Stewardship

Hassium Asset Management LLP UK Stewardship Code Disclosure Statement 1st September 2023

Under COBS 2.2.3R of the FCA Handbook, Hassium Asset Management LLP (“Hassium”) are required to make a public disclosure in relation to the nature of our commitment to the above Code, which was published by the Financial Reporting Council (‘FRC’) in July 2010 and revised in October 2012.

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 and is to be applied by firms on a “comply or explain” basis.

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, and in such cases, firms are required to explain why it is not appropriate to comply with a particular principle.

The seven principles of the Code are that institutional investors should:

  • Publicly disclose their policy on how they will discharge their stewardship responsibilities.

  • Have and publicly disclose a robust policy on managing conflicts of interest in relation to stewardship.

  • Monitor their investee companies.

  • Establish clear guidelines on when and how they will escalate their activities as a method of protecting and enhancing shareholder value.

  • Be willing to act collectively with other investors where appropriate.

  • Have a clear policy on voting and disclosure of voting activity; and

  • Report periodically on their stewardship and voting activities.

 

Hassium is an independent global wealth manager and provides discretionary investment management for a select group of private families and trusts across the UK and Europe.  Although Hassium supports the aims set out in the Code, we do not currently comply fully with the Code. The approach taken for each principle is detailed below:

  • Principle 1 – As a discretionary asset manager this document sets out our current policy in relation to the Stewardship Code.

  • Principle 2 - Hassium has a written conflicts of interest policy covering the potential for conflicts to arise between Hassium and its clients and, when relevant, between different clients; this policy is monitored and reviewed regularly.

  • Principle 3 – Whilst the investments are predominantly fund based, we do have holdings in individual UK, EEA and US stocks. We conduct extensive due diligence and research before a position is added to a client’s portfolio. We monitor positions on an on-going basis to ensure capital preservation and minimise downside risks of holdings.

  • Principle 4 – The firm will always act in the best interests of the underlying client and should Hassium believe that management is not acting in the best interests of the shareholders we would seek to liquidate the position as a method of protecting the value of the client’s investment.

  • Principle 5 – Hassium would act collectively on an informal or formal basis if it believed this was in the best interest of its clients.

  • Principle 6 – Hassium will vote in accordance with the best interest of its clients. Hassium does not publish its voting record, however this is disclosed to individual clients upon request.

  • Principle 7 – As stated previously we do not periodically publish our voting activities, but these details are available on request to the client. We will periodically review our compliance with the Stewardship code and update accordingly.

 

Should any of the above factors change, we will review our commitment to the Code at that time and make appropriate disclosure.