Global Quality Mid Cap - 2026 Outlook
Investment Analyst, Global Team
Investment Analyst, 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.
2025 Review
With all the uncertainty, volatility, and disruption that 2025 brought, it was nonetheless a very strong year for global equity markets, with equities having had a remarkably strong 3-year run and being the best-performing asset class in the year.
However, despite all the talk about US exceptionalism, the US underperformed almost all other major market indices in 2025. The reasons for underperformance can be debated: narrow US market breadth, domestic policy chaos, fiscal stimulus across the EU & Japan, improving governance in some parts of EM, or just simple mean reversion in valuations. In any case, the shift towards equities beyond the US was clear.
Source: Bloomberg, Guinness Global Investors as of 31st December 2025
Quality was an area of weakness in 2025, with the MSCI World Quality Index suffering its worst year since 2003 vs the main Index. However, Quality's long-term track record has been very strong. Quality has been in favour over much of the past three decades, with the index generating far stronger returns than its MSCI World comparator.
Source: Bloomberg, Guinness Global Investors as of 31st December 2025
We view quality businesses as those that sustainably deploy capital into projects with attractive expected returns, without compromising their long-term financial health. This disciplined reinvestment strategy creates a compounding flywheel effect, enabling such companies to build – and, crucially, maintain – competitive advantages over time. Quality businesses can therefore consistently generate persistent growth and create value through a market cycle.
Fund Tailwinds
In 2025, the Fund’s relative performance benefited from its lack of exposure to Real Estate, Staples, and Energy, which were amongst the weakest-performing sectors. Good stock selection from early April to December acted as a strong tailwind for the Fund, particularly those growth stocks exposed to AI.
Fund Headwinds
In 2025, Quality was the weakest factor, and mid-caps were the weakest market-cap cohort, and this was a double drag on the Fund’s relative performance. Banks were the best-performing industry in 2025, and having no exposure here was also a drag on performance. Our quality criteria, whereby we seek companies with persistently high return on capital, tend to screen out banks since they are often cyclical and have high duration.
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.
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 Sustainable Global Equity Funds are designed to provide exposure to high quality growth companies with sustainable products and practices. The Funds hold a concentrated portfolio of mid-cap companies in any industry and in any region. 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 Quality Mid Cap Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the 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 Funds are 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 Guinness Sustainable Global Equity 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 Funds have 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 Quality Mid Cap Fund
Documentation
The documentation needed to make an investment, including the Prospectus, 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.
This Fund is registered for distribution to the public in the UK but not in any other jurisdiction. In other countries or in circumstances where its distribution is not authorised or is unlawful, the Fund should not be distributed to resident Retail Clients.