Global Evolution Manco (the “Company”) takes reasonable actions to detect and manage conflicts of interest that may arise and will endeavour to ensure that it is resolved fairly.
In doing so, the Company has adopted the Code of Conduct for Luxembourg Investment Funds established by the Association of the Luxembourg Fund Industry and has implemented a conflicts of interest management policy in accordance with the law of 17 December 2010 relating to undertakings for collective investment (the “2010 Law”) and the relevant CSSF regulations and circulars.
Identification of conflicts of interest
The Company appreciates that conflicts of interest might arise between the Company, its Managed Funds or between Relevant Persons. Situations may indeed arise where the interest of the Company and/or its Managed Funds may conflict with the interest of a relevant person including but not limited to the fact that:
- The Company and its managers and other Relevant Persons (including the Investment Manager and its managers) will likely continue to work on other projects with consequence allocation of time, services and/or functions;
- A Relevant Person may have sufficient power to achieve a financial gain or avoid a financial loss for the Company and/or its Managed Funds (including its managers and/or employees) at the expense of Investors;
- The appropriate allocation of fees and expenses generated in the course of making and evaluating investments may be unclear.
Furthermore, the Company is authorised by the 2010 Law to outsource the performance of one or several functions on its behalf to third parties (the ”Delegate(s)“).
- Situations may indeed arise where the interest of the Company and/or its Managed Funds may conflict with the interest of a Delegate including but not limited to:
- The possibility to achieve a financial gain or avoid a financial loss for the Company (including its managers and/or employees) at the expense of the Investors;
- The likelihood that a Delegate makes a financial gain, or avoids a financial loss, at the expense of the Company or Investors;
- Where the Company and the Delegate are members of the same group or have any other contractual relationship, the extent to which the Delegate controls the Company or has the ability to influence its action;
- Where a Delegate and an Investor in the Company are members of the same group or have any other contractual relationship, the extent to which the Investor controls the Delegate or has the ability to influence their action;
- The likelihood that the Delegate has an interest in the outcome of a service or an activity provided by the Company
- The likelihood that the Delegate receives or will receive from a person other than the Company an inducement in relation to the portfolio management activities provided to the Company in the form of monies, goods or services other than the standard commission or fee for that service;
- The possibility for delegates to involved in other financial investment or other professional activities which may cause potential conflict of interest with the Company.
Prevention of conflicts of interest
In order to prevent conflicts of interest, the Company has adopted, the following preventative steps:
- The Company's Code of Conduct and compliance with legal obligations put in place by the Company sets out and defines all the rules of good conduct applicable to everyone within the Company.
- The remuneration of the Company (e.g.: performance related fee) is structured in a way that minimizes conflicts of interest.
- The Company has ensured that the process for valuation of assets and calculation of the net asset value of all its Managed Funds are functionally independent from the investment management.
- The Company has separated the risk management function from the operating units, including from the function of investment management.
- The Company does not act as depositary. Depositary services will be provided always from external parties, which are not linked to the Company or beneficial owner’s of the Company.
- Internal controls, particularly those covering the personal transactions of staff, ensure this compliance and further support the prevention of potential conflicts of interest.
- In accordance with the Company's Code of Conduct the Company does not offer, give, solicit or accept gifts or invitations that are considered to be a source of conflict of interest with regard to obligations towards Investors.
- Measures to prevent or control the simultaneous or sequential involvement of a relevant person in separate investment management activities or other activities where such involvement may impair the proper management of conflicts of interest.
- Effective procedures to prevent or control the exchange of information between relevant persons engaged in investment management activities or other activities involving a risk of conflict of interest where the exchange of information may harm the interest of the Company and/or its Managed Funds and/or its Investors.
- The separate supervision of relevant persons whose principal functions involve carrying out investment management activities on behalf of (or providing services to) Investors whose interests may conflict, or who otherwise represent different interests that may conflict those of the Company and/or its Managed Funds.
- Use of outsourcing of the activities of depositary and paying agent, central administration (administrative, domiciliary registrar and transfer agent) and receiving agent share register analysis constitutes a preventative step by circumventing direct actions of employees or increasing the level of supervision.
- More information about the Conflict of Interest Policy is made available by the Management Company in hard copy free of charge to the investors, upon request.