Emerging Markets Equity Income - October Commentary
Edmund Harriss Director, Chief Investment Officer, Portfolio Manager
/
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.
Emerging markets rallied sharply in sterling terms during September. The MSCI Emerging Markets Net Total Return Index rose 7.5%. Over the month, China’s export growth slowed, with a contraction in US exports offset by rises in Southeast Asia and the EU. However, China also made diplomatic strides, holding talks with Russia and reaching an agreement with the US on American ownership of TikTok. President Xi also hosted Narendra Modi in talks aimed at improving relations between India and China.
Last month, we noted China’s dual-pronged strategy of reducing its dependence on other countries while simultaneously increasing these countries' reliance on China. This month we illustrate the phenomenon further through the increasing dependence of individual companies on China, Apple being a key example. The influence of Western brands has caused a paradigm shift in local manufacturing chains and technological capabilities. However, rising labour costs, due to increased prosperity, are incentivising companies to shift supply chains away from China.
While this is an important trend to observe, given the parts of the market in which we invest, our expectation is that the business's results will ultimately be the primary driver of returns. Provided we believe the underlying business performance will be sound, the turbulence in stock prices can therefore present opportunities.
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 Emerging Markets Equity Income
Guinness Emerging Markets Equity Income
Latest Factsheet
Guinness Emerging Markets Equity Income - Webcast
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 Guinness Emerging Markets Equity Income Fund is designed to provide investors with exposure to high-quality dividend-paying companies in Emerging Markets worldwide. The Fund aims to provide long-term capital appreciation and a source of income that has the potential to grow over time. The Fund is actively managed and uses the MSCI Emerging Markets 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
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 www.guinnessgi.com , or free of charge from:
- the Manager: Waystone Management Company (IE) Limited, 2nd Floor 35 Shelbourne Road, Ballsbridge, Dublin DO4 A4E0, Ireland; 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 their 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.