All investment services providers should comply with the obligation to act in the best interest of their clients when executing orders resulting from investment decisions related to portfolio management.
To this end, in its capacity as a portfolio management company, Carmignac Gestion is required to take all reasonable measures to obtain the best possible result for its clients. Such measures comprise more specifically the obligation to select the intermediaries to which orders are transmitted for execution (brokers and financial counterparties) and whose execution policies guarantee the best possible result when executing orders sent on behalf of its clients.
In accordance with the regulations, CARMIGNAC Gestion has put in place an Order Execution Policy. The Order Execution Policy notably requires that the orders should be registered and treated in a timely and accurate manner, with regard to market conditions.
This Order Execution Policy is based on:
– a standardized process for the selection of brokers and financial counterparties;
– a process for the selection of the place of execution;
– an analysis of the reporting provided by the brokers and financial counterparties.
Carmignac Gestion uses a multi-criteria approach to select intermediaries guaranteeing best execution of orders.
The criteria applied are both quantitative and qualitative and depend on the markets for which the intermediaries provide services, in terms of geographical coverage (global, pan-European or local intermediaries) and financial instruments traded (intermediaries specialized in the equity, interest rate, convertible or derivatives markets).
Every criterion is subject to an assessment, which is allocated a weighting coefficient, thereby enabling an overall rating to be attributed, subsequently allowing all intermediaries analyzed to be ranked with a view to a potential modification of list of the intermediaries.
The analysis criteria notably cover the availability and proactiveness of the intermediaries, their financial stability, speed and quality of execution and transaction cost.
The intermediaries’ ratings are updated every year. Based on this, the list of selected intermediaries is also reviewed annually.
We will inform you of any major change to our selection policy by displaying an updated version of the selection policy on our website: www.carmignac.com.