Global Innovators - August Commentary
Dr Ian Mortimer Portfolio Manager, Global Team
/
Matthew Page Portfolio Manager, Global Team
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 July, the Guinness Global Innovators Fund returned 3.6% (in GBP), the MSCI World Index returned 4.9%, and the IA Global sector returned 4.5%. The Fund therefore underperformed the Index by 1.3 percentage points and outperformed its peer group by 1.0 percentage points.
The Fund benefited from its overweight position in the Information Technology sector, but individual stocks within the portfolio offset this, including the relative effect of being underweight Nvidia, which was strong. On the other hand, the Fund benefited from strong stock selection in the otherwise underperforming Health Care sector.
Equities continued to trend positively for most of July as the market gained some much-needed clarity with respect to the economic backdrop. Although Trump was only able to sign one major trade deal in the first 90-day extension of his ‘Liberation Day’ tariffs (with the UK), the second extension yielded ‘deals’ with major trading partners including the European Union – a deal which covers 44% of global GDP. Although accompanied by higher tariffs, these agreements served to de-risk the macro environment and reduce the potential for a further escalation in the trade war.
However, sentiment shifted in the final week of the month as Trump then issued new so-called reciprocal tariffs on numerous other major trading partners which were unable to reach an agreement before the August 1st deadline.
Source: USITC Approximate Tariff Rate, The Budget Lab at Yale; July 2025
With the potential for tariffs to negatively impact economic growth, a shift in sentiment towards the US economy also emerged. Markets had previously been buoyed by its perceivable strength, and although a better-than-expected GDP print initially reinforced this, weak jobs numbers brought into focus whether it was as strong as first thought. Corporate earnings seasons has so far been a positive one but has done little to help demystify an increasingly complex macro backdrop.
In this commentary, we consider these factors driving equities in July. We also pick out some key themes discussed by company management in recent earnings calls, including AI and cloud capital expenditure, the effects of tariffs, the strength of the consumer, and the USD exchange rate. We also report on a recent change to the portfolio with the sale of Novo Nordisk.
Past performance does not predict future returns
Fund launch: 01/05/2003
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 0.81%. 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.
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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 Guinness Global Innovators Funds are designed to provide investors with global exposure to companies benefiting from innovations in technology, communication, globalisation or innovative management strategies. Innovation can take many forms, not just disruptive tech driven products. It is the intelligent application of ideas and is found in most industries and at different stages in company lifecycle. The Funds are actively managed and use the MSCI World 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 Global Innovators Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Supplement, the Key Investor Information Document (KIID), the Key Information Document (KID) 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 their distribution is not authorised or is unlawful, the Funds 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 Global Innovators Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the 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 Management (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.