Global Markets and Treasury. Where solutions come together

Transcription

1 Global Markets and Treasury Where solutions come together

2 client-driven solution-orientated

3 /// visit us at Nedbank Capital s Global Markets and Treasury teams work together seamlessly with the aim of becoming the solution provider and execution house of choice to all our valued clients and stakeholders. Putting our combined knowledge to work in the collaborative creation of innovative solutions, we strive to meet and surpass every client need. Global Markets offers multidisciplinary equity, foreign exchange, fixed-income, commodities and credit solutions to government, corporate and institutional clients. Nedbank Treasury s key roles are funding, liquidity management, and asset & liability management. The teams operate predominantly across southern Africa and Africa but also have a presence in London. From a platform of one-stop, multi-disciplinary solutions, we remain committed to building and maintaining longterm relationships with all our clients. We deliver a full range of banking capabilities: > Investment banking and financing solutions for corporate and institutional clients, including corporate banking, investment banking, trade services, payments and cash management, and leveraged acquisition finance. > Indepth coverage and knowledge of local markets and the provision of services in credit and rates, foreign exchange, money markets and securities. > Asset management solutions for institutions, financial intermediaries and private investors worldwide. > A broad range of research services, including macro, sector and company coverage, complemented by trading ideas and strategies. > Principal investments, consolidating Nedbank Capital s principal investing activities, including private equity, real estate and hedge funds. > Seamless, tailormade risk management solutions.

4 Global Markets comprises the following teams: Sales and Structuring Sales and Structuring comprises the structured solution, as well as the vanilla flow and distribution arm of the Global Markets business. We facilitate and structure the full suite of interest rate, inflationlinked, commodity, credit, equity and currency-based derivative products. These products can be employed to achieve a yield enhancement, as well as to manage the underlying risk linked to interest rates, inflation, commodities, credit, equity and currencies. We tailormake solutions based on a client s business model, specific requirements, exposures and risk appetite. To ensure optimum performance the best-value solution is implemented and evaluated throughout the hedge period. Together with our Investment Banking business unit, we offer Primary Placement Services (Corporate Bonds, Equity Placement, Commercial Paper and Securitisation). We provide derivative solutions for: > Institutional markets including local fund managers, asset managers, pension funds, life companies, banks, proprietary investors, hedge funds, as well as international funds, banks, proprietary desks and hedge funds. > Non-institutional markets, such as government, parastatals, municipalities, corporates, commercial clients, other banks, the property sector, asset financiers and crossborder borrowers. Our Derivative Sales and Structuring team offers the same solution-orientated thinking and value-add services to all our clients irrespective of the size of their businesses. We are a member of JSE Limited, JSE Derivatives Division (SAFEX), JSE Yield-X and Bond Exchange of South Africa (BESA). Foreign Exchange (Forex) Our Foreign Exchange Sales team provides a proactive risk management advisory service and focuses on delivering innovative hedging strategies and efficient trade execution to all major corporates, parastatals, medium and small businesses, as well as retail clients. The sales desk also services the Global Business Centres and the Nedbank branch network. The desk provides a direct-dealing facility for all qualifying clients, as well as dealing facilities for non-nedbank clients. Key services our desk provides include: > Spot and forward exchange contracts (FECs). > Currency futures and derivatives. > Extension and early delivery swaps. > Long-dated forwards, ie FECs for maturity between one year and 10 years for all major currency pairs. > A 24-hour service for the monitoring and execution of currency orders and stop-loss orders. > Up-to-date information and views on the foreign exchange markets. > A real-time internet-based forex dealing platform. Bespoke hedging solutions call for extensive collaboration between business units within the Nedbank Group. This process enables us to identify, and thereafter, optimally manage the financial risks to which our clients are exposed.

5 different teams a single focus: client satisfaction

6 knowledge experience expertise at work

7 /// visit us at Balanced for success Innovation Specialising in bespoke solutions that match the unique requirements of clients, our Innovation team s advisory services and solutions involve structures of varying complexity for transactions that may involve derivatives across multiple asset classes. Our product offering ranges from liability-driven investments to corporate share option hedging and empowerment schemes. We tailor all our solutions to comply with industry-specific regulation. Our team brings together a wide range of expertise in taxation, accounting, legal and derivative knowledge and experience in order to provide professional, tailored and effective solutions. Beta Solutions This team provides a range of cost-effective investment solutions to a broad client base across all asset classes. The focus revolves around beta-based building blocks that allow for optimal targeted exposure to different market segments. End-to-end operational management of all products and solutions is executed within Nedbank Capital Global Markets. BETA focuses on four distinct disciplines: B benchmarks and indices We provide a range of benchmarks and indices to assist investors in the measurement of performance of different markets and market segments. E exchange traded funds We now offer the BettaBeta Equally Weighted Top40 Exchange Traded Fund. T tracker and targeted products Our position within the Global Markets business unit and close affiliation with Nedbank Group enhances our end-to-end operational abilities and allows us to leverage off the group s synergies and reputation. We distinguish ourselves from our peers using a combination of existing and customised beta building blocks to derive lasting solutions for our clients. As a result, we have a transparent and rules-based passive fund management style. A combination of allocation to these products, together with true alpha strategies, allows for a significant level of tactical asset allocation possibilities for our clients. A attribution analysis At Nedbank Capital Beta Solutions we believe that significant insight can be gained from doing attribution analysis on benchmark indices by decomposing the total return of the index into different component parts.

8 Prime Services Our Prime Services team offers the following services: > Pretrade functionality access to a specialised service offering, including sales, trading and research. > Trade execution - Direct Market Access (DMA) capabilities; - efficient and cost-effective execution through algorithmic trading; - a wide selection of products; and - access to internal liquidity pools. > Post-trade functionality - clearing and settlement of trades; - centralised trade processing; - scrip-lending capabilities to support trade strategies; and - reporting of trades, positions and cashflows. > Risk reporting and fund administration integration. > Dedicated agency trading resources (prime broking and institutional sales trading desks). > Comprehensive, multiasset class electronic trading platform. Products traded via our direct market access include: > Equity trading > Contracts for difference (CFDs) > Currency futures > Index futures > Single-stock futures > Index & single stock options > Warrants > Share instalments Institutional Equities As a full-service stockbroking firm, we provide research, sales, sales trading and trading to both domestic and international fund managers. We are a member of JSE Limited. Nedbank Capital has an exclusivity agreement with Royal Bank of Scotland (RBS) in cash equity research, sales and trading. Aligning our sales and trading platforms, our cobranded South African equity research is distributed by RBS to its global client base. This agreement also offers Nedbank access to extensive global stock research conducted by over 150 RBS analysts into around listed companies in Europe, Asia, Australia and New Zealand. Our team, which comprises more than 30 professionals, has a wealth of experience and an intimate knowledge of the local market, providing broad research coverage. Our research, sales and dealing teams have consistently featured in the top 10 of the influential Financial Mail rankings of stockbrokers. Nedbank London Nedbank London is the central hub for Nedbank s international banking operations. It operates as an integrated corporate and investment bank, offering the full spectrum of corporate and investment banking solutions to South African and international clients.

9 Nedbank London provides South African and African clients with access and execution capacity to the international bond and credit markets, including non-rand-denominated funding lines. We further provide access and execution capacity to African capital markets for non-african international investors. We provide a range of products and services including: > Sourcing, packaging and structuring of assets. > Practical market information for South African and African clients to add colour on international capital markets. > A full range of money market products and services, including money market placements, call and fixed deposits, certificates of deposit and promissory notes. > Spot and forward foreign exchange, medium-term rand forwards and currency options, including monitoring and execution of foreign exchange orders, including stop-losses. > Pricing and trade execution of bonds, as well as participation in and development of the domestic African bond markets. > Non-ZAR-denominated interest rate derivative products and forex hedging strategies. > Trading of African credits in the international capital markets.

10 unleashing synergies a strategy for success

11 /// visit us at Nedbank Treasury Positioned at the heart of Nedbank s operational and business activities, we provide a highly efficient interface with local and international financial and investment markets. Our competitive offering sees us provide seamless, tailormade solutions for our clients. Nedbank Treasury comprises the following teams: Fund management Money market Our highly experienced and professional team offers call, fixed and staggered fixed deposits, all customised to clients specific business requirements. This allows for cashflow optimisation. If you have over R20 million to invest for a period of 12 months or longer, the following products could help you maximise your investment: > Yield enhancement product long-dated deposits could qualify for a yield (rate) enhancement. > Floating rate product floating rates linked to prime or the Johannesburg Interbank Agreed Rate (JIBAR) provide flexibility in a market where fixed rates are decreasing or increasing. These products also allow for longer periods of investment, with the ability to take advantage of rate fluctuations. NedTreasury Our sophisticated NedTreasury internet-based facility gives you desktop access to a range of global trade and domestic products in a completely secure environment. For more information, contact your relationship manager. Alternative investment options Negotiable certificates of deposit (NCDs) By choosing their period of instrument clients can earn more aggressive yields. Marketmaking of Nedbank-issued NCDs allows for the selling of the NCDs prior to maturity. Synthesis Conduit Programme The placement team can facilitate the issue of alternative instruments linked to a high-quality programme. This allows for exposure to credit risk other than Bank risk. The programme is rated by independent rating agencies and offers higher yields than traditional, Bank-issued instruments.

12 Balance Sheet Management (BSM) alternate investments Balance Sheet Management, Treasury, seeks to offer alternative interest-bearing investment products to our clients in order to offer tailormade, competitively priced and structured investments with varying maturity profiles. Products include the following: > Annuities and sinking fund profiles of up to 30 years. > Yield enhanced notes: - notes with embedded interest rate caps, floors and collars; - notes with geared embedded interest rate caps, floors and collars; - stepped rate notes (with the option for investors to redeem early at par without penalty); - notes with exotic profiles eg range accruals and inverse floaters; - notes with dual interest rates fixed and floating. > Credit linked notes notes with a yield enhanced payoff linked to an underlying credit risk. > Bond replica notes notes with a coupon and principal profile matched to an underlying RSA instrument. These are attractive to investors with specific liability obligations (eg life companies) who wish to earn an enhanced premium to the underlying note. > Prime-linked notes. > Equity-linked notes (to single name, baskets or indices). > Inflation-linked notes. > Currency-linked notes (in Rand). > Commodity-linked notes (in Rand). BSM may issue all notes in either over-the-counter (OTC) or exchange-listed format. To this end it makes use of Nedbank s domestic medium term note programme and credit linked note programme. Most notes can be issued in any of fixed, float, mixed or zero coupon format. BSM extends its innovation, knowledge and structuring capabilities with a view to assisting corporate clients to actively manage their varying risks and cash holdings or to raise funding from nontraditional sources. Preference shares Nedbank, through our Preference Share Desk, offers the opportunity of investing in a product guaranteed by Nedbank, with a variety of benefits, including an enhanced after-tax yield. Treasury Strategic Research This service includes daily and monthly economic reports that provide insight into global and domestic market events and the possible impact of these on clients businesses. The team is also available for ad hoc economic enquiries, providing clients with information critical for strategic decisionmaking.

13 Funding options Corporate Money Market Our Corporate Money Market Desk provides loan products, including overnight and term loans, subject to credit approval. While rates can fluctuate, marginal funding requirements can be met at reasonable rates. Longer-term loans are also available and will be uniquely structured according to a client s specific business needs. Debt Capital Markets Debt Capital Markets provides solutions to meet the unique business requirements of clients, from credit ratings and debt advisory services to the raising of non-bank debt funding, including short-term (three months) to longterm (20 years) debt, across a range of flexible debt products. Defined by our professional approach and recognised by our experience, our team is considered a leader in its field.

14 make contact

15 /// visit us at Committed to building and maintaining long-term, beneficial relationships with all our clients, any of our desks may be contacted for solutions across multiple asset classes. Foreign Exchange +27 (0) /3/5 Institutional Equities +27 (0) KZN Regional Treasury +27 (0) Nedbank London +44 (0) Derivative Sales and Structuring +27 (0) Innovation +27 (0) Prime Services +27 (0) Cape Town Regional Treasury +27 (0) Nedbank Treasury +27 (0) /7/8 Preference Share Desk +27 (0) Balance Sheet Management +27 (0) Equity Research +27 (0) Strategic Research +27 (0)

16 purpleberry 1010/5706 get to know us Visit us at or us at We subscribe to the Code of Banking Practice of The Banking Association South Africa and, for unresolved disputes, support resolution through the Ombudsman for Banking Services. We are an authorised financial services provider. We are an authorised financial services provider. We are a registered credit provider in terms ot the National Credit Act (NCR Reg No NCRCP16).