Global Quality Mid Cap - October Commentary
Portfolio Manager, Global Team
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.
The third quarter of 2025 saw broad equity market gains as investor sentiment continued to improve following the market trough in early April. The rally has been propelled by ongoing enthusiasm around artificial intelligence (AI), easing trade tensions, and rising expectations of monetary policy easing from the Federal Reserve. Despite complex US macro-economic conditions, market leadership continued to be driven by a narrow set of large-cap US tech businesses with exposure to AI, in addition to a generally solid corporate earnings season.
As shown below, while the market has rebounded sharply since the drawdown that lasted through to 8th April, there has been a stark rotation in leadership. Those factors and sectors that sold off at the beginning of the year – such as speculative growth and Magnificent 7 stocks – have led the subsequent market recovery.
Source: Guinness Global Investors, Bloomberg as of 30.09.2025
In the third quarter, the Fund’s exposure to AI-enabling companies across the IT and Industrial sectors benefited performance greatly after having been a drag in the first four months of the year. Conversely, defensive sectors lagged over the quarter including Consumer Staples and Real Estate. The Fund’s 0% exposure to these areas was also positive for relative performance.
In this commentary, we analyse market drivers over the year to date, report on the fund's leading and lagging stocks in Q3, and highlight the portfolio's positioning and key metrics at the quarter end.
We also consider the Fund's revenue exposure to the AI theme. In some cases, exposure to AI was a headwind during the January sell-off post the DeepSeek announcement. However, since the April lows, this has turned into a tailwind as market jitters have subsequently been offset by strong fundamentals flowing through to the underlying businesses. Overall, we are comfortable with our exposure to data centres and AI through high quality mid-cap stocks. We believe these companies' high growth potential can translate into free cash flow growth whicih can be compounded over time.
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 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.