Liontrust Global Smaller Companies Fund

• April was an extremely volatile month for global equity, bond and currency markets due to US tariff announcements
• The portfolio is a collection of high quality companies with strong balance sheets run by long-term oriented management teams, and outperformed on a relative basis
• Two portfolio holdings received takeover bids during the month

The Liontrust Global Smaller Companies Fund returned -0.7% in April, compared with the -2.4% return of the MSCI ACWI Small Cap Index and an average return of -1.9% in the IA Global sector, its comparator benchmarks.

Global equity markets were volatile in April as US tariff announcements earlier in the month led to heightened uncertainty and a sharp fall in risk appetite. Confidence in the US economy has fallen quickly, with consumer sentiment and corporate spending falling, and the risk of a US recession increasing. US long bond yields increased, perhaps prompting a softening of the trade policy position since early April, and the US dollar – typically a safe haven asset – weakened. Despite still high levels of uncertainty following a 90-day ‘pause’ ahead of any further broad tariff actions, trade negotiations throughout the remainder of April led to a broad rally in equities.

Our approach focuses on businesses with wide competitive moats, strong balance sheets, aligned management, high margins, pricing power, and healthy cash generation. Consequently, our portfolio outperformed the market during the month, as more operationally and financially leveraged companies fared worse in the risk-off environment. Additionally, two of our portfolio companies received takeover bids.

Top contributors:

• Andlauer Healthcare (+38%), which operates the largest supply chain logistics network in Canada for the Life Sciences and Healthcare sectors, was the subject of a takeover bid from US logistics company UPS. The shares have rallied close to the price offered.
• Cellavision (+22%) reported a very strong set of quarterly results which beat all expectations.
• GlobalData (+20%) was the subject of a preliminary takeover proposal from two private equity firms (KKR and ICG), who now have until 28 May 2025 to make a formal offer.

Largest detractors:

• Aris Water (-25% total return in sterling terms). The company has a network of approximately 790 miles of pipeline, providing water services to companies in Texas, enabling oil well operators to save costs compared to trucking options for water handling and recycling. Given the increased likelihood of recession in 2025 due to US trade policy impacts, the oil price (WTI, in USD) has fallen below $60 and with it expectations for drilling activity, which will impact demand for water in the Permian Basin.
• Atlas Energy Solutions (-27%). Atlas is the largest (and lowest cost) provider of oil and gas proppant used to seal fractures in drilled wells to ensure optimal flow, is also linked to drilling activity in the Permian, and fell due to a lower oil price and drilling activity expectations.
• Ryan Specialty (-14%). The second largest Excess & Supply insurance broker in the USA fell in April as Aon reported worse-than-expected quarterly organic growth numbers, and most of the sector fell on the news as the read-across is potential slowing growth more broadly in the industry. However, Ryan Specialty has since reported quarterly results in early May which beat organic growth expectations.

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

* Source: FE Analytics, as at 31.03.25, total return, net of fees and income reinvested. The current fund managers’ inception date is 14.01.25.

KEY RISKS

Past performance does not predict future returns. You may get back less than you originally invested.

We recommend this fund is held long term (minimum period of 5 years). We recommend that you hold this fund as part of a diversified portfolio of investments.

The Funds managed by the Economic Advantage team:

• May invest in smaller companies and may invest a small proportion (less than 10%) in unlisted securities. There may be liquidity constraints in these securities from time to time, i.e. in certain circumstances, a 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 a fund to defer or suspend redemptions of its shares. May invest in companies listed on the Alternative Investment Market (AIM) which is primarily for emerging or smaller companies. The rules are less demanding than those of the official List of the London Stock Exchange and therefore companies listed on AIM may carry a greater risk than a company with a full listing.
• May encounter liquidity constraints from time to time. The spread between the price you buy and sell shares will reflect the less liquid nature of the underlying holdings.
• May invest in companies predominantly in a single country which maybe subject to greater political, social and economic risks which could result in greater volatility than investments in more broadly diversified funds.
• Outside of normal conditions, 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.

The risks detailed above are reflective of the full range of Funds managed by the Economic Advantage team and not all of the risks listed are applicable to each individual Fund. For the risks associated with an individual Fund, please refer to its Key Investor Information Document (KIID)/PRIIP KID.

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.

DISCLAIMER

This material is issued by Liontrust Investment Partners LLP (2 Savoy Court, London WC2R 0EZ), authorised and regulated in the UK by the Financial Conduct Authority (FRN 518552) to undertake regulated investment business.

It 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.

This information and analysis 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, no representation or warranty is given, whether express or implied, by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.

This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID) and/or PRIIP/KID, which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.com or direct from Liontrust. 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.