Stewart Investors is adding a further emerging markets fund to its range of sustainability strategies, managed by Jack Nelson.
The Stewart Investors Global Emerging Markets (ex-China) Leaders Sustainability fund is a long only equity UCITS fund that will invest in companies outside of mainland China seeking those with “exceptional cultures, strong franchises, and resilient financials”. It will exclude companies that derive the majority of their revenue from China. There has been increasing appetite from investors to separate China from emerging markets funds amid concerns over perceived investment risk and volatility in the region.
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Portfolio manager Nelson said: “Emerging markets are a melting pot for forward-thinking and innovative companies contributing positively to sustainable development. Underpinned by our bottom-up approach to stock picking, there is a real opportunity in the years ahead to deliver quality returns by investing with responsible stewards who are growing resilient franchises. This latest fund will enable us to continue on this journey and support our investors as they look to benefit from the many tailwinds in emerging markets.”
The portfolio will consist of 25-45 mid to large-cap holdings.
Earlier this year, Stewart Investors marked the 15-year anniversary of its Global Emerging Markets Sustainability (GEMS) All-Cap strategy, which has around £665m in assets under management, according to Morningstar. Since the start of 2020 to 30 June 2024, the fund has returned 16% compared to Morningstar’s Global Emerging Markets Equity category return of 2%.
The firm also runs the Global Emerging Markets Leaders Sustainability and Asia Pacific Leaders Sustainability funds.
