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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.
- Although European markets declined in euro terms during June, they were supported by stronger economic data and increased clarity around the monetary policy outlook.
- Within the long book, Wartsila continued its strong momentum into June, while Spotify and Kongsberg Gruppen also delivered robust performances.
- Renault was the largest detractor during the month, impacted by the departure of its CEO. Inditex was also among the notable underperformers following a slowdown in first quarter sales.
The Fund’s A4 share class returned -1.5%* in euro terms in June. The Fund’s comparator benchmarks, the MSCI Europe Index and HFRX Equity Hedge EUR Index, returned -1.3% and 1.2% respectively.
European markets were supported by stronger economic data in June and a clearer path for monetary policy. The European Central Bank delivered a widely expected 25 basis point rate cut – its eighth cut since mid-2024 – signalling a continued commitment to support flagging growth amid receding inflationary pressure.
Beyond Europe, the global backdrop was shaped by a robust rally in US equities, as the S&P 500 continued its strong performance to post its strongest quarterly gain since late 2023. Markets responded positively to better-than-expected US job numbers, even as the Fed opted to keep rates on hold amid lingering inflation concerns.
The top-performing sector for the month was energy (+3.0%), followed by utilities (+1.4%) and industrials (+1.1%). On the weaker end, consumer staples (-5.6%) and consumer discretionary (-4.3%) saw the largest declines.
While the long book on average outperformed the market’s rise, the Fund’s short book (c.36% NAV) performance was negative due to some large gainers.
Wartsila (+16%), a leading provider of technologies and lifecycle solutions for the marine and energy sectors, extended its strong performance despite the absence of any major news during the month. The rally appears to be a continuation of momentum generated by its impressive Q1 2025 results released in April. The company reported an 18% increase in net sales to €1.56 billion, a 29% rise in comparable operating profit to €171 million, and a 17% expansion of its order book, which reached €8.53 billion.
Spotify (+14%), the audio streaming giant, was one of the standout performers in the month, extending its strong year-to-date rally. The company benefited from a wave of analyst optimism, receiving multiple ratings upgrades and increased price targets, which further fuelled investor confidence.
Kongsberg Gruppen (+8.0%) major contract with Germany for the delivery of Joint Strike Missiles (JSM) to equip its fleet of F-35 fighter jets. This high-profile agreement further underscored Kongsberg’s strength in the global defence market.
French carmaker Renault (-14%) was the leading long book detractor in June, declining after announcing the departure of its CEO.
Industria de Diseno Textil (-7.4%) posted a 1.5% increase in first-quarter sales to €8.27 billion, falling short of analyst forecasts. The slowdown marks a sharp deceleration from the 7% growth recorded in the same period last year, as the fast-fashion giant grapples with a more cautious consumer backdrop. The Spanish retailer cited cooler weather in key markets like Spain – which contributes around 15% of global sales – and persistent economic uncertainty as factors weighing on performance.
Short book detractors included a British scientific instrument maker which announced it had accepted a takeover bid from a US private equity firm, while a US battery manufacturer for electric vehicles moved higher after announcing that it had made progress in the production of solid-state batteries.
Discrete years' performance (%) to previous quarter-end**:
| Jun-25 | Jun-24 | Jun-23 | Jun-22 | Jun-21 |
Liontrust GF European Strategic Equity A4 Acc EUR | 6.3% | 15.4% | 7.6% | 28.9% | 28.2% |
MSCI Europe | 6.8% | 14.8% | 3.8% | 9.3% | 35.3% |
HFRX Equity Hedge EUR | 2.9% | 7.7% | -4.6% | 7.9% | 22.3% |
| Jun-20 | Jun-19 | Jun-18 | Jun-17 | Jun-16 |
Liontrust GF European Strategic Equity A4 Acc EUR | -13.9% | 4.2% | 0.3% | 10.7% | -1.1% |
MSCI Europe | -13.5% | 5.5% | -0.4% | 16.9% | -13.7% |
HFRX Equity Hedge EUR | -11.3% | -7.8% | 5.8% | 4.0% | -8.2% |
*Source: Financial Express, as at 30.06.25, total return (income reinvested and net of fees).
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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 will 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.
- The Fund’s volatility limits are calculated using the Value at Risk (VaR) methodology. In high interest rate environments the Fund’s implied volatility limits may rise resulting in a higher risk indicator score. The higher score does not necessarily mean the Fund is more risky and is potentially a result of overall market conditions.
- Credit Counterparty Risk: the Fund uses derivative instruments that may result in higher cash levels. Outside of normal conditions, the Fund may choose to hold higher levels of cash. Cash may be deposited with several credit counterparties (e.g. international banks) or in shortdated bonds. A credit risk arises should one or more of these counterparties be unable to return the deposited cash.
- 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.
