First Equity Limited (FEL)

Managed Accounts FX Business Model

Member of the London Stock Exchange and Member of the PLUS Market
-Authorised and Regulated by the Financial Services Authority

Sept 2010
 The Company and the new service
offered

 First Equity Limited (FEL) is a Stockbrokers offering services in

Discretionary, Advisory and Execution Only share trading to
retail, High Net Worth and Institutional Clients. FEL also offers
an intermediary trading service to other brokers and
Institutions. Founded in May 1986 and based in the City of
London at Salisbury House, London Wall, London EC2M 5QQ.

 First Equity Limited is offering a new Managed Accounts

Foreign Exchange Service to Institutional / Corporate and High
Net Worth Clients, that was launched on 6th September 2010.
 Overview

• First Equity Limited has received authorisation from the FSA to manage FX accounts
on a discretionary basis for professional clients.

• Trading was launched on 6th September 2010.

• Current trading returns as at 30h Sept 2010 is 1.75%

Projected annual returns based on present results = 21.00% per annum.

• Clients will require a minimum of £50,000, $75,000 or EUR 60,000 to invest.

• The target clients that FEL’s FX Team will approach will be professional clients
with High Net Worth, plus Corporate and Institutional.
 FEL’s FX Team
 Aidan Bishop, (40) FX Trader. Aidan has a number of years of experience in trading FX as well as trading other asset classes. The majority of his trading has been done on behalf of high net worth and institutional south-east Asian clients. In 2008, he achieved a 30% return for a South Korean currency trading fund which was an outstanding
achievement considering that it was one of the most turbulent years in market history.

 Herb Filmer, FCSI (61), FX Sales & Finance. Herb has 44 years experience in the Financial Services Industry within the City of London, having established his own settlement and clearing business which was bought out by Penson Financial Services of Dallas, where he was a director. Herb has unrivalled experience in international clearing,
settlements, custody, deposits and foreign exchange trading and settlements and has dealt in over 40 international markets.

 Patrick McCafferty MCSI (54), FX Sales & Trading Risk Management and Administration. Pat has gained 37 years experience in the Financial Service Industry at various Stockbrokers and Banks within the City and West End. Pat helped establish Worldwide Settlements where he was International Settlements Director responsible for settlement in 43
international and UK markets. Pat has considerable experience in foreign exchange trading and settlements, International clearing, custody and settlements.
Risk: Money Management Strategy

• FEL’s FX Teams approach to risk is based on:

• Position sizing

• Volatility based stop losses; and

• Conservative use of Leverage (on average we expect to use on

average 5 times leverage in order to maximise profitability)
 Key Features
• All FX trading with be transacted via London Capital Group Plc (LCG), a London Stock Exchange listed
brokerage house that is regulated by the Financial Services Authority (FSA). LCG has a prime
brokerage relationship with JP Morgan where the First Equity FX account is held on behalf of their
clients. FEL clients have access to their account on real time basis 24/7.
• FEL’s FX Team run a low risk percentage on any given day by only trading the 4 major currency pairs
against the US Dollar.( EUR, GBP, CHF and JPY).

• Conservative use of leverage to protect client funds whilst maximising profitability.

• FEL’s simple objective: to maximize capital growth whilst managing risks.

• Target returns: Above current Equity returns, up to double digit %

per annum
• Management Fee: 0%
• Performance Fee: 30% of profits (applied on a monthly basis)
• Minimum Investment: £50,000, $75,000 or EUR60,000 per client
• Clients can withdraw funds at anytime upon request
 Trading Strategy

• Hybrid strategy based upon the following:

• Market fundamentals (e.g. Economic data, sentiment) using

technically based entry and exit signals, i.e. technical analysis.
 Summary & Conclusion
• First Equity’s FX Managed Accounts offer a client an opportunity to diversify their portfolio and to experience
above current Equity returns and up to double digit returns per annum.
 
• Current trading returns as at 30 th Sept 2010 is 1.75%.

• Projected annual trading returns based on present results = 21.00%.

• No notice period for clients to withdraw their funds, and there is No management fees charged to clients.
 

• Performance Fee of 30% of profits ( applied on a monthly basis).

• In First Equity’s research it was found that some Discretionary FX funds charge performance fees up to 40%
with a 2% management fee to clients per month.
 
 
 FEL’s FX Team Contacts

Herb Filmer Pat McCafferty

herb.filmer@firstequity.ltd.uk pat.mccafferty@firstequity.ltd.uk

Mob: +44 (0)7980 973 087 Mob: +44 (0)7980 973 023

Aidan Bishop
aidan.bishop@firstequity.ltd.uk
Mob: +44 (0)7982 998 098