Guinness European Equity Income Fund
Transcript of Guinness European Equity Income Fund
Portfolio ManagerNick Edwards
3rd November 2020
Guinness European Equity Income Fund
This document is presented to you in your capacity as a Professional Client and is not for general distribution to Retail Clients. Should you receive this document as a Retail Client you should disregard its content and take no action based upon it.
Produced by MSCI ESG Research as of May, 12 2020
Portfolio Advisor
1Portfolio manager
Source: Guinness Asset Management
Nicholas Edwards
• Joined Guinness Asset Management in 2018
• Previously worked at Mirabaud and in European equities since 2001, latterly as a member of the Strategy team.
• Graduated from London Business School with a Master’s degree in Finance. Prior to which Nicholas holds an MA Hons degree from the University of Edinburgh.
European Equity Income
2013 2014 2015 2016 2017 2018 2019 2020
Ian Mortimer Manager
Matthew Page Manager
Nick Edwards - - - - - Analyst Manager
2Equity Income strategies from Guinness Asset Management
Source: Guinness Asset Management and Financial Express, as at 30.09.2019. Performance vs peers for European Equity Income, Asian Equity Income, Emerging Markets Equity Income is relative to all income/dividend focused peers in their respective IA and FE sectors. The peers may not be exhaustive, but we have endeavoured to give as full a list as possible.
Matthew Page, CFAPortfolio ManagerGlobal Equity Income
Ian Mortimer, CFAPortfolio ManagerGlobal Equity Income
Nick EdwardsPortfolio ManagerEuropean Equity Income
Joseph StephensAnalystGlobal Equity Income
Sagar ThankiAnalystGlobal Equity Income
Edmund HarrissPortfolio ManagerAsian Equity IncomeEM Equity Income
Mark Hammonds, CFAPortfolio ManagerAsian Equity IncomeEM Equity Income
Sharukh MalikAnalystAsian Equity IncomeEM Equity Income
Emerging Markets Equity Income
Launch: 23rd December 2016
Sector: IA Global Emerging Markets
Quartile Since Launch: 2nd
Asian Equity Income
Launch: 19th December 2013
Sector: IA Asia ex-Japan
Quartile Since Launch: 1st
European Equity Income
Launch: 19th December 2013
Sector: IA Europe ex-UK
Quartile Since Launch: 1st
Global Equity Income
Launch: 31st December 2010
Sector: IA Global Equity Income
Quartile Since Launch: 1st
3
▪ Quality income process
▪ Positioning & attributes
▪ Fund performance
▪ Stronger out of the crisis
▪ Key long-term drivers of European equity returns
Quality Income
4
▪ Historical total return of stocks within the S&P500 between 1972 and 2019
Importance of dividend growth
Source: NED David Research.
12.9% 12.8% 12.3% 11.9%10.9%
8.6%
Dividend growers& initiators
All dividend-paying stocks
S&P 500 Index Dividend payerswith no change in
dividends
Non dividend-paying stocks
Dividend cuttersor eliminators
5Persistent return on capital is a good predictor of dividend growth
Source: Guinness Asset Management, CS HOLT
6Fund philosophy
Conviction
The Fund typically has 30 equally weighted positions
We target a low turnover with average of 3 – 5 year investment horizon
Quality
We focus on companies with a long history of persistent high return on capital
We avoid highly leveraged companies
Value
We try to identify companies that are cheap vs market, peers, and their own history
Fund investment process is fundamentally driven from the bottom-up
Dividend
The Fund targets a moderate dividend yield (we do not screen for high dividend yield companies)
The Fund aims to grow the dividend stream year-on-year
Concentrated portfolio of high return on capital companies, at attractive valuations, with a moderate dividend yield and good potential for dividend growth
Source: Guinness Asset Management
7Quality investment universe criteria
Our universe definition ignores yield - our focus is on quality, stable, profitable companies
Europe ex-UK companies
c.2,000
Persistent high return on capital companies c.250
Investment universe
c.200
1Sustainable competitive advantageScreened for 8 years of CFROI greater than 8%
2Strong balance sheet and critical massDebt to equity < 1. Market cap > €0.5bn.
Source: Guinness Asset Management
8Why CFROI > 8%?
▪ A CFROI >8% is well above the median return on capital of Europe ex-UK companies over the last 20 years
Source: Guinness Asset Management, CS HOLT
▪ Cash flow return on investment (CFROI) is a metric developed by Credit Suisse HOLT that seeks to calculate cash flow return on investment adjusted for inflation and on a standardised global/industry basis.
▪ This process identifies best of breed companies within Europe
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
Median CFROI of Europe ex-UK companies
Median Our hurdle rate
9Why 8 years, and why 8 consecutive years?
US economic cycles 1854-2009
▪ Ensures we only capture companies whose returns have remained consistently high through recessionary periods
▪ Looking at 8 consecutive years avoids companies with highly cyclical returns on capital
▪ Looking at 8 consecutive years rather than an average avoids companies with high average but unreliable returns.
Source: US - NBER, Europe - Economic Cycle Research data on Germany, France, Italy
Length of cycle Occurrences
> 10 years 1
8-10 years 3
6-8 years 4
4-6 years 6
2-4 years 19
Total no. of cycles 33
Most economic cycles since 1854 have lasted less than 8 years
European cycles 1957- 2018
Length of cycle Occurrences
> 10 years 2
8-10 years 3
6-8 years 4
4-6 years 8
2-4 years 4
Total no. of cycles 21
10Identifying consistent creators of shareholder value
Our universe includes companies like this… …but excludes companies like these
Source: Guinness Asset Management, CS HOLT
Value destruction
0
2
4
6
8
10
12
14
CF
RO
I
Time
Value creation
0
2
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8
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12
14
CF
RO
I
Time
Value creation
0
2
4
6
8
10
12
14
CF
RO
I
Time
6% cost of
capital
6% cost of
capital
6% cost of
capital
CFROI >8% for 8 years is a powerful indicator of continuing high returns: there is a over 90% chance that qualifying companies will achieve this score in the following year, and ~80% chance of companies achieving this score over four years.
Good company Average company
Poor company
Powerful indicator
11Universe characteristics – good sector distribution
Source: Guinness Asset Management, CS HOLT, Bloomberg
▪ Few highly cyclical companies in universe (energy, materials)
▪ Few highly regulated industries (utilities, telecoms): difficult to achieve high CFROI
▪ Good geographic diversification; Germany, France and Switzerland have the largest weightings
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GICS sector (current)
Utilities
Communication Services
Information Technology
Financials
Health Care
Consumer Staples
Consumer Discretionary
Industrials
Materials
Energy
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Country of domicile
Other
Portugal
Luxembourg
Austria
Greece
Denmark
Belgium
Norway
Ireland
Switzerland
Germany
France
12Investment process: systematic, repeatable, robust
Improving return on capital profile businessesInvestment universe of c200 persistently high return on capital businesses
Prioritisation / Idea generationBusiness strength, Valuation, Dividend
Portfolio additionDiscount to intrinsic value, sustainable dividend,
better risk/return than a current holding
Fundamental analysisSources of capital, Capital allocation, Proprietary modelling, Assessment of
return potential, Risk analysis.
Watch listLike the business, don’t like the
valuation
RejectWeak business, poor allocator of
capital, industry in decline, unsustainable dividend
Understand performanceDid total return evolve as expected?
Source: Guinness Asset Management
13Portfolio construction
Holdings & sizing▪ 30 companies in portfolio (typically)
▪ Equally weighted
▪ Rebalancing effect: Trim winners, top up underperformers
▪ One in, one out: Strong sell discipline, no long tail of small positions
▪ Limit stock specific risk: No large weights in just one or two positions
▪ High active share: Genuinely index agnostic
▪ Maximum 30% in any one sectorDiversification
▪ Low turnover of positions
▪ 3 – 5 year average holding periodTurnover
▪ Fundamentally driven stock selection – index agnostic
▪ Consider macro factors at the company level. Macro/Top-down
Source: Guinness Asset Management
14
Positioning & Attributes
Fund Positioning
15Portfolio Breakdown – Attributes
Source: Guinness Asset Management, qualitative assessment
Holdings
Identifiable Barriers to Entry Intangibles, Switching Costs, Scale, Network Effects, Regulation
Market Leadership Positions Dominates a market or niche, number 1, 2 or 3 position. Balance sheet strength.
Widening Moat Market share gains. R&D spend. New Products. Widening margins. Eye on capital cycle / new entrants.
Aligned Incentives Active shareholders. Capital allocators. Returns based incentives. Business owner culture. Stakeholder focus.
Market Opportunity Long runway. Secular growth. Not forgetting about the supply side.
Commodity industries Materials, Energy.
Regulated Industries Utilities, Telecoms.
Banks Leverage, regulation.
Stro
ng
Self
det
erm
inat
ion
Exte
rnal
fac
tors
16Portfolio breakdown
Source: Guinness Asset Management, Bloomberg (data as at 30.09.2020).
By receipt of this presentation document in either hard or soft copy, the recipient agrees not to copy, disclose, disseminate or use this information other than in their own fund selection process. Note: this portfolio data is Confidential Information that, until the 15th day of each month, is not in the public domain.
(USD)
PE PE
20Y 21Y
Kering SA Consumer Discretionary 85.1 FP 3.1% 27.9 20.2
Nestle SA Consumer Staples 344.4 SW 3.3% 24.5 22.7
Danone SA Consumer Staples 44.1 FP 3.7% 17.4 16.0
Salmar ASA Consumer Staples 6.6 NO 3.5% 21.7 17.0
Unilever NV Consumer Staples 161.8 NA 3.1% 19.0 18.0
Bakkafrost P/F Consumer Staples 4.0 NO 3.5% 35.3 19.0
Euronext NV Financials 8.7 FP 3.0% 19.2 19.0
Helvetia Holding AG Financials 4.6 SW 3.5% 11.4 8.8
Amundi SA Financials 14.4 FP 3.7% 15.6 14.1
AXA SA Financials 44.0 FP 3.7% 9.1 6.8
Mapfre SA Financials 4.6 SM 3.4% 8.1 7.0
Deutsche Boerse AG Financials 32.9 GR 3.7% 24.5 24.0
Novo Nordisk A/S Health Care 161.1 DC 3.5% 24.0 20.9
Fresenius SE & Co KGaA Health Care 24.7 GR 3.9% 13.2 11.7
Recordati Industria Chimica e Farmaceutica SpAHealth Care 10.8 IM 3.4% 23.8 21.6
Roche Holding AG Health Care 298.3 SW 3.6% 15.9 15.0
Konecranes Oyj Industrials 2.7 FH 2.9% 18.7 11.6
Epiroc AB Industrials 17.3 SS 3.0% 27.0 23.9
Thales SA Industrials 16.0 FP 3.7% 15.6 10.9
Deutsche Post AG Industrials 56.7 GR 3.0% 17.9 13.8
ABB Ltd Industrials 55.6 SW 3.2% 33.8 21.6
Siemens AG Industrials 105.2 GR 2.7% 18.2 14.9
Aalberts NV Industrials 4.0 NA 3.1% 23.3 14.6
Schneider Electric SE Industrials 70.4 FP 3.2% 25.2 19.6
Assa Abloy AB Industrials 26.4 SS 3.2% 27.5 20.5
TietoEVRY Oyj Information Technology 3.3 FH 3.2% 13.8 11.6
Capgemini SE Information Technology 21.5 FP 3.1% 16.3 13.8
ASML Holding NV Information Technology 159.0 NA 3.6% 46.1 32.6
Sika AG Materials 35.5 SW 2.9% 36.7 30.2
Smurfit Kappa Group PLC Materials 9.6 ID 3.5% 13.7 12.0
Average mkt. cap 61.1 Total portfolio 18.2 14.7
Median mkt. cap 25.6
MSCI Europe ex-UK Index 21.6 16.1
Fund premium/(discount) -15.9% -8.4%
Name Country % NAVMkt. capSector
17Portfolio allocation – Sector Over/ Underweight
Source: Guinness Asset Management, Bloomberg (data as at 30.09.2020)
0% 5% 10% 15% 20% 25% 30% 35%
Industrials
Financials
Consumer Staples
Materials
Information Technology
Real Estate
Energy
Health Care
Communication Services
Utilities
Consumer Discretionary
Sector Exposures
Portfolio Index
15%
5%
4%
0%
0%
-1%
-2%
-4%
-4%
-5%
-8%
-10% 0% 10% 20%
Over/Underweight
0% 5% 10% 15% 20% 25%
Finland
Norway
Ireland
Netherlands
Denmark
UK
France
Sweden
Austria
Poland
Luxembourg
Italy
Belgium
Spain
Germany
Switzerland
Regional Exposures
Portfolio Index
-10% -5% 0% 5% 10%
Over/Underweight
18Fund vs MSCI Value & Growth
Source: Guinness Asset Management, Bloomberg data (data as at 30.09.2020).
0.0 0.0 0.0 0.03.5
7.3 9.413.1
16.8 18.3
30.0
0.05.0
10.015.020.025.030.035.0
Fund vs MSCI Europe Value & Growth weights %
MSCI Europe Value MSCI Europe Growth Guinness European Equity Income
19Portfolio allocation over time
Source: Guinness Asset Management, Bloomberg (data as at 30.09.2020)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4
13
Q1
14
Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Q3
15
Q4
15
Q1
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Q2
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Q3
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Q4
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Q1
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Q2
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Q3
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Q4
17
Q1
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Q2
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Q3
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Q4
18
Q1
19
Q2
19
Q3
19
Q4
19
Q1
20
Q2
20
Q3
20
Utilities
Materials
Communication Services
Information Technology
Industrials
Health care
Financials
Energy
Consumer staples
Consumer discretionary
Cash
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4
13
Q1
14
Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q3
18
Q4
18
Q1
19
Q2
19
Q3
19
Q4
19
Q1
20
Q2
20
Q3
20
Ireland
Luxembourg
Sweden
Switzerland
Italy
Norway
UK
Netherlands
Finland
Germany
Denmark
France
Spain
Austria
Cash
20Portfolio statistics – are we doing what we say we will do?
Source: Guinness Asset Management, Bloomberg, CS HOLT (data as at 30.09.2020).
Fund MSCI
Europe ex-
Div yield
(2021e)
3.4%
(gross)
3.0%
(gross)
Payout
ratio %
42% 66%
Fund MSCI Europe
ex-UK
P/E (2021) 14.7 16.1
FCF % 8.6 6.5
Fund MSCI Europe
ex-UK
Average 8yr
CFROI
16% 11%
ROE % 20% 7%
Weighted
average debt
/ equity
78% 226%
Conviction
Typically 30 equally weighted positions in the portfolio
Low turnover: average 3 – 5 year investment horizon
Quality
Focus on companies with a long history of persistent high return on capital
Avoid highly leveraged companies
Value
Identify companies that are cheap vs market, peers, or their own history
Fundamentally driven bottom-up process
Dividend
Target a moderate dividend yield (do not screen for high dividend yield companies)
Aim to grow the dividend stream year-on-year
Pos i tions 30
Top 10 %NAV
Bottom 10 %NAV
35%
32%
Active Share 85%
Sustainable income – MSCI ESG Ratings 21
Source: Guinness Asset Management, MSCI data.
Performance 22
Performance
Fund vs. MSCI Europe Indices 23
Source: Guinness Asset Management, Bloomberg (data as at 30.09.2020).
13.3%
21.7%
39.4%
52.1% 54.8%59.2% 60.6%
76.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
MSCI UKnet total
returnIndex
MSCIEuropeValueIndex
MSCIEurope
HighDividend
MSCIEurope
EuroIndex
MSCIEurope ex
UK
MSCIEuropeMidcapIndex
GuinnessEuropean
EquityIncome
MSCIEuropeGrowthIndex
5Y to Q3 end 2020 %
24Largest drawdowns in global equity markets since fund launch (19.12.13)
Source: Guinness Asset Management, Bloomberg (data as at 30.09.2020).
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19
MSCI Europe ex UK (total return in GBP)
1 2 3 4 5 6 8
7
9
25Performance of fund vs benchmark in the largest drawdowns since fund launch
Source: Guinness Asset Management, Bloomberg (all data total return in GBP, Z Class, 0.35% OCF)
Start date End dateMSCI Europe Ex
UK
Guinness
European Equity
Income
Fund relative
performanceReason for sell off
1 GUEEZGI ID Equity 09/06/2014 07/08/2014 -9.5% -9.5% 0.1% Rate concerns / Ebola / Russia tension
2 GUEEZGI ID Equity 09/09/2014 16/10/2014 -11.1% -10.8% 0.4% Fed prepares to raise rates
3 GUEEZGI ID Equity 27/11/2014 07/01/2015 -5.9% -4.1% 1.8% European deflation concerns
4 GUEEZGI ID Equity 13/04/2015 23/09/2015 -14.8% -12.7% 2.1% Greece new bailout bid
5 GUEEZGI ID Equity 30/12/2015 11/02/2016 -11.7% -8.7% 2.9% Migration questions EU stability
6 GUEEZGI ID Equity 11/10/2016 22/11/2016 -6.1% -5.6% 0.5% Rates to rise in the US
7 GUEEZGI ID Equity 24/01/2018 26/03/2018 -8.5% -7.5% 0.9% Inflation / rate hike scare
8 GUEEZGI ID Equity 26/09/2018 27/12/2018 -13.1% -10.2% 2.9% Italian budget deficit debacle
9 GUEEZGI ID Equity 19/02/2020 16/03/2020 -27.7% -29.8% -2.1% Coronavirus
26Peer group analysisFund percentile rank versus Income peers (5 years, in GBP)
Source: Financial Express. Europe ex UK income funds in the following sectors: FO Equity – Europe ex UK, IA Europe ex UK, OM Equity – Europe ex UK, OFF MT Equity –Europe ex UK. This group was created by Guinness to show other Europe ex UK income funds. This list may not be exhaustive but have we endeavoured to give as complete a list as possible. Z GBP share class, 0.35% OCF. Data to 30.09.2020.
Risk and performance analysisAnnualised, weekly, in GBP
Return
pa (%)
Volatility
(%)Downside Risk Max drawdown Sortino
Excess
return
Sharpe
ratio
Info
ratioTreynor Jensens Alpha
Guinness European Equity Income 10.06 16.73 17.61 -30.29 0.35 0.60 0.36 0.10 6.45 0.92
Index : MSCI Europe ex UK 9.23 16.86 17.67 -25.02 0.31 0.00 0.32 0.00 5.48 0.00
Sector : IA Europe Excluding UK 9.12 15.49 16.55 -24.43 0.30 -0.45 0.32 -0.08 5.78 0.21
0
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ENTI
LE R
AN
K in
pee
r gr
ou
p
Dividend distribution history 27
▪ Grown the fund dividend payment every year in Euros.
▪ Annualised growth of 6.3% since launch in Euros (X Class).
▪ Annualised growth of 8.4% since launch in GBP (Z Class)
Source: Guinness Asset Management
€ 305 € 323 € 327
€ 382 € 398 € 415
€ -
€ 100
€ 200
€ 300
€ 400
€ 500
2014 2015 2016 2017 2018 2019
Income paid on €10,000 investment at launch (Class X EUR)
£299 £285£315
£403£430 £447
£0
£100
£200
£300
£400
£500
2014 2015 2016 2017 2018 2019
Income paid on £10,000 investment at launch (Class Z GBP)
Dividend & Switches 28
Source: Guinness Asset Management, Bloomberg (data as at 30.09.2020).
-100%-100%-100%
-82%
-56%
-46%
-24%-21%-19%-19%-11%
0% 0% 0% 1% 3% 3% 3% 4% 5% 6% 7% 7% 8% 8% 9% 10%10%12%14%
-120%
-100%
-80%
-60%
-40%
-20%
0%
20%
Divided Growth 2020 - Current Portfolio
Enablers of Resilience – Communications & Automation
and job creation - Green infrastructure
2021e yield 3.4% vs. >4% in 2019.
Dividend paying companies are a good hedge against inflation
Portfolio Developments 30
Stronger out of the crisis
Portfolio – Stronger out of the crisis 31
▪ Novo Nordisk results highlighted the potential for 10% eps CAGR out to 2030 driven by its core GLP-1 franchise that may now also proveefficacious in reducing COVID risk.
▪ Roche receiving a significant boost to Diagnostics from the crisis amid structural historic underinvestment in multiples countries. While thepharma investor day highlighted 23 drugs in late stage PIII pipeline vs. 10 in 2018.
▪ Schneider’s Aveva announced it will acquire OSI Soft, giving it a strong foothold in the nascent buildings information modelling market(BIM), a market that should in turn benefit from the efficient buildings component of the European recovery package.
▪ CapGemini reported bookings +10.3% as customers look to increase agility, accelerating digital and cloud capex in response the crisis.
▪ Nestle continued its portfolio shift towards healthy and premium with the acquisition of Aimmune Therapeutics which develops treatmentsfor food allergies.
▪ Smurfit Kappa reported price rises at a time that might normally be associated with weaker demand, underscoring the strength of the shiftto sustainable packaging.
▪ Deutsche Post Q2 EBIT +26%, Q3 +58%, with the crisis underscoring the systemic importance of DP’s proprietary express network andairfreight capacity.
▪ Sika raised guidance from the market leader in sustainable construction chemicals, benefitting from the digital fast forward and climatefocused fiscal spending.
▪ Kering reported strong online traction in Asia across WeChat and Instagram highlighting how companies like Kering that use technology welllook set to come out to the crisis stronger.
▪ Siemens spun out its Siemens Energy division giving us more exposure to its high-quality high return Digital Industries automation andsoftware business. Similarly ABB capital markets day in November could reveal further portfolio opportunities.
▪ Euronext to acquire MTS Borsa Italiana from LSE as part of Refinitive competition measures, giving it critical scale in clearing and electronicfixed income.
▪ Konecranes to merge with Cargotec creating a world leader in lifting and automation services with all divisions #1 or #2 market positions,and service representing 40% of total sales.
Portfolio Developments 32
Long-term drivers of European equity returns
The rise of the greens looks set to continue 33
Source: Eurostat, https://www.politico.eu/article/the-eu-budget-and-recovery-deal-in-charts/
▪ ECB “target green spread”
▪ All CDU / Chancellor candidates support…
➢ EU €750bn Recovery fund, integration, CMU
➢ Green – ECB, Carbon price, net zero 2050
▪ Kingmakers in the European parliament
▪ No two parties now able to command a majority
34World class innovation
Source: http://uis.unesco.org/apps/visualisations/research-and-development-spending/
35Consolidation & improving returns
Consolidation
Industrial
Gases
Logistics
Lifts
Exchanges
Telecoms
Industrials
& Autos
36Platform availability – 0.35% OCF Z Class Offer
Share classes*
Class Currency Max TER (OCF) Description Acc / dist ISIN
Z GBP 0.35% Founder share class Dist IE00BGHQF300
Pricing & dealing
Pricing Daily
Performance fee None
Valuation point 11pm Dublin time
Dealing cut off 3pm Dublin time
Domicile Ireland
The Fund
Fund launch date 19 December 2013
Fund managersNick Edwards, Matthew Page & Dr Ian Mortimer
BenchmarkMSCI Europe ex-UK Index
Leverage None
Currency hedging
None
Structure & legal
Fund structure Dublin OEIC (UCITS IV)
AdministratorLink Fund Administrators (Ireland) Ltd.
Custodian JP Morgan
Temporary permissions regime
Yes
Reporting statusReporting Fund for UK tax purposes
*
Source: Guinness Asset Management. *Y class rebated down to 0.35% on Fidelity FundsNetwork.
Founder Z share class will close to new investment when the Fund reaches £50m in AUM.
Q&A 37
Questions Please
38Guinness European Equity Income Fund - all share classes
0.35% OCF 0.99% OCF 1.24% OCF 1.99% OCF
Currency GBP GBP / USD / EUR GBP / USD / EUR GBP / USD / EUR
Initial charge 0% 0% 0% 5%
Max total expense ratio (OCF)
0.35% 0.99% 1.24% 1.99%
Accumulation or Distribution
Distribution Accumulation Distribution Accumulation Distribution Accumulation
Country registrations*UK, CH, LUX, FIN, SWE,
SGPUK, CH, LUX, FIN, SWE,
SGPUK, CH, LUX, FIN, SWE,
SGPUK, CH, LUX, FIN, SWE,
SGP EUR class: ESUK, CH, LUX, FIN, SWE,
SGP EUR class: ESUK, CH, LUX, FIN, SWE,
SGP EUR class: ES
Name Z Y Acc Y Dist X Acc X Dist C Acc
ISIN codes GBP: IE00BGHQF300GBP: IE00BYVHVZ98USD: IE00BYVHW233EUR: IE00BYVHW019
GBP:IE00BYVHWJ06
USD:IE00BYVHW340
EUR:IE00BYVHW126
GBP: IE00BGHQDY74USD: IE00BGHQF292EUR: IE00BGHQF078
GBP: IE00BGHQDX67USD: IE00BGHQF185EUR: IE00BGHQDZ81
GBP: IE00BVYPNS63 USD: IE00BVYPNT70
EUR: IE00BGHQDW50
Bloomberg tickers GBP: GUEEZGI IDGBP: GUEEYGA IDUSD: GUEEYUA IDEUR: GUEEYEA ID
GBP: GUEEYGD IDUSD: GUEEYUD IDEUR: GUEEYED ID
GBP: GUEEXGA IDUSD: GUEEXUA IDEUR: GUEEXEA ID
GBP: GUEEXGI IDUSD: GUEEXUI IDEUR: GUEEXEI ID
GBP: GUEECGA ID USD: GUEECUA ID EUR: GUEECEA ID
*Country codes: UK: United Kingdom; CH: Switzerland; LUX: Luxembourg; FIN: Finland; SWE: Sweden; SGP: Singapore (professional only); ES: Spain
Source: Guinness Asset Management
39Contact details
Sales, marketing and investor relations
Charlie Riddell [email protected] +44 (0) 20 7222 3473
Flurry Wright [email protected] +44 (0) 20 7222 5703
Deborah Kay [email protected] +44 (0) 20 7222 2037
Alex Hall [email protected] +44 (0) 20 7042 6525
Padraig Staunton
Charlie Crole
+44 (0) 20 7222 3719
+44 (0) 20 7222 5703
Investment management team
Ian Mortimer [email protected] +44 (0) 20 7222 3115
Matthew Page [email protected] +44 (0) 20 7222 3085
Nick Edwards [email protected] +44 (0) 20 7042 6511
Guinness Asset Management Ltd.
18 Smith Square, London SW1P 3HZ
+44 (0) 20 7222 5703
For your protection, calls to these numbers will be recorded
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Issued by Guinness Asset Management Limited, authorised and regulated by the Financial Conduct Authority.
This report is primarily designed to inform you about Guinness European Equity Income Fund. Any investment decision should take account of the subjectivity of the comments contained in the report. It is provided for information only and all the information contained in it is believed to be reliable but may be inaccurate or incomplete; any opinions stated are honestly held at the time of writing, but are not guaranteed. The contents of the document should not therefore be relied upon. It should not be taken as a recommendation to make an investment in the Fund or to buy or sell individual securities, nor does it constitute an offer for sale.
Risk
The 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, and you may not get back the amount originally invested. Details on the risk factors are included in the Fund’s documentation, available on our website. Shareholders should note that all or part of the fees and expenses will be charged to the capital of the Fund. This will have the effect of lowering the capital value of your investment.
Documentation
The documentation needed to make an investment, including the Prospectus, the Key Investor Information Document (KIID) and the Application Form, is available from the website guinnessfunds.com, or free of charge from:-
▪ the Manager: Link Fund Manager Solutions (Ireland) Ltd, 2 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland;
the Promoter and Investment Manager: Guinness Asset Management Ltd, 18 Smith Square, London SW1P 3HZ.
Residency
In countries where the Fund is not registered for sale or in any other circumstances where its distribution is not authorised or is unlawful, the Fund should not be distributed to resident Retail Clients. THIS INVESTMENT IS NOT FOR SALE TO U.S. PERSONS.
Structure & regulation
The Fund is a sub-fund of Guinness Asset Management Funds PLC (the “Company”), an open-ended umbrella-type investment company, incorporated in Ireland and authorised and supervised by the Central Bank of Ireland, which operates under EU legislation. The Fund has been approved by the Financial Conduct Authority for sale in the UK. If you are in any doubt about the suitability of investing in this Fund, please consult your investment or other professional adviser.
Switzerland
This is an advertising document. The prospectus and KIID for Switzerland, the articles of association, and the annual and semi-annual reports can be obtained free of charge from the representative in Switzerland, Carnegie Fund Services S.A., 11, rue du Général-Dufour, 1204 Geneva, Switzerland, Tel. +41 22 705 11 77, www.carnegie-fund-services.ch. The paying agent is Banque Cantonale de Genève, 17 Quai de l'Ile, 1204 Geneva, Switzerland.
Telephone calls will be recorded and monitored.
03/11/2020, GBP
Disclaimer