fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Stewart Investors Global Emerging Markets Sustainability B

Global emerging markets fund, which invests in companies that are likely to benefit from and contribute to sustainable development.

  • 442.67p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.90%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.98%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 22 January 2021

The Fund aims to generate attractive long-term, risk-adjusted returns by investing in the shares of those companies which are positioned to benefit from, and contribute to, the sustainable development of the countries in which they operate. Investment decisions around sustainability are based on three key points: Identifying companies who manage sustainability risks and opportunities and those with a positive sustainability impact; Inclusion of environmental, social and corporate governance matters in investment research; Engaging directly with companies on identified sustainability issues.

Fund summary

Sector Specialist
Structure OEIC
Launched April, 2009
Size £415m
Yield 0.80%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.90%
Ongoing charges figure 0.98%

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Investment process

The fund's investment universe is companies operating in the emerging markets or whose business is predominately based in the emerging markets. The investment process will take account of sustainability themes and issues and requires positive engagement with companies in respect of these. A fundamental bottom up approach is used to selecting stocks, targeting companies that offer sustainable and predictable growth with an emphasis on company cash flow and balance sheet strength. The investment outlook is generally medium to long term and avoids 'momentum' type stocks. The fund's mandate means that it will be restricted from investment in some companies, which could impact performance when these areas are driving the market.

Stewart are experienced investors in Asia and Emerging Markets companies. Lead manager Jack Nelson works closely with the more experienced David Gait, who now has wider team responsibilities. The positive engagement tilt in the investment process results in it being classified as mid-green. Due to the cautious nature of the investment process this fund does tend to underperform in rising markets, but the fund has displayed downside protection characteristics in recent years. The fund was soft closed from 2012-18, but following its re-opening we added it to our buylist.

Manager research

Average monthly relative returns

  • 16/17 -0.36%
  • 17/18 -0.46%
  • 18/19 0.78%
  • 19/20 -0.50%
  • 20/21 0.22%

Bestinvest MRI

  • 3 years 0.17%
  • 5 years -0.06%
  • Career 0.08%
  • 3 years 70.90%
  • 5 years 52.40%
  • Career 76.10%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Jack Nelson

Jack Nelson is an Analyst and Portfolio Manager at Stewart Investors. He joined the team in September 2011 and Nelson has co-managed the GEM Sustainability fund since 2014. Nelson holds a first class BA (Hons) in Politics, Philosophy and Economics from Queen’s College, Oxford.

Track record

Jack Nelson has 7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.08%. During the worst period of relative performance (from May 2016 - October 2017) there was a decline of 14% relative to the index. The worst absolute loss has been 18%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 76%.

Periods of worst performance

Absolute -18.00% (July 2019 - March 2020)
Relative -14.00% (May 2016 - October 2017)

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.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

6% Unilever
5.8% Tata Consultancy Services
4.4% Taiwan Semiconductor Manufacturing
4.1% Unicharm Corp
3.9% Vitasoy International Holdings
3.5% Tech Mahindra
3.4% Marico
3.4% Housing Development Finance Corporation Limited
2.4% Pigeon Corp
2.3% Mahindra & Mahindra
Source: Trustnet

Sector breakdown

Consumer Staples 36.00%
Information Technology 27.00%
Financials 9.00%
Cash & Cash Equivalents 9.00%
Health Care 7.00%
Consumer Discretionary 6.00%
Industrials 3.00%
Communications 2.00%

Portfolio

The fund holds approximately 40-60 stocks. They cannot hold less than 30 stocks.

Constraints

Portfolio is relatively unconstrained with CIO limits of a max. 30% in any country and max. 40% in any GICS sector. Max 20% cash. Max 10% in single stock.

Key Investor Information

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