Best execution refers to the duty of a firm that transmits or executes orders on behalf of clients to ensure that the best execution possible is achieved for their clients' orders. Some of the factors the firm must consider when seeking best execution of their clients' orders include the opportunity to obtain a better price and the likelihood and speed of execution.
Mintus Trading Limited (“MTL”) is subject to the best execution standards set out in COBS 11.2 and COBS 11.2A. MTL’s clients are the AIFs it manages. It is these funds to which the firm is responsible when carrying out best execution. These procedures apply whether transactions are conducted on a trading venue or off-market.
In accordance with COBS 11.3, MTL must have in place an order allocation policy that ensures the prompt, fair and expeditious execution of client orders relative to other client orders (and, where applicable, the firm’s own orders).
guiding principles within COBS 11.3 are that:
The Compliance Officer has responsibility for implementing this policy, and will therefore:
The Compliance Officer or another Senior Manager will review this policy, and our best execution arrangements, at least annually to consider whether the firm has satisfied the obligation to take all reasonable or sufficient steps (as the case may be) to obtain the best possible result for clients. The review will include whether to:
The Compliance Officer will also carry out a review if a material change occurs that could affect our ability to obtain the best possible results for the execution of our client orders, on a consistent basis. We will also assess if we need to make changes to the relative importance of the best execution factors so we can continue to meet our overall best execution obligation.
MTL’s clients are the AIFs it manages and it is these funds to which the firm owes best execution obligations. MTL acts for investors collectively in a fund when executing orders. Therefore, underlying fund investors will be unable to give specific instructions about the execution of an order. Investors in our funds sign agreements that allow MTL to execute transactions generally, in line with the fund strategy set out in the Information Memorandum. In the unlikely event that an investor gives specific instructions to MTL, MTL is entitled to rely on those instructions even though it may not result in the firm obtaining the best outcome for that investor. However, in practice, specific instructions from underlying fund investors are not expected to occur due to the way the funds are collectively managed.
MTL is required to obtain prior consent from its client to its order execution policy. The funds will be deemed to have provided consent to this policy by entering into the agreement under the terms of which they appoint MTL as AIFM.
Because of the nature of MTL’s funds and the limited types of assets in which they can invest, MTL expects to be acquiring artwork and other illiquid, real assets.
Again, because of the nature of the fund and the financial instruments involved, there are no established venues for the acquisition of artwork and other illiquid, real assets and all such transactions will be made outside regulated markets. It is likely that disposals (if any) will also be made outside regulated markets.
We have an obligation to take all reasonable steps to obtain the best possible result when acting as AIFM to the AIFs we manage when executing and transmitting their client orders. If a client has provided specific instructions, we will meet our obligation to obtain the best possible result by following those instructions.
The steps we take to ensure that we obtain the best possible result for our funds include:
MTL will take all reasonable steps to obtain the best possible outcome for the client. In determining the importance of the execution factors set out in 4.6 below, MTL takes into account:
Best execution is not achieved solely through price, but through a balanced appreciation of all of the above features. MTL considers that it will be demonstrated that all reasonable steps have been taken to obtain the best possible result when executing a client order in an artwork and other illiquid, real asset in accordance with:
In meeting its best execution obligation, MTL will take into account the following execution factors set out below in light of the fund’s investment strategy and objectives. The funds MTL manage often have specific and restrictive investment parameters and these need to be balanced against the execution factors.
Generally, the specific investment objective of the funds MTL manages vary and do not conflict with each other. Furthermore, MTL does not aggregate orders for its funds with those of other funds or the firm itself.
However, there may be instances where the investment strategy and objectives of two or more of MTL’s funds overlap, meaning that an investment proposal is suitable for two or more funds. In addition, an order aggregation could be advantageous for the funds in this situation. MTL has put in place the following allocation and aggregation policy to deal with these potential scenarios.
The aim of the firm’s order allocation policy is to ensure fair allocation of investments in any case, including how the volume and price of orders determine respective allocation and how partial executions are treated.
MTL’s policy is to allocate any investments fairly across all funds it manages, taking into account factors such as each fund’s respective investment objectives and particular time constraints. Sometimes there may be reasons for proceeding with a specific allocation, and it may be that considerations such as timing will be more important to one fund than another at different points in any fund’s lifetime. MTL’s policy is that taken over the whole life of any one fund, it should - bearing in mind potentially differing strategies and investment objectives - be treated fairly and equitably as compared to any other fund. Ultimately, MTL has discretion in the ranking of order allocation, based on its understanding of its funds.
The guiding principles within COBS 11.3 which requires fair allocation of orders are that:
MTL’s obligation is to execute orders for the funds that it manages promptly, fairly and expeditiously, relative to other orders being placed either for other funds or on its own account. In more detail, when executing orders MTL will:
MTL may carry out an order for a fund in aggregation with that for another fund and/or other clients or members of MTL if the following conditions are met:
In such cases, transactions will be allocated on what is deemed to be a fair and a reasonable basis that is in accordance with FCA Rules.
When any order is aggregated with another order, the allocation of the securities to the relevant acquirers must occur promptly.
MTL may execute an aggregated order in part, where it is not possible to execute the order in full.
An underlying investor must agree before the event (e.g. by agreeing to relevant terms that are set out in a fund’s governing document) that aggregation may delay the execution of a transaction, and that it may operate to the underlying investor’s advantage or disadvantage on some occasions.
Where an instruction is given on behalf of a number of funds and where a pre-allocation has been made for those funds, assets should be allocated on a pro-rata basis unless there are sound reasons for applying alternative allocation criteria. MTL reserves the right to apply an alternative allocation method in circumstances where it deems there is sufficient evidence to do so, bearing in mind the guiding principles above.
Where an aggregated order is executed, in the subsequent allocation, preference will not be given unfairly to own account orders, staff personal account deals, or indeed to any of those for whom MTL may have dealt. Where a fund order and an own account order and/or staff personal account deal have been aggregated, priority will be given to the fund order if the full aggregate total of all the orders cannot be completed, unless it is possible to demonstrate reasonably that without the participation of MTL it would not have been able to execute those orders on such favourable terms, or at all.
Where an error is identified in either the intended basis of allocation or the actual allocation a revised allocation may be calculated in respect of an aggregated order. In such circumstances, a record must be made of the reasoning behind the reallocation and recorded in an error log.
The re-allocation must then be completed within one business day of the original error being identified. A revised allocation may also be made in such a scenario where an order is only partially executed resulting in an uneconomic allocation to certain clients and in this situation MTL will act to ensure that any re-allocation is in the best interests of the clients for whom the firm has traded.
An aggregated order that has been executed and that includes one, or more, client orders will be recorded and the identity of each client involved will be retained.
A record will also be made of the proposed allocation as soon as is practicable. The date and time of allocation, the relevant product, the identity of the eligible counterparty concerned, and the amount allocated to each party involved should all also be recorded in writing.
Any records made must be retained for a period of at least five years from the date of allocation or subsequent reallocation.
It is not permitted to use (misuse) information relating to a fund’s pending orders to facilitate orders for other funds, or MTL own account orders, or MTL staff personal trades. Accordingly, MTL will take all reasonable steps to prevent and/or censure the misuse of information.
This policy is being provided to our funds’ investors, and their agreement to it has been obtained, prior to any transactions being executed on behalf of those clients by virtue of them having signed up to the Investment Terms and Conditions.
This policy will be reviewed on an annual basis and amended as necessary in the event of changes to the situations it covers.
We welcome any owner who wants to unlock liquidity from their collections to contact our Fine Art Team. This includes individual investors, galleries, institutions, and artists. Please reach out if you're interested in listing your artwork on the Mintus platform.
All artwork offered by Mintus is stored in climate-controlled, specialist art storage facilities, under a Mintus account. Current paintings are held in a facility in Delaware.
Artwork is acquired through our unique relationships with the world’s most renowned collectors and galleries. Our Fine Art Team marries their own expertise with insights from fellow industry experts to identify one-of-a-kind investment opportunities from established artists with high-growth potential. Our team examines metrics such as the artist’s market track record, recent price velocity and momentum, and the size of their international collector base when making investment decisions.
If you need support you can send an email to [email protected] or schedule a call using the links on each page of our website. If you need to make a complaint you can write to [email protected]. A description of our complaints policy is set out in the Investment Terms & Conditions for each investment.
Mintus Trading Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom under firm reference number 942522. For more details on our regulatory permissions please see the Financial Services Register.
For more information on risks, see the Memorandum for the relevant artwork and the important disclosures.
Mintus does not sell NFTs. NFTs are digital assets. Mintus enables qualifying investors to participate in the art market by purchasing interests in high value, physical artworks. Mintus’ platform facilitates investment in real, iconic artworks created by established artists.
Mintus will introduce a Secondary Market for investors in permitted locations, which will facilitate selling of shares to buyers, dependant on demand.
According to the regulations, certain investments can only be made available to investors who fall within these categories and Mintus must also follow appropriateness requirements when registering investors.
Fees are dependent on the specific artwork and the specific structure of the investment opportunity. Fees are clearly shown in advance for each artwork / investment opportunity, as displayed in the Memorandum that relates to the artwork / investment opportunity; this document is available to download from the profile of each artwork under the Opportunities section.
Both individual investors and institutions can invest in artworks. Individual investors will need to declare themselves to be ‘high net worth individuals’, ‘sophisticated investors’ or 'accredited investors' during the account creation process. Individual investors will also need to pass an appropriateness assessment. Professional investors including wealth managers, private banks and family offices should contact our team for more information on investing as an entity or managing multiple client accounts on the platform.
For the opportunities listed, a minimum investment of $3,000 is required however investments can be for any amount above this and generally range from $15,000 to $100,000. International payments are accepted.
Funds can be sent from any denomination into our USD bank account. We will show you the estimated cost in your chosen currency during the investment process, however this may change at the point of transfer, and does not account for fees charged by your bank. When transferring, your bank may show an estimated conversion; alternatively the funds can be sent in your local currency and converted at the point of receipt. Other transfer services such as Wise display exact fee and currency conversion rates to ensure you're sending the subscribed amount.
Mintus does not provide tax advice. We recommend that investors obtain their own tax advice as every person has specific tax circumstances. Generally, income and profits generated from your investment can be subject to either income tax or capital gains tax (depending on the individual investor and the specific structure of the investment). Artworks are not income-generating during the period they’re held. If you are unsure about your tax or other legal requirements, please speak to a professional advisor.
Not directly. In order to take an investment from one artwork to another, shares would need to be sold to a willing buyer on the future Mintus Secondary Market and then proceeds reinvested on the platform. The Secondary Market will only be available in permitted locations.
Typically, valuations occur at the end of June and December, with reports distributed to investors as soon as possible thereafter.
All actions in relation to the asset are at the discretion of Mintus. Mintus will communicate with investors on a six-monthly basis with an update on the net asset value, and any further news will be communicated on an ad-hoc basis.
Distributable profits will be made available to investors as soon as possible, once all sale-related administration is complete.
Profits will be received into your Mintus wallet, with the option to withdraw the profits into a bank account or reinvest on the Mintus platform.