MiFID Documents

Research Disclosure

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Introduction

Investment services in the European Economic Area are provided by Revolut Securities Europe UAB (company number 305799582; registered address at Konstitucijos ave. 21B, 08130 Vilnius, the Republic of Lithuania) which is a Lithuanian investment firm authorised and regulated by the Bank of Lithuania ("Revolut Securities", "we", "us", "our"). We provide execution-only services in relation to various financial instruments, as well as our Robo-Advisor portfolio management services.


Objectives

Revolut Securities will be providing the ancillary investment service of investment research, financial analysis or other forms of general recommendation relating to transactions in financial instruments in accordance with the Law on Markets in Financial Instruments of the Republic of Lithuania.

Revolut Securities produces independent investment research, which includes general investment recommendations in relation to publicly listed shares. Revolut Securities disseminates its investment recommendations to clients via the Revolut app under the title “Revolut Suggestion”.

Accordingly, Revolut Securities has implemented internal policies and procedures supporting the production and dissemination of investment research.


Methodology of Revolut Suggestions

Suggestions issued by Revolut Securities are based on a proprietary research framework that incorporates both quantitative and qualitative analyses, including but not limited to:

  • Fundamental Analysis: Using company earnings, valuation metrics and dividends to project an expected annual return. We source these data points from a third party provider, Factset UK Limited.
  • External Analyst Ratings: External data from equity research analysts are also incorporated in our analysis to gauge the sentiment of the stock. We source these data points from a third party provider, Factset UK Limited.

The Fundamental Analysis of stocks are calculated by the Investment Research team at Revolut Ltd, acting on behalf of Revolut Securities under intra-group arrangements, using a proprietary methodology, while External Analyst Ratings and their Price Targets are data points obtained from Factset UK Limited. These analyses are evaluated holistically to produce Revolut Suggestions.


Revolut Suggestions Definitions

Suggestions provided by Revolut Securities are categorised using a three-tier rating system:

  • Buy: At the current price, our analysis suggests that the stock would likely outperform its reference index in a 12-month time horizon.
  • Hold: The stock is likely to generate returns in-line with its reference index in a 12-month time horizon at its current valuation.
  • Sell: The stock is likely to underperform its reference index in a 12-month time horizon at its current valuation.

The stock’s reference index that it is being compared to will be shown on the Revolut app. For example, US stocks will be compared with the S&P 500 index.

The distribution of “buy”, “hold” or “sell” recommendations over the previous 12 months, and the proportion of issuers within each of these categories to whom we supplied material investment and/or ancillary services during the same period, is provided here.


Risk Disclosure and Sensitivity

Revolut Suggestions, as well as any figures or statements about expected or target returns, are forecasts based on certain assumptions and market conditions that may change. Past performance and forecasts are not reliable indicators of future results. Changes to these assumptions can also significantly affect the suggestion or expected outcomes. Key risks to consider include:

  • Issuer and credit risk. Revolut Suggestions rely on assumptions about the issuer’s financial performance, including projected earnings. If the issuer faces financial difficulties, operational issues, changes in market demand, or other adverse conditions, actual earnings may differ from projections. This can also negatively affect the value of the issuer’s securities and its ability to meet obligations to investors.
  • Dividends are not guaranteed. Dividends are paid at the issuer’s discretion and may be reduced or suspended. If dividends are lower than assumed, the potential return of the stock can be affected.
  • Changes in market and economic conditions. Broader market movements, economic developments and sector-specific events can affect the value of stocks.
  • Political Risk. Governments and administrative decisions may negatively impact issuers, potentially reducing the value of their stocks.
  • Changes in external analyst ratings. External analyst ratings, which are used to gauge market sentiment, may change in response to new information or market developments. The actual company performance may also diverge from analysts’ expectations.

Other risks may also arise that could affect the assumptions underlying Revolut Suggestions. For more details, please see our Risk Description document.


Conflicts of Interest

Revolut Securities has implemented robust policies and procedures to avoid or appropriately manage any conflicts of interest related to the provision of Revolut Suggestions. These include:

  1. Separation of investment research and other functions within Revolut Securities and Revolut Group to prevent exchange of information where there is a risk of conflict of interest.
  2. Separation of reporting lines to ensure that the investment research team is independent from staff involved in trading, sales and other functions, where there is a risk of conflict of interest.
  3. Personal transactions of Research analysts are subject to additional compliance monitoring and controls.
  4. The investment research team’s remuneration is not based upon or tied to specific investment transactions.

For more information, read our Conflicts of Interests policy.


Issuer-Specific Disclosures

Revolut Securities or a member of its group has entered into agreements with affiliates of Virtu Financial, Inc. and Jefferies Financial Group Inc. relating to the provision of investment services in the previous 12 months.


Disclaimers and Limitations

  • Revolut Suggestions do not take your personal circumstances into account and they are not investment advice or personal recommendations. They are intended for general informational purposes only and do not constitute an offer or solicitation to buy or sell any financial instrument. You must carefully consider your financial situation, review relevant documents and information or seek professional independent advice before entering into financial transactions or subscribing to new investment services.
  • Fundamental analysis data points and external analyst ratings are sourced from Factset UK Limited, an independent third party. Revolut Securities does not make any representations, warranties or guarantees regarding the accuracy or completeness of third-party data used in the investment research.
  • Revolut Securities' decisions to trade on its own account as principal are independent of any Revolut Suggestions it issues.


Distribution and Updates

Revolut Suggestions are disseminated via the Revolut app and prepared by a team of Investment Research Analysts. Each Revolut Suggestion includes a publication date, as well as a suggestion history, and may be reviewed or updated daily, or in response to material developments.