Asian Equity Income - July Commentary
Edmund Harriss Director, Chief Investment Officer, Portfolio Manager
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Mark Hammonds Portfolio Manager, Asian & Emerging Markets
This is a marketing communication. Please refer to the prospectus, supplement and KID/KIID for the Funds before making any final investment decisions. The value of this investment can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you invested.
Past performance does not predict future returns.
In June, the Guinness Asian Equity Income Fund rose 3.8% (Y share class, in GBP), while the MSCI AC Asia Pacific ex Japan Net Total Return Index rose 4.0%. Over the second quarter, we outperformed the benchmark by 2.1 percentage points (8.3% vs 6.3%), and year to date, the Fund rose 5.1% outperforming the MSCI AC Asia Pacific ex Japan Net Total Return Index, which rose 4.3%. Further performance is shown below.
Over the quarter, the longstanding dominance of US-driven market performance has been increasingly challenged by a more regionally distributed investment dynamic. Some of the reasons for this include investors seeking to diversify income streams away from a weakening USD and viewing other regions as more attractive on a valuation basis. This has led to outperformance in Europe and Asia versus the US on a year-to-date basis. Whilst Europe is far ahead of Asia so far this year, we note Asia was the best performing region during the second quarter, and also during June, helped by both Emerging and Developing economies.
Source: Bloomberg, MSCI. Net returns in US dollars as of 30th June 2025
While markets remain unpredictable, we still see plenty of opportunities within Asia. Investors looking for regional diversification at attractive valuations will almost certainly be considering Asian markets, and particularly China. The Chinese market remains concerned over the sluggish macroenvironment, which we argue is driven by the country’s ongoing transition away from property and towards the new pillar industries. We expect the new pillar industries to become large enough to offset the remaining drag from the contraction in property by the end of 2026/early 2027.
However, not all value opportunities are the same. For us, this means while we continue with our value discipline, our focus remains on looking for cash-generative, quality businesses that can operate through tough periods of economic cycles.
In this commentary linked below, we consider the macroeconomic environment over H1 2025, the main drivers of the Fund’s performance, the dividend announcements of the Fund’s portfolio companies, and the valuation perspective of China.
Past performance does not predict future returns
Fund launch: 19/12/2013
Source: FE fundinfo. Net of fees. Investors should note that fees and expenses are charged to the capital of the Fund. This reduces the return on your investment by an amount equivalent to the Ongoing Charges Figure (OCF). The OCF for the calendar year 2024 for the share class used for the fund performance returns was 0.89%. Returns for share classes with a different OCF will vary accordingly. Transaction costs also apply and are incurred when a fund buys or sells holdings. The performance returns do not reflect any initial charge; any such charge will also reduce the return.
The value of this investment can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you invested.
Learn more about Guinness Asian Equity Income
Guinness Asian Equity Income
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The information provided on this page is for informational purposes only. While we believe it to be reliable, it may be inaccurate or incomplete. Any opinions stated are honestly held at the time of publication, but are not guaranteed and should therefore not be relied upon. This content should not be relied upon as financial advice or a recommendation to invest in the Funds or to buy or sell individual securities, nor does it constitute an offer for sale. Full details on Ongoing Charges Figures (OCFs) for all share classes are available here.
The Funds are designed to provide investors with exposure to high quality dividend-paying companies in the Asia Pacific region. The Funds are managed for income and capital growth and invest in profitable companies that have generated persistently high return on capital over the last decade, and that are well placed to pay a sustainable dividend into the future. The Funds are actively managed. The Guinness Asian Equity Income Fund uses the MSCI AC Pacific ex Japan Index as a comparator benchmark only. The WS Guinness Asian Equity Income Fund uses the MSCI AC Asia Pacific ex Japan Index as a comparator benchmark only.
For the avoidance of doubt, if you decide to invest, you will be buying units/shares in the Fund and will not be investing directly in the underlying assets of the Fund
Guinness Asian Equity Income Fund
Documentation
The documentation needed to make an investment, including the Prospectus, Supplement, the Key Information Document (KID) / Key Investor Information Document (KIID) and the Application Form, is available from the website www.guinnessgi.com , or free of charge from:
- the Manager: Waystone Management Company (IE) Limited, 2nd Floor 35 Shelbourne Road, Ballsbridge, Dublin DO4 A4E0; or,
- the Promoter and Investment Manager: Guinness Asset Management Ltd, 18 Smith Square, London SW1P 3HZ
Waystone IE is a company incorporated under the laws of Ireland having its registered office at 35 Shelbourne Rd, Ballsbridge, Dublin, D04 A4E0 Ireland, which is authorised by the Central Bank of Ireland, has appointed Guinness Asset Management Ltd as Investment Manager to this fund, and as Manager has the right to terminate the arrangements made for the marketing of funds in accordance with the UCITS Directive.
Investor Rights
A summary of investor rights in English, including collective redress mechanisms, is available here: https://www.waystone.com/waystone-policies/
Residency
In countries where the Fund is not registered for sale or in any other circumstances where distribution is not authorised or is unlawful, the Fund should not be distributed to resident Retail Clients. NOTE: THIS INVESTMENT IS NOT FOR SALE TO U.S. PERSONS.
Structure & Regulation
The Fund is a sub-fund of Guinness Asset Management Funds PLC, 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 these Funds, please consult your investment or other professional adviser.
WS Guinness Asian Equity Income Fund
Documentation
The documentation needed to make an investment, including the Prospectus, Supplement, the Key Investor Information Document (KIID) and the Application Form, is available in English from https://www.waystone.com/our-funds/waystone-fund-services-uk-limited/ or free of charge from:-
Waystone Management (UK) Limited, PO Box 389, Darlington DL1 9UF
E-Mail: wtas-investorservices@waystone.com
Waystone Fund Services (UK) Limited is authorised and regulated by the Financial Conduct Authority.
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.
Structure & regulation
The Fund is a sub-fund of WS Guinness Investment Funds, an investment company with variable capital incorporated with limited liability and registered by the Financial Conduct Authority.