Answered by Magnus Jacobsson, founder of International Wealth Accounts Ltd
Q1. What kind of customers is International Wealth Accounts Ltd (IWA) looking for?
A1. IWA is aimed at wealthy individuals (High Net Worth Individuals – HNWI) and smaller institutions that are keen to achieve a steady return without excessive risk.
Q2. Who is IWA ideal for?
A2. – For those who want to reach a steady return without excessive risk.
-For those who want their money in their own brokerage accounts and wants to select their own bank or broker.
-For those who want to use their time for other things than following the markets on a daily basis.
-For those who only want to pay for successful results.
Q3. Why do you only charge a fee that is based on the results?
A3. Because the customer can be sure that the IWA and the customer always have the same objective: to achieve a long-term high and consistent return for the customer.
Q4. Where does the concept of only charging a performance fee come from?
A4. It comes from mainland China. During my many years at China Securities Co., Ltd. in Shanghai, I noticed that it was a concept that was requested by many Chinese customers. In Chinese culture, it looks bad to get paid if the customer does not receive any return. If you do not charge any fee when the customers have not made any money you can avoid losing face.
We at IWA think it’s a good concept since you should not be in this business if you can’t be sure you will give the customer a long-term return.
Q5. Can you choose to have a flat fee instead of a performance fee?
A5. Yes, there are a few customers who have a flat fee. Most customers only have a performance fee and are happy with it.
Q6. Why does the customer have their money and shares in their own account?
A6. We are a small organization with a limited number of customers and have concluded that this is the easiest way to manage client assets. In addition, customers can feel safe when their money is always in their own name and no one else has access to it.
Q7. Can I have an account wherever I want?
A7. IWA works with some selected banks and brokers around the world, but in principle we are open to cooperation with more if they have a high credit rating and all necessary permits.
Q8. What kind of investments are you specialized in?
A8. We are experts in shares and have a vast experience of many stock markets around the world. We work mainly with three different long-term stock portfolios based on the level of risk and expected return the customer prefers.
We also specialize in equity derivatives as an instrument to reduce the risk and can offer a low risk Covered call based portfolio for customers who wish.
Our Covered calls portfolios are an interesting alternative for those who seek more stable returns at lower risk than a normal equity portfolio. You don’t get the whole upside if the markets goes up fast but on the other side you make money even if the market is not moving. You even make money if the market goes down slightly! Our Covered calls portfolios is a very interesting investment strategy to generate income in the low interest climate of today.
By using our unique experience and network in China’s stock markets, we can also offer investments in Chinese equities.
Q9. Is it not high risk to buy Chinese stocks?
A10. We believe that you can have a small part of Chinese equities in the portfolio. The growth rate in China is still high and China is developing fast. There are many pitfalls in China but there are also great opportunities to make money for those who can find the right investments. Our experience in the Chinese stock markets and our network means we are well placed to find the profitable shares.
Q10. Can you offer customers other investments?
A10. Yes. We have some experienced customers who want us to help them take advantage of the various opportunities that arise during periods when there is much movement in the market. As we follow the market closely, we can identify a number of similar investment opportunities every year.
We want to emphasize that in these special situations we are not particularly fond of buying stock options, because we believe it is too speculative. However, we are happy to sell options against the underlying holdings and by doing this be able to reduce the risk for the customer.
Right now we are, under the name of EasyPension, doing some start-ups in different countries in the area of automated and semi-automated investment management (robo-advisors). We are open for strategic co-operation with suitable partners in different countries and later some financing when we expand into different countries, such as mainland China.
There are always new and interesting opportunities coming up to achieve a good return. If you are a customer of IWA, you can be assured that you will be able to participate in attractive investments.
Q11. Do you have any reading tips in order to learn more about the stock market?
A11. I read a lot of books in order to be able to learn from successful people’s wisdom and experiences to get inspiration for new profitable ideas. Here are some very good books:
The Intelligent Investor – Benjamin Graham
Common stocks and uncommon profits – Philipp A.Fisher
The Common Sense of Money and Investments – Merryle Stanley Rukeyser
The Stock Market Barometer – William Peter Hamilton
The Volatility Course – George A. Fontanills & Tom Gentile
Extraordinary Popular Delusions and the Madness of Crowds – Charles Mackay
Confusión de Confusiones (English) – Joseph de la Vega
Options as a Strategic Investment – Lawrence G. McMillan.
The Stock Option Income Generator – Harvey C. Friedentag.
New Insights on Covered Call Writing – Richard Lehman and Lawrence G. McMillan.
Technical Analysis of the Futures Markets – John J Murphy.
Reminiscences of a Stock Operator – Edwin Lefevre
Jesse Livermore: World’s Greatest Stock Trader – Richard Smitten
Where Are the Customers Yachts – Fred Schwed JR.
The House of Morgan – Ron Chernow
One up on Wall Street – Peter Lynch
Contrarian Investment Strategies – David Dreman
Deflation – A. Gary Shilling
The Little Book of Common Sense Investing – John C. Bogle
Platform Revolution – Parker, Van Alstyne and Choudary
Matchmakers,the New Economics of Multisided Platforms – Evans and Schmalensee
Augmented, life in the Smart Lane – Brett King