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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.
The Liontrust Global Smaller Companies Fund returned -1.1% in August, compared with the 2.7% return of the MSCI ACWI Small Cap Index and an average return of 0.3% in the IA Global sector, its comparator benchmarks.
In August we saw a notable rotation in equity markets, with small caps generally outperforming large caps. This was particularly pronounced in the US, where cooling inflation and employment data led to a change in language by the Federal Reserve Chair, indicating rate cuts ahead are likely under consideration. As a result, US small cap stocks rallied driven by financials and cyclical sectors. In Asia and Japan, easing trade tensions and robust export data supported tech and manufacturing sectors. In Europe and the UK, mixed economic data and cautious central bank policy stances led to negative performance for small caps.
It was a difficult month for our strategy. Our focus on high quality, durable earnings growth companies led to underperformance as we lagged the cyclical-led rally in the US. Further, rising long-term bond yields outside the US led to value outperforming growth, which was a factor headwind for our ex-US portfolio. Sysmex, a large position for us coming into the year, faced difficulties driven by Chinese healthcare policy changes, and was the largest detractor (discussed in more detail below).
Top contributors:
Chroma ATE (+29% total return in sterling terms) – Chroma’s leadership in system-level semiconductor testing continues to enable it to outgrow peers, with Q2 revenue growth of 17% year-on-year. Strong customer adoption in AI and high-performance computing remains a structural driver. Margins improved due to operating leverage, and the company retains a robust order pipeline, particularly from Asian and US customers.
Installed Building Products (+27%) – Shares rose as signs of stabilisation emerged in the US housing cycle. Q2 earnings showed insulation installation volumes holding firm despite still-challenging mortgage affordability.
Advanced Drainage Systems (+23%) – Reported strong quarterly results well ahead of expectations, as despite challenging conditions in construction end markets, the business proved its quality credentials via ongoing efficiency gains, pricing stability, and innovation in higher-margin product lines supporting demand.
Largest detractors:
Sysmex Corporation (-24%) – Sysmex is the world’s leading blood-testing machine maker, with incredible IP and leading expertise in hematology, hemostasis and also urinology. It has more than 50% global market share in hematology analyzers. More than 60% of its sales come from reagents, which are the one-time-use components required to run blood tests on its machines, and therefore are largely recurring items, and support a very stable revenue base. Sales growth is driven by global blood testing volumes, market adoption particularly in fast growing regions such as India and LatAm, and innovation (we are particularly excited about the new XR series of hematology analyzers Sysmex has just released). However, Sysmex’s China sales (around a quarter of total revenue) were hit by a change to set testing procedures and government procurement policies aimed at controlling medical costs given the country’s aging population and higher healthcare needs. Over the long term, Sysmex’s business in China will grow given these higher healthcare needs, but policy changes will certainly create volatility.
CTS Eventim (-19%) – Saw margin compression in its live entertainment business driven by low/no profitability across mid and small sized European festivals, and is conducting a strategic review of these festivals to recover margin and support long term sustainable profitability. The company’s strengths and growth characteristics are really driven by the much larger ticketing business line. CTS Eventim is the largest ticketing operator in Europe, with growing online penetration and secular demand for live entertainment continues to rise (driven by pricing which is a very profitable growth lever). The ticketing business remains very healthy therefore we have no concerns with the potential for long term compounding.
Zuken Inc (-14%) – Saw muted short term demand for its electronic design automation tools. However, the long-term outlook is positive given rising design complexity in automotive, 5G, and electrification end markets. The company is investing in next-generation software platforms and remains strategically positioned to benefit from technology design trends. Zuken is also addressing its overcapitalised balance sheet through stock buybacks, increasing its ROIC (or in our view, revealing its very strong underlying ROIC).
Discrete years' performance* (%) to previous quarter-end:
| Jun-25 | Jun-24 | Jun-23 | Jun-22 | Jun-21 |
Liontrust Global Smaller Companies C Acc | -0.9% | 10.1% | 14.0% | -26.1% | 31.3% |
MSCI ACWI Small Cap | 4.8% | 11.3% | 8.0% | -11.1% | 37.8% |
IA Global | 4.6% | 14.9% | 10.8% | -8.8% | 25.9% |
Quartile Ranking | 4 | 4 | 2 | 4 | 1 |
* Source: FE Analytics, as at 30.08.25, total return, net of fees and income reinvested. The current fund managers’ inception date is 14.01.25.
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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.
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