Welcome to the May issue of The Treasurer. We think of this as our ‘conference edition’ because this month the ACT is holding its highly regarded annual conference at the ACC Liverpool convention centre. The annual conference is the ACT’s flagship event and for this reason it is attended by hundreds of treasurers, bankers and other suppliers of treasury services from across Europe and further afield. Last year was my first experience of the conference and I was blown away by its scale, organisation and thought-provoking content. With its theme of ‘hindsight, insight, foresight’ and a line-up of excellent speakers, the conference promises to deliver again this year and I look forward to seeing many of you at the event.
May also sees the presidency of the ACT change hands, with Jono Slade, Rio Tinto’s global head of corporate finance, taking over the reins from last year’s president, Bob Williams. Turn to page 22 for an in-depth profile interview and read his views on funding, managing bank relationships (he holds an exacting annual review process with a number of his banks) and the future direction of the ACT. He also explains what Rio Tinto does with its mighty $7bn in cash reserves.
The implications of bank ring-fencing have not yet made it onto treasurers’ radars in a major way, but the proposals put forward by Sir John Vickers in the UK and Erkki Liikanen n Europe will almost certainly impact on companies in the medium term. Specifically, ring-fencing will affect how companies invest and borrow money, and the additional costs associated with it may be passed on to them as well. Find out what ring-fencing could mean for you and your organisation in our cover feature, starting on page 18.
Among the other highlights of the issue, we take a look at how macroeconomic trends are affecting trade patterns and the growth of South-South trading (page 26). Here, we explain some important considerations for treasurers working with subsidiaries in emerging markets. This month we also focus on money market funds (pages 28-31); the impact of regulation and the poor economic climate on loan terms (page 32); and how treasurers can manage risk given the new challenges that continually appear on the horizon (page 36).
On page 42, we take a look at performance management and explore seven common myths. May is traditionally – if perhaps misguidedly – seen as the start of summer in the UK. Even if you can’t make it to Liverpool, I hope the sun shines down on you wherever you are.