Equity Research Process

Olympia Capital Exchange (OCE) takes a collective decision process style and equity research approach.

Our Coverage extends throughout the Mediterranean and Eastern Europe to Near Eastern and Far Eastern Asia and Pacific markets. We screen for stocks which have the following characteristics driven by fund manager requirements.

We look for:

  • Earnings growth & sustainability
  • Cash flow and dividend streaming
  • Reasonable Valuations (PERs, P/Book ,etc.)

We strive to detect BUY & SELL ideas that have escaped market notice. By utilizing quantitative screening to assist in idea and data mining, we uncover possible BUY ideas as well as SELL ideas on stocks focused on early identification of fundamental changes. We believe alpha is generated from disciplined portfolio construction with superior stocks that have the following characteristics:

  • Improving and sustainable business fundamentals
  • Attractive relative valuations
  • Increasing investor expectations

Olympia Capital Exchange analysts make country, sector & tactical cash-equity calls for the benefit of our valued clients.


Policy for Managing Conflicts of Interest in Relation to Investment Research

Introduction

This policy applies to investment research published by the global Equity Research and Fixed Income Research departments of Olympia Capital Exchange (OCE). The policy applies to “Investment Research” and “Research Recommendations” as defined by recognized Financial Services Authorities. We reserve the right to amend or supplement this policy at any time. This policy is a summary of the principal provisions of more detailed internal OCE policies on research applicable to the OCE Capital Markets Group as a whole and to specific business units.

In this policy, we use the terms "Research Analyst" and "Analyst" interchangeably to describe research analysts who publish research reports. We use the term Research Management to describe the senior management teams of the respective research departments.


Note on applicable regulation

Our policies comply with laws and regulations applicable to our research. Although OCE was not a party to the equity research settlement of certain U.S. securities firms with U.S. federal and state regulators in April 2003 (the "Research Settlement"), we have voluntarily applied many of the requirements of the Research Settlement to our research including, in Canada and the U.K., to Fixed Income Research, taking into account the businesses in which the OCE Financial Group engages, the specific characteristics of fixed income and other non-equity products and markets, as well as local regulatory requirements and market practices principally in Canada, the United States and the U.K.


Identification and disclosure of possible conflicts

Olympia Capital Exchange policies and internal procedures are designed to assist us in identifying possible conflicts of interest, or the appearance of conflicts of interest, that might affect or raise questions about the impartiality of our research.

We provide training for Research Analysts and other OCE personnel with whom Analysts interact on the identification of potential conflicts. Research Management and Compliance provide assistance and guidance to OCE personnel as issues arise. Individual OCP personnel are responsible for raising identified conflicts or potential conflicts with their supervisors to ensure that all conflict questions are referred to and considered at the appropriate level within OCE.

The primary Analyst responsible for a research report is required to ensure that the views expressed in each research report accurately reflect his or her personal views

Disciplinary procedures apply in case of breaches of the policies of OCE referred to herein. Failure of OCE personnel to adhere to the requirements of our policies may result in a range of sanctions.


Supervision and remuneration of Research Analysts

Olympia Capital Exchange Analysts are not supervised by personnel from other areas whose interests or functions may conflict with those of the Research Analysts. The evaluation and appraisal of Research Analysts for purposes of career advancement, remuneration and promotion is structured so that non-research personnel do not exert inappropriate influence over Analysts. Analysts who publish research reports are supervised by, and report to, Research Management. Research Analysts do not report to, and are not supervised by, any investment banking management.

Evaluation and remuneration of Research Analysts is determined on the basis of a number of factors, including various performance factors, seniority and market factors. Analysts' remuneration, however, may not be directly linked to specific investment banking transactions or investment banking groups in OCE as an evaluation of the Research Analysts.


Activities of Analysts

We restrict Research Analysts from performing roles which could prejudice, or appear to prejudice, the independence of their research. Research Analysts are not permitted to participate in sales pitches for investment banking Research Analysts may not be involved in promotional or marketing activities in connection with investment banking

In connection with a securities offering or other investment banking transaction and during the course of such an offering or transaction, our policies permit Analysts to meet and speak with potential investors, at meetings and in conversations not involving the issuer or investment banking colleagues, for purposes of investor education and information. However, Analysts may not actively market an investment banking transaction, and investment banking personnel are prohibited from directing Analysts to engage in such marketing efforts.

We prohibit Research Analysts from soliciting or receiving any inducement in respect of their publication of research and we restrict certain communications between Research Analysts and investment banking personnel within OCE which might be perceived to result in inappropriate influence on Analysts' views.


Conclusions

We provide compliance notices and training to the relevant personnel on these policies.

All conversations between investment bankers and equity Research Analysts must be pre-approved by Research Management.

Our policies do not allow research reports to be made available to non-research personnel of Olympia Capital Exchange, including our traders, before they are made available to our clients