The Fund returned -0.8% in sterling terms in July. The MSCI Europe ex-UK Index comparator benchmark returned -0.1% and the average return made by funds in the IA Europe ex-UK sector, also a comparator benchmark, was 0.1%.
The MSCI Europe ex-UK index was marginally negative in July amid losses for the information technology (-7.3%) and consumer discretionary (-5.3%) sectors, while there were gains for utilities (+5.6%), real estate (+3.8%) and financials (+2.5%) following some strong quarterly earnings releases. The IT sector was negatively affected by a rotation out of growth stocks and worries that the US might seek to impose further restrictions on what semiconductor equipment can be sold to China. Meanwhile, weak consumer demand weighed on the luxury goods and automotive segments within the consumer discretionary sector.
The Fund’s top performer in July was Italian bank UniCredit (+9.0%) which raised its full-year target for net revenue after higher income from fees and lending helped the bank’s Q2 profit beat consensus estimates. Net income rose 16% to €2.68 billion, leading to it increasing its guidance for revenue after loan-loss provisions to above €23 billion.
Compagnie de Saint-Gobain (+8.7%), the France-based group specialising in the design, manufacture and distribution of materials for the construction, mobility, healthcare, and industrial sectors, saw its shares rise after reporting operating income for the first half-year that beat the average analyst estimates.
ASML (-12%) fell sharply as the prospect of more severe US restrictions on its business in China outweighed growth in the Dutch firm’s order intake last quarter. Shares in the developer and manufacturer of photolithography machines fell even as the company reported that bookings rose 54% in the second quarter from the previous three months to €5.57 billion, beating average estimates.
Despite reporting first half sales that were in-line with consensus estimates, shares in French biopharmaceutical company Ipsen (-9.8%) fell after analysts questioned the quality of Q2 sales performance for the drugmaker’s top-selling cancer medicine Somatuline.
A.P Moller Maersk (-13%) shares suffered after it warned extreme weather conditions and a storm surge lashing the South African coast are expected to cause shipping delays.
Positive contributors to performance included:
UniCredit (+9.0%), Compagnie de Saint Gobain (+8.7%) and OPAP (+9.3%)
Negative contributors to performance included:
ASML (-12%), AP Moller-Maersk (-13%) and Ipsen (-9.8%)
Discrete years' performance (%) to previous quarter-end**:
|
|
Jun-24 |
Jun-23 |
Jun-22 |
Jun-21 |
Jun-20 |
|
Liontrust European Dynamic I Inc |
13.9% |
24.8% |
-5.9% |
43.8% |
2.2% |
|
MSCI Europe ex UK |
12.1% |
19.0% |
-10.6% |
21.8% |
0.0% |
|
IA Europe Excluding UK |
11.7% |
18.4% |
-12.6% |
23.7% |
0.9% |
|
Quartile |
1 |
1 |
1 |
1 |
2 |
*Source: Financial Express, as at 31.07.24, total return (net of fees and income reinvested), bid-to-bid, institutional class. Non fund-related return data sourced from Bloomberg.
**Source: Financial Express, as at 30.06.24, total return (net of fees and income reinvested), bid-to-bid, primary class.
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. The Fund may encounter liquidity constraints from time to time. The spread between the price you buy and sell shares 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.
