The legal information will be continuously amended and adapted.
Principles for dealing with conflicts of interest
As of: December 2017
Information on how ACATIS Investment deals with conflicts of interest
As an investment company, we have the responsibility to act exclusively in the interest of our investors and conduct our business truthfully, with the necessary care, diligence and honesty, acting in the best interest of the investment funds we manage, the investors in these investment funds and the integrity of the market.
Conflicts of interest cannot always be excluded, particularly in an investment company that provides a broad range of services to many investors and clients.
Services of ACATIS Investment
Management of domestic investment assets
- Investment assets under the UCITS Directive
(Secondary) services relating to the management of investment assets
- Individual portfolio management and investment advice
- Distribution of investment units
- Transactions relating to the investment of own assets
- on ancillary services directly related to the management of investment funds.
As directly associated with the management of investment assets
(Secondary) services are outsourced to Universal Investment:
- Portfolio management services for investment assets managed by us, e.g. rule-based portfolio management, overlay management, currency and value hedging management, securities lending services, collateral management and transition management services
- reporting services, e.g. IFRS or HGB reporting, risk reporting, VAG reporting, direct investment reporting, performance analysis
- Risk analysis and other additional risk management services
- Fund accounting and related tasks for external capital management companies. Fund accounting and related tasks for external custodians
- support for investment advisors and asset managers in investment border checks
- support in the investment boundary audit for custodians working for investment funds managed by us
We have commissioned the following essential services from third parties, whereby in individual cases the third party may also subcontract them
- Depository for investment assets
- Portfolio management of financial instruments
- Investment advice in relation to financial instruments
- Broker and counterparty for financial transactions
- Execution of trading orders
- Risk management data supplies
- Internal Audit
- Legal advice
- Tax consultancy
- Consultant services
- Performance analysis
- Services for exercising voting rights
- Data suppliers, e.g. index data, WM data service, ratings
- IT services (provided by ACATIS Research GmbH )
- Distribution services
ACATIS Investment is owner-managed. Owners are:
Dr. Hendrik Leber
Dr. Claudia Giani-Leber
Alta Vista Corporate Finance Beratung GmbH
ACATIS Investment Kapitalverwaltungsgesellschaft mbH holds interest the following affiliated companies:
- ACATIS Research GmbH
- ACATIS Service GmbH
- Quantenstein GmbH
- 2iQ Research GmbH
- NextGen Alpha AG
Please find below our policies for dealing with conflicts of interest, outlined in accordance with the applicable statutory requirements.
Potential conflicts of interest
Conflicts of interest can arise between
- our company, other companies within our group, our management, our employees, external companies and individuals with whom we have contractual arrangements, other third parties, the investment funds and insourcing mandates we manage and our investors or
- between individual investors and clients or
- between our investors and the investment funds we manage or
- between different investment funds we manage
Conflicts of interest could also arise between our company and asset managers mandated by us and other outsourcing companies, investment advisers or custodians.
Conflicts of interest that could significantly harm the interests of the investment assets or their investors may arise, in relation especially to:
- Incentive schemes for directors or employees of the Company, other companies within our Group or external companies that we have contracted to provide services to enable collective portfolio management
- Personal transactions with assets that may be held in the investment assets managed by us by our directors or employees or the directors or employees of companies that we have contracted to provide services to enable collective portfolio management
- Reallocations to investment assets
- Improvement in fund performance as of the reporting date ("window dressing")
- Transactions between the Company and the investment assets managed by it or individual portfolios or transactions between investment assets managed by the Company and / or individual portfolios
- Summary of several orders ("block trades")
- The commissioning of closely associated companies and persons
- Single plants of considerable size
- „Frequent Trading“
- The determination of the cut-off time
- IPO allocations
- The transfer of one or more functions to another company
- The exercise of voting rights in the portfolios
- The tasks of the depositary
- Investors who wish to redeem their investments and investors who wish to repurchase their investments
- The investment management objective of investing in illiquid assets and the redemption principles of the investment fund
Measures to prevent, manage and monitor these potential conflicts of interest
ACATIS Investment Kapitalverwaltungsgesellschaft mbH has organisational and administrative mechanisms in place to identify, prevent, solve, manage and observe/monitor conflicts of interest in order to avoid that conflicts of interest inflict serious damage to investment funds and investors.
In particular, we have set up a compliance organisation that monitors said mechanisms independently and regularly trains all our employees on regulatory requirements and on our in-house guidelines. We have set ourselves high ethical standards for dealing with investors, clients and business partners by creating sensitive areas and Chinese walls between individual lines of business, as well as between us and external third parties mandated by us, separating lines of business and responsibilities and implementing organisational guidelines. We expect our business partners to maintain equally high ethical standards. Particular mechanisms are in place to avoid conflicts of interests in our independent risk-monitoring function.
If the organisational arrangements we have put in place to identify, prevent, solve and monitor conflicts of interest in order to avoid the risk of negative implications on investor interests prove insufficient, we will inform investors accordingly in advance and develop countermeasures.
Apart from the statutory requirements, our company has also accepted and implemented the Code of Conduct issued by the German Investment Funds Association (BVI) as a standard for dealing properly and responsibly with our investors’ capital and rights.
We have also taken the following measures in detail
- Our remuneration system and the way in which our employees deal with secondary activities do not create any incentive to place personal interests above those of the investment assets or investors and clients we manage
- We have committed the investment advisors and asset managers we contractually bind to avoid conflicts of interest.
- We have established rules for personal transactions that are continuously monitored by the Compliance department and maintain a blacklist that prohibits personal transactions with certain assets in order to counter potential conflicts of interest
- We have implemented rules on disclosure and how to deal with the acceptance and granting of benefits
- We continuously monitor the frequency of transactions in the investment funds we manage in order to prevent investors from being disadvantaged by the shifts in the investment assets
- We have taken measures to prevent a window dressing of the fund performance in the investment assets we manage as of the reporting date.
- We have published our "Principles of Order Execution"
- Apart from the investment of our equity capital, we do not conduct any transactions for our own account with investment assets or individual portfolios managed by us and conduct transactions in securities between different investment assets managed by us only at the request of the investors concerned or for the purpose of achieving better trading results - without any of the investment assets involved being disadvantaged thereby
- The combination of several orders ("block trades") takes place on the basis of a uniform allocation principle
- Where we commission closely associated companies and persons (in particular our subsidiaries) (e.g. with the function of IT service provider), we disclose this to investors
- We counter market impact, which discriminates against the investment assets through individual investments of considerable size, with internal monitoring measures.
- We counter "Frequent Trading" through our rules for personal transactions and continuously monitor the investment funds we manage in this regard
- We have agreed cut-off times with our custodians to counter speculation against the investment assets we manage
- Our uniform internal allocation principles apply to IPO allocations
- One or more functions are transferred to another company with the aim of broadening the range of services we provide
- The voting rights in the portfolios are exercised on the basis of the recommendations of an external, neutral consulting firm in accordance with the BVI's analysis guidelines
- The depositaries act independently of our company and are contractually obliged by us to act exclusively in the interests of the investors
- We take into account the interests of investors who wish to return their investments and investors who wish to maintain their investments in investment assets in our internal liquidity management and through our internal principles for the revaluation of the investment assets we manage
- This also applies to the conflict between the investment management objective of investing in illiquid assets and the redemption policy of the investment fund
Should our company be unable to avoid a conflict of interests, we will inform you of the nature of the conflict and its source.
Unavoidable conflicts of interest may arise due to the fact that our investment funds, for the management of which our firm receives a management fee, may invest in our own products; and we might in some cases additionally receive a distribution fee. Similarly, our investment advisors or asset managers may acquire or recommend the purchase of products for the investment funds that are managed or advised by those same investment advisers or asset managers, who receive a separate management or advisory fee for such products. If such is the case, we seek to prevent damages to investors by ensuring that these products may only be acquired after objective deliberation of whether the purchase is in the best interest of the investors.
The responsibilty over the relationship management with every single client of ours has been assumed by one of our managing directors, who are commited to treat all of our clients equally and not to favor or disfavor any client compared to our other clients. English translation not legally binding – in case of any discrepancies please refer to the German version.
Alternative dispute resolution for private investors/clients
ACATIS Investment Kapitalverwaltungsgesellschaft mbH is affiliated to the “Ombudsstelle für Investmentfonds des BVI”, the ombudsman for the German asset management industry. Private investors/ clients can appeal to the “Ombudsstelle für Investmenfonds” to settle disputes with the company. This arbitration body provides for settlement of disputes with regard to the German Investment Act by an independent and neutral ombudsman. Further details are set out in the “Rules of procedure of the Ombudsstelle für Investmentfonds des BVI”. Requests for arbitration should be addressed in writing to: Büro der Ombudsstelle des BVI, Unter den Linden 42, 10117 Berlin.
More information about the arbitration body and its arbitration scheme is available under www.ombudsstelle-investmentfonds.de .
ACATIS Investment's voting rights guidelines for investors
ACATIS Investment successfully manages capital investments for investors, including many investments for private and occupational pension plans. In the aim of meeting its responsibility to safeguard investor interests, ACATIS Investment exercises the shareholder and creditor rights attaching to the investment funds it manages in line with the interests of investors and sound corporate governance practices.
Our voting rights guidelines are based on the following principles:
- All decisions are based solely on investor interests and the benefit to the relevant investment fund.
- Decisions regarding the exercise of voting rights are taken independently of third-party interests.
- Market integrity must be preserved in every case.
The "Principles for the Analysis of Shareholders' Meetings (Analyseleitlinien für Hauptversammlungen, "ALHV")", formulated by the Bundesverband Investment und Asset Management e. V. (BVI), form the basis for our voting policies and how we exercise voting rights. This industry standard lays the foundation for a responsible handling of investors' capital and rights. This industry standard is aligned with the interests of investment funds managed by ACATIS Investment and is therefore generally applied to all investment funds, unless it is necessary to deviate from these voting rights guidelines for individual investment funds in the interest of investors, market integrity or the benefit to the relevant investment fund. Voting rights are exercised with respect to foreign assets only if the high cost and/or effort associated with doing so is justified.
ACATIS Investment will provide investors with details regarding measures taken with respect to their investment funds based on these voting strategies free of charge upon request.
ACATIS Investment does not receive reimbursements of any form of expenses incurred in the context of transactions attributable to the investment funds it manages. ACATIS Investment has no soft commission arrangements with brokers. Nor has it arranged, either for its own account or for the account of investment funds it manages, for any commissions for the benefit of investment units which invest in investment funds managed by ACATIS Investment.
In case ACATIS Investment receives any commissions for the investment in target investment units or other financial instruments it credits them to the relevant investment fund; these commissions are disclosed under "Other income" in the profit and loss account in the relevant fund’s next annual report. Commissions paid out in aggregate amounts for multiple investment funds are distributed on a pro rata basis to the relevant investment funds.
ACATIS Investment will provide investors with additional details regarding inducements upon request.
The Company normally passes some of its management fee on to intermediaries in consideration for distribution services. This may account for a considerable proportion of said fee. The Custodian and Investment Consultancy Firm or Asset Management Company may use some if the fees they receive to support the distribution activities of intermediaries; said fees are usually based on the level of mediation involved.
The Company, Custodian and Investment Consultancy Firm or Asset Management Company may, at their discretion, agree with individual investors regarding the partial repayment to these investors of fees received. This applies in particular if institutional investors invest large amounts directly and on a long-term basis.
The following Best Execution Principles (hereinafter referred to as "Principles") specify the manner in which ACATIS Investment Kapitalverwaltungsgesellschaft mbH will ensure that buy and sell orders for assets are executed consistently in the best interests of the investment fund or the investor.
I. Scope of application
Our firm has implemented processes and measures designed to ensure the requisite due diligence and integrity, lawful and professional conduct, compliance with market standards and, above all, the safeguarding of the best interests of the investment fund or the investor.
These Principles apply to trades involving financial instruments or other assets executed by our firm for the account of the investment funds managed by us. If trades are executed by our contract partners, the best execution principles of the respective contract partner shall apply.
In order to ensure best possible execution in these instances also, we will take care to ensure that any best execution principles adopted by the relevant contract partners are consistent with our Best Execution Principles. If this is not the case, we will instruct our contract partners accordingly.
II. Execution rules
In principle, compromises must always be made between conflicting objectives during execution. The most important goals include:
- The greatest possible speed with which an order is implemented.
- The highest possible level of security with which an order is actually executed.
- The closest possible proximity of the execution course to the course at which the investment or divestment decision was made.
- The smallest possible influence of the order on the market (also known as market impact).
- The lowest possible level of settlement costs, including brokerage costs, bid-ask spread, third party costs, booking costs and others.
- The lowest possible complexity costs from monitoring the most diverse order channels and from settlement.
It is always necessary to weigh up the objectives. Execution techniques change over time and it must be monitored regularly whether the optimal route to the target may change over time.
Experience has shown that in the case of securities orders, decisions have to be made between the following ideal business partners:
- A well-networked local broker who can identify buyers and sellers for second-line stocks on the basis of his knowledge of the market participants.
- A global provider who, due to its size, can process sufficient order volumes at low cost.
- An intelligent algorithm that achieves market-friendly execution at minimal cost via a wide variety of settlement channels.
Trades may generally be executed using a variety of execution channels or venues, such as stock exchanges or other trading venues, in Germany or abroad, on a trading floor or via electronic trading platforms. We place all trades in financial instruments for the assets managed by us via a broker (full-service broker, broker dealer, market maker) on regulated markets, exchange-like trading systems or systematic internalisers. Financial instruments traded outside regulated markets, MTF (Multilateral Trading Facility) or OTF (Organized Trading Facility) are executed directly with the counterparty in question on the basis of standardized master agreements.
We take into consideration the following factors when selecting specific trading channels and partners for the products listed below in light of the objectives, investment policy, and specific risks of each investment fund, as well as the particular features of the orders, assets and execution venues. The weighting of each factor follows from the order in which it is listed below, with the factors listed first having the highest weighting.
2. Transaction costs
3. Instrument and order features, market conditions
4. Quality, speed and probability of execution
The purchase or sale of investment units will be carried out via the individual asset management companies or depositary. In exceptional cases, such purchases or sales may be executed via the stock exchange. Exchange traded funds (ETFs) are normally traded on a stock exchange.
III. Consolidation of Orders
We may bundle buy and sell orders from different investment funds managed by us and execute them as aggregated orders (collective order / block order) if it appears expedient and in the best interests of the relevant investment funds or investors based on the order volume, securities type, market segment, current market liquidity and price sensitivity of the security being traded.
We hereby note that bundling may place individual orders at a disadvantage. However, we will only bundle orders if it is generally unlikely that individual investment funds or investors are placed at a disadvantage. Executed block orders are allocated to the individual investment funds on a pro rata basis. Partially executed block orders this may result in exceptions to the foregoing if the partially executed orders are allocated based on minimum denominations.
If a new issue can be subscribed at several brokers, the possibly differing allotment ratios of each broker with whom a subscription is made are those which apply.
IV. Review of Principles
Our Principles are reviewed annually. Moreover, if there are indications of a material change having occurred that no longer guarantees order execution in the best possible interests, we also perform a review within an appropriate period. We notify investors invested in the assets managed by us of any material changes in the Principles.
V. Evaluation of execution quality
We also regularly review the quality of the execution of the buy and sell orders by the trading partners named in these principles. Risk control, middle office and portfolio management alongside a group-wide risk committee are responsible for monitoring the quality of the executions.
Trading places and practices are constantly in flux. Only empirical testing shows which execution method is optimal for the assets under management. For this reason, we regularly test the execution quality of various brokers and trading instructions.
In particular, it is important to check the quality of the algorithms offered by brokers. The parameters to be set include limits, time periods, participation rates, degree of aggressiveness and trading venues addressed (exchanges and pools). In addition to broker costs, the criteria for the assessment include the proximity of the price achieved to the Arrival Price and the Volume Weighted Average Price over the duration of the actual execution. It must also be considered to what extent an order moves the price and thus constitutes the market (and thus also the VWAP). The sum of these costs is measured per order, outliers are detected, and summary evaluations allow a judgement to be made about certain execution paths.
Policy on Handling Complaints
The satisfaction of our clients is our top priority. Therefore it is important for us to give you the opportunity to voice criticism. On this basis, ACATIS Investment Kapitalverwaltungsgesellschaft mbH has set up a complaints office. The aim of ACATIS Investment's complaints management system is to ensure the appropriate and timely processing of client complaints. The processing of complaints is free of charge for investors.
You can draft your complaint either in German or English.
In the case of complaints by post, please use this address:
60325 Frankfurt am Main
Electronically transmitted complaints can be sent to the address: beschwerdeacatisde
You can reach us by telephone from Monday to Friday on working days from 9 a.m. to 5 p.m. on +49 69 97 58 37 0.