GUINNESS GLOBAL EQUITY INCOME Y GBP
A concentrated, income-focused worldwide equity fund.
ANNUAL MANAGEMENT CHARGE
Prices as at 01 Dec 2023.
Fund commentary last updated 27 Jul 2023.
Past performance is not an indication of future performance.
Capital at risk.
|Sector||Global Equity Income|
|Dividends paid||January, July|
|Standard Initial Charge||0%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||0.5%|
|Ongoing Charges Figure||0.79%|
The management team begin their investment process by identifying good quality companies with consistently high returns on capital, ideally over 10% in each of the previous ten years. This they believe this a good marker as it only captures companies which have weathered different economic cycles, and whose returns have remained consistently high even through recessionary periods. On average only 3% of the 16,000 global listed companies achieve this threshold. This number is further reduced by the team excluding companies less than $1billion in size. This gives them a pool of around 400 companies from which to build the portfolio. From this universe the managers take a bottom-up investment approach. They use their own models to analyse areas such as a company’s cash flow, capital budgeting, valuation, and potential for dividend growth. They then combine this with a subjective analysis of the company’s business model to identify stocks for inclusion in the final portfolio. They avoid companies with large amounts of debt, in declining industries or with an unsustainable dividend. They aim to select companies from a broad range of industries, countries, and market value to create a well-diversified portfolio. This they hope will provide a reasonable dividend yield and growing income stream at an attractive valuation relative to the broad market. Roughly five new stocks enter the portfolio every year and five exit. The main reasons for selling holdings include when the company fails to continue to meet the fund’s return on capital criteria, the dividend outlook or management policy to dividends changes unfavourably, or the yield contribution to the portfolio is insufficient.
The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.
Past performance is not a guide to future performance. View full risk warning