Guinness Global Equity Income Class Y GBP Accumulation
Global Equity Income
Rated Fund 2013-2015, 2017-2018. Focuses on quality rather than yield
Guinness Global Equity Income was reintroduced to the list last year after a strong 2016. Its performance dipped again in 2017, though we hope this proves to be a temporary setback.
Ian Mortimer and Matthew Page, its managers since launch in 2010, have a very clear investment approach. They differentiate their fund from peers on account of a focus on quality businesses rather than yield, and a portfolio that equally weights 35 such stocks. Although their fund's objective is to provide income, their starting point is to identify well-run, profitable businesses, rather than just looking for companies with high dividend yields. They want companies that will deliver good long-term returns.
Their first step is to find all companies globally that have achieved a 10 per cent return on capital in every year over the last decade. After applying additional financial thresholds, they are left with a pool of around 500 companies from which to build their portfolio. Despite deliberately ignoring dividend yield, they find their screening identifies many high-yielding companies. From among the screened companies they build a concentrated portfolio of equally weighted stocks.
They say this approach has several advantages. It reduces stock-specific risk as they cannot be overweight in a small number of favourite companies. They cannot run a portfolio with a long tail of small holdings. And it also instils a strong sell discipline, as they must typically sell a position to make way for a new one, so they constantly assess the companies they own relative to the rest of their universe.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Japan Tobacco Inc||3.63 %|
|British American Tobacco PLC||3.39 %|
|WPP PLC||3.24 %|
|Reckitt Benckiser Group PLC||2.93 %|
|Hengan International Group Co Ltd||2.92 %|
|ANTA Sports Products Ltd||2.90 %|
|Deutsche Boerse AG||2.88 %|
|BAE Systems PLC||2.87 %|
|Royal Dutch Shell PLC Class A||2.86 %|
|Procter & Gamble Co||2.86 %|
|United States||41.34 %|
|United Kingdom||24.10 %|
|Asia - Emerging||5.99 %|
|Europe - ex Euro||5.60 %|
|Consumer Defensive||27.31 %|
|Financial Services||13.78 %|
|Consumer Cyclical||9.19 %|
Matthew Page is a co-manager of the Global Innovators Fund (since May 2010) and the Dividend Builder FundTM (since March 2012). Previously, he also served as co-manager of the Alternative Energy Fund (February 2007to April 2013). He joined Guinness AtkinsonTM in September 2005, prior to which he was employed by Goldman Sachs from July 2004 to August 2005. He graduated from Oxford University with a Masters in Physics in June 2004.
Dr. Ian Mortimer is a co-manager of the Global Innovators Fund (since May 2011) and the Dividend Builder Fund TM (since March 2012). Previously, he also served as co-manager of the Global Energy Fund (May 2010 to September 2013). He joined Guinness AtkinsonTM as an analyst in December 2006. From September 2003 to December 2006, Dr. Mortimer completed a PhD in experimental physics at the University of Oxford between September 2003 and November 2006. Dr. Mortimer graduated from University College London with a Masters in Physics in June 2003.
Data provided by Morningstar.
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