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Guinness Global Equity Income Y GBP

Bestinvest LogoConcentrated, income-focused worldwide equity fund.

PRICE (INC)

1861.49p

PRICE (ACC)

2279.1p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.5%

ONGOING CHARGE

0.84%

YIELD

2.3%

1 YEAR
10.98%

Prices as at 10 Aug 2022.

Fund commentary last updated 24 Jun 2022.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to provide income and capital growth by investing in companies worldwide that can pay sustainable, growing dividends. Managers Dr Ian Mortimer and Matthew Page believe that companies which pay dividends generally outperform those that do not, and those that regularly grow those payouts do better still. Although they look for global equities which provide a yield above that of the benchmark MSCI World Index, they do not simply seek out high-yielding firms. They focus on underlying business quality first – particularly persistent high returns on capital – before thinking about dividends. The managers create a concentrated, equally-weighted portfolio of 35 stocks. They typically hold companies for between three and five years. Their holdings include defence giant BAE Systems, Listerine-maker Johnson & Johnson and British American Tobacco.

Fund summary

SectorGlobal Equity Income
StructureOFFSHORE FUND
LaunchedMarch 2015
Size£2,091m
Yield2.3%
Charging BasisCapital
Dividends paidJan, Jul

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.5%
Ongoing Charges Figure0.84%

Investment Process

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 is 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 and 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