The Fund’s A3 share class returned -3.6%* in euro terms in June. This Fund’s target benchmark, the MSCI Europe Small Cap Index, returned -3.3%.
The European Central Bank became the second major central bank to cut interest rates in June, lowering its deposit rate from an all-time high of 4% to 3.75%, moving before both the US Federal Reserve and the Bank of England. While the move was widely expected, stickier-than-expected services inflation meant that the ECB was keen to point out that the path to any further rate cuts is heavily data dependent.
Elsewhere, the result of the European parliamentary elections caused French president Macron to announce a surprise election in France, which led the French market to fall sharply at the halfway stage of the month. Sector returns for the MSCI Europe Index were largely negative in June with the exception of information technology (+8.4%) and healthcare (+3.0%). The real estate (-5.0%), industrials (-3.4%), materials (-2.9%) and financials (-2.8%) sectors were the largest fallers for the period.
The Fund’s top performer over the month was Hemnet (+11%), the largest property portal in Sweden. While there was no corporate newsflow during the month, the company continues to implement its share buyback programme.
Shares in Games Workshop (+7.5%), the UK-based tabletop games and miniatures retailer, rose after a trading update lifted profits guidance.. For the year ending 2 June, the company expects core revenue to be no less than £490 million, while it also forecasts a pre-tax profit rise of no less than £200 million versus £171 million the previous year.
Ipsos (-12%), the French market research and consulting firm, was among the detractors as it was caught up in the market-wide sell off in France as the prospect of a far-right government and leftwing opposition rattled European financial markets.
Norwegian Air Shuttle (-11%) fell first on the release of traffic numbers for May, where yield figures fell short of average estimates. The company dropped again later in the month after an analyst lowered their price target, predicting that Q2 results may come in below expectations.
Positive contributors to performance included:
Hemnet (+11%), Games Workshop (+7.5%), Betsson (+3.5%)
Negative contributors to performance included:
Ipsos (-12%), Norwegian Air Shuttle (-11%), Wienerberger (-10%)
Discrete years' performance (%) to previous quarter-end:
|
|
Jun-24 |
Jun-23 |
Jun-22 |
Jun-21 |
Jun-20 |
|
Liontrust GF European Smaller Companies A3 Acc EUR |
14.5% |
9.0% |
-9.9% |
59.6% |
-10.7% |
|
MSCI Europe Small Cap |
12.0% |
6.7% |
-17.7% |
43.1% |
-4.1% |
|
|
Jun-19 |
Jun-18 |
|
Liontrust GF European Smaller Companies A3 Acc EUR |
-2.4% |
2.3% |
|
MSCI Europe Small Cap |
-4.4% |
9.8% |
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.
