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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.
- European equity markets performed strongly in September, led by technology stocks on AI enthusiasm and strong corporate earnings.
- The Fund’s financial holdings were among the strongest contributors to performance, including AIB Group, Banco Santander and CaixaBank.
- Analyst rating downgrades weighed on a few holdings in September: such as Amadeus IT Group, AP Moller-Maersk and Belimo Holding.
The Fund returned 1.4% in sterling terms in September. The MSCI Europe ex-UK Index comparator benchmark returned 2.6% and the average return made by funds in the IA Europe ex-UK sector, also a comparator benchmark, was 1.9%.
Global equity markets experienced strong gains in September, with major benchmarks advancing on the back of technology sector strength and supportive central bank policy. The Federal Reserve reduced interest rates by 25 basis points to 4%-4.25%, with officials indicating two further cuts before year-end, providing a tailwind for US equities.
European equity markets registered robust performance against a backdrop of improving economic conditions, with the European Central Bank raising its full-year growth projections to 1.2%.
The top-performing sector for the month was information technology (+12.6%), reflecting continued investor enthusiasm for AI-related growth opportunities and solid corporate earnings from major technology stocks. This was followed by consumer discretionary (+4.7%) and industrials (+4.5%). On the weaker end, consumer staples (-2.5%), materials (-2.2%), and real estate (-1.6%) saw declines.
The Fund’s financial holdings were among the strongest contributors to performance in September. AIB Group (+12%), Banco Santander (+9.6%) and CaixaBank (+5.7%) ranked among the top five performers over the month. Supportive macroeconomic conditions and a constructive interest rate environment further bolstered sentiment towards European banks, underscoring the sector’s continued role as a key driver of market returns.
Analyst rating downgrades weighed on a few of the portfolio’s detractors in September. Amadeus IT Group (-5.0%), the Spanish multinational technology company specialising in software and IT solutions for the global travel industry declined after a ratings downgrade, with the covering analyst citing “a foggy outlook.”
Danish shipping and logistics leader AP Moller-Maersk (-4.4%) also suffered from a downgrade, as analysts warned that a growing supply glut could push the sector back into losses during the upcoming trough season. Meanwhile, Belimo (-4.7%), a specialist in heating, ventilation, and air conditioning, declined after valuation concerns prompted a similar revision.
Positive contributors to performance included:
AIB Group (+12%), Banco Santander (+9.6%) and ArcelorMittal (+8.3%).
Negative contributors to performance included:
Amadeus IT Group (-5.0%), Belimo (-4.7%) and AP Moller-Maersk (-4.4%).
Discrete years' performance (%) to previous quarter-end**:
| Sep-25 | Sep-24 | Sep-23 | Sep-22 | Sep-21 |
Liontrust European Dynamic I Inc | 15.2% | 12.9% | 26.8% | -8.7% | 42.8% |
MSCI Europe ex UK | 13.9% | 14.5% | 19.0% | -12.8% | 20.9% |
IA Europe Excluding UK | 12.1% | 14.6% | 18.7% | -16.1% | 22.4% |
Quartile | 2 | 4 | 1 | 1 | 1 |
*Source: Financial Express, as at 30.09.25, total return (net of fees and income reinvested), bid-to-bid, institutional class. Non fund-related return data sourced from Bloomberg.
**Source: Financial Express, as at 30.09.25, total return (net of fees and income reinvested), bid-to-bid, primary class.
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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, 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.
- Concentration Risk: the 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.
- 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.
- 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.
