London-based fund manager Guinness Asset Management is delighted to announce that its Guinness Global Equity Income Fund has now passed £100 million in size. Strong momentum in Guinness’s global funds Guinness launched the Fund on the 31st December 2010, and first marketed it actively in 2012, achieving steady growth in assets ever since. From £16 million at the end of 2012, the Fund grew to £48 million at end of 2013, £67 million in 2014 before passing £100 million by April this year.
This growth comes on the back of strong performance in its peer group. Since launch in December 2010, the Fund is 3rd out of 20 funds in the IA Global Equity Income sector, and one of only four funds to have beaten the MSCI World Index.
“We’re pleased with the performance of the Fund,” says co-manager Matthew Page, CFA. “It’s doing what we designed it to do, which is hold its own in rising markets and deliver good protection in falling markets. With steady dividend growth too – that’s much more important to us than the size of its yield.” The Fund has grown its total dividend every year at an average rate of 4.6% (versus CPI of 1.9%).
“And we’re delighted that our performance is being recognised by investors,” adds co-manager Ian Mortimer. “It’s well documented in the press that it’s getting harder for small fund groups to raise assets and get funds up to scale in popular, competitive sectors. So it’s encouraging to see our track record starting to get the recognition we think it deserves.”
As well as their Global Equity Income Fund, Page and Mortimer have also run a global growth strategy since 2010. Until recently, this Global Innovators strategy was only available to US investors through Guinness’ sister US fund house Guinness Atkinson Asset Management. The US version is the best performer in its Lipper Global Multi-cap growth category over ten years, 3rd out of 416 over five years and 4th out of 469 over three years.
In October last year Guinness launched a version of this top performing strategy in their Dublin OEIC: Guinness Global Innovators Fund has now reached £31 million in size. This Fund sits in the IA Global sector; using its longer US history in that sector’s rankings, the Fund would be 1st out of 129 over ten years, 6th out of 203 over five years and 6th out of 238 over three years.
The combined total assets in Page and Mortimer’s two global strategies have now reached £284 million, up from just £80 million in January last year.
Guinness Global Equity Income Fund – rigorous investment process
Page and Mortimer apply a particularly rigorous stock screening approach in defining the investment universe for their Global Equity Income portfolio. “To be considered for investment companies must deliver ten consecutive years of top quartile return on capital. That’s a big ask,” says Page. “With this criteria as our starting point we identify many well-known blue-chip companies, but we also find a broad spectrum of smaller companies that are outside of the traditional dividend-paying regions and sectors.”
“Yield isn’t our filter, and nor is it our primary objective. Quality and value are paramount, giving us the combination of steady capital and dividend growth that we aim to deliver,” says Mortimer. “We maintain a high conviction portfolio of around 35 equally-weighted stocks, with low turnover and no benchmark-driven constraints on sector and regional weightings.”
Guinness Global Equity Income Fund is available at a 0.50% AMC (maximum OCF 0.99%), with distribution and accumulation share classes in GBP, USD and EUR.
(Past performance should not be taken as an indicator of future performance. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations; you may not get back the amount originally invested).