Stewart Investors Indian Subcontinent Sustainability A

Invests in equities in India, Pakistan, Sri Lanka and Bangladesh.

  • 502.32p
    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?

  • 4.00% 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!

  • 1.75%
    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).

  • 1.96%
    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.

  • 0.10%
    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 29 September 2020, fund data last updated 02 November 2009

The manager invests in a relatively concentrated portfolio of stocks predominantly in India, although the fund can also take limited exposure to other countries in the subcontinent: Bangladesh, Pakistan and Sri Lanka. There is a focus on high quality companies that can grow earnings, which fits in with the relatively conservative approach that is common across the First State fund range. The fund closed to new business in 2011.

Fund summary

Sector Specialist
Structure OEIC
Launched November, 2006
Size £216m
Yield 0.10%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.75%
Ongoing charges figure 1.96%

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Investment process

The manager screens stocks in the region against liquidity and quality criteria to yield to list of around 400-500 stocks, which the manager then distils down to an active watch list of 200 companies. These companies are seen at least once a year, and also aid idea generation. First State carry out detailed fundamental research which includes in-depth balance sheet and cash-flow analysis. Each company is then assigned a target price, and any stock exceeding this price is re-evaluated. The manager believes he adds value by comparing company valuations on a cross-border basis through weekly meetings with the wider emerging markets team, which enables him to place companies into a wider context.

Stewart Investors' team has a strong reputation for having a cautious approach to markets. Therefore they believe in doing their own research and undertake detailed company analysis, and as such have strong research capabilities within Emerging Markets. However, given that India is a less mature market, the fund is likely to be volatile from time to time.

Manager research

Average monthly relative returns

  • 15/16 -0.09%
  • 16/17 -0.39%
  • 17/18 0.43%
  • 18/19 -0.12%
  • 19/20 0.49%

Bestinvest MRI

  • 3 years 0.27%
  • 5 years 0.06%
  • Career 0.38%
  • 3 years 78.20%
  • 5 years 69.90%
  • Career 97.80%

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

Sashi Reddy

Reddy joined Stewart Investors in July 2008. Before joining Stewart Investors, Reddy worked at Irevna Research, an outsourced Indian equities research house from 2005 to 2007. As an analyst covering the small and mid cap European market at Irevna, he was seconded to Credit Suisse First Boston as an associate. Reddy brings with him six years of industry experience, one year of which was gained at First State in a contract role. Reddy has an engineering degree from the National Institute of Technology, Trichy and an MBA from the Schulich School of Business, York University in Toronto.

Track record

Sashi Reddy has 7.7 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 June 2018 - December 2019) there was a decline of 10% relative to the index. The worst absolute loss has been 25%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 98%.

Periods of worst performance

Absolute -25.00% (August 2018 - March 2020)
Relative -10.00% (June 2018 - December 2019)

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

5.9% Mahindra & Mahindra
5.4% Dr Lal Pathlabs Ltd
5.2% Dr Reddys Laboratories
4.5% Tata Consultancy Services
4.5% Marico
4.4% Dabur India
4.4% Godrej Consumer Products
4.4% Tech Mahindra
4.1% Tube Investments Of India
3.7% Housing Development Finance Corporation Limited
Source: Trustnet

Sector breakdown

Consumer Staples 17.00%
Financials 16.00%
Health Care 16.00%
Industrials 16.00%
Information Technology 12.00%
Consumer Discretionary 10.00%
Cash & Cash Equivalents 5.00%
Materials 4.00%
Communications 3.00%

Portfolio

Typically 30 to 60 stocks. Commonality of Indian stocks with First State's Asian and GEMs funds is typically high.

Constraints

Few constraints. Typically diversified by sector. Positions range from 0.5% to 6%.

Key Investor Information

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