Trade Management Policy

Best Execution
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:

  • Size of order vs Average Daily Volume
  • Reliable minimum liquidity on day to day basis
  • What day of the week or are any Australian or important overseas markets shut
  • Is the stock in the news or reporting
  • Closing match volume is large
  • Commission rate is taken into account when deciding which broker to deal with (high touch vs algorithms)

The above factors are used to determine the strategy used for the orders.

Alternate Brokerage Arrangement

A Commission Sharing Arrangement (CSA) is 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 satisfying all of the below:

  • Assisting Northcape to provide services to its clients,
  • Primary use is to assist Northcape’s investment decision-making process,
  • Amount of commission was reasonable in relation to the value of the brokerage and research services provided.

If Northcape were to enter into any CSA with a third party, it is required that:

  • Each arrangement be disclosed to the Northcape Board of Directors,
  • Proper records would be kept of the service and consideration, and
  • No group of clients subsidise another group of clients, i.e., only clients that receive the benefit contribute their brokerage to the arrangement and all benefitting clients contribute proportionally to the benefit received.

Each calendar year, Northcape must provide a notification to its mandate clients who were charged any CSA, which includes the benefits derived from these arrangements. Northcape should also notify mandate clients if it intends to enter similar CSA 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 CSA occurs before or after this disclosure, this should be disclosed by separate communication to investors.

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Important Notice and terms of use

The information contained in this website is general information and has been prepared by Northcape Capital Pty Ltd (ABN 53 106 390 247, AFSL 281767) (“Northcape”) for use by institutional investors, consultants, financial advisers and other wholesale clients (as defined in the Corporations Act 2001).

The information in the website is for informational purposes only and does not take into account the particular circumstances, investment objectives and investment needs of any investor. Investors should consider their circumstances and any professional advice that they require before making an investment decision. The information in this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Northcape to any registration or other requirement within that jurisdiction or country.

To proceed to the website, you must confirm that you meet an investor category for which this website is created, and that you understand and agree to the terms above (this “Notice”) and the website’s Terms of Use.

Important Legal Information:

By clicking on “I Agree” below:

• You confirm you are a ‘wholesale client’ (as defined in the Corporations Act 2001), or person acting on behalf of a wholesale client;
• You confirm you are not a US-person, and
• You understand and agree to comply with the terms of this Notice and the website Terms of Use, including updates as set out therein.

Important notice and terms of use

The information contained in this website is for general information and has been prepared by Northcape Capital Pty Ltd (ABN 53 106 390 247) (“Northcape”) for use by institutional investors in the United States, including their consultants and persons acting on their behalf.

The information in the website is for informational purposes only, and provides a general overview of Northcape’s investment philosophy, investment approach and how to contact us for further information. The information in the website does not take into account the particular circumstances, investment objectives and investment needs of any investor. Investors should consider their own circumstances and any professional advice that they require before making an investment decision.

The website does not provide recommendations, does not constitute an offer to sell or buy any securities, and may not be used or relied upon in connection with any offer or sale of securities. Those who are not considered an institutional investor or person acting on behalf of an institutional investor should not review or act upon the information provided via the website. The information in this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Northcape to any registration or other requirement within that jurisdiction or country.

To proceed to the website, you must confirm that you are an institutional investor (or acting on behalf of institutional investor), and that you understand and agree to the terms above (this “Notice”) and the website’s Terms of Use.

Important Legal Information:

By clicking on “I Agree” below:

• You represent and certify that you are an institutional investor or a person acting on their behalf in the United States;
• You understand and agree to comply with the terms of this Notice and the website Terms of Use, including updates as set out therein.