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Liontrust Global Dividend Fund

February 2022 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 -2.3% in February. The MSCI World Index comparator benchmark returned -2.5% and the average return in the IA Global Equity Income sector, also a comparator benchmark, was -1.7%.

Rio Tinto (+11.7%) cemented itself as one of the big winners in the global economic rebound from the pandemic by delivering its highest-ever profits and announcing a bumper dividend over the month. Rio’s underlying earnings surged 72% from a year earlier to $21.4 billion, with the company also announcing a record full-year dividend of $16.8bn, boosted by higher iron ore prices and strong demand from top consumer China. Rio Tinto is often identified as an innovator, but the company has the lowest cost iron producer and benefits from significant demand surges in iron ore because of the long-cycle development constraints for competitors to build extra capacity to meet demand.

Also among the notable contributors was Safran (+7.8%). This French multinational designs and manufactures high-end jet engines for narrow body aeroplanes. After launching the new LEAP engines for the A320 family and Boeing 737 Max at the end of last decade, demand for the new engines is strong due to fuel efficiency gains, longer range and quieter than all other products on the market. We believe the long-term value for Safran is not necessarily the profit from the initial sale of the engine, but the long-term service contracts sold alongside the engines. So, we expect an accelerate in revenues, profitability, and dividends from 2023 onwards as the installed base accelerates and starts to mature.

Stryker (+6.2%) provides surgical products including such instruments as drills, saws, and even cement mixers. The company operates through three primary segments – MedSurg, Orthopaedic, and Neurotechnology and spends a large proportion of revenues on R&D to drive product innovation and enters adjacent markets through acquisition. We believe that surgical medical equipment has particularly high switching costs after surgeons tend to train on a particular brand, making the company a strong fit among the Global Leaders that we look to invest in.

On the other side of the ledger, the detractors for the month were led by Meta Platforms (-32.6%) (formerly Facebook) after the company’s earnings forecast for Q1 2022 missed expectations. We are long-term investors and see price volatility in the short term as excellent buying opportunities and used this price weakness to build our position into a full weight in the Fund. The company has the leading social media position across all verticals, enabling small businesses to advertise to consumers as commerce moves online. And just like in the past, we believe Mark Zuckerberg will again defeat Tik Tok in the race to build out short-form video capabilities and market share.

Intuit (-14.6%), the global technology platform that makes TurboTax, QuickBooks, Mint, Credit Karma and Mailchimp, was another detractor over the period. The company reiterated full fiscal year 2022 revenue guidance, stating that revenue for its second fiscal quarter is expected to be lower than previous guidance due to a slower forming tax season. We continue to believe that Intuit possesses strong barriers given the fact that it is the de facto standard in the US for consumer tax preparation and small business management software, driving high barriers to entry for competitors through leading brand recognition and financial strength.

Tencent (-11.0%) came under pressure over the month following continued regulatory scrutiny from the Chinese government – with a focus on the metaverse, an emerging space for the company. Our investment thesis for Tencent stems from the company successfully managing the transition from PC gaming to Mobile gaming by developing durable franchises with improved monetisation characteristics. To further entrench the products, the company has built out an ecosystem to include communication (WeChat), financial services (WePay), cloud capabilities and a broad range of software services that compete with products like Adobe, Salesforce and Zoom.

In addition, the company has completed a number of very successful early-stage investments in the next generation of disruptors like Pinduoduo and Sea ltd that are well positioned to contribute complementary shareholder value creation opportunities on top of the core Tencent platform.

Positive contributors included:

Rio Tinto (+11.7%), American Express (+8.2%), Safran (+7.8%), Stryker (+6.2%), Spark New Zealand (+7.2%)

Negative contributors included:

Meta Platforms (-32.6%), Norilsk Nickel (-51.1%), Intuit (-14.6%), Tencent (-11.0%), Morgan Stanley (-11.5%)

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







Liontrust Global Dividend C Acc GBP






MSCI World






IA Global Equity Income












*Source: FE Analytics as at 28.02.22

**Source: FE Analytics as at 31.12.21. Quartile generated on 07.01.22

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.
Investment in funds managed by the Global Equity (GE) team may involve investment in smaller companies - these stocks may be less liquid and the price swings greater than those in, for example, larger companies. Investment in funds managed by the GE team may involve foreign currencies and may be subject to fluctuations in value due to movements in exchange rates. The team may invest in emerging markets/soft currencies or in financial derivative instruments, both of which may have the effect of increasing volatility. Some of the funds managed by the GE team hold a concentrated portfolio of stocks, meaning that if the price of one of these stocks should move significantly, this may have a notable effect on the value of that portfolio.  


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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