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Liontrust GF European Smaller Companies

November 2023 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 Fund’s A3 share class returned 7.0%* in euro terms in November. This Fund’s target benchmark, the MSCI Europe Small Cap Index, returned 9.0%.

Global markets performed strongly in November as investors bet on a ‘Goldilocks’ scenario whereby cumulative policy tightening brings inflation under control without triggering a recession. Although interest rate cuts are now being priced in, the minutes of the European Central Bank’s last meeting suggested it remains vigilant to upside inflation risks. Eurozone inflation for November was also lower than expected, giving support to European stocks.

Sector returns for the MSCI Europe Index were largely positive in November with the exception of energy (-1.3%). The real estate (+14%), information technology (+14%) and industrials (+11%) sectors led the way with double-digit returns for the period.

Danish jewellery manufacturer and retailer Pandora (+15%) had another strong month, building on its impressive performance over the year to date. In its Q3 update, the company noted an acceleration in organic growth to 11%, while upgrading its growth guidance for the full year to +5% to +6%, previously +2% to +5%. Pandora stated that increased investments into the brand, as part of the next phase of its Phoenix strategy, is showing strong signs and driving greater consumer engagement.

Norwegian Air (+25%) was also among the top performers over the month following the release of strong third quarter results. The European carrier reported higher-than-expected profits for the period of NOK 2.17 billion versus NOK 1.03 billion in the same period last year. Looking forward, the company stated that booking momentum for the fourth quarter was encouraging and predicted low single-digit percentage capacity growth.

Swedish cloud-based accounting software company Fortnox (+31%) bounced back strongly in November following a tough October as positive market sentiment drove the performance of a number of our holdings.

French wholesale electrical distributor Rexel (+15%), steel wire transformation and coating technologies company Bekaert (+12%) and UK-based online real estate property portal Rightmove (+16%) were also among the portfolio companies to benefit from the uptick in investor confidence.

London-based direct marketer of promotional merchandise company 4imprint (-14%) was among the few detractors for the Fund over the month. While its trading update raised guidance on pretax profit for the year, its shares fell on comments that it has recently seen some weaker demand patterns indicative of a more cautious economic environment.

Positive contributors to performance included:

Pandora (+16%), Rexel (+15%), Bekaert (+12%), Fortnox (+31%), Serco Group (+11%)

Negative contributors to performance included:

4imprint (-14%), Ringkøbing Landbobank (-1.0%)

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







Liontrust GF European Smaller Companies

A3 Acc EUR






MSCI Europe Small Cap









Liontrust GF European Smaller Companies

A3 Acc EUR


MSCI Europe Small Cap







*Source: Financial Express, as at 30.11.23, total return (net of fees and income reinvested).

**Source: Financial Express, as at 30.09.23, total return (net of fees and income reinvested). Discrete data is not available for ten full 12-month periods due to the launch date of the portfolio (01.02.17). Investment decisions should not be based on short-term performance.

Key Features of the Liontrust GF European Smaller Companies Fund 

The investment objective of the Fund is to achieve long term capital growth by investing primarily in European smaller companies. The Fund may invest in all economic sectors in all parts of the world, although it is intended it will invest primarily in equities and equity related derivatives (i.e. total return swaps, futures and embedded derivatives) in European companies (including the UK and Switzerland). The majority of the assets of the Fund (more than 85%) are expected to be invested in smaller companies (with a market capitalisation of less than 5 billion euros at the time of the initial investment). In normal conditions, the Fund will aim to hold a diversified portfolio, although at times the Investment Adviser may decide to hold a more concentrated portfolio, and it is possible that a substantial portion of the Fund could be invested in cash or cash equivalents. The Fund may use FX forwards to hedge the Fund’s currency exposures. The Fund has both Hedged and Unhedged share classes available. The Hedged share classes use forward foreign exchange contracts to protect returns in the base currency of the Fund.
5 years or more.
5 (Please refer to the Fund KIID for further detail on how this is calculated)

The Fund is considered to be actively managed in reference to MSCI Europe Small -Cap Index net total return (the “Benchmark”) by virtue of the fact that it seeks to outperform the Benchmark. However 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.
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.

Overseas investments 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 the Fund. This Fund may have a concentrated portfolio, i.e. hold a limited number of investments. If one of these investments falls in value this can have a greater impact on the Fund's value than if it held a larger number of investments. As the Fund is primarily exposed to smaller companies there may be liquidity constraints from time to time, i.e. in certain circumstances, the fund may not be able to sell a position for full value or at all in the short term. This may affect performance and could cause the fund to defer or suspend redemptions of its shares. In addition the spread between the price you buy and sell units will reflect the less liquid nature of the underlying holdings. Outside of normal conditions, the Fund 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. Counterparty Risk: any derivative contract, including FX hedging, may be at risk if the counterparty fails.


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.

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