Who is Currency Concepts?NZ Currency Concepts was established to offer an alternative way for New Zealanders to make financial gains. We provide opportunities in foreign exchange investment and management to all New Zealanders for whom these alternatives would have previously not been easily accessible. What does NZ Currency Concepts do?NZ Currency Concepts specialises in foreign exchange management and investment. Why is NZ Currency Concepts in the foreign exchange market?NZ Currency Concepts believes there is a real opportunity for New Zealanders to benefit from fluctuations in currencies. Our focus is to capitalise on these benefits and provide returns for smart investors. What products does NZ Currency Concepts offer?NZ Currency Concepts offers a product called FX Invest for investors seeking alternative ways to make financial gains How can I invest with NZ Currency Concepts?Investing with NZ Currency Concepts is simple. All we require is a credit (initial)deposit from investors. This deposit will be held by NZ Currency Concepts on behalf of our clients, and used to access trading facilities with our bankers. What return can I expect to receive on my investment with NZ Currency Concepts?Your return on investment in foreign exchange is often difficult to predict. We, for the purposes of our own internal budgeting, have estimated the returns to be 30% per annum. This is not a prediction, and we caution the risk of lower returns or even a loss should not be overlooked. Will I receive my money back?NZ Currency Concepts primary objective is to deliver a substantial return on our clients' investment. However, foreign exchange management does carry a risk and while there is potential for significant gains there is also potential for losses. The success of your investment will depend on the outcome of the positions we put in place on your behalf. If these positions make a profit, you will receive your money back, with interest. If they make no return, you will however still get your money back. If losses are incurred, the credit deposit you have made with us, will be used to fund those losses and this is the maximum amount of loss that you could sustain. How does NZ Currency Concepts make a return on my money?Every day NZ Currency Concepts looks at the foreign exchange market, and analyses the possible movements in currencies. NZ Currency Concepts then buys or sells currency based on those expectations (called a position). When the currency moves, we reverse the position we have in place, and take the profit (or loss) at that time. We may buy or sell currency for a short term (one to two days), or we may purchase currency for a longer term, such as 12 months. This will depend on our judgement as to what possible movements in currencies might take place.
What are the risks of investing with NZ Currency Concepts?As mentioned, foreign exchange management can involve risk and may result in losses occurring. Therefore, if NZ Currency Concepts seeks to takes advantage of an opportunity that ultimately results in a loss you will sustain a loss on the money you have invested with the company. In the worst case scenario, there is a possibility that you could lose all of the deposit money that you have invested with us. Are my investment funds safe?While you are investing with NZ Currency Concepts, your deposit money will be held on your behalf in a client account. Deloitte have been engaged in respect of the funds held on client behalf. A copy of their report is available. What do you do with my investment deposit?In order to put foreign exchange currency positions in place, NZ Currency Concepts needs to offer the financial provider (the bank) some form of security. Your investment money is used to provide that security. Do you have other clients with the same exposures as me?All clients that make an investment in FX Invest have the same exposures. What is NZ Currency Concepts' reputation?As NZ Currency Concepts started late in 2003, it has limited trading history. We rely on the individual reputations of company directors, Scott Healey and Janie Elrick. Scott is the former National Bank Head of Foreign Exchange and Janie is the former General Manager Corporate Finance for New Zealand Dairy Group. Their combined expertise and reputation make for a very reputable business.
What are the taxation consequences of foreign exchange investments, and who pays any tax owing?NZ Currency Concepts does not provide taxation advice to clients, and we recommend that you discuss this with your accountant. However, we do anticipate that in general you will be taxed on any gains from your investment with us. Likewise, we would expect that any losses from your investment will be tax deductible. NZ Currency Concepts will not be held liable for any tax due to be paid for gains made by an investor. FX INVESTWhy should I invest with FX Invest?FX Invest offers an opportunity for ordinary New Zealanders to benefit from participating in foreign exchange investment. It offers an alternative financial investment with potential for real gains to be made. How does FX Invest work?NZ Currency Concepts will actively manage an FX Invest account on behalf of an investor. It will buy or sell currency positions daily, weekly or monthly in order to maximise returns from foreign exchange transactions. How much money do I need to invest?Investors need to make a credit deposit of at least $10,000 to participate in FX Invest. NZ Currency Concepts will buy and sell currency up to 20 times the value of the investment on behalf of the investor, for example a $10,000 investment will enable the company to enter into contracts worth up to $200,000. What are the likely benefits from investing with FX Invest?The returns from foreign exchange investment are difficult to predict, however we have budgeted on a return of 30% per annum before NZCCY's fees are subtracted.The profits will be paid quarterly, but all investors will be informed monthly on the account's progress. What are the associated risks?Managing foreign exchange is not without risk and there is potential for losses. If losses are incurred the credit deposit will be used to fund those losses and is the maximum amount of loss that could be sustained. If the maximum loss is suffered, the investment will have been lost and there is no recourse to NZ Currency Concepts or to the trading institution for that loss. How often will I be paid any gains?NZ Currency Concepts will pay all profits (and losses) at the end of each quarter. Quarters end is on the Thursday closest to the last day of January, April, July, and October each year How long is my money tied up for?You can leave your investment with NZ Currency Concepts for as long as you choose. We have tried to make any investment you make with us as flexible as possible, so you need to give us just one week's notice if you want to withdraw from the FX Invest account. All withdrawals are made only on the next Thursday, one week after you have given notice to withdraw. What margin does NZ Currency Concepts charge for managing my investment?NZ Currency Concepts earns its fees in two ways. Firstly by charging a margin of 0.5pp on all transactions entered into on behalf of clients, and secondly NZ Currency Concepts will earn 15% of all profits made above a 10% (2.5% quarterly) return on the client deposit. This will be calculated at the end of each quarter. How does this compare with other organisations offering similar investment products?Our research tells us there is no similar product available in the New Zealand market. How do I make an investment with FX Invest?To invest with FX Invest you need to complete a trading account application form trading account application. You also need to decide how much you want to invest with FX Invest. Once you have completed and signed the form, please forward it along with your deposit cheque to: NZ Currency Concepts
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