Emerging Markets Equity Income - February Commentary
Edmund Harriss Director, Chief Investment Officer, Portfolio Manager
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Mark Hammonds Portfolio Manager, Asian & Emerging Markets
This is a marketing communication. Please refer to the prospectus, supplement and KID/KIID for the Funds before making any final investment decisions. The value of this investment can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you invested.
Past performance does not predict future returns.
Emerging markets began the year on a positive note. The MSCI Emerging Markets Index rose 2.6% (in GBP) in January, and despite the market strength, the fund outperformed, rising 2.8%. Further performance data is shown below.
Emerging markets underperformed developed markets in the month, but all emerging market regions were positive. Latin America was the best performer, recovering after a difficult end to last year, up 10.1%. Asia was the weakest performer, up just 1.3%.
Trade has once again come into the spotlight as tariffs and the threat of tariffs are used to exert political leverage. The market has responded, mainly through movements in foreign currencies.
Largely, the low valuations on offer to those investing in emerging markets compensate for the additional uncertainty that turbulent trading relationships bring. If we are right that investors are too pessimistic, and that sentiment is like an elastic band that has stretched too far, the setup for this year looks very interesting. Some good news, such as further China stimulus, could be enough for valuations to snap back to higher levels.
In this commentary we review updates from our portfolio holdings and consider the impact of the new US administration on the outlook for emerging markets.
Past performance does not predict future returns
Fund launch: 23/12/2016.
The value of this investment can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you invested.
Learn more about Guinness Emerging Markets Equity Income
Guinness Emerging Markets Equity Income
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The information provided on this page is for informational purposes only. While we believe it to be reliable, it may be inaccurate or incomplete. Any opinions stated are honestly held at the time of publication, but are not guaranteed and should therefore not be relied upon. This content should not be relied upon as financial advice or a recommendation to invest in the Funds or to buy or sell individual securities, nor does it constitute an offer for sale. Full details on Ongoing Charges Figures (OCFs) for all share classes are available here.
The Guinness Emerging Markets Equity Income Fund is designed to provide investors with exposure to high-quality dividend-paying companies in Emerging Markets worldwide. The Fund aims to provide long-term capital appreciation and a source of income that has the potential to grow over time. The Fund is actively managed and uses the MSCI Emerging Markets Index as a comparator benchmark only
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The documentation needed to make an investment, including the Prospectus, the Key Investor Information Document (KIID) and the Application Form, is available from the website www.guinnessgi.com , or free of charge from:
- the Manager: Waystone Management Company (IE) Limited, 2nd Floor 35 Shelbourne Road, Ballsbridge, Dublin DO4 A4E0, Ireland; or
- the Promoter and Investment Manager: Guinness Asset Management Ltd, 18 Smith Square, London SW1P 3HZ.
Waystone IE is a company incorporated under the laws of Ireland having its registered office at 35 Shelbourne Rd, Ballsbridge, Dublin, D04 A4E0 Ireland, which is authorised by the Central Bank of Ireland, has appointed Guinness Asset Management Ltd as Investment Manager to this fund, and as Manager has the right to terminate the arrangements made for the marketing of funds in accordance with the UCITS Directive.
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The Fund is a sub-fund of Guinness Asset Management Funds PLC, an open-ended umbrella-type investment company, incorporated in Ireland and authorised and supervised by the Central Bank of Ireland, which operates under EU legislation. The Fund has been approved by the Financial Conduct Authority for sale in the UK.
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