MAGNA's commission recapture product is unique in that every
trade we execute is measured against its Real-Time Volume
Weighted Average Price to quantify the value added in the
trading process and to verify that we provided "best
execution". We have the ability to implement commission
recapture in both domestic/international equity and fixed
income asset classes. Our level of rebate percentages is extremely
competitive and we are approved to trade with over 400 investment
managers. Our commission recapture activity reports are issued
on a monthly basis to both the client and their respective
managers. The monthly report highlights the value-added results
of our execution in addition to the amount of funds recaptured
for rebate to the client. Client reporting is also available
on our web site.
Commission Recapture programs consist of an agreement between
a plan sponsor and a broker dealer whereby their investment
managers are directed to execute domestic and international
stock and fixed income transactions with an institutional
brokerage firm at their regular commission rates. The brokerage
firm then rebates a portion of the gross commissions back
to the pension fund to reduce overall trading costs.
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