Remuneration Disclosure

Introduction

Baobab Investment Managers “BIM” is subject to the FCA Rules on remuneration as they apply to a
small and non-interconnected (SNI) MIFIDPRU investment firm.

These are contained in the FCA’s MIFIDPRU Remuneration Code located in SYSC19G of the FCA’s Handbook. 

Approach to Remuneration for all staff 

Employees have the opportunity to share in the success of the Company in years of good performance
and also accept reduced levels of variable (bonus) pay in times of poor performance or losses.
BIM does not remunerate or assess the performance of its staff in a way that conflicts with its duty to
act in the best interests of its clients.
BIM does not make any arrangement by way of remuneration, sales targets or otherwise that could
provide an incentive to its staff to recommend a particular financial instrument to a client when the
firm could offer an alternative financial instrument which would better suit the client’s needs.
BIM is mindful of ensuring that its remuneration policy and practices do not lead to a conflict of
interest or incentivise its staff to act in a manner that favours their own interests or the firm’s interests
to the potential detriment of any client or potential client. 

Objectives of financial incentives

BIM’s Remuneration Policy provides a framework to ensure all staff are fairly and competitively
rewarded in return for a high level of service to the firm and is clients. In setting remuneration levels
BIM recognises the importance of attracting and retaining experienced staff. The amount of fixed
remuneration paid to an employee will be based on market rates relevant to the employee’s role and
their knowledge, experience, and competencies. Discretionary bonuses are made to employees to
reward them for good performance with a view to increasing and maintaining their productivity. 

Decision Making

Senior management shall be responsible for the implementation of this policy as well as the
monitoring of compliance risks associated with it. This policy will be reviewed and approved by the
management body at least annually to ensure it continues to remain fit for purpose with the input
from the firm’s Compliance Officer. 

Characteristics of Remuneration Policy and Practices

Remuneration typically comprises of fixed and variable elements. Fixed remuneration consists of base
salary, pension contribution and other benefits such as defined contribution pension, private medical
insurance, life assurance which constitutes the fixed payment made to an employee for their services.
BIM has defined variable pay as annual discretionary bonus, which is awarded based on company
performance, departmental performance and individual performance. BIM’s policy on variable
remuneration is to set aside a proportion of the firm’s profits to form a bonus pool out of which awards
will be made. The total bonus pool amount is determined by reference to the Company’s risk-adjusted
criteria, which include both quantitative and qualitative measures.
The firm will ensure that remuneration and similar incentives will not be solely or primarily based on
quantitative commercial criteria. Consequently, the firm will take into account appropriate qualitative
criteria (i.e. behavioural measures such as customer feedback) which shall encompass adherence with
relevant regulations, fair treatment of clients and the quality of services provided to clients.
BIM ensures it always maintains a balance between fixed and variable components of remuneration,
so as to mitigate any conflicts of interest between the firm, its staff and its clients.

Remuneration for year ending 2022