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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.
- Global equity markets lifted by speculation of looser US monetary policy
- Long book lags the rise in European markets in August, while short book returns were flat.
- Balfour Beatty and Banco Santander make positive contributions in long book, but Pandora shares fall on deceleration in Q2 jewellery sales
The Fund’s A4 share class returned -0.9%* in euro terms in August. The Fund’s comparator benchmarks, the MSCI Europe Index and HFRX Equity Hedge EUR Index, returned 1.2% and 1.3% respectively.
Global equity markets were buoyed by the prospect of US interest rate cuts as macroeconomic data pointed to some slowing in the labour market, while inflation rates are yet to show much impact from the imposition of Trump’s trade tariffs. At the same time, the US president’s move to challenge US Federal Reserve independence – putting pressure on Jay Powell to cut rates and attempting to sack governor Cook – fuelled further speculation around looser monetary policy.
The rise in the European market (MSCI Europe +1.2% in euro terms) was achieved despite a -0.9% return from France’s CAC40. The market fell towards the end of the month as French prime minister Francois Bayrou announced an unexpected confidence vote for September. Large caps led the rise in European markets, up 1.2% compared to the -0.7% performance of small caps.
Within the MSCI Europe Index, healthcare (+4.1%) was the strongest sector in euro terms, with consumer staples (+3.2%) and energy (+2.9%) also among the biggest risers. The weakest areas were IT (-1.9%), utilities (-1.7%) and industrials (-1.6%).
The Fund’s negative monthly return was primarily the result of the long book lagging the European market rally, with the short book generating a flat return. Within the short book, the largest contributor – a Norwegian renewable energy specialist which has suffered project cancellations by the Trump administration – was cancelled out by a negative return on the position in a US solar energy stock which rallied on signs that US policy on this sector may be less harsh than feared.
Within the long book Banco Santander (+8.3%) rallied through August after releasing half-year results on the penultimate day of July. Although revenues were flat at 31 billion euros, the bank trimmed operating expenses by 0.4% - allowing attributable profit to rise 15% year-on-year to 6.8 billion euros. The bank also announced a new share buyback programme of 1.7 billion euros, paying out 25% of its income as part of its commitment to return 10 billion euros to shareholders via buybacks in 2025 and 2026.
UK infrastructure group Balfour Beatty (+9.1%) reported a 7% increase in profits from operations from earnings-based businesses in the first half of 2025, as strong UK construction and support services offset a weaker performance from US construction. The company cited recent UK government commitments to major infrastructure projects as providing an opportunity to further enhance its order book which already stands at £19.5 billion.
Although Pandora (-19%) maintained its 2025 guidance of 7-8% organic growth and operating profit margins of around 24%, Q2 sales trends were soft enough to raise some concerns among investors. A quarterly trading update showed margins contracting to 19.4%, after a 230 basis point headwind from adverse moves in currency and commodity prices as well as the impact of tariffs. While quarterly organic growth was 8%, including 3% like-for-like and 5% store network expansion, this included a sales growth slowdown to 2% in July following a weak end of season sale.
Having outperformed the European market by around 25% year-to-date, Eiffage (-8.6%) saw some profit taking in August following the release of in-line half-year results. The construction and infrastructure group grew revenue 8.4% and operating profit 16.4%, while maintaining its 2025 guidance.
Discrete years' performance (%) to previous quarter-end**:
| Jun-25 | Jun-24 | Jun-23 | Jun-22 | Jun-21 |
Liontrust GF European Strategic Equity A4 Acc EUR | 6.7% | 14.7% | 3.1% | 31.7% | 36.9% |
MSCI Europe | 8.1% | 13.7% | 16.7% | -6.5% | 27.9% |
HFRX Equity Hedge EUR | 5.2% | 7.3% | 2.0% | -2.2% | 19.0% |
| Jun-20 | Jun-19 | Jun-18 | Jun-17 | Jun-16 |
Liontrust GF European Strategic Equity A4 Acc EUR | -15.5% | 2.5% | 3.0% | 5.3% | 2.9% |
MSCI Europe | -5.5% | 4.5% | 2.8% | 18.0% | -11.0% |
HFRX Equity Hedge EUR | -4.5% | -6.3% | 3.5% | 6.0% | -9.4% |
*Source: Financial Express, as at 30.08.25, total return (income reinvested and net of fees).
**Source: Financial Express, as at 30.06.25, total return (income reinvested and net of fees). Investment decisions should not be based on short-term performance.
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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 will 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.
- The Fund’s volatility limits are calculated using the Value at Risk (VaR) methodology. In high interest rate environments the Fund’s implied volatility limits may rise resulting in a higher risk indicator score. The higher score does not necessarily mean the Fund is more risky and is potentially a result of overall market conditions.
- Credit Counterparty Risk: the Fund uses derivative instruments that may result in higher cash levels. Outside of normal conditions, the Fund may choose to hold higher levels of cash. Cash may be deposited with several credit counterparties (e.g. international banks) or in shortdated bonds. A credit risk arises should one or more of these counterparties be unable to return the deposited cash.
- Liquidity Risk: the Fund 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.
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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.
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