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STEWART INVESTORS ASIA PACIFIC LEADERS SUSTAINABILITY B

STEWART INVESTORS ASIA PACIFIC LEADERS SUSTAINABILITY B - Overview

Overview of STEWART INVESTORS ASIA PACIFIC LEADERS SUSTAINABILITY B

The objective of the fund is to grow capital by investing in primarily large-cap companies in Asia and Australasia that are positioned to benefit from, and contribute to, the sustainable development of the countries in which they operate. Fund manager David Gait invests from the bottom up with an absolute return mindset and without any benchmark constraints, allowing him to buy any company that generates the majority of its revenue from the region. He favours high quality companies identified to be cash generative with strong balance sheets. Engagement with management of portfolio companies is key: Gait and his team make sure that senior managers’ interests are aligned with shareholders. The final portfolio is concentrated, with investments held for the long term.

  • Standard Initial Charge 4.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Specialist
Structure OEIC
Launched December, 2003
Size £7,331m
Yield 0.3%
Charging basis Income
Dividends paid 31 Mar, 30 Sep

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.85%
Ongoing charges figure 0.85%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Though David Gait only became lead manager of this fund in 2016, he is a Stewart Investors veteran, having worked for the company since 1997 and had already built up a strong track record on its Asia Pacific Sustainability fund, which is run with the same investment mantra. He benefits from the backing of a strong and stable analyst team. Gait is a cautious investor, prioritising capital preservation more than most of his peers, and as a result tends to outperform in falling markets, but lag when they rise strongly. His portfolios have a structural bias to India and away from China.

Portfolio

Allocation Proportion(%)
Equity 88
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 12
Allocation Proportion(%)
UK 0
Europe 0
North America 1
Japan 14
Pacific 36
Emerging Markets 49
Allocation Proportion(%)
Large Caps 96
Mid Caps 4
Small Caps 0

View all performance data for this fund

Investment process

The manager employs a fundamental, bottom-up investment approach, targeting companies deemed to have quality in either financials, management and/or franchise. In addition to this he analyses the sustainability of each business with a focus on those that are positive to the social and economic aspects of the country in which they operate. Stock research is conducted by a well-resourced team based in Australia, Singapore, London and Edinburgh. Investment ideas are primarily sourced from company visits, research trips, industry contacts and third party research - 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.

Live feed

Bid price(inc) 328.59p
Accum units 1,066.48p
Fund commentary 24/02/21
Fund data updated on 21/09/21

Asset allocation

Allocation Proportion(%)
Equity 88
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 12

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 0
North America 1
Japan 14
Pacific 36
Emerging Markets 49

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 96
Mid Caps 4
Small Caps 0

Top 10 holdings

As at: 31/07/2020
5.7% Unicharm Corp
5% Hoya Corp
4.7% Taiwan Semiconductor Manufacturing
4.6% Tata Consultancy Services
4.4% Csl
4.4% Mahindra & Mahindra
3.9% Tech Mahindra
3.6% Housing Development Finance Corporation Limited
3.2% President Chain Store Corp
3% Marico
Source: Trustnet

Sector breakdown

Information Technology 25%
Consumer Staples 22%
Health Care 16%
Financials 11%
Cash & Cash Equivalents 10%
Industrials 6%
Consumer Discretionary 4%
Materials 3%
Communications 2%

Portfolio details

Typically 30-60 stocks.

Constraints

Portfolio is relatively unconstrained with limits of a maximum of 30% in any sector. Some limits also apply to country weights. Max 10% in companies under $1bn market value.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.

Average monthly relative returns Bestinvest MRI
16/17 17/18 18/19 19/20 20/21   3 years 5 years Career 3 years 5 years Career
-1.01% 0.76% 0.19% -0.29% 1.08%   0.33% 0.15% 0.38% 81.30% 77.30% 99.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

David Gait

Manager. Gait is based in Australia and is a veteran at Stewart Investors where he is the head of the ‘Sustainability Funds Group’. Originally joining as an analyst in 1997, Gait launched his own Asia Pacific fund in 2005 which had an emphasis on sustainable investments within the asset class. Gait holds an MA with honours in Economics from Cambridge University, and an MSc in Investment Analysis from Stirling University. He is an Associate member of the UK Society of Investment Professionals.

Track record

David Gait has 15.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.38%. During the worst period of relative performance (from May 2016 - January 2018) there was a decline of 18% relative to the index. The worst absolute loss has been 33%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance
Absolute -33% (December 2007 - November 2008)
Relative -18% (May 2016 - January 2018)

Sector record since January 2006 (16 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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