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
November 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.
October brought an unusual pattern of European equity returns. Many of this year’s market laggards rallied, driven by a rotation out of banks and cyclicals into Consumer Staples and defensives. Amid political and fiscal uncertainty, French equities have de-rated sharply, with the forward price-earnings ratio of the CAC 40 (France’s benchmark index of its 40 largest listed companies) now at approximately 0.85 times that of the MSCI Europe ex UK Index, well below its historical median of 0.94 times. With its bottom-up approach, individual stock picks have seen the Guinness European Equity Income Fund through this period despite its overweight in French equities. A pattern of operationally strong updates from portfolio companies points to resilient activity alongside pockets of more attractive relative valuation, and we see October’s rapid rotation as a source of opportunity for selective, long-term investors. In this commentary we summarise the earnings or updates from the two-thirds of portfolio companies that gave them, the Fund's leading and lagging stocks, and the outlook. Following a further fall in euro-area consumer confidence, we also examine the potential and historical background of a pick-up in the indicator acting as a catalyst for European equities.
Read full commentary
European Equity Income Fund - November Commentary
November 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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