Global Equity Income - February Commentary
Dr Ian Mortimer Portfolio Manager, Global Team
/
Matthew Page Portfolio Manager, Global Team
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 Global Equity Income Fund produced a total return of 3.9% (in GBP), compared to the MSCI World Index return of 4.4% and the IA Global Equity Income sector average return of 5.0%. The Fund therefore underperformed the Index by 0.5 percentage points and its peer group average by 1.1 percentage points. Further performance data is shown below.
Markets had an eventful start to the year with the inauguration of President Trump, a jolt to the technology sector following the emergence of Chinese AI company DeepSeek, and the looming threat of tariffs on global trade. Against this backdrop of uncertainty, equities produced broadly positive returns and markets rotated away from Growth towards more Value-oriented areas of the market.
The Fund’s overweight to Consumer Staples acted as a headwind, as the sector underperformed the benchmark. Weakness in Diageo and Mondelez due to ongoing supply chain issues and the looming threat of tariffs was a further drag. Further, the Fund’s underweight allocation to Communication Services acted as a detractor to performance as the sector was the top performer, returning +8.8% over the month. However, the Fund benefited from an underweight allocation to IT as the sector saw weaker performance, while Fund holding TSMC outperformed.
DeepSeek's emergence and the potential for lower AI training costs are subject to a wide range of interpretations. The main impact may simply be a value creation shift away from the ‘AI enablers’ (those that provide the foundational AI infrastructure) towards the ‘AI integrators’ (those that provide software, applications and services built on top of that infrastructure). The hyperscalers are still planning to invest large amounts on AI infrastructure, judging by recent earnings releases and their capital expenditure plans:
Source: Bloomberg; as of 31st January 2025
Note: Data takes consensus estimates until the end of January 2025. Expectations have shifted at time of writing given earnings reports in early February
In the commentary linked below, we summarise the DeepSeek developments, the market reaction, and the implications for Fund holdings with AI exposure.
Past performance does not predict future returns
Fund launch: 31.12.2010
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 Global Equity Income
Guinness Global 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 Global Equity Income Funds are designed to provide investors with global exposure to dividend-paying companies. The Funds are managed for income and capital growth and invest in profitable companies that have generated persistently high return on capital over the last decade, and that are well placed to pay a sustainable dividend into the future. The Funds are actively managed and use the MSCI World Index as a comparator benchmark only.
Guinness Global Equity Income Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Supplement, 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.
Investor Rights
A summary of investor rights in English is available here: https://www.waystone.com/waystone-policies/
Residency
In countries where the Fund is not registered for sale or in any other circumstances where their distribution is not authorised or is unlawful, the Fund should not be distributed to resident Retail Clients. NOTE: THIS INVESTMENT IS NOT FOR SALE TO U.S. PERSONS.
Structure & Regulation
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.
If you are in any doubt about the suitability of investing in these Funds, please consult your investment or other professional adviser.
WS Guinness Global Equity Income Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Supplement, 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 Fund Services (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.