About Latitude Investment Management LLP
Latitude
is a boutique investment partnership based in London. We run a multi asset
strategy that invests in a concentrated portfolio of companies designed to
generate superior long-term returns, while diversifying risk. On
the non-equity side, we invest in bonds, currencies and commodities which
generate uncorrelated returns with downside protection. We offer our clients:
1 Simplicity of Process
One
clear, focused investment philosophy
- A
conviction only, buy and hold, concentrated portfolio of best global ideas
- Investing,
not trading, with very low transaction costs
- Allow
compounding to drive returns, +8.7% average annual growth rate since
inception in 2016, including +2.5% annual dividend
2 Culture
Latitude
is a boutique investment partnership, majority owned by staff
- Partners
and staff are invested alongside clients with alignment of interests
- We have
a shared commonality; if our clients do well, we do well
3 Performance
Superior returns over all time periods versus peers, participating in good markets, and protecting the downside in bad markets.
Oct
2016 to Dec 2024 net of fees performance:
- Latitude
75% Equity Risk Strategy: +97.8%
- ARC Steady Growth ACI: +50.1%
Charity funds offered
Available products and minimum investment by fund type.
Charity pooled fund
£500k
Minimum investment
- Charity clients200
- Total assets£80m
- Advisory
- Discretionary
Non-charity pooled fund
- Advisory
- Discretionary
Segregated mandate
£20m
Minimum investment
- Advisory
- Discretionary
Investment approach
Philosophy
Please refer to slides 4-12 in the attached proposal for full information on our investment philosophy.
The objective of the strategy is to deliver real equity like returns over a rolling 3-5 year period with lower than equity risk.
Asset allocation
Please refer to slides 4-12 in the attached proposal for full information on our investment philosophy.
In the Latitude Horizon Fund (our lowest risk portfolio), around 50% of the strategy is invested in a concentrated portfolio of global equities. These equities are selected through rigorous fundamental analysis by our investment team. The initial stage of investment consists of business model categorisation, followed by in-depth analysis of sector and capital cycle positioning.
The remaining portion of the strategy is invested in non-equity instruments to manage risk and lower portfolio volatility. These investments must fulfil three criteria: 1) deliver a real expected return 2) have low or negative equity correlation and 3) have an asymmetric risk profile.
Allocation decisions
All investments in the strategy are direct investments. Instruments which the strategy can invest in include: Equities, Currencies, Commodities and Fixed Income. We never invest in other funds, market time or concentrate exposure.
Risk management
Please refer to slide 20 in the attached proposal for further detail.
Latitude follows a rigorous risk framework at all levels of the business. Within Latitude Investment Management (LIM), James Foster, CRO, updates and oversees the risk framework on a continual basis.
Operational, fund and investment risk are continually monitored through systems and control procedures put in place by Latitude, Waystone (the Manager) and Northern Trust (Fund administrator & Depositary).
Risk monitoring follows a multi-layered approach. Daily risk reporting, weekly portfolio and risk reviews are carried out at the fund and business level by LIM and Waystone. Monthly meetings to evaluate risk and controls in place. Stress test analysis for adverse scenarios and VaR analysis, back tested to ensure extreme moves are within expected levels.
Investment risk is key responsibility of LIM and the investment team. Positions are continuously monitored in real time through Bloomberg. Common factor analysis is closely monitored across themes and asset classes, hedging where appropriate. Equity risk is managed through careful portfolio construction. Pre and post trade compliance of investment restrictions and UCITS rules are coded into the Bloomberg compliance engine and monitored daily.
Example performance
Performance as at 31/12/2024 for the Latitude Horizon Fund (50% equity risk) net of fees is as follows:
1 Year: +7.7%
3 Year: +7.9%
5 Year: +30.3%
We have delivered superior returns over all time periods versus peers, participating in good markets, and protecting the downside in bad markets.
Nov 2012 to Dec 2024 net of fees performance vs the peer group:
Latitude Horizon Strategy: +126.7%
ARC Balanced Asset ACI: +79.1%
Charity team
- Designated charity team
- Yes
- Team size
- 2
- Years of experience
- 30
- Location
- London
- Remote working
- Yes and there is no limit on our systems.
2
We have been looking after charity clients since we founded the business. Charity clients make up a significant portion of our AUM and current mandates range between £1m and £15m.
Ethics & ESG
- Offers ethical investing
- No
Yes. No fundamental analyst would ever outsource their decision making on earnings or cash flow to an external provider or systematic model, yet many approach ESG analysis in this manner. We genuinely integrate the risks and opportunities created from the changing investment landscape into all aspects of our fundamental research.
Fees
Management Fee: 75bps
Fund Expenses: 12bps
Total Fee: 93bps
*Performance fee share class also available with reduced AMC to 35bps
Operations & service
- Administration
- Northern Trust International Fund Administration Services (Ireland) Limited.
- Onboarding
- 48 hours.
- Ongoing advice
- Yes for no additional fee.
Custody
Yes and it is free of charge if the charity invests through our UCITS fund vehicles.