Liquidity
Bridge
C2C Liquidity Account ™ International cash investment solution
About Connect2Charity Connect2Charity is committed to helping Isle of Man charities and non profit organisations promote their aims and objectives and function at their most effective. Operating through a dedicated team recognising the importance of continuous improvement, Connect2Charity demonstrates how, with passion and motivation, it is possible to take an inspirational vision, turn it into a reality, and help make a very real difference to people’s lives.
Aims & Objectives • • • • • • •
To provide a central source of information about the work of charities To raise the profile of charities and increase public awareness about their valuable work To build a strong charity community and promote it effectively and efficiently To boost potential for donations and sponsorship To encourage cooperation and affiliation between charities involved in similar charitable work To provide information and advice to help fulfil statutory obligations Connect2Charity is dedicated to social responsibility
Capital Treasury Services: Vision Capital Treasury Services exists to improve lifestyles through increased prosperity.
Values They seek to achieve this through the enduring values of innovation, integrity and excellence.
Mission Capital Treasury Services aim to be the best in their chosen field and complement the Capital International Group’s vision by creating real value. They are a dynamic, entrepreneurial and visionary subsidiary of the Capital International Group, maximising efficiency by focusing on treasury management, foreign exchange, cash management and payment solutions. They provide an exciting and interactive environment offering a professional, reliable and client driven service through the Group’s enduring values of innovation, integrity and excellence.
Liquidity is the availability of cash or the capacity to obtain it on demand
Introduction During any period of relentless turbulence in global financial markets, it is worth reminding ourselves of the real and perhaps less obvious benefits that through our investment partner, Capital Treasury Services Limited, and the C2C Liquidity Account brings to hard pressed cash managers and investors. The C2C Liquidity Account is an international cash investment solution managed by Capital Treasury Services Limited, available in Sterling, US Dollars and Euros and tracks the UK Base Rate, US Federal Funds Rate and European Central Bank Rate respectively, ensuring your money and your client’s money is always earning a market leading rate. Additional features of the C2C Liquidity Account include: Security
• AAAf rated by Standard & Poor’s • Instant Diversification
Liquidity
• Pro-active liquidity management • Late dealing times with two day settlement
Yield
• Stable/consistent returns - institutional purchasing power/ access to markets • Highly competitive track record
Convenience • Outsourcing cash management • Focus on client service • Frees up time for higher value-added activities The C2C Liquidity Account is a unique cash-only management service delivering the diversification, protection and liquidity of a money market fund, with the yield and consistency of a high interest cash deposit.
Currency Options As previously mentioned the C2C Liquidity Account is available in three main currencies, Pounds Sterling, Euros and US Dollars; other currencies are available on request.
Minimum Investment The minimum initial investment is £50,000, $100,000 or €100,000 respectively.
NOTE: The C2C Liquidity Account has been branded for Connect2Charity and is not a direct investment product but is managed by Capital Treasury Services on behalf of Capital International Limited.
C2C Liquidity Account International cash investment solution
The Structure The C2C Liquidity Account is not a bank account, so you are not lending money to Connect2Charity, Capital Treasury Services or any company within the Capital International Group; as a result any cash investments are not exposed to us, Capital Treasury Services or any other company within the Capital International Group in any way. The cash investments are placed into a ring-fenced custody account to which a high rate of interest is applied on a monthly basis.
The key benefits • Immediate on-line access to a cash management product • Sterling, Euro and US Dollar portfolios have been awarded the Standard & Poor’s AAAf/S1+ rating for the sixth consecutive year • Online access to your C2C Liquidity Account position including statements, transactions and overall investment position
Features • Minimise costs and generate competitive yields on surplus funds with on-line control of your investments • Save time and effort monitoring and managing your cash holdings • Make transfers easily between C2C Liquidity Account and your designated accounts • Online access with rolling twelve month historic statements and balance reports, plus the option to export data • Two-day access to the C2C Liquidity Account
C2C Liquidity Account minimises costs and generates competitive yields on surplus funds C2C Liquidity Account International cash investment solution
Liquidity strategy is to maintain asset quality and diversity of the portfolio
Asset Allocation The asset allocation strategy is to invest in high quality bank and building society deposit accounts which have been rated A to AAA, A1+ or A1 by Standard & Poor’s rating agency. The strategy is to maintain asset quality and diversity of the portfolio in accordance with Capital Treasury Services’ asset quality guidelines. • Income Potential - Low to Medium* • Volatility / Risk Level - Very Low • Investment Time Frame - No minimum Cash is seen as an important asset class by Capital Treasury Services and as such the C2C Liquidity Account has a diversified pool of cash deposits with different banks and building societies. Diversification reduces the level of risk on a portfolio - it does not necessarily reduce the returns, this is why diversification is referred to as the only free lunch in finance.
Risk Exposure In order to generate the high yields payable to C2C Liquidity Account holders, the underlying treasury pool is managed by Capital Treasury Services utilising a diversified range of high quality bank and building society deposits. • They manage Credit Risk through a list of approved banks and building societies. Every issuer on the list is monitored on an ongoing basis by their experienced team. • They manage Liquidity Risk by limiting the C2C Liquidity Account’s underlying cash assets weighted average final maturity and adjusting those cash assets to better match the C2C Liquidity Account investment profile. • They manage Interest Rate Risk by monitoring the forward yield curve and limiting the C2C Liquidity Account’s weighted average maturity.
* This is subject to change due to changes in base rates
C2C Liquidity Account International cash investment solution
Interest Rates Capital Treasury Services sets the interest rates applicable on behalf of the C2C Liquidity Account daily, which are publicly available on request. While they reserve the right to vary the basis on which interest rates are set at their discretion; rates will target the following scale:
Investment Amounts £50,000
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$100,000
Target Yield €100,000+
Base +10bp
1
While the C2C Liquidity Account is designed for amounts of £50k or greater, they may facilitate smaller amounts at their discretion.
The C2C Liquidity Account service is based in the Isle of Man and as such interest is paid gross to all C2C Liquidity Account investors.
Two Day Liquidity A unique feature of the C2C Liquidity Account is that it offers institutional fixed-term rates of interest coupled with two day liquidity, meaning you have easier access to your investment capital at any stage. Account holders can withdraw their money at any time and Capital Treasury Services will make the transfer within two business days of receiving your instruction. Although there is no penalty or loss of interest incurred on withdrawal, there may be transfer fees to take into account.
Account Structure Capital Treasury Services Limited manages the C2C Liquidity Account on behalf of Capital International Limited. Client monies in the C2C Liquidity Account are held within a ring-fenced custody account with Capital International (Nominees) Limited. Capital Treasury Services Limited, Capital International Limited and Capital International (Nominees) Limited are all members of the Capital International Group. No investments are made directly on, or for, any C2C Liquidity Account and C2C Liquidity Account holders can access the monies deposited within two working days notice. Capital Treasury Services Limited pays a high level of interest on each C2C Liquidity Account, calculated daily and paid monthly in arrears.
Term Investments We all want our money to earn interest when we’re not using it, but we all have different needs. You may not want to see your investments tied up for a long period of time, yet you still want to earn a competitive rate of interest. At Capital Treasury Services, they have developed a range of solutions that are designed to meet your requirements - the two principal options available are:
Investment Investment
Fixed Term Investments They agree the interest rate with you, in advance, and this rate is fixed for the whole period of the investment.
Call Accounts The interest rate is not fixed, but neither is the investment period, you receive interest at a rate that is linked to the money markets. Please note that from time to time, where interest rates in a country are particularly low, they may be unable to pay interest on accounts in the currency of that country. These strategies involve implementing pre-agreed investment parameters and executing market trades on your behalf. It is a multi-currency service through which cash movements are monitored and investments placed in a variety of cash instruments where the aim is to achieve an enhanced return, subject to maintaining a pre-agreed operating balance. Although these investments can utilise the same underlying assets they are not afforded the same Standard & Poor’s rating as holding Sterling, Euros or US Dollars within the C2C Liquidity Account.
C2C Liquidity Account International cash investment solution
Reporting Every C2C Liquidity Account holder has full on-line viewing access to their account and the latest interest rates available, all via our investment manager’s website at www.capital-cts.com. Additionally, account holders will receive monthly statements on their account, together with a review of the interest rate performance, in comparison to the market.
Standard & Poor’s Rating Over the last six consecutive years Standard & Poor’s Ratings Services have assigned its AAAf1 fund credit quality rating and S1+2 volatility rating to the Capital Liquidity Managed Accounts, the underlying portfolios of the C2C Liquidity Account: •
Capital Liquidity Managed Account - GBP
•
Capital Liquidity Managed Account - USD
•
Capital Liquidity Managed Account - EUR
These managed accounts form the underlying pool of assets supporting the individual liquidity accounts managed by Capital Treasury Services which form the C2C Liquidity Accounts. In addition to the client account reporting, Capital Treasury Services also send out on a monthly basis the Standard & Poor’s analyst reports - these are also available for download from www.capital-cts.com.
1
The ‘AAAf’ ratings assigned signify the extremely strong protection the three underlying portfolios of assets provide against losses from credit defaults.
2
The ‘S1+’ volatility ratings recognise that the three underlying portfolios of assets will demonstrate extremely low sensitivity to changing market conditions.
Client Care Capital Treasury Services take client care very seriously. They are proud to have some major international corporations as their key clients and understand that client satisfaction is essential to their success. They have a comprehensive Client Care Programme to ensure they are delivering to you the best service possible. Below is a summary of what it includes:
Communication They listen, ask questions and challenge clients so they can understand their business, enabling them to develop pragmatic and intelligent solutions. They build collaborative relationships with their clients to deliver sustainable and innovative solutions to their business issues.
Advocacy By understanding our clients’ business issues and needs, we are able to act in their best interests whenever we deal with regulatory agencies or other third parties. We involve our clients in our processes, we ask for their opinion and we deliver the solution according to their requirements.
Responsiveness Once they have delivered a project, they follow up to make sure the client is completely satisfied that they have provided them their best throughout the project. They maintain flexibility to fit with their clients’ resourcing requirements.
Excellence Capital Treasury Services focus on delivering the best result at a realistic price that reflects the value they have delivered to their clients. They offer a significantly diverse range of services meaning that they can offer their clients a complete solution to all their environmental and sustainability challenges.
Fees & Charges There is no management or administration charge for this service. The quoted rates of interest will be paid to C2C Liquidity Account investors without any deductions. There are no charges for transferring amounts into any C2C Liquidity Account. C2C Liquidity Account holders may request a withdrawal at any time which are subject to a nominal charge to cover associated correspondent bank fees. For further details please refer to Capital Treasury Services’ Standard Withdrawal Fees rate sheet - available on request. For regular and/or frequent small transfers please speak to Capital Treasury Services about their on-line payment service, Bridge: Internet Payment & Cash Management.
C2C Liquidity Account International cash investment solution
Foreign Exchange Service Overview Foreign Exchange is a part of the Capital Treasury Services core service offering, with lines into institutional market makers and liquidity providers, both in the Isle of Man and London. They transact foreign exchange deals on behalf of other financial institutions as well as large corporate entities that range from small Island-based corporate service providers to listed FTSE100 companies. They go to them because they are able to provide them with more competitive pricing structures than they receive from their existing banking relationships and treasury service providers.
Exchange Exchange
Analysis Capital Treasury Services provide accurate and proactive analysis of where exchange rates are heading and why. In addition, they also offer bespoke research for clients on their individual currency requirements.
Proactivity There are two ways in which an information flow may reach you, proactively or reactively. Typically, many of the larger financial institutions, mainly because of their size, fall into the latter category. However, Capital Treasury Services prides itself in being the former. A good example of this is that a bank will rarely concern itself with your foreign currency requirements until such time as you pick up the phone, and at this point the client is quoted a single-sourced static price; Capital Treasury Services however constantly reviews the market, searching for the best rates available and will strive to better them where they can.
Tailored Service Capital Treasury Services is constantly seeking to provide an exemplary service to its clients, whether to businesses or individuals, that fits their needs. Some clients may only place one transaction with our foreign exchange service, for instance when buying a property abroad, and may need more assistance on a deal-by-deal basis to understand the complexities of the Foreign Exchange markets.
Internet Payment & Cash Management Giving you control over your cash flow, around the world – we offer a variety of secure services to help improve the way companies manage funds and make payments, whilst maintaining their records and importing data directly into the company’s own accounting system. In today’s global economy, organisations need to be financially agile and responsive – wherever their business takes them. Bridge - Capital Treasury Services’ Internet Payment & Cash Management service helps make this possible. Bridge enables these companies to access and control cash quickly and efficiently around the world. Their specialist team works closely with them to develop a secure, cost-effective solution for their overseas investment and payment needs.
The key benefits •• View balances and transactions or issue payment instructions on Capital Treasury Services accounts •• Cut transaction costs by using a single point of access to local clearing systems in overseas markets where companies operate •• Speed up invoice receipts by enabling overseas customers to pay direct into company accounts through their local bank
Bridge Bridge
Features •• Upload balance and transaction information directly into accounting systems – reducing delays and costly mistakes caused by re-keying data •• Consolidate bank balances to optimise return •• Help improve overall cash positions using the most up-to-date account information •• Help free up administrative processes so that companies can concentrate on growing their international business
NOTE: Any sums received do not constitute a deposit as defined in Regulated Activities Order 2011, as amended and are not covered by any compensation scheme.
C2C Liquidity Account International cash investment solution
How To Get Started To start investing into the C2C Liquidity Account with Capital Treasury Services you will need to open an account first. The application process is divided into two forms, one for Client Due Diligence and the second in relation to the C2C Liquidity Account - once we have received and Capital Treasury Services has processed both forms you will be assigned an account number. Please ensure that you have read and understood both the Terms of Business as well as this brochure before opening a C2C Liquidity Account with Capital Treasury Services.
Investor Protection Neither Capital Treasury Services or other members of the Capital International Group are banks and do not offer banking services, so unlike a bank account investors are not lending money to us or the Group and as a result their money is not exposed to the Company’s or Group’s balance sheets or underlying business in any way. Consequently, client monies are fully protected at all times as they are held in segregated client bank accounts within a ring-fenced nominee custody account. No investments or transactions are made on your account (other than transfers instructed by you and interest paid by Capital Treasury Services or the Capital International Group of companies) and hence any investments made on behalf of your Capital Treasury Services Account are not subject to any specific investment, market or transactional risk. As a result, monies invested into a Capital Treasury Services Account enjoy a very high level of security. In relation to Payment Services any sums received do not constitute a deposit as defined in Regulated Activities Order 2011, as amended and are not covered by any compensation scheme.
Further Information For more information go on-line to Capital Treasury Services’ web portal at www.capital-cts.com or alternatively contact us at the details below: E-mail: info@capital-cts.com Telephone: +44 (0) 1624 654299 In writing: Capital Treasury Services Limited Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG
C2C Liquidity Account International cash investment solution
www.capital-cts.com T : +44 (0) 1624 654299 F: +44 (0) 1624 654291 E: info@capital-cts.com Capital International Limited is a member of the London Stock Exchange Capital Treasury Services Limited and Capital International Limited are members of the Capital International Group Capital Treasury Services Limited and Capital International Limited are licensed by the Isle of Man Financial Supervision Commission Registered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG
Winner 2010 Company of the Year
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C2C - CLA Brochure - V1.02-03.13
Capital Treasury Services Limited Capital House Circular Road Douglas Isle of Man IM1 1AG