Company Information
Contents
Strategic report
For the year ended 31 March 2025
The Directors present their Strategic report for QSM Asset Management Limited ('the company) for the year ended 31 March 2025.
The principal activity of the company is to provide investment advisory services to the QSM Global Equity Long Short Fund (the Fund), a UCITS fund based in Dublin. This fund was approved by the Central Bank of Ireland on 16 July 2024.
The company’s key financial and performance indicator during the year was pre tax profit. During the financial period under review, the company generated a pre tax loss of £209,249.
The results for the year are in line with the director's expectations and forecasts for the year. The directors expect growth in the foreseeable future now that the Fund has been launched and has achieved satisfactory investor inflows.
The results for the year are in line with the director's expectations and forecasts for the year. The directors expect growth in the foreseeable future now that the Fund has been launched and has achieved satisfactory investor inflows.
The company's principal financial assets are bank balances, trade and other receivables. The key risks to which the
Company is exposed are credit risk, liquidity risk and operational risk. The directors consider financial risks regularly and
seek to manage the effects on the financial performance of the company.
Credit risk: The Company's credit risk is primarily focused on the credit worthiness of the bank at which cash on the
Company's balance sheet is held, the credit risk is limited as the counterparty banks have very high credit ratings.
Liquidity risk: The Company's approach to managing liquidity risk is to ensure, as far as possible, that it will always have
sufficient liquidity to meets it liabilities when due. As part of the Company's regulatory requirements it maintains an
'Internal Capital And Risk Assessment' (ICARA). The ICARA is kept current based on the latest available information and is
used in conjunction with the compliance monitoring programme, compliance manual and a fully documented system of
controls and procedures.
Operational Risk: The Company relies on a number of third-party relationships and services to carry out business
functions. Operational risk can arise either from the inability to effectively carry out robust evaluations of third parties, or
the inability of third-party service providers to meet service requirements. During the year under review and up to the
date of approval of the annual report and financial statements, there was in place an ongoing process for identifying,
evaluation and managing the significant risks faced by the company.
Company is exposed are credit risk, liquidity risk and operational risk. The directors consider financial risks regularly and
seek to manage the effects on the financial performance of the company.
Credit risk: The Company's credit risk is primarily focused on the credit worthiness of the bank at which cash on the
Company's balance sheet is held, the credit risk is limited as the counterparty banks have very high credit ratings.
Liquidity risk: The Company's approach to managing liquidity risk is to ensure, as far as possible, that it will always have
sufficient liquidity to meets it liabilities when due. As part of the Company's regulatory requirements it maintains an
'Internal Capital And Risk Assessment' (ICARA). The ICARA is kept current based on the latest available information and is
used in conjunction with the compliance monitoring programme, compliance manual and a fully documented system of
controls and procedures.
Operational Risk: The Company relies on a number of third-party relationships and services to carry out business
functions. Operational risk can arise either from the inability to effectively carry out robust evaluations of third parties, or
the inability of third-party service providers to meet service requirements. During the year under review and up to the
date of approval of the annual report and financial statements, there was in place an ongoing process for identifying,
evaluation and managing the significant risks faced by the company.
The company has to date not adopted any corporate governance code, but as an entity regulated by the FCA, it has
incorporated a governance system that is primarily structured to ensure regulatory compliance, which in turn benefits
primary stakeholders, investors (clients) and ensures adherence to best practice. As part of the decision-making process
the Directors place significant importance upon several stakeholders and factors, including but not limited to
shareholders, employees, vendors, diversity/inclusion criteria, and the welfare of the planet.
incorporated a governance system that is primarily structured to ensure regulatory compliance, which in turn benefits
primary stakeholders, investors (clients) and ensures adherence to best practice. As part of the decision-making process
the Directors place significant importance upon several stakeholders and factors, including but not limited to
shareholders, employees, vendors, diversity/inclusion criteria, and the welfare of the planet.
This report was approved by the board on 23 July 2025 and signed on its behalf by:
Page 1
Directors' report
For the year ended 31 March 2025
The directors present their annual report together with the Strategic Report and the financial statements of QMS Asset Management Limited ('the company') for the year ended 31 March 2025. The comparative information is for the period from 23 June 2023 to 31 March 2024.
The loss for the year, after taxation, amounted to £209,249 (Period from 23 June 2023 to 31 March 2024 - loss £199,807).
The directors who served during the year were:
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements 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 Company will continue in business.
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 to 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.
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Directors' report (continued)
For the year ended 31 March 2025
This report was approved by the board on 23 July 2025 and signed on its behalf by:
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Independent auditors' report to the members of QSM Asset Management Limited
For the year ended 31 March 2025
We have audited the financial statements of QSM Asset Management Limited (the 'Company') 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 Statement of changes in equity 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 ('FRS 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 Auditors' 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 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 directors' 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 our 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 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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Independent auditors' report to the members of QSM Asset Management Limited (continued)
For the year ended 31 March 2025
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Strategic report or the Directors' report.
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 Auditors' 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:
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Independent auditors' report to the members of QSM Asset Management Limited (continued)
For the year ended 31 March 2025
Auditors' responsibilities for the audit of the financial statements (continued)
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:
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:
∙the Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including knowledge specific to auditing regulated investment management firms;
∙we made enquiries of management as to where they considered there was susceptibility to fraud, and their knowledge of actual, suspected and alleged fraud;
∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial statements of the company through discussions with directors and other management at the planning stage, and from our knowledge and experience of regulated investment management firms;
∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to misstatement, including with respect to fraud and non-compliance with laws and regulations; and
∙we focused our planned audit work on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including the Companies Act 2006, The Financial Services and Markets Act 2000, employment legislation and taxation legislation.
We assessed the extent of compliance with the laws and regulations identified above through:
∙making enquiries of management;
∙reviewing legal expenditure throughout the year for any potential litigation or claims; and
∙considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙determined the susceptibility of the company to management override of controls by checking the implementation of controls and enquiring of individuals involved in the financial reporting process;
∙reviewed journal entries to identify unusual transactions;
∙performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any large variances from the prior year;
∙reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias on the part of the company’s management;
∙tested the occurrence of turnover by obtaining third party confirmations from the Company's administrator and reviewing the investment management agreements between the company and the fund; and
∙carried out substantive testing to check the occurrence and cut-off of expenditure.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included:
included:
∙agreeing financial statement disclosures to underlying supporting documentation; and
∙enquiring of management as to actual and potential litigation and claims.
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Independent auditors' report to the members of QSM Asset Management Limited (continued)
For the year ended 31 March 2025
Auditors' responsibilities for the audit of the financial statements (continued)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those
leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the
more that compliance with a law or regulations is removed from the events and transactions reflected in the financial
statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding
irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion,
omission or misrepresentation.
leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the
more that compliance with a law or regulations is removed from the events and transactions reflected in the financial
statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding
irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion,
omission or misrepresentation.
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 Auditors' 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 Auditors' 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.
for and on behalf of
Statutory Auditor
130 Wood Street
London
EC2V 6DL
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Statement of comprehensive income
For the year ended 31 March 2025
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Statement of financial position
As at 31 March 2025
The financial statements were approved and authorised for issue by the board on 23 July 2025 and were signed on its behalf by:
The notes on pages 12 to 21 form part of these financial statements.
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Statement of changes in equity
For the year ended 31 March 2025
Page 10
Statement of cash flows
For the year ended 31 March 2025
Page 11
Notes to the financial statements
For the year ended 31 March 2025
QSM Asset Management Limited is a privat company limited by shares and incorporated in England & Wales. Its registered office and principal place of business is 1 King William Street, London, United Kingdom, EC4N 7AF. The registered number of the company is 14955733.
2.Accounting policies
The following principal accounting policies have been applied:
After reviewing the forecasts and projections the directors have reasonable expectations that the company has adequate resources to continue in operational existence for the foreseeable future. The Fund, for which the Company is investment adviser, was approved on 14 July 2024 and has achieved investor flows ahead of projections. This has resulted in revenue to the company. The company therefore continues to adopt the going concern basis in preparing its financial statements
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Notes to the financial statements
For the year ended 31 March 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Notes to the financial statements
For the year ended 31 March 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
The whole of the turnover is attributable to the principal activity of the company.
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Notes to the financial statements
For the year ended 31 March 2025
Page 15
Notes to the financial statements
For the year ended 31 March 2025
Page 16
Notes to the financial statements
For the year ended 31 March 2025
10.Taxation (continued)
There are no factors that may affect future tax charges.
Page 17
Notes to the financial statements
For the year ended 31 March 2025
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Page 18
Notes to the financial statements
For the year ended 31 March 2025
Page 19
Notes to the financial statements
For the year ended 31 March 2025
Share premium account
Profit and loss account
An analysis of changes in net debt has not been presented as all of the company's cash flows relate to movements in cash, and the company has no items to include in such an analysis.
The company had no contingent liabilities at 31 March 2025 or 31 March 2024.
The company had no capital commitments at 31 March 2025 or 31 March 2024.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £3,082 for the year ended 31 March 2025 (Period from 23 June to 31 March 2024: £110 ) . Contributions totalling £770 were payable to the fund at 31 March 2025 (2024: 110 ) and are included in creditors.
Page 20
Notes to the financial statements
For the year ended 31 March 2025
The ultimate controlling party of the company is Matthew Smith .
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