Forex Services - Valufin
- 1. Foreign Exchange Treasury Management We support the management of currency exposures from placement of order until funds transfer and information is corrected accounted Improved forex rates Reduced costs to manage For a cost of less than the direct savings you achieve on Risks are known & controlled the rates, your benefits are :- Service is provided in all related matters Hosted - IT is totally taken care of Valufin Approach How Valufin Delivers Service Knowledge Transact Record import and export transactions Monitor currency market Identify currency mix Determine instrument & provider Create a time map of exposures Negotiate rates Determine natural hedges Manage Track shipping changes Capture online exposures and hedging Be aware of supplier and customer behaviour Confirmations verified Risk Evaluation Audit trail of all activity Risk profile of the business / industry / Costing rates for internal product pricing stakeholders Accurate raising of values in ledger Price elasticity Report Time and currency risk Exposure and Risk reporting Strategy Accurate shipment profit determination Which providers and instruments to be Revaluations of unrealised position considered Year to date profit and loss Use of interest rate mismatching Cash flow management Portfolio approach Risk reporting Decision making process Charges, defined in advance are either - Delegation of authority Management assurance Retainer (treasury service) Effective Rate key to accurate management Percentage of turnover (infrequent transactions) Percentage of gain (single transaction) Systems Online Forex Risk Manager (FRM) Online workflow, assessment and alert management Permission & Access controls Position visibility to customer & Valufin Modular and tailored 息 Copyright Valufin Ltd 2011 www.valufin.com
- 2. Foreiign Exchange Management Fore gn Exchange Management Valufin manages treasury operations and forex risk from inception of the order, through the life cycle of the exposure to payment / receipt of funds while accounting in terms of GAAP Benefits Rates improved o Rate improvement pays for the treasury service o Right hedging for the right reason at the right price o Transactions carried out when rates are at the right level Costs reduced o Reduced internal costs through employment of efficiencies o Improved knowledge acquired by staff o Appropriate processes implemented o Hosted all IT is managed on your behalf o Instant and total visibility for management review, control and monitoring o Accurate accounting of true costs / revenue on imported and exported goods o Detailed audit trails of all exposures and transactions o Staff are freed to perform more value added tasks Risk controlled o Exposures are known and managed in real time o 24/7 worldwide access to your portfolio o Accurate reflection of risk within time and against market rates Service provided o Instant access to expertise o Management of banking interface, and communication o Help and service available that is focused on your specific needs Valufin as Agent All Valufins services are offered on the basis that we are a management service. Therefore, your funds are at no time under our instruction, control or bank account. Your funds remain in your name with your bank or other authorised dealer with whom you have the primary relationship. This entity is used in the inbound or outbound currency transfer and the instructions are acted on by that entity based on your original documentation remitted to them by yourselves. Our function is to ensure that our customers understand their exposures, hedging opportunities, risks, rewards and the accounting for these activities. We ensure that within the information available and market movements that the right instruments and hedging techniques are considered and thereafter optimally managed. We negotiate the buying and selling of the foreign exchange transactions with your banks on your behalf and follow up with all the required confirmations and queries. All administration is carried out or managed by Valufin. Valufin Fees We charge a monthly retainer under easy cancellation terms and charge time for consultancy and training required. For adhoc transactions our fees are either related to the size of the transaction or to the amount of savings generated. We agree our charges upfront with you and ensure that the pricing mechanism agreed focuses on your return. Valufin is totally Independent We work with your banks or service providers in terms of your credit lines. To ensure high service standards we have set up working relationships with additional independent currency brokers and will introduce you accordingly. The choice of provider does not impact our fees charged to you. 息 Copyright Valufin Ltd 2011 Valufin is your forex treasury team, located externally www.valufin.com
- 3. Foreign Exchange Services Corporate Foreign Exchange Risk Management Valufins background Sharon Constan巽on, Valufins CEO started Constan巽on Currencies in 1988, a company which provided foreign exchange solutions to importing and exporting companies. The business developed rapidly and was listed on the JSE in the late 90s. Using new technology platforms, Valufin today delivers what was proven to be a successful risk management model for importing and exporting companies. Valufins services We offer a number of services that are customised to meet the requirements of each customers risk profile, volume, budget, in-house knowledge, systems and industry. 1. Due Diligence - an assessment of your current forex policies, procedures, approach, risk management, reporting and accounting. The assessment is carried out onsite and a detailed evaluation report is provided covering all areas and provides recommendations on what should be addressed. 2. Policies and procedures - assistance with setting up of policies, procedures, recording, managing & reporting of currency exposures and hedging instruments. 3. Implementation support the embedding of appropriate processes into the relevant departments, usually to ensure the correct management and risk evaluation is in place and informative reports reach the Board. 4. Management of forex risks (real and accounting) definition and implementation of control and management processes required, advice on using appropriate hedging strategies and determining correct accounting and reporting requirement. 5. Market Monitoring interbank currency feeds allow Valufin the ability to monitor exchange rate movements in real time and the implications this has on all customer portfolios. This is our focus and it allows our customers to manage their business rather than worry about exchange rates. 6. Transactions - buying and selling foreign exchange when it is required or for specific business requirements. We manage and guide our customers through the documentation and transaction processes and the required checks. We negotiate the rates on your behalf and choose the most appropriate instruments in line with your profile and needs. The transaction is managed to take advantage of any timing benefits present in the markets. 7. Bespoke retained management service service solutions are geared to meet your needs, risk profile, infrastructure, competitors and industry. The engagement process, relationship and interaction, the information flow options and online services are all geared to your business demands. These requirements are driven by your infrastructure and the relationship forex has within your business to pricing and risk. 8. Individuals Transferring funds out of South Africa under SARB and SARS conditions we provide a service that manages the process of attaining the required certificates from SARB and SARS, we interface with you and your bank to arrange the compliance documents, transfer documents and negotiate an improved rate. 9. Online Forex Risk Manager (FRM) Treasury System exposure and hedging position management system handling costing, cash flows, revaluations, payment effective rates and accurate profit and loss determination. 10. Reporting - monthly, quarterly and annual risk and accounting reports covering exposures, risks, deals transacted, cash flows, profits, effective rates, revaluations, ultimate product costs and more. 11. Training - the business understanding of Foreign Exchange relating to Spots, FECs, resultant cash flows, accounting issues, costing and hedging. Understanding the impact of foreign exchange exposures on the business. Valufin is totally Independent We work with your banks and to ensure service standards we have set up working relationships with other independent providers. Our revenue is not linked to the provider that supplies the currency service to you. 息 Copyright Valufin Ltd 2011 www.valufin.com