Until 2004 we invested our surplus cash in an international money market fund through a major high street bank. In early 2004 we met with HiFX to discuss our foreign exchange requirements and at the same time they introduced us to Tullett Prebon. In March 2004 Ark raised over £50 million from an IPO and revised our investment policy (with Tullett Prebon's assistance) to allow us to invest in fixed term deposits at institutions with a hight credit rating to meet the Board's requirement that the company's cash was not put at risk yet would generate the highest possible return. Ark now uses Tullett Prebon to advise us on rates and to recommend a pool of suitable institutions.
The advantage of this arrangement is twofold:
- Not having a separate Treasury function, our Finance team is able to call on Tullett Prebon for expert advice as to the state of the market. This information is then considered alongside our cash forecasts before investment decisions are made;
- Since 2004 Tullett Prebon have provided us with the same single point of contact for all our dealings.
At the same time, HiFX has helped us achieve considerable savings in our spot FX purchases. They analysed our purchasing history and highlighted that we were not being offered preferential rates: since that time, both they and the high street bank have offered us greatly improved rates.