Bonds and Treasury Bills
FCIS is a licensed broker on the Eastern Caribbean Securities Exchange (ECSE) and leading trader in Government Treasury Bills (T-Bills), Bonds on the Regional Government Securities Market (RGSM), and corporate bonds on the Eastern Caribbean Securities Market (ECSM). FCIS is also an active trader in stocks on other regional stock exchanges namely, the Trinidad and Tobago Securities Exchange and the Barbados Securities Exchange.
- T-Bills and Bonds represent debt obligations backed by various regional Governments or corporations with maturities from less than one year (T-bills) to several years (Bonds).
- OECS Government T-Bills & Bonds are accessible on the RGSM, while corporate bonds are accessible through the ECSM. The Eastern Caribbean Central Bank (ECCB) is the fiscal agent for all transactions done on the RGSM and the ECSE is the paying agent for those transactions, thus limiting the issuers’ involvement in the capital raising and settlement process.
- The minimum investment is EC$5,000 with a $1,000 multiplier up to a maximum purchase of the issue size.
- Treasury bills are traded using the competitive bidding mechanism and as a result, the final discount rate would typically differ from the maximum quoted.
Repurchase Agreements / Fixed Income Paper (FIP)
A Repurchase Agreement (Repo) is a short term liquid investment that provides a useful avenue for leveraging additional revenues from excess liquidity. Our Repos are relatively safe investments, backed by the strength of our organization and further backed by a debt instrument issued by a borrower such as a private corporation or government, thereby providing an additional layer of safety. The product is regulated and closely monitored by our Regulator, the Eastern Caribbean Securities Regulatory Commission (ECSRC).
Pershing Exchange-Traded Funds (ETF )Solutions
This product is a United States Dollar (USD) based model structure that aims to meet the needs of clients who wish to invest in international investments – both fixed income and equity. To service the needs of our clients, we currently offer the following Model Types:
- Moderately Aggressive
Portfolio Investment Sizes
All portfolios will have a minimum start value of US$10,000 and all clients must have an account opened on the Pershing platform to facilitate trading.
An annual fee equal is payable on the market value of the assets of the fund. This is payable in quarterly instalments calculated on the market value at the end of each calendar quarter. Fees are as follows:
|Annual Fee||Quarterly Fee|
|ETF SOLUTIONS PORTFOLIO||1.5%||0.38%|
Most of the ETFs within these portfolios benefit from being zero-transaction ETFs that are solely available to the client through this product. However, from time to time, the Portfolio Manager may select securities outside of these zero-transaction ETFs in order to maximize returns to the clients. Transaction fees for these ETFs will be split amongst all portfolios, thus reducing the cost to the individual client. Other fees such as wire fees will be borne by the client.
Pershing Trading Platform
Equities and Bonds
We offer an online trading service that gives you control to trade (equity, mutual funds, ETFs, fixed income, options) and manage your investments on any major exchange globally.
The trading fee for trading on North American exchanges is $35 or 0.65% of the trade value – whichever is greater, and for all other markets, it’s $50 or 0.65% of the trade value. If you wish to trade on any exchange outside of the U.S., you would need to call us to place those orders for you.
We also offer an advisory service where you can speak to an advisor for market updates and sentiment. We will then execute trade requests on your behalf. The fee for this is US$35 or 0.95% of the trade value.
To access the trading platform, you would first open an account with First Citizens Investment Services. Once the account has been opened, you can fund your account via a cheque or wire transfer to us for transfer to your brokerage account. You can trade as you wish when the account is funded.
Risk: All investments, depending on their nature, carry a degree of risk and should be carefully considered before making any decision on an investment or transaction. Please discuss the details of this and all other risks associated with investments with your Wealth Management Professional.
The buyer of repurchase agreements and other investments are exposed to:
• Interest Rate Risk related to the fair value or future cash flows of a financial instrument
• Credit Risk or risk of loss of principle or interest from the seller’s failure to meet contractual obligations
• Counterparty Risk from the failure to adhere to contractual obligations by each party
• Liquidity Risk from the lack of marketability of an investment
• Operational Risk from the deficiency of the seller’s information and technology and controls system
• Compliance Risk or the risk of financial loss from non-compliance with applicable laws and regulations
• Investments are not deposits and accordingly are not insured
Rights and Obligations: The rights and obligations of the parties to a repurchase agreement are set out in the Master Repurchase Agreement you may enter into with us and which our Wealth Management Professionals will be happy to discuss with you.
Separate agreements and further documentation: Your decision to invest in some of the products and services mentioned in this brochure may require you to sign certain agreements. We recommend that you carefully read the terms and conditions which are contained in these agreements and which are applicable to the product or service you may request. You can also request further reading material on each product or service mentioned in this brochure that you may have an interest in. Our Wealth Management Professionals are available to provide clarification on any concerns that you may have. You are encouraged to seek further financial or other advice before making any investment decision.