Best execution policy – IBOSS Managed Portfolio Service (MPS)

IBOSS Asset Management (‘IBOSS’) is required to put in place an order execution policy and to take all reasonable steps to obtain the best possible results (or “best execution”) when executing client orders on behalf of Professional Advisers investing in the IBOSS Managed Portfolio Service on behalf of their Retail Clients.

Our best execution policy Is applicable to IBOSS clients who are classified as Professional Clients.

Our Best Execution Policy relates to all instructions to acquire or redeem Open Ended Collective fund holdings within the Model Portfolios, as part of the IBOSS Managed Portfolio Service, via a Platform Service Provider. For the Managed Portfolio Service, IBOSS place all trade instructions with the Platform(s) on which the Model Portfolios are administered, in accordance with the agreement held between IBOSS and the Platform. We do not place any trade instructions directly with the unit trust manager or open-ended investment company and it is the responsibility of the Platform(s) to ensure the onward transmission of any instruction received from us to the Unit Trust Manager, Open Ended Investment Company, Authorised Fund Manager, or Authorised Corporate Director.

The Platform has an obligation to execute orders in accordance with their Order Execution Policy.

IBOSS has an obligation to ensure that instructions to trade are issued to the Platform(s) in a timely manner and are compliant with our agreements with the Platform(s) and the Adviser.

IBOSS are obliged to consider a range of factors when submitting client orders; these are Price, Cost and Speed of Execution.

PRICE

The prices of a units/shares are calculated daily and are considered at the time of fund selection, in advance of the new quarter. Obtaining ‘best price’ is not a primary consideration for IBOSS when submitting trades, as we are obliged to give primary consideration to the agreed rebalancing process and associated timescales.

COST

Whilst IBOSS do not impose a specific cost for executing trades, there may be a cost imposed by the Platform(s) and this should be disclosed to the client where relevant. Any such cost is platform specific and outside the control of IBOSS, and therefore will not be taken into account by IBOSS when submitting trades.

A fund manager may impose a transaction charge when investing in a fund and any such costs will be considered at the time of fund selection, in advance of the new quarter. However, these costs will not be considered by IBOSS at the time of submitting trade instructions.

SPEED OF EXECUTION

Our main consideration when submitting trade instructions is that they are submitted in a timely manner, in accordance with our agreement with the Professional Adviser and in line with the below Rebalancing Process;

IBOSS Rebalancing Process

  • Instructions to trade within the model portfolios will be submitted quarterly by IBOSS to the Platform(s) within the first 10 days of February, May, August and November.
  • Trade instructions may include; an instruction to buy or sell units/shares in a fund, an instruction to allocate units to a Platform cash account, or the instruction to rebalance a Model Portfolio.
  • Instructions are submitted based on the percentage holding within the model portfolio.
  • All portfolios managed on behalf of the Adviser will be traded within the same working day, where possible.
  • Where it is not possible to place all trades within the same working day, trades will be submitted as soon as possible, usually the next working day.
  • Trades should be executed by the Platform within 2 business days.

IBOSS only provides trade instructions to the Platform(s) at a Model Portfolio level and does not issue instructions in relation to specific investor accounts. It is the responsibility of the Platform to allocate the trades to each investor linked to the Model Portfolios and to notify investors on whose account they have traded.

IBOSS regularly reviews the Order Execution Policy and Terms & Conditions for each Platform to which trades are submitted to ensure that they are able to execute the trades effectively and in accordance with the above process.

 

BEST EXECUTION POLICY – MGTS IBOSS OEIC SUB-FUNDS

IBOSS Asset Management (‘IBOSS’) is required to put in place an order execution policy and to take all reasonable steps to obtain the best possible results (or “best execution”) when executing client orders on behalf of Professional Advisers using the MGTS IBOSS funds on behalf of their Retail Clients.

Our best execution policy Is applicable to IBOSS clients who are classified as Professional Clients.

Our Best Execution Policy relates to all instructions to acquire or redeem Open Ended Collective Funds within the MGTS IBOSS sub-funds.

IBOSS place all trade instructions with the Authorised Corporate Director (‘ACD’) who administers the funds in accordance with the agreement held between the ACD and IBOSS. IBOSS do not place any trade instructions directly with the unit trust manager or open-ended investment company and it is the responsibility of the ACD to ensure the onward transmission of any instruction received from us to the Unit Trust Manager, Open Ended Investment Company, Authorised Fund Manager, or Authorised Corporate Director.

The ACD has an obligation to execute orders in accordance with their Order Execution Policy.

IBOSS has an obligation to ensure that instructions to trade are issued to the ACD in a timely manner and are compliant with our agreements with the ACD.

IBOSS are obliged to consider a range of factors when submitting client orders; these are Price, Cost and Speed of Execution.

PRICE

The prices of a units/shares are calculated daily and will be considered at the time of fund selection. However, obtaining ‘best price’ is not a primary consideration for IBOSS when submitting trades.

COST

IBOSS do not impose a specific cost for executing trades. A fund manager may impose a transaction charge when investing in a fund; any such cost is fund specific and outside of the control of IBOSS and will therefore not be considered by IBOSS at the time of submitting trade instructions.

SPEED OF EXECUTION

Our main consideration when submitting trade instructions is that they are submitted in a timely manner, in accordance with our agreement with the ACD and in line with the below requirements;

IBOSS Process

  • Instructions to trade will be submitted, as required, by IBOSS to the ACD within 1 business day of the decision to trade being finalised.
  • Trade instructions may include; an instruction to buy or sell units/shares in a fund, an instruction to allocate units to cash, or the instruction to rebalance the fund holdings.
  • Instructions are submitted based on the percentage holding required.
  • Trades should be executed by the ACD in accordance with the ACD’s Execution Policy.

IBOSS only provides trade instructions to the ACD at sub-fund level and does not issue instructions in relation to specific investor accounts. It is the responsibility of the ACD to allocate the trades to each investor account.

IBOSS regularly reviews the Order Execution Policy for the ACD to which trades are submitted, to ensure that they are able to execute the trades effectively and in accordance with the above process.

 

Part 1: top five entities used for the transmission or placing of client orders

Where we send investment applications or orders on your behalf to third parties (for example, to buy or sell investment holdings), we make every effort to ensure the best possible result for our clients. This is referred to as best execution. We may transmit or place the order via a third party platform (an online investment administration service), directly with a fund manager or with a stockbroker, to execute your order.

We’re obliged to disclose on an annual basis the top five firms that we send our client orders to. For the period covered, we only submitted trades via one firm for each investment offering. The tables(s) below relate to the period 01/05/2018 to 30/04/2019.

 

IBOSS MANAGED PORTFOLIO SERVICE – PROFESSIONAL CLIENTS
Class of investment Other investments (includes collective investments)
Notification if < 1 average trade per business day in the previous year N
Top 5 venues ranked in terms of volume (descending order) Proportion of volume (£) transmitted as a percentage of total in that class Proportion of orders transmitted as percentage of total in that class
AEGON RETIREMENT SOLUTIONS (PLATFORM) 100% 100%

 

MGTS IBOSS OEIC – PROFESSIONAL CLIENTS
Class of investment Other investments (includes collective investments)
Notification if < 1 average trade per business day in the previous year Y
Top 5 venues ranked in terms of volume (descending order) Proportion of volume (£) transmitted as a percentage of total in that class Proportion of orders transmitted as percentage of total in that class
MARGETTS FUND MANAGEMENT (ACD) 100% 100%
MGTS IBOSS OEIC – PROFESSIONAL CLIENTS
Class of investment Exchange traded products
Notification if < 1 average trade per business day in the previous year N
Top 5 venues ranked in terms of volume (descending order) Proportion of volume (£) transmitted as a percentage of total in that class Proportion of orders transmitted as percentage of total in that class
MARGETTS FUND MANAGEMENT (ACD) 100% 100%

Part 2: monitoring and review

  • We operate in accordance with our best execution policy (see pages 1 & 2)
  • Under the terms of our policy, we regularly assess the third parties available to us to identify those that will enable us, on a consistent basis, to obtain the best possible result when arranging for the execution of your orders.
  • The third parties that we use, also have responsibilities in relation to best execution and client order handling. We undertake periodic monitoring to make sure that they continue to meet our requirements. This review is carried out at least annually or whenever a significant change occurs that we feel could affect our ability to continue to obtain the best possible results for our clients.

There were no changes to Platform/ACD during the period covered by this report.