Stewart Investors Asia Pacific Leaders Class B - Income (GBP)

The fund has performed better than the broader Asian stock market over the long run, although performance has been weaker more recently. Most performance is attributable to the previous fund managers, with Doug Ledingham and Jack Nelson assuming responsibilities for the fund in August 2025. Our analysis suggests the team at Stewart have done a good job of investing in companies that have gone on to perform well in different market conditions. Their conservative investment approach has come into its own in falling markets when the fund’s tended to offer some protection. It might not perform as strongly when markets are rising quickly though.

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.

Ledingham and Nelson invest in quality companies they believe can deliver consistent and predictable growth over the long term. They like cash-generative businesses, which are in good financial health and could withstand periods of economic volatility. The fund managers also put emphasis on businesses’ people and culture, and only invest in companies they believe are run by management teams with integrity.

The fund has typically focused on sectors that are 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. The fund invests in a relatively small number of companies, which increases risk.

While the managers find some of the most attractive long-term opportunities in 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. Over the years the Stewart team have found an increasing number of high-quality companies that are located in Japan but carry out most of their business across Asia. To be able to invest more in Japan and provide additional flexibility, the fund is in the IA Specialist sector.