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The concentrated fund has comfortably outperformed global developed markets
Thursday 21 Apr 2022 Author: Tom Sieber

Guinness Global Equity Income (BVYPP13) £18.43

Gain to date: 8.1%

Original entry point: Buy at £17.05, 22 July 2021

We highlighted Guinness Global Equity Income (BVYPP13) as a good way of protecting against market uncertainty back in July 2021.

While the sources of that uncertainty might have changed from the Delta variant of Covid-19 to war in Ukraine and rampant inflation, the fund has continued to deliver a resilient performance, gaining more than 8% against the MSCI World index which is down nearly 3% over the same timeframe.

It helps having defensive names in the portfolio including US pharmaceutical firm Abbvie (ABBV:NYSE), tobacco manufacturers British American Tobacco (BATS) and Imperial Brands (IMB), as well as BAE Systems (BA.) which has benefited from the renewed impetus behind defence spending in the wake of the Ukaine war.

The fund has an emphasis on dividend growth rather than just companies with a high dividend yield. This is reflected in the historic yield of 2.2% which is lower than many other income funds, but over time dividend growth is an important driver of returns.

It has a concentrated portfolio with 35 holdings. The top 10 positions account for more than a third of the fund’s assets.

SHARES SAYS: Guinness Global Equity Income continues to be an attractive investment as the risks to the global economy stack up. 

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