NS ASSET MANAGEMENT UK LTD
Company Registration No. 02946806
Report and Financial Statements
For the Year Ended 31 December 2023
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
CONTENTS
Page
General Information
1
Directors' Report
2
Strategic Report
3
Statement of Directors' Responsibilities
4
Independent Auditor's Report
5
Statement of Income and Retained Earnings
8
Statement of Financial Position
9
Statement of Cash Flows
10
Notes to the Accounts
11
Appendix I - Unaudited Pillar 3 disclosure
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
GENERAL INFORMATION
- 1 -
Director
E.J.L. Macpherson
Chief Executive Officer
Non-Executive Directors
C.G. Dingens
E.H.J. Laget
C. Verbaere
Secretary
D.O. Kimberley
Registered office
25 Upper Brook Street
London
W1K 7QD
Auditors
Buzzacott LLP
130 Wood Street
London
EC2V 6DL
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
DIRECTORS' REPORT
- 2 -

The directors present their report together with the Strategic Report and the audited financial statements of NS Asset Management Ltd ("the Company") for the year ended 31 December 2023.

Principal Activity

The principal activity of the Company during the year was the provision of investment management services.

The Company is authorised and regulated by the Financial Conduct Authority.

Employees
Information regarding staff numbers and costs is set out in note 4.
Directors and their Interests
The current directors, all of whom served throughout the whole of the year ended 31 December 2023, are listed on page 1.
Political and Charitable Donations

Charitable donations of £2,000 (2022 - £1,000) were made during the year.

Remuneration Disclosure

In accordance with the requirements of the Financial Conduct Authority, the Company has published information on its remuneration policy and practices. This information is set out in the unaudited appendix to the financial statements.

Auditor

Buzzacott LLP will be retained as the Company's auditor for the current year.

Matters included in the Strategic report

The Company has chosen, in accordance with Section 414 C (11) of the Companies Act 2006, to set out information, which would otherwise be required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' report, in the Company's Strategic Report. It has done so in respect of future developments.

Disclosure of Information to Auditors

So far as each person who was a director at the date of approval of this report is aware, there is no relevant information, being information needed by the auditors in connection with preparing their report, of which the auditors are unaware.

 

Having made appropriate enquiries of fellow directors and the Company's auditor for that purpose, each director has taken all the steps that he is obliged to take as a director in order to make himself aware of any relevant audit information and to establish that the auditors are aware of that information.

On behalf of the Board
E.J.L Macpherson
Director
4 April 2024
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
STRATEGIC REPORT
- 3 -
Results and Business Review

The profit for the year after taxation was £173,886 (2022: £91,251). The results for the period and financial position of the Company are as shown in the annexed financial statements. Assets under management rose during the year as a result of a rise in the value of assets and the addition of new money. A dividend of £100,000 was paid during the year (2022 - £Nil).

Future Developments

The Company's scale of business and principal activities are unlikely to change materially in the immediate future.

Principal Risks and Uncertainties

The Company operates systems and controls to mitigate any adverse effects across the range of risks that it faces. The directors review and consider the risks to which the Company may be exposed on a regular basis and have documented them and the measures designed to mitigate them, as part of the Internal Capital and Risk Assessment (ICARA) process.

Going Concern

The Company's results for the year are set out in the Statement of Income and Retained Earnings on page 8. The Company continues to perform satisfactorily and has adequate financial resources, so there is a reasonable expectation that it will continue to operate for the foreseeable future. The going concern basis has accordingly been adopted in preparing these financial statements.

Directors' Statement of Compliance with Duty to Promote the Success of the Company

The directors recognise their responsibility under Section 172 of the Companies Act 2006 to promote the success of the Company when conducting their duties. The likely long-term consequences of any action to be taken by the Company is always considered by the Board before reaching a decision.

 

The Company is highly dependent on its employees and their interests are always considered by the directors. The Company operates a bonus scheme to align the interests of the Company and its employees.

 

The business is also highly dependent on the Company maintaining first class relationships with clients, which is achieved through a high level of personal contact with them. In order to foster good relations, the directors promote the desirability of the Company maintaining its reputation for high standards of business conduct.

 

The nature of the Company's business means that the impact of its own operations on the community and the environment are limited. These are, however, matters that are considered by the investment policies that are applied to clients' portfolios.

 

The Company has only one ultimate holding company so the directors' need to act fairly between members is not felt to be a priority.

Directors' Indemnity and Liability Insurance

The Company and its directors and officers are indemnified by a group investment management insurance.

E.J.L Macpherson
Director
4 April 2024
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
STATEMENT OF DIRECTORS' RESPONSIBILITIES
- 4 -

The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Standards and applicable law) including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
Buzzacott
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NS ASSET MANAGEMENT UK LTD (“the Company”)
- 5 -
Opinion

We have audited the financial statements of NS Asset Management UK Ltd for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and the related notes including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

 

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

 

NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
Buzzacott
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NS ASSET MANAGEMENT UK LTD (“the Company”)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report or Strategic Report.

 

We have nothing to report in respect of the following matters to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Statement of directors’ responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

How the audit was considered capable of detecting irregularities including fraud

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
Buzzacott
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NS ASSET MANAGEMENT UK LTD (“the Company”)
- 7 -

Auditor's responsibilities for the audit of the financial statements (continued)

We assessed the extent of compliance with the laws and regulations identified above through:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:

 

 

There are inherent limitations in our audit procedures described above. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error as they may involve deliberate concealment or collusion. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members and other management and the inspection of regulatory and legal correspondence, if any.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Chapman (Senior Statutory Auditor)
for and on behalf of Buzzacott LLP, Statutory Auditor
4 April 2024
130 Wood Street
London
EC2V 6DL
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
STATEMENT OF INCOME AND RETAINED EARNINGS
Expressed in Pounds Sterling
- 8 -
Year Ended
Year Ended
Note
31 Dec. 2023
31 Dec. 2022
Turnover
2
1,766,662
1,490,739
Operating expenses
(1,565,305)
(1,377,930)
Operating profit
3
201,357
112,809
Other interest receivable and similar income
27,557
2,924
Profit on Ordinary Activities Before Taxation
228,914
115,733
Tax on profit on ordinary activities
5
(55,028)
(24,482)
Retained Profit for the Year
173,886
91,251
Retained earnings as at 1 January
1,374,925
1,283,674
Dividend paid
(100,000)
-
0
Retained earnings as at 31 December
1,448,811
1,374,925

All income, expenses, profits and losses shown in the financial statements relate to continuing operations.

 

The Company has no recognised gains or losses other than the results for the current and preceding financial years, as set out above.

 

The Notes to the Accounts numbered 1 to 19 form part of these financial statements.

NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
STATEMENT OF FINANCIAL POSITION
Expressed in Pounds Sterling
- 9 -
Note
As at
As at
31 Dec. 2023
31 Dec. 2022
Fixed assets
Tangible assets
6
6,954
6,733
Current assets
Debtors
7
788,505
572,239
Cash and cash equivalents
1,514,766
1,465,288
2,303,271
2,037,527
Creditors: amounts falling due within one year
8
(801,314)
(609,235)
Net current assets
1,501,957
1,428,292
Total assets less current liabilities
1,508,911
1,435,025
Capital and reserves
Called up share capital
10
60,100
60,100
Profit and loss account
11
1,448,811
1,374,925
Shareholders' Funds
1,508,911
1,435,025
The financial statements were approved by the Board of Directors on 4 April 2024
and signed on behalf of the Board on 4 April 2024 by:
E.J.L Macpherson
Director
The Notes to the Accounts numbered 1 to 19 form part of these financial statements.
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
STATEMENT OF CASH FLOWS
Expressed in Pounds Sterling
- 10 -
Year Ended
Year Ended
31 Dec. 2023
31 Dec. 2022
Operating Activities
Profit on ordinary activities before taxation
228,914
115,733
Adjustments for non-cash items:
Depreciation of fixed assets
6,093
3,344
Interest income
(27,557)
(2,924)
Change in debtors and other receivables
(209,120)
307,412
Change in creditors and other payables
135,492
(100,242)
Cash Generated from Operating Activities
133,822
323,323
Corporation tax paid
(5,587)
-
Net Cash Flows From Operating Activities
128,235
323,323
Investing activities
Purchase of fixed assets
(6,314)
(7,613)
Interest income
27,557
2,924
Net cash generated from/(Used in) Investing Activities
21,243
(4,689)
Financing activities
Dividend paid
(100,000)
-
Net change in cash and cash equivalents
49,478
318,634
Cash and cash equivalents at the start of the year
1,465,288
1,146,654
Cash and cash equivalents at the End of the year
1,514,766
1,465,288
The Notes to the Accounts numbered 1 to 19 form part of these financial statements.
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
NOTES TO THE ACCOUNTS
All Monetary Amounts Expressed in Pounds Sterling
- 11 -
1
Principal accounting policies
(a)
Basis of accounting

The financial statements of the Company are prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006. The financial statements have been prepared under the historical cost convention on a going concern basis. The principal accounting policies adopted are set out below.

(b)
Going concern
The Directors have performed a going concern assessment using information available at the date of issue of these financial statements. The analysis has modelled a number of adverse scenarios on the Company's operations, liquidity, solvency and regulatory capital position.  It has also considered the stresses that the Company's financial position would have to endure before there is any likelihood of a breach of the relevant regulatory capital requirements.  The analysis has included all of the factors that management considers relevant, including the value of assets under management and possible mitigating actions.
Having performed this analysis the Directors have concluded that all regulatory capital requirements will continue to be met and that the Company will have sufficient cash to meet its obligations as and when they fall due for the foreseeable future so that the going concern basis remains appropriate.
(c)
Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity date of three months or less.

(d)

Debtors and Creditors

Short term debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.

(e)
Deferred taxation

Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates that are expected to apply when they crystallise based on current tax rates and law. Timing differences arise from inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.

(f)
Foreign Currencies

These financial statements are presented in pounds sterling, which is the Company’s functional and presentation currency. Assets and liabilities expressed in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are converted into sterling at appropriate rates ruling during the period. All differences on exchange are dealt with in the Statement of Income and Retained Earnings.

(g)
Pensions

The Company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable.

(h)
Operating leases

Rentals under operating leases are charged to the Statement of Income and Retained Earnings on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.

(i)
Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of an asset, less its estimated residual value, evenly over its expected useful economic life as follows:

Leasehold improvements
over the period to the next rent review.
Office equipment and computers
3 years
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
NOTES TO THE ACCOUNTS
All Monetary Amounts Expressed in Pounds Sterling
- 12 -
2
Turnover

The turnover shown in the Statement of Income and Retained Earnings represents fees earned for services provided in the normal course of business stated net of valued added tax.

 

The Company’s turnover was derived from its principal activity. The Company earns investment management and advisory fees from other members of the NS Partners group and third-party customers. Turnover attributable to the different geographical markets has not been disclosed as it is considered to be prejudicial to the Company’s interest.

 

3
Operating profit
2023
2022
The operating profit is stated after charging:
Depreciation
6,093
3,344
Auditor's remuneration:
Statutory audit
20,000
18,000
Operating leases - land and buildings
78,000
75,500
Foreign exchange (loss)/gain
(27,734)
39,856
4
Employees

The average number of people employed by the Company during the year amounted to 4 (2022: 4). All of these staff were employed within office and management. Staff costs, including directors, were:

2023
2022
Wages and salaries
946,692
928,410
Social security costs
130,159
130,177
Pension
79,948
1,652
1,156,799
1,060,239
The Company has a defined contribution pension scheme. At 31 December 2023 £15,886 (2022: £3,956) was accrued in respect of pension payments.
Directors' remuneration comprised:
2023
2022
Emoluments
738,561
663,910
Pension
-
-
Benefits in kind
4,360
3,105
742,921
667,015
The number of directors to whom pension benefits are accruing under defined contribution schemes is 1 (2022: 1). The amounts in respect of highest paid director are as follows:
2023
2022
Emoluments
718,561
643,910
Benefits in kind
4,360
3,105
722,921
647,015
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
NOTES TO THE ACCOUNTS
All Monetary Amounts Expressed in Pounds Sterling
- 13 -
5
Tax on Profit on Ordinary Activities
2023
2022
United Kingdom corporation taxation - current year
62,174
5,583
Deferred tax (note 9)
(7,146)
18,899
55,028
24,482
The tax charge for the years 2023 and 2022 is higher than the current standard rate of corporation tax in the United Kingdom of 19% (2022 - 19%). The differences are explained below:
Tax Reconciliation
Factors affecting the tax charge for the period
Profit/(Loss) on ordinary activities before tax
228,914
115,733
Tax at the standard rate of tax 23.52% (2022) 19%
53,842
21,989
Expenses not deductible for tax purposes
2,645
3,247
Under provision for deferred tax in prior period
(1,145)
-
Movement due to change in tax rate on deferred tax
(314)
(754)
Actual tax charge
55,028
24,482
Factors that may affect future tax charges
From 1 April 2023, the rate of corporation tax has increased from 19% for businesses with profits of less than £50,000 to 25% for businesses with profits over £250,000.
6
Tangible fixed assets
Leasehold premises
Computer Equipment
Office Equipment
Total
£
£
£
£
Cost
At 1 January 2023
6,521
15,295
12,174
33,990
Additions
-
6,314
-
6,314
At 31 December 2023
6,521
21,609
12,174
40,304
Depreciation
At 1 January 2023
815
14,662
11,780
27,257
Charged for the period
3,262
2,597
234
6,093
At 31 December 2023
4,077
17,259
12,014
33,350
Net book value
At 31 December 2023
2,444
4,350
160
6,954
At 1 January 2023
5,706
633
394
6,733
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
NOTES TO THE ACCOUNTS
All Monetary Amounts Expressed in Pounds Sterling
- 14 -
7
Debtors
2023
2022
Trade debtors
117,280
56,112
Trade debtors - group undertakings
592,659
449,297
Deferred tax recoverable (note 9)
8,450
1,304
VAT recoverable
10,098
12,999
Prepayments and accrued income
60,018
52,527
788,505
572,239

The amounts owed by group undertakings solely comprise amounts due from parent and fellow group undertakings.

8
Creditors: amounts falling due within one year
2023
2022
Trade creditors - group undertakings
23,338
-
Corporation tax
62,170
5,583
Other taxation and social security
16,131
20,905
Accruals and deferred income
699,675
582,747
801,314
609,235
9
Deferred taxation
2023
2022
At 1 January
1,304
20,203
Origination and reversal of timing differences
7,146
(18,899)
At 31 December
8,450
1,304
Accelerated capital allowances
(521)
(717)
Pension contributions unpaid at the year end and other timing differences
8,971
2,021
At 31 December
8,450
1,304
Deferred taxation at 31 December 2023 and 2022 reflected in these financial statements has been calculated at 25% and 19% respectively being the tax rate that was expected to apply to the reversal of the timing difference.
10
Share capital
2023
2022
Authorised share capital
100 A ordinary shares of £1 each
100
100
1,000,000 B ordinary shares of £1 each
1,000,000
1,000,000
1,000,100
1,000,100
Allotted, called up and fully paid
100 A ordinary shares of £1 each
100
100
60,000 B ordinary shares of £1 each
60,000
60,000
60,100
60,100
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
NOTES TO THE ACCOUNTS
All Monetary Amounts Expressed in Pounds Sterling
10
Share capital
(Continued)
- 15 -

The A ordinary shares carry the right to receive or participate in any dividend or other distribution paid or made by the Company out of profits or income earned after 31 December 2000. On a return of capital, on a winding up or otherwise, they participate pari passu with the B ordinary shares up to their nominal value but thereafter are not entitled to any further right of participation in the profit or surplus assets of the Company.

11
Reserves
The profit and loss account includes all retained profits and losses.
12
Controlling party

The ultimate and immediate parent Company is Notz Stucki Holding Ltd, a company registered in Bermuda. The directors consider there to be no ultimate controlling party.

13
Lease and other commitments

The Company has an annual commitment of £73,000 under operating leases under which the following amounts are payable:

2023
2022
Land and Buildings
Within one year
73,000
73,000
In one to five years
73,000
73,000
After five years
-
-
0
14
Analysis of net funds
At 1 Jan 2023
Cash flow
At 31 Dec 2023
£
£
£
Cash and cash equivalents
1,465,288
49,478
1,514,766
Total
1,465,288
49,478
1,514,766
15
Related party disclosures

All companies listed below are related by virtue of the ultimate parent company, apart from NS Partners Europe SA, whose ultimate holding company is NS International Holding Company Pte Ltd, incorporated in Singapore.

 

The following transactions in connection with investment management, advisory and other fees occurred between the Company and its related parties.

 

For the year ended 31 December 2023
Fees receivable
Fees receivable
for 2023
at 31 Dec. 2023
Related party
NS Partners SA
116,653
28,467
NS Management Ltd
1,322,880
524,192
NS Partners Europe SA
40,000
40,000
1,489,533
592,659
NS Asset Management UK Ltd
NS ASSET MANAGEMENT UK LTD
Report and Financial Statements 2023
NOTES TO THE ACCOUNTS
All Monetary Amounts Expressed in Pounds Sterling
15
Related party disclosures
(Continued)
- 16 -
For the year ended 31 December 2022
Fees receivable
Fees receivable
for 2022
at 31 Dec. 2022
Related party
NS Partners SA
121,441
30,462
NS Management Ltd
1,183,802
378,835
NS Partners Europe SA
40,000
40,000
1,345,243
449,297
There were fees payable by the Company to NS Partners SA for 2023 of £45,312 (2022 £44,096). Of these £23,388 (2022 - nil) was outstanding at 31 December 2023.
17
Post Balance Sheet Events

The directors do not consider that there are any material Post Balance Sheet Events to be disclosed.

18
Contingent liabilities
The Company had no contingent liabilities at 31 December 2023 or 31 December 2022.
19
Capital commitments
The Company had no capital commitments at 31 December 2023 or 31 December 2022.
Unaudited Appendix to the Financial Statements
NS Asset Management UK Ltd (“the Company”)
Company Registration No. 2946806

PILLAR 3 DISCLOSURE
Introduction
The Basel Committee on Banking Supervision introduced the Basel framework with the primary goal of promoting the safety and soundness of the financial system.  The framework consists of three Pillars.  In the United Kingdom, the Financial Conduct Authority ("FCA") introduced the framework's requirements into its rules as set out in the General Prudential Sourcebook ("GENPRU") and the Prudential Sourcebook for MiFID Investment Firms ("MIFIDPRU").

The FCA framework follows the Basel framework and also consists of three ‘Pillars':

• Pillar 1 sets out the minimum capital required to meet firms' credit, market and operational risks;

• Pillar 2 requires the firm to assess whether its Pillar 1 capital is adequate to meet its risks and is subject to annual review by the FCA; and

• Pillar 3 requires disclosure of specific information about the underlying risk management controls and capital position.

The rules in MIFIDPRU8 set out the provision for Pillar 3 disclosure as they apply to firms in the United Kingdom. The purpose of this document is to meet the Company's Pillar 3 obligations.

The rules permit firms to omit required disclosures if they believe that the information is immaterial and that omission would be unlikely to change or influence the decision of a reader relying on that information. They also allow firms to omit required disclosures where they believe that the information is regarded as proprietary or confidential.  We have taken the view that proprietary information is that which, if it were shared, would undermine our competitive position and that information should be considered to be confidential where there are obligations binding us to confidentiality with our clients, suppliers or counterparties. We have made no omissions on the grounds of immateriality, proprietary information or confidentiality.
Scope and Application of the Requirements
The Company is authorised and regulated by the Financial Conduct Authority.  As a regulated firm it is subject to minimum regulatory capital requirements.  The Firm is categorised by the FCA as a small and non-interconnected firm under the Investment Firms Prudential Regime (“IFPR”) having previously been categorised as a BIPRU limited activity firm for capital purposes under the Capital Requirement Directive.  It has no trading book exposures.
The Company is a member of a group but does not hold subsidiary or associated undertakings is therefore not required to make consolidated reports for prudential purposes.
Risk Management
The Company is governed by its directors who determine its business strategy and risk appetite.  They are also responsible for establishing and maintaining its governance arrangements along with designing and implementing a risk management framework that recognises the risks that the business faces.
The directors also determine how the risks that the business faces may be mitigated and assess, on an ongoing basis, the arrangements to manage those risks.  The directors meet on a regular basis and discuss current projections for profitability, cash flow, regulatory capital management, and business planning and risk management.  The directors manage the Company's risks through a framework of policy and procedures having regard to relevant laws, standards, principles and rules (including FCA principles, rules and guidance) with the aim of operating a defined and transparent risk management framework.  These policies and procedures are updated as required.
The directors have identified that business, operational, market and credit risks are the main areas of risk to which the Company is exposed.  The directors review the risks, and the controls and other risk mitigation arrangements and assess their effectiveness at least annually.  Where the directors identify material risks they consider the financial impact of these risks as part of the business planning and capital management and consider whether the amount of regulatory capital set aside for each risk is adequate.
Unaudited Appendix to the Financial Statements
(Continued)
Regulatory Capital
The Company is a limited liability company with a share capital as established in its articles of association.  At 31 December 2023 the capital available for use in its business amounted to £1,508,911 comprising issued share capital of £60,100 and retained profits of £1,448,811.  Further details of the Company's capital are set out in notes 10 to 12 of its financial statements for the year ended 31 December 2023.
The main features of the Firm's capital resources for regulatory purposes are as follows:
Capital item
£'000
Core Tier 1 Capital, less innovative tier 1 capital
1,509.00
Total Tier 2, innovative tier 1 and tier 3 capital
-
Deductions from tier 1 and tier 2 capital
-
Total Capital Resources, net of deductions
1,509.00
The Company is small with a simple operational infrastructure.  Its market risk is limited to foreign exchange risk on its accounts receivable and cash at bank in foreign currency, and credit risk from management and performance fees receivable from the funds under its management.  The Firm follows the standardised approach to market risk and the simplified standard approach to credit risk.
As discussed above, the firm is a small and non-interconnected firm under the IFPR.  Its capital requirements are the greater of:
• The permanent minimum requirement of £75,000;
• The fixed overhead requirement.  At 31 December 2022 this amounted to £235,000; and
• The wind down cost, estimated at £454,000.
FCA Remuneration Code (the “Code”)
The Company is a proportionality tier four firm for the purpose of the Code. This disclosure relates to the year ended 31 December 2023.
Remuneration policy is the responsibility of the board and is determined in conjunction with senior executives of NS Partners S.A. The policy aims to ensure that remuneration arrangements are consistent with, and promote, effective risk management, although the nature of the Company's business means that the Company's own balance sheet is not directly at risk.
Remuneration is considered in the context of a wide agenda including retention, recruitment, motivation and talent development and the external market environment. It also brings into account regulatory developments and general remuneration issues, as well as market and benchmarking data.
Information on the relationship between pay and performance.
The various components of total remuneration, which comprise base salary, discretionary bonus and benefits, are considered and are balanced appropriately having regard to the role fulfilled by each particular individual.
Group, Company and individual performance are all contributors to the determination of discretionary bonus awards. The principal objective in determining variable bonus awards is to reward individual performance whilst ensuring that such payments are warranted given business results. In this context performance can include financial and non-financial measures, risk measures and other relevant factors.
Quantitative information on remuneration
The Company considers that it has a single business.  The average number of people employed by the Company during the year was 4 (2022 - 4) and their total remuneration was £1,157,000.  This includes the aggregate remuneration of the Company's Code Staff who numbered 2.  Their total remuneration was £743,000.
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