Investment beliefs and processes

In terms of stewardship, Liontrust’s investments teams engage their holdings on the issues material to their distinct investment process, including those that are ESG-related. Investment teams also vote their own proxies, in line with their investment processes and philosophies. 

Investment teams and stewardship

Liontrust’s investment processes guide the teams’ stewardship and decision making. The differences between the investment teams’ approaches to the integration of ESG, stewardship, engagement, and proxy voting stem from the different processes of each investment team and, to a smaller degree, by the asset class (rather than by geography). 

Where possible, the investment teams vote their proxies. Many teams also engage their holdings on material issues (examples of this are provided in the investment sections of this report). 

Controversial Weapons 

Liontrust has a controversial weapons policy to which its investment teams subscribe and which can be found in the People, Planet and Society section of the Liontrust website. This policy, which has an opt-out clause for teams that wish not to adhere to it, covers the exclusion of cluster munitions, land mines and bio-chemical weapons. Liontrust’s investment universe is screened quarterly for involvement in controversial weapons, and those names with involvement are sent to Compliance for flagging on Liontrust’s trading platform. Those teams adhering to the policy are not able to buy (top up or initiate a position in) the names on the controversial weapons excluded list. They are permitted, however, to sell those names (as is required under the policy). Liontrust uses MSCI’s ESG data for adherence to this screening. 

We are also a signatory to the UK Stewardship Code.

The teams report on the stewardship activities and where possible show the connection between ESG integration, stewardship and investment decisions.