Overview
History and Firm Structure
Silchester International Investors Limited (“SII Ltd”) was founded in 1994. SII Ltd’s business objective
was to offer discretionary investment management services, principally to U.S. institutional investors
through a few privately offered, unregulated collective investment schemes. Although SII Ltd was
incorporated as a corporation, it had operated internally as a partnership. In November 2010, SII Ltd
contributed its international equity investment management business to Silchester International Investors
LLP (“Silchester”) in exchange for a partnership interest in Silchester. Following the contribution,
Silchester International Investors Limited changed its name to Silchester Partners Limited (“SP Ltd”). All
of SII Ltd’s employees, including all portfolio managers, research analysts and members of its operations
and administration groups, became employees or members of Silchester. Silchester then succeeded to SII
Ltd’s SEC registration. In July 2016, SP Ltd contributed its partnership interest in Silchester to Silchester
Capital Limited (“SCL”) in exchange for shares in SCL. In April 2019, SCL changed its name to Silchester
Continuation Limited. SP Ltd is a significant shareholder in SCL and the working partners of Silchester are
minority shareholders. SCL is Silchester’s regulatory capital provider.
Silchester is a registered investment advisor in the USA. Silchester is also authorised and regulated by the
UK Financial Conduct Authority (the “FCA”) and registered with the Central Bank of Ireland (the “CBI”).
This registration is required for Silchester to be appointed as a sub-advisor to Irish funds which are, or will
be, subject to regulation under the rules of the European Union for Undertakings for Collective Investment
in Transferable Securities (“UCITS”). Additional registrations may be required from time to time
depending on the securities that form part of Silchester’s investment programme.
Silchester is a UK limited liability partnership. SCL owns a substantial majority (>75%) of Silchester’s
capital. The remaining capital has been contributed by the working members.
Under the terms of the limited liability partnership agreement (the “LLP Agreement”), legal members of
the partnership may nominate individuals who will form part of Silchester’s Business Supervisory Group.
The actual appointment or removal of these individuals is determined by vote. Voting rights are determined
by capital ownership. SCL holds a majority of Silchester’s capital and therefore has veto authority
over the
specific individuals forming part of the Business Supervisory Group. Under the terms of the LLP
Agreement, the Chairman of the Business Supervisory Group and a majority of the members of the Business
Supervisory Group must be legal members or employees of Silchester and/or its wholly owned subsidiary,
Silchester International Investors, Inc. (“SII Inc.”).
The Business Supervisory Group is entitled to appoint a majority of the members of any underlying business
group operated by the firm. SCL is able to appoint one representative to attend and speak at each meeting
of the Business Supervisory Group. SCL may also appoint one representative to Silchester’s Investment
Supervisory Group and Partnership Promotion / Remuneration Group. The SCL representative may only
vote at the Partnership Promotion / Remuneration Group meetings. The SCL representative is prohibited
from attending, speaking or voting at any operation group, subgroups, committees, groups or similar that
support Silchester’s day to day business and operations (e.g., portfolio implementation, dealing, compliance
and operational risk, marketing and client services).
Silchester’s income profits are allocated between SCL and the employees and working members of
Silchester and SII Inc. Under normal circumstances, a majority of income profits are expected to be paid
to the employees and working members. The ratio of income profits allocated to each party are subject to
various adjustments if a working partner or senior employee retires or adjusts their contribution to the
business in any material way. 100% of Silchester’s capital profits accrue to SCL.
Types of Services that Silchester Provides to Clients
As of 30th September 2023, Silchester had approximately US$40.7 billion of discretionary assets under
management.
Silchester provides discretionary investment management services to its Clients. Silchester possesses a
wide range of analytical, research, portfolio implementation and administrative skills. Silchester specialises
in investing in publicly traded non-U.S. equity securities using a bottom up intrinsic value based investment
approach.
Silchester does not manage assets on a non-discretionary basis, participate in wrap fee programmes or
provide financial planning, quantitative planning or market timing services. Silchester does not customise
or modify its investment programme or agree to restrictions on investments in certain securities or types of
securities. Unitholders may not impose such restrictions.