Liontrust UK Smaller Companies Fund October 2025 review| Insights

Past 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 highlights

Markets were supported by strong earnings, moderating inflation and expectations of lower interest rates.
Top performers included Inspecs Group, Next 15 and Robert Walters.
Big Technologies, Bioventix and Microlise were among the detractors.

Performance

The Liontrust UK Smaller Companies Fund returned -1.7%* in October. The FTSE Small Cap (excluding investment trusts) Index comparator benchmark return was 1.1%, and the average fund in the IA UK Smaller Companies sector, also a comparator benchmark, returned 0.8%.

Commentary

Global equities rose, supported by strong earnings, moderating inflation and expectations of lower interest rates. Developed markets led, with the US and Japan buoyed by AI-related technology and improving trade and political prospects, while Eurozone and UK equities posted more modest gains.

In the UK, the FTSE All-Share rose 3.7% as investors responded positively to a dovish Bank of England (BoE) stance despite persistent inflation and a challenging fiscal outlook. Within the market, the FTSE 100 gained 4.1%, the FTSE 250 1.0% and the FTSE Small Cap ex Investment Companies 1.1%, while the FTSE AIM All-Share declined 1.2%.

Shares in Inspecs Group (+57%), the eyewear manufacturer known for its broad range of mid-market and entry-level spectacle, sunglass, and safety-frame designs, rose after the company confirmed it had received two takeover approaches and a separate offer to acquire part of its business.

Next15 Group (+28%) continued its strong performance into October after a rebound in September, when the growth consultancy business reported interim results confirming trading in line with full year expectations and demonstrated clear progress on simplifying its portfolio under new management.

Recruitment specialist Robert Walters (+19%) reported an improved exit rate — the level of net fee income at the end of the quarter — which was stronger than in the third quarter. This suggested that trading momentum had picked up and the decline in net fees may have reached a turning point.

Shares in Big Technologies (-18%) retreated following the resignation of Chair Alexander Brennan, who was replaced Sangita Shah on an interim basis. Alexander had led the board as Chairman during the period of the investigations undertaken by the Company related to the removal of Sara Murray as CEO.

GlobalData (-12%) shares fell after the company cut its second-half adjusted EBITDA margin guidance. Management cited slower integration of recent acquisitions and ongoing investment in growth initiatives. GlobalData now expects a second-half margin of around 37%, resulting in a full-year 2025 adjusted EBITDA margin of approximately 35%. On the positive side, GlobalData delivered 4% growth in its contracted forward order book, accelerating from 3% in H1.

Bioventix (-16%), detracted from performance after the biotechnology specialist reported a decline in revenues and profits and announced a dividend cut. Turnover fell 3.6% to £13.1 million for the year to 30 June (from £13.6 million), as management highlighted headwinds in its core business, particularly in downstream markets in China. Notwithstanding these short term headwinds, we believe the longer term opportunity in the emerging and potentially significant field of neurology medicine through the company’s tau biomarkers is particularly exciting.

Positive contributors included:

Inspecs Group (+57%), Next 15 Group (+28%), Robert Walters (+19%), Animalcare (+7.4%) and Tatton Asset Management (+6.9%).

Negative contributors included:

Big Technologies (-18%), Bioventix (-16%), Microlise Group (-15%), EKF Diagnostics (-12%) and GlobalData (-12%).

Discrete years' performance** (%) to previous quarter-end:

	Sep-25	Sep-24	Sep-23	Sep-22	Sep-21
Liontrust UK Smaller Companies I Inc	1.1%	8.3%	-1.6%	-28.9%	46.9%
FTSE Small Cap ex ITs	6.4%	22.4%	12.7%	-24.4%	72.4%
IA UK Smaller Companies	2.5%	16.1%	2.2%	-31.9%	51.1%
Quartile	3	4	4	2	3

*Source: Financial Express, as at 31.10.25, total return (net of fees and income reinvested), bid-to-bid, institutional class. **Source: Financial Express, as at 30.09.25, total return (net of fees and income reinvested), bid-to-bid, primary class.

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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.
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.
Smaller Companies 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. 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.