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Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
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EDGBASTON INVESTMENT PARTNERS LLP
CONTENTS
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EDGBASTON INVESTMENT PARTNERS LLP
INFORMATION
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EDGBASTON INVESTMENT PARTNERS LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Executive Committee presents its annual report together with the audited financial statements of Edgbaston Investment Partners LLP (the "LLP") for the year ended 31 March 2025.
Designated Members
C. Fernando, M Myles and S. Nichols were designated members of the LLP throughout the year. The Executive Committee comprises the designated members, R. Cheung and G. Arrigoni.
Principal activities and business review
The principal activity of the LLP is Investment management. The LLP conducts its activities from its headquarters in London. The LLP is authorised and regulated by the Financial Conduct Authority ('FCA').
The LLP is the investment manager of Edgbaston Asian Equity Trust, an unregulated collective investment scheme based in the United States and the Edgbaston Asian Equity (Jersey) Trust, an unregulated collective investment scheme based in Jersey. The LLP also acts as the sub-investment manager of a segregated account domiciled in Ireland. Each of those vehicles specialise in investing in Asia (excluding Japan) equity securities. As at 31 March 2025, the LLP has assets under management of US$969 million (31 March 2024: US$1,068 million).
Results
The profit for the year before members' remuneration amounted to £3,873,760 (2024: £4,520,075).
Members' capital and interests
Members' capital is determined by the regulatory capital requirements of the FCA and any trading needs of the LLP. Capital contributed by the corporate member may not be repaid except where allowed under FCA rules. Capital contributed by any member other than the corporate member may be repaid provided that the repayment does not give rise to a violation of the LLP's regulatory capital requirements or the inability of the LLP to meet its legal, financial, insurance or client obligations. Any profits are shared among the members as decided by the Executive Committed, subject to the provisions of the Limited Liability Partnership Agreement ("LLP Agreement"). Policies for Members' drawings, subscriptions and repayment of Members' capital are governed by the LLP agreement.
Principal risks and uncertainties
The Executive Committee has overall responsibility for the establishment and oversight of the LLP’s risk management framework.
The principal risks to the LLP are (i) that the LLP’s investment performance will fail to satisfy client expectations or (ii) clients will choose to invest more of their assets in asset classes other than publicly traded Asian equity securities. Either outcome could lead to decreased assets under management, reduced turnover, and lower profits. The LLP does not utilise forward currency contracts to manage its own financial currency risks or other derivative instruments to reduce the volatility of the earnings in the LLP. Under normal circumstances, the LLP is not subject to material credit, liquidity or cash flow risks. The LLP’s investment strategy does not have any direct exposure to Russia or Ukraine. Considering current circumstances, there is no reason to believe that the conflict in Ukraine will materially impact the LLP’s business.
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EDGBASTON INVESTMENT PARTNERS LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Insurance
The LLP maintains professional indemnity, crime, cyber and Directors and Officers insurance cover at a level the Executive Committee consider appropriate for the business.
Future developments
The Executive Committee aim to maintain the policies which have resulted in the Partnership’s growth in recent periods.
Streamlined energy and carbon reporting
Energy and carbon information is not disclosed because the LLP is a low energy user as defined in the Environment Reporting Guidelines.
Public disclosures
The firm has documented the disclosures required by the FCA under MIFIDPRU 8. These are available from the LLP's website at www.edgbastonip.com
Members' responsibilities statement
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 LLP and of the profit or loss of the LLP for that period.
In preparing these financial statements, the members are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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EDGBASTON INVESTMENT PARTNERS LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Disclosure of information to auditor
Each of the persons who are Executive Committee Members at the time when this members' report is approved has confirmed that:
∙so far as that member is aware, there is no relevant audit information of which the LLP's auditor is unaware, and
∙that member has taken all the steps that ought to have been taken as an member in order to be aware of any relevant audit information and to establish that the LLP's auditor is aware of that information.
Auditor
The auditor, Blick Rothenberg Audit LLP, has indicated its willingness to continue in office. The Executive Committee will propose a motion re-appointing the auditor at a meeting of the Executive Committee.
This report was approved by the Executive Committee on 23 May 2025 and signed on their behalf by:
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EDGBASTON INVESTMENT PARTNERS LLP
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDGBASTON INVESTMENT PARTNERS LLP
FOR THE YEAR ENDED 31 MARCH 2025
We have audited the financial statements of Edgbaston Investment Partners LLP (the 'LLP') for the year ended 31 March 2025, which comprise the statement of comprehensive income, the statement of financial position, the statement of cash flows, the reconciliation of members' interests 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the Executive Committee'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 LLP'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 Executive Committee with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our auditor's report thereon. The Executive Committee is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and 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 this gives rise to 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 this other information, we are required to report that fact.
We have nothing to report in this regard.
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EDGBASTON INVESTMENT PARTNERS LLP
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDGBASTON INVESTMENT PARTNERS LLP (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and noncompliance with laws and regulations, our procedures included the following: enquiring of management concerning the Group’s policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the Group’s policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the Group’s policies in relation to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the Group operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Group. The key laws and regulations we considered in this context included the UK Companies Act 2006, as applied to limited liability partnerships, the Financial Services and Markets Act 2000 and applicable tax legislation. One particular focus area was the risk of fraud through management override of controls. Our procedures to respond to risks identified included the following: performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reviewing the bank statements of the Group for evidence of any large or unusual activity which may be indicative of fraud; enquiring
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EDGBASTON INVESTMENT PARTNERS LLP
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDGBASTON INVESTMENT PARTNERS LLP (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
of management in relation to any potential litigation and claims; and testing the appropriateness of journal entries and other adjustments.
Another focus area was non-compliance with the rules of the Financial Conduct Authority (‘the FCA’). The LLP was authorised and regulated by the FCA throughout the period. Our procedures to respond to risks identified included the following: reviewing correspondence between the LLP and the FCA, performing analytical review to detect receipts of client money and remaining alert to the possibility of accidental receipt of client monies; and discussion of regulatory matters with the appointed officers of the LLP. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors 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.
This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP'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 LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
WC2B 5AH
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EDGBASTON INVESTMENT PARTNERS LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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EDGBASTON INVESTMENT PARTNERS LLP
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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EDGBASTON INVESTMENT PARTNERS LLP
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the members and were signed on their behalf on 23 May 2025.
The notes on pages 14 to 20 form part of these financial statements.
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RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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