Liontrust Global Dividend Fund

February 2020 review

The Liontrust Global Dividend Fund returned -7.3%* in February. For comparison, the MSCI AC World Index returned -5.1% and the average return of funds in the IA Global Equity Income sector was -6.7%.

After a steady start to the month, markets finished February with heavy indiscriminate selling across all industries and asset classes. As markets rushed to price in the uncertainty presented by COVID-19 to the economy, we applaud the speed of which the healthcare community has achieved successful mapping of the virus and the quick deployment of healthcare supplies and equipment to those affected. Hopefully, the worst is behind us, however, now with the virus spreading in the rest of the world we expect volatility to persist.

 

Importantly, not all companies are equal and we invest only in ‘Global Leaders’ who have strong balance sheets and are less exposed to the cyclical nature of economic cycles than the rest of the market. Therefore, when the market is experiencing large degrees of stress exhibited by heightened volatility and a rush to safety, we seek to buy when others are rushing for the door. We still consider a demand shock as a possible black swan event and will continue to update our view of the markets as more information becomes available.

 

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

 

Dec-19

Dec-18

Dec-17

Dec-16

Dec-15

Liontrust Global Dividend C Acc GBP

34.0

-5.2

6.9

11.1

3.2

MSCI AC World

21.7

-3.8

13.2

28.7

3.3

IA Global Equity Income

18.6

-5.8

10.4

23.2

1.5

Quartile

1

2

4

4

3

 

*Source: Financial Express, as at 29.02.2020, total return (net of fees and income reinvested). Non fund-related return data sourced from Bloomberg.

**Source: Financial Express, as at 31.12.2019, total return (net of fees and income reinvested) primary class.


For a comprehensive list of common financial words and terms, see our glossary here.

  

Key Risks

 

Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. Investment in funds managed by the Global Equity (GE) team may involve investment in smaller companies - these stocks may be less liquid and the price swings greater than those in, for example, larger companies. Investment in funds managed by the GE team may involve foreign currencies and may be subject to fluctuations in value due to movements in exchange rates. The team may invest in emerging markets/soft currencies or in financial derivative instruments, both of which may have the effect of increasing volatility. Some of the funds managed by the GE team hold a concentrated portfolio of stocks, meaning that if the price of one of these stocks should move significantly, this may have a notable effect on the value of that portfolio.

 

Disclaimer

 

The information and opinions provided 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. Always research your own investments and (if you are not a professional or a financial adviser) consult suitability with a regulated financial adviser before investing.

Wednesday, March 11, 2020, 9:52 AM