Information about inducements

FCG Fonder AB (” the Fund Manager”) is a licensed fund manager for UCITS, national Non-UCITS (sw. specialfonder) and other alternative investment funds (“the Fund”).

The Fund manager received a fee for its services. The applicable regulations regarding such fees, commissions, and/or non-monetary benefits (“inducements”) can be found in the Swedish Financial Supervisory Authority’s (“SFSA”) binding rules for Fund Managers.

If an inducement is paid or provided to, or from, a third party (i.e. not the Fund or the Fund Manager) the inducement must be disclosed to the unitholders, be designed to raise the quality of the provided fund product or service, and may not prevent the Fund Manager from acting in the best interest of the Fund or unitholders.

Below you will find information about which kind of inducements that exist in relation to the Fund Managers business.

Fees for Portfolio Management services

The management fee that is paid to the Fund Manager from the funds covers portfolio management, investment analysis, administration, bookkeeping, records and registers, auditing, distribution, depositary services, and FSA’s supervisory charges. This fee is calculated on a daily basis as a percentage of the Fund’s value in accordance with the valuation principles in the Fund Rules. Some funds also charge a performance-based fee which is then described in the Fund’s Prospectus. In many cases the Fund Manager has hired an external portfolio manager to manage a fund, and then most of the management fee from the Fund is transferred to that manager.

The Fund also pays trading commissions, taxes etc. directly to third parties.

Fees that relate to investments in other funds

Fund-of-funds will pay management fee to the funds it from time to time invests in. The maximum fixed annual management fee of any underlying fund may not exceed 2 percent. At purchase and redemption of underlying funds that are managed by the Fund Manager no purchase or redemption fee may be charged. If one of the external portfolio managers that the Fund Manager has contracted invests the Fund’s means into another fund managed by that same portfolio manager, then the Fund will receive full discount on the underlying funds management fees.

Cost of investment analysis

The Fund Manager may receive investment analysis from third parties when managing the funds. In this case the Fund Manager ensures to separate the cost of the investment analysis from the transaction cost so that each cost is duly disclosed. In addition, each Fund has a predetermined annual budget for investment analysis costs that are allowed to be charged to the Fund, and the costs shall be drawn from this budget account. Any inducements paid to brokers or other investment analysis providers are based on assessments of the analysis services provided. The assessment is performed on a regular basis by the portfolio managers, and the funds will only pay for investment analysis that has been of use in the management of the funds.

Trades on the money markets are not paid for through commissions or transactions costs but instead by the “price spread” (difference between bid and ask prices). The spread is used by the broker to fund the investment analysis provided and thus this cost cannot be separated by the Fund Manager as above.

Cost of distribution

The Fund Manager may, directly or indirectly, pay commissions or fees to distributors of the Fund, for example to banks, securities firms and intermediaries. These distributors will be paid a distribution fee in accordance with a distribution agreement with either the Fund Manager or a sub-distributor. The inducement will be payed as a percentage of the management fee and usually amounts to 30 to 50 percent of the total management fee.

Unitholders pay the management fee to the Fund Manager as a percentage of the Fund’s value as stated in the Fund rules and Prospectus. The commission or fee paid to the distributor is not a fee that is charged on top of the management fee but is instead included. You can find more information about the distributors’ fees from these parties as it is a requirement also for them to disclose inducements.

If you wish to read more about inducements in the funds you will find, as applicable, more information in the respective Fund’s Key Investor Information document (sw. Faktablad), Prospectus, Semi-annual reports (sw. Halvårsredogörelse) and Annual reports (sw. Årsberättelse)

Should you wish to know more about inducements within our Fund Management services you can contact us at fondadmin@fcgfonder.se, or at +46(0)8 410 759 10.

This information was last updated in October 2020.