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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 UK Equity Fund returned -0.5% over the quarter, versus the 6.9% return from its comparator benchmark, the FTSE All Share Index, and the 3.1% average return from the Investment Association UK All Companies sector, also a comparator benchmark.*
The Liontrust UK Focus Fund was merged into the Liontrust UK Equity Fund on 19 September 2025.
The UK market performed well in the quarter. Market strength was led by the commodities and industrials sectors, with Anglo American, Rolls-Royce, and BAE Systems among the standout performers. However, lingering concerns about the UK’s fiscal outlook and persistently sticky inflation weighed on more domestically focused areas, particularly consumer discretionary and real estate stocks.
From a sector perspective, overweight exposures to industrials and healthcare contributed the most positively to relative performance. Overweight exposures to technology and real estate had the most significant negative impacts on relative performance.
Positive stock attribution
The most significant positive contributor to relative performance was an overweight position in Thermo Fisher Scientific, the US life sciences and clinical research company. Thermo reported strong Q2 results and raised its outlook, while the broader healthcare sector advanced following favourable US policy comments on drug pricing.
An overweight position in Anglo American, the multinational mining company, was the second leading contributor to the Fund’s relative returns. The announcement of its merger with Teck Resources was well received as the deal will create a world-class copper portfolio with meaningful synergies.
Negative stock attribution
The most significant detractor from relative performance was an overweight position in Haleon, the consumer health company. Haleon’s share price was weak over concerns around a challenging US consumer backdrop amid rising competition in some of their product areas.
An underweight position in HSBC, the international bank, was the second most significant detractor from relative performance. The company continued to execute on its strategic plans to simplify the business while announcing solid Q2 results, which drove its share price higher.
Trading activity
During the quarter we initiated a new position in Ibstock.
Ibstock is the UK market leader in brick manufacturing. Brick market volumes are down around 30% from their peak and profits down around 50%. We believe there is significant earnings recovery potential here given the operating leverage in the business. With its recent capex cycle ending, Ibstock should become increasingly cash generative, and recent share price weakness due to concerns on market volumes in the short-term provided an attractive entry point.
We trimmed positions in Shell and Whitbread due to lowered relative conviction.
Outlook
The global economic outlook remains complex and challenging. Enthusiasm around AI and its potential benefits for productivity and corporate profitability has driven significant moves in technology and related sectors. However, underlying economic activity remains subdued, particularly in Europe and China, while trade tensions and geopolitical risks add to uncertainty.
From a UK consumer perspective where we are well exposed in the portfolio (Greggs, Dunelm and Whitbread predominantly) the outlook is mixed – consumer confidence is weak, despite relatively strong real wage growth. Companies continue to report a mixed picture: UK banks see stable credit conditions and value-focused retailers such as Greggs, Pets at Home and B&M have issued cautious updates. The consumer balance sheet seems strong, which should provide support to spending when confidence eventually picks up, but on aggregate consumers remain hesitant to convert this to spending.
Our focus remains on constructing a well-balanced and diversified portfolio of advantaged businesses. Our confidence in the medium-term outlook for the portfolio comes from the excellent strategic, operational, and financial progress that the vast majority of the companies in the portfolio have made (and continue to make) over the last couple of years. Shorter-term risks remain high across markets.
Discrete years' performance (%) to previous quarter-end:
| Sep-25 | Sep-24 | Sep-23 | Sep-22 | Sep-21 |
Liontrust UK Equity X Acc GBP | 3.8% | 15.1% | 20.2% | -15.8% | 30.0% |
FTSE All Share | 16.2% | 13.4% | 13.8% | -4.0% | 27.9% |
IA UK All Companies | 9.6% | 14.2% | 12.8% | -15.3% | 32.4% |
Quartile | 4 | 2 | 1 | 3 | 2 |
*Source: FE Analytics, as at 30.09.25, primary share class, total return, net of fees and income reinvested.
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 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.
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