- European equities moved higher in July, buoyed by easing trade tensions and encouraging earnings reports.
- Bankinter and BPER Banca were among the top performers for the period.
- Betsson fell as results missed expectations and Nordic revenues declined sharply, while ATOSS dropped after reporting lower profits and earnings despite higher sales.
The Fund’s A3 share class returned 0.4%* in euro terms in July. This Fund’s target benchmark, the MSCI Europe Small Cap Index, returned 1.2%.
European equities moved higher in July, buoyed by easing trade tensions and encouraging earnings reports. Gains were particularly notable in the energy (+4.9%) and financial (+4.8%) sectors, with the latter rising as a number of European banks reported solid quarterly performances.
Conversely, the information technology (-6.1%) sector lagged, weighed down by underwhelming earnings and cautious forward guidance from prominent European software and semiconductor firms.
Meanwhile, the European Central Bank maintained its benchmark interest rate at 2% during the month. President Christine Lagarde, speaking in June, had signalled that the current cycle of monetary policy easing was approaching its conclusion.
Spanish lender Bankinter (+13%) was the top performer over the month after reporting net income for the second quarter that beat estimates, with a strong lending revenue beat. The bank delivered good performance in the second quarter, highlighted by a 14% increase in net profit and a 6% uplift in gross operating income. Return on tangible equity reached 19%, while return on equity surpassed 18%.
Staying in the financials space, Italian bank BPER Banca (+12%) was also among the stronger performers after receiving a ratings upgrade.
Avon Technologies (+8.5%), which specialises in the engineering and manufacturing of respiratory protection equipment for military, law enforcement and fire personnel, was also among the strong performers, gaining ground despite the absence of any specific company announcements.
Shares in Betsson (-17%) declined as Q2 figures fell short of market expectations. The drop came even as the company reported double-digit growth in both revenue and earnings.
Performance during the quarter was driven by continued strength in Latin America, a higher sportsbook margin of 9.5% (up from 8.6% in Q2 24), and successful expansion into new markets. Casino revenue rose 11%, while sportsbook revenue advanced 15%. However, the Nordic region remained a drag on performance, with revenue falling 28.4% year-on-year to €33.9 million. This marked a continuation of recent trends and was attributed to scaled-back marketing investment across all countries in the region.
Shares in ATOSS Software (-16%) declined after the company reported a drop in quarterly profit despite higher revenue. The German workforce management software provider posted a net profit of €10.4 million for the three months ending June, down 9.4% from €11.5 million in the same period last year.
Revenue rose 9.2% year-on-year to €45.8 million, up from €42.0 million, reflecting ongoing business momentum.
Positive contributors to performance included:
Bankinter (+13%), BPER Banca (+12%) and Avon Technologies (+8.5%)
Negative contributors to performance included:
Betsson (-17%), ATOSS Software (-16%) and IPSOS (-9.4%)
Discrete years' performance (%) to previous quarter-end:
|
Jun-25 |
Jun-24 |
Jun-23 |
Jun-22 |
Jun-21 |
Liontrust GF European Smaller Companies A3 Acc EUR |
12.9% |
14.5% |
9.0% |
-9.9% |
59.6% |
MSCI Europe Small Cap |
12.2% |
12.0% |
6.7% |
-17.7% |
43.1% |
|
Jun-20 |
Jun-19 |
Jun-18 |
Liontrust GF European Smaller Companies A3 Acc EUR |
-10.7% |
-2.4% |
2.3% |
MSCI Europe Small Cap |
-4.1% |
-4.4% |
9.8% |
*Source: Financial Express, as at 31.07.25, total return (net of fees and income reinvested).
**Source: Financial Express, as at 30.06.25, total return (net of fees and income reinvested). Discrete data is not available for ten full 12-month periods due to the launch date of the portfolio (01.02.17). Investment decisions should not be based on short-term performance.
Key Features of the Liontrust GF European Smaller Companies Fund
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.