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Liontrust Global Dividend Fund

May 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 -2.2% in May. The MSCI World Index comparator benchmark returned -0.3% and the average return in the IA Global Equity Income sector, also a comparator benchmark, was -0.2%*.

Dutch multinational banking and financial services company ING (+19.7%) was among the notable contributors over the month. The company focused on operating system innovation over a decade ago and has now built a leading software infrastructure offering for the Dutch bank. Enabling the company to expand digital financial services across its banking footprint quickly and effectively to meet customer expectations. Importantly, the company has moved mobile only customers from 17% of total customers to 51% in 2021.

By building out an in-house software offering, the Dutch conglomerate has a leadership position in Europe as it can build on-top of current digital infrastructure. In addition, unlike other incumbent European banks, ING focuses on Net Promoter Score (NPS) differentiating its customer proposition in an archaic industry.

LAM Research (+11.3%), the long-standing leader in the etching stage of the semiconductor manufacturing process, was another strong performer over the month, with the company announcing that its Board of Directors had approved a $5 billion share repurchase authorization and a quarterly dividend of $1.50 per share of common stock.

The long-term opportunity for the company is building out its customer support business group. This rapidly growing, high recurring revenue division specialises in digital monitoring of the installed base, reduces downtime of equipment in the field and performs periodic maintenance. Of the total revenue generation, almost 35% of sales is generated by support services that has grown by 50% over the last two years.

With the structural demand from the internet of things (IoT) and Cloud computing, management are struggling to scale to meet demand, however, as Lam’s equipment spreads across the globe it will generate a higher proportion of its earnings from sticky service revenue rather than equipment sales.

Admiral (-7.5%), which positions itself as the low-cost leader in UK motor insurance, was among the detractors for the month. Admiral has a culture that treats customers well and values technology that reinforces scale advantages. The stock price weakness reflects a changing industry environment where industry participants can no longer offer significant discounts to on-board new customers – giving Admiral a competitive edge on an even playing field.

Admiral achieves its cost advantage through a lower fixed cost base and digital distribution channel enabling the company to position its insurance products significantly below competitors; just like GEICO and Progressive in the US, Admiral achieves cost supremacy through scale and a maniacal focus on driving costs lower.

Finally, BP (+12.2%) continued its strong share price performance as crude prices continued to hit new highs with the war in Ukraine and shortages in US gas inventories contributing to surging global demand for natural gas, causing prices to double or even treble in some countries.

An improving supply side dynamic in the oil and gas industry is not the reason we invested in BP, but we expect this to significantly aid BP’s shift to an integrated energy company. BP’s business transformation since Bernard Looney has taken over as CEO in 2020 is breath-taking and sets the company up to successfully achieve its transformation.

Positive contributors included:

ING (+19.7%), BP (+12.2%), LAM Research (+11.3%), Morgan Stanley (+6.5%), Volkswagen (+9.2%)

Negative contributors included:

Admiral (-7.5%), Apple (-5.8%), Roper Technologies (-5.8%), Alibaba (-6.0%), Moody’s (-4.9%)

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







Liontrust Global Dividend C Acc GBP






MSCI World






IA Global Equity Income












* Source: FE Analytics as at 31.05.22.

**Source: FE Analytics as at 31.03.22. Quartile generated on 05.04.22.

Understand common financial words and terms See our glossary

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 the Fund involves foreign currencies and may be subject to fluctuations in value due to movements in exchange rates.


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. 

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