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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 short book detracted from performance amid broad-based market gains, offsetting long book performance.
- Within the long book, the Fund’s financial holdings were among the strongest contributors to performance, including AIB Group, Banco Santander and CaixaBank.
The Fund’s A4 share class returned 0.7%* in euro terms in September. The Fund’s comparator benchmarks, the MSCI Europe Index and HFRX Equity Hedge EUR Index, returned 1.6% and 1.3% respectively.
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 (+11.4%), reflecting continued investor enthusiasm for AI-related growth opportunities and solid corporate earnings from major technology stocks. This was followed by industrials (+3.9%) and consumer discretionary (+3.5%). On the weaker end, consumer staples (-3.8%), energy (-2.5%), and communication services (-2.0%) saw declines.
The Fund’s long book return was marginally behind that of the MSCI Europe benchmark over the month, while the short book detracted from overall performance, as the average position saw a share price rise over the period.
Long book financial holdings were among the strongest contributors to performance in September, including AIB Group (+12%), Banco Santander (+9.6%) and CaixaBank (+5.7%) ranked among the top five performers over the month, reflecting the sector’s resilience. 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.
Long book detractors included Associated British Foods (-5.7%), which disappointed investors with weak second-half sales, notably in its sugar division, which is expected to post a £40 million operating loss due to declines in the UK and Spain. In its closely followed Primark division, like-for-like sales fell 2%, with a 2.4% drop in Q3 easing to 2% in Q4. UK and Ireland sales were flat despite favourable weather, Europe was softer, and the US remained strong with growth of 21% in Q3 and 24% in Q4.
Meanwhile, Belimo (-4.7%), a specialist in heating, ventilation, and air conditioning, declined after valuation concerns prompted a rating downgrade.
Short book detractors included a US-based developer of lithium batteries for electric vehicles, which rose after announcing a successful demonstration of its batteries with a major automotive manufacturer. Elsewhere, a bitcoin mining and digital infrastructure company advanced following gains in the cryptocurrency market.
Discrete years' performance (%) to previous quarter-end**:
| Sep-25 | Sep-24 | Sep-23 | Sep-22 | Sep-21 |
Liontrust GF European Strategic Equity A4 Acc EUR | 2.9% | 14.7% | 3.7% | 29.2% | 36.8% |
MSCI Europe | 9.3% | 18.8% | 19.2% | -11.0% | 28.8% |
HFRX Equity Hedge EUR | 6.6% | 9.5% | 2.5% | -4.0% | 16.5% |
| Sep-20 | Sep-19 | Sep-18 | Sep-17 | Sep-16 |
Liontrust GF European Strategic Equity A4 Acc EUR | -14.9% | 3.0% | 2.6% | 5.2% | 0.7% |
MSCI Europe | -7.8% | 5.7% | 1.5% | 16.3% | 1.8% |
HFRX Equity Hedge EUR | -2.4% | -3.5% | -1.1% | 5.8% | -1.3% |
*Source: Financial Express, as at 30.09.25, total return (income reinvested and net of fees).
**Source: Financial Express, as at 30.09.25, 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.
- 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.
