287. The ‘Cashflow Champions’ of Europe

Samantha Gleave, co-manager of Liontrust European Dynamic, discusses the fund's investment process, including how a company can qualify for its 'cashflow champions' watch list. The interview also touches on the importance of the macroeconomic environment, concerns related to energy prices, the impact of recession in Germany and why the fund is tilting towards value. She concludes with a balanced outlook on European equities, while also highlighting opportunities at the stock level in names likes Novo Nordisk, Inditex and Partners Group.
Apple Podcast Spotify Podcast

The Liontrust European Dynamic fund is a concentrated portfolio with 30-40 holdings, emphasising robust cash flows as the primary driver of returns from European companies. Its exceptional long-term performance is attributed to a collaborative, rigorous process and a flexible investment style that can pivot between value and growth based on market opportunities.

What’s covered in this episode: 

  • What is the Cashflow Solutions process?
  • Why the fund is tilting towards value
  • Are there concerns about Europe’s gas supply this year?
  • Will Germany bounce back from recession quickly?
  • Does the team prefer one country over the other in Europe?
  • The strong momentum of Inditex
  • The investment case for private equity business Partners Group
  • Outlook for European equities in 2024
  • The importance of positive stock news, highlighting Novo Nordisk
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.