- Financial markets rebounded from April’s tariff-driven volatility, with a notable recovery in both US and European equities.
- Pandora, Banco Santander and Belimo Holdings all delivered double-digit gains, supported by robust quarterly results.
- Gamma Communications, Imperial Brands and Auto Trader were among the detractors for the period.
The Fund’s A5 share class returned 5.6%* in euro terms in May. This Fund’s target benchmark, the MSCI Europe Index, returned 4.7%.
Financial markets rebounded from April’s tariff-driven volatility, with a notable recovery in both US and European equities. President Trump’s decision to delay tariffs on European goods – including those affecting key industries and firms like Apple – helped ease transatlantic trade tensions and lifted investor sentiment across the eurozone.
There were positive sector returns across the board in May with information technology (+8.3%) leading the way, closely followed by industrials (+8.1%), and financials (+6.5%) to round out the top three performers.
Pandora (+22%) was Fund’s top contributor in May, driven by an 11% increase in US sales in Q1 — solidifying the region as the jewellery manufacturers strongest market. North America now accounts for 32% of total revenue. Overall, Pandora reported Q1 revenue of DKK 7.3 billion (approximately $1.1 billion), representing 7% organic growth, while operating profit rose by 9%. While sales trends are positive, the company did acknowledge US trade tariff uncertainty and dollar weakness by trimming its full-year operating margin forecast from 24.5% to 24%.
Banco Santander (+14%) continues to deliver strong performance, supported by favourable macroeconomic conditions and robust quarterly results. In the first quarter of 2025, the bank posted a record attributable profit of €3.4 billion, marking a 19% increase compared to the same period last year. This growth was driven by record net fee income, up 4%, and effective cost management. Additionally, Santander expanded its customer base significantly, adding nine million new clients and bringing its total to 175 million customers worldwide.
Belimo Holding (+14%) continued its rally after releasing a strong Q1 update last month. The HVAC (heating, ventilation & air conditioning) actuator manufacturer reported 21.8% sales growth (local currency) and raised full-year guidance. The company now expects 15–20% sales growth and operating margins above 20% in 2025. Belimo stated that it will implement price increases to fully mitigate any cost impact of new tariffs.
Gamma Communications (-9.1%) has continued to face difficult trading conditions in the UK, reflecting the broader macro-economic challenges highlighted in its March results. Since then, the company reaffirmed that market softness has persisted, putting additional pressure on performance. In response, the company’s management has taken a series of cost management measures.
Imperial Brands (-6.3%) shares slipped after announcing half-year results that met expectations and revealed its CEO will retire later this year, to be succeeded by the company’s CFO. Imperial Brands remains on track to meet full-year guidance, despite a 3.1% drop in revenue to £14.6 billion for the six months to 31 March. While tobacco volumes fell 3.2%, pricing rose 5.9%, driving a 3.2% increase in sales of tobacco and next-generation products (NGP) to £3.7 billion.
Auto Trader (-4.4%) shares dipped despite a confident outlook in its annual results, easing after a strong rally since April. Group revenue rose 5% to £601 million for the year ending 31 March, driven by a 7% increase at its core platform to £564.8 million. This offset a 12% sales drop at its van-leasing arm, Autorama, which fell to £36.3 million. The company stated that it continues to face supply constraints, with cars selling faster than in recent years.
Positive contributors to performance included:
Pandora (+22%), Banco Santander (+14%) and Belimo Holdings (+14%)
Negative contributors to performance included:
Gamma Communications (-9.1%), Imperial Brands (-6.3%) and Auto Trader (-4.4%)
Discrete years' performance (%) to previous quarter-end**:
|
|
Mar-25 |
|
Liontrust GF Pan-European Dynamic Fund A5 |
3.5% |
|
MSCI Europe |
6.8% |
*Source: Financial Express, as at 31.05.25, total return (net of fees and income reinvested), A5 class.
**Source: Financial Express, as at 31.03.25, total return (net of fees and income reinvested), bid-to-bid, A5 class. Discrete data is not available for ten full 12-month periods due to the launch date of the portfolio (27.02.24). Investment decisions should not be based on short-term performance.
Key Features of the Liontrust GF Pan-European Dynamic Fund
The investment objective of the Fund is to achieve capital growth over the long-term by predominantly investing in a portfolio of European equities. The Investment Adviser will seek to achieve the investment objective of the Fund through investment of at least 80% of the Fund’s Net Asset Value in companies which are incorporated, domiciled, listed or conduct significant business in Europe (the EEA, Switzerland and the UK). The Fund will not be restricted in its choice of investment by either size or sector.
The Fund is considered to be actively managed in reference to MSCI Europe Index (the “Benchmark”) by virtue of the fact that it uses the Benchmark for performance comparison purposes and for certain Performance Fee Share Classes, to calculate performance fees. 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 Benchmarks.The Fund is not expected to have any exposure to financial derivative instruments in normal circumstances, but the Investment Adviser may on occasion, where it deems it appropriate in seeking to achieve the investment objective of the Fund, use financial derivative instruments listed on a recognised exchange or traded on an organised market or financial derivative instruments traded over-the-counter for investment purposes, efficient portfolio management, and hedging purposes.
In addition, the Fund may invest in exchange traded funds and other eligible open-ended collective investment schemes. No more than 10% of the net assets of the Fund will be invested in aggregate in open-ended collective investment schemes. The Fund may invest in closed-ended funds that qualify as transferable securities. Investment in closed-ended funds is not expected to comprise a significant portion of the Fund’s net assets and will not typically exceed 10% of net assets.
For liquidity or cash management purposes, a proportion of the Fund may also be invested in debt securities including government and corporate bonds, Money Market Instruments, cash and near cash and deposits. Any investment in bonds will be in investment grade corporate and government fixed or floating rate instruments.
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 Cashflow Solution team:
- May hold overseas investments that 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 a Fund.
- May have a concentrated portfolio, i.e. hold a limited number of investments (35 or fewer) or have significant sector or factor exposures. If one of these investments or sectors / factors fall in value this can have a greater impact on the Fund's value than if it held a larger number of investments across a more diversified portfolio.
- May, under certain circumstances, invest in derivatives, but it is not intended that their use will materially affect volatility. Derivatives are used to protect against currencies, credit and interest rate moves or for investment purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The use of derivatives may create leverage or gearing resulting in potentially greater volatility or fluctuations in the net asset value of the Fund. A relatively small movement in the value of a derivative's underlying investment may have a larger impact, positive or negative, on the value of a fund than if the underlying investment was held instead. The use of derivative contracts may help us to control Fund volatility in both up and down markets by hedging against the general market.
- The use of derivative instruments that may result in higher cash levels. Cash may be deposited with several credit counterparties (e.g. international banks) or in short-dated bonds. A credit risk arises should one or more of these counterparties be unable to return the deposited cash.
- 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.
- 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.
- May target an absolute return. There is no guarantee that an absolute return will be generated over the time period stated in the fund objective or any other time period.
The risks detailed above are reflective of the full range of Funds managed by the Cashflow Solution 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.
