capital international group | integrated cash solutions

CapitalInternational Group

CASH MANAGEMENTINTEGRATED CASH SOLUTIONS

AAAf/S1+Credit Quality & Volatility Rating

Rated by Standard & Poor’s

CELEBRATING

Y E A R S I N B U S I N E S S

Innovation Integrity Excellence

Section Developed as a flexible, cost effective online solution to streamline the payment and receivable processes. BRIDGE allows businesses to process regular payments more quickly, easily and economically.

Online Payment Solution

Section We take client care very seriously and are proud to have some major international corporations as key clients. Essential to success is understanding the importance of client satisfaction.

Customer Focus

Section The Capital International Group operates from the Isle of Man and specialises in the provision of investment related financial services,

Capital International Group

Section 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

Cash Management

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 and SEPA.

Section Your clients will benefit from dedicated teams focused on saving you time and money when dealing with your cash management, foreign exchange and money transaction requirements.

In Summary

interest cash deposit. The added benefit over a money market fund is that the investment return is known at the time of investment and not at the time of redemption or maturity.

Section CapitalFX 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.

Foreign Exchange

Section A dynamic, entrepreneurial and visionary subsidiary of the Group, maximising efficiency by focusing on Treasury Management, Foreign Exchange, Cash Management and Payment Solutions.

Capital Treasury Services

Section It is vitally important that clients enjoy peace of mind and confidence in the way their investment affairs are being managed.

Executive Summary

Section Innovation is crucial in remaining competitive. One notable solution is the integration of products and services to facilitate efficient and dynamic cash management.

e-Business | Innovation

including trading and stockbroking, custody and administration, cash and investment management and investment structuring.

We transact FX 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.

We are able to provide them with more competitive pricing structures than they receive from their existing banking relationships and treasury service providers.

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Integrated Cash SolutionsContents

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

CapitalTreasury Services

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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 Capital Treasury Services Limited, a founding member of the Group, have weathered the storm.

We believe that Capital Treasury Services offers businesses around the world a unique opportunity to benefit from an improved and continuously monitored combination of systems and treasury solutions, asset security and competitive rates of interest on any residual or operational cash balances. Along with the introduction of online payments and receivables, our products and services are designed to alleviate any administrative burden. 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 and undertake all the necessary asset research to ensure they receive competitive rates in low risk institutions.

At the heart of everything is Bridge and the Capital Liquidity Account through which we offer an attractive combination of traditional cash management and foreign exchange expertise, coupled with a market-leading online payments solution. Our comprehensive range of pooled and designated cash management services offer investors a flexible and secure range of solutions designed to create operational efficiencies and maximise returns from their short to medium term assets.

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 407558Web: www.capital-cts.comE-mail: [email protected]

committeddedicatedtrustedBridge

Bridge

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Executive SummaryFrom the Managing Director

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Independence Locally GlobalWith no distant head office we focus on flexibility, innovation and customer service ensuring that we become more versatileand competitive in the global arena.

The Capital International 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 comfortable providing financial services to the global marketplace as well as to local people, businesses, institutions and the Isle of Man Government.

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.

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. Today, the Capital International Group offers an integrated range of financial services and now has in excess of $4.5 billion of client assets under management or administration.

The Capital International 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 Capital International Group as we become a trusted partner in delivering a universal solution.

In 2010 the Capital International Group relocated from two separate offices to new headquarters in Douglas on the Isle of Man. Capital House is the 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 business 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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Capital International GroupBackground

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



Making the Difference In a demanding international marketplace we have established a reputation for a unique and distinctive approach to business. We believe that a number of key factors differentiate Capital Treasury Services from other providers of similar services.

In-House CapabilityOur in-house teams of professionally qualified treasury practitioners enables us to provide clients with an exceptionally high quality and comprehensive service. In particular, it gives us the ability to handle larger and more complex products, structures and projects swiftly and with assurance.

Innovative ApproachOur in-depth knowledge 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 us 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 committed 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 Treasury Services is one of the leading providers of treasury services on the Isle of Man, complementing the Capital International Group’s vision by creating real value. They are a dynamic, entrepreneurial and visionary subsidiary, maximising efficiency by focusing on Treasury Management, Foreign Exchange, Cash Management and Payment Solutions.

Capital Treasury Services have been instrumental in championing cash management, payment services and foreign exchange on the Isle of Man since the business realised that there was a need.

More than just another treasury services company, Capital Treasury Services distinguish themselves from the competition by understanding 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.

Capital Treasury Services looks to develop the opportunities they see in the marketplace and to innovate and develop treasury solutions beyond their original boundaries. We believe that our success will always be based upon the skill, professionalism and commitment of everyone within the Capital International Group.

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Capital Treasury ServicesBackground

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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.

Innovation is crucial in remaining competitive. One notable solution is the integration of products and services to facilitate efficient and dynamic cash management. This can offer automated rolling of uninvested cash, discretionary and fixed term investments as well as foreign exchange all combine to maintain liquidity and make cash work more effectively. Integrated diversification of cash also works to minimise market and counterparty risk and maintain a high level credit quality and low volatility. Finally 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 has developed one such integrated solution that not only combines our flagship cash investment account with our online payment solution, but it also delivers a single-source online solution for our 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 Capital FX | Foreign Exchange capabilities 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 gateway 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.


e-BusinessInnovation

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Over the years our focus has shifted from not only providing treasury services to becoming an integrated partner to all operators across many industries including e-Gaming. Using Bridge we are able to open endless possibilities for any corporate entity, operator, business or industry of any size, some of which include:

Banking & Finance Insurance

Investment Business Funds

Pensions & QROPs Trusts

Aviation Shipping

Yachting ICT

e-Commerce Space

Manufacturing BioTech

This payment gateway is a unified interface to a huge variety of various online payment solutions.

Key features of this gateway include:

■ Single point of connection to multiple online payment service providers on the market

■ Existing integrations to: Neteller (Optimal Payments), Skrill, Counting House, Ukash, Mastercard and many more

■ Management of all transactions (multi-currency) using a standardised process

■ Integrated, security, risk and Anti-Money Laundering management

As is evident above, a wide range of online payment processors are already available and new ones are continuously being added, all of which offers you and your clients almost unlimited flexibility with regards to options for deposits and withdrawals.

All things put together, our integrated solution and payment gateway will simplify your cash management and foreign exchange requirements along with your online payments and make them safer, more efficient, and will enable you to provide a higher level of service for your clients.

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

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 developed substantially and is no longer confined to large multi-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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Online Payment SolutionBRIDGE Platform

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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 enabled businesses to save time and money – giving those same companies more opportunities to focus on their key business areas.



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 client of BRIDGE you no longer have to focus on minimising and avoiding the risks associated with inadequate protection of business critical information.

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 using SWIFT.

BRIDGE LinksThis is the data support from BRIDGE into other Accounting/TMS/AP/AR systems. Data can be imported directly into these systems for reconciliation purposes.

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

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 individual proprietary banking systems

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

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Free up your team to concentrate on growing your international business

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 develop 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.

Payments that Power Business

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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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.

We facilitate online transactions to give clients a fast, reliable way to pay and to offer businesses a cost-effective method of sending funds worldwide. Our solution removes the obstacles that make sending and receiving money slow, tedious and expensive, so payments can power your business.



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-DomesticSWIFT For currency or Sterling payments abroad and currency payments

within the UK

Paid in one to three days

EURO SEPA For EURO payments made 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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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.

Security High credit quality with AAAf rated by Standard & Poor’sLow volatility with S1+ rated by Standard & Poor’sInstant Diversification

Liquidity Pro-active liquidity managementLate dealing timesTwo day settlement

Yield Stable/consistent returnsInstitutional purchasing power with access to global marketsHighly competitive track record

Independence Isle of Man-based No distant head office imposing operational or investment proceduresLong history within the Isle of Man’s finance sector with over 17 years

Convenience Outsourcing cash managementFocus on client serviceFrees 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 the investment return is known at the time of investment and not at the time of redemption or maturity.

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

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Cash ManagementCapital Liquidity Account

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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 consider the credit rating of underlying deposit takers credit rating and focus on ensuring a high level of diversification within the underlying ‘pool’ of monies. This has been key to the retention of this highly sought after AAAf/S1+ rating, 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.

By blending the maturities of the deposits within the underlying pool of the Capital Liquidity Account we are able to offer investors a competitve rate on all balances over £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 Liquidity Account | Features & BenefitsThe 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 consolidation of bank balances

Segregated cash holdings from any operational or balance sheet exposure

Security of cash assets

Standard & Poor’s AAAf/S1+ ratedHigh 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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Account Structure | Asset Allocation 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.

Capital Treasury Services ensures that a competitive level of interest is paid on each Capital Liquidity Account, calculated daily and paid monthly in arrears.

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 Volatility / Risk Level Investment Time Frame

Low to Medium* Very Low 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 can however reduce the returns, so a careful balance needs to be maintained.

Risk ExposureIn 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.

Credit Risk Liquidity Risk Interest Rate Risk

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

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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. For further details please refer to our Standard Withdrawal Fees rate sheet.

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

£1,00,000+ $2,000,000+ €2,000,000+ Base

£500,000 $1,000,000 €1,000,000 Base -0.05%

£250,000 $500,000 €500,000 Base -0.10%

£100,000 $250,000 €250,000 Base -0.20%

£50,0001 $100,000 €100,000 Base -0.25%

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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Standard & Poor’s Rating Agency

Ratings | Credit Quality | Volatility


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.

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.

Over the last eight, 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 online client account reporting, Standard & Poor’s provide analyst reports on a monthly basis which are available on request.

NOTES:

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

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.



Capital FX | 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.

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 Capital FX | Foreign Exchange service, for instance when buying a property abroad, while others may need more assistance on a deal-by-deal basis to understand the complexities of the Foreign Exchange markets.

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.

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Pro-activityThere are two ways in which an information flow may reach you, pro-actively 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.

CapitalFX | Foreign ExchangeService Overview

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Capital FX | Foreign Exchange ToolsSeveral 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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Priceless Service We make buying and selling foreign currency and international payments a 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 cross-border 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 time frames to ensure your needs are covered at all times.

Capital FX | 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

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:

Combine Products and services to mitigate your foreign exchange risk

Protect Operating margins in uncertain economic climates

Develop Long-term foreign exchange hedging strategy

Improve Cash management process increasing your working capital

Remove Hassle from the complex world of international payments

Allow You to focus on your core business

Understand Currencies and economic elements you are exposed to, their risk profile and market sensitivity


Insightful opinions that help make more informed business and investment decisions


Fees & ChargesThere is no management or administration charge for these services.

Any quoted rates of interest will be paid to Capital Liquidity Account investors without any deductions.

There are no charges for transferring amounts into any account with Capital Treasury Services. Bridge is there for you to make regular and/or frequent small transfers, account holders may request a withdrawal at any time but they may be subject to a nominal charge to cover associated correspondent bank fees. For further details please refer to the Standard Withdrawal Fees rate sheet.

Reporting Every Capital Liquidity Account holder has free and full on-line viewing access to their account and the latest interest rates available, all via Capital Online on our website at www.capital-iom.com.

Additionally, account holders can request to have regular monthly statements on their account, together with a review of the interest rate performance, in comparison to the market sent to them. Should you wish to receive statements and valuations in this manner then please contact us for further information.

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Capital Treasury Services and the Capital International Group have been working closely with clients, both private and institutional, for over seventeen years and our team of specialists really do understand the issues faced by businesses that have cash management, 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 cash returns and 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.

Customer FocusDelivering Quality

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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:

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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 represent 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.

An operator should look beyond the core requirements when choosing the Capital International Group and Capital Treasury Services as a partner. These are the five main considerations operators should look at in this decision:

Reliability Flexibility Support Experience Competence

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... ...each investor, business and institution have their 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.

Flexible and personalised service, with dedicated payment specialists

Allows you to achieve great efficiencies when managing your cash requirements and dealing with your domestic and international payments

Leveraging the use of technology Seamless integration and on-going support makes the experience simple and easy

A wide range of tools and information

Enables you to mitigate risk and improve your company’s bottom line

By working with the Capital International Group and likewise Capital Treasury Services your clients will benefit from dedicated teams focused on saving you time and money when dealing with your cash management, foreign exchange and money transaction requirements.

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In SummaryIntegrated Cash Solutions

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The regulated activities are carried out on behalf of the Capital International Group by its licensed member companiesCapital International Limited and Capital Treasury Services Limited are both licensed by the Isle of Man Financial Services AuthorityCapital International Limited is a member of the London Stock ExchangeRegistered Address: Capital House, Circular Road, Douglas, Isle of Man, IM1 1AG

Isle of Man | Head OfficeCapital International GroupCapital HouseCircular RoadDouglasIsle of ManIM1 1AG

www.capital-iom.com

T : +44 (0) 1624 654200 F: +44 (0) 1624 654201 E: [email protected]

South Africa OfficeCapital International SAOffice NG101AGreat Westerford240 Main RoadRondebosch 7700South Africa

www.capital-sa.com

T : +27 (0) 21 201 1070 E: [email protected]

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