Regulation

Background

Kintbury Capital LLP (’Kintbury Capital’ or the ‘Firm’) is authorised and regulated by the Financial Conduct Authority (the ‘FCA’). The Firm is a full scope Alternative Investment Fund Manager (‘AIFM’) and is categorised by the FCA, for capital purposes, as a Collective Portfolio Management Investment (“CPMI”) firm. The Firm is not required to prepare consolidated reporting for prudential purposes.

Materiality & Confidentiality

The Firm regards information as material in disclosures, if its omission or misstatement could change or influence the assessment or decision of a user relying on that information for the purpose of making economic decisions. The Firm regards information as proprietary/confidential if sharing that information with the public would undermine its competitive position.

Risk Management Objectives and Policies

The Firm’s Executive Committee are ultimately responsible for ensuring compliance with all regulatory requirements and comprehensively reviewing all risk issues at the Firm. The Firm's CEO is responsible for Portfolio Risk Management oversight and for reporting to the Executive Committee.  The Firm’s COO is responsible for systems and controls and for reporting of various operational and business risk management matters. The CEO and COO are functionally separated from the investment management team.

Kintbury Capital has clearly documented policies and procedures (these are contained in the Firm’s Compliance Policies and Procedures Manual), which are designed to minimise risks to the Firm and all staff are required to confirm that they have read and understood them.

 

Privacy Policy

This Privacy Policy applies to nonpublic personal information you provide to Kintbury.  This Policy applies to individuals only and may be changed at any time, provided a notice of such change has been given to you.

You may provide us with personal information, such as your name, address, telephone number, social security number, assets and/or income information (i) in the Subscription Agreement and related documents, and (ii) in correspondence and conversations with Kintbury’s representatives.

We do not disclose any of this personal information to anyone, other than to our affiliates and except as permitted by law, such as to our attorneys, auditors, brokers and regulators and certain service providers, such as our administrator and a third party that hosts our customer relationship management system, but, in all such cases, only as necessary to facilitate the acceptance and management of your investment.  Thus it may be necessary, under anti-money laundering and similar laws, to disclose information about investors in order to accept subscriptions from them. We will also release information about you if you direct us to do so, if compelled to do so by law, in connection with any government or self-regulatory organization request or investigation or if information is required to facilitate the partnership's investments.

We seek to carefully safeguard your private information and, to that end, restrict access to nonpublic personal information about you to those employees and other persons who need to know the information to enable Kintbury to provide services to you. We maintain physical, electronic and procedural safeguards to protect your nonpublic personal information.

Please note that calls made to, or from, the firm are recorded in order to comply with the Firm's regulatory obligations.

 

FCA Complaints Procedure

You should contact us immediately if you are dissatisfied with any aspect of the AIF management services provided to you by Kintbury Capital LLP. Please write to John Aves at 22 Sackville Street, London, W1S 3DN; or javes@kintburycapital.com. We take every complaint seriously and your complaint will be handled in accordance with the relevant FCA rules, which may differ depending upon your status, although please note that it is Kintbury Capital LLP’s policy to aim to resolve every complaint fairly and in a timely manner. Kintbury Capital LLP has a written internal complaints handling policy, as required by the FCA Rules. You can obtain a copy of this on request, and in the event you should have cause for complaint about the AIF management services which Kintbury Capital LLP provides to you, a copy of the policy will be sent to you.

In the event we fail to resolve a complaint to your satisfaction, or if we fail to do so within eight weeks of receiving your complaint, you may also be entitled to refer your complaint to the Financial Ombudsman Service at Exchange Tower, Harbour Exchange Square, London, E14 9SR. Telephone: 0800 023 4 567 or at www.financial-ombudsman.org.uk.

 

UK Stewardship Code

The seven principles of the UK Stewardship Code were adopted by the Financial Reporting Council on 2nd July 2010.  Stewardship is the process by which Kintbury Capital LLP (“Kintbury”) protects and manages our clients’ investments by actively monitoring investee companies inclusive of liaising with company management or brokers on strategy, performance, governance and risk management. 

Our aim is to provide good performance whilst keeping clients’ interests paramount and to continue to maintain the good reputation that Kintbury has established within the Hedge Fund industry.  Theprinciples of the Code, which is applied on a “comply or explain” basis, are that institutional investors should:

  • Publicly disclose their policy on how they will discharge their Stewardship responsibilities.
  • Have a robust policy on managing conflicts of interest in relation to stewardship and this policy should be publicly disclosed.
  • 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.
  • Report periodically on their stewardship and voting activities.

The following is an outline of how Kintbury applies the Code in its engagement with UK equity issuers.

Principle 1: Institutional Investors should publicly disclose their policy on how they will discharge their stewardship responsibilities

Kintbury policy and procedures integrate stewardship activities into our liaison with companies and our investment process. Information on policy is available to investors and investee companies.

Principle 2: Institutional Investors should have a robust policy on managing conflicts of interest in relation to stewardship and this policy should be disclosed

Kintbury manages and maintains a Conflicts of Interest policy which aims to identify and address all potential conflicts, including those that arise as a result of share ownership and the active engagement with companies.  This policy is made available to clients on request.

Principle 3: Institutional investors should monitor their investee companies

Kintbury have regular contact with and on occasion attend meetings with companies or their brokers in which we invest. Kintbury maintain a long short strategy generally looking for a range of management attributes, including consistency of strategy, a successful track record and demonstration of a strong management team with good corporate governance. In accordance with the Stewardship Code boards have to confirm within published company annual report and accounts that they are consider balanced, understandable and that they provide information necessary to assess the company’s performance, business model and strategy.

Investment Managers consider corporate governance issues presented by resolutions at Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs) and refer to external professional judgment and market research available. Kintbury’s policy is not to vote on behalf of clients at Extraordinary General Meetings and Annual General Meetings where we have a holding in the company.

When corporate governance issues arise, either we seek reassurance from the company that the issue is being addressed, or satisfy ourselves that we are happy with the way things stand. In every case we continue to monitor the situation. 

Principle 4: Institutional investors should establish clear guidelines on when and how they will escalate their activities as a method of protecting and enhancing shareholder value

Kintbury reviews on a case by case basis concerns to company strategy or policy. Kintbury in the first instance would liaise with the company’s broker and engagement with investee companies at a board level would only be carried out in exceptional circumstances on a reactive basis to crisis if it is in the best interest of shareholders to address a particular issue.

In all instances intervention will only be taken where we believe that shareholder value can be achieved. Where we do not believe that to be the case and we have fundamental concerns, we may take the decision to sell the shares.

Interventions such as issuing a public statement regarding a Company’s strategy or proposals, submitting resolutions at shareholders meetings or requisitioning an EGM do not normally form part of our standard policy. Where our opposition to a Company’s policy is strong enough and we have not received adequate assurances on our concerns we would, in the best interests of our clients, exercise our stewardship responsibilities by selling the shares.

Principle 5: Institutional Investor should be willing to act collectively with other investors where appropriate

Kintbury does not currently intervene on a joint basis with other institutions on particular issues to influence company strategy. However, we would consider doing so where it is considered in the best interest of shareholders and where there are controls in place to facilitate the sharing of information and guidelines as to how collaborative engagement should be undertaken between companies. 

Principle 6: Institutional Investors should have a clear policy on voting and disclosure of voting activity

Kintbury’s policy is not to vote on behalf of institutional clients unless in exceptional circumstances.  The Fund Managers have final discretion and will consider all sources of information.

Principle 7: Institutional Investors should report periodically on their stewardship and voting activities

Kintbury’s stewardship and voting activity is reviewed regularly by senior management with any amendments on policy, implementation and progress on achieving objectives being approved and recorded. 

Information on Kintbury’s stewardship and voting activity is available to institutional clients, on request, in accordance with client requirements.