Introduction
to AFEX for
Introduction
The purpose of this proposal is to introduce
our overseas payment and risk management
solutions to your business. Our main objective
is to identify areas where we can add value to
your business, becoming your trusted
business partner.
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About us
Headquartered in California,
AFEX is a trusted global payment
and risk management solutions
specialist with a heritage that
dates back to 1979.
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We are seamlessly operating
24 hours a day, 7 days a
week, in over 200 countries,
trading more than $15bn in
foreign exchange each year
for our 24,000 clients.
We can handle every aspect
of a client’s foreign payment
needs, from risk consultation
to transaction execution.
About us
Our footprint is truly global with offices throughout Asia Pacific, EMEA and
the Americas; we’re able to operate across all time zones ensuring the needs
of our clients are met.
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Tailored approach
Your success is our
success.
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We view all of our clients as
partners.
Our foreign exchange experts will
create a detailed profile of your
company’s foreign exchange
exposure and produce a fully
customised solution exactly suited
to your unique needs.
Unique solutions
just for you
Whether you want to reduce costs,
manage risk or seize opportunities in
currency markets, our range of
customised solutions can help you
achieve your goals.
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Risk Management Approach
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Identify &
Evaluate
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Execute
Results &
Adjust
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Risk
Objective
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Formulate &
Execute
Hedging
Strategy
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4
Risk Profile
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Budget &
Costing Rates
Forward
Contracts
Forward Contracts allow you to
lock in exchange rates for up to 12
months in the future without
having to use all of your cash flow
to purchase the currency upfront.
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Forward Contracts provide
your business with certainty
amongst the volatile realms
of the foreign currency
markets and can be tailored
to your requirements
throughout the 12 month
period.
An initial deposit may be
required depending on many
factors surrounding the risk of
your commercial requirement.
Currency Options
Like Forward Contracts, Options
allow you to protect your bottom
line against fluctuations in the
currency market but with Options
there’s also potential for you to
take advantage if the currency pair
moves in your favour.
Pay a premium upfront and you can fix an
exchange rate for a point in the future
where you can benefit up to 100% if the
rates move in your favour. The higher the
premium, the more flexibility and freedom
you have.
There are two basic
kind of Options:
If paying a premium does not suit your
business model, the cost can be built into
your exchange rate, this would lower the
rate of exchange but you will still be able to
benefit 100% if the rate moves into your
favour.
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Risk Management Case Study
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•
•
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Proaqua bought $580k USD at 0.8060 on Dec 14 using a Participating Forward
Instead of delivering this at market rate of 0.7766, they used protection
This resulted in savings of over $27,000
Testimonials
“We have been using AFEX for the last 18 months to hedge our exposures to foreign
currencies. During this time we have used a number of different strategies (spot, forward
and options) to minimise our risk and protect our bottom line, with our dedicated Account
Executive offering their time and effort to ensure prompt settlement of trades and cost,
creating effective strategies to maximise our bottom line and minimise our time spent
worrying about currency.”
Matthew Curtis, CFO at Bundaberg Brewed Drinks (www.bundaberg.com )
“Using AFEX to convert our foreign exchange at Caterham F1 has been a fantastic business
decision for us. The strategic work on ensuring the conversions are done at the right time
and via appropriate product has significantly improved our bottom, counterparty for any
business or institution.”
Ruban Ghandinesen, Group CFO at Caterham Formula One (www.caterhamf1.com)
“I’ve used AFEX for over 3 years now and have found great value in doing so. The
relationship you develop with your Account Executive is vital in ensuring you trade at the
correct time and via the correct products. I am honest when I say, our bank doesn’t help us
make strategic decisions and in doing so, AFEX have added thousands of pounds per
annum to our bottom line. I strongly recommend AFEX to any business looking to improve
their FX process and importantly, save money”.
Drummond Harkin, Head of Treasury at Volkerfitzpatrick Ltd (www.volkerfitzpatrick.co.uk)
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Next Steps
Pick up the phone:
Speak to Kim/Alastair
Speak to James/Tom
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Organise an account:
Can be set up within 24
hours
No cost, obligation or
charge
You’re ready to
manage your currency
risk!
Questions
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