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AJR Hedging Services

Companies involved in import and export should be aware of the risks associated with adverse currency fluctuations that can substantially affect their profit margins.

A policy of hedging should be systematically in place and adhered to with strict discipline.

AJR Hedging Services have been developed to cover the specific needs of GENUINE HEDGERS WHO DO NOT WANT TO SPECULATE when addressing the risks associated with the fluctuations of the financial markets directly linked to their core business.

It caters for:

  • Currencies:
    - Importers / Exporters
    - International investors who wish to protect their investments against adverse fluctuations of the underlying currency.
  • Precious Metals
  • Commodities

You are an importer / exporteR
Do you know where the Rand is going?
Don't worry nobody does
AJR deals with the unpredictable.

If you are facing one or more of the following problems we have the solution.

  • You are always wondering if it is the right time to buy or to sell.
  • You are relying on forecasts from "experts" who get it wrong most of the time.
  • You have to deal with delays from suppliers, shipping problems, cash flow problems which inevitably generates costly swaps.
  • You do not have access to simultaneous live quotations from various financial institutions when you are dealing on currencies, and have no idea if the quote offered by the bank is in line with the prevailing market at that very moment.
  • Overall, you have an unpleasant feeling sense of frustration in knowing perfectly well that your lack of knowledge is being exploited by some financial institutions.

MORE THAN 35 YEARS INTERNATIONAL SUCCESS

Why is it working?
Because it is based on solid experience and pragmatism
And because we have our priorities right!

Generally, importers/exporters believe that they only have two options:

  • Try to buy at the lowest and sell at the highest
    In order to achieve this, they try to forecast and protect themselves with stop losses.
  • Cover systematically as soon as they incur a commitment
    This is still a form of speculation as it implies that the market will move adversely during the period under consideration. If instead the market improves, then the hedger makes his business uncompetitive.

THERE IS A THIRD OPTION: AJR HEDGING SERVICES

A genuine hedger should look for safety, certainty, reliability and consistency.

  • Safety: one cannot afford a loss in relation to his benchmark.
  • Certainty: one cannot afford to leave anything to chance and a minimum result must be attained.
  • Reliability: the system used can be trusted at all times.
  • Consistency: irrespective of the various market conditions the system will attain the same objective.

The very nature of hedging is incompatible with forecasting and speculation. One has to understand and accept what genuine hedging is.


Hedging is a system allowing for the protection of financial commitments against
adverse fluctuations in the financial markets that are directly linked to these commitments.
The speculator instead wants to take advantage of these fluctuations.


In other words we are talking PROTECTION which means that the PRIORITY number one of a hedger is to AVOID A LOSS. It is the exact opposite to that of a speculator whose main objective is to make a profit.

Since the objectives are different, you cannot handle hedging as you handle speculation, it is totally incompatible.

A SPECULATOR must FORECAST the direction of the market.
Forecasting when hedging is far more complex than when speculating as one needs more parameters correct. This is impossible to achieve consistently.

Sceptical? Monitor the forecasts made by the gurus and various financial institutions and check the results, it is appalling!
We would not do better which is the reason why we do not even try as well as the reason why we rely on our system.
It is therefore extremely DANGEROUS to try and FORECAST when HEDGING, unless one is ready to afford substantial risks.

Warning!
If you want to buy at the lowest and sell at the highest stop right here:
Our service is not for you.

Instead, if your objectives are:

  • To protect your commitments against adverse fluctuations of the financial markets.
  • To benefit from the same safety as if you were systematically covered.
  • To be able to enjoy part of an improvement without any sort of speculation.

Then OUR SERVICE is THE ONLY EFFECTIVE ONE FOR YOU.

We have developed a hedging SYSTEM that MATCHES THE NEEDS, OBJECTIVES AND PRIORITIES of our clients be they either importers or exporters and therefore hedgers.

The unique system that AJR has developed provides the safety of being covered without incurring all the costs of forward cover for an importer and maximising these premiums for an exporter. As a result this allows enough flexibility to enjoy an improvement in the market, if the opportunity arises, but without speculating.

How can we achieve this without speculating?

If you want to know more, click here


MAKE YOUR HEDGING A SUCCESS

At AJR we know that it is impossible to forecast accurately, consistently and timeously, so we don't even try.
Instead we anticipate the effects of uncertainty by not exposing our clients to such a situation.

Is it safe?
The nature of the service itself has been conceived to prevent any loss, it is the first priority.

It is also not a forecast with a stop loss approach.

Another crucial element is that YOU always KEEP CONTROL OF YOUR PORTFOLIO. We propose daily detailed strategies and it is then your privilege to instruct us accordingly. This is how you keep control of your portfolio at all times.


THE SERVICE IS CUSTOMISED

We do not have a "one size fits all" approach.
The system is obviously the same for all our clients, however it is adapted to match the very specific needs of each client.
We approach the specific requirements of our clients comprehensively.

Our extremely diversified clientele has given us an in-depth knowledge of most industries with their specific conditions and needs.
In the unlikely event that your requirements are totally unique, we can assure you that we will spend the necessary time to acquire the indispensable knowledge of your specific conditions within your industry to customise our service.

Our system can only work for as long as it is adapted to the specific conditions of the client.
Each client can rely on the full dedication of the AJR Portfolio Management Team.

How do we comply with our above mentioned standards?

If you want to know more, click here

OUR REPORTING SYSTEM IS COMPLYING WITH THE HIGHEST INTERNATIONAL STANDARDS and is not only approved but encouraged by all auditing firms. It gives you, the client, the ability to monitor accurately and permanently the exact situation of your currency hedging portfolio.

Thanks to that system the client is able to appreciate that AJR Hedging Services is not an additional cost but instead A COST SAVING SYSTEM.
We at AJR are in a very privileged situation: the fees we charge are paid off many times over by the savings realised for the client it is a "win-win" situation. We are proud of our achievements.


HOW ARE WE UNIQUE?

It is an unconventional approach in relation to other options available.

Our system works and consistently so.
Others try to copy us. We do not want to copy them.


WE DO NOT HAVE A CONFLICT OF INTERESTS WITH OUR CLIENTS,
INSTEAD WE CREATE A UNITY OF PURPOSE WITH THEM


  • Established in 1975 in Paris and since 1982 in South Africa.
  • Genuine hedger no speculation, no forecasting.
  • Take great care to match the very needs of our clients. It is a customised service.
  • Attention to detail.
  • No conflict of interest: we disclose valuable tips that nobody else does.
  • The client keeps control of his portfolio at all times.
  • Technical analysis: we rely on an objective approach as it is scientifically formulated.
  • Our reporting system is unique and complies with the highest international standards.
  • AJR is completely independent - not part of a bank.
  • The system is transparent and the client can accurately assess the savings achieved.

Each client is unique.
We cannot have a brochure that could address all possibilities,
we pay attention to details and adapt our system to the specific needs of our clients.


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