Stewardship is 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, as defined by the Financial Reporting Council (FRC).
The first UK Stewardship Code was published in 2010, making it the oldest one in the world. Although developed locally, it is now recognised globally as a best-practice benchmark in investment stewardship.
The 2020 Code was revised to impose stricter standards and requirements. It comprises a set of 12 “apply and explain” principles with a strong focus on reporting stewardship activities and outcomes. As an applicant, UBP had to demonstrate how our stewardship activities conducted in 2020 enabled us to fulfill our policies and objectives. Applications in the form of a report were subject to a rigorous review process by the FRC and only 125 out of the 189 made the cut.
Given the high expectations of the Code and the rigour of this review process, we believe that being a UK Stewardship Code signatory sends out a strong signal to our clients – both in the UK and abroad – about the substance of UBP’s approach to stewardship and responsible investment.