Audit and Execution
Deals involved in currency transactions are typically undertaken by an international equity manager or custodian. Traditionally the costs of these transactions are not quantified, even though it might be the case that they may be a source of revenue for a manager or custodian, or a cause of lost profit for the fund.
An accurate value can be placed on spot deal costs, using Record Currency Management's currency audit service. We examine and analyse the foreign exchange deals done for a fund by its third-party providers. And we compare that performance against our in-house database of historical currency rates to see whether excess costs have been incurred in the past, and give advice on how to avoid them in the future.
Some of our audits have uncovered little or no excess cost - and others have identified annual potential savings in the millions.
Record offers a flexible operation - audits can be completed as a one-off exercise, or at regular intervals to provide an ongoing measure of manager performance; they can also be combined with Record's consultancy service providing a complete review of the client's treasury processes.
Record can also offer an execution service to solve the problem of high FX transaction costs going forward.