UK Stewardship Code (2020) Disclosure Statement

Carrhae Capital LLP

27/8/23

Effective from 1 January 2020, the Financial Reporting Council’s (“FRC”) UK Stewardship Code (the “Code”) has been substantially updated to be applicable to a broader range of investment strategies, other than purely listed equity, such as fixed income bonds, real estate and infrastructure.  It also reflects the growth of environmental factors, particularly climate change, as well as social and governance factors (together, “ESG”) as material issues for asset managers to consider when making investment decisions and undertaking stewardship.

In the 2020 version, the Code defines stewardship as “the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society”.

Pursuant to Rule 2.2.3R of the Financial Conduct Authority’s Conduct of Business Sourcebook, Carrhae Capital LLP (“Carrhae”) is required to disclose whether it commits to the Code or explain why it does not, having consideration to its investment approach.

Carrhae seeks investment opportunities in all global markets, although a particular focus of the Funds includes issuers operating in, or substantially exposed to, emerging markets in Asia, Latin America, Eastern Europe, the Middle East and Africa. Exposure to listed companies is achieved through investment in (non-voting) derivatives positions.  

While the Firm generally supports the objectives that underlie the Code, the investment strategy, and the nature of the financial instruments used to execute the strategy do not embrace engagement with investee companies, and the Firm does not consider that its clients expect such engagement.