UK-based investment firm Liontrust has launched the Liontrust GF European Smaller Companies Fund, domiciled in Ireland.
The long-only fund is managed by James Inglis-Jones and Samantha Gleave of the Liontrust Cashflow Solution team.
It invests primarily in pan-European smaller companies, most of them having a market capitalisation of less than €5bn at inception.
The strategy is benchmarked against the MSCI Europe Small Cap Index. All stocks in the portfolio are equally weighted.
The fund relies on the Cashflow Solution investment process, based on the belief that the most important determinant of shareholder returns is company cash flows.
The Liontrust Cashflow Solution team invests in companies generating strong cash returns from their capital, appearing cheap on those cash flows, and that are run by managers committed to an intelligent use of capital.
The fund avoids companies run by aggressive company managers making large cash investments to chase their growth forecasts.
Commenting on the launch, Liontrust’s co-head of International Sales James Beddall said: “We are launching the Liontrust GF European Smaller Companies Fund in response to client demand. This has been prompted by the track record that James and Samantha have built up investing in European Smaller Companies through the institutional mandates they have been running.
“The investment process is differentiated from other funds in the sector and we believe it is particularly effective when investing in mid and small caps.”
The fund will be registered for sale in the following jurisdictions: Ireland, UK, Germany, Austria, Spain, France, Italy, the Netherlands, Luxembourg, Switzerland, Guernsey and Finland.