Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 75
Engagement on other ESG related topics
The team also engaged its holdings on other ESG topics, where these were deemed to be material to the investment process. Examples include:
Company
What the
group does
Date
Discussion
topic(s)
Discussion summary
Impact on investment
decision (if any)
Instem
Life Sciences
Software
September
and October
2023
Governance;
long-term
prospects; bid
for company
The team met with Instem several times (both with the group’s
executives and an independent NED) following the board
recommending a bid from French Private Equity firm Archimed.
The team believed that the offer fundamentally undervalued the
long-term prospects of the business. The team also engaged
Instem on the governance around the discussions and decisions
to recommend the bid.
The team determined it
was in the best interests
of unit holders to retain
the full position rather
than selling any part
of the holding in the
market to vote against
the deal.
YouGov
Public opinion July 2023
and data
company
Acquisition
risk
The team met with YouGov’s management to discuss its
acquisition of GfK. While the team was supportive of the
placing and the deal, the risk profile of the company had
changed.
The investment
team updated the
risk score for the
business following the
acquisition. This moved
the target band down
a level and resulted
in a reduction in the
position size of the
holding.
Fonix
Mobile
payments
Regulatory
risk
The team had a good meeting with Fonix on its businesses
results, strategy and future prospects. The team asked about the
group’s regulatory risk (presented by the UK Gambling review)
as the team perceives this to be a longer-term threat to the
business.
Following engagement,
the team updated the
group’s risk score,
moving the company
down a percentage in
the target position size.
November
2023
Adherence to Liontrust’s controversial weapons policy
• The Economic Advantage team chose in 2023 not to be governed
by Liontrust’s controversial weapons policy which excludes
investment in companies with involvement in cluster munitions,
anti-personnel land mines, biological weapons and/or chemical
weapons. In 2024, however, the team has stated it will sign
up to the policy. (Liontrust’s controversial weapons policy can
be found from the following web page: https://www.liontrust.
co.uk/about-us/corporate-sustainability/a-responsible-investor )
• The team is unlikely, however, to invest in companies with ties to
controversial weapons.
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