Guinness Quality Income Funds
Reaching for top of the tree income
Overview
Our quality equity income approach was born in the wake of the Financial Crisis.
Looking for companies that could weather a variety of future economic conditions, in 2010 portfolio managers Matthew Page and Ian Mortimer developed an approach focussed on companies that consistently generate high return on capital. These persistent returns lend themselves well to a reliable and growing dividend, allowing investors to harness the power of compounded dividends over the long term, or the potential for growing income.
This approach builds on Guinness Global Investors’ style of disciplined screening and valuation modelling and broadly equally weighted, low turnover, concentrated portfolios. By taking the view that dividends should be an outcome of effective business models that generate cash returns, the Guinness quality equity income approach rejects the traditional – and perhaps intuitive – practice of screening for high-yield stocks, and instead begins with a search for high-quality companies.
We have found this approach effective both globally and regionally: a focus on persistently high return on capital companies that are attractively valued, with low leverage, and that pay a dividend which we are confident can grow in the future.
Wherever they are located – globally, among Europe’s high-IP dividend payers or in the growing numbers of quality companies in Asia and Emerging Markets – by investing in companies that persistently create value we aim to avoid the worst of drawdowns, participate in market upside, and deliver a healthy dividend.
Following the extraordinary challenges for investors in recent years, we are even more convinced of the merits of our approach today than in 2010. Linked below, you can read a useful summary of the benefits of our differentiated approach to investing for global or regional equity income.
UK-Domiciled Income Funds
WS Guinness Asian Equity Income Fund
The WS Guinness Asian Equity Income fund provides exposure to dividend paying companies with long-term growth potential in a mix of developed and developing countries across Asia.
The fund invests in a broadly equally weighted portfolio of typically 36 stocks that have a minimum market capitalisation of $500m and have achieved an 8% cash flow return on investment for at least 8 consecutive years.
WS Guinness European Equity Income Fund
The WS Guinness European Equity Income fund provides exposure to dividend paying companies in continental Europe. The fund invests in a broadly equally weighted portfolio of typically 30 stocks that have a minimum market capitalisation of $500m and have achieved an 8% cash flow return on investment for at least 8 consecutive years
WS Guinness Global Equity Income Fund
The WS Guinness Global Equity Income fund provides global exposure to dividend paying companies. We believe that dividend payers outperform in the long term and dividend growers do even more so. The fund invests in a broadly equally weighted portfolio of typically 35 stocks that have a minimum market capitalisation of $1bn and have achieved a 10% cash flow return on investment for at least 10 consecutive years.
Irish-Domiciled Income Funds
Guinness Emerging Markets Equity Income Fund
The Guinness Emerging Markets Equity Income fund aims to provide long-term capital appreciation and income growth by investing in emerging markets worldwide.
Instead of a top-down macro allocation approach, the fund identifies opportunities on a company by company basis investing in high quality dividend-paying companies which have achieved an 8% cash flow return on investment for at least 8 consecutive years.
TREE TOPPING FACT
FUN FACT
Q: What is the record length for a giraffe's neck?
A: 3 metres.
ASCEND WITH ASIA
FUN FACT
Q: How long does an Asian tree frog live if he doesn't fall out of a tree?
A: 6 years.
HUMMING ALONG
FUN FACT
Q: What is unique about a hummingbird's flight abilities?
A: They are the only bird who can fly backwards.
TRUMPETING BOTH INCOME AND CAPITAL GROWTH
FUN FACT
Q: How many litres of water can elephants keep in their trunks?
A: 8 Litres.
UK-Domiciled Income Funds
WS Guinness Asian Equity Income Fund
WS Guinness Asian Equity Income Fund is an equity fund. Investors should be willing and able to assume the risks of equity investing. The Fund only invests in the Asia region; it is therefore susceptible to the performance of that region, and can be volatile. Further details on the risk factors are included in the Fund’s documentation, available on our website. The value of an investment and the income from it can fall as well as rise as a result of market and currency movement; you may not get back the amount originally invested. Past performance does not predict future returns.
Source: FE fundinfo. 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 current OCF for the share class used for the fund performance returns is 0.89%. 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.
WS Guinness European Equity Income Fund
WS Guinness European Equity Income Fund is an equity fund. Investors should be willing and able to assume the risks of equity investing. The value of an investment and the income from it can fall as well as rise as a result of market and currency movement; you may not get back the amount originally invested. Further details on the risk factors are included in the Fund’s documentation, available on our website. Past performance does not predict future returns.
Source: FE fundinfo. 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 current OCF for the share class used for the fund performance returns is 0.89%. 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.
WS Guinness Global Equity Income Fund
WS Guinness Global Equity Income Fund is an equity fund. Investors should be willing and able to assume the risks of equity investing. Further details on the risk factors are included in the Fund’s documentation, available on our website. The value of an investment and the income from it can fall as well as rise as a result of market and currency movement; you may not get back the amount originally invested. Past performance does not predict future returns.
Simulated past performance: performance prior to the launch date of the Y class (11.03.15) is a composite simulation for Y class performance being based on the actual performance of the Fund’s E class (1.24% Ongoing Charges Figure - OCF). Source: FE fundinfo. 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 OCF. The current OCF for the share class used for the fund performance returns is 0.79%. 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.
UK-Domiciled Income Funds
Guinness Emerging Markets Equity Income Fund
Guinness Emerging Markets Equity Income Fund is an equity fund. Investors should be willing and able to assume the risks of equity investing. The Fund invests only in stocks of companies that are traded on Emerging Markets stock exchanges or that do at least half of their business in Emerging Markets, it is therefore susceptible to the performance of that region and can be volatile The value of an investment and the income from it can fall as well as rise as a result of market and currency movement; you may not get back the amount originally invested. Further details on the risk factors are included in the Fund’s documentation, available on our website. Past performance does not predict future returns.
Source: FE fundinfo. 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 current OCF for the share class used for the fund performance returns is 0.89%. 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.