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STEWART INVESTORS INDIAN SUBCONTINENT SUSTAINABILITY B

STEWART INVESTORS INDIAN SUBCONTINENT SUSTAINABILITY B - Overview

Overview of STEWART INVESTORS INDIAN SUBCONTINENT SUSTAINABILITY B Buy in ISA Buy in Investment Account

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.

  • Standard Initial Charge 4.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Specialist
Structure OEIC
Launched November, 2012
Size £276m
Yield 0.2%
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 1.20%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

First State's Emerging Market 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. Nevertheless we have confidence that this fund will add value relative to the peer group over the medium to longer term.

Portfolio

Allocation Proportion(%)
Equity 93
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 7
Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 0
Pacific 0
Emerging Markets 100
Allocation Proportion(%)
Large Caps 59
Mid Caps 24
Small Caps 17
View all performance data for this fund

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.

Live feed

Bid price(inc) 249.99p
Accum units 249.99p
Fund commentary
Fund data updated on 19/03/19

Asset allocation

Allocation Proportion(%)
Equity 93
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 7

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 0
Pacific 0
Emerging Markets 100

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 59
Mid Caps 24
Small Caps 17

Top 10 holdings

As at: 28/02/2019
7% Tech Mahindra
5.8% Tata Consultancy Services
5.2% Marico
4.9% Cyient Ltd
4.9% Mahindra & Mahindra
4.8% Dr Reddys Laboratories
4.8% Housing Development Finance Corporation Limited
4.5% Dabur India
4% Kotak Mahindra Bank
3.2% Cipla
Source: Trustnet

Sector breakdown

Financials 19%
Information Technology 18%
Consumer Staples 17%
Health Care 13%
Cash & Cash Equivalents 12%
Consumer Discretionary 7%
Industrials 7%
Materials 2%
Communications 2%
Real Estate 2%

Portfolio details

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%.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.

Average monthly relative returns Bestinvest MRI
14/15 15/16 16/17 17/18 18/19   3 years 5 years Career 3 years 5 years Career
1.13% 0.86% -0.16% -0.13% 0.26%   -0.01% 0.39% 0.43% 59.90% 96.70% 98.90%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Sashi Reddy

Manager. 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 6.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.43%. During the worst period of relative performance (from November 2016 - October 2017) there was a decline of 8% relative to the index. The worst absolute loss has been 17%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 99%.

Periods of worst performance
Absolute -17% (May 2013 - August 2013)
Relative -8% (November 2016 - October 2017)

Sector record since January 2013 (6 yrs)




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.

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