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Stewart Investors launches Indian Subcontinent Sustainability Fund for global investors
London, 19th January 2023: Stewart Investors, an active, long-only equity specialist focused on sustainable investing since 2005, has launched an Indian subcontinent sustainability fund for global investors. Stewart investors has been investing in the Indian subcontinent since 1991 and launched their first dedicated Indian subcontinent sustainability strategy in 2006. Their new Indian subcontinent sustainability fund will be an addition to the company’s existing global suite of sustainability funds.
The new fund is available as an Irish domiciled VCC for investors in the UK, European Economic Area, Switzerland and Asia. The fund is a long-term, equity-only fund, investing in high-quality companies across the Indian subcontinent that are positioned to contribute to, and benefit from, sustainable development. Managed by Sashi Reddy and David Gait since its inception, the fund leverages the team’s expertise and strong track record of investing across Asia.
The Stewart Investors Indian Subcontinent Sustainability Fund (VCC) will focus on delivering strong absolute returns over cycles and invest in companies based in, or where the majority of the company’s activities take place in, the Indian subcontinent region. It can hold between 30 to 60 investments at one time, with current top holdings including Mahindra & Mahindra, CG Power and Tube Investments.
The current Stewart Investors Indian Subcontinent Sustainability Strategy has assets under management globally of USD627m, and an above benchmark cumulative return of 59% over a 5 year period, 248% over a 10 year period and 633% since the launch of the strategy*. It has a Morningstar Rating of “Gold”. Morningstar, a leading provider of independent investment research, highlights the strategy as “best of breed” for its investment mandate. By focusing on investing in quality companies via a bottom-up approach, the fund aims to provide capital preservation and growth, as demonstrated by its long-term performance.
Stewart Investors is supported by an investing heritage dating back to 1988. The team aims to achieve positive social and environmental outcomes by investing in, and proactively engaging with, companies which support positive contributions, such as health and wellbeing, financial inclusion, reducing waste, water and energy efficiency, and renewable energy, and avoiding companies that participate in harmful and controversial practices.
Sashi Reddy, Portfolio Manager, Stewart Investors said: “Our investment philosophy strives to identify competent stewards who build and manage growing, resilient franchises. We believe that bottom-up analysis and a focus on fundamental quality and sustainable growth tailwinds is the best way to deliver sound, risk-adjusted, long-term returns. And our experience as regional investors helps us better navigate the risks and opportunities presented to us in a dynamic developmental ecosystem. We remain excited for the strategy’s potential to continue to deliver quality returns for decades to come.”
David Gait, Portfolio Manager, Stewart Investors said: “The Indian subcontinent is home to some of the world’s biggest sustainable development challenges. The region will have no choice but to leapfrog many of the phases of development the west, or even China, have endured. The private sector has an important role to play in this journey, making the region an attractive destination for long-term capital. Nowhere is the link between sustainable development outcomes and investment returns more clear than it is in the Indian subcontinent.”
Stewart Investors’ website outlines the team’s approach to sustainable investing and showcases their Portfolio Explorer tool, which allows easy access to details of the companies held in their sustainability strategies and explains how these companies are contributing to sustainable development. Users can filter the map by Sustainable Development Goals, climate solution, human development pillar or individual company names. For each company the team holds, the investment rationale, sustainability positioning, risks, and areas for engagement are provided.
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