Guinness Asset Management plans to launch a passive version of its global equity income fund on the US market.
The new exchange traded fund (ETF) pricing is yet to be decided and will be launched next month, managed by Matthew Page and Ian Mortimer via its US-based sister company, Guinness Atkinson Asset Management.
This represents a shift for the traditionally actively managed house in London, run by chief executive Tim Guinness. Page and Mortimer currently co-manage the Guinness Global Equity Income fund, which invests in a diverse array of stocks in consumer goods, industrials, financials, health care and other sectors that pay dividends.
The active fund was launched in 2010 and is $51 (€38) million in assets. It benches itself against the MSCI World index, which it has failed to beat in terms of annualised returns over two years. It has an ongoing charge of 1.99 percent, and the ETF would likely be a cheaper version of the active fund.
It is anticipated that the “smart” ETF will track global stocks with a value tilt.
The product will launch in the US initially but may list in the UK if the product is successful.