Interview with John Cookson, Managing Director of Capital International
By: Liz Corlett
31 March 2009
Can you take us through the different elements of Capital Treasury Services?
Our Treasury Management solutions are specifically designed to meet the needs of our clients. This is where Capital Treasury Services comes in, with unrivalled skill and efficiency. Our aim is to maximise the return on our client's investment and to ensure that the commitment that they have shown in us is properly rewarded.
Specifically, we provide specialist expertise in the following areas:
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Foreign Exchange
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Money Market & Investment Products
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Multi-currency Accounts
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Foreign Remittances
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Outsourced Cash Management Solutions
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Pre-Paid Debit Card Services (linked to CLA)
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Structured Products
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Bullion & Precious Metals trading
What makes CTS able to achieve more attractive foreign exchange and money market rates, in comparison with their competitors?
Our location, in a premier international business and finance centre, is ideal. We have years of experience in foreign exchange and money markets. We take time to understand the people involved; know precisely what our clients want; and then make sure that we deliver.
We are able to offer more competitive pricing for the following reasons: firstly, the purchasing power that is afforded to us through the volumes traded by CTS enables us to leverage much tighter margins than you may achieve in your own right and secondly, we are able to scour the market to achieve the best price through banks, some of which you may have existing relationships with, and also some you will not.
Cash management is a core activity for Capital Treasury Services Limited. Our comprehensive range of pooled and segregated cash management services offer investors a flexible and secure range of solutions designed to maximize returns from their short to medium term assets.
Can you explain the benefits to corporate clients of using the outsourced treasury service provided by Capital Treasury Services?
Capital Treasury Services Limited is one of the leading Isle of Man treasury services companies, which has been built upon the assumption that the management of cash and risk is like legal advice, accounting and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Sophisticated and experienced business people who aren’t bankers or treasurers need to find quality companies of reliable service, product knowledge, bespoke financial solutions and support. They need to use these quality companies as they use their other professional service providers, as trusted business partners, in the outsourcing of treasury management with the aim of achieving improved commercial terms.
Capital Treasury Services is such a company. Our experienced team, led by myself and assisted by Cecilia McCallum and Paul Hickey, has over 60 years’ accumulated experience in cash and investment management. The team offers a full range of market leading and innovative liquidity products and solutions designed to maximise returns from their short to medium term assets.
All our clients want is friendliness, convenience, quality, a real understanding of their needs, and recognition that their time and views are valuable.
Has the recession affected CTS or made a difference to the way in which it operates?
These are challenging times for everyone at the moment, however, I believe CTS is as well-placed as it can possibly be to see us - and our clients - through these difficult times.
At Capital Treasury Services, we offer our clients a reliable and up-to-date advisory service and competitive rates, backed by a team of experienced personnel to manage Treasury, Investments and Cash Management needs covering a wide range of treasury products.
Capital Treasury Services is extremely conservative and its solid income stream protects it from the immediate challenges. However, it would be foolish to be complacent and an important part of our business model is to test and re-assess our business strategy on a regular basis. This process forms a crucial part of protecting and adapting the business in these challenging times.
Having assembled a team in the Isle of Man is proving to be a major asset as we have a clearer global perspective on world markets and the current state of affairs. We have the opportunity to look outward and innovative, rather than become insular and too defensive as many companies in the UK are becoming.
What do you believe to be the main challenges facing Treasury Services on the Isle of Man in the next 5-10 years?
The world changed in 2008. At a stroke, seemingly untouchable banking institutions have been swept aside - their hollow promise of security exposed as an illusion; their stranglehold on the financial infrastructure at the heart of the economy is broken.
The Isle of Man banking sector is clearly very vulnerable in the short term - given the changing ownership structure of the main UK banking names we would expect to see more impact, but the extent of this is certainly a developing issue. Diversification and ability to adapt is key. There are significant opportunities for CTS but the competition from other jurisdictions is intense.
Here on the Isle of Man, we have a positive Treasury Minister who, together with an excellent team of senior officers, have worked really hard to try and position the Island to ensure our economy is robust and flexible enough to withstand external pressures.
The continued lack of clarity means that the next few years will once again be plagued by volatility. There will almost certainly be rallies and unexpected sell-offs as the traditional fight between greed and fear reaches new levels of extreme. That said, it is worthwhile remembering that the current financial turmoil will provide many opportunities for our clients. At Capital Treasury Services, we have remained patient and will continue to plan, build and model not just for today but for the uncertain environment we expect to face over the foreseeable future.