Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 28
RESPONSIBLE CAPITALISM AND MANAGING
CONFLICTS OF INTERESTS
As an asset manager, Liontrust has exposure to a range of conflicts
of interest across its operations. The Group aims to manage these for
the benefit of clients and investors and also to ensure effective systems
and processes. (Liontrust’s Conflict of Interest Policy is available at:
https://www.liontrust.co.uk/investor-relations/governance )
Definition and examples of potential conflicts
Conflicts of interest management at Liontrust is a very specific
part of the Group’s wider approach to conflicts. As such, this
section refers only to conflicts of interest and not to wider conflict
management at Liontrust. For the purposes of this section, Liontrust
defines a conflict of interest as a situation where the outcomes of
one party are incompatible with the outcomes of other and where
there is a risk of damage to the interests of one party.
Such instances may include (but are not limited to):
Potential situation
Risk in this situation
Liontrust (corporate) clients and/or significant shareholders are issuers of
securities which are held by Liontrust funds and/or other fiduciary
accounts managed by Liontrust.
Fund managers use their proxy votes to support (corporate) clients or major
shareholders instead (or to the detriment of) the client (i.e. the investor in
Liontrust’s fund(s)).
Liontrust (corporate) clients and or business partners are proponents of
shareholder resolutions which Liontrust funds do not support.
Fund managers vote in line with (corporate) clients and/or business
partners which doesn’t help (or actively runs contrary to) the best interests of
investors in the fund (who are Liontrust’s clients).
Liontrust Directors sit on the Boards of public companies that are held in
funds and/or other fiduciary account(s) managed by Liontrust.
Fund managers may be swayed to vote in line with management of these
companies in support of Liontrust employees, rather than in the best interests
of clients (where these are different).
Liontrust shares may be held in funds and/or other fiduciary accounts
manged by Liontrust.
Fund managers may feel influenced to vote in line with Liontrust (their
employer) rather than in the best interest of investors (Liontrust’s clients), if
these are different.
The shares of companies in which Liontrust Board members serve as senior
executives are also held in Liontrust funds and/or other fiduciary accounts
managed by Liontrust
Fund managers may feel influenced to vote in support of the companies in
which Liontrust Board members serve as senior executives, rather than in
clients’ best interest (where these are different).
28 - Responsible Capitalism Report 2022