What We Do
Introduction
Frostrow Capital is unique in being exclusively dedicated to
providing advisory and executive management services to investment
companies. Our clients are typically stock exchange-listed,
closed-ended investment trusts where we act as manager and a
separate entity acts as the investment manager.
We offer the boards
of existing investment companies a new alternative to their current
management arrangements and we aim to launch new investment
companies by actively seeking and promoting exceptional investment
managers.
Advisory services
We are able to offer advice that is based on our broad
experience of managing investment companies through various
situations and market conditions. Examples of this sort of
advice are:
- Industry best practice
- General strategic advice
- Discount management
- Enhancing secondary market demand
- Dealing with arbitrageurs
- Buybacks and fundraising
- Appointing investment managers
- Appointing advisers
Historically the investment companies sector has been
dominated by a small number of fund management groups who
provide all the services that a quoted investment company
requires. Such services can be best summarised as the
'investment activities' and the 'non investment activities'. The
investment activities are the provision of a skilled stock
picking team to manage the investment portfolio and the non
investment activities are all the other activities needed to
operate a quoted investment company which is governed by the
listing rules and company law.
Over recent years changes in the corporate governance
environment in the UK have put more pressure on boards of
directors to continually review their investment manager, the
investment mandate and their overall place in the market. An
annual statement is required in the annual report and accounts
to this effect. This change in the corporate governance regime
has now started to trigger more management contract changes and
a number of large management groups have been replaced with
smaller boutique investment managers who have strong track
records and credentials and who wish to focus purely on
investment activities.
We are focused purely on providing all the necessary
non-investment activities and advice, and together with these
boutique investment managers, we are able to offer boards of
investment companies a comprehensive alternative to the
fully-integrated fund management groups.
Executive management services
We have overall responsibility for the day to day operations
of the company. This involves providing the following services:
- Company secretarial
Frostrow Capital has a highly experienced team who are able
to provide the full range of company secretarial services
required by stock exchange-listed investment companies. In
addition, we provide general advice on the conduct of the
company and continuously ensure that the highest standards of
corporate governance, operations and compliance are upheld.
- Investment fund accounting
Frostrow Capital is responsible for the books and records of
each client company. This involves overseeing the day to day
operations to ensure that a company's accounts are accurate and
comply with Statement of Recommended Practice, as produced by
the Association of Investment Companies and are consistent with
the requirements of relevant accounting standards. We are
responsible for producing the interim and full year accounts and
we ensure the annual audit is conducted in an efficient manner.
- Administration
Frostrow Capital is responsible for the day to day investment
fund administration and for ensuring that the investment manager
complies with the investment guidelines. The administration
function includes trade capture, trade processing, pricing and
valuation of the portfolio. The Net Asset Value per share of
each investment company is published on a daily basis.
- Marketing and shareholder services
Frostrow Capital promotes its client companies to investors
who are typically discretionary asset managers, private client
stock brokers, institutions and pension funds. This involves
continuous liaison and communication particularly with regard to
investment performance and with the aim of broadening the
investor base. This is done in conjunction with brokers for
one-off fund raising in the primary market and where possible
through regular share issuance in the secondary market.
We are also responsible for overseeing and coordinating the
activities of other advisers and service providers:
- Registrars
- Custodians
- Auditors
- Lawyers
- PR firms