Terms of Use

Kennox Asset Management Limited is authorised and regulated by the Financial Conduct Authority. It is important that you read this information. The distribution of the information contained in this website in certain countries may be restricted by law and persons who access it are required to inform themselves of and to comply with any such restrictions. In particular, this website is not intended for residents of the United States as we are not authorised to sell our products and services in the United States.

While we believe the information in this website to be accurate and reliable, we give no warranty of that and we are not responsible for the accuracy of any information provided by third parties.

The information in this website does not constitute, or form part of, any offer to sell or issue, or any offer to purchase or subscribe for shares, nor shall this document or any part of it or the fact of its distribution form the basis of or be relied on in connection with any contract. Interests in any investment funds managed by Kennox (“Funds”) will be offered and sold only pursuant to the prospectus or offering memorandum relating to such Funds.

An investment in the Kennox Strategic Value Fund carries a degree of risk and is not suitable for retail investors. Kennox has not taken any steps to ensure that the securities referred to in this website are suitable for any particular investor and no assurance can be given that the stated investment objectives will be achieved.

Kennox will not be liable for any loss or damage arising out of or in connection with the use of this site.

Use of Cookies

When someone visits this site we collect standard internet log information and details of visitor behaviour patterns. For statistical purposes we collect information on website activity (such as the number of users who visit our website, the date and time of visits, the number of pages viewed, navigation patterns, what country and what systems users have used to access the site) through the use of ‘cookies’.

This information on its own does not identify an individual but it does provide us with statistics that can be used to analyse and improve our website.

A ‘cookie’ is a packet of information that allows the server (the computer that houses the website) to identify and interact more effectively with your computer. When you use our website, we send your computer a cookie that gives you a unique identification number. A different identification number is sent each time you use our website.

The cookie does not identify individual users, although it does identify a user’s browser type and your Internet Service Provider (ISP).

Cookies assigned by this site expire 31 days after use. This means it no longer exists on your computer and therefore it cannot be used for further identification or access to your computer.

If your browser preferences allow it, you can configure your browser to accept all cookies, reject all cookies, or notify you when cookies are set. Each browser is different, so check the “Help” menu of your browser to learn about how to change your cookie preferences.

Pillar Three


Kennox maintains a capital reserve requirement to ensure continuity in Kennox’s operations.  Pillar 3 is one part of the capital program at Kennox.
The FCA states: “Pillar 3 complements the minimum capital requirements (Pillar 1) and the supervisory review process (Pillar 2). Its aim is to encourage market discipline by developing a set of disclosure requirements which will allow market participants to assess key pieces of information on a firm’s capital, risk exposures and risk assessment processes. The disclosures are to be made to the market for the benefit of the market.”

Risk Categories

Operational Risk
Kennox conducts, and regularly reassesses, a complete review of all areas of our operations to ensure that operational risks have been identified, recorded, and that our compliance procedures limit the risk where possible.

Business Risk
As Kennox is paid according to the assets under management of the fund that we run, a fall in asset prices or the loss of significant accounts are our most significant risks.

Credit Risk
Kennox is paid monthly and individual payments are not threatening to the continuity of Kennox.  Kennox controls credit risk by ensuring prompt payment, and by reviewing the financial strength of our current client.  As for our bank deposits, we only have deposits with highly rated approved counterparties.

Market Risk  
The major risk for Kennox is that its operating costs are in sterling and its revenue is derived from the assets under management which are invested across the globe.

Capital Resources
Pillar 1 for Kennox is its fixed overhead requirement, and it is Kennox’s policy to retain additional capital on top of the minimum requirement.  Pillar 2 is a review of risks that are not covered in Pillar 1.  Due to the nature and operations of Kennox, the directors have decided that the capital set aside for Pillar 1 is sufficient to cover our capital reserve requirement and no additional capital is needed due to Pillar 2.

Pillar 3 Remuneration Code Disclosure

The aim of the Remuneration Code (the “Code”) is to ensure that firms have risk focused remuneration policies which promote and are consistent with effective risk management, and do not expose firms to excessive risk.
Under the Remuneration Code, we are classified as a Level Three Firm, the lowest risk category. As examples of our low category position we do not manage or trade proprietary positions. This allows us to dis-apply many of the technical requirements of the Code and proportionately apply the Code’s rules and principles establishing the Firm’s policies.
However under the FCA’s Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU), firms are required to disclose their remuneration policy and practices, as well as to aggregate quantitative disclosure for staff assessed as having a material impact on its risk profile, including senior management (“Code Staff”).

Remuneration Policies
Kennox has adopted policies in relation to the Firm’s remuneration arrangements which address potential conflicts of interest arising from such arrangements by taking into account the controls in place to guard against the Firm’s authorised persons being rewarded for taking inappropriate levels of risk.
Kennox pays set salaries and a discretionary bonus can be paid depending on the profitability of the business. Salaries are set at a level where there is a significant margin of safety surrounding the minimum capital required for the business. Kennox’s bonus policy will at all times consider the capital requirements and the long-term health of the business.
Kennox is satisfied that the policies in place are appropriate to its size, internal organization and the nature, scope and complexity of its activities.

Decision Making Process
The Firm’s Remuneration Policy is set by the directors of the Firm. The Firm has assessed its members and staff and concludes that 5 members of staff qualify as Code Staff. Each year the Firm assesses the amount of capital it considers necessary to run its business and if necessary uses some or all of the profits available to increase its capital resources.

Legal Entity Identifier

Kennox Asset Management Legal Entity Identifier (LEI): 213800DV6P431UKN8P51

Treating Customers Fairly (TCF)

We are committed to delivering the highest level of client service and, as a core part of this commitment, Kennox fully embraces the Financial Conduct Authority’s (FCA) Treating Customers Fairly (TCF) guidelines.
In all our dealings, we strive to ensure that:

  • Clients receive a prompt and courteous service, provided by fully competent and professional staff members
  • Clients receive a clear description of our investment approach, our sole product (the Kennox Strategic Value Fund) and our performance objectives
  • Our fees and charges are transparent and fairly described and disclosed in Fund sales and marketing literature
  • All client questions are dealt with fairly and honestly

Fundamental to this commitment are our robust compliance and risk monitoring procedures carried out by our well qualified operation team who work closely with the industry specialists we have appointed.

Stewardship and Social Responsibility

Kennox takes its management and stewardship responsibilities seriously.  As such, we believe it is important to remain up to date on issues impacting our investee companies, and to engage with them where appropriate.  We assess any issue in terms of its impact to the long term value of an underlying company and thus the value of our clients’ holdings.

At Kennox we also believe that good long-term performance of companies is directly related to their approach to good governance, ethical and environmental responsibility and consideration of social impact. As such, when specific SRI issues are identified Kennox will consider these in relation to other investment factors.

Our approach to stewardship and SRI is encapsulated in the following principles which are embedded in our investment philosophy:

  • We regularly monitor our investee companies.
  • We evaluate any situation which arises and are willing to engage with the company directly.
  • We are willing to act collectively with other investors where appropriate.
  • We will always vote in the long term interests of our clients and will record what decisions we have taken in this respect. We do not normally make those decisions public.

Best Execution - Broker Review & RTS 28 C

Kennox Asset Management Limited “Kennox”

Kennox executes orders only for publically traded equities on regulated markets.

In accordance with our obligations to our clients, Kennox seeks to ensure that the best possible result is achieved when executing orders for its client. In order to achieve the best possible result, we will take ‘sufficient’ steps to ensure this is in fact the case.

Broker selection

Kennox will use a number of brokers to access markets, seeking to use their specific expertise in so far as they may improve the terms on which we can trade in each market.

New broker relationships are only entered following a full broker review process. The number of brokers on our list is limited, to ensure that we can appropriately manage the relationships and the service they provide to us.

At the present time we use the following brokers:

  • Credit-Suisse
  • CLSA
  • Merrill Lynch

Execution factors

In order to achieve best execution, we take into account the following factors:

  • price
  • liquidity of the market
  • size of transaction
  • overall cost of transaction
  • speed of execution
  • counterparty risk
  • nature of transaction
  • relationship retention

To determine the relative importance, we will place on these execution factors we will taking into account:

  • our experience and understanding of the market in question
  • the characteristics of the execution venues to which the order is to be directed

Relevance of execution factors

Execution factor relevance (primary; secondary; neutral)
Price Primary
Liquidity of the market Primary
Size of transaction Secondary (as it pertains to liquidity)
Overall cost of transaction Primary
Speed of execution Neutral (limited differential)
Counterparty risk Neutral (limited differential)
Nature of transaction N/A (all are long equity)
Relationship retention Secondary (as it pertains to liquidity)

Dealing process

At Kennox investment decisions are controlled by the investment team, and ultimately the portfolio manager. When selecting which of the approved brokers to use, Kennox considers the factors referred to above.

Once the appropriate broker has been determined, the order is recorded in an order management system, and the order placed. Once the order has been filled, details of the trade are matched with broker confirmations and then sent on to all parties that need to be informed for accounting and settlement purposes. Dealing records are held for a minimum period of 5 years from the transaction date.

Allocation and aggregation policy

Kennox has the ability to aggregate client orders to attempt to achieve a price advantage. We will do our best to avoid aggregating orders on behalf of clients if it is likely to be significantly disadvantageous to a client. Clients should be aware that aggregated orders could be possibly disadvantageous to their interests in spite of our efforts.

At present, Kennox has only one client and order allocation and aggregation is therefore not applicable.

Order aggregation

At present, Kennox has only one client and order allocation and aggregation is therefore not possible. When the situation arises that Kennox is able to aggregate orders and subsequently allocate them between several clients, Kennox must inform the clients and take care to not disadvantage any client.

Kennox has the ability to “block trade” for the portfolios whereby we will place one large order with a broker which is then allocated across multiple portfolios. This block trading approach allows us to consolidate potential orders and gain some price advantages for the size of the order. As a result of a block order, the final quantity executed needs to be appropriately allocated across the portfolios.

Once an order is completed, the allocation across portfolios is made based on agreed upon allocation weightings and the mandate guidelines of the portfolios.

In most cases, this will be proportional to the size of the respective accounts. Any deviation from this normal allocation policy should be recorded. Deviations from this policy might be to do with filling a small account to avoid repeated transactions costs, or other reasons.

The aggregation and allocation policy regarding trades should allow for prompt, fair and expeditious execution of orders.

We will do our best to avoid aggregating orders on behalf of clients if it is likely to be significantly disadvantageous to a client, and we will inform clients that aggregated orders could be possibly disadvantageous to their interests in spite of our efforts.

Review procedure and reporting

We will review the execution policy and the quality of the brokers identified within it on an annual basis and also whenever a material change occurs that affects our ability to continue to obtain the best possible result for our clients. The compliance officer will carry out the following: (1) circulate findings, along with remedies required bi-annually. (2) circulate abbreviated policy bi-annually with findings to ensure accountability. (3) twice annually (April & October) have a Best Execution review meeting with investment team and ops.


Broker Review – Overview

Credit Suisse

Credit Suisse are able to provide services in all necessary global markets. We mainly use their high touch desk, but also can use their algo desk as well. Executions have been acceptable to good and we have been impressed in the manner that they have dealt with problems.

Relevant Factors Ratings/Notes (Ratings between 1 (good) and 5 (poor))
Idea Generation
Idea Generation N/A
Sales Service N/A (we don’t speak with their sales people)
Market knowledge 1 (for trading)
Trade Implementation
Price 1-2
Cost 1-2
Speed 1
Likelihood of Execution & Settlement 1-2
Size of Order 1
Nature of Order 1



Merrill Lynch

Merrill Lynch provide a high level of service across all global markets. The high touch desk can be expensive but will use it when we feel they can provide the best execution. Execution has been acceptable, and they have dealt with any problems in a professional manner.

Relevant Factors Ratings/Notes (Ratings between 1 (good) and 5 (poor))
Idea Generation
Idea Generation N/A
Sales Service N/A (we don’t speak with their sales people)
Market knowledge 1 (for trading)
Trade Implementation
Price 1-2
Cost 3 for high touch at 20bps/1 for algo
Speed 1
Likelihood of Execution & Settlement 1-2
Size of Order 1
Nature of Order 1




CLSA are mostly Asia specialists although they can deal in the US and London easily. Execution has been good for the times we have used them.

Relevant Factors Ratings/Notes (Ratings between 1 (good) and 5 (poor))
Idea Generation
Idea Generation N/A
Sales Service N/A (we don’t speak with their sales people)
Market knowledge 1 (for trading)
Trade Implementation
Price 1
Cost 1-2
Speed 1
Likelihood of Execution & Settlement 1-2
Size of Order 1
Nature of Order 1


RTS 28 C*

Class of Instrument Equities  
Notification if <1 average trade per business day in the previous year Y  
Top five execution venues ranked in terms of trading volumes (descending order) Proportion of volume traded as a percentage of total in that class Proportion of orders executed as percentage of total in that class
Credit Suisse


45% 37%
Merrill Lynch


34% 55%


21% 8%

RTS 28 C Table available to download here

*An investment firm receiving and transmitting orders or passing orders onto others for execution as part of discretionary investment management services is required to provide information that is “consistent” with RTS 28. Therefore, whilst RTS 28 doesn’t directly apply to these firms Article 65(6) of the Delegated Regulation creates a link by stating “The information shall be consistent with the information published in accordance with the technical standards developed under Article 27(10)(b) of Directive 2014/65/EU”.