Guinness Global Equity Income Class Y GBP Accumulation

Global Equity Income

Rated fund 2013-15, 2017-19. Focuses on quality rather than yield

Guinness Global Equity Income is a longstanding feature of our Rated Funds, despite a one-year break in 2016 owing to a dip in performance. It has beat the sector average over one, three and five years, significantly so over the past year, suggesting we were right to reinstate it. It yields 2.7% with income paid half-yearly.

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 stocks.

Although their fund’s objective is to provide income, their starting point is to identify well-run, pro table 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% 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.

They build a concentrated portfolio of 35 equally-weighted stocks. 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 must constantly assess the companies they own relative to the rest of their universe.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Guinness Global Equity Income Class Y GBP Accumulation
Manager
Guinness Asset Management Limited
Type
Open Ended Investment Company
ISIN
IE00BVYPNY24
Sector
Global Equity Income
Launched
11/03/2015
OCF
0.98 %
Risk Rating
3
3 Year Sharpe
1.25
3 Year Alpha
2.18
Yield
0 %
Benchmark
MSCI World NR USD
The investment objective of the Fund is to provide investors with both income and long-term capital appreciation.
Holding %
Aflac Inc 3.03 %
ANTA Sports Products Ltd 3.01 %
Nestle SA 2.94 %
Roche Holding AG Dividend Right Cert. 2.94 %
CME Group Inc Class A 2.94 %
Deutsche Boerse AG 2.90 %
BlackRock Inc 2.89 %
Schneider Electric SE 2.88 %
Eaton Corp PLC 2.88 %
Procter & Gamble Co 2.87 %
Region %
United States 43.48 %
United Kingdom 19.50 %
Eurozone 11.72 %
Europe - ex Euro 9.06 %
Asia - Emerging 5.90 %
Sector %
Consumer Defensive 25.33 %
Industrials 20.05 %
Financial Services 15.17 %
Healthcare 14.42 %
Technology 11.23 %
Consumer Cyclical 8.74 %
Name
Guinness Asset Management Limited
Address
SW1H 9AA, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Matthew Page
Joined 12/31/2010

Matthew joined Guinness Asset Management in 2005 and is the co-manager of the Guinness Global Equity Income Fund, the Guinness European Equity Income Fund and the Guinness Global Innovators Fund. Prior to starting at Guinness, Matthew joined Goldman Sachs on the graduate scheme in 2004 working in Foreign Exchange and Fixed Income. Matthew graduated from New College, University of Oxford with a Master's Degree in Physics. He has completed the IMC and is a CFA charterholder.

Ian Mortimer
Joined 12/31/2010

Ian joined Guinness Asset Management in December 2006 and is co-manager of the Guinness Global Equity Income Fund, the Guinness European Equity Income Fund and the Guinness Global Innovators Fund. Prior to joining Guinness, Ian completed a D.Phil. in experimental physics at Christ Church, University of Oxford, and graduated in 2006. Ian graduated from University College London, University of London, with a First Class Honours Master's degree in Physics in 2003. He has completed the IMC and is a CFA charterholder.

Data provided by Morningstar.

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