UK Stewardship code
Commitment to the UK Stewardship Code
Under Rule 2.2.3.R of the FCA’s Conduct of Business Sourcebook, Zouk Capital LLP (the “Firm”) is required to include on this website a disclosure about the nature of its commitment to the UK Financial Reporting Council’s Stewardship Code (the “Code”) or, where it does not commit to the Code, its alternative strategy. The Code is voluntary and sets out a number of principles relaying to engagement by investors with UK equity issuers, fixed income, private equity, infrastructure investments, and in investments outside the UK.
The Firm pursues a number of investment strategies on behalf of its clients, focusing on assets and companies in the sustainable infrastructure and technology sectors.
The British Private Equity and Venture Capital Association’s (“BVCA”) published a response in March 2019 to the FRC’s proposed revision to the Code in the context of private equity (“PE”) and venture capital (“VC”) firms. The BVCA stated that in its view the Stewardship Code is less applicable to PE/VC firms and hence there would be limited benefits for such firms in adopting it. Furthermore, it would result in duplicate reporting requirements given the existence of other similar codes across the PE/VC industry.
The Firm supports the BVCA’s view and has therefore, chosen not to commit to the Code. It should be noted however, that the Firm is a signatory of the Principles for Responsible Investment (“PRI”) which are fully embedded within its ESG Policy and underlying investment processes. Compliance with the PRI Principles forms a key basis for engagement with the Firm’s investors, investee companies and other stakeholders.