The Portfolio Managers are permitted to exercise discretion on the choice of broker and method of execution (i.e., choice of trading algorithm or by broker’s trading desk) to allow the most favourable outcome for Northcape’s clients.
The factors taken into account when considering the broker and execution method include:
The above factors are used to determine the strategy used for the orders.
Alternate Brokerage Arrangement
A Soft Dollar Arrangement is defined as an approved arrangement whereby Northcape receives a benefit from a third party for directing an amount of commission to a stockbroker.
Northcape does not enter into arrangements of this kind unless the benefit accrues to its clients by:
If Northcape were to enter into any Soft Dollar Arrangement with a third party, it is required that:
Each calendar year, Northcape must provide a notification to its mandate clients of any Soft Dollar arrangements, which includes the benefits derived from these arrangements. Northcape should also notify mandate clients if it intends to enter similar Soft Dollar arrangements during the next 12 months. When requested by the client, the Manager must provide description of the product or service obtained through that client account’s brokerage. If any significant change in Northcape’s Soft Dollar Arrangements occurs before or after this disclosure, this should be disclosed by separate communication to investors.