European Equity Income - February Commentary
Nick Edwards Portfolio Manager, European Equity Income
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Will James Portfolio Manager, European Equity Income
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.
In January the Guinness European Equity Income Fund returned +6.3% in GBP, underperforming the MSCI Europe ex UK Index return of +8.2% by 1.9 percentage points. Index performance over the month was led by a rebound in leveraged and high-multiple sectors including luxury, banks and tech, to which the Fund overall has an underweight exposure. Further performance data is shown below.
With Europe ex UK valuations closing 2024 around record lows vs the US even on a sector-adjusted basis excluding the Magnificent 7, the mere absence of negative news, notably around tariffs, was enough to drive European markets sharply higher in January.
A major source of volatility in January was the emergence of DeepSeek as a rival to the US-based AI leaders. In the context of high US valuations, it certainly seems worth reminding ourselves of how different Europe looks in terms of sector exposure.
Source: MSCI, Bloomberg. Data as of 31.01.2025
In respect of tariffs, we think the Fund is well placed, holding none of the areas traditionally associated with trade tariffs based on the shipment of goods from Europe to America, including no holdings in steel, auto makers, luxury goods or spirits. Around one third of the Fund has no meaningful US sales at all, while the 29% of fund revenues that stem from the US are primarily driven by decentralised companies which both produce and market their products and services there and as such should be beneficiaries of tax cuts.
In this commentary linked below, we consider how the Fund and Europe stand when it comes to tariffs and the background in terms of equity valuations and European politics. We also report on the leading and lagging stocks among our 30-stock portfolio.
Past performance does not predict future returns
Fund launch: 19.12.2013
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 European Equity Income
Guinness European 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 European Equity Income Funds are designed to provide investors with exposure to high-quality dividend-paying companies in the Europe ex UK region. The Funds aim to provide capital appreciation and a source of income that has the potential to grow over time. The Funds are actively managed and use the MSCI Europe ex UK Index as a comparator benchmark only.
Guinness European Equity Income Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Key Information Document (KID) / 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 or,
- the Promoter and Investment Manager: Guinness Asset Management Ltd, 18 Smith Square, London SW1P 3HZ.
Waystone IE is a company incorporated nder 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.
Investor Rights
A summary of investor rights in English is available here: https://www.waystone.com/waystone-policies/
Residency
In countries where the Funds are not registered for sale or in any other circumstances where their distribution is not authorised or is unlawful, the Funds should not be distributed to resident Retail Clients. NOTE: THIS INVESTMENT IS NOT FOR SALE TO U.S. PERSONS.
Structure & Regulation
The Funds are sub-funds 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 Funds have been approved by the Financial Conduct Authority for sale in the UK. If you are in any doubt about the suitability of investing in these Funds, please consult your investment or other professional adviser.
WS Guinness European Equity Income Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Key Investor Information Document (KIID) and the Application Form, is available in English from https://www.waystone.com/our-funds/waystone-fund-services-uk-limited/ or free of charge from:-
Waystone Management (UK) Limited, PO Box 389, Darlington DL1 9UF.
E-Mail: investorservices@linkgroup.co.uk
Waystone Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.
Residency
In countries where the Fund is not registered for sale or in any other circumstances where its distribution is not authorised or is unlawful, the Fund should not be distributed to resident Retail Clients.
Structure & regulation
The Fund is a sub-fund of WS Guinness Investment Funds, an investment company with variable capital incorporated with limited liability and registered by the Financial Conduct Authority.