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Liontrust Global Dividend Fund

July 2021 review
Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.

The Liontrust Global Dividend Fund returned -0.6% in July. The MSCI World Index comparator benchmark returned 1.1% and the average return in the IA Global Equity Income sector, also a comparator benchmark, was 0.5%.

Google’s parent Alphabet (+9.6%) flexed its digital dominance by posting its highest ever sales and profit quarter behind strong demand for online advertising from businesses vying for customers across reopened economies. The robust results showcased how Google has emerged stronger from a Covid-19 pandemic that accelerated e-commerce purchases, online food orders and streaming video consumption. The burst in digital activity led companies to pour marketing dollars into ads across Google search, Maps and YouTube, underscoring the pre-eminence of its products.

Costco (+8.1%) is another example of a Covid winner who is winning share of cost-conscious consumers. It reported an increase in sales of 17% yoy for the month of June. As a reminder, Costco operates an international chain of membership warehouses, that carry quality, brand-name merchandise at substantially lower prices than competitors.


As a consumer you can have confidence that, at Costco, you get the best price. By paying a $60 annual fee, Gold Star members gives you access to Costco warehouses where you enjoy unmatched value for money. It’s a business model that pools buyers together alongside an efficient supply chain to drive prices lower and keep them there, clearly a part of the customer proposition consumers are excited about.


A company we have held in the Fund for over three years is Constellation Software (+4.9%). The company is a Canadian software conglomerate that acquires and holds vertical market software (VMS) companies. Rarely selling, the company is a perpetual owner of over 500+ VMS companies ranging from library software to marina management.

Mark Leonard started constellation with $25m in 1995 raised from investors and is recognised as one of the best capital allocators and compounders of capital over the last two decades as Constellation’s market cap hit $31bn earlier this year. In fact, since it went public in 2006, it has reliably compounded returns at 30%+ a year and we don’t expect the company to slow down.

The Chinese escalation in regulatory pressure on Chinese educational sector and, more broadly on China’s technology sector, hampered the stock prices of Tencent (-18.6%) and Alibaba (-14.7%). After years of light regulation and a laissez-faire style checks and balances, the Chinese government is developing a framework for the next stage of growth across key areas of the economy. Broadly, we see this as Chinese regulators beginning to catch-up with Western policies around data privacy, competition law and possibly financial standards, though there is a little clarity at this stage. 

So, while holding these companies in the Fund has been a drag on performance, unlike the educational sector – the companies we invest in provide significant benefits to consumers and the government so we see this development as a temporary headwind (as seen at times during the past five years) that will reinforce the power and importance of these companies longer term.

Brookfield Infrastructure is one of the world’s largest infrastructure investors, owning and operating assets across the utilities, transport, energy, and data infrastructure sectors. This is one of the few pure play, publicly-traded global infrastructure entities available today.

One example of the assets Brookfield owns is Enwave, which provides large-scale heating and cooling services to a variety of customers through its network of underground pipelines across North America to utilise highly efficient technologies to power its centralised plants. Common across all the companies’ investments, the business is scalable that benefits from predictable, inflation-lined cash flows, and over time, Brookfield has grown it into a large-scale energy utility. 

Positive contributors included:

Alphabet (+9.6%), Costco (+8.1%), Intuit (+7.5%), Adobe (+5.5%) & Constellation Software (+4.9%).

Negative contributors included:

Tencent (-18.6%). Alibaba (-14.7%), Brookfield Infrastructure (-14.7%), Ping An (-11.0%) & Amadeus (-7.5%).

Discrete years' performance (%), to previous quarter-end:







Liontrust Global Dividend






MSCI World






IA Global Equity Income












Source: FE Analytics as at 30.06.21, C Accumulation share class performance. Quartile performance rankings as 30.06.21, generated on 07.07.21.

Understand common financial words and terms See our glossary
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.
Some of the Funds managed by the Economic Advantage team invest primarily in smaller companies and companies traded on the Alternative Investment Market.  These stocks may be less liquid and the price swings greater than those in, for example, larger companies. 


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. Always research your own investments and 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. 
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