A fund management company may in connection with its fund and portfolio management, only pay/issue or accept compensation in the form of charges, commissions or benefits (incentives) under certain conditions. Certain incentives paid or issued to or by a third party must be designed to improve the quality of the relevant operations and must not prevent the manager from acting in the best interest of investors.
Information about the incentives Catella Fondförvaltning AB (the "Fund Management Company") pays or accepts is provided below. More detailed information can be provided to investors upon request.
Compensation within the framework of fund operations
The Fund Management Company is paid compensation by the funds for their management, administration, auditing, accounting and record-keeping, as well as for the costs of the supervisory activities of the Swedish Financial Supervisory Authority (Finansinspektionen). The compensation is comprised of fixed and variable management charges in accordance with the fund rules for each fund.
In addition to this compensation, the fund pays any taxes, custody charges, execution charges (brokerage), analysis costs and the equivalent to third parties. The funds only pay analysis costs to the extent such costs are to the benefit of the fund and attributable to the fund's investment policy. The funds' brokerage charges is not known in advance and is paid by the funds on a current basis in connection with the funds' purchases and sales of financial instruments. The company uses a so-called budget model for calculating analysis costs, which means that the analysis cost is calculated and charged to the funds completely independent of the transactions carried out in underlying securities of each fund. Instead, the funds are charged daily-accrued costs based on a budget determined annually. The total cost of brokerage charges, analysis and other transaction-related expenses paid by a fund during one year, with specific reference to the specific cost of analysis, is shown in the fund's respective annual reports.
Compensation in connection with discretionary portfolio management
In connection with discretionary management mandates, the Fund Management Company is paid fixed and variable management charges, as agreed, equal to a specified percentage of the assets under management.
Compensation to distributors and others
The Fund Management Company has entered into agreements by which the Fund Management Company pays compensation based on, and amounting to a maximum of, the management fee paid by the Fund Management Company's managed funds. The contracts are typically entered into with distributors (such as banks, insurance brokers and securities companies) who sell the units of the Fund Management Company's funds to the end investors, but may in special cases also be entered into with other investors. The compensation is normally paid as a percentage of the management fee (either the fixed fee or, where relevant, the performance based fee) that the Fund Management Company is paid from the amount of capital which is invested by the distributor or investor. The above compensation may also be paid to investors that make use of the Fund Management Company's funds as a component of combined structured products.
The Fund Management Company receives no compensation in the form of goods or services.