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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
- The European smaller companies market was flat over the period, with the month characterised by pronounced swings in investor sentiment.
- Top performers in November included Games Workshop, which signalled a strong first half with sales and profits set to rise, and Kainos Group, which delivered robust top-line growth in the first half of 2025.
- UK property portal Rightmove fell after announcing increased investment in AI and a rebuild of its digital infrastructure, prompting concerns over near-term profitability.
Performance
The Fund’s A3 share class returned 1.3%* in euro terms in November. This Fund’s target benchmark, the MSCI Europe Small Cap Index, returned 0.0%.
Commentary
European equities posted modest gains in November. The month was marked by sharp swings in sentiment with markets surging early on, led by financials, on relief around the US government shutdown and solid earnings expectations. However, volatility picked up mid-month amid concerns over stretched valuations in AI-linked technology stocks.
The MSCI Europe Index was led by healthcare (+5.4%) and financials (+2.9%), alongside solid contributions from consumer staples (+2.5%), utilities (+2.3%), energy (+1.5%), materials (+1.4%). The weakest segments were communication services (-2.8%), industrials (-2.9%) and technology (-4.0%).
Games Workshop (+22%), the manufacturer and retailer of tabletop war-game systems and fantasy miniatures, signalled a strong first half, with both sales and profits set to increase. In a trading update, the company announced estimated revenues of at least £310 million for the six months to November, up 15% from £269 million a year earlier. Pre-tax profit is expected to reach around £135 million, compared with nearly £127 million in the prior period.
Kainos Group (+12%), a position we added mid-month, delivered solid top-line growth in the first half of 2025, reporting a 7% rise in revenue to £196 million, supported by broad-based momentum across its divisions. Adjusted pre-tax profit declined as higher costs came through, but the company reiterated its full-year profit guidance and announced a £30 million share buyback programme. Workday Products remained a standout performer, with annual recurring revenue rising 19% and surpassing the $100 million milestone.
French cement producer Vicat (+8.8%) reported a 1.4% rise in third-quarter sales to €992 million, ahead of analyst expectations. The company also reaffirmed its 2025 guidance, maintaining its outlook for like-for-like sales growth and for EBITDA to increase by 2% to 5% on a like-for-like basis.
UK property portal Rightmove (-18%) dropped after announcing increased investment in AI and a rebuild of its digital infrastructure, prompting concerns over near-term profitability. In its latest update, the company guided to underlying operating profit growth of 3-5% in 2026, compared with 4-9% expected across 2024-25. We exited our position in Rightmove following its profit warning, after which the shares continued to decline.
Playtech (-11%) shares fell after the gambling-technology group was downgraded by a covering analyst, who pointed to heightened uncertainty stemming from an ongoing US legal dispute between the company and rival Evolution.
IONOS Group (-9.4%) slid after the German web hosting group reported weaker-than-expected third-quarter revenue, weighed down by softness in its Core and Cloud divisions and a sharp downturn in its advertising technology (AdTech) segment, with revenue dropping 66% to €27.5 million, significantly below market expectations. Management has opted to sell the AdTech business, which will be reclassified as discontinued operations.
Positive contributors to performance included:
Games Workshop (+22%), Kainos Group (+12%) and Vicat (+8.8%).
Negative contributors to performance included:
Rightmove (-18%), Playtech (-11%) and IONOS Group (-9.4%).
Discrete years' performance (%) to previous quarter-end:
| Sep-25 | Sep-24 | Sep-23 | Sep-22 | Sep-21 |
Liontrust GF European Smaller Companies A3 Acc EU | 8.2% | 21.1% | 14.2% | -20.7% | 59.1% |
MSCI Europe Small Cap | 8.4% | 20.3% | 14.0% | -26.9% | 38.0% |
| Sep-20 | Sep-19 | Sep-18 |
Liontrust GF European Smaller Companies A3 Acc EUR | -1.9% | -6.7% | 2.0% |
MSCI Europe Small Cap | 0.2% | -1.8% | 3.4% |
*Source: Financial Express, as at 30.11.25, total return (net of fees and income reinvested).
**Source: Financial Express, as at 30.09.25, total return (net of fees and income reinvested). Discrete data is not available for ten full 12-month periods due to the launch date of the portfolio (01.02.17). Investment decisions should not be based on short-term performance.
Key Features of the Liontrust GF European Smaller Companies Fund
The investment objective of the Fund is to achieve long term capital growth by investing primarily in European smaller companies. The Fund may invest in all economic sectors in all parts of the world, although it is intended it will invest primarily in equities and equity related derivatives (i.e. total return swaps, futures and embedded derivatives) in European companies (including the UK and Switzerland). The majority of the assets of the Fund (more than 85%) are expected to be invested in smaller companies (with a market capitalisation of less than 5 billion euros at the time of the initial investment). In normal conditions, the Fund will aim to hold a diversified portfolio, although at times the Investment Adviser may decide to hold a more concentrated portfolio, and it is possible that a substantial portion of the Fund could be invested in cash or cash equivalents. The Fund may use FX forwards to hedge the Fund’s currency exposures. 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.
5 (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 Small -Cap Index net total return (the “Benchmark”) by virtue of the fact that it seeks to outperform the Benchmark. However 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.
- 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.
- 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.
- 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.
