Equity Income
Guinness European Equity Income
Overview
The Guinness European Equity Income strategy targets income and capital growth and provides exposure to dividend-paying companies in Europe, excluding the UK.
Dividend-paying companies are well known to outperform the market in the long term, and companies that grow their dividend year-on-year even more so. The well-established culture of European dividend investing can be traced back to the 17th century.
Europe includes a diversified mix of developed, high-income economies and is home to around 700m people. It is home to a wealth of companies committed to distributing European dividends to shareholders, reflecting good capital discipline on the part of management teams.
The Guinness European Equity Income Fund seeks to identify the best opportunities for income and capital growth with a concentrated portfolio of quality European stocks with high returns on capital.
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Excluding the UK can help investors with existing exposure to London-listed stocks or a separate UK allocation. By selecting sustainable European stocks from a broad range of industries, countries and market capitalisation, a well-diversified portfolio can provide a reasonable dividend yield and growing income stream at an attractive valuation relative to the broad market.
Why invest in a European Equity Income fund?
- Focus on consistent high return on capital – This is a good indication of a company's ability to pay healthy dividends. The Fund invests in companies that are unusually consistent in generating returns on capital above their cost of capital.
- Growth and income – Dividend investing focuses on companies that can sustainably grow their dividend, rather than simply looking for companies with a high dividend yield.
- High conviction – The Fund invests in 30 equally weighted companies, balancing the benefits of diversification with the ability of each company to contribute meaningfully to performance. This structure produces a portfolio that is truly differentiated from the benchmark index.
- Fundamentally driven – By focusing on 'bottom-up' stock selection, rather than trying to make decisions based on an expected outlook for the world economy, the Fund invests in good companies that may have fallen out of favour in the short term but can weather most economic environments.
- Low turnover – A typical holding period of an individual company is between three and five years. Investing for the long term recognises the costs of trading in and out of securities.
- Repeatable and independent – A clear, robust and transparent investment process filters out the noise and focuses on the true signals that drive company valuations. By performing their own research and analysis using their own proprietary modelling systems, the team seeks to avoid some of the behavioural biases associated with being unduly influenced by market sentiment.
The Guinness European Equity Income Fund could be suitable for investors that are looking for the combination of growth and income that European stocks can offer, or as a core holding in a European equity allocation.
Fund Facts
- Launch Date
- 19.12.2013
- Fund Managers (start date)
- Will James (15.01.2024)
- Benchmark
- MSCI Europe ex UK
- IA Sector
- IA Europe Excluding UK
- ISIN
- IE00BYVHVZ98
- SEDOL
- BYVHVZ9
- BLOOMBERG
- GUEEYGA ID
- Underlying currency
- USD
- Pricing
- Daily, forwards
- Valuation
- 23:00 Dublin time
- Deal cut off time
- 15:00 Dublin time
- Administrator
- Waystone Administration Solutions (IE) Limited
- UK Reporting Fund Status
- Yes
- ISA Eligible
- Yes
0.77%
None
Fund Registration
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Commentary
October Commentary
This is a marketing communication. Please refer to the prospectus, supplement, KIDs and KIIDs for the Funds (available on this website), which contain detailed information on their characteristics and objectives and full information on the risks, before making any final investment decisions.
Overall, markets were more subdued in Q3 2026 following the strong rebound in Q2. European equities faced a difficult combination of modest growth, higher energy prices and rising interest rates. Although the MSCI Europe ex UK Index fell around 2% in Q3 (in EUR), it remained up around 9% year-to-date. However, year-to-date performance was highly dispersed within the index. Energy and Information Technology were the two strongest sectors, returning 53.9% and 43.2% respectively. The total return breakdown below shows that the majority of the return in both cases came from higher earnings expectations. Europe has several potential positives, including more fiscal spending in Germany and reform of the financial system, but political uncertainty and economic imperfections are back in focus. As so often in the past, these moments should prove to be an opportunity. While the near term is likely to stay volatile, we remain patient, prudent and positive, focused on owning high-quality businesses that generate cash, pay dividends and now trade at increasingly attractive absolute and relative valuations. In this commentary, we review the market in Q3, discuss the portfolio’s positioning and its top and bottom performers, and comment on the outlook.
Read full commentary
Guinness European Equity Income Fund - October Commentary
October 2026
Performance
Portfolio
Top 10 Holdings
As at 30 Oct 2026
Source: Guinness Global Investors. Holdings and exposures may be subject to change
Top 10 Holdings
As at 30 Oct 2026
Source: Guinness Global Investors. Holdings and exposures may be subject to change
Literature
INSIGHTS IN FOCUS
Europe is not just a place for your summer holiday
Will James, co-manager of the Guinness European Equity Income strategy, argues that Europe's economic and market backdrop make it an attractive destination for equity investors.
Equity Income | 9 May 2024 | 5 min read
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