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STEWART INVESTORS ASIA PACIFIC LEADERS B

STEWART INVESTORS ASIA PACIFIC LEADERS B - Overview

Overview of STEWART INVESTORS ASIA PACIFIC LEADERS B Buy in ISA Buy in Investment Account

The objective of the fund is to grow capital by investing in primarily large-cap companies in the Asia Pacific region (excluding Japan). Fund manager David Gait invests from the bottom-up with an absolute return mindset and without any benchmark constraints. He favours high quality companies identified to be cash generative with strong balance sheets. Engagement with management of portfolio companies is key: Gait and his team make sure that senior managers’ interests are aligned with shareholders. The final portfolio is concentrated, with investments held for the long term.

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

Fund summary

Sector Specialist
Structure OEIC
Launched December, 2003
Size £7,487m
Yield 1.0%
Charging basis Income
Dividends paid 31 Mar, 30 Sep

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.85%
Ongoing charges figure 0.88%

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

Though David Gait only became lead manager of this fund in 2016, he is a First State veteran having worked for the company since 1997 and had already built up a strong track record on its Asia Pacific Sustainability fund, which is run with the same investment mantra. He also benefits from the backing of a strong and stable analyst team. Gait is a cautious investor, prioritising capital preservation more than most of his peers, and as a result tends to outperform in falling markets, but lag when they rise strongly.

Portfolio

Allocation Proportion(%)
Equity 85
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 15
Allocation Proportion(%)
UK 0
Europe 0
North America 2
Japan 10
Pacific 44
Emerging Markets 44
Allocation Proportion(%)
Large Caps 95
Mid Caps 5
Small Caps 0
View all performance data for this fund

Investment process

Manager David Gait employs a fundamental, bottom-up investment approach, targeting companies deemed to have sustainable quality characteristics. Stock research is conducted by a large and well-resourced team based in Edinburgh, London, Sydney and Singapore. Investment ideas are primarily sourced from company visits, research trips, industry contacts and third party research and typically the team conduct over 1300 company meetings per year. Portfolio holdings typically have strong balance sheets, are cash generative, shareholder friendly and are able to grow their revenues and profits sustainably and predictably. The investment horizon is generally medium to long term and Gait avoids 'momentum' type stocks. The team uses its own proprietary research tools and prefers to meet management of businesses before and when it invests. In addition, the team benefits from the resources of First State’s parent company, Commonwealth Bank of Australia. Decision-making takes into account factors such as quality of research, team decisions and views, and the managers own knowledge of the companies. Final stock decisions and portfolio construction are the responsibility of Gait.

Live feed

Bid price(inc) 231.76p
Accum units 735.73p
Fund commentary 10/05/18
Fund data updated on 11/12/18

Asset allocation

Allocation Proportion(%)
Equity 85
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 15

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 0
North America 2
Japan 10
Pacific 44
Emerging Markets 44

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 95
Mid Caps 5
Small Caps 0

Top 10 holdings

As at: 31/10/2018
5.9% Tata Consultancy Services
5.1% Csl Limited (Aud)
4.9% Unicharm Corp
4.8% Tech Mahindra
4.6% Mahindra & Mahindra
4.4% President Chain Store Corp
3.7% Oversea-Chinese Banking Corp
3.6% Ck Hutchison Hldgs Ltd
3.3% Delta Electronics Inc
3% Hong Kong & China Gas Co
Source: Trustnet

Sector breakdown

Consumer Staples 22%
Information Technology 17%
Financials 15%
Cash & Cash Equivalents 15%
Health Care 14%
Industrials 9%
Consumer Discretionary 5%
Utilities 3%
Materials 1%

Portfolio details

Typically 30-60 stocks.

Constraints

Portfolio is relatively unconstrained with CIO limits of a maximum of 30% in any sector. Some limits also apply to country weights. Max 10% in companies under US$1bn market value.
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
13/14 14/15 15/16 16/17 17/18   3 years 5 years Career 3 years 5 years Career
1.37% 0.45% -0.36% -0.70%   0.34% 99.50%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

David Gait

Manager. Gait is a senior portfolio manager with Stewart’s Global Emerging Markets/Asia Pacific (ex-Japan) team having joined the company in 1997. In early 1999, he joined the Asia Pacific (ex-Japan) desk as an analyst, covering Korea, Taiwan and the Indian subcontinent. After a period of subsequent research focusing on China, South-East Asia and non-Asian emerging markets, he now covers all Asian-ex Japan and Emerging Markets, with a specific emphasis on sustainable investment within these asset classes. Gait holds an MA with honours in Economics from Cambridge University, and an MSc in Investment Analysis from Stirling University. He is an Associate member of the UK Society of Investment Professionals.

Track record

David Gait has 12.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.34%. During the worst period of relative performance (from May 2016 - January 2018) there was a decline of 18% relative to the index. The worst absolute loss has been 30%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance
Absolute -30% (December 2007 - October 2008)
Relative -18% (May 2016 - January 2018)

Sector record since January 2006 (13 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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