Stewart Investors Asia Pacific Leaders - fund manager change

First Sentier Investors, the parent company of Stewart Investors, has announced that Stewart’s investment management responsibilities have transitioned to FSSA Investment Managers, another of the group’s subsidiaries.

As a result, Jack Nelson and Doug Ledingham, the previous managers of the Stewart Investors Asia Pacific Leaders fund, have left the business.

Martin Lau, part of FSSA, became lead manager of the fund on 14 November and is supported by co-manager Rizi Mohanty.

Lau joined FSSA in 2002 and manages a number of funds that invest across Asia. Mohanty joined FSSA in 2016 and has managed Asia funds since 2020, working closely with Lau.

Why is this change happening?

Sashi Reddy and David Gait, who managed the fund for many years prior to Nelson and Ledingham, left Stewart Investors in August 2025. This led First Sentier Investors to carry out a strategic review of the Stewart Investors business and to the decision that the remaining investment team didn’t have the required experience or resource to manage the group’s funds over the long term.

Stewart Investors’ funds have therefore transitioned to FSSA. The two teams previously worked together as one investment team until splitting in 2015. This means their investment philosophy and process are broadly aligned, with stewardship a core part of the philosophy.

What does this mean for investors?

Given the common approach between investment teams at FSSA and Stewart, there’s a degree of overlap between their funds. Our analysis indicates over 50% of the Stewart Investors Asia Pacific Leaders and FSSA Asia Focus funds is the same.

The new managers will transition the Stewart Investors fund to more closely mirror their existing FSSA fund. This will involve selling companies they don’t have as much conviction in or believe have as much room for long-term growth. FSSA expect around 15%-20% of the fund to transition within the next couple of months, with the remaining changes happening over the coming year.

Although the Stewart and FSSA teams have shared a similar approach, every fund manager has their own views, which means there have been some differences between the two funds. Stewart Investors Asia Pacific Leaders has tended to invest more in India than FSSA Asia Focus, while the opposite is true in China. The extent of this difference has been decreasing recently though and will continue to do so over time.

Our view

The Stewart Investors team saw several changes this year, including losing its two most experienced investors in Gait and Reddy. This was disappointing for a team that has historically been stable, and one whose culture we have historically rated highly.

We continue to have a positive view of the culture at FSSA. The team is led by Martin Lau, who we have long held in high regard as an investor, with his FSSA Asia Focus fund featuring on our Wealth Shortlist. He also puts a lot of thought into mentorship of his colleagues, including fund managers and analysts, as well as succession planning. Fund managers at FSSA also have the option to own a stake in the business, which encourages them to commit to the team for the long term.

We recently met with Lau to discuss the changes to the fund. We’re pleased to see that changes to the fund are being considered carefully. The process is taking place gradually in order to minimise the impact on investors and to manage the associated costs of buying and selling shares. We’ll continue to track these changes over the coming months.

The Stewart Investors Asia Pacific Leaders fund doesn’t currently feature on the Wealth Shortlist. We’ll continue to monitor performance and any changes and inform investors if our views change.

This isn't a recommendation to make any changes to an investment portfolio. Investors should make sure any investments match their investment goals and attitude to risk and are held as part of a diversified portfolio. If you're not sure an investment is suitable for your circumstances, please seek personal advice.

Past performance is not a guide to the future. Source: Lipper IM to 30/11/2025.

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