No business should be hostage to rising fuel prices.
Welcome to FUELZAvings - Managing your fuel risk
Fuel hedging is a generic phrase used to describe various risk management strategies employed by fuel consumers to reduce the effect of rising fuel prices on their costs.
Fuel price risk management worldwide has been offered almost exclusively to the biggest fuel consumers by major banks via complex derivative portfolios. This has made it inaccessible to smaller consumers who do not have sufficient scale, the sophisticated administration systems nor the specialised administrative staff required for these transactions.
At Coherent Commodities, we believe that affordable, effective fuel price risk management should be accessible to everyone who is vulnerable to rising fuel prices. Fuel hedging should be democratised.
Coherent Commodities has therefore collaborated with Union Bank of Switzerland (“UBS”) to create FUELZA, an innovative investment which has been designed to demystify and simplify fuel price risk management. It is available to everyone who is at risk to rising fuel prices through your stockbroker, bank or investment platform.
Ticker: FUELZA
ISIN: ZAE000335022
How do you ZAve?
It is as easy as 1-2-3
STEP 1
Calculate your fuel spend.
Or, as Bru would say, “How much do you spend on fuel each year?”
STEP 2
Calculate your preferred hedge ratio.
Or, as Bru would say, “How much of your fuel cost do you want to protect?”
STEP 3
Buy FUELZA units.
Through your stockbroker, bank or investment platform.
Example
STEP 1
Fuel spend
Bru uses 100L of diesel per month.
100L @ R20.00 per litre
= R24 000 spent on fuel per year
STEP 2
Preferred hedge ratio
e.g. If Bru would like to protect half of his fuel cost, he will buy:
R24 000*1/2
=R12 000 FUELZA
STEP 3
FUELZA Unit
Bru would buy 119 FUELZA units.
Price on JSE e.g. 101.25 on 21/06/2024
= R12 000/101.25