- Although European markets declined in euro terms during June, they were supported by stronger economic data and increased clarity around the monetary policy outlook.
- 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 was also among the notable underperformers following a slowdown in first quarter sales.
The Fund’s A5 share class returned -0.4%* in euro terms in June. This Fund’s target benchmark, the MSCI Europe Index, returned -1.3%.
European markets were supported by stronger economic data in June 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 (+3.0%), followed by utilities (+1.4%) and industrials (+1.1%). On the weaker end, consumer staples (-5.6%) and consumer discretionary (-4.3%) saw the largest declines.
Wartsila (+14%), 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 (+12%), 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 (+6.1%) announced 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 (-14%) was the leading detractor in June, declining after announcing the departure of its CEO.
Industria de Diseno Textil (-7.4%) 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.
Positive contributors to performance included:
Wartsila (+14%), Spotify (+12%) and Kongsberg Gruppen (+6.1%)
Negative contributors to performance included:
Renault (-14%), eBay (-8.0%) and Industria de Diseno Textil (-5.8%)
Discrete years' performance (%) to previous quarter-end**:
|
|
Jun-25 |
|
Liontrust GF Pan-European Dynamic Fund A5 |
10.0% |
|
MSCI Europe |
8.1% |
*Source: Financial Express, as at 30.06.25, total return (net of fees and income reinvested), A5 class. **Source: Financial Express, as at 30.06.25, 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.
