So here we are as a client's global custodian. We're looking at the various services that we can offer, and we've now reached the area where we're gonna look at treasury products. Now, one of the simplest treasury products that we can look at on behalf of a client that's using us for custody services is cash management. Even though a vast majority of the client's assets under management will be in the form of securities and bonds, there is always quite sizable cash bonds is attached to these. Now, this may come from dividend payments or income from their equities holdings, and it is also obtained for when cash is in between equities, i.e., the little gap between them selling one set of equities before they purchase another set of equities. Now, how a bank can assist the customer to maximize the value of those cash balances can actually have quite a material impact on the performance of the fund. Another active area for customers is FX. As a global custodian, you are going to be helping your customer transact inequities across various different markets around the world. Now, the fund will probably be predominantly in one particular currency, whether that be US Dollars, Euro, Great British Pounds, or whatever the local market is that have attracted those funds in. However, it will look to actually invest in other markets to obtain a good yield and to adhere to the policy and the terms and conditions of that fund. So if you are a global custodian, one of your unique selling points can be to explain to the fund manager how you will look to give them market to market rates with regards to any FX transactions. Thus, ensuring funds are not lost by the fund just due to banks making extra profit on the FX. Again, this can assist the performance of the whole fund considerably. Then lastly, for some of your more advanced customers, they may have made their risk decision that they're quite comfortable for you to assist them to lend out some of the securities that they're holding in return for cash. This would normally be done relatively short term and they would be attracting a significantly higher yield than they can obtain from just holding cash on a bank account whilst also not actually selling the actual stock. So any rise that happens on that stock is also to their benefit. It's a little bit of a double whammy. They win always. They win both with the stock going up in value potentially, and they win from getting a cash payment for lending their security to somebody that needs it short term to cover their short position.
