Liontrust European Dynamic Fund

• European markets advanced in June, supported by stronger economic data and a clearer path for monetary policy.
• Wartsila continued its strong momentum into June, while Spotify and Kongsberg Gruppen also delivered robust performances.
• Renault was the largest detractor during the month, impacted by the departure of its CEO. Inditex and Partners Group were also among the notable underperformers.

The Fund returned 1.0% in sterling terms in June. The MSCI Europe ex-UK Index comparator benchmark returned 0.6% and the average return made by funds in the IA Europe ex-UK sector, also a comparator benchmark, was 0.8%.

European markets advanced in June, supported by stronger economic data and a clearer path for monetary policy. The European Central Bank delivered a widely expected 25 basis point rate cut – its eighth cut since mid-2024 – signalling a continued commitment to support flagging growth amid receding inflationary pressure.

Beyond Europe, the global backdrop was shaped by a robust rally in US equities, as the S&P 500 continued its strong performance to post its strongest quarterly gain since late 2023. Markets responded positively to better-than-expected US job numbers, even as the Fed opted to keep rates on hold amid lingering inflation concerns.

The top-performing sector for the month was energy (+6.3%), followed by utilities (+3.6%) and industrials (+2.7%). On the weaker end, consumer staples (-5.0%) and consumer discretionary (-2.7%) saw the largest declines..

Wartsila (+16%), a leading provider of technologies and lifecycle solutions for the marine and energy sectors, extended its strong performance despite the absence of any major news during the month. The rally appears to be a continuation of momentum generated by its impressive Q1 2025 results released in April. The company reported an 18% increase in net sales to €1.56 billion, a 29% rise in comparable operating profit to €171 million, and a 17% expansion of its order book, which reached €8.53 billion.

Spotify (+14%), the audio streaming giant, was one of the standout performers in the month, extending its strong year-to-date rally. The company benefited from a wave of analyst optimism, receiving multiple ratings upgrades and increased price targets, which further fuelled investor confidence.

Kongsberg Gruppen (+8.0%) announced a significant development – a major contract with Germany for the delivery of Joint Strike Missiles (JSM) to equip its fleet of F-35 fighter jets. This high-profile agreement further underscored Kongsberg’s strength in the global defence market.

French carmaker Renault (-12%) was the leading detractor in June, declining after announcing the departure of its CEO.

Industria de Diseno Textil (Inditex, -5.8%) posted a 1.5% increase in first-quarter sales to €8.27 billion, falling short of analyst forecasts. The slowdown marks a sharp deceleration from the 7% growth recorded in the same period last year, as the fast-fashion giant grapples with a more cautious consumer backdrop. The Spanish retailer cited cooler weather in key markets like Spain – which contributes around 15% of global sales – and persistent economic uncertainty as factors weighing on performance.

Partners Group (-7.5%) declined after an analyst downgraded the stock, citing near-term earnings risks amid a premium valuation.

Positive contributors to performance included:

Negative contributors to performance included:

Renault (-12%), Partners Group (-7.5%) and Industria de Diseno Textil (-5.8%)

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

*Source: Financial Express, as at 30.06.25, total return (net of fees and income reinvested), bid-to-bid, institutional class. Non fund-related return data sourced from Bloomberg.
**Source: Financial Express, as at 30.06.25, total return (net of fees and income reinvested), bid-to-bid, primary class.

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.