- In March, European financial markets were driven by a number of major global and regional events.
- Top performers included Kongsberg Gruppen, lifted by stronger sentiment toward defence stocks, while financials maintained strong year-to-date gains.
- Among the detractors were Adyen, InterContinental Hotels and Pandora.
The Fund’s A5 share class returned -5.0%* in euro terms in March. This Fund’s target benchmark, the MSCI Europe Index, returned -4.0%.
Throughout March, European financial markets were shaped by a number of major global and regional developments. Chief among them was Germany’s announcement of a substantial increase in public spending on defence and infrastructure. This marked a significant policy shift aimed at bolstering both national and regional resilience in the face of Russia’s threat, with broad implications for sectors such as construction, engineering, and defence.
Donald Trump’s threat to impose sweeping import tariffs also weighed heavily on market sentiment. The escalation of trade war rhetoric sparked volatility across markets, fuelling fears of a global economic slowdown.
On a sectoral basis, performance for the MSCI Europe Index was mixed, with utilities (+5.5%) leading the pack, followed by energy (+3.6%) and financials (+1.1%). Conversely, consumer discretionary (-10.6%) was the worst-performing sector, with information technology (-7.5%) and real estate (-6.4%) also among the larger fallers.
The Fund’s top performer was Kongsberg Gruppen (+16%), the Norwegian defence company, which saw its share price rise as improving sentiment towards defence stocks provided a boost.
Shares in British retailer Next Plc (+9.1%) jumped following the release of strong full-year results and an upward revision to its sales and profit forecasts. Full-price sales in the first eight weeks of the year exceeded expectations, prompting the company to raise its guidance. It now anticipates first-half full-price sales to grow 6.5% year-on-year, up from the previously forecasted 3.5%. Full-year pre-tax profits are projected to reach £1.07 billion, marking a 5.4% increase compared to last year – £20 million higher than earlier estimates.
Elsewhere, the Fund’s financial holdings continued to be a key contributor to performance, as the sector once again performed strongly over the month. The Fund’s bank positions – particularly CaixaBank (+8.6%), UniCredit (+5.1%), and Deutsche Bank (+7.0%) – were again among the top ten contributors
Shares of Dutch payments firm Adyen (-19%) fell due to profit-taking after the company’s strong full-year earnings report last month. Adyen had posted core earnings that exceeded market expectations and projected stronger net revenue growth along with continued margin expansion for 2025.
Shares in InterContinental Hotels Group (-18%) fell throughout the month as the company received a reduction in price target by a covering analyst.
Positive contributors to performance included:
Kongsberg Gruppen (+14%), Next Plc (+9.1%) and Caixabank (+7.3%)
Negative contributors to performance included:
Adyen (-19%), InterContinental Hotels Group (-18%), and Pandora (-15%)
Key Features of the Liontrust GF Pan-European Dynamic Fund
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Investment objective & policy1
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The investment objective of the Fund is to achieve capital growth over the long-term by predominantly investing in a portfolio of European equities. The Investment Adviser will seek to achieve theinvestment objective of the Fund through investment of at least 80% of the Fund’s Net Asset Value in companies which are incorporated, domiciled, listed or conduct significant business in Europe(the EEA, Switzerland and the UK). The Fund will not be restricted in its choice of investment by either size or sector. The Fund is considered to be actively managed in reference to MSCI Europe Index (the “Benchmark”) by virtue of the fact that it uses the Benchmark for performance comparison purposes and forcertain Performance Fee Share Classes, to calculate performance fees. The Benchmark is not used to define the portfolio composition of the Fund and the Fund may be wholly invested in securitieswhich are not constituents of the Benchmarks. The Fund is not expected to have any exposure to financial derivative instruments in normal circumstances, but the Investment Adviser may on occasion, where it deems it appropriate in seekingto achieve the investment objective of the Fund, use financial derivative instruments listed on a recognised exchange or traded on an organised market or financial derivative instruments tradedover-the-counter for investment purposes, efficient portfolio management, and hedging purposes. In addition, the Fund may invest in exchange traded funds and other eligible open-ended collective investment schemes. No more than 10% of the net assets of the Fund will be invested inaggregate in open-ended collective investment schemes. The Fund may invest in closed-ended funds that qualify as transferable securities. Investment in closed-ended funds is not expected tocomprise a significant portion of the Fund’s net assets and will not typically exceed 10% of net assets. For liquidity or cash management purposes, a proportion of the Fund may also be invested in debt securities including government and corporate bonds, Money Market Instruments, cash and nearcash and deposits. Any investment in bonds will be in investment grade corporate and government fixed or floating rate instruments. |
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Recommended investment horizon |
5 years or more |
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Risk profile (SRI)2 |
4 |
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Active/passive investment style |
Active |
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Benchmark |
The Fund is considered to be actively managed in reference to the MSCI Europe Index (the “Benchmark”) by virtue of the fact that it uses the Benchmark for performance comparison purposes and to calculate performance fees. The Benchmark is not used to define the portfolio composition of the Fund and the Fund may be wholly invested in securities which are not constituents of the Benchmark. |
Notes: 1. As specified in the PRIIP KID of the fund; 2. SRI = Summary Risk Indicator. Please refer to the PRIIP KID for further detail on how this is calculated.
KEY RISKS
Past performance does not predict future returns. You may get back less than you originally invested.
We recommend this fund is held long term (minimum period of 5 years). We recommend that you hold this fund as part of a diversified portfolio of investments.
The Funds managed by the Cashflow Solution team:
- May hold overseas investments that 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 a Fund.
- May have a concentrated portfolio, i.e. hold a limited number of investments (35 or fewer) or have significant sector or factor exposures. If one of these investments or sectors / factors fall in value this can have a greater impact on the Fund's value than if it held a larger number of investments across a more diversified portfolio.
- May, under certain circumstances, invest in derivatives, but it is not intended that their use will materially affect volatility. Derivatives are used to protect against currencies, credit and interest rate moves or for investment purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The use of derivatives may create leverage or gearing resulting in potentially greater volatility or fluctuations in the net asset value of the Fund. A relatively small movement in the value of a derivative's underlying investment may have a larger impact, positive or negative, on the value of a fund than if the underlying investment was held instead. The use of derivative contracts may help us to control Fund volatility in both up and down markets by hedging against the general market.
- The use of derivative instruments that may result in higher cash levels. Cash may be deposited with several credit counterparties (e.g. international banks) or in short-dated bonds. A credit risk arises should one or more of these counterparties be unable to return the deposited cash.
- 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, 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.
- May target an absolute return. There is no guarantee that an absolute return will be generated over the time period stated in the fund objective or any other time period.
The risks detailed above are reflective of the full range of Funds managed by the Cashflow Solution team and not all of the risks listed are applicable to each individual Fund. For the risks associated with an individual Fund, please refer to its Key Investor Information Document (KIID)/PRIIP KID.
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.
DISCLAIMER
This material is issued by Liontrust Investment Partners LLP (2 Savoy Court, London WC2R 0EZ), authorised and regulated in the UK by the Financial Conduct Authority (FRN 518552) to undertake regulated investment business.
It 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.
This information and analysis 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, no representation or warranty is given, whether express or implied, by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID) and/or PRIIP/KID, which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.com or direct from Liontrust. 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.
