IN FOCUS
FUND
GUINNESS GLOBAL INNOVATORS
While the UK version of this fund is relatively new, it has a proven strategy in the US
and is offering a preferential share class to early investors
innovative development.
They say that “innovation is the
intelligent application of ideas”
and can be found in nearly every
industry and in companies at
different stages of their lifecycle
– it is not just limited to the
disruptive names commonly
associated with Silicon Valley.
The managers are overweight
the US, at 70.9 per cent of the
portfolio, followed by the UK (6.5
per cent) and China and Korea
(both 3.5 per cent). Current top
holdings include Samsung, Lenovo
and Qualcomm.
Mortimer and Page look for
stocks they would be comfortable
holding for at least three to four
years, but have a strict selldiscipline based on balance sheet
strength and ongoing valuations
and believe their high conviction
approach is the key to adding
value.
PERFORMANCE OF FUND
VS SECTOR AND INDEX OVER 5YRS
120%
Off Mt Equity - International (34.72%)
MSCI World (56.90%)
Guinness Atkinson - Global Innovators (109.70%)
100%
80%
60%
40%
20%
0%
Dec
Jun 14
Dec
Jun 13
Dec
Jun 12
Dec
Jun 11
-20%
Dec
MANAGERS: Ian Mortimer &
Matthew Page
FUND SIZE: $49m
LAUNCHED: 30/10/2014
OCF: 0.74%
CROWN RATING: N/A
noting its current managers have
only been running the fund since
2010. Over five years it has almost
doubled its benchmark’s gain of 56
per cent.
There is also a pertinent reason
to look at the fund now – its current
low charges are only available until
its assets under management hit
£50m and they currently stand at
about £30m. Through its Z share
class, the fund’s ongoing charges
figure [OCF] is 0.74 per cent.
High ongoing charges can
hinder performance and while
Guinness Global Innovators is by
no means as cheap as a tracker, it
is significantly cheaper than most
well-known active top performers
in the sector.
The fund invests in an equally
weighted portfolio of about 30
companies that its co-managers
– Ian Mortimer and Sam Page –
believe are undergoing a period of
Jun 10
I
nvesting in active funds with
a global strategy has been
shown to result in consistent
underperformance of the index
over the long term.
Data from FE Analytics shows
that only one in four IA Global
funds has beaten the T