New Zealand fund management firm Armstrong Jones Ltd. plans to solicit its trustees for approval to use over-the-counter equity derivatives on New Zealand stocks. Amanda Smith, senior investment manager in Auckland, declined to put a timeframe on the move, but said the firm is interested in using equity options for leverage.
Armstrong Jones, which has NZD5 billion (USD2.07 billion) in funds under management, invests in equities throughout the region, as well as bonds and properties. The firm uses interest-rate and fx derivatives for hedging off-shore positions and has used exchange-traded equity derivatives before but may consider OTC market to as an alternative, added a fund manager, declining to elaborate.
For trading equities the fund manager deals primarily with Merrill Lynch and UBS Warburg, said Smith.
