Effective from 1 January 2020, the Financial Reporting Council's (“FRC”) UK Stewardship Code (the “Code”) has been substantially updated to be applicable to a broader range of investment strategies, other than purely listed equity, such as fixed income bonds, real estate and infrastructure. It also reflects the growth of environmental factors, particularly climate change, as well as social and governance factors (together, “ESG”) as material issues for asset managers to consider when making investment decisions and undertaking stewardship.
In the 2020 version, the Code defines stewardship as “the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society”.
There are twelve Principles of the Code that apply to asset owners and asset managers. These are grouped under four headings:
Purpose and governance
Investment approach
Engagement
Exercising rights and responsibilities
Rule 2.2.3R of the Financial Conduct Authority (“FCA”) Conduct of Business Sourcebook (“COBS”) requires an FCA authorised firm to disclose the nature of its commitment to the FRC's UK Stewardship Code or, where it does not commit to the code, its alternative investment strategy.
Westbeck believes firmly in the importance of effective stewardship and long-term decision making. Westbeck pursues a global investment strategy with a focus on listed equities and derivatives and as such its investment portfolios can include UK equities. If the Firm were to invest directly in UK single equities these would represent only a part of the firm's business. Hence, while the Firm generally supports the objectives that underlie the Code, the Firm has chosen not to commit to the Code. The approach of the Firm in relation to engagement with issuers and their management is determined globally. The Firm takes a consistent approach to engagement with issuers and their management in all of the jurisdictions in which it invests and, consequently, does not consider it appropriate to commit to any particular voluntary code of practice relating to any individual jurisdiction.
If the Firm's approach should change in the future, Westbeck will review its commitment to the Code and update this disclosure accordingly.
For further details on any of the above information, please contact: [email protected]
In the 2020 version, the Code defines stewardship as “the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society”.
There are twelve Principles of the Code that apply to asset owners and asset managers. These are grouped under four headings:
Purpose and governance
- Purpose, strategy and culture
- Governance, resources and incentives
- Conflicts of interest
- Promoting well-functioning markets
- Review and assurance
Investment approach
- Client and beneficiary needs
- Stewardship, investment and ESG integration
- Monitoring managers and service providers
Engagement
- Engagement
- Collaboration
- Escalation
Exercising rights and responsibilities
- Exercising rights and responsibilities
Rule 2.2.3R of the Financial Conduct Authority (“FCA”) Conduct of Business Sourcebook (“COBS”) requires an FCA authorised firm to disclose the nature of its commitment to the FRC's UK Stewardship Code or, where it does not commit to the code, its alternative investment strategy.
Westbeck believes firmly in the importance of effective stewardship and long-term decision making. Westbeck pursues a global investment strategy with a focus on listed equities and derivatives and as such its investment portfolios can include UK equities. If the Firm were to invest directly in UK single equities these would represent only a part of the firm's business. Hence, while the Firm generally supports the objectives that underlie the Code, the Firm has chosen not to commit to the Code. The approach of the Firm in relation to engagement with issuers and their management is determined globally. The Firm takes a consistent approach to engagement with issuers and their management in all of the jurisdictions in which it invests and, consequently, does not consider it appropriate to commit to any particular voluntary code of practice relating to any individual jurisdiction.
If the Firm's approach should change in the future, Westbeck will review its commitment to the Code and update this disclosure accordingly.
For further details on any of the above information, please contact: [email protected]