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Liontrust - European Income - Olly Russ

European Enhanced Income Fund

Olly Russ

The Fund

The Fund has been managed by Olly Russ since launch in April 2010, and he was joined by Oisin O’Leary as Assistant Fund Manager in June 2017. The aim of the Fund is to deliver a high level of income and capital growth over the long term (5 years or more) by investing in companies incorporated, domiciled, listed or which conduct significant business in the EEA (European Economic Area) and Switzerland. The Fund seeks to deliver a net target yield of at least 125% of the net yield of the MSCI Europe ex UK Index each year. The managers have the ability to use a covered call strategy to boost income and to implement hedging on hedged share classes.

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The European Income team

The European Income team

Olly Russ (right) joined Liontrust from Argonaut Capital in July 2016, having started his career at investment boutique Orbitex in 1998. Oisin O’Leary (left) joined Liontrust in June 2017, having previously been an investment analyst at Argonaut Capital Partners across the company’s range of funds.

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The European Income Process

The process seeks to find companies whose asset base and business are defended by an economic moat, such as a strong brand, niche products or a dominant market position, and where analysts underestimate future earnings growth or have undervalued the expected earnings growth. The fund managers use dividends as a proxy for earnings growth and expects to see dividends rising over time as companies increase pay outs to shareholders and earnings grow.

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Liontrust European Enhanced Income Fund

For more information on the use of covered calls and foreign exchange hedging in the Liontrust European Enhanced Income Fund.

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The European dividend outlook

Olly Russ

This year will be challenging for income investors, but 2021 could see companies free of restrictions and awash with capital. Olly... Read more

European Enhanced Income Fund

Covered calls & foreign exchange hedging explained

The Fund is one of a number available that employs a derivative strategy to boost its yield, and also offers hedged share classes to mitigate currency risk. Download PDF


Discrete performance

30-06-2019 -
30-06-2018 -
30-06-2017 -
30-06-2016 -
30-06-2015 -
Liontrust European Enhanced Income -3.19% 2.06% 0.71% 17.70% -10.43%
IA Europe Excluding UK 0.89% 3.28% 3.11% 29.15% 4.46%
Liontrust European Enhanced Income
IA Europe Excluding UK
Cumulative performance

To previous working day 6 months 1 year 3 year 5 year 10 year Since launch
Liontrust European Enhanced Income -9.37% -3.14% 1.65% 6.41% 93.69% 78.58%
IA Europe Excluding UK -1.80% -0.54% 8.54% 46.15% 139.96% 110.80%
To previous working day
Liontrust European Enhanced Income
IA Europe Excluding UK

Key Risks

Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. Investment in Funds managed by the European Income team involves foreign currencies and may be subject to fluctuations in value due to movements in exchange rates. The Fund’s expenses are charged to capital. This has the effect of increasing dividends while constraining capital appreciation. Investment in the Liontrust European Enhanced Income Fund writes out of the money call options to generate additional income. These call options will be “covered”. Unitholders should note that potential capital growth of the Fund would be capped if these call options are exercised against the Fund and the Fund’s capital returns could therefore be lower than the market in periods of rapidly rising share prices.


The information and opinions provided 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. Always research your own investments and (if you are not a professional or a financial adviser) consult suitability with a regulated financial adviser before investing.

This share class is hedged so investors do not benefit from or are disadvantaged from any movement in the value of the base currency of the fund against investible currencies. In contrast, if applicable, the index returns are in local currency and the average returns of the sector are in sterling.


Source: Financial Express. Total return, bid-to-bid. The FP Argonaut Enhanced European Income Fund was launched on 30.04.10 and merged with the Liontrust European Enhanced Income Fund on 08.07.16. The performance record of the Fund starts on 30.04.10, with Olly Russ managing the Fund since this date. Citywire information is proprietary and confidential to Citywire Financial Publishers Ltd ('Citywire'), may not be copied and Citywire excludes any liability arising out of its use.


© 2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.  Past performance is no guarantee of future results.

Explore in detail

For more information (including prices) and to explore all of the Fund's share classes in more detail please visit our interactive fund centre.


Key fund information

  • Launch date7/7/2016
  • IA sectorIA Europe Excluding UK
  • Fund size£28,604,794.63
  • Number of holdings53
  • Active Share77.61%

Fund size and number of holdings data is as at previous month end. Performance data is as at previous working day.

Active Share: The percentage of a portfolio invested differently to its benchmark. A 100% active share is a portfolio with no weightings in the benchmark, a 0% active share is a portfolio identical to the benchmark.

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