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VIew NowPast performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.
- Portfolio M&A activity continues, with Spectris joining GlobalData, Craneware and Alpha Group International as bid targets.
- Encouraging return of momentum to UK small caps, which have led the recovery from the market’s April lows.
- In addition to significant small company re-rating potential, we expect returns to be supported by ongoing M&A, buyback activity and – most importantly – resilient earnings growth compounding from our companies.
The Liontrust GF Special Situations Fund returned 2.4%* in July. The Fund’s comparator benchmark, the FTSE All-Share, returned 4.0%.
Global equity markets’ recovery from April’s tariff-triggered sell-off continued in July, with the FTSE making steady gains. US trade policy remained a key feature for market commentators throughout the month, but while the agreement of deals with Japan and the EU helped boost sentiment, investors were largely content to set the trade tariff saga aside and focus on corporate updates.
Once again, sentiment was heavily influenced by broader macro themes, and the FTSE 100 outperformed mid- and small-cap indices. This meant that although absolute performance was strong in the Fund, it proved a tougher month for active managers versus the index. However, in absolute terms, we were encouraged to see broad-based share price strength continuing across many of our mid- and small-cap holdings.
Sticking with the theme of policy uncertainty, shares in AstraZeneca (+12%) have been under some pressure over the last year due to increasing rhetoric from the US administration around the potential to compel drug price reductions. Solid results from the pharma group during July served as a timely reminder to investors of the high quality and globally diversified growth profile of the business.
Q2 constant currency earnings growth of 10% to $26.7 billion was better than consensus expectations, driven by double-digit growth in oncology and biopharma divisions. Despite the Q2 beat, AstraZeneca maintained rather than upgraded full-year guidance, possibly reflecting some conservatism in the face of political and macroeconomic uncertainty, yet the shares rallied strongly during the month nevertheless.
Compass Group (+8.0%) was another gainer within the portfolio after better-than-expected quarterly trading, an upgrade to full-year guidance and news of an acquisition.
The catering group achieved organic growth of 8.6% in the three months to 30 June, ahead of consensus analyst forecasts of 7.7%. As a result, it has upgraded its full-year organic growth target to above 8.0%, from 7.5% previously, with underlying profit growth expected to be 11%.
Compass also announced a deal to buy food services peer Vermaat for an enterprise value of 1.5 billion euros. Having previously expanded rapidly in North America via bolt-on acquisitions, Compass is now turning its attention to Europe. Vermaat is the market leader in its domestic Dutch market and also has a growing presence in France and Germany.
Convatec (-19%) is a provider of medical products designed to help patients manage chronic conditions, including advanced wound care dressings, ostomy care devices, continence care products and infusion sets for diabetic insulin pumps.
Its shares weakened in July as two separate pressures related to US government focus on reducing America’s cost of healthcare combined to hit sentiment. Convatec is potentially impacted by proposals to reduce prices for skin substitutes (a decision that would impact its InnovaMatrix product), as well as the introduction of a consultation to bring continence and ostomy products into scope of a competitive bidding programme.
We remain confident in the longer term prospects for Convatec, which exhibits strong barriers to competition in the form of its intellectual property, with high levels of patents, R&D innovation and category know-how. It also enjoys market leadership positions in its core categories and has a significant strength in distribution, providing products and services in almost 100 countries around the world from nine manufacturing locations. However, the regulatory uncertainty provides an overhang to sentiment in the short term.
Meanwhile, having both fallen heavily in the aftermath of Trump’s early April announcement of Liberation Day trade tariffs – threatening to dampen global trade, growth and energy consumption – BP (+11%) and Shell (+6.2%) continued a steady share price recovery. Shell’s Q2 trading update included better than expected earnings and a share buyback programme maintained at $3.5 billion for the quarter, against expectations for a small reduction; meanwhile, BP’s quarterly update signalled higher-than-expected production, prompting analysts to upgrade earnings expectations.
Positive contributors included:
TP ICAP (+12%), AstraZeneca (+12%), BP (+11%), Compass Group (+8.0%) and Shell (+6.2%).
Negative contributors included:
Convatec (-19%), YouGov (-17%), Coats Group (-6.9%), Moonpig Group (-4.9%) and BAE Systems (-4.4%)
Discrete years' performance** (%) to previous quarter-end:
Past performance does not predict future returns
| Jun-25 | Jun-24 | Jun-23 | Jun-22 | Jun-21 |
Liontrust GF Special Situations C3 Inst Acc GBP | -4.5% | 12.3% | 6.3% | -11.9% | 23.1% |
FTSE All Share | 11.2% | 13.0% | 7.9% | 1.6% | 21.5% |
| Jun-20 | Jun-19 | Jun-18 | Jun-17 | Jun-16 |
Liontrust GF Special Situations C3 Inst Acc GBP | -7.9% | 6.6% | 15.7% | 19.8% | 8.2% |
FTSE All Share | -13.0% | 0.6% | 9.0% | 18.1% | 2.2% |
*Source: Financial Express, as at 30.06.25, total return (net of fees and income reinvested), sterling terms, C3 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), primary class. Investment decisions should not be based on short-term performance.
Key Features of the Liontrust GF Special Situations Fund
The investment objective of the Fund is to provide long-term capital growth by investing in mainly UK equities using the Economic Advantage investment process. The Fund invests at least 80% in companies traded on the UK and Irish stock exchanges. The Fund is not restricted in choice of investment in terms of company size or sector. The Fund has both Hedged and Unhedged share classes available. The Hedged share classes use forward foreign exchange contracts to protect returns in the base currency of the Fund.
5 years or more.
4 (Please refer to the Fund KIID for further detail on how this is calculated)
Active
The Fund is considered to be actively managed in reference to the FTSE All Share Index (the “Benchmark”) by virtue of the fact that it uses the Benchmark for performance comparison purposes. 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 benchmark.
Understand common financial words and termsSee our glossary
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.
- Overseas investments 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 the Fund.
- The Fund, may in 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. 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.
- Credit Counterparty Risk: outside of normal conditions, the Fund 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.
- Diversification Risk: the Fund is expected to invest in companies predominantly in a single country which maybe subject to greater political, social and economic risks which could result in greater volatility than investments in more broadly diversified funds.
- Liquidity Risk: the Fund will invest in smaller companies and may invest a small proportion (less than 10%) of the Fund in unlisted securities. There may be liquidity constraints in these securities from time to time, i.e. in certain circumstances, the fund may not be able to sell a position for full value or at all in the short term. This may affect performance and could cause the fund to defer or suspend redemptions of its shares.
- Smaller Companies Risk: the Fund may invest in companies listed on the Alternative Investment Market (AIM) which is primarily for emerging or smaller companies. The rules are less demanding than those of the official List of the London Stock Exchange and therefore companies listed on AIM may carry a greater risk than a company with a full listing.
- ESG Risk: there may be limitations to the availability, completeness or accuracy of ESG information from third-party providers, or inconsistencies in the consideration of ESG factors across different third party data providers, given the evolving nature of ESG.
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.
