Ashish Swarup has been at Stewart Investors for over five years and has proven his stock selection matches the defensive characteristics targeted by the firm. This fund aims to achieve capital growth over the long-term with capital preservation characteristics, which make it likely to lag strongly rising markets but protect when it matters. Whilst we like the disciplined approach this fund is closed to new investors and takes an identical approach to investing as close peers such as Stewart Investors Global Emerging Markets Sustainability.
The manager employs a fundamental, bottom-up investment approach, targeting companies deemed to have quality in either financials, management and/or franchise. Stock research is conducted by a well-resourced team based in London and Edinburgh. Investment ideas are primarily sourced from company visits, research trips, industry contacts and third party research and typically the team conduct over 1300 company meetings per year. Portfolio holdings typically have strong balance sheets, are cash generative, shareholder friendly and are able to grow their revenues and profits sustainably and predictably. The investment horizon is generally medium to long term and the manager avoids 'momentum' type stocks. The team uses its own proprietary research tools and prefers to meet management of businesses before and when it invests. Decision-making takes into account factors such as quality of research, team decisions and views, and the manager's own knowledge of the companies. Final stock decisions and portfolio construction are the responsibility of the portfolio manager.