The Fund’s A3 share class returned 4.1%* in euro terms in May. This Fund’s target benchmark, the MSCI Europe Small Cap Index, returned 5.8%.
Global markets performed strongly in May as investors continued to anticipate interest rate cuts from central banks. Despite economic data showing that eurozone CPI increased to 2.6% in May from 2.4% in April, investors in Europe continue to expect a 25 basis point rate cut when the ECB meets in June. Sector returns for the MSCI Europe Index were largely positive in May with the exception of energy (-1.8%). The financials (+6.3%), industrials (+5.3%), real estate (+5.1%) sectors led the way with strong returns for the period.
Buzzi (+16%), the producer of cement, ready-mix concrete, and construction aggregates was the Fund’s top performer following the release of Q1 results which were in-line with expectations. Investors also reacted positively to the news of Buzzi announcing the start of a share buyback programme.
UK-listed reseller of computer software Bytes Technology (+15%) performed well after posting full-year results in-line with expectations. Having received the news that there would be no further misconduct following an investigation into undisclosed dealing by the company’s former chief executive, Bytes announced revenue rose 12.3% year-on-year to £207 million, while adjusted operating profit climbed 12.2% year-on-year to £63.3 million. Bytes also proposed a final dividend of six pence per share, an increase of 17.6 per cent since 2023.
Belgian chemical specialist Solvay (+11%) saw its shares rise following the release of robust Q1 results. The company reported a smaller-than-expected decline in first-quarter profit, citing higher volumes and cost-saving efforts. Net sales slipped 11% to €1.20 billion, though the company said that it saw a positive volume impact for the first time in seven quarters and that prices decreased on lower energy and raw material costs.
Playtech (-9.7%), the world's largest supplier of online gaming and sports betting software, announced a solid start to the year, with strong performance of its business-to-business division driven by revenue growth in regulated markets and tighter cost control. The company did however state that these strong volumes were partly offset by customer-friendly sporting results in Italy.
Bekaert (-4.5%), the Belgian steel-wire company, was also among the detractors after announcing weaker-than -expected Q1 sales – a14% decrease in consolidated sales compared to the same quarter the previous year. Looking forward, the company remains optimistic about achieving modest sales growth throughout the year, with a full-year sales target of €4.3 billion and EBIT of at least €400 million.
Positive contributors to performance included:
Buzzi (+16%), Bytes Technology Group (+15%), Solvay (+11%)
Negative contributors to performance included:
Playtech (-9.7%), Atoss Software (-6.4%), Bekaert (-4.4%)
Discrete years' performance (%) to previous quarter-end**:
|
|
Mar-24 |
Mar-23 |
Mar-22 |
Mar-21 |
Mar-20 |
|
Liontrust GF European Smaller Companies A3 Acc EUR |
16.4% |
-2.6% |
7.9% |
70.2% |
-21.6% |
|
MSCI Europe Small Cap |
10.2% |
-9.1% |
1.9% |
61.2% |
-18.1% |
|
|
Mar-19 |
Mar-18 |
|
Liontrust GF European Smaller Companies A3 Acc EUR |
-2.3% |
1.2% |
|
MSCI Europe Small Cap |
-1.3% |
8.3% |
KEY RISKS
Past performance is not a guide to future performance. The value of an investment and the income generated from it can fall as well as rise and is not guaranteed. You may get back less than you originally invested.
The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.
Overseas investments may carry a higher currency risk. They are valued by reference to their local currency which may move up or down when compared to the currency of the Fund. This Fund may have a concentrated portfolio, i.e. hold a limited number of investments. If one of these investments falls in value this can have a greater impact on the Fund's value than if it held a larger number of investments. As the Fund is primarily exposed to smaller companies there may be liquidity constraints from time to time, i.e. in certain circumstances, the fund may not be able to sell a position for full value or at all in the short term. This may affect performance and could cause the fund to defer or suspend redemptions of its shares. In addition the spread between the price you buy and sell units will reflect the less liquid nature of the underlying holdings. Outside of normal conditions, the Fund may hold higher levels of cash which may be deposited with several credit counterparties (e.g. international banks). A credit risk arises should one or more of these counterparties be unable to return the deposited cash. Counterparty Risk: any derivative contract, including FX hedging, may be at risk if the counterparty fails.
DISCLAIMER
This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID), which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.co.uk or direct from Liontrust. Always research your own investments. If you are not a professional investor please consult a regulated financial adviser regarding the suitability of such an investment for you and your personal circumstances.
This should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Examples of stocks are provided for general information only to demonstrate our investment philosophy. The investment being promoted is for units in a fund, not directly in the underlying assets. It contains information and analysis that is believed to be accurate at the time of publication, but is subject to change without notice. Whilst care has been taken in compiling the content of this document, no representation or warranty, express or implied, is made by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified. It should not be copied, forwarded, reproduced, divulged or otherwise distributed in any form whether by way of fax, email, oral or otherwise, in whole or in part without the express and prior written consent of Liontrust.
