In 2014, European Capital Fund Management signed the Charter of the Six Principles for Responsible Investment (PRI). This Charter was convened at the initiative of the UN Secretary General and coordinated by the United Nations Environment Programme Finance Initiative (UNEP FI) and by the United Nations Global Compact (www.unpri.org). By signing the PRI European Capital recognises the importance of environmental, social and governance (ESG) issues and considers them when evaluating new investments on behalf of the Funds it advises.
The six principles are :
1. Incorporate ESG issues into investment analysis and decision making processes
2. Be active owners and incorporate ESG issues into ownership policies and practices
3. Seek appropriate disclosure on ESG issues by the entities of the portfolio
4. Promote acceptance and implementation of the PRI within the investment industry
5. Work together to enhance effectiveness in implementing the PRI
6. Report on activities and progress towards implementing the PRI
Code of Stewardship
Under Rule 2.2.3R of the FCA's Conduct of Business Sourcebook, European Capital Fund Management Limited (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 investment strategy. The Code sets out a number of principles relating to engagement by investors with UK equity issuers, as follows :
The seven principles of the Code are that institutional investors should :
1. Publicly disclose their policy on how they will discharge their stewardship responsibilities;
2. Have and publicly disclose a robust policy on managing conflicts of interest in relation to stewardship;
3. Monitor their investee companies;
4. Establish clear guidelines on when and how they will escalate their stewardship activities;
5. Be willing to act collectively with other investors where appropriate;
6. Have a clear policy on voting and disclosure of voting activity; and
7. Report periodically on their stewardship and voting activities.
The Firm pursue an investment strategy to which the aims of the Code are not relevant. European Capital Fund Management Limited’s strategy is to invest in debt investments.