1. Introduction
This statement describes the approach of Hengistbury Investment Partners LLP (“the Firm”) to stewardship and sets out how we have applied the principles of the Financial Reporting Council’s UK Stewardship Code 2020 (“the Code”).
The Code aims to enhance the quality of engagement between investors and companies to help improve long-term risk-adjusted returns to shareholders and the efficient exercise of governance responsibilities.
2. Purpose and Governance
The Firm’s approach to stewardship is underpinned by a belief that good governance and responsible business practices are correlated with sustainable long-term investment returns. Stewardship considerations are integrated into our investment process as a matter of course.
The Firm’s management is responsible for overseeing the implementation of this stewardship policy. It is reviewed periodically to ensure it remains appropriate and reflects evolving best practice and regulatory expectations.
3. Stewardship Integration
Environmental, Social and Governance (“ESG”) factors are considered as part of the Firm’s overall investment analysis and risk assessment process. We assess material ESG risks and opportunities alongside traditional financial analysis when evaluating potential and existing investments.
We acknowledge that certain investment strategies employed by the Firm are not directly exposed to equity securities of specific companies, and stewardship activities are applied proportionately to the nature of investments held.
4. Engagement Approach
Where the Firm holds positions in equity securities, it is prepared to engage with company management on matters of governance, strategy and sustainability where this is consistent with our obligations to investors and our investment objectives. Engagement may take the form of:
- Direct dialogue with company management and boards;
- Participation in investor meetings and capital markets days;
- Correspondence regarding governance matters; and
- Collaboration with other shareholders where appropriate.
5. Escalation and Voting
Where engagement does not lead to satisfactory outcomes, the Firm may escalate its approach, which could include voting against management resolutions, communicating publicly our concerns, or reducing or exiting a position.
Where the Firm has voting rights associated with equity investments, it exercises those rights in a considered manner with reference to the best interests of investors and in accordance with this policy.
6. Reporting
The Firm is committed to transparency in its stewardship activities. This statement is made available on the Firm’s website and is updated at least annually. The Firm reports to investors on relevant stewardship activities through its periodic investor communications.