UK Stewardship Code.
UK Stewardship Code Disclosure Statement
Nanook Energy Advisors LLP
(“Nanook” / the “Firm”)
Disclosure of Commitment to the Financial Reporting Council’s Stewardship Code
Nanook is an investment manager regulated by the Financial Conduct Authority (FCA) in the United Kingdom. In accordance with COBS 2.2.3R, we are required to disclose the nature of our commitment to the Financial Reporting Council’s (FRC) Stewardship Code, or, where we do not commit to the Code, provide details of our alternative investment strategy.
The FRC's Stewardship Code 2020 aims to enhance the quality of engagement between institutional investors and companies to improve long-term returns to shareholders and the efficient exercise of governance responsibilities. The Code sets high standards for stewardship and is primarily directed at equity investments in UK listed companies.
Non-Commitment to the Stewardship Code
The Firm does not commit to the Stewardship Code. Our investment strategy involves trading in commodities derivatives, agricultural derivatives[AS1] [JR2] and equities indices, which are financial instruments not typically associated with the kind of corporate engagement envisaged by the Stewardship Code. As such, the nature of our trading strategy does not facilitate direct engagement with issuers or influence over corporate governance and strategic issues.
Alternative Investment Strategy
Our investment focus is on identifying and capitalising on market opportunities. This involves analysing market trends, supply and demand factors, geopolitical events and other variables that impact commodity or index prices. Our strategy is designed to generate returns through short-term trading and hedging activities, rather than long-term investment in corporate securities.
Given the specific nature of our investment activities, the principles and practices of the Stewardship Code are not applicable to our operations.
While we do not engage in the type of corporate stewardship that the Code advocates, we remain committed to high standards of professional conduct, regulatory compliance and transparent operations. Our investment strategy prioritises responsible trading practices and the effective management of client assets.
Commitment to Regulatory Compliance and Responsible Practices
Although our activities do not align with the Stewardship Code's focus on corporate engagement, we uphold rigorous standards in all our operations, including:
Regulatory Compliance: Ensuring full compliance with all relevant regulations and standards set forth by the FCA and other regulatory bodies.
Transparency: Maintaining clear and open communication with our clients regarding our investment strategies, performance and any potential risks.
· Ethical Conduct: Adhering to the highest ethical standards in all our trading activities, including avoiding conflicts of interest and promoting fair market practices.
If you have any questions or require further information regarding our investment strategy and non-commitment to the Stewardship Code, please contact us at jurquhart@nanookadvisors.com.
Nanook Energy Advisors LLP
17 December 2024
Disclaimer: This disclosure is for informational purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy any securities or other financial instruments.