Global Quality Mid Cap - September Commentary
Joseph Stephens Portfolio Manager, Global Team
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Sagar Thanki 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.
Market Overview
August began with a disappointing US jobs report that cast doubt on so-called ‘US exceptionalism’ and the strength of the labour market. Additionally, the increase in core goods prices is the largest rise in over two years, potentially an early sign of tariff pass-through and the fading trend of disinflation.
In the month, concentration in the S&P 500 rose to historic highs, with the largest 10 companies now accounting for roughly 40% of total market value, with shifts in the index increasingly dictated by a narrow group of mega-cap tech stocks driven by AI optimism.
Investor sentiment soured quickly when an MIT report suggested that corporate AI pilots were not yet translating into revenue growth, leading to a three-day sell-off and dragging the S&P 500 lower, even as more defensive areas held firm. Nvidia alone slipped 3.5% in a single session, underscoring the dependency of market-cap-weighted index performance on AI optimism.
Source: Guinness Global Investors, Bloomberg as of 31.08.2025
In this month's commentaries, we highlight several earnings reports released by fund holdings during the month:
Top Contributors
Advanced Drainage Systems, ADS (+17.2% USD on day of earnings) and Spirax Group (+13.7% USD on day of earnings) were the standout performers in August. ADS beat expectations across the board, with a particularly strong EBITDA margin of 33.5% versus the expected 31.7%. Cost efficiencies and favourable pricing helped ease market concerns about competition. Spirax Group's performance was mainly driven by strong results that indicated a potential demand recovery in the biopharmaceutical sector.
Key Detractor
Zebra Technologies (-11.4% USD on day of earnings) was the main detractor, despite reporting solid results and raising full-year guidance, as the market reacted negatively to the $1.3 billion acquisition of Elo Touch Solutions, which might have disappointed some investors hoping for M&A activity in the faster-growth areas of factory and warehouse automation. Despite the drop, management and analysts remain optimistic, citing low valuations and a post-pandemic recovery trajectory.
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 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 Sustainable Global Equity 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.