importance, both for the welfare of your family and for the shaping of your financial future. Between 2005 and 2025 the average age of the population of Germany will rise from 42 to 47 and that of Japan from 43 to 50. This development is bound to have a major impact on the supply of labor available to sustain economic growth. Increased immigration and a raising of the retirement age are possible remedies here. The McKinsey Global Institute 1 has investigated another aspect: the effects of an aging world population on the financial wealth of households in the major economies. The key question is whether household savings will in future be suffic ...

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