Global Equity Income - 2026 Outlook
Portfolio Manager, Global Team
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.
2025 was marked by significant turbulence but positive returns, driven by the onset of tariffs, renewed geopolitical tensions and market worries over an AI bubble. Volatility was pronounced across asset classes, with dollar weakness also contributing. However, markets rallied sharply in the second half of the year on the prospects of fiscal and monetary stimulus, and the MSCI World Index had a third year of double-digit returns.
As a factor, quality suffered a rare year of underperformance relative to MSCI World. High-quality stocks lagged amid enthusiasm for unprofitable tech – which we do not own in the Fund – and the outperformance of value in Europe, and especially banks, which don’t meet our quality criteria. This challenged performance relative to the benchmark and the peer group.
Source: MSCI; data as of 31 December 2025
At present, the Fund trades at a 5% valuation discount to the broader market (with a one-year forward price-earnings ratio of 19.0, vs 20.0 for the index), despite maintaining superior quality characteristics, such as return on capital and a higher dividend yield. Market performance in 2025 was notably concentrated, and valuations for the broader index are elevated vs. history, particularly amid the continued strong performance of US tech stocks trading at premium valuations. We therefore believe the Fund is well placed to withstand a change in sentiment or an increase in market volatility, given its diversified portfolio of high-quality, durable businesses trading at reasonable valuations.
Our review of 2025 covers Fund performance through the year as these dynamics played out, and the six key themes of the year for equities, including the underperformance of quality in its longer-term context. We also report on changes to the portfolio and our company engagement and proxy voting activity.
Looking ahead to the outlook for 2026, we revisit the case for Consumer Staples stocks and the names we hold with superior quality characteristics and attractive valuations. We lay out our portfolio positioning and its drivers, and report on some metrics for the key tenets of the strategy – quality, value, dividend, and conviction. Further to our commentary last month on the opportunities presented by quality in the year ahead, we conclude with some thoughts on our approach to building a resilient portfolio that can weather different economic environments.
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.
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.
For the avoidance of doubt, if you decide to invest, you will be buying units/shares in the Fund and will not be investing directly in the underlying assets of the Fund
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, including collective redress mechanisms, 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: wtas-investorservices@waystone.com
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.
This Fund is registered for distribution to the public in the UK but not in any other jurisdiction. In other countries or in circumstances where its distribution is not authorised or is unlawful, the Fund should not be distributed to resident Retail Clients.