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Somerset Capital Management LLP

PRI reporting framework 2020

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Our primary objective is to deliver superior, long-term returns to our investors and their beneficiaries. Our experience informs us that the best way to achieve this is through systematic risk reduction and making long-term investment decisions. The aim of our in-house company research is to find businesses that have the ability to earn an attractive and sustainable return on capital over the course of a business cycle and which are run for the benefit of minority shareholders. We have a duty and a financial incentive to understand the true characteristics of a business, the potential risks to profitability and minority shareholder returns. Companies that exhibit a willingness to go beyond mere compliance with current minimum legal standards can possess a competitive advantage over peers with a shorter term perspective. This advantage may not be as evident when only conducting traditional financial analysis. We now have a fiduciary duty to consider how sustainability factors could impact the core business profitability of our investments.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

01.6. Additional information [Optional].


SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents


02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.




02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.








02.3. Additional information [Optional].

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

The Firm operates a “Policy of Independence” which requires its clients to be treated fairly in instances where the Firm or an employee has a material interest or a conflict in relation to a potential transaction. In such cases, the interest or conflict must be disregarded when advising customers, exercising discretion for them or dealing on their behalf. A material interest can arise, for example, where a firm or an employee has a proprietary position in an investment. A conflict of interest can arise where a firm, an employee or some other connected party has a relationship with another person or entity that potentially conflicts with the duty to the client. Such a relationship might include one with an issuer, another investment manager firm, a broker or counterparty, or another client. In such cases, any investment advice given to a client, or discretion exercised, must be formulated with regard to the client’s interests and not those of the Firm or any connected party or employee.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Private)