A ten month managed pool that aims to outperform the average cash harvest price
A ten month pool with the aim to outperform the average harvest cash price, whilst providing exposure to post harvest volatility in local and global markets.
Sales methods used can include, but are not limited to, the use of futures, options, overthe counter (OTC) derivatives to manage commodity and foreign exchange risk.Whilst using forward sales, track sales, delivered sales, stock swaps, commodity swaps and port zone arbitraging to maximise the pool return.
This pool will trade until the end of August, with the final distribution on or before the 25th of September.
FlexiTen is a non-restrictive mandated pool, designed to capture premiums when they present themselves. If marketing opportunities arise to protect basis and to reduce pool costs, Flexi Grain may consider protecting price through forward sales. Derivatives such as futures and options can also be used to manage risk. Pre-harvest sales can take place (demonstrated in the below chart) when the pool manager sees it as optimal price risk management.
Counterparties will be ranked in terms of credit risk, with credit insurance taken out on counterparties failing to meet Tier 1 classification.
Grower Payments & Finance
FlexiTen offers growers a 60% advance of the Estimated Pool Return on the 10th or 25th of the month, post title transfer. An 80% distribution will take place on or before the 25th of June, with 100% of the remaining equity distributed on or before the 25th of September.
Flexi Grain’s management fee is $7.50/MT (ex GST) and this will be deducted from the first pool distribution / advance. Additional Pool management costs may include, but are not limited to, yield estimates, grain receival, transport, transfer, storage and insurance, counter party risk insurance, special risk and inventory insurance, outturn, handling, grading, shrink, service fees, brokerage, finance, interest, royalties and statutory levies.
Final Pool Return
The final pool return will be calculated and communicated on a Port Basis or Free in Store net of all costs. Site & time of entry indexing will be applied if applicable.
Flexi Grain will provide updates keeping their clients informed of:
- Current strategy
- Market Drivers and updates
- Estimated Pool Return
- Equity Statements