Guinness Atkinson Asset Management [profile] is adding a new fund to its product line-up. The Inflation Managed Dividend Fund (GAINX) launched today will seek current income and consistent dividend growth that exceeds inflation.
The fund will be managed by portfolio managers Ian Mortimer and Matthew Page, who have been with the company’s investment team since 2006 and
2005, respectively.
Company Press Release
Woodland Hills, CA, March 28, 2012 – Guinness Atkinson Asset Management, advisor to the Guinness
Atkinson Funds (http://www.gafunds.com/), today announced the launch of the Inflation Managed
Dividend Fund (GAINX), a new equity strategy for investors seeking current income and consistent
dividend growth that exceeds inflation. The fund will be managed by portfolio managers Dr. Ian
Mortimer and Matthew Page, CFA, who have been with the company’s investment team since 2006 and
2005, respectively.
The global strategy, unconstrained by benchmark, utilizes Guinness Atkinson’s proprietary screening
process to identify high quality, cash-generating companies to create a portfolio income stream that
grows faster than inflation.
“Income oriented investors are facing unprecedented challenges in their search for yield while
attempting to manage risk adequately, and the potential threat of rising inflation only compounds
their difficulties,” said Jim Atkinson, CEO of Guinness Atkinson Asset Management. “Our new strategy
is designed to help play a role in meeting this challenge, with a focus on stable, high-quality
companies across the globe that share a common trait: a history of generating consistently high cash
flows and consequently rising dividends which produced an income stream growing faster than the rate
of inflation.”
The fund seeks to invest in high quality, cash-generating and stable companies to construct an
equally-weighted, concentrated portfolio of 35 stocks, diversified by geography and sector. A focus
on companies that have generated consistent, inflation adjusted cash flow return on investment in
excess of 10 percent for ten consecutive years can lead the investment team to a universe of
companies that have flourished even during recessionary periods, while also screening out highly
cyclical companies.
“We feel strongly that our process of identifying stable cash-generating companies is preferable to
a yield-only approach,” said Ian Mortimer, co-manager of the fund. “Encouragingly, the universe of
companies that meets our criteria has been steadily growing, both in absolute size and in global
breadth,” he continued.
The team’s investment process includes screening their universe of equities by valuation, cash-flow,
analyst sentiment, and stock price momentum. The compact portfolio of 35 equally-weighted names
instills a strict sell-discipline to ensure a portfolio of best ideas.
“We are finding opportunities in a wide array of sectors and across the market-cap spectrum,” said
Matthew Page, co-manager of the fund. “This diversification, combined with our disciplined portfolio
construction, may limit stock-specific and sector risk, reinforcing the strategy’s focus on
stability, while still aiming for consistent, inflation-beating growth,” he concluded.
About Guinness Atkinson Asset Management
Guinness Atkinson Funds encompass a range of thematic investments that combine an optimistic
worldview focused on human progress with a systematic investment approach to help investors’
capitalize on long-term investment trends. The Guinness Atkinson Inflation Managed Dividend Fund
joins a suite of seven other no-load mutual fund strategies focused on themes set to transform the
world over the next fifty years and beyond.
The Fund’s investment objectives, risks, charges and expenses must be considered carefully before
investing. The prospectus contains this and other important information about the investment
company, and it may be obtained by calling 800-915-6566 or visiting gafunds.com once it becomes
effective with the Securities and Exchange Commission on or after March 30, 2012. Read it carefully
before investing.
This information is not complete and may change. We may not sell these securities until the
registration statement filed with the Secu¬rities and Exchange Commission is effective. This is not
an offer to sell or buy these securities in any state where the offer or sale is not permitted.
Mutual fund investing involves risk and loss of principal is possible. Investments in foreign
securities involve greater vola¬tility, political, economic and currency risks and differences in
accounting methods. These risks are greater for emerging markets countries. The Fund also invests in
smaller companies, which will involve additional risks such as limited liquidity and greater
volatility. The Fund may invest in derivatives which involves risks different from, and in certain
cases, greater than the risks presented by traditional investments.
Diversification does not assure a profit nor protect against loss in a declining market.
While the funds are no-load, management and other expenses still apply. Please refer to the
prospectus for further details.
Cash Flows are a revenue or expense stream that changes a cash account over a given period.
Cash Flow Return on Investment (CFROI) is a valuation model that assumes the stock market sets
prices on cash flow, not corporate earnings. It is determined by dividing a company’s gross cash
flow by its gross investment.
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