Principles of Savills Fund Management GmbH
The objective of this Best Execution Policy is to achieve the best possible results during transactions for the client portfolio.
As a matter of principle, portfolio managers’ trading decisions are not directly routed to trading venues. Instead, they are executed via intermediaries (brokers, banks, etc.). We endeavour to achieve the best execution of transactions by carefully selecting and monitoring intermediaries. We check that our intermediaries have the necessary arrangements in place to guarantee the best possible order execution.
The portfolio manager’s orders are generally placed in accordance with the following principles:
(1) Trading orders for financial instruments are placed at the best available terms, taking into account the information available at the time the order is placed. When selecting intermediaries, the investment company focuses on factors relevant to achieving the best possible result, including:
the price of the financial instrument,
the cost of order execution,
the speed of execution,
the probability of correct execution and settlement, and order volume and type.
To ensure the most suitable intermediary is selected, these criteria are weighted differently depending on the type of financial instrument and trading order.
(2) Orders for professional clients are placed with the aim of achieving the best possible result, taking into account all of the costs associated with the execution of the order. Accordingly, since it is common for financial instrument prices to fluctuate, the main consideration when selecting intermediaries is that they consistently ensure cost-effective, complete and timely order execution. In exceptional cases, other relevant factors may influence the selection of intermediaries (e.g. the market impact of the order and the security of settlement).
(3) Based on this weighting, we have drawn up a list of intermediaries to which we entrust trading orders in the area of portfolio management. If, taking into account the details of the order in question, the list offers a choice of several intermediaries, we select one at our discretion on a case-by-case basis.
During the business relationship, the client may issue instructions regarding the execution method for an individual transaction or for all transactions. Client instructions always take priority over this Best Execution Policy and are followed by us when placing orders.
If we forward orders to third parties (banks, fund management companies), these third parties issue instructions and apply controls to ensure that the orders are executed in accordance with their best execution policies. Orders forwarded to us by other banks or investment firms are exclusively treated as an instruction from the forwarding bank. We cannot take into consideration general instructions from the forwarding bank that do not concern a specific order.
When settling transactions, it may be necessary to purchase or sell certain financial instruments outside of a regulated market or multilateral trading facility (MTF). This may be the case, in particular, if the financial instrument is not listed on a stock exchange and cannot be traded on an MTF. In addition, a financial instrument’s market liquidity can be too low to guarantee appropriate pricing.
Separate approval for trading outside of a regulated market or MTF must be obtained from the client in the case of individual asset management mandates.
In rare cases, system failures or extraordinary market conditions may make it necessary to place an order in a manner that is inconsistent with this Best Execution Policy. We will strive to achieve the best possible result for the client in such circumstances, too.