Liontrust Global Smaller Companies Fund December 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

Global small caps had a positive month, although the Fund’s more defensive profile meant it was down slightly.
The Fund saw good performance in its Information technology holdings, whilst materials and healthcare stocks detracted.

Performance

The Liontrust Global Smaller Companies Fund returned -3.0% in December, compared with the -0.6% return of the MSCI ACWI Small Cap Index and an average return of -0.2% in the IA Global sector, its comparator benchmarks.

Commentary

Global small cap equities rose sharply in December, led by Western Europe and Asia. Materials outperformed, while energy and consumer staples lagged. US consumer confidence remains low, with energy struggling outside of AI-driven areas.

In the US, markets paused before year-end, facing concerns over AI spending and macroeconomic or political turbulence. The “K-shaped” economy persists, with lower-tier discretionary spending and housing both weak.

Top contributors:

Hamilton Lane (+7.2% in sterling terms) – Although no news in December, it did report Q2 results in November. This saw a beat on better performance fees, which comes hot on the heels of announcing an institutional client win earlier in November. This win was Guardian Life Insurance Company where Hamilton Lane will manage the existing portfolio of $5 billion, and it has committed to invested c.$500 million annually for the next 10 years. This highlighting the strong market position and reputation that it commands.
Interpump (+6.5%) – Again although no news in December, it did report results in November. Importantly the Hydraulics division (60% of operating profit) returned to positive organic growth for the first time since Q3 2023. Water Jetting was slightly weaker but against tough comparatives. Management guided to the top end of the forecast range on the back of this.
Interparfums (+3.8%) – Three times a charm, with a November company update. December saw a partial recovery in the share price following a more muted company update. Although we continue to believe that Interparfums is very well placed to capitalize on long-term, structural growth opportunities in fragrance, the short-term consumer backdrop has seen slower growth. We recently visited Interparfums in Paris and summarised our findings: Discovering a hidden moat in Paris.

Largest detractors:

Ryan Specialty Holdings (-12.4% in sterling terms) – Despite reporting a largely positive trading update in November, the shares gave back most of the share price gains. We see Ryan as a long-term winner in the excess & surplus industry by taking share organically and via acquisition. The market continues to focus on short-term premium dynamics which weigh on the price. We took heart seeing Pat Ryan (founder and chairman) buy some shares despite this dynamic. He retains over a 10% holding in the company, and was a founder at Aon before.
Medpace Holdings (-6.6%) – Shares came back slightly after a fantastic 2025 for Medpace, with the price up c.70% following a series of strong operational and financial results.
Advanced Drainage Systems (-6.3%) – A similar story to Medpace with December being a slight decline after a strong year. Beyond the strong company specific updates, both companies are sensitive to interest rate dynamics which can move the shares month to month.

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 31.12.25, 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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DISCLAIMER

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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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