CIG - Integrated Solution

Integrated Cash SolutionsCash Management | Transaction | Currency

CapitalInternational Group

Our VisionThe Capital International Group exists to improve lifestyles through increased prosperity.

Our ValuesWe seek to achieve this through the enduring values of innovation, integrity and excellence.

Our MissionAt Capital Treasury Services they 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.


The three core areas of treasury services - cash management, transaction & currency

Innovation Integrity Excellence

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ContentsSection Description Page

1 Executive Summary 3

2 Capital International Group 4Group | Background 4

Independence 4

Capital Treasury Services | Background 5

Making the Difference 5

3 Integrated Cash Solution 7e-Business | Innovation 7

4 Online Payment Solution 8Bridge 8

Security | Yield | Liquidity 9

Bridge | Features & Benefits 10

Addressing the Present | Securing the Future 11

Payments that Power Business 12

SWIFT 12

Payment Types 13

5 Cash Management 14Capital Liquidity Account 14

Security | Liquidity | Yield 15

Capital Liquidty Account | Features & Benefits 16

Asset Allocation 19

Risk Exposure 19

Interest Rates 20

Two Day Liquidity 20

Account Structure 21

Term Investments 21

Standard & Poor’s Rating Agency 22

Ratings | Credit Quality | Volatility 22

6 Foreign Exchange 24Service Overview 24

Delivering Quality 25

Priceless Service 26

Keep in Control 27

Mitigating Risk 28

Foreign Exchange Tools 29

7 Customer Focused 30Reporting 30

Fees & Charges 30

Client Care 31

8 In Summary 32


Liquidity strategy is to maintain asset quality and diversity of the portfolio

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From the Managing Director | Capital Treasury Services

Against the backdrop of the worst financial crisis in living memory, and competing in a

space where some traditional money market cash funds have ‘broken the buck’ and banks

downgraded or worse, the Capital International Group and principally Capital Treasury Services

Limited, a founding member of the Group, has clearly stood the ‘test of time’.

We believe that Capital Treasury Services offers businesses around the world a unique

opportunity to benefit from an improved and continuously monitored combination of security

and competitive rates of interest on any residual or operational cash balances.

Our products and services are designed to alleviate any administrative burden; we undertake

all the necessary asset research to ensure you carry on receiving a competitive rate in low risk

institutions. We open and close all the underlying accounts as appropriate and undertake all of

the interaction with the institutions on behalf of our client’s investments.

As part of our cash management services, we continually monitor the institutions we use, to

ensure the security of our clients cash at all times.

Executive Summary

Cash management is a core activity for Capital Treasury Services - our comprehensive range of

pooled and designated cash management services offer investors a flexible and secure range

of solutions designed to maximise returns from their short to medium term assets. At Capital

Treasury Services we offer an attractive combination of traditional cash management expertise

and a broad and innovative product range.

With any cash management service, it is vitally important that clients enjoy peace of mind and

confidence in the way their investment affairs are being managed. We are confident, that the

Capital International Group, through Capital Treasury Services can provide this and that our

cash management services will fully address any cash investment requirements.

John E Cookson MIoDManaging DirectorCapital Treasury Services Limited

Telephone: +44 (0) 1624 654294Mobile: +44 (0) 7624 407558

Web: www.capital-cts.comE-mail: [email protected]

committeddedicatedtrustedBridge

Bridge

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Independence

The Isle of Man Government and its

divisions are seeking to use local,

qualified and licenced investment service

providers, that are truly independent and

flexible to operate globally across all

industries and sectors.

Locally GlobalCapital Treasury Services is licenced and

regulated by the Isle of Man Financial

Supervision Commission; wholly owned

by the Capital International Group based

in Douglas on the Isle of Man. With no

distant head office imposing out operating

guidelines or strict investment procedures

means that the Group and its underlying

companies avoids irrelevance in alternative

jurisdictions and has become more versatile

in the global arena.

The Group has a long history within the Isle

of Man’s finance sector and has enjoyed a

close working relationship with the Isle of

Man Government and its divisions for over

seventeen years.

We take pride in our Manx heritage, whilst

not losing this focus, we are equally happy

providing financial services to the global

marketplace as well as to local people,

businesses, institutions and the Isle of

Man Government.

Capital International GroupGroup | Background

The Capital International Group operates from the Isle of Man and specialises in the provision

of investment related financial services, including trading and stockbroking, custody and

administration, cash and investment management and investment structuring. In addition,

the Group delivers a number of business support services including property and facilities

management and various outsourcing solutions.

Our origins date from 1996 when Capital International Limited was founded to provide custody,

nominee and stockbroking services, later followed by Capital Treasury Services in 2007 and

the other companies. Capital International Limited is a Member of the London Stock Exchange

and is licensed by the Isle of Man Financial Supervision Commission. Today, the Group offers

an integrated range of financial services now has in excess of $4.0 billion of client assets under

management or administration.

The Group has been built on its Core Values

of Innovation, Integrity and Excellence

to deliver the highest quality of customer

service. We work closely with financial

institutions such as life assurers, pension

schemes, fiduciaries, fund & wealth

managers, collective investment schemes,

regulated financial intermediaries and other

professionals. We pride ourselves on our

close working relationships with clients and

our ability to deliver customised solutions.

As those relationships develop, clients use a

greater variety of services from the Group as

we become a trusted partner in delivering a

universal solution.

In 2010 the Group relocated from two

separate offices to new headquarters in

Douglas on the Isle of Man. Capital House is

the Group’s sole office location and comprises

over 20,000 square feet on four floors. Prior

to occupation, Capital House was completely

redeveloped, internally and externally, to

provide high quality open plan offices and

a virtual infrastructure for IT services. The

Group now operates a full virtual server

and virtual desktop systems architecture,

providing unrivalled capability and system

integrity and the ability to operate remotely.

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Making the Difference

In a demanding international marketplace

they have established a reputation for a

unique and distinctive approach to business.

They believe that a number of key factors

differentiate Capital Treasury Services from

other providers of similar services.

In-House CapabilityTheir in-house teams of professionally

qualified treasury practitioners enable them

to provide clients with an exceptionally

high quality and comprehensive service. In

particular, it gives them the ability to handle

larger and more complex products, structures

and projects swiftly and with assurance.

Innovative ApproachOur in-depth knowledge, across the Group,

of the market and close relationships with

a number of high calibre intermediaries,

enables Capital Treasury Services to

keep abreast of developments in treasury,

investments and cash management. This, in

turn, enables them to administer or manage

existing structures using current best practice

while offering and implementing new and

innovative products and services.

Commitment to High QualityWe are all extremely commited to meeting

our clients’ needs and exceeding their

expectations. All clients deal directly with a

relationship manager, supported by a team

of administrators, all of whom are committed

to ensuring every client receives a timely,

efficient and personal service.

Capital Tresury Services | Background

Capital Treasury Services Limited, one of the leading providers of treasury services on the Isle

of Man, proudly celebrates seven years of successful portfolio and cash management. During

this time they have continued to be one of 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 Group, maximising efficiency by focusing on Treasury

Management, Foreign Exchange, Cash Management and Payment Solutions.

More than just another treasury services

company; Capital Treasury Services

distinguish themselves from the competition

by understanding our customers’ needs

and adapting their business around them.

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. They believe that their

success will always be based upon the skill,

professionalism and commitment of everyone

within the Group.

The principal role of Capital Treasury

Services is to offer corporate, trusts and high

net worth individuals the ability to achieve

significantly better foreign exchange and

money market rates than our peers and

couple this with exceptional service. They

achieve this by growing and managing their

large existing client base as well as acquiring

and developing new client relationships.

They take pride in successfully delivering a

relationship and solution based service to

their clients. The exceptional service their

existing and potential new clients receive is

simply based on the talented and experienced

individuals that work within the Capital

International Group at all levels.

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The Group ethos is that everyone has an important and influential role to play


Innovation and product development within the Group doesn’t stand still for long

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e-Business | Innovation

Although you may need a bank account at some point in your life, do you really need one all

the time for everything you do? We know that banking culture is changing; even the building

societies have started thinking along these lines.

We will never truly be able to do away with banks, but, there are alternatives for a majority of

the activities that relate to banking. Moreover, as banks and their corresponding jurisdictions

continue to be downgraded, with some having a low or even unrated status, it needs to be

stressed that the opportunities are growing in the financial services for a more joined up solution

to just holding or transacting cash.

Integrated Cash Solution

Innovation is crucial in remaining competitive; one notable solution is the integration products

and services to facilitate efficient and dynamic cash management; offering automated rolling

of uninvested cash, discretionary and fixed term investments as well as foreign exchange as

part of their promise to maintain liquidity and make cash work more effectively. With asset

diversification lworking to minimise market/counterparty risk and maintain a high level credit

quality and low volatility. By ring-fencing client assets in a nominee account provides an extra

level of asset security and keeps exposure away from any balance sheets.

Capital Treasury Services, part of the Capital International Group, has developed an integrated

solution that not only combines its flagship cash investment account with their online payment

solution, but they have created a single-source online solution that offers their full range of

treasury services.

The Capital Liquidity Account and Bridge have, since they were introduced, been an integral

part of our treasury services offering. However, by combining them along with the Foreign

Exchange capabilities within the company now means that a single client has the flexibility and

choice of all the treasury tools and products from the outset.

Bridge now becomes more than just a payment service, but the facilitator of transactional

activity into, out of and around the Capital Liquidity Account. Creating a unified solution with

card services being integral, now ensures that cash movements between the Capital Liquidity

Account and the loading and unloading of any pre-paid cards are more efficient and traceable.

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Bridge

Originally, Bridge was developed as a flexible, cost effective online

solution to streamline the payment and receivable processes. Bridge

allowed businesses to process regular payments more quickly, easily

and economically. However, as a member of SWIFT and with high levels

of built-in security, our payments solution now supports the full range of

payment types including BACS, CHAPS, SEPA and other international

payment types.

Now more than ever, efficient and cost-effective global transactional services play an important role in any business

The ability to make and receive payments from anywhere in the world and monitor multiple

accounts with different banks and financial institutions from a single source is critical in this

digital age. Time management and staff efficiencies come down to streamlining administrative

tasks and centralising business processes, in turn this has enables businesses to save time and

money – giving those same companies more opportunities to focus on their key business areas.

Online Payment Solution

The aptly named Bridge allows Capital Liquidity Account holders to manage their funds

online. At the heart of the system is a facility providing client’s access to domestic payment

mechanisms in foreign jurisdictions, thereby eliminating the need for third-party clearing house

intervention. Designed to complement the existing suite of treasury solutions and being solely

internet-based, this new offering bridges the gap between cash-based investment accounts

and the requirement to pay balances away, anywhere in the world, quickly, cost-effectively

and efficiently.

Straight through processing has come on leaps and bounds, now no longer confined to large

mulit-jurisdictional institutions – with the introduction of liquidity accounts, SWIFT and Bridge, all

acting as a single conduit, Capital Treasury Services is now able to offer a global solution, fully

integrating its own treasury solutions with that of a global service provider through which the

financial world conducts its business operations with speed, certainty and confidence.

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.

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Solutions in Payments Bridge doesn’t just bridge the payment services gap, bringing global transactions to

everyone on a domestic playing field, but it now levels that playing field with its active data

and messaging conduit.

Bridge offers you a simple, convenient and cost-effective way to make regular and receive

payments via the Internet. The service’s dynamic and intuitive interface guides you through

the payment creation process, enabling you to submit Straight-Through-Processing (STP)

payments that will require no intervention by us. These are charged at a reduced cost when

compared to the standard tariff for non-STP transactions.

You are able to access Bridge from anywhere in the world via the internet on a PC or tablet, and even on a mobile phone…

Clients no longer become reliant on systems of individual banks and building societies – Bridge

can facilitate the same ‘view access’ clients have of their existing accounts as well as being able

to make and receive payments to and from the Capital Liquidity Account via Bridge. From this

central reserve account clients are also able to access all the products and services offered by

Capital treasury Services from Foreign Exchange to Card Services.

Bridge provides business-critical information which remains secure, accessible and usable at

all times. As a bridged-business you no longer have to focus on minimising and avoiding the

risks associated with inadequate protection of business critical information.

Providing tools that will effectively and efficiently manage your cash on a day-to-day basis

Online ToolsWhether you just want access to your Capital

Liquidity Account and make a payment or you

want to be able to view all your bank accounts.

Bridge provides a single point of access – thus

doing away with the need for card readers and

dedicated computer hardware.

Conduit ServicesThis is the new concept of using Bridge to view

other bank accounts and, at some point, the

ability to apply transactions via Bridge to and

from those other accounts via SWIFT.

Bridge LinksThis is the data support from Bridge into other

Accounting/TMS/AP/AR systems which can

be imported directly into these systems for

reconciliation purposes.

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Features Benefits

Online, integrated system acting as a single point of access

View balances and transactions, track incoming or issue payment instructions from your Capital Treasury Services accounts from anywhere in the world

Provides tools that effectively and efficiently help manage cash on a day-to-day basis

Clients do not need to become reliant on the systems of individual banks

Additionally, flexibility offered by Bridge provides reassurance in times of contingency

Immediate access online Provides greater convenience and flexibility

Up-to-date, live, account information Helps improve your view on your overall cash positions in multiple currencies

Provides business-critical information on cash holdings

Electronic payment status updates Ideal for faster payment confirmation, and vital for tracking important payments

Segregated cash holdings through Bridge from any operational or balance sheet exposure

Security of cash assets

Regularly updated application software, centrally maintained away from client servers

Gives you the latest technology with no ownership costs, maintenance requirements or upgrade concerns

Your administrator controls system access levels according to function, with permissions and security settings specified by you

Increased internal security and greater control over your incoming and outgoing payment processing

Upload balance and transaction information directly into your accounting systems

Reduces delays and potential human errors caused by re-keying data and allows consolidation of bank balances

Straight Through Processing (STP) achieved by the use of payment validation and payment routing tools

Increases efficiency and reduces costs

Facility to search for or validate BIC and IBAN details

Assists with payment routing

Faster incoming and outgoing payment confirmation

Free up your team to concentrate on growing your international business

A single point of access to local clearing systems in the overseas markets where you operate

Cuts transaction costs

Intuitive, dynamic interface Will notify users of data entry errors before allowing payment instructions to be submitted

Overseas customers can pay directly into your account through their local bank

Speeds up invoice receipts

Bridge | Features & Benefits

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Addressing the Present | Securing the Future

Bridge makes maximum use of current technology, but nothing ever stands still. Our customers

are able to focus on their business secure in the knowledge that our commitment and that of our

developers to research and development means that they have a software solution not just for

today but also the future.

Our modern payment software reflects the diversity of our customer base and is available in

a range of configurations to suit the needs of customers of all sizes. This platform has many

in-built features that specifically address the needs of the corporate customer. For example

with payments the customer can define data entry levels such that individuals can only ‘sign’

payments up to their pre-set data entry level. It is also possible for them to define multi-stage

authorisation such that all payments have to be approved by one, or more, members of staff

before being submitted for action.

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Payments that Power Business

We facilitate online transactions, we give clients a fast, reliable way to pay and offer

businesses a cost-effective method of sending funds worldwide. Our solution remove the

obstacles that make sending and receiving money slow, tedious and expensive, so payments

can power your business.

Bridge can also be configured to work with any legacy system, thereby enabling any

financial institution to offer internet services to their customers with minimal disruption to

their existing infrastructure.

SWIFTSWIFT is a member-owned co-operative through which the financial world

conducts its business operations with speed, certainty and confidence.

More than 10,000 financial institutions and corporations in 212 countries

trust them every day to exchange millions of standardised financial

messages. This activity involves the secure exchange of proprietary data

while ensuring its confidentiality and integrity.

Their role is two-fold. They provide the

proprietary communications platform, products

and services that allow our customers to

connect and exchange financial information

securely and reliably. They also act as the

catalyst that brings the financial community

together to work collaboratively to shape

market practice, define standards and consider

solutions to issues of mutual interest.

A key point of interest is that SWIFT does not

hold funds nor does it manage accounts on

behalf of customers, nor does it store financial

information on an on-going basis.

SWIFT enables its customers to automate and standardise financial transactions, thereby

lowering costs, reducing operational risk and eliminating inefficiencies from their operations. By

using SWIFT customers can also create new business opportunities and revenue streams.

SWIFT has its headquarters in Belgium and has offices in the world’s major financial centres

and developing markets. SWIFT provides additional products and associated services

through Arkelis NV, a wholly owned subsidiary of SWIFT, the assets of which were acquired

from SunGard in 2010.

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Payment Types

DomesticFaster Payment For transactions less than £100,000

Same-day transfer

Cheaper alternative to CHAPS

BACSBankers Automated Clearing Services

For Sterling payments within the UK with three-day value

Accounts are debited only on the day the credit arrives at the destination account, giving you use of funds until the last possible moment

Ability to make individual payments or grouped payments such as payroll or supplier payments

CHAPS Clearing House Automated Payments System

For same-day Sterling payments within the UK

Faster payment mechanism than BACS

No maximum transfer amount for same-day Sterling payments within the UK

Internal Transfers For payments or transfers within the Capital International Group of companies in Sterling

The remitter and beneficiary of the payment must hold an account within the Capital International Group of companies

Non-Domestic

SWIFT For currency or Sterling payments abroad and currency payments within the UK

Paid in one to three days

EURO SEPA For EURO payments effected by EURO Domestic Payment

Typically paid same day but may take up to three days

Cheaper alternative to SWIFT

Internal Transfers For payments or transfers within the Capital International Group of companies in Sterling or foreign currency

The remitter and beneficiary of the payment must hold an account within the Capital International Group of companies

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Capital Liquidity Account The Capital Liquidity Account is an international cash investment solution

managed by Capital Treasury Services Limited, a member of the Capital

International Group of companies. 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.

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 with access to global markets

• Highly competitive track record

Independence • Isle of Man-based with no distant head office imposing operating guidelines or strict investment procedures - avoids irrelevance in alternative jurisdictions

• Long history within the Isle of Man’s finance sector - over 17 years

Convenience • Outsourcing cash management• Focus on client service• Frees up time for higher value-added activities

The Capital 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. The added benefit over a money market fund is that

Currency OptionsAs previously mentioned the Capital Liquidity Account is available in three main currencies, Pounds

Sterling, Euros and US Dollars; other currencies are available on request.

Minimum InvestmentThe minimum initial investment is £50,000, $100,000 or €100,000 respectively.

Cash Management

LiquidityLiquidity

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Liquidity

A unique feature of the Capital Liquidity

Account is that it offers institutional rates

of interest coupled with two day liquidity.

Account holders can withdraw their money

at any time with no penalty or loss of interest

incurred on withdrawal.

T+2 LiquidityThe yield curve will remain for the foreseeable

future very much in favour of short term

monies; therefore suitable short term

investment vehicles can offer as good a return

as the six month equivalent, while giving

liquidity and thereby avoiding any potential

breakage charges should an unforeseen

liquidity requirement become evident.

To ensure they can maintain the level of

liquidity without compromising on investment

returns, Capital Treasury Services constantly

monitors financial institutions with an A-

(Standard & Poor’s) rating or above.

Security

In order to protect monies invested into

the Capital Liquidity Account and also the

reputation of the Isle of Man, these monies

need to be in the safest place(s) possible

with key emphasis on both counterparty

credit rating and diversification.

AAAf/S1+The Capital Liquidity Account has been

rated AAAf/S1+ by Standard & Poor’s (the

highest credit quality and lowest volatility

ratings) for seven consecutive years. Our

team of qualified investment professionals

consideration of underlying deposit takers

credit rating and focus on ensuring a high

level of diversification within the underlying

‘pool’ of monies has been key to the

retention of this highly sought after accolade,

helping to keep the Capital Liquidity Account

at the forefront of local investors’ ‘go-to’

investment products, especially in times

of economic uncertainty and where capital

protection is of utmost importance.

Yield

Return on investment is not always

critical, but the Capital Liquidity Account

looks to achieve liquidity with the bonus

of a competitive yield making the cash

investment solution extremely advantageous

to investors.

0.60% APRBy blending the maturities of the deposits

within the underlying pool of the Capital

Liquidity Account we are able to offer

investors 0.10% over rate on all balances

above £1 million, or currency equivalent, on

a two day liquidity basis.

As the yield curve returns to normality,

and longer term interest rates once again

overtake their short term equivalents, we will

of course ensure returns are maximised by

providing fixed term alternatives for monies

held within the Capital Liquidity Account

which are not immediately required.

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Capital Liquidty Account | Features & Benefits

The Capital Liquidity Account is not a bank account, so you are not lending money to Capital

Treasury Services or any company within the Capital International Group; as a result any

cash investments are not exposed to 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.


Features Benefits

Immediate access online Provides greater convenience and flexibility

Online, integrated system acting as a single point of access

Review your Capital Liquidity Account position including statements, transactions and overall investment position from anywhere

Easier to make transfers between Capital Liquidity Account and designated accounts

Minimise costs and generate competitive yields on surplus funds with on-line control of your investments

Up-to-date, live, account information Helps improve your view on your overall cash positions in multiple currencies

Two-day access to investments Practically immediate access to monies when needed without the need to break deposits which can prove costly

Multi-currency investments No need to rely on foreign exchange mechanisms - the three primary currencies are GBP, USD and EUR, with others available on application

Competitive, real-time investment rates Rates quoted are real-time - when you invest you know what your rate is, and likewise when base rates rise so will the investment return

Upload balance and transaction information directly into your accounting systems

Reduces delays and potential human-errors caused by re-keying data and allows consoli-dation of bank balances

Segregated cash holdings from any operational or balance sheet exposure

Security of cash assets

Standard & Poor’s AAAf/S1+ rated

High Credit Quality Low Volatility

Independently rated and monitored by a globally recognised agency

Ensures adherence to investment criteria relating to credit quality and volatility ratings

Independent reporting from the rating agency is available for investors offering full transparency on cash assets

Provides a historical reference to consistency and consecutive ratings

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Capital Liquidity Account minimises costs and generates competitive yields on surplus funds


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Liquidity strategy is to maintain asset quality and diversity of the portfolio

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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 Capital

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 Capital 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.

• We manage Credit Risk through a list of approved banks and building societies. Every

issuer on the list is monitored on an ongoing basis by our experienced team.

• We manage Liquidity Risk by limiting the Capital Liquidity Account’s underlying cash

assets weighted average final maturity and adjusting those cash assets to better match

the Capital Liquidity Account investment profile.

• We manage Interest Rate Risk by monitoring the forward yield curve and limiting the

Capital Liquidity Account’s weighted average maturity.

* This is subject to change due to changes in base rates Innovation Integrity Excellence

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Two Day Liquidity

A unique feature of the Capital 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 we 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.

1 While the Capital Liquidity Account is designed for amounts of £50,000 or greater, we may facilitate smaller amounts at our discretion.

Interest Rates

Capital Treasury Services sets the interest rates applicable on behalf of the Capital Liquidity

Account daily, which are publicly available on request.

While we reserve the right to vary the basis on which interest rates are set at our discretion;

rates will target the following scale:

Investment Amounts Target Yield

£50,0001 $100,000 €100,000+ Base -20bp

£100,000 $250,000 €250,000+ Base -10bp

£250,000 $500,000 €500,000+ Base

£500,000 $1,000,000 €1,000,000+ Base +5bp

£1,000,000 $2,000,000 €2,000,000+ Base +10bp

The Capital Liquidity Account service is based in the Isle of Man and as such interest is paid

gross to all Capital Liquidity Account investors.

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Account Structure

Client monies in the Capital Liquidity Account are held within a ring-fenced custody account with

Capital International (Nominees) Limited, a member of the Capital International Group

The Group provides global custody services via our own nominee company - ensuring fast and

efficient transaction and settlement as well as servicing a selection of experienced professionals,

institutions (from e-gaming through to aviation and shipping) and fund structures looking for

administrative and custody solutions.

No investments are made directly on, or for, any Capital Liquidity Account and account holders

can access the monies deposited within two working days notice. Capital Treasury Services

ensures that a competitive level of interest is paid on each Capital 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, we have developed a range of solutions

that are designed to meet your requirements - the two principal options

available are:

Fixed Term Investments

We agree the interest rate with you, in advance, and this rate is fixed for the

whole period of the investment. Effectively the investment is locked away for the

investment period and is only made available on maturity.

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. It should be noted that from time to time,

where interest rates in a country are particularly low, we may be unable to pay interest

on accounts in the currency of that country.

Both 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 Capital

Liquidity Account.


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Standard & Poor’s Rating Agency

Standard & Poor’s aim is to become the leading provider of global credit benchmarks and

research across industries, asset classes, and geographies that investors, businesses, and

markets use to foster economic development and growth around the world. As one of the

world’s leading providers of independent credit risk research and benchmarks, they publish

more than a million credit ratings on debt issued by sovereign, municipal, corporate and

financial sector entities.

Across 23 offices around the world, they have over 1,400 analysts, managers and economists

continually assessing the variables that affect creditworthiness. In frequent dialogue with senior

managers and industry leaders, they examine everything from the state of an enterprise and

its position in its industry, to the state of a region and the globe. They continually assess and

reassess their ratings methodologies, adopting changes as needed to respond to the changing

needs of investors, issuers and markets. All of this enables them to offer insightful opinions that

help market participants make more informed business and investment decisions.

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Ratings | Credit Quality | VolatilityOver the last seven, 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 Capital 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 Capital Liquidity Accounts managed by Capital Treasury Services.

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 via the

website at www.capital-iom.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.

NOTE: Standard & Poor’s Fund Ratings represents an opinion only, not a recommendation to buy or sell.



Insightful opinions that help make more informed business and investment decisions

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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. We 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 come to us because we are able to provide them with more

competitive pricing structures than they receive from their existing banking

relationships and treasury service providers.

AnalysisWe provide accurate and proactive analysis of where exchange rates are heading and why. In

addition, we also offer bespoke research for clients on their individual currency requirements.

ProactivityThere 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 we can.

Tailored ServiceCapital 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.

Foreign Exchange

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Delivering Quality

Capital Treasury Services and the Capital International Group have been working closely with

clients, both private and institutional, for over fifteen years and our team of specialists really

do understand the issues faced by businesses that have foreign exchange and international

payment requirements.

Our experience in the industry has allowed us to develop an innovative range of products and

services that will minimise your foreign exchange risks, provide financial value and take the

hassle out of international payments.

We deliver value by combining competitive foreign exchange pricing with the most efficient

methods of managing international payments. Our committed effort in understanding your needs

and objectives enables us to deliver financial efficiency giving you more time to focus on your

core business activities.

We are committed to delivering excellence in customer service, creating and delivering

innovative products, services and solutions to help your investments grow and compete more

effectively within the global market place.

By working with Capital Treasury Services our clients benefit from:

• A dedicated team focused on saving you time and money when dealing with your foreign exchange requirements

• Dedicated payment specialists that will allow you to achieve great efficiencies when dealing with your international payments

• A flexible and personalised service, whilst leveraging the use of technology to make the experience simple and easy

• Seamless integration and on-going support

• A wide range of tools and information enabling you to mitigate risk and improve your company’s bottom line.


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Priceless Service

We make buying and selling foreign currency and international payments one simple process –

you can deal with us by telephone, fax or e-mail. Your dedicated account executive will confirm

the rate with you immediately and send you confirmation by fax, email or post.

Whether you are paying a supplier or

completing an inter-company transaction,

Capital Treasury Services removes the

complexity of crossborder transactions and

provides you with simple options.

Your dedicated corporate trader will

work with you to understand your foreign

exchange requirements, volumes, currency

pairs, seasonality and timeframes to ensure

your needs are covered at all times.

Foreign ExchangeValue added services We understand that buying currency is not

always a matter of buying at the best price

but doing it at the right time. At Capital

Treasury Services you will get access to

a number of value added products and

services to help you be more efficient in

your decisions:

• Limit orders, to buy or sell currency

when the price is right

• Market watch, to ensure you don’t

miss out on market movements

• Rate watch, get a call when the

market hits your target price

• Daily market news, to be on top of

what is going on

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Keep in Control

Since January 2012, Capital Treasury Services has been making international payments on

behalf of customers to numerous beneficiaries all over the world, through our global banking

network which provides secure, reliable, immediate delivery and receipt of outgoing and

incoming funds.

At Capital Treasury Services our objective is to make the payment process simple, secure and

automated, allowing your organisation to benefit from:

• Single and multiple international payment instruction processing

• Automatic payment and receipt notifications

• Multiple reporting options

• Transparent pricing

• Dedicated team of payment specialists

• Outstanding system security and regulatory compliance.

Making international payments

We make international payments a simple

and easy step integrated into the foreign

exchange ordering process. International

payments can be made by:

Telegraphic Transfer - a SWIFT

electronic payment service for transferring

funds globally, to meet the demands of

international business. You can ask Capital

Treasury Services to send or receive funds

for you using Telegraphic Transfers (also

known as wires, TT, International Wire

Payment or RTGS payment)

Bulk payment processing

With our bulk payment processing service

you will be able to execute multiple payment

instructions simultaneously in different

currencies, to different countries and

beneficiaries. This service will allow you

to save money and reduce the workload

required to process them at any given point

in time.

International PaymentsValue added services With Capital Treasury Services you will be

in control of the complete payment lifecycle

and have access to a large range of

payment related value added services:

• Formatting and payment routing

• Payment status tracking

• Suspect payment verification:

duplicate checking, OFAC and FinCen

• IBAN verification service

• Invalid payment repair service

• Payment confirmations

• Investigation and reporting service

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Mitigating Risk Capital Treasury Services provides a portfolio of instruments and services that can assist your

organisation to minimise foreign exchange risk.

Clients who have a foreign exchange requirement need a specialist partner with the skills

to understand your exposures, processes and cash management requirements and Capital

Treasury Services can assist you to:

• Understand which currencies and economic elements you are exposed to, their risk

profile and market sensitivity

• Combine a range of products and services to mitigate your foreign exchange risk

• Protect your operating margins in uncertain economic climates

• Develop a long-term foreign exchange hedging strategy

• Improve your cash management process increasing your working capital

• Remove the hassle from the complex world of international payments

• Allow you to focus on your core business

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Foreign Exchange Tools

Several foreign exchange contract types are available to our clients that can both mitigate risk

and gain maximum benefit from fluctuating currency markets. Tools such as Stop Loss and Limit

Orders are normally only available to blue chip companies and those trading large volumes.

However, we are pleased to offer these tools to all of our clients.

Contract Type Description Why use it

Spot Contract This is the most common contract type and needs to be settled within 48 hours of agreeing the contract.

You need the currency immediately or want to take advantage of a beneficial rate and hold the currency on your account.

Forward Contract This is for the purchase or sale of a currency on a fixed future date.

A forward contract will guarantee an exchange rate for a future date, regardless of subsequent market fluctuations.

Forward rates are calculated using the prevailing spot rate at the time of booking and the interest rate differential between the currencies involved and vary depending on the length of the contract.

• If you do not have all of the funds currently available

• To guarantee a rate for future date

• Takes advantage of a favourable rate

• To protect against market fluctuations

• To benefit from the flexibility of draw-downs & roll-overs

Derivatives/Options:Forward Plus Contract

This provides a guaranteed worst-case rate to hedge against any decrease in a currency ‘put’ and provides the potential to deal at the market rate providing the exchange rate remains above a pre-determined limit rate.

• Ability to deal at better than the current market rates

• Provides complete cash flow

• Zero premium cost solution

Derivatives/Options:Dual Currency Deposit

Currency-based yield enhancement products can enable investors to earn a higher than standard coupon on their fixed investments by reflecting a view on a specified currency pair. The investment rate coupon is guaranteed irrespective of exchange rate moves. However, if the exchange rate at expiry is at or above the specified ‘strike’ rate the capital is returned in the secondary currency, converted at the strike rate.

• Fixed term investment with guaranteed coupon paid at maturity

• Principal may be repaid in either specified currency

Stop Loss This is for the purchase of currency that is required imminently, where the purchaser wants to wait and see whether the market moves in his or her favour, but needs to achieve a minimum rate if the market moves in the opposite direction.

• You have an imminent requirement for currency

• You want to benefit from market fluctuations but also want to limit your risk to unfavourable market movements

Limit Order An order to purchase currency at a specified rate of exchange that is not currently available. An order will be triggered automatically should the desired exchange rate be reached.

• You do not need the currency immediately

• You have an ongoing or future currency requirement and want to secure a beneficial exchange rate.

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Reporting

Every Capital Treasury Services account holder has full on-line viewing access to their account

and the latest interest rates available, all via our 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. At the end of every

investment quarter, March, June, September and December, all Capital Treasury Services

account holders are entitled to, on request, receive a copy of our quarterly Investment Review,

providing an update on financial markets, investment opportunities and the latest strategy

comment from the Group.

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Fees & Charges

There is no management or administration charge for this service. The quoted rates of interest

will be paid to Capital Liquidity Account investors without any deductions. There are no charges

for transferring amounts into any Capital Liquidity Account.

Capital 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

our Standard Withdrawal Fees rate sheet.

For regular and/or frequent small transfers please speak to Capital Treasury Services about

their on-line payment service, Bridge: Internet Payment & Cash Management.

There is no management or administration charge for using the foreign exchnage service.

Customer Focused

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Client Care

We take client care very seriously. We are proud to have some major international corporations

as our key clients and we understand that client satisfaction is essential to our success. We have

a comprehensive Client Care Programme to ensure we are delivering our clients the best service

possible. Below is a summary of what it includes:

CommunicationWe listen, ask questions and challenge our clients so we understand their business, enabling

us to develop pragmatic and intelligent solutions. We build collaborative relationships with our

clients to deliver sustainable and innovative solutions to their business issues.

AdvocacyBy understanding our clients’ business issues and needs, we act as an advocate for our client

whenever we deal with regulatory agencies or other third parties. We involve our clients in the

project, we ask for their opinion and we deliver the project according to their schedule.

ResponsivenessOnce we have delivered a project, we follow up to make sure the client is completely satisfied

that we have provided them our best throughout the project. We maintain flexibility to fit with our

clients’ resourcing requirements.

ExcellenceWe focus on delivering the best result at a realistic price that reflects the value we have delivered

to our clients. We offer a significantly diverse range of services meaning that we can offer our

clients a complete solution to all their environmental and sustainability challenges.


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In SummaryAn operator should look beyond the core requirements when choosing the Capital International

Group and Capital Treasury Services as a partner. These are the four main considerations

operators should look at in this decision:

• Reliability

• Experience and competence

• Support

• Flexibility

We believe we address all these aspects, but notwithstanding we are constantly looking at ways

as to how to improve on this.

No one size fits all and each business has its own requirements

In this context, we have developed a range of services and support tools to allow for a full-

service customer experience. We’ve undertaken considerable investment to extend our reach,

these include a customer relationship management solution and SWIFT capabilities.

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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 InformationFor more information go on-line to our web portal at www.capital-iom.com or

alternatively contact us at the details below:

E-mail: [email protected]

Telephone: +44 (0) 1624 654200

In writing: Capital International Group

Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG


2010Companyof the Year

Capital International Group

2010Companyof the Year

Isle of Man Newspapers awards forexcellenceexcellence

WinnerWinner

Capital International Limited is a member of the London Stock ExchangeCapital Treasury Services Limited and Capital International Limited are members of the Capital International GroupCapital Treasury Services Limited and Capital International Limited are licensed by the Isle of Man Financial Supervision CommissionRegistered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG


Capital International GroupCapital HouseCircular RoadDouglasIsle of ManIM1 1AG

www.capital-cts.com

T : +44 (0) 1624 654299 F: +44 (0) 1624 654291 E: [email protected]

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CIG - Integrated Solution