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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 -2.9% in September, compared with the 2.4% return of the MSCI ACWI Small Cap Index and an average return of 2.4% in the IA Global sector, its comparator benchmarks.
September’s global market gains were aided by a US rate cut, which was increasingly priced into markets in the wake of data showing only 22,000 jobs created in August – significantly below the 75,000 expected. With inflationary pressures from tariffs looking contained for now, the Fed opted to cut by a quarter percentage point – its fourth reduction since rates peaked in 2023, but the first in nine months.
The prospect of looser US monetary policy provided a supportive environment for emerging markets and growth stocks, although renewed strength in US mega-cap, AI-driven names contributed to large caps modestly outperforming small caps over the month.
Top contributors:
- Cadre Holdings (+19%) – The shares initially fell then rallied following a mixed set of quarterly results, which indicated a delay in orders but also highlighted sustained strength in the long-term pipeline and the pricing power in the business model. We used the sell-off after the results as an opportunity to increase our position, supported by our confidence in the company's long-term prospects. Additionally, we believe that rising interest in nuclear power generation—driven by the expansion of AI infrastructure—has contributed to recent short-term investor attention. Cadre has developed a strong nuclear safety offering over recent years.
- OSI Systems (+8.7%) – As we outlined following our recent visit to the United States we continue to view OSI as not only an excellent Economic Advantage stock but also a company undergoing significant structural changes, driven by increased border spending. In August, OSI delivered a robust Q4 statement, reflecting sustained growth and a positive outlook.
- Medpace Holdings (+8.5%) – The shares have risen further following favourable Q2 results in July, while anticipated interest rate reductions are expected to increase biotech investment levels.
Largest detractors:
- Interparfums (-13%) – Reported second-quarter results that highlighted short-term challenges to consumer spending. However, full-year guidance was reiterated. The company continues to invest in an expanding portfolio of fragrance brands, as evidenced by recent agreements with Longchamp and Off-white. The founders, who collectively hold over 40% of the company's equity and have more than forty years of expertise in the fragrance sector, not only view temporary setbacks as opportunities but also lead the management team with confidence and experience, guiding the company through challenging periods.
- Paylocity (-11%) – Although the company reported solid results for the month, its shares have remained volatile throughout the year. Sustained growth in recurring revenue, an expanding customer base, and successful upselling of new products reinforce our long-term confidence in Paylocity’s prospects. However, in the near term this positive outlook has been tempered by softer US employment data impacting the broader macroeconomic environment.
- Choice Hotels International (-10%) – Reported second-quarter results that largely reflected ongoing trends of slightly weakening RevPAR (Revenue per Available Room) due to challenging consumer conditions, with new room growth remaining consistent. In the short term, share price volatility has been influenced by forecasts for the US consumer economy, particularly in relation to interest rates and employment data. However, we maintain the view that the company's strong brands, franchise network, and entrepreneurial leadership position it well for long-term success.
Discrete years' performance* (%) to previous quarter-end:
| Sep-25 | Sep-24 | Sep-23 | Sep-22 | Sep-21 |
Liontrust Global Smaller Companies C Acc | -3.1% | 14.7% | 7.4% | -24.9% | 25.0% |
MSCI ACWI Small Cap | 12.4% | 13.4% | 5.4% | -9.2% | 34.8% |
IA Global | 12.1% | 16.2% | 7.8% | -8.9% | 23.2% |
Quartile Ranking | 4 | 3 | 3 | 4 | 2 |
* Source: FE Analytics, as at 30.09.25, total return, net of fees and income reinvested. The current fund managers’ inception date is 14.01.25.
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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.
- Liquidity Risk: as the Fund is primarily exposed to smaller companies there may be liquidity constraints 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. In addition the spread between the price you buy and sell units will reflect the less liquid nature of the underlying holdings.
- Emerging Markets Risk: the Fund may invest in emerging markets which carries a higher risk than investment in more developed countries. This may result in higher volatility and larger drops in the value of the fund over the short term.
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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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