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CORPORATE GOVERNANCE AND

ETHICSAssignment 2- FO 04

U.K. STEWARDSHIP CODE 202

A!"#n $#in%n' P#tni

 $#tin P#n(&iNi)it# R#st*giSi+ie N#i) T,in)+e Sing&

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STEWARDSHIP T&e W*!

   T&e "*siti*n #n 'ties */ # ste,#!1 # "e!s*n ,&*#(ts #s t&e s'!!*g#te */ #n*t&e! *! *t&e!s1

es"e(i#++ 3 m#n#ging "!*"e!t1 n#n(i#+ #5#i!s1#n est#te1 et(.

  Stewardship is #n et&i( tt em3*ies t&e!es"*nsi3+e "+#nning #n m#n#gement */

!es*'!(es. T&e (*n(e"ts */ ste,#!s&i" (#n 3e#""+ie t* t&e en6i!*nment1 e(*n*mi(s1&e#+t&1 "!*"e!t1 in/*!m#ti*n1  t&e*+*g1  et(.

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INTRODUCTION

   T&e Stewardship Code  is # set */ "!in(i"+es *! g'ie+ines!e+e#se in 200 3 t&e Fin#n(i#+ Re"*!ting C*'n(i+1 i!e(te#t instit'ti*n#+ in6est*!s ,&* &*+ 6*ting !ig&ts in UniteKing*m (*m"#nies. It ,#s !e6ise in 202.

  Its "!in(i"#+ #im is t* m#)e instit'ti*n#+ in6est*!s1 ,&*m#n#ge *t&e! "e*"+e7s m*ne1 3e #(ti6e #n eng#gein (*!"*!#te g*6e!n#n(e in t&e inte!ests */ t&ei!3ene(i#!ies 8t&e s!e&*+e!s9.

   T&e "'!"*se */ t&e C*e is t* im"!*6e t&e :'#+it */eng#gement 3et,een instit'ti*n#+ in6est*!s #n (*m"#niest* &e+" im"!*6e +*ng-te!m !et'!ns t* s!e&*+e!s #n tⅇ(ient e

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   T&e C*e #*"ts t&e s#me =(*m"+ *! e

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Ste,#!s&i" #n t&e C*e

  Ste,#!s&i" #ims t* "!*m*te t&e +*ng te!ms'((ess */ (*m"#nies in s'(& # ,# tt t&e'+tim#te "!*6ie!s */ (#"it#+ #+s* "!*s"e!.

  In "'3+i(+ +iste (*m"#nies !es"*nsi3i+it /*!ste,#!s&i" is s!e - "!im#! !es"*nsi3i+it +ies,it& t&e 3*#! ,&i(& *6e!sees t&e #(ti*ns */ its

m#n#gement.

  In6est*!s in t&e (*m"#n #+s* "+# #n im"*!t#nt!*+e in &*+ing t&e 3*#! t* #((*'nt /*! t&e/'+++ment */ its !es"*nsi3i+ities.

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Ste,#!s&i" #n t&e C*e

   T&e UK Ste,#!s&i" C*e sets *'t t&e "!in(i"+es */ e5e(ti6e

ste,#!s&i" 3 in6est*!s - (*e #ssists instit'ti*n#+ in6est*!s

3ette! t* e

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Ste,#!s&i" #n t&e C*e

   T&e #(ti6ities /*! t&e Instit'ti*n#+ in6est*!s in(+'e e(isi*n-m#)ing *n m#tte!s s'(& #s #++*(#ting #ssets1 #,#!ingin6estment m#n#tes1 esigning in6estment st!#tegies1 #n3'ing *! se++ing s"e(i( se('!ities.

  Asset m#n#ge!s1 #+*ng ,it& t&e !es"*nsi3i+it */ m#n#gingin6estments1 #!e gi6en t&e "*siti*n s* #s t* in'en(e(*m"#niesB +*ng-te!m "e!/*!m#n(e t&!*'g& ste,#!s&i".

  C*m"+i#n(e ,it& t&e C*e *es n*t (*nstit'te #n in6it#ti*nt* m#n#ge t&e #5#i!s */ # (*m"#n *! "!e(+'e # e(isi*n t*se++ # &*+ing1 ,&e!e t&is is (*nsie!e in t&e 3est inte!est */(+ients *! 3ene(i#!ies.

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 THE PRINCIPES OF THECODE

  S* #s t* "!*te(t #n enn(e t&e 6#+'e tt #((!'es t* t&e'+tim#te 3ene(i#!1 instit'ti*n#+ in6est*!s s&*'+

. "'3+i(+ is(+*se t&ei! "*+i( *n &*, t&e ,i++ is(!ge t&ei!

ste,#!s&i" !es"*nsi3i+ities.

2. e # !*3'st "*+i( *n m#n#ging (*ni(ts */ inte!est in

!e+#ti*n t* ste,#!s&i" ,&i(&

s&*'+ 3e "'3+i(+ is(+*se.

. m*nit*! t&ei! in6estee (*m"#nies.

4. est#3+is& (+e#! g'ie+ines *n ,&en #n &*, t&e ,i++ es(#+#te

t&ei! ste,#!s&i" #(ti6ities.

. 3e ,i++ing t* #(t (*++e(ti6e+ ,it& *t&e! in6est*!s ,&e!e

#""!*"!i#te.

. e # (+e#! "*+i( *n 6*ting #n is(+*s'!e */ 6*ting #(ti6it.

. !e"*!t "e!i*i(#++ *n t&ei! ste,#!s&i" #n 6*ting #(ti6ities.

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APPICATION OF THE CODE

   T&e C*e is i!e(te t* instit'ti*n#+ in6est*!s - #sset *,ne!s#n #sset m#n#ge!s ,it& e:'it &*+ings in UK +iste(*m"#nies.

  Instit'ti*n#+ in6est*!s m# (&**se t* *'ts*'!(e t* e

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APPICATION OF THE CODE

   T&e FRC e

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APPICATION OF THE CODE

  Dis(+*s'!es 'ne! t&e C*e s&*'+ im"!*6e t&e/'n(ti*ning */ t&e m#!)et /*! in6estment m#n#tes.

Asset *,ne!s s&*'+ 3e 3ette! e:'i""e t*e6#+'#te #sset m#n#ge!s1 #n #sset m#n#ge!ss&*'+ 3e 3ette! in/*!me1 en#3+ing t&em t* t#i+*!t&ei! se!6i(es t* meet #sset *,ne!sB !e:'i!ements.

   T&e is(+*s'!es s&*'+1 ,it& !es"e(t t* (*ni(ts */inte!est1 #!ess t&e "!i*!it gi6en t* (+ientinte!ests in e(isi*n-m#)ing.

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APPICATION OF THE CODE

   T&e st#tement */ &*, t&e C*e s 3een #""+ies&*'+ 3e #+igne ,it& t&e sign#t*!Bs !*+e in t&e

in6estment (in.

  An #sset m#n#ge! s&*'+ is(+*se &*, it e+i6e!sste,#!s&i" !es"*nsi3i+ities *n 3e+/ */ its (+ients.

  O6e!se#s in6est*!s ,&* /*++*, *t&e! n#ti*n#+ *!inte!n#ti*n#+ (*es tt e simi+#! *3@e(ti6ess&*'+ n*t /ee+ t&e #""+i(#ti*n */ t&e C*e'"+i(#tes *! (*n/'ses t&ei! !es"*nsi3i+ities.

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APPICATION OF THE CODE

  Instit'ti*n#+ in6est*!s ,it& se6e!#+ t"es */ /'ns*! "!*'(ts nee t* m#)e *n+ *ne st#tement1

3't #!e en(*'!#ge t* e

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APPICATION OF THE CODE

  Sign#t*!ies #!e en(*'!#ge t* !e6ie, t&ei! "*+i(st#tements #nn'#++1 #n '"#te t&em ,&e!e

ne(ess#! t* !ee(t (nges in #(t'#+ "!#(ti(e.

   T&is st#tement s&*'+ 3e e#si+ #6#i+#3+e *n t&esign#t*!Bs ,e3site1 *! in #n *t&e! #((essi3+e

/*!m1 #n s&*'+ ini(#te ,&en t&e st#tement,#s +#st !e6ie,e. It s&*'+ in(+'e (*nt#(tet#i+s */ #n ini6i'#+ ,&* (#n 3e (*nt#(te /*!

/'!t&e! in/*!m#ti*n.

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COJP OR ELPAIN

i)e t&e UK C*!"*!#te G*6e!n#n(e C*e1 T&e Ste,#!s&i"C*e s&*'+ 3e #""+ie *n # >(*m"+ *! e

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COJP OR ELPAIN

   T&*se sign#t*!ies tt (&**se n*t t* (*m"+ ,it&*ne */ t&e "!in(i"+es1 *! n*t t* /*++*, t&e

g'i#n(e1 s&*'+ e+i6e! me#ning/'+ e

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COJP OR ELPAIN

  W&i+st (+ients #n 3ene(i#!ies ee6e! !ig&t t* (++enge # sign#t*!Bs

e

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Cnges t* t&e Ste,#!s&i"C*e

  C+#!i(#ti*n */ t&e !es"e(ti6e !es"*nsi3i+ities */#sset m#n#ge!s #n #sset *,ne!s /*! ste,#!s&i"1#n /*! ste,#!s&i" #(ti6ities tt t&e e

(&*sen t* *'ts*'!(e  In6est*!s #!e t* e

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FRCBs /*('s /*! '"(*minge#!s

   T&e FRC #()n*,+eges tt t&ee6e+*"ment */ # ('+t'!e */

ste,#!s&i" m# t#)e time  t&e FRC is (*n(e!ne tt n*t #++

sign#t*!ies #!e /*++*,ing t&!*'g& *nt&ei! (*mmitment t* t&e C*e

   T&e m#in /*('s /*! 20 #n 20 is t*im"!*6e im"+ement#ti*n */ t&e C*e.

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A!e#s */ F*('s

  e6e+*"ing t&e e6ien(e 3#se /*! t&e3enets */ ste,#!s&i"

 

gene!#ting em#n /!*m #sset *,ne!s/*! ste,#!s&i" ,*!) 3 /'nm#n#ge!s

  'ne!t#)ing g!e#te! s(!'tin */#&e!en(e t* t&e C*e.

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Thank You