Stewart Investors Indian Subcontinent Sustainability Fund Class B (Accumulation) GBP

Asia-Pacific Equities

Rated Fund 2019-20. Stellar India fund

Stewart Investors Indian Subcontinent Sustainability has trodden water over the past year, but we retain our conviction in it because of its superior long-term performance record and stable management team. We also like its focus on firms positioned to benefit from and contribute to sustainable development.

It is suitable for investors attracted by the long-term growth opportunities in India but willing to take on the extra risk that investing primarily in a single-country emerging market fund entails. The fund benefits from a strong and experienced 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 has been involved with the fund since 2008.

They follow a consistent process that focuses on quality, earnings growth and valuation. Their focus on quality 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. India accounts for 80% of assets, which have grown in value from £286 million to almost £300 million over a year.

We are not alone in being attracted to this fund. Darius McDermott, managing director at FundCalibre, the fund ratings and research provider, deems it “one of the very best Indian equity funds around”. India is his favoured emerging market because of its favourable demographics, entrepreneurial and well-educated society and very pro-business Narendra Modi-led government.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Stewart Investors Indian Subcontinent Sustainability Fund Class B (Accumulation) GBP
Manager
First State Investments (UK) Ltd
Type
Open Ended Investment Company
ISIN
GB00B1FXTG93
Sector
Specialist
Launched
09/11/2012
OCF
1.13 %
Risk Rating
1
3 Year Sharpe
-0.04
3 Year Alpha
-0.35
Yield
0.1 %
Benchmark
MSCI India NR USD
The Fund aims to achieve long-term capital growth. The Fund will comprise investments in a diversified portfolio of companies of the Indian subcontinent. The Fund concentrates on securities that are listed, traded or dealt in on Regulated Markets in the Indian subcontinent and instruments issued by companies established, operating or having a predominant part of their economic activities in the Indian subcontinent and listed on other Regulated Markets.
Holding %
Tech Mahindra Ltd 6.12 %
Housing Development Finance Corp Ltd 5.66 %
Tata Consultancy Services Ltd 5.26 %
Marico Ltd 5.24 %
Kotak Mahindra Bank Ltd 5.09 %
Dr. Lal PathLabs Ltd 4.98 %
Dabur India Ltd 4.44 %
Mahindra & Mahindra Ltd 4.38 %
Tube Investments of India Ltd Ordinary Shares 3.90 %
Godrej Consumer Products Ltd 3.77 %
Region %
Asia - Emerging 100.00 %
Sector %
Financial Services 24.70 %
Consumer Defensive 18.92 %
Industrials 16.34 %
Technology 12.39 %
Healthcare 11.78 %
Consumer Cyclical 9.01 %
Name
First State Investments (UK) Ltd
Address
EC2M 7EB, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

David Gait
Joined 08/01/2012

David is responsible for leading the Stewart Investors Sustainable Funds group and generating investment ideas across all sectors in emerging and developed markets. David Gait joined the company in 1997. David holds an MA with honours in Economics from Cambridge University, and holds a Master of Science in Investment Analysis from Stirling University.

Sashi Reddy
Joined 08/01/2012

Sashi Reddy joined the team in August 2007 and is responsible for generating ideas across the Stewart Investors Sustainable Funds group. Before joining the company, Sashi worked at Irevna Research, an Indian equities research house from 2005 to 2007. Sashi brings with him 13 years of experience, ten years of which were in the financial services industry. 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.

Data provided by Morningstar.

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