The Fund’s A3 share class returned 2.4%* in euro terms in February. This Fund’s target benchmark, the MSCI Europe Small Cap Index, returned 0.1%.
The European market advanced in February, led by strong performance from consumer discretionary (+7.5%), information technology (+6.2%) and industrials (+6.0%) sectors, following a number of robust company earnings releases over the period. On the other side of the ledger, real estate (-7.0%), utilities (-5.7%) and consumer staples (-3.1%) were among the market’s poor performing sectors. The European Central Bank maintained its stance on interest rates, with President Lagarde downplaying the chances of imminent cuts, reiterating that the bank does not want to run the risk of reversing any cuts they do make.
Norwegian Air Shuttle (+34%) was the top portfolio performer after reporting strong fourth quarter earnings that were ahead of analysts’ estimates, while also announcing that it expects to increase its profits for this year versus 2023. The airline said its capacity – as measured by available seat kilometres – is expected to rise by 12% this year, while it expects 2024 operating profit of between 2.5 billion and 3.2 billion Norwegian crowns, up from 2.2 billion in 2023.
Danish jewellery manufacturer and retailer Pandora (+10%) saw organic growth of 8% in FY23, ahead of prior guidance of 5% - 6%, with investment across its value chain – as part of its Phoenix strategy which was received well by investors.
Sweden-based Fortnox (+25%), which offers internet-based business applications, rose sharply following the release of its Q4 and full-year results. The company reported an increase in operating profit for both the quarter and full year, with 2023 seeing an increase of SEK 208 million. Analysts also noted that Fortnox was able to add 16,000 new customers over the fourth quarter, ahead of consensus estimates of 13,000.
Bytes Technology Group (-15%) fell sharply on the news that its CEO tendered his resignation with immediate effect, after notifying the board that he made trades in company shares that hadn’t been disclosed to the market.
Online gambling company Betsson (-9.5%) slumped after the company’s strong performance towards the end of 2023 was overshadowed by a softer start to the year.
Positive contributors to performance included:
Norwegian Air Shuttle (+34%), Fortnox (+25%), Pandora (+10%)
Negative contributors to performance included:
Bytes Technology Group (-15%), Betsson (-9.5%), Atoss Software (-6.3%)
Discrete years' performance (%) to previous quarter-end:
|
|
Dec-23 |
Dec-22 |
Dec-21 |
Dec-20 |
Dec-19 |
|
Liontrust GF European Smaller Companies A3 Acc EUR |
7.0% |
-17.3% |
33.7% |
7.4% |
35.8% |
|
MSCI Europe Small Cap |
12.7% |
-22.5% |
23.8% |
4.6% |
31.4% |
|
|
Dec-18 |
|
Liontrust GF European Smaller Companies A3 Acc EUR |
-19.9% |
|
MSCI Europe Small Cap |
-15.9% |
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.
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.
DISCLAIMER
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.
