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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.
Key takeaways
- European equity markets experience a broad-based rally, with investor sentiment supported by the US-China trade deal, US rate cut, and ongoing AI investment.
- The rally provided a benign environment for the portfolio’s balanced positioning and momentum emphasis.
- Swedish telecoms group Ericsson and UK clothing retailer Next lead the portfolio’s gainers.
Performance
The Fund’s A5 share class returned 3.0%* in euro terms in October. This Fund’s target benchmark, the MSCI Europe Index, returned 2.6%.
Commentary
Equity indices globally climbed to notch new all-time highs in October, aided by an easing of trade tensions between the US and China.
Ahead of a summit in South Korea, Trump had threatened a 100% import tariff on Chinese goods, while China had imposed export controls on rare earths minerals – a key component in the production of a range of goods including smartphones and electric vehicle batteries. The agreement of a one-year trade deal to avoid these restrictions sparked a significant relief rally.
Sentiment was also boosted by an interest rate cut from the US Federal Reserve – the second this year – as well as a number of new corporate commitments to boost AI investment.
This supportive environment allowed most areas of European markets to enjoy a broad-based rally. Utilities (+7.4% in euro terms), IT (+6.5%) and energy (+6.0%) were the most buoyant sectors in October, with only communication services (-3.0%) recording a negative return.
From a style perspective, both MSCI Europe Growth (+2.4%) and MSCI Europe Value (+2.8%) participated fairly equally in the market rally, with momentum recovering strongly during the month – a benign backdrop for the portfolio’s current positioning.
Swedish telecoms group Ericsson (+25%) beat expectations with Q3 results, as profits came in around 10% ahead of consensus following cost-cutting efforts and operational efficiencies. With Ericsson commenting that improved gross margin levels of 48% should be maintained, analysts upgraded earnings forecasts for 2026.
UK clothing retailer Next (+15%) upgraded full-year sales guidance after experiencing stronger-than-anticipated Q3 trading. Sales in the 13 weeks to 25 October were up 10.5% year-on-year, ahead of the 4.5% growth it had targeted after both UK and overseas markets outperformed. It is now forecasting full year sales growth of 7.0%, up from 4.5% previously, with profits now expected to be £30 million higher at £1.14 billion.
Wartsila (+12%)continued its strong 2025 share price run as it released in-line Q3 results. The supplier of power equipment in the marine and energy markets recorded 6% organic growth in order intake to 1.79 billion, while net sales were flat on the same basis at 1.63 billion euros.
Kongsberg Gruppen (-23%) provides technology to industries including defence, aerospace, marine and energy. Shares in the company slid through October, and a weakening cash flow profile prompted us to sell the position – completing the exit prior to a Q3 profit warning released on the 30th which caused the shares to take another leg lower.
Online marketplace eBay (-9.0%) lost some ground due to underwhelming Q4 guidance. Although gross merchandise volume rose 8% on a constant currency basis, eBay is forecasting this to slow to 4% - 6% in Q4.
Positive contributors to performance included:
Ericsson (+24%), Next (+15%) and Wartsila (+12%).
Negative contributors to performance included:
Kongsberg Gruppen (-23%), eBay (-9.0%) and Rightmove (-6.3%).
Discrete years' performance (%) to previous quarter-end**:
| Sep-25 |
Liontrust GF Pan-European Dynamic Fund A5 | 11.4% |
MSCI Europe | 9.3% |
Key Features of the Liontrust GF Pan-European Dynamic Fund
The investment objective of the Fund is to achieve capital growth over the long-term by predominantly investing in a portfolio of European equities. The Investment Adviser will seek to achieve the investment objective of the Fund through investment of at least 80% of the Fund’s Net Asset Value in companies which are incorporated, domiciled, listed or conduct significant business in Europe (the EEA, Switzerland and the UK). The Fund will not be restricted in its choice of investment by either size or sector.
The Fund is considered to be actively managed in reference to MSCI Europe Index (the “Benchmark”) by virtue of the fact that it uses the Benchmark for performance comparison purposes and for certain Performance Fee Share Classes, to calculate performance fees. 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 Benchmarks.
The Fund is not expected to have any exposure to financial derivative instruments in normal circumstances, but the Investment Adviser may on occasion, where it deems it appropriate in seeking to achieve the investment objective of the Fund, use financial derivative instruments listed on a recognised exchange or traded on an organised market or financial derivative instruments traded over-the-counter for investment purposes, efficient portfolio management, and hedging purposes.
In addition, the Fund may invest in exchange traded funds and other eligible open-ended collective investment schemes. No more than 10% of the net assets of the Fund will be invested in aggregate in open-ended collective investment schemes. The Fund may invest in closed-ended funds that qualify as transferable securities. Investment in closed-ended funds is not expected to comprise a significant portion of the Fund’s net assets and will not typically exceed 10% of net assets.
For liquidity or cash management purposes, a proportion of the Fund may also be invested in debt securities including government and corporate bonds, Money Market Instruments, cash and near cash and deposits. Any investment in bonds will be in investment grade corporate and government fixed or floating rate instruments.
5 years or more (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 MSCI Europe Index and the HFRX Equity Hedge (EUR) Index (the “Benchmarks”) by virtue of the fact that it uses the Benchmarks for performance comparison purposes. The Benchmarks are 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 Benchmarks.
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.
- 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: This 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.
- Liquidty 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.
