Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 130
STEWARDSHIP CODE 2020 – REFERENCES TO PRINCIPLES
Principle
Page
Principle 1
• Purpose
6
Principle 5
• Review and assurance of policies, practices
128–129
• Culture (operating philosophy)
• Internal/external assurances and rationale
128–129
• Rationale for approach to review/assurance
128–129
6, 122
• Values
18
• Business model
122
• Strategy
8
• Investment beliefs
(factors and rationale by investment team)
–
–
–
–
–
–
–
56
72
78
86
96
102
106
• Actions to ensure effective stewardship
14–17
– How purpose, investment beliefs
guide stewardship
14, 8–13, 15–17, 53-55
– Extent to which investment beliefs
have served clients
55, 56, 72, 86, 96, 102, 106
22–25; 122–128
• Seniority, experience, training and diversity
22–28, 48–49
• How governance enables stewardship
28
• Investment in systems, processes, analysis
28
• How and extent to which service providers
are used
32–24, 114
• Performance management; incentivising
stewardship
22–28
• Effectiveness of structures/processes;
possible improvements
26–27
• Rationale for Liontrust’s approach to governance
Principle 3
• Conflicts policy and its application to stewardship
28
29–30, 31
• Managing conflicts of interest linked to stewardship 29–30, 31
Principle 4
• Identifying, responding to market-wide and
systemic risks
125–127
• Working with stakeholders to promote financial systems 19–21
• Role in relevant initiatives; contribution to these
• Alignment of investments
19–21; 74
56–111
– Net zero alignment
53-54, 58-62, 74, 88-89, 98-99, 104,
108, 39-43
– Climate change related risks
126–127, 39–43
130 - Responsible Capitalism Report 2023
128, 37
• How review leads to better stewardship
128
53–55
Sustainable Investment Team
Economic Advantage Team
Multi-Asset Team
Global Fundamental Team
Cashflow Solution Team
Global Innovation Team
Global Fixed Income Team
Principle 2
• Governance, organisational structures,
processes enable oversight
• Ensuring fair, balanced, understandable reporting
Principle 6
• Liontrust’s client base
35
• Assets under management and advice (AuMA)
35
• Seeking and taking account of client needs
36–38
• Rationale and evaluation of approach
36–38
• Communicating with clients about stewardship
37–38
• Managing assets in line with client policies
38
• Instances where there is mis-alignment
38
• Investment time horizons
38
• Seeking, taking account of clients’ views
36–38
• Alignment with stewardship/investment policies
Principle 7
• How stewardship differs between
teams/investment processes
38
53–55
• Issues/factors prioritised for assessing investments by investment
team; how each investment team integrates and engages on
material ESG issues; impact of engagement on investment
decisions (as appropriate)
– Sustainable Investment Team
– Economic Advantage Team
– Multi-Asset Team
– Global Fundamental Team
– Cashflow Solution Team
– Global Innovation Team
– Global Fixed Income Team
• Service providers receive clear instruction
56–71
72–77
78–85
86–95
96–101
102–105
106–111
32–34, 114
Principle 8
• Monitoring service providers
32–34, 114, 119
• How services have been delivered
to meet Liontrust’s needs
32–34, 114, 119
Principle 9
• How engagement is selected and prioritised; engagement
objectives, methods and examples (by investment team or
Responsible Capitalism team, on their behalf)
–
–
–
–
–
–
–
Sustainable Investment team
Economic Advantage Team
Multi-Asset Team
Global Fundamental Team
Cashflow Solution Team
Global Innovation Team
Global Fixed Income Team
56–71
72–77
78–85
86–95
96–101
102–105
106–111