By JANE KOTCHKINA 22/10/2010
First State Asia Pacific Sustainability fund is managed by David Gait, who invests in high quality companies with shareholder friendly management. The fund benefits from the rigorous First State investment process, which is also used by our five star rated First State Asia Pacific Leaders fund. Due to the nature of the investment process we would expect this fund to underperform in strongly rising markets.
Companies in the First State Asia Pacific Sustainability fund are subject to sustainability screening and the fund manager will not invest in arms or tobacco, although the view of what is investable is pragmatic. The manager describes the fund as “mid green”. The fund looks to benefit from the increasing domestic consumption in Asian countries, although is sensitive to company valuations at all times.
Despite the restrictions imposed by the sustainability screening, the fund so far has been able to deliver returns comparable to First State Asia Pacific Leaders fund. Rating upgraded to four stars.