fund
Stewart Investors Latin America B GBP
A multi-cap fund investing in quality Latin American equities.
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260.55p
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.
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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?
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4.00% 0.00%
Initial chargeSome 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!
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1.00%
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).
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1.09%
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.
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1.50%
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…
A focused, multicap portfolio of high quality Latin American equities. They favour stocks with long-term growth prospects, trading at reasonable valuations. This investment style has tended to provide greater downside protection relative to stock market indices, although it can also lead it to lag in strongly rising markets. The fund is likely to remain underweight the largest index stocks as the team tend to find most opportunity in the mid caps, especially in Brazil and Mexico. Brazil dominates the Latin American Index.
Fund summary
| Sector | Specialist |
| Structure | OEIC |
| Launched | April, 2009 |
| Size | £124m |
| Yield | 1.50% |
| 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 | 1.00% |
| Ongoing charges figure | 1.09% |
Allocation
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Investment process
The Emerging markets and Asian team at First State considers about 300 Latin American companies investable out of a universe of >1100. The manager's focus is on quality and valuation. An evaluation of company reputation, franchise, company financials, shareholder rights, corporate governance and balance sheet strength narrows the list of investable stocks to about 100 companies. Many ideas are found in the mid caps (market cap $1bn to $5bn) and although some companies have a limited free float, First State's focus on quality and low valuation can be expected to reduce the risks associated with investing in illiquid stocks. The manager pays little attention to the composition of the regional benchmarks and as a result the fund is expected to retain a bias to mid caps. The fund should also retain exposure to smaller markets like Peru, although generally it will mostly invest in Brazil and Mexico which are the deepest and broadest local markets.
This fund benefits from the experience of the Stewart Investors team known for its thorough investment process, which favours good quality companies. The mandate is more orientated towards domestic sectors and rising middle class consumer in the Latin American region and is skewed towards mid and small companies. Stewart Investors believe that the region’s markets will become more diversified in future as small and mid sized companies outside the resources sector will grow to represent more of Latin America’s market capitalisation. From 1st January 2012, the fund was soft-closed to new investors due to capacity constraints, which means the full initial charge will apply to any new investments.
Manager research
Average monthly relative returns
- 16/17 0.00%
- 17/18 0.29%
- 18/19 -0.15%
- 19/20 -0.65%
- 20/21 0.35%
Bestinvest MRI
- 3 years -0.15%
- 5 years 0.00%
- Career -0.08%
- 3 years 46.40%
- 5 years 0.00%
- Career 52.00%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Dominic St George
St George joined the Stewart Investors team as a graduate in November 2010. He holds a BA in Geography from Christ’s College, Cambridge.
Track record
Dominic St George has 4.5 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 April 2020 - December 2020) there was a decline of 13% relative to the index. The worst absolute loss has been 39%.
Periods of worst performance
| Absolute | -39.00% (July 2019 - March 2020) |
| Relative | -13.00% (April 2020 - December 2020) |
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
| 6.9% | Inversiones Aguas Metropolitanas |
| 6.6% | Compania Cervecerias Unidas Sa |
| 6.3% | Quinenco Sa |
| 6.3% | Fomento Economico Mexcano Sab De Cv |
| 5.4% | Grupo Herdez Sab De Cv |
| 4.9% | Klabin Sa |
| 4.3% | Kimberly-Clark De Mexico Sab De Cv |
| 3.9% | Raia Drogasil Sa |
| 3.8% | Banco Bilbao Vizcaya Argentaria Sa |
| 3.5% | Grupo Lala Sab De Cv |
| Source: Trustnet |
Sector breakdown
| Consumer Staples | 41.00% |
| Industrials | 14.00% |
| Financials | 14.00% |
| Utilities | 10.00% |
| Materials | 10.00% |
| Consumer Discretionary | 7.00% |
| Cash & Cash Equivalents | 4.00% |
Portfolio
Typically 30 stocks. Structurally underweight the largest benchmark stocks. High degree of commonality with Lat. Am. exposure in First State's GEMs funds.
Constraints
High conviction positions are normally maximum 5% of the fund, but can be higher.
Key Investor Information