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magazineGuinness Global Equity Income provides the resilient performance we hoped for
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.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Feature
- Enough is enough: The FTSE 100 companies which face a grilling from investors
- Specialist distributor Diploma is a rare winner from global supply chain constraints
- How investors including people in retirement should deal with 7% inflation
- A complete exit from Russia is likely to cost companies dearly
