Best execution, best selection and research policy summary
In accordance with applicable regulations, AMUNDSEN IM, hereafter the “Management Company” takes all reasonable steps to obtain the best possible result for its clients when executing orders in financial instruments. To this end and in accordance with the regulations, the Management Company shall establish and implement :
- a Best Execution Policy which specifies, for the purpose of transparency, the conditions under which orders received from clients are executed at the execution venues. It describes the sufficient measures taken by the Management Company in order to obtain the best possible result;
- a policy of best selection of execution brokers to which it transmits an order from its clients for execution, enabling it to obtain the best possible result.
1.1. Monitoring of best execution
For both collective and private asset management, AMUNDSEN IM takes sufficient steps to achieve the best possible result when executing orders.
Within the framework of best execution, the Management Company executes transactions on the financial instruments listed below:
The management company takes into account the following criteria when executing orders on behalf of UCIs or portfolios managed:
- The characteristics of the order concerned (in particular the size and nature of the order),
- The characteristics of the financial instruments that are the subject of this order,
- The characteristics of the execution venues to which this order can be routed,
- The objectives, investment policy and risks specific to the UCI or the management mandate.
The best possible result for the execution is assessed in the light of the following factors:
- total cost of execution,
- speed of execution,
- probability of execution.
Places of execution
Depending on the Best Execution Policy adopted by each selected financial intermediary, the orders transmitted may be executed:
- Regulated markets
- Multilateral trading systems
- Organised trading systems
- Systematic internalisers
- Market makers
- Other liquidity providers
- Entities performing similar tasks in a country not party to the Agreement on the European Economic Area.
1.2. Selection and evaluation of executing brokers
The Management Company acts with all due skill and care in the selection of intermediaries to which it transmits client orders for execution. The criteria for the selection of intermediaries differ according to the type of assets handled.
Selection criteria for equity
For equity orders, counterparties are selected according to the following criteria:
- Price at which the transaction is carried out,
- Speed of execution,
- Likelihood of execution and settlement,
- Nature of the order and its size,
- Any other consideration relating to the execution of an order.
Monitoring of executing brokers
The managers monitor relations with execution Brokers on an ongoing basis by applying best execution to orders that have been processed in response to changes in market and environmental conditions, in the exclusive interest of the UCIs and the portfolios under management.
The Management Company monitors the effectiveness of its policy for selecting executing brokers on the basis of an annual assessment of the selected intermediaries.
Amundsen has established a Best Selection and Best Execution Committee to review, evaluate and validate the list of brokers use for the executions. The committee meets on a yearly basis to review the list of brokers.
1.3. Selection and evaluation of research providers
The providers are selected by the AMUNDSEN IM management team.
The review and evaluation of the selected providers is carried out annually according to the following criteria:
- Universe of coverage (geographical areas) including midcaps,
- Segmentation global brokers and multi-local brokers or local franchises,
- Quality of analysts by sector and ranking of research providers,
- Access to specific analysts,
- Quality of the newsflow,
- Quality of exchanges with analysts,
- Corporate access,
A research budget is updated annually by the management team and validated by the Management Company’s management.
1.4. Report on intermediation costs
In accordance with the provisions of Article 319-18 of the RG AMF (FIA), the Management Company draws up a report relating to intermediation fees where such fees represent for the previous financial year an amount in excess of €500,000.
Date of last update: 29/04/2021