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Liontrust Investment Partners LLP

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Liontrust is a long term active fund management company that uses proprietary investment processes to identify and hold companies for our clients for the medium to long term. Our funds have a low average turnover - i.e. our average investment in a company is a number of years, and many companies have been held for much longer. Investing in companies over the long term emphasises the need for good governance and stewardship.

At the heart of the Liontrust culture are the proprietary investment processes that each team develops and applies to the management of their funds. Liontrust believe investment processes are key to consistent long-term performance and effective risk control. Each team have determined the key factors and processes that will drive stock selection. As part of this, portfolio managers are responsible for performing appropriate due diligence on their investments and this will, at a minimum, include regularly reviewing various aspects of a company including the strategy, performance, risk, capital structure and corporate governance. There is a recognition that these factors impact the long term returns of companies.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Liontrust recognises that good governance & stewardship, sustainability and social impact is important to stock selection and longer term performance. Liontrust investment teams take a holistic approach that aims to include any information in our investment decisions that could be material to investment performance which includes ESG factors - these factors are taken into account as there is a recognition that they may have a material effect on the returns delivered to clients. There are a number of core principles we apply across the whole of our fund range, these include:

A minimum standard of governance and behaviour of what we expect from companies we invest in;

  • Support from a central Governance and Stewardship team;
  • A commitment to the FRC’s Stewardship Code;
  • Active voting in line with clearly articulated voting policies.

Liontrust have a single specialised Sustainable Investment Team who, as at the 31st December 2018, manage over 30% of Liontrust's AUM. The Sustainable Investment Team fully integrate ESG issues into their investment process, taking a thematic approach to identify investment opportunities that are making a positive contribution to society (environmental, social and governance (ESG) factors).

Liontrust signed up to the PRI in April 2018, however the Sustainable Investment team have been signatories for a number of years and are represented on a number of PRI working groups to include PRI Cyber Security, PRI Sustainable Palm Oil Investor Working Group, PRI Global Investor Taskforce on Tax & the PRI Tax Advisory Committee and the PRI SDG and Active Ownership Committee and PRI Listed Equity Advisory Committee.


01.6. Additional information [Optional].

I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

Formalised corporate governance, engagement and voting policies applicable to Liontrust are publicly available. Liontrust are in the process of engaging an external provider to provide ESG and controversy data for all investment teams. All investment teams receive data on Governance of their holdings supplied by ISS.

The Sustainable Future Equities investment process is available at

The Sustainable Future Fixed Income investment process is available at

The Sustainable Investment team screening criteria is available at

The Sustainable Investment team engagement policy and annual review for 2018 are available at



SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Liontrust is committed to maintaining appropriate arrangements to identify, manage and mitigate actual and potential conflicts of interest, with the objective of ensuring that our shareholders and clients are not adversely affected. It is our duty to act in the best interests of our shareholders and clients in the conduct of our investment business, including when engaging with investee companies and exercising our rights as shareholders. A detailed conflicts of interest procedure document covers aims to ensure that any conflicts of interest that may arise are identified, managed, and mitigated. A copy of our Conflicts of Interest policy can be found at

03.3. Additional information. [Optional]

Liontrust has established procedures which are designed to identify and manage conflicts of interest. The following are examples of conflicts and the arrangements for managing these conflicts:

• The Company's corporate governance and organisational arrangements provide for the segregation of duties and aim to prevent conflicts arising by ensuring that an individual cannot exercise undue or inappropriate influence over another person or process.

• Segregation of duties and supervision for persons engaged in different business activities including procedures for ensuring appropriate communication between business functions.

• Personal account dealing restrictions which are applicable to all employees and relevant persons.

• Remuneration policies which are designed to promote sound and effective risk management and align the interests of the company's management and investors.

• Limitation and management of personal conflicts of interest, including policies governing the offering and acceptance of gifts and hospitality involving third parties.

• Employees are required to notify the company of any outside business interests and external directorships.

SG 04. Identifying incidents occurring within portfolios (Private)