UK Stewardship Code
Stewardship is defined 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.” Under COBS 2.2.3 of the FCA Handbook, we are required to make a public disclosure in relation to the nature of our commitment to the Stewardship Code, which was published by the Financial Reporting Council (‘FRC’) in July 2010 and amended in September 2012 and January 2020. Where we do not commit to the Code we are required to disclose our alternative investment strategy.
The Code aims to enhance the quality of engagement between institutional investors and companies to help improve long-term returns to shareholders and the efficient exercise of governance responsibilities. It sets out good practice on engagement with investee companies. The FRC recognises that not all parts of the Code will be relevant to all institutional investors and that smaller institutions may judge some of the principles and guidance to be disproportionate. It is of course legitimate for some asset managers not to engage with companies, depending on their investment strategy.
The Code does not prescribe a single approach to effective stewardship. Instead, it allows organisations to meet the expectations in a manner that is aligned with their own business model and strategy. The investment market has changed significantly since the publication of the first UK Stewardship Code. There has been significant growth in investment in assets other than listed equity, such as fixed income bonds, real estate and infrastructure. These investments have different terms, investment periods, rights and responsibilities and signatories will need to consider how to exercise stewardship effectively in these circumstances. Environmental, particularly climate change, and social factors, in addition to governance, have become material issues for investors to consider when making investment decisions and undertaking stewardship. The Code also recognises that asset owners and asset managers play an important role as guardians of market integrity and in working to minimise systemic risks as well as being stewards of the investments in their portfolios.
There are twelve “Apply or Explain” principles for asset owners and asset managers:
J8 advises on and manages money with trading strategies in futures, forwards, derivatives, and over-the-counter (OTC) markets on global exchanges using a number of proprietary trading strategies; it does not monitor individual companies. Accordingly, whilst J8 supports the Code as a mechanism to promote best practice in the institutional shareholder conduct of UK listed companies, J8 does not consider the Code or its principles to be appropriate for its trading strategies.
J8 Capital Management LLP is incorporated under the Limited Liability Partnership Act 2000 as a limited liability partnership with company number OC371396 and the partnership is limited and the registered office at 118 Pall Mall, London SW1Y 5EA is in England, United Kingdom, www.j8capital.com. J8 Capital Management LLP is authorised and regulated by the Financial Conduct Authority (FRN 767969).
You should consider carefully whether or not this product is suitable for you in light of your circumstances and financial position, and if in any doubt please seek professional advice.
Last reviewed: 8th March 2024 by S Chu
The Code aims to enhance the quality of engagement between institutional investors and companies to help improve long-term returns to shareholders and the efficient exercise of governance responsibilities. It sets out good practice on engagement with investee companies. The FRC recognises that not all parts of the Code will be relevant to all institutional investors and that smaller institutions may judge some of the principles and guidance to be disproportionate. It is of course legitimate for some asset managers not to engage with companies, depending on their investment strategy.
The Code does not prescribe a single approach to effective stewardship. Instead, it allows organisations to meet the expectations in a manner that is aligned with their own business model and strategy. The investment market has changed significantly since the publication of the first UK Stewardship Code. There has been significant growth in investment in assets other than listed equity, such as fixed income bonds, real estate and infrastructure. These investments have different terms, investment periods, rights and responsibilities and signatories will need to consider how to exercise stewardship effectively in these circumstances. Environmental, particularly climate change, and social factors, in addition to governance, have become material issues for investors to consider when making investment decisions and undertaking stewardship. The Code also recognises that asset owners and asset managers play an important role as guardians of market integrity and in working to minimise systemic risks as well as being stewards of the investments in their portfolios.
There are twelve “Apply or Explain” principles for asset owners and asset managers:
- Purpose, strategy and culture
- Governance, resources and incentives
- Conflicts of interest
- Promoting well-functioning markets
- Review and assurance
- Client and beneficiary needs
- Stewardship, investment and ESG integration
- Monitoring managers and service providers
- Engagement
- Collaboration
- Escalation
- Exercising rights and responsibilities
J8 advises on and manages money with trading strategies in futures, forwards, derivatives, and over-the-counter (OTC) markets on global exchanges using a number of proprietary trading strategies; it does not monitor individual companies. Accordingly, whilst J8 supports the Code as a mechanism to promote best practice in the institutional shareholder conduct of UK listed companies, J8 does not consider the Code or its principles to be appropriate for its trading strategies.
J8 Capital Management LLP is incorporated under the Limited Liability Partnership Act 2000 as a limited liability partnership with company number OC371396 and the partnership is limited and the registered office at 118 Pall Mall, London SW1Y 5EA is in England, United Kingdom, www.j8capital.com. J8 Capital Management LLP is authorised and regulated by the Financial Conduct Authority (FRN 767969).
You should consider carefully whether or not this product is suitable for you in light of your circumstances and financial position, and if in any doubt please seek professional advice.
Last reviewed: 8th March 2024 by S Chu