Best execution policy
Storebrand Asset Management (SAM) manages mutual funds and alternative investment funds, as well as individual portfolios, on behalf of customers. SAM makes investment decisions but does not make orders directly on an exchange. Orders are placed with other investment companies that are responsible for executing the order in the market according to instructions provided by SAM. For instruments not traded on an exchange, orders will be placed directly with various investment companies acting on their own account in the relevant instruments.
SAM chooses external investment companies to execute orders. The requirement to achieve best results when executing orders, taking into account instructions provided by SAM, rests on the investment companies. SAM shall verify that the executing company has effective procedures, systems and arrangements that ensure that SAM can comply with its Best Execution obligations.
Placing of orders and order execution
When SAM makes investment decisions on behalf of funds or individual portfolios, SAM shall take all appropriate measures to achieve Best Execution. Achieving Best Execution takes into account transaction prices and transaction costs (total amount to be paid), speed, likelihood of implementation and settlement, order volume, type of order and other relevant conditions for the order. SAM bases its evaluation of the importance of the various factors on the following criteria:
- The funds and individual portfolios’ objectives and investment strategy as well as the risk and return profiles
- The type of order
- The characteristics of the financial instruments included in the order
- The characteristics of the trading systems and trading venues where the order can be placed
If customer orders are executed on behalf of a non-professional customer, Best Execution will be determined by the total amount that the customer will pay in connection with the order execution. In general, the total amount to be paid will be the most important factor in assessing the achievement of Best Execution, but if pure quantitative criteria are not appropriate, qualitative assessments will also be used.