Shareholder Rights Directive II (“SRD II”)


SRD II aims to improve stewardship and corporate governance by firms, including UK MiFID investment firms that invest in shares traded on a regulated market in the EEA, as well as ‘comparable’ markets situated outside of the EEA. Under FCA COBS 2.2.B.5R, we are required to:

The engagement policy must describe how we:

1) integrate shareholder engagement in our investment strategy:
2) monitor investee companies on relevant matters, including

3) conduct dialogues with investee companies;
4) exercise voting rights and other rights attached to shares;
5) cooperate with other shareholders
6) communicate with relevant stakeholders of the investee companies; and
7) manage actual and potential conflicts of interests in relation to our engagement.

On an annual basis, we must disclose a general description of voting behaviour, an explanation of the most significant votes and reporting on the use of the services of proxy advisors. The disclosure must include details of how votes have been cast, unless they are insignificant due to the subject matter of the vote or to the size of the holding in the company.

Frere Hall Capital Management Limited has decided that, whilst it supports the aims of SRD II, it has chosen not to comply with the Directive at the present time because it is not relevant when considering the Firm’s investment strategy, which focuses on implementing a commodities strategy and does not generally take positions in equity securities of listed issuers. As such, the Firm does not maintain, and will not publish, an engagement policy, as required by the Directive.

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