Global Equity Income - January 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. Past performance does not predict future returns.
In 2024 the Guinness Global Equity Income Fund produced a total return of 14.6% (in GBP), compared to the MSCI World Index return of 20.8%. The Fund therefore underperformed the Index by 6.2 percentage points.
The IA Global Equity Income Sector returned 11.0%, therefore the Fund outperformed its peer average by 3.6 percentage points. Further performance data is shown below
Since launch, 14 years ago, the Fund ranks 2nd out of 13 Funds in the IA Global Equity Income sector. It has produced a cumulative total return of 345.8% (GBP) compared to the sector average of 212.8% – an outperformance of 133.0 percentage points. The Fund has outperformed its sector peers in 12 of the 14 years the Fund has been in existence and has provided positive returns in each of the last 14 years.
2024 was marked by significant market turbulence amid a complex economic and geopolitical environment. Despite these challenges, global equities posted impressive gains. The macroeconomic landscape was defined by persistent inflationary pressures, escalating trade tensions, and a series of rate cuts after the aggressive rate-hiking cycle of previous years. In parallel, geopolitical developments, such as ongoing conflict in Ukraine and the Middle East added layers of complexity. That said, resilience emerged as the prevailing theme. The transformative potential of Artificial Intelligence continued to captivate investor sentiment, fuelling gains in technology stocks and associated areas including the so called ‘AI-enablers’ and other ‘AI-integrators. However, over the final parts of the year, sentiment turned cautious as a result of a hawkish tone set by Fed Chair Jerome Powell during the last FOMC meeting which signalled a slower pace of rate cuts in 2025. This led to a more reserved investor outlook, as market participants weighed the implications of slower monetary easing as well as the potential impacts of the incoming US administration.
Source: MSCI, data as of 31st December 2024
We think the year can be defined more broadly by 6 distinct periods of equity performance. We go into each of these periods in more detail in the report.
As we look ahead to 2025, we are confident that the companies we own in the Fund will continue to navigate the changing macroeconomic environment, as has been the case in previous years . We believe that focusing on the high-quality businesses that have shown the ability to perform over numerous economic cycles provides the Fund with a good balance and helps to mitigate against some of these downside risks. We also note that the defensive nature of the portfolio – which has outperformed in all market corrections since launch in 2010 – gives us confidence heading into 2025. Additionally, we believe the holdings we have selected in the Fund remain robust and our perpetual approach of focusing on quality compounders and dividend-growers should continue to stand us in good stead in our search for rising income streams and long-term capital growth.
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.