The Guinness Global Innovators Fund was added to the firm’s Dublin-domiciled UCITS on 20 October. It invests into “innovative” companies with a market cap greater than $500m.
The strategy – which has so far grown from $50m to over $130m in 2014 – has been running since 2003 within the SEC -registered mutual fund range by the firm’s US-based sister company, Guinness Atkinson Asset Management.
“Innovation in their DNA”
Chairman and founder Tim Guinness said the philosophy behind the creation of the US-registered fund – which currently has holdings with eBay, Intel, and State Street – in the US focused on “companies with innovation in their DNA which would be more likely to earn a higher return for longer”.
The new fund will be co-managed by Ian Mortimer and Matthew Page, who are also the current managers of the US-listed fund.
“We look for companies with profitable growth,” said Mortimer. “We’re not interested in chasing the latest fad or paying up for companies whose share prices are only justified by exponential growth rates being achieved for the next ten years.
“If you look at the portfolio today it is only trading at about a 5% premium to the broad market, which we think offers good value.”
The fund is available on Hargreaves Lansdown Vantage for direct investors, and will be added to the Cofunds and Standard Life wrap platforms for professional investors and advisers in the coming weeks. It is understood the fund will be available on further platforms in the coming weeks.
City Financial’s senior investment analyst, Anthony McDonald, said: “Although we caution that the scale of the fund’s recent outperformance is greater than investors should ordinarily expect, we also note that the fund also has a record of navigating a range of conditions relatively well.
“We believe that the fund’s resilience compared to other specialist funds of this nature is a function of the managers’ approach to portfolio construction and their innate valuation awareness.”
Daily pricing begins on 3 November.
