View the latest insights from the Global Equities team.
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 highlights
- Micron Technology and Alphabet among top contributors as Fund outstrips rise in US market.
- New positions include Marvell, Capstone Copper and Freeport-McMoran.
- With broadening equity leadership and improved global macro stability, we believe the environment remains highly conducive to active, globally diversified stock selection.
Performance
The Liontrust US Opportunities Fund returned 4.6%* in sterling terms over the quarter, compared with the 2.4% return from the MSCI USA Index and 2.2% average return in the IA North America sector, its comparator benchmarks.
| 1m | 3m | 6m | YTD | 1yr | 3yr | 5yr | Since inception | |
| Liontrust US Opportunities C Acc | -0.6% | 4.6% | 17.2% | 13.4% | 13.4% | 53.9% | 63.5% | 452.4% |
| MSCI USA | -1.5% | 2.4% | 12.6% | 9.2% | 9.2% | 65.3% | 90.4% | 567.3% |
| IA North America | -1.1% | 2.2% | 10.5% | 7.0% | 7.0% | 52.2% | 72.5% | 452.5% |
| Quartile | 2 | 1 | 1 | 1 | 1 | 3 | 3 | 3 |
Source: FE Analytics, as at 31.12.25, total return, net of fees and income reinvested.
Commentary
Market backdrop
Global equity markets continued their upward trajectory, supported by strong corporate earnings and a more accommodative monetary policy stance from major central banks. Leadership shifted away from US mega‑caps and toward European and broader international markets.
The MSCI World Index rose 3.2% in US dollar terms, while the MSCI World ex‑US gained 5.3%, marking a significant broadening of global equity market participation.
In the US, equity performance was more muted. Sector rotation favoured financials over defensives such as utilities and real estate. Macroeconomic data indicated moderating inflation and softer labour conditions, reinforcing expectations of a soft landing following the Fed’s dovish pivot. The Federal Reserve delivered its second and third rate cuts of 2025, lowering the target range to 3.50–3.75%.
Portfolio review
Micron Technology’s (+71%) quarterly results included better-than-expected revenue as the memory chip-maker experienced a continuation of high AI-related demand. The company flagged that the supply/demand imbalance is likely to persist for some time, benefitting pricing.
Other key contributors included Alphabet (+29%), re-ratingon strong advertising trends and ongoing margin expansion, Expedia (+33%), following strong bookings and renewed cost discipline and Barrick Mining (+34%), which benefitted from gold price strength and operational improvements.
Alibaba (-18%), following a 110% rally to end September, declined in Q4, driven by some renewed investor caution over China’s regulatory environment and geopolitical risks. Uber (-17%) also fell on profit-taking and concerns over mobility pricing weighed on performance. Netflix (-4.4%) fell as it missed earnings due to an unexpected $600 million Brazilian tax dispute resolution, while Coinbase (-33%) was exposed to a pullback in crypto beta trades.
Portfolio changes
We added a new position in Marvell after Amazon’s Q3 results confirmed strong Trainium 2/3 (custom AI chips) demand which is key for Marvell. Coupled with strong capex guidance from the other hyper scalers over results season, this has given us renewed confidence in Marvell’s ability to exceed current market estimates for growth.
The portfolio’s materials sector exposure was lifted during the quartet through the addition of Capstone Copper and Freeport-McMoRan. Copper demand/supply is expected to remain very tight, leading to the expectations of continued upside price pressure; both companies offer greater portfolio exposure to copper.
Outlook
We enter 2026 with a constructive but balanced view. Global equities ended 2025 on strong footing, supported by easing inflation, clearer monetary policy direction and broadening market participation outside the US mega‑cap complex. December data reinforced expectations of a soft landing, with moderating inflation and cooling labour conditions across major developed markets.
Key thematic drivers for the year ahead include:
- AI diffusion beyond mega‑caps, favouring semiconductor supply chains, automation, and software platforms that enable operational productivity.
- Commodity and defence‑related demand, supported by heightened geopolitical risk and shifting global industrial policy.
We remain mindful of risks heading into early 2026, including policy divergence across central banks, geopolitical uncertainties, and potential volatility as investors recalibrate expectations for rate‑cut velocity and corporate earnings growth. Nonetheless, with broadening equity leadership and improved global macro stability, we believe the environment remains highly conducive to active, globally diversified stock selection.
Discrete years' performance (%)* to previous quarter-end:
| Dec-25 | Dec-24 | Dec-23 | Dec-22 | Dec-21 |
Liontrust US Opportunities C Acc | 13.4% | 16.7% | 16.3% | -16.8% | 27.7% |
S&P 500 Index | 9.3% | 26.7% | 18.6% | -8.2% | 29.3% |
IA North America | 7.0% | 22.0% | 16.7% | -9.7% | 25.5% |
| Quartile | 1 | 3 | 3 | 4 | 2 |
* Source: FE Analytics, as at 31.12.25, total return, net of fees and income reinvested.
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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.
- 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.
