INTL FCStone 2005 Annual Report Download - page 3

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COMPANY DESCRIPTION
International Assets Holding Corporation and its subsidiaries (collectively the “Company”) form a
financial services group focused on select international markets. We commit our capital and expertise
to market-making and trading of international financial instruments, currencies and commodities. The
Company’s activities are currently divided into four functional areas: international equities market-
making, international debt capital markets, foreign exchange/commodities trading and asset
management.
Through offices in New York, London and Florida, the Company provides competitive execution to
wholesale customers in the following products:
▪8,000 unlisted American Depository Receipts and ordinary stocks from issuers organized in over 20
countries
▪more than 100 currencies
▪over 500 fixed income instruments from issuers organized in over 30 countries
▪physical commodities, commodity futures and OTC derivative products
We provide these services to a diverse group of wholesale customers including major investment
banks, commercial banks, brokers, institutional investors, corporations, charities and governmental
organizations throughout the world.
CHAIRMAN’S LETTER
Dear Fellow Shareholders
Another exciting year has passed for the Company and we look forward to a bright future. Over the last
three years the Company has significantly grown and diversified its sources of revenue. It has also
successfully established a presence in the European market, with a growing and profitable presence in
London. We now have a solid foundation from which to continue building and expanding in the years
ahead.
In addition to establishing businesses based on our long term strategic plan, we continue to attract
seasoned professionals to contribute to our pool of intellectual capital, which is the lifeblood of any
successful financial services company.
Global imbalances continue to cause uncertainty in the global financial markets. A large current
account deficit in the United States continues to be financed by countries with high current account
surpluses and high savings rates who wish to maintain strong exports to the United States by
maintaining a competitive exchange rate. These flows into the U.S. dollar have also caused U.S.
Treasury bond rates to trade at lower yield levels than might otherwise have been expected. In turn this
has helped to perpetuate a rise in asset prices, particularly in real estate and many commodities, to
levels that some commentators believe are unsustainable. Other commentators attribute this to
fundamental confidence in the U.S. as an investment destination. It is difficult to be sure how these
factors will develop and affect the markets in which we operate. As a financial services company that
focuses on generating revenues from serving customers rather than through principal trading, we have
limited directional exposure but activity levels are still affected by confidence and uncertainty. The
Company’s approach to risk management remains vigilant and careful.
I would like to thank my fellow shareholders and the Board for their support. I would also like to thank
all of my colleagues for their dedicated efforts and contributions to laying the foundations for a
successful future.
With kind regards,
Diego J. Veitia
Executive Chairman