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SPREADING THE RISK

The banking crisis has highlighted the continuing risks of bank failure. Breaches of bank confidentiality have become too frequent to ignore. Compliance and regulatory pressures have substantially increased the costs of maintaining multiple banking relationships.

Our Dealing & Treasury service specifically addresses these concerns by aggregating client monies and spreading them across a number of carefully selected global banks.

All of which are monitored for security, price and performance on an ongoing basis.

Your funds are held by the banks as client assets in the name of SDS Nominees Limited and are completely ring-fenced from the Stonehage Fleming balance sheet.

This gives you a single point of contact for your banking and investment requirements.

 

DIVERSIFIED RISK, INCREASED EFFICIENCY

​Managing your banking and investment requirements via Stonehage Fleming Dealing & Treasury offers a number of key benefits:

  • Lower risk in an increasingly fragile banking system, lower cost and a simple, one-contact client interface
  • Spread of counterparty risk across a population of carefully selected core banks
  • Ongoing assessment of participating banks with replacement/addition as appropriate
  • Client data held entirely within Stonehage Fleming, significantly reducing risk of data theft and unnecessary disclosure
  • Enhanced integrity, accuracy and consistency of data held
  • Reducing risk of problems increasingly caused by inaccurate bank records which can, for example, lead to inappropriate disclosures
  • Substantially reduced costs of operating multiple banking and investment accounts
  • Reduced costs of meeting compliance and money-laundering regulatory requirements
  • Improved reporting with clearer statements and daily updates of positions and portfolios
  • Greater transparency on holdings, obligations, pricing and custody
  • Single consolidated account statement from Stonehage Fleming across all securities and cash holdings
  • Aggregation of client funds in Stonehage Fleming names enables us to command institutional pricing
  • Access to your statements and positions online

 

Cash: not just a passive asset – Graeme Gill

The important role of cash in investment portfolios

Cash is a valuable tool in client portfolios. It provides liquidity and helps to decrease volatility across the entirety of a family’s wealth. It has long been seen as the ultimate safe haven for assets. If you have cash, it isn’t going to go anywhere because its value isn’t impacted by movements in price.

The only thing to consider is what return you are getting on your cash and the mitigation of counterparty risk. Holding cash therefore, isn’t entirely without risk and in itself represents a decision that you are comfortable with what risk it represents in the context of your portfolio.

By layering deposits in an underlying pool, the cash exposure is spread as it is not held with one but with a number of underlying banks. Placing cash over a number of maturities allows investors to benefit as longer-dated maturities will usually attract higher yields and clients benefit from these enhanced returns.

For investors with an appetite for speculating in the foreign exchange market, their cash can be put to work while maintaining liquidity. The market trades globally and positions can be taken and traded in a very short period of time. For instance if an investor thinks the pound is going to weaken, they would sell sterling and buy US dollars, thereby participating in any upside benefit from a currency move, while earning interest on the purchased currency.

Cash provides flexibility. If an investor were to buy a line of Google stock and the value of the shares increases they can sell the position (with embedded profit) and go back into cash until they wish to enter the market again. Strategic investors will do just this, actively keeping cash aside to allow them to finesse their timing in entering the market to take maximum advantage of opportunistic investments in moving markets.

Holding cash in a portfolio can provide benefits for active traders as well as investors with a lower risk profile. It has an important role to play as cash is an antidote to market volatility. Although the natural levels are dependent on the individual investment objectives of a client and risk appetite, the important role of cash providing a buffer in portfolios is apparent.

This article has been prepared for information only. The opinions and views expressed on any third party are for information purposes only, and are subject to change without notice. It is not intended as promotional material, an offer to sell nor a solicitation to buy investments or services. We do not intend for this information to constitute advice and it should not be relied on as such to enter into a transaction or for any investment decision. Whilst every effort is made to ensure that the information provided is accurate and up to date, some of the information may be rendered inaccurate in the future due to any changes. © Copyright Stonehage Fleming 2019. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission. It has been approved for issue by Stonehage Fleming Dealing & Treasury Services (Jersey) Limited which is regulated by the Jersey Financial Services Commission. It has also been approved for issue by Stonehage Fleming SA which is regulated in Switzerland by the Association Romande Des Intermédiaires Financiers and Stonehage Fleming Trust Holdings (Jersey) Limited which is regulated by the Jersey Financial Services Commission. It has been approved for distribution in South Africa by the Stonehage Fleming Investment Management (South Africa) (Pty) Ltd, an authorised financial services provider of which Stonehage Fleming Dealing and Treasury Services (Jersey) Limited is a juristic representative.

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Graeme Gill on Stonehage Fleming Dealing & Treasury services

This article has been prepared for information only. The opinions and views expressed on any third party are for information purposes only, and are subject to change without notice. It is not intended as promotional material, an offer to sell nor a solicitation to buy investments or services. We do not intend for this information to constitute advice and it should not be relied on as such to enter into a transaction or for any investment decision. Whilst every effort is made to ensure that the information provided is accurate and up to date, some of the information may be rendered inaccurate in the future due to any changes. © Copyright Stonehage Fleming 2019. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission. It has been approved for issue by Stonehage Fleming Dealing & Treasury Services (Jersey) Limited which is regulated by the Jersey Financial Services Commission. It has also been approved for issue by Stonehage Fleming SA which is regulated in Switzerland by the Association Romande Des Intermédiaires Financiers and Stonehage Fleming Trust Holdings (Jersey) Limited which is regulated by the Jersey Financial Services Commission. It has been approved for distribution in South Africa by the Stonehage Fleming Investment Management (South Africa) (Pty) Ltd, an authorised financial services provider of which Stonehage Fleming Dealing and Treasury Services (Jersey) Limited is a juristic representative.

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Our approach is rooted in a deep and practical understanding of the family, its wealth and wider circumstances. We help families develop and implement their plans to pass on an enduring legacy.