The managers will seek to understand the company’s business model and potential risks faced. Only the best companies will make it into the final concentrated portfolio.
Guinness Global Innovators fund is generally long term, with a low turnover and an average holding period of three to five years.
Like all Guinness funds, the portfolio is made up of 30 equally-weighted stocks. The managers trim winners and top up underperformers. There is a strict ‘one in, one out’ policy. The fund is genuinely index agnostic, although the portfolio is regularly monitored for concentration risk.
The fund has generally had a high weighting in technology companies (historically 40 per cent to 50 per cent of the portfolio) and has almost nothing in financials, utilities, materials, energy, real estate or consumer staples.
Performance has been stellar, with the fund returning 128.9 per cent since launch, compared with 80.1 per cent for the IA Global sector. It is up 21.5 per cent year to date, while its average peer is up 5.2 per cent. The fund has an ongoing charges figure of 0.99 per cent.
Armed with two experienced managers, this fund is well positioned to take advantage in a period of significant change in the global economy by tapping into a series of trends and identifying the businesses which will thrive in the future.
Darius McDermott is managing director of FundCalibre