Liontrust Responsible Capitalism Report 2021 - Flipbook - Page 6
RESPONSIBLE CAPITALISM AT LIONTRUST
Responsible Capitalism is the platform on which Liontrust brings together
its ESG integration, stewardship, and sustainability-related activities.
Responsible Capitalism is about focusing on what matters most
to our clients, our employees, our wider stakeholders and our
investments. While it may seem that this could create conflicts of
interests (as people may have differing views on this), Liontrust points
to its investment teams and their respective investment processes in
determining what matters most. Each team is expert in managing
its funds and understanding its holdings. Where material issues
arise, the teams often focus on these topics during engagement and
take that engagement into consideration when making investment
decisions. Using this focus on materiality, engagement, and issue
management, Liontrust and its investment teams can more accurately
determine what to spend time and energy on to provide the best
service to our clients across every aspect of our operations.
For Liontrust’s business, we take account of the exposures that the
Plc faces and work to manage these effectively.
LIONTRUST INVESTMENTS
Responsible Capitalism focuses on the material considerations (as
determined by our investment teams’ individual processes) that
6 - Responsible Capitalism Report 2022
could impact investments over the investable time horizon of the
funds. Understanding these risks and opportunities, including those
that are ESG related, can be part of fundamental analysis in fund
management, and may help our investment teams be more aware
of issues and make better investment decisions over the longer
term. Overall, integrating these considerations may also help
create shareholder value and deliver investment performance for
our clients.
This type of assessment goes hand in hand with our fiduciary duty
to our clients to be responsible stewards of the investments that we
make on their behalf. Covered in this report are our stewardship
activities, including: serving the best interests of our clients;
engaging with our investments on their material issues (including
those that are ESG related) as determined by our investment
teams’ processes; undertaking proxy voting; reporting on our
activities; and doing our upmost to promote well-functioning,
global markets. (More information on how and the extent to
which Liontrust’s investment teams integrate ESG considerations
is on pages 40–91.)