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Stewart Inv Asia Pacific Leaders Sustainability Class B - Income (GBP)

Sell:331.55p Buy:331.55p Change: 0.99p (0.30%)
Prices as at 3 December 2021
Change: 0.99p (0.30%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 3 December 2021
Change: 0.99p (0.30%)
Prices as at 3 December 2021
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

This fund aims to provide long-term growth by investing across Asia Pacific markets, including India and Taiwan. Its greater exposure to Japan differentiates the fund from many other Asia Pacific funds. The fund could be used to provide key exposure to Asia, and provides a way to diversify a global investment portfolio. Exposure to emerging markets adds risk and the associated volatility should be taken into account when constructing a long-term portfolio.

We hold David Gait and the team behind the fund in high regard. We like the fact they have lots of experience. They've invested in Asian stock markets and used the same investment process for many years, and it's helped them build a good track record.

We think this fund will do well over the long run. That said, we currently favour other Asian funds that use a similar process, have performed better in recent years and are available at lower cost.

Our view on the sector

Asia is home to some of the most dynamic economies in the world and has the potential to grow strongly over the long term. Funds in this sector invest in more mature economies like Korea, Taiwan, Hong Kong and Singapore together with emerging economies such as the Philippines and Indonesia. Some also invest in other developed economies such as Australia. The region is home to some of the biggest economies in the world, like China and India, and a growing middle class means they're less reliant on exporting to the West. Domestic consumption and the growing use of technology could help drive the next phase of their growth. We think Asia is home to plenty of good investment opportunities but it's a higher-risk area to invest so a long-term approach is needed.

Performance Analysis

The chart to the right initially shows David Gait's record managing the Stewart Investors Asia Pacific Sustainability Fund. It subsequently shows performance of the Stewart Investors Asia Pacific Leaders Fund since he was made lead manager.

David Gait and the team at Stewart Investors have performed much better than the broader Asian stock market over the long run. Our analysis suggests they've done a good job of investing in companies that have gone on to perform well in different market conditions. Their conservative investment approach comes into its own in falling markets when the fund tends to offer some shelter. It might not perform as strongly when markets are rising quickly though.

Investment Philosophy

Stewart Investors and its fund managers have based their approach on the same investment philosophy that dates back to 1988. The philosophy is founded on stewardship, and the team invests investors' capital as though it's their own. They aim to grow investors' wealth over the long term, while limiting losses when markets fall.

Sustainability issues form a core part of the investment strategy. Gait focuses on companies he believes could benefit from and contribute to the sustainable development of the countries they're based in.

Process and Portfolio Construction

Gait invests in quality companies he believes can deliver sustainable and predictable growth over the long term. He likes cash-generative businesses, which are in good financial health and could withstand periods of economic volatility. The manager also puts emphasis on businesses' people and culture, and only invests in companies he believes are run by management teams with integrity.

Gait focuses on sectors that are typically more defensive, which means they're expected to hold up a bit better when markets are weaker. This includes the consumer staples and healthcare sectors, which tend to sell products and services that people often continue to buy, regardless of what's going on in the wider economy.

While the manager finds some of the most attractive long-term opportunities in places such as India and Taiwan, the fund also has more invested in Japan than most Asia Pacific funds. Funds in the IA Asia Pacific ex Japan sector can invest up to 5% in Japanese companies. However, over the years Gait has found an increasing number of high-quality companies that are located in Japan, but carry out most of their business within Asia, particularly China. To invest more in Japan and provide additional flexibility, the fund is in the IA Specialist sector.

question mark Manager Track Record Based on HL Quantitative Research

  • Stewart Investors Asia Pacific...
  • Stewart Inv Asia Pcific Ldrs...
  • FTSE AW Asia Pacific ex Japan TR...

Fund Track Record

03/12/16 to 03/12/17 03/12/17 to 03/12/18 03/12/18 to 03/12/19 03/12/19 to 03/12/20 03/12/20 to 03/12/21
Annual return 12.78% 10.44% 2.00% 19.34% 17.49%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

First State Investments originates from Australia and is part of the Commonwealth Bank of Australia. First State offers a range of funds across areas including Asia, emerging markets, global resources, global equities, property securities and infrastructure. As fund managers, their expertise has been noted in specialist areas like Asia and emerging markets where First State has recruited some of the industry's most talented investment professionals.

Information about the fund

Fund manager biography

manager photo
Manager Name: Sashi Reddy
Manager start date: 1 July 2016
Manager located in: Singapore

Sashi Reddy is a Portfolio Manager with the Sustainable Funds Group at Stewart Investors. He sits on the Stewart Investors Board. He joined the team in August 2007. Sashi is lead manager of the Worldwide Leaders Sustainability strategy and the Indian Subcontinent Sustainability strategy. Previously, he worked at Irevna Research, an Indian equities research house from 2005 to 2007. Sashi has an engineering degree from the National Institute of Technology, Trichy and an MBA from the Schulich School of Business, York University in Toronto.

manager photo
Manager Name: David Gait
Manager start date: 1 July 2016
Manager located in: Sydney

David is a Managing Partner of Stewart Investors and sits on the Stewart Investors Board. He is Head of the Sustainable Funds Group and a Portfolio Manager. David joined the team as a graduate in 1997. He is lead manager of Asia Pacific Sustainability strategies, as well as Pacific Assets Investment Trust. David holds an MA with honours in Economics from Cambridge University, and holds a Master of Science in Investment Analysis from Stirling University.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account