Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 108
COMMITMENT TO NET ZERO
The Global Fixed Income team’s funds are committed to net zero
and are listed below. Note that the fund WACI numbers for 2022
and for 2023 are computed on an EVIC (enterprise value including
cash) basis with the actual AuM of the fund in USD as at the end
Funds
of December 2023 which differs from the approach at the end of
December 2022 which used total AuM for each fund as being $1
billion. Going forward, Liontrust will aim to use actual fund AuM
for this computation so that the figures will be more comparable.
Benchmark used
for MSCI ESG
analysis
Benchmark
WACI end 2019
Fund WACI end
2022
Fund WACI end
2023
End 2023 fund
WACI lower than
2019 benchmark
WACI by
ICE BAML
Global
420.2
156.6
125.7
70%
Liontrust Strategic Bond
Bloomberg
Barclays
276.1
124.4
41.5
85%
Liontrust GF Strategic Bond
Bloomberg
Barclays
276.1
128.2
47.5
83%
Liontrust GF Absolute Return Bond
Bloomberg
Barclays
276.1
126.9
57.2
79%
BOND FUNDS
Liontrust GF High Yield Bond
CONTAINS SOVEREIGN DEBT
Engagement on climate change
During the year, the team engaged its issuers on a variety of climate change related issues (see examples below.)
Company
What the
group does
Date
Discussion
topic(s)
Discussion summary
Impact on investment
decision (if any)
RWE
Utility
12 Jan 2023
Thermal coal
revenues
RWE pivoted on their decision to reduce investments in thermal
coal. The team engaged with the company, who included the
impact of the Russian invasion of Ukraine behind its reasoning.
This is understandable, but does contradict the strategy to
reduce coal generation.
Sold out of RWE bonds
immediately.
HSBC
Banking
16 Jan 2023
Funding
for RWE’s
thermal coal
expansion
HSBC provided the team with a response: HSBC reviewed this
transaction as part of its approval processes and was satisfied
that it met the parameters of its coal policy, including no net
increase in thermal coal mining tonnage, and planned coal
phase out by 2030. The transition to net zero requires banks
like HSBC to engage with energy clients on their transition
plans and support their phased exit from fossil fuels in line with
science-based targets. As set out in the team’s policies, the team
continues to do this in line with its own stated net zero ambition.
The team was satisfied
with HSBC’s response
and retained the
position.
108 - Responsible Capitalism Report 2023