Enhancing returns and reducing risk through
diversification using the Flagstone
International platform

Problem Statement:

Client A, a company with significant cash flows across multiple currencies and geographical regions, faced challenges in managing their cash assets effectively. With approximately £24 million in cash reserves, spread across three currencies, they sought a solution to diversify their cash and optimise their returns.

Solution:

Recognising the necessity for efficient cash management and diversification, Client A enlisted the expertise of The Private Office (TPO)  Upon recommendation from TPO, Client A was introduced to us, Flagstone International, to address their challenges.

Leveraging our platform, Client A, was able to instruct deposits in three different currencies with six different banks, spanning various tenures from Instant Access, through Notice Accounts and Fixed term deposits, ensuring diversification, competitive rates, and streamlined reporting.

"We are very pleased with the level of service provided by Flagstone International. When we identified a client with non-UK connections and specific challenges regarding diversification and cash management which didn’t meet a traditional UK model, we knew Flagstone International was the right provider to help us resolve these issues. Working with Flagstone International, we were able to ensure that our client's needs were met effectively, leading to a successful outcome.  Their engagement with us to get the right result is superb.” Robert Morse, Senior Partner and Chartered Financial Planner at The Private Office.

Implementation Process:

We were able to swiftly onboard Client A and once their account was opened, they were able to instruct all of their multi-currency deposits across six banks in a timely manner utilising our platform. Throughout the onboarding and funding journey, they received comprehensive support from our client services team, ensuring a smooth and efficient transfer of funds.

Key Benefits:

• Competitive rates: We facilitated access to competitive rates across
  various banks and products, ensuring optimal returns on the client’s
  cash deposits.
• Efficiency: Client A was able to deposit across multiple accounts
  quickly and effortlessly, accessing banks where they had no previous
  relationship, saving time and resources.
• Diversification: By placing deposits with multiple banks and
  jurisdictions, Client A effectively diversified their cash assets,
  reducing credit and geographic risk exposure.
• Streamlined reporting: With access to our consolidated reporting,
  Client A was able to easily monitor and manage their cash assets
  24/7, simplifying administrative tasks and improving transparency.

Outcomes:

Client A has gone from holding cash deposits at one bank on a rate of 2.3% to accessing deposit products from six banks with a blended annualised rate of return of 4.6%, resulting in almost £600,000 of additional annual interest and significant risk diversification*.

Through our solution, Client A successfully addressed their cash management and diversification challenges. They achieved greater credit risk diversification, optimised investment returns, and positioned themselves for long-term growth and success.

*Returns quoted are based on interest rates which were correct at the time of client instruction. For the purpose of the calculation, all returns have been annualised and  exchange rates as of April 2024 have been applied to non-GBP currency deposits held by the Client.