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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.
- Next 15 rallies on evidence of strong operational progress as it implements new business strategy.
- Portfolio underweights to basic materials and financial sectors represent a relative performance headwind as these areas rally.
- Moonpig AGM statement shows improving sales trends at both its Moonpig and Greetz divisions.
The Liontrust GF Special Situations Fund returned -0.3%* in September. The Fund’s comparator benchmark, the FTSE All-Share, returned 1.9%.
Equity market gains were aided by a US rate cut, which was increasingly priced into markets in the wake of data showing weaker than expected jobs creation. The Fed opted to cut by a quarter percentage point, its fourth cut since rates peaked in 2023, but the first in nine months. Having cut five times in the last 18 months, the Bank of England kept rates on hold in September.
Two of the strongest areas on the UK market were basic materials (+14%) and financials (+4.3%) – a large headwind to Fund performance given that these are two core underweights for the portfolio.
To recap, the fund managers have made a long-term, high-conviction decision not to invest in banks due to the belief that historically they have proved themselves to be very poor compounders of capital, with low earnings quality given their elevated risk profile and inescapable dependence on interest rate movements which are outside of their control. Similarly, the Fund avoids miners due to their reliance on prices of tangible assets – a factor over which they have no influence– rather than the intangible assets the team believes can confer sustainable competitive advantage. The underweights to these areas presented a c.1% drag on relative performance.
Portfolio returns were also hampered by some stock specific weakness at Diageo (-13%) and YouGov (-14%), which both reversed recent gains despite the absence of any newsflow catalyst. Shares in GlobalData (-8%) also fell, likely impacted by technical factors in the run up to the company’s move from AIM to the Main Market of the London Stock Exchange later in Q4.
Away from sentiment-driven moves, September is always a key month for trading updates across the portfolio, and it was pleasing to see a comfortable majority of such updates confirming positive trading for the companies in question. The trading resilience across the board was especially notable given that most companies updating during the month were mid and small caps, which have suffered such significant share price underperformance of large caps during the year to date and in recent years.
Kainos Group (+34%) issued a trading update covering the period since 1 April, noting that it has seen a further sequential improvement in activity which builds on the solid performance in the first quarter of 2025. The outsourced provider of custom digital platforms and the Workday enterprise software suite now expects revenues for the year to 31 March 2026 to be at the upper end of consensus forecasts. Kainos is recruiting new staff across its three divisions as well as using contractors in order to support the improved growth outlook.
Next 15 Group (+23%) bounced strongly as the growth consultancy business reported interim results confirming trading in-line with full year expectations, with demonstrable progress already achieved on the simplification of the underlying portfolio under new management.
Online greeting card and gifts platform Moonpig (+14%) released an update on trading to coincide with its AGM. Since 30 April, it has seen around 10% revenue growth at its Moonpig brand while its Greetz division is also now showing modest year-on-year growth. Both businesses have seen rising order value. For this financial year, the company continues to expect mid-single percentage growth in adjusted EBITDA (earnings before interest, tax, depreciation and amortisation).
Craneware (+12%) reported on a year of strong growth in revenues, recurring revenues and earnings in the year to 30 June. The software provider to the US healthcare sector also commented that trading in the first few months of the new financial year has started well.
At GSK (+8.4%) investors welcomed the confirmation of leadership succession, with longstanding CCO Luke Miels announced as the successor to Emma Walmsley, as widely anticipated.
Midwich Group (-18%) released interims which showed a 4% decline in revenue, primarily attributable to weakness in the German market. The specialist audio visual distributor confirmed that the first few months of trading in the second half of the year had remained in line with management expectations, although the backdrop is likely to remain challenging. However, the shares were knocked by the company’s decision to reset its dividend policy, paying out a lower percentage of adjusted EPS in dividends in order to channel more capital towards organic and inorganic growth initiatives to support superior long-term returns.
Positive contributors included:
Kainos Group (+34%), Next 15 Group (+23%), Moonpig Group (+14%), Craneware (+12%) and GSK (+8.4%).
Negative contributors included:
Midwich Group (-18%), YouGov (-14%), Diageo (-13%), GlobalData (-7.6%) and AstraZeneca (-5.2%).
Discrete years' performance** (%) to previous quarter-end:
Past performance does not predict future returns
| Sep-25 | Sep-24 | Sep-23 | Sep-22 | Sep-21 |
Liontrust GF Special Situations C3 Inst Acc GBP | -4.3% | 11.5% | 8.0% | -16.7% | 25.2% |
FTSE All Share | 16.2% | 13.4% | 13.8% | -4.0% | 27.9% |
| Sep-20 | Sep-19 | Sep-18 | Sep-17 | Sep-16 |
Liontrust GF Special Situations C3 Inst Acc GBP | -3.4% | 3.1% | 13.4% | 12.6% | 22.8% |
FTSE All Share | -16.6% | 2.7% | 5.9% | 11.9% | 16.8% |
*Source: Financial Express, as at 30.09.25, 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 30.09.25, 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.
