UK Stewardship Code Statement
Esemplia Emerging Markets (Legg Mason International Equities Limited only) is authorised and regulated in the United Kingdom by the Financial Services Authority. As such, under the FSA's Conduct of Business Sourcebook, Esemplia is required to include a disclosure about the nature of its commitment to the UK Financial Reporting Council's Stewardship Code (the "Code") or, where it does not commit to the Code, its alternative investment strategy. The Code is a voluntary code and sets out a number of principles relating to engagement by investors with UK equity issuers.
Esemplia is a dedicated active emerging markets equity asset manager. As such, Esemplia invests in a universe comprised almost exclusively of stocks and securities outside of the UK listed markets (with limited exceptions). Esemplia uses a core approach when implementing the strategies it offers and has extensive experience managing assets in the emerging markets space. All strategies offered by Esemplia leverage from a central investment team which is responsible for generating the inputs required for portfolio construction and management. Esemplia has adopted and implemented policies and procedures that it believes are reasonably designed to ensure that portfolios are managed in the best interest of clients, in accordance with its fiduciary duties and regulatory requirements. Additionally, Esemplia must respect the rules, requirements and standards in the emerging markets where it invests.
Whilst Esemplia supports the general objectives that underlie the Code, the provisions of the Code are not strictly relevant to the type of investment management currently undertaken by Esemplia given its emerging market focus. If Esemplia's investment strategies change in such a manner that the provisions of the Code become relevant, it will amend this disclosure accordingly.
UK Remuneration Code Statement
The Remuneration Code (the Code) was revised to implement the requirements of the third Capital Requirements Directive (CRD3) and came into force on 1 January 2011. The aim of the Code is to ensure that UK authorised and regulated firms have risk focused remuneration policies which are consistent with and promote effective risk management and do not expose them to excessive risk.
The Board of Esemplia’s UK business is committed to managing its affairs to comply with the applicable requirements of the Code within the proportionality principles. In compliance with the Code, the Firm has focused remuneration policies in place which are consistent with and promote effective risk management. The Firm has adopted a Remuneration Policy Statement, and staff to whom the Code applies (Code Staff) have been identified. The Code Staff will receive appropriate structured remuneration and any required disclosure of this remuneration will be included in the Firm's annual accounts from year to year and filed with Companies House (England and Wales). Furthermore, in evidencing its commitment to the Code, the Firm has established a Remuneration Committee to ensure that the Firm’s remuneration policies are consistent with and promote effective risk management in compliance with the Code.
