Regulatory information

In compliance with articles 314-100 to 314-102 of the “Règlement Général de l’Autorité des Marchés Financiers” (General rules of the French Financial Markets Authority), Montségur finance has settled a procedure called “voting policy” presenting the conditions under which it intends to exercise the voting rights attributable to the securities managed by Montségur Finance.

This procedure is available at Montségur Finance’s headquarters.

 

Exercising the voting rights

Montségur Finance will have to vote for every security held representing at least 6% of the mutual funds’ assets managed by the company and/or when the company holds at least 3% of the issued securities by a single issuer for the same type of securities (e.g. equities or bonds).

Below these thresholds, the asset management company doesn’t have a significant and influent stake in voting rights’ terms.

Foreign companies for which it could be especially complicated to vote (i.e. lack of information, securities’ blocking over a long period of time…) are excluded.

 

Voting policy principles

Fund managers, or the person mandated by them, will vote with full independency for or against the proposed resolutions.

When fund managers invest in a company, they concur with the company’s management project and trust them.

However, they will scrupulously follow AFG’s recommendations (French financial management association).

Some delicate topics are studied every time and in a meticulous fashion, they relate to propositions such as:

  • Equity issuance without preferential subscription rights for the people already shareholders
  • Capital increase in case of a public bid and any other “anti” public bid measures
  • Issuance of equity warrants or any other security giving access to the capital at the exclusive benefit of a defined category of shareholders (employees for example) resulting in a dilution for the other shareholders

As a consequence, in these precise cases of minority shareholders’ defense (stakeholders of Montségur Finance’s mutual funds are minority shareholders), the asset management company retains the right to vote against such resolutions.

 

Conflict of interest

Montségur Finance is an independent asset management company, owned by its directors and employees, and doesn’t rely on any financial institution with several activities that could lead to conflicts of interest.

As stated in the company’s deontological regulation, available on demand, fund managers will imperatively exclude any security that could lead to a conflict of interest from their working universe.

Furthermore, each company’s employee must declare the accounts they hold as well as the accounts of their surroundings managed by them. Operations on these accounts are subject to quarterly internal control.

 

Method for exercising the voting rights

Montségur Finance, for the sake of voting rights’ implementation, favors postal voting but retains the right, depending on the circumstances, to resort to vote with physical attending at the shareholders’ meetings or by empowering the company’s CEO or exceptionally through a proxy.

 

Report on the exercise of voting rights

Montségur Finance writes a report on the exercise of voting rights within 4 months following the closing of its fiscal year (December the 31st).

This report is available at Montségur Finance’s headquarters: 39, rue Marbeuf, 75008 Paris, France.

 

You can also download it by clicking on the following link:

PDF file Report on the exercise of voting rights (French)

In compliance with our procedures, you may send your remarks and claims by mail to the following address:

Montségur Finance
Service de la Conformité
39, rue Marbeuf
75008 Paris, France

Or by email to the following address: rcci@montsegurfinance.com
Every claim will be subject to an acknowledgement of receipt within a three days period maximum, except if the answer itself is brought during that period. The company is committed to answer to the client in the two months following the claim’s acknowledgement of receipt.

In the absence of a satisfactory answer, we invite you to get in touch with the mediation service of “l’Autorité des Marchés Financiers” (AMF) thanks to the following address:

Médiateur de l’AMF
Autorité des Marchés Financiers
17, place de la Bourse
75082 Paris cedex 02, France

The AMF’s mediation charter is available at the following link: http://www.amf-france.org/Le-mediateur-de-l-AMF/Le-mediateur-mode-d-emploi/Charte-de-mediation.html

By electronic form: http://www.amf-france.org/Formulaires-et-declarations/Contact.html?lst_select_form_theme_id=mediation

Intermediaries selection

Montségur Finance, as an asset management company, has the obligation to choose its intermediaries whose execution policy will ensure the best possible result during the order execution transmitted on behalf of its clients / funds.

The quality of the analyses, the corporate access or even the research desk availability are especially taken into account.

Montségur Finance has established an evaluation grid for its financial intermediaries and counterparties. This grid has a triple objective:

• To guarantee a total independency regarding the choices made
• To justify these choices
• To monitor the evolution of the services supplied

« Best execution »

Montségur Finance is categorized as a professional customer in the eyes of the intermediaries it interacts with. This allows the company to get the “best execution” policy from its intermediaries that it should itself guarantee to its customers.

Montségur Finance considers that the global transaction cost is a required condition but not necessarily sufficient.

For example, cost criteria, rapidity, execution and settlement probability, size as well as orders’ nature are all taken into account. Concerning some illiquid stocks, the broker’s ability to offer blocks of securities could be determinant.

Montségur Finance’s ESG policy

The asset management company’s stance regarding the standards relative to the respect of social and environmental objectives as well as governance quality.

The MSF funds range doesn’t include any ESG approved fund.

Nevertheless, the investment process on which the fund management relies places great importance to the study and respect of these standards.

Indeed, the management style rests on a rigorous selection of the companies entering our portfolios based on an in-depth financial analysis.

Fundamentals criteria such as the financial structure, the management’s transparency level and governance, the social and HR policy as well as the behavior when facing environmental constraints are an integral part of the diverse elements studied.

Even if those criteria are not legally mandatory, violating those principles could forbid us to invest or could lead to a disinvestment from the company.

Any regulatory evolution regarding the adoption and application of these ESG criteria is subject to a constant monitoring by the asset management’s compliance officer.

As a portfolio management company and as part of its activities, Montségur Finance may face conflicts of interest that could potentially prejudice its clients and unitholders’ interests.
 

Conflict of interest identification

Potential conflicts of interest at Montségur Finance can be of three kinds:

  • A conflict of interest between one or more clients of Montségur Finance or mutual funds managed by Montségur Finance. By executing an order, the company could favour one or more clients or one or more managed mutual funds at the expense of the others.
  • Montségur Finance could favour its own interests at the expense of its clients or unitholders.
  • One or more Montségur Finance employees could privilege their own interests at the expense of clients or unitholders.

Montségur Finance has prepared a conflict of interest risks mapping in order to review the situations the company might face.

 

Conflict of Interest Prevention

In accordance with Article 313-21 of the General Regulation of the Autorité des Marchés Financiers (French financial market regulator), Montségur Finance has established procedures and controls to prevent conflicts of interest related to:

  • The observance of professional secrecy.
  • The separation of the company’s capital management from other management activities.
  • The selection and assessment of intermediaries and external providers.
  • The full disclosure of benefits and remunerations.

 

Managing Conflicts of Interest

The conflict of interest management monitoring falls to the compliance officer who exercises his prerogatives subject to the regulatory requirements applicable to the organization and the activities conducted by Montségur Finance.

Any person from Montségur Finance who detects a conflict of interest shall notify the compliance officer. Montségur Finance shall then take all measures it deems appropriate and necessary to solve this dispute and implement corrective measures to avoid or limit the occurrence of the same conflict of interest. In accordance with the regulation, Montségur Finance informs clients or unitholders if the conflict cannot be avoided and records it in the company’s register of conflicts of interest.

The detailed Conflict of Interest Policy will be provided upon request.

(French language)

Montségur Finance dispose d’une politique de rémunération conforme aux dispositions de la directive européenne 2014/91/UE (« Directive OPCVM V ») et des articles du Règlement de l’Autorité des Marchés Financiers y afférents.

Les politiques et pratiques de rémunération chez Montségur Finance n’intègre pas de critère de performance mais exclusivement des critères qualitatifs et s’applique à l’ensemble des dirigeants et collaborateurs : gérants, RCCI et fonctions support.

Le comité de rémunération se réunit une fois par an.

La politique de rémunération de Montségur Finance :

  • Favorise une gestion saine et efficace du risque
  • N’encourage pas une prise de risque qui serait incompatible avec les profils de risque, le règlement ou les documents constitutifs des OPCVM
  • Est conforme à la stratégie économique, aux objectifs, aux valeurs et aux intérêts de la société
  • Est conforme aux OPCVM qu’elle gère et à ceux des porteurs de parts
  • Est conforme aux mandats qu’elle gère et à leurs clients
  • Comprend des mesures visant à éviter les conflits d’intérêts

Les rémunérations chez Montségur Finance s’articulent de la manière suivante :

  • La rémunération fixe représente le montant principal du collaborateur au regard des obligations de son poste, du niveau de compétence requis, de la responsabilité exercée et de l’expérience acquise. Elle est revue chaque année et fait l’objet d’une augmentation ou d’un maintien lors de l’évaluation annuelle.
  • La rémunération variable est basée exclusivement sur des critères qualitatifs pour l’ensemble des collaborateurs. Elle est versée sous forme de prime en une ou deux fois au cours de l’année.
  • Les autres rémunérations sont représentées par un accord d’intéressement et un PEE.

La politique de rémunération détaillée peut vous être communiquée sur simple demande.

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