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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.
- April was an extremely volatile month for global equity, bond and currency markets due to US tariff announcements
- The portfolio is a collection of high quality companies with strong balance sheets run by long-term oriented management teams, and outperformed on a relative basis
- Two portfolio holdings received takeover bids during the month
The Liontrust Global Smaller Companies Fund returned -0.7% in April, compared with the -2.4% return of the MSCI ACWI Small Cap Index and an average return of -1.9% in the IA Global sector, its comparator benchmarks.
Global equity markets were volatile in April as US tariff announcements earlier in the month led to heightened uncertainty and a sharp fall in risk appetite. Confidence in the US economy has fallen quickly, with consumer sentiment and corporate spending falling, and the risk of a US recession increasing. US long bond yields increased, perhaps prompting a softening of the trade policy position since early April, and the US dollar – typically a safe haven asset – weakened. Despite still high levels of uncertainty following a 90-day ‘pause’ ahead of any further broad tariff actions, trade negotiations throughout the remainder of April led to a broad rally in equities.
Our approach focuses on businesses with wide competitive moats, strong balance sheets, aligned management, high margins, pricing power, and healthy cash generation. Consequently, our portfolio outperformed the market during the month, as more operationally and financially leveraged companies fared worse in the risk-off environment. Additionally, two of our portfolio companies received takeover bids.
Top contributors:
- Andlauer Healthcare (+38%), which operates the largest supply chain logistics network in Canada for the Life Sciences and Healthcare sectors, was the subject of a takeover bid from US logistics company UPS. The shares have rallied close to the price offered.
- Cellavision (+22%) reported a very strong set of quarterly results which beat all expectations.
- GlobalData (+20%) was the subject of a preliminary takeover proposal from two private equity firms (KKR and ICG), who now have until 28 May 2025 to make a formal offer.
Largest detractors:
- Aris Water (-25% total return in sterling terms). The company has a network of approximately 790 miles of pipeline, providing water services to companies in Texas, enabling oil well operators to save costs compared to trucking options for water handling and recycling. Given the increased likelihood of recession in 2025 due to US trade policy impacts, the oil price (WTI, in USD) has fallen below $60 and with it expectations for drilling activity, which will impact demand for water in the Permian Basin.
- Atlas Energy Solutions (-27%). Atlas is the largest (and lowest cost) provider of oil and gas proppant used to seal fractures in drilled wells to ensure optimal flow, is also linked to drilling activity in the Permian, and fell due to a lower oil price and drilling activity expectations.
- Ryan Specialty (-14%). The second largest Excess & Supply insurance broker in the USA fell in April as Aon reported worse-than-expected quarterly organic growth numbers, and most of the sector fell on the news as the read-across is potential slowing growth more broadly in the industry. However, Ryan Specialty has since reported quarterly results in early May which beat organic growth expectations.
Discrete years' performance* (%) to previous quarter-end:
| Mar-25 | Mar-24 | Mar-23 | Mar-22 | Mar-21 |
Liontrust Global Smaller Companies C Acc | -11.7% | 26.3% | -10.0% | 1.8% | 48.5% |
IA Global | -0.3% | 16.7% | -2.6% | 8.4% | 40.6% |
MSCI ACWI Small Cap | -2.6% | 14.0% | -3.7% | 4.4% | 63.6% |
Quartile Ranking | 4 | 1 | 4 | 4 | 2 |
* Source: FE Analytics, as at 31.03.25, 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.
- 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.
