“But we are running at over 30% (return) annualised,” he says.
Healey and two colleagues, Janie Elrick and Edward Harman, set up NZ Currency Concepts at the end of last year to trade as FX Invest.Healey was previously the head of wholesale foreign exchange dealing for National Bank.
Elrick, a chartered accountant, was formerly general manager corporate finance with New Zealand Dairy Group, then chief financial officer with Zespri International. While Harman spent four years with SG Warburg in London.
The Auckland-based trio trade the kiwi against G7 currencies and kiwi crossrates. Healey says they play in safer, highly correlated currencies. “We would rather be part of the market and trade smaller amounts than take bigger and bigger positions,” he says.
Most clients are small to medium New Zealand investors – accountants, business owners, farmers and some investment advisers - many of whom have got bored with equities and want to seek higher returns with their risk capital. Healey says as far as he and his colleagues know, no other company in New Zealand offers market access for a minimum of $2000 and passes on wholesale foreign currency bank rates earned from the combined volumes of its stakeholders.
“We manage contracts and transactions daily, taking positions and closing them out as the market moves. Continual management and wholesale foreign exchange rates are the keys to our high returns.”
FX Invest claims returns have been well in excess of managed funds since it has been trading and fee levels are low by comparison. There is no upfront fee and FX Invest earns a margin on trades, plus 15% of a client’s profit in excess of a set benchmark.
Healey says in the past few months the trio has earned its money – “the market built a momentum by being short volatility and that makes it hard to trade. But it is rocketing away again now”.
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