Skip to content

Stewardship code

STATEMENT ON THE UK STEWARDSHIP CODE

Flexagon Capital Solutions LLP (the “Firm”)

1. INTRODUCTION

This statement outlines the Firm’s position with respect to the UK Stewardship Code (the “Code”), which was published by the Financial Reporting Council (“FRC”) in July 2010 and amended in 2012 and 2020. Under Rule 2.2.3R of the FCA’s Conduct of Business Sourcebook, the Firm is required to make a public disclosure about the nature of its commitment and level of compliance to the Code or, where it does not commit to the Code, to explain its alternative investment strategy.

The Code is a voluntary code, which aims to enhance the quality of engagement between asset managers and listed companies in the UK, to help improve long-term risk-adjusted returns to shareholders and the efficient exercise of governance responsibilities.

It sets out good practice on engagement with investee companies and is to be applied by firms on a “comply or explain” basis.

It also describes steps that asset owners can take to protect and enhance the value that accrues to the ultimate beneficiary.

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 comprises twelve Principles that can be summarised as follows:

Purpose and governance

i) Purpose, strategy and governance

ii) Governance, resources and incentives

iii) Conflicts of interest

iv) Promoting well-functioning markets

v) Review and assurance

Investment approach

vi) Client and beneficiary needs

vii) Stewardship, investment and ESG integration

viii) Monitoring managers and service providers engagement

ix) Engagement

x) Collaboration

xi) Escalation

Rights and Responsibilities

xii) Exercising rights and responsibilities

2. THE FIRM’S POSITION ON THE CODE

It should be noted that given the Firm’s specialist focus on fixed income assets, the number of occasions on which the Firm will be involved in UK equity investments, will be limited. Therefore, the Code’s relevance has limited applicability to the Firm’s investment activities.

The Firm has chosen not to formally commit to the Code given the nature of its investment approach.

This Statement is reviewed annually and updated where necessary to reflect changes in circumstances and actual practice. Should the Firm’s position change we will review our commitment to the Code and make appropriate disclosure at that time.

For further details on any of the above information please contact the Firm’s Compliance Officer.

Disclaimer

Flexagon Capital Solutions LLP (“Flexagon”) is authorised by the Financial Conduct Authority to act as a MIFID investment manager.

The use and access of pages of this website is subject to the terms and conditions set out below.

The investment products and services offered by Flexagon are only available to professional clients and are not available to retail clients.

This web site is subject to international copyright laws and other intellectual property rights with all rights reserved. No information contained in this web site, any part of this web site, or associated documents (collectively the “Information”), may be redistributed in whole or in part, stored in a retrieval system, modified, linked into, republished, uploaded, transmitted in any form or by any means electronic or mechanical, or by photocopying, recording or otherwise without the express prior written permission of Flexagon.

Any Information on this web site is confidential, is not intended to influence you in making any investment decisions, is non-binding and is posted for illustration and discussion purposes only.

Any Information on this web site does not constitute and should not be considered as advice or as an offer to sell or as a solicitation of an offer to buy or subscribe any investment vehicle or any other securities, to or from any person in any jurisdiction. In no way it should be considered as a recommendation to invest.

It is important that you do not rely upon any Information on this web site for investment decisions. Any offer to invest based on the content of this web site will not be capable of acceptance. Any failure to comply with these restrictions may constitute a violation of distribution and securities law in any applicable jurisdiction. It is the responsibility of any person who accesses the information contained in this website to observe all applicable laws and regulations of their jurisdiction. This web site is not directed to, and shall not be visited by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where the content or use or visitation of this web site would be contrary to law or regulation or which would subject us to any registration or licensing requirement within such jurisdiction. If you are visiting our web site from any such jurisdiction, please kindly disconnect from our web pages.

And Information in this web site may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors and relevant offering material. Any investment decisions must be based upon an investor’s specific financial situation and investment objectives and should be based solely on the information in the relevant offering memorandum. Income from or the price or value of any financial instruments may rise or fall. All investments involve a degree of risk and past performance is not necessary a guide to future performance. The value of the investment and the income derived from it (if any) may vary and are not guaranteed. Investments in the strategy (ies) are speculative and may involve a high degree of risk, and you could lose all or a substantial amount of your investments.

The Information on this website is intended for information only and is not intended directly or indirectly to bring about any transaction between any visitor to the site and Flexagon. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction in which such distribution or offer is not authorised to any person.
Flexagon assumes no responsibility or liability for the correctness, accuracy, timeliness or completeness of the Information contained in this website or for any loss, damage or lost opportunities resulting from the use of the Information. Any views, opinions or assumptions may be subject to change without notice.

The content of this web site is not directed at or intended for persons, individuals or entities that are US Persons (as defined by Regulation S of the US Securities Act of 1933, as amended) and no securities or services are being offered in the United States or to US Persons. Flexagon does not hold itself out as an investment adviser in the United States and does not offer its services to the general public in the United States.