Global Equity Income - April Commentary

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 the first quarter of 2025, the Guinness Global Equity Income Fund returned -0.5% (in GBP), the MSCI World Index returned -4.7%, and the IA Global Equity Income sector average return was 0.3%. The Fund therefore outperformed the Index by 4.2 percentage points over Q1 and underperformed its peer group average by 0.8 percentage points. Further performance data is shown below.

It was a difficult start to the year for global equities. While the MSCI World fell a modest -1.8% in USD terms, there were periods of pronounced volatility and a sharp divergence between the market winners (including value, Europe, and the UK) and losers (growth and AI stocks, and the US market). A key driver was uncertainty in American domestic and foreign policy and a substantial escalation in trade tensions, which, as we write, is playing out in dramatic fashion.

Over the quarter, the Fund’s outperformance was driven by its exposure to Consumer Staples, Industrials and Healthcare stocks, as all sectors posted positive gains despite the index declining, while an underweight to Information Technology and a zero weighting in Consumer Discretionary also helped. Strong stock selection within Financials and Consumer Staples was also a source of outperformance for the Fund.  

Within the quarter, we were pleased with performance in the drawdowns over February and March as the Fund’s focus on high-quality companies at sensible valuations demonstrated its value in another period of uncertainty.

In this commentary linked below, we will give a more detailed overview of the events that moved markets and impacted Fund performance over Q1, with a focus on Consumer Staples and Financials.  

We also dive deeper into the current situation on tariffs, where the US is targeting trading partners with whom it runs large trade deficits in goods: 

Source: IMF Direction of Trade Statistics; as of 31st March 2025

We also explore the macroeconomic backdrop in the US, the geographic rotation that occurred over the first quarter, and the portfolio’s positioning and key metrics.

The Fund continues to offer a portfolio of consistently profitable companies with robust balance sheets and strong returns on capital. The current macroeconomic environment is marked by significant uncertainty, driven by shifting trade policies, tariff escalations, concerns over economic growth, and the potential resurgence of inflationary shocks. With these risks on the horizon, we are confident that the companies in the portfolio are well placed to deal with whatever challenges lay ahead, and the defensive nature of the portfolio – which has outperformed in all market corrections since launch in 2010 – gives us confidence heading into whatever market conditions lie ahead.

Past performance does not predict future returns

Fund launch: 31.12.2010

Source: FE fundinfo. Net of fees. Investors should note that fees and expenses are charged to the capital of the Fund. This reduces the return on your investment by an amount equivalent to the Ongoing Charges Figure (OCF). The OCF for the calendar year 2024 for the share class used for the fund performance returns was 0.77%. Returns for share classes with a different OCF will vary accordingly. Transaction costs also apply and are incurred when a fund buys or sells holdings. The performance returns do not reflect any initial charge; any such charge will also reduce the return.

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.
 

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