Stewart Investors Indian Subcontinent Sustainability Fund Class B (Accumulation) GBP
New for 2019. Stellar Indian fund
India recovered from the Asian market selloff to end last year in barely negative territory. Stewart Investors Indian Subcontinent outperformed the index with a 3% rise.
It has taken a spot in our Rated Funds for 2019, replacing Jupiter India. The incoming fund has a very stable and superior long-term performance record among 17 specialist funds that focus on India.
The fund benefits from a strong and experienced management team backed by a solid research group. The key man on the fund is Sashi Reddy, who has been involved with this strategy since 2009. Co-manager David Gait supports Reddy on portfolio construction duties here. The duo has worked together on the fund since 2009.
They follow a consistent process that focuses on quality, earnings growth and valuation. Their focus on high-quality businesses can result in short-term underperformance, but it has helped protect investors in difficult market conditions.
Their high-conviction approach makes this a concentrated portfolio of 30-40 holdings. The fund invests in companies in India, Bangladesh and Sri Lanka, with India accounting for two thirds of the fund’s £280 million in assets.
The fund is suitable for investors attracted by the long-term growth opportunities in India who are willing to take on the extra risk of investing in what is essentially a single-country emerging markets fund.
We are not alone in being attracted to this fund. Jonathan Miller, director for manager research ratings at Morningstar, regards it an “excellent option in this space”, while Darius McDermott, managing director at FundCalibre, the fund ratings and research provider, deems it “one of the very best Indian equity funds around”.
Narrative and ratings content all as of January 2019.See all Money Observer rated funds
|Tech Mahindra Ltd||6.05 %|
|Tata Consultancy Services Ltd||5.90 %|
|Marico Ltd||5.54 %|
|Housing Development Finance Corp Ltd||5.23 %|
|Dr Reddy's Laboratories Ltd||5.11 %|
|Mahindra & Mahindra Ltd||4.85 %|
|Cyient Ltd||4.41 %|
|Dabur India Ltd||4.26 %|
|Kotak Mahindra Bank Ltd||4.15 %|
|Godrej Consumer Products Ltd||3.44 %|
|Asia - Emerging||100.00 %|
|Financial Services||21.93 %|
|Consumer Defensive||21.42 %|
|Consumer Cyclical||5.52 %|
Sashi Reddy joined First State Investments’ Global Emerging Markets/ Asia Pacific (ex-Japan) team in July 2008. Sashi is an investment analyst, responsible for providing research support to portfolio managers and will have a main focus on Indian equities. Before joining First State Sashi worked at Credit Suisse First Boston from 2005 to 2007 as an analyst covering the small and mid cap European market. He also worked with Irevna, an outsourced Indian equities research house. Sashi brings with him six years of industry experience, one year of which was gained at First State in a contract role. Sashi has an engineering degree from the National Institute of Technology, Trichy and an MBA from the Schulich School of Business, York University in Toronto.
David Gait is Senior Portfolio Manager with First State Investments’ Global Emerging Markets/Asia Pacific (ex-Japan) team, having joined the company in 1997. David took on portfolio manager responsibilities in December 2005 managing the First State Asia Pacific Sustainability Fund. In August 2008 he was appointed lead portfolio manager of the First State India Subcontinent Fund. In early 1999, he joined the Asia Pacific (ex-Japan) desk as Senior Analyst. Having initially covered Korea, Taiwan and the Indian Sub-continent until the end of 2000, he then focused his research efforts on China and South-East Asia. David now covers all emerging markets with a specific focus on SRI and macro research. David holds an MA with honours in Economics from Cambridge University, and holds a Master of Science in Investment Analysis from Stirling University. He is an Associate member of the UK Society of Investment Professionals.
Data provided by Morningstar.
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