Latitude Investment Management LLP (“Latitude”) is an independent investment boutique founded in 2016, managing a fundamental global equity strategy and a global absolute return strategy. Stewardship sits at the core of everything we do.
Our investment philosophy is built on rigorous fundamental research with ESG analysis fully integrated throughout. This includes direct engagement with company management, analysis of public information, and proprietary and independent research.
At Latitude, we consider ourselves stewards of our clients' capital - a philosophy centred on what we believe matters most: absolute performance, sustainability, and enduring value. We believe asset owners and managers are uniquely positioned to identify systemic market problems and drive meaningful change, making responsible ownership as important as thoughtful stock selection.
As long-term investors, our core principles are:
The UK Stewardship Code is a voluntary code setting out principles for investor engagement with UK equity issuers. Latitude welcomes the publication of the UK Financial Reporting Council Stewardship Code and is supportive of its objectives, which seek to enhance engagement between institutional investors and companies to improve long-term shareholder returns and governance. Through our stewardship policy, we aim to provide a robust and pragmatic framework to ensure our ownership
responsibilities are exercised appropriately, that we effectively monitor the companies in which we invest for our clients and that, where we believe it is necessary, we intervene with those companies on issues that are likely to adversely impact the interests of our clients.
The Code operates on a "comply or explain" basis and requires institutional investors to:
Our approach to each principle of the UK Stewardship Code is set out below. Any questions regarding this statement or Latitude's approach to stewardship should be directed to James Foster, Chief Operating Officer, at james.foster@latitudeim.com.
Latitude acknowledges its fiduciary duty to preserve and enhance client value and regards itself as a steward of its clients' capital. Stewardship is not solely an investment consideration; it is a philosophy embedded across every aspect of the business, from senior management decisions to portfolio construction and management. Stewardship embodies the responsible planning and management of all our resources. An organisation-wide stewardship mindset is central to how Latitude aims to deliver superior outcomes for its clients.
All investment activities and research are conducted in-house, with ESG analysis fully integrated into the fundamental research process. Latitude does not rely on narrow ESG scoring or apply ESG considerations as a separate overlay. Instead, ESG factors directly inform earnings assumptions, discount rates, asset values, underlying cashflows and long-term return on capital, providing deeper insight into intangible drivers of performance such as operational excellence and risk management.
Latitude manages assets for a range of clients; given our long-term investment horizon, stewardship is a natural and integral part of the investment process. The aim is to ensure investee companies are alert to all material risk factors, including social and environmental risks, and that robust engagement on shareholder interests adds tangible value across the investment chain.
Central to the discharge of stewardship responsibilities is maintaining ongoing dialogue with company management, supported by proprietary and third-party research and written communications. Engagement spans a broad range of topics including strategy, governance, environmental and social issues, performance, risk and remuneration. This process serves both to validate the investment thesis and to assess whether company strategy is being executed effectively, with appropriate oversight from the board and its sub-committees.
Latitude maintains a robust conflicts of interest policy designed to ensure all decisions are taken solely in our clients' interests. All potential and actual conflicts are identified, evaluated, managed, monitored and recorded. Material conflicts are disclosed to clients and prospective clients. Latitude’s ownership structure is that of a private Limited Liability Partnership managing assets for a pooled investment fund and segregated managed accounts. All staff are responsible for familiarising
themselves with the policy and reporting conflicts to the Compliance Officer. A summary of the policy is available on request.
Comprehensive and continuous monitoring of investee companies is central to Latitude's investment process. This includes meetings with senior management, analysis of annual reports and financial statements, independent and broker research, and attendance at company meetings. This allows for greater insight into intangible factors such as operational excellence and risk that can improve investment outcomes. Monitoring, engagement and an active use of voting rights helps deliver better performance for our clients and encourages sustainable business behaviour and lower risk.
Latitude aims to identify issues early and ahead of portfolio inclusion where possible. Where concerns arise, including on governance, social, environmental or remuneration matters, the investment team will seek to raise these directly with the relevant board members where possible. Where continued engagement is not in clients' best interests, Latitude may instead reduce or exit a position.
Latitude maintains records of all votes cast, which are publicly available, and may attend General Meetings where holdings are significant and attendance is practicable. Latitude does not seek insider information and expects investee companies to avoid conveying price-sensitive information without prior agreement.
Latitude seeks to build effective relationships with boards and management at the companies in which it invests. Where concerns arise, typically around failure to uphold shareholder value or to deliver goods and services responsibly, Latitude will engage directly with management and, if necessary, escalate through formal written correspondence to the relevant board or committee. Recent engagement topics have included executive pay, capital allocation, share issuance, disclosure policy, buybacks and environmental practices.
Collective intervention with other institutions will be considered where appropriate and in clients' best interests. Given Latitude's boutique scale, each situation is assessed individually and escalation approaches will vary accordingly.
Latitude supports collective investor action where appropriate, assessed on a case-by-case basis and subject to regulatory constraints. Concerted voting with other shareholders requires approval from Latitude's Chief Operating Officer.
While Latitude typically acts independently, it recognises that collaboration can amplify its influence. Latitude participates actively in bodies including the UK Investment Association, the Independent Investment Management Initiative (IIMI) and the Principles for Responsible Investment (PRI). In all collaborative activity, Latitude remains alert to conflicts of interest, insider information risks and concert party rules, engaging its legal and compliance team when appropriate.
Latitude votes all shares where possible and publicly discloses all voting activity. It generally supports routine corporate proposals, including uncontested director elections. For other matters, voting decisions are made in clients' best interests, taking into account management's recommendation,Latitude's assessment of management, and whether proposals fairly compensate management for past and future performance.
Latitude does not participate in securities lending programmes, as these can impede the exercise of voting rights at shareholder meetings.
Latitude reports on stewardship and voting activities through regular client meetings and quarterly and annual reports. Reports include details of selected company engagements, voting activity and market-wide policy outreach. Summary voting information may be provided to underlying investors in pooled funds, and additional engagement details are available on request.
Latitude's corporate governance processes are included within the scope of annual internal controls. Clients wishing to discuss these further should contact Chief Compliance Officer, James Foster.
This document outlines the principal controls Latitude Investment Management LLP ("Latitude") has in place to manage conflicts of interest. It is not intended to be exhaustive. Latitude is committed to conducting its business to the highest standards and in an ethical manner, at all times.
Purpose
The purpose of this policy is to identify circumstances that constitute or may give rise to a conflict of interest, and to set out the procedures and measures adopted to manage such conflicts - particularly where a material risk of damage to client interests may exist.
Identifying Conflicts
Latitude takes all appropriate steps to identify conflicts of interest that arise, or may arise, between Latitude and its clients, or between one client and another, in the course of carrying out regulated activities.
Managing Conflicts
Latitude employs a range of controls to manage conflicts of interest:
Governance - Robust governance arrangements are in place to govern employee conduct, including personal account dealing rules to control and mitigate conflicts.
Reporting lines - Clear and defined reporting structures are maintained across the business.
Segregation of functions - Duties are segregated where appropriate to minimise the potential for conflicts.
Personal conflict disclosure - All employees and owners are required to disclose conflicts of interest as they arise.
Client disclosure - Where existing controls are not sufficient to prevent a material risk of damage to a client's interests, Latitude will disclose the conflict to the client in a durable medium, enabling them to make an informed decision.
Restricted and insider lists - Latitude maintains a global Restricted List and Insider List to facilitate conflict monitoring.
Inducements - Latitude has a gifts and entertainment policy in place.
Recruitment - The fitness and propriety of all prospective employees is assessed prior to appointment.
Training - Conflicts of interest training forms part of the annual compliance training programme.
Management information - Management information regarding the identification of conflicts is reviewed.
Remuneration - Latitude's remuneration policy is designed to avoid incentivising behaviour that could be detrimental to client interests.
Ongoing monitoring - Potential conflicts of interest are kept under continuous review. Where a conflict is identified, a documented assessment is made as to whether to proceed and, if so, what additional measures are required to mitigate the risk of material damage to the interests of one or more clients.