Liontrust Responsible Capitalism Report 2024 - Flipbook - Page 93
The Global Equity, Equity Income and UK Equity funds use materiality
assessments, which are part of the team’s proprietary fundamental
research. Materiality assessments feed directly into the investment
decisions the team makes on behalf of clients.
The team’s approach to materiality has three primary steps:
Materiality assessments are the approach by which the team
examines and considers financial, operational, ESG and any other
exposures faced by the team’s holdings. This approach renders
what the team believes to be a more accurate picture of the main
risks and opportunities that a company currently faces as well as
those that it could encounter going forward.
Identify and
prioritise (as
part of the team’s
fundamental
research)
Engage and
monitor
Score for
resiliency and
conviction
The aim of this process is not only to measure the likelihood and
impact of risks and opportunities that each holding faces, but
to understand and, in some cases, influence how a company
manages these exposures..
Risk Monitoring
Independent and robust oversight from the
performance and risk team and the IOC.
Idea Generation
Identifying a broad range of
companies that can create
wealth for our clients.
Portfolio Construction
Our ESG work links our
engagements with conviction
levels, through a conviction score.
This affects investment decisions
and portfolio weightings.
Purpose
To make money for
our clients, responsibly
Fundamental
Research
We undertake a materiality
assessment, explicitly
incorporating ESG factors
as we build our investment
thesis. This data is captured
and tracked on our propriety
system, MajHive.
Resiliency
Each company is assigned a
propriety Resiliency Score, driven
by how well the group manages
its key issues.
Engage
Engagement topics feed from
the materiality assessments. We
dynamically track and monitor our
engagements via MajHive.
Responsible Capitalism Report 2023 - 93