◀ Back
Accept Decline
Quarterly Client Update: Third Quarter 2024

Quarterly Client Update: Third Quarter 2024

We provide regular strategy updates including portfolio changes and proxy voting, and links to our investment rationales, latest articles, statements, webcasts and videos which explore our thinking on sustainable investment, including the challenges and issues we grapple with in our search for high-quality companies.

Strategy updates: portfolio changes & proxy voting

Find out the latest updates on the strategies we manage including significant portfolio changes and proxy voting.

You can also build your own report by selecting individual strategies of interest.

Build your own report

Select the strategies you are interested in. Strategy update and Proxy voting can also be split out. You can then download a copy of the report by clicking on the button.

Stewart Investors Quarterly Client Update Q3 2024

1 July - 30 September 2024

Quarter update

Risk factors

This material is a financial promotion for the Stewart Investors strategies – Asia Pacific and Japan Sustainability, Asia Pacific Leaders Sustainability, Asia Pacific Sustainability, European Sustainability, European (ex UK) Sustainability, Global Emerging Markets Sustainability, Global Emerging Markets Leaders Sustainability, Indian Subcontinent Sustainability, Worldwide Sustainability and Worldwide Leaders Sustainability – and is intended for professional clients only in the UK, Switzerland and EEA and professional clients elsewhere where lawful.

Within the EU/EEA and Switzerland, the European (ex UK) strategy is only available to investors via a segregated mandate account.

Investing involves certain risks including:

  • The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
  • Emerging market risk: Emerging markets tend to be more sensitive to economic and political conditions than developed markets. Other factors include greater liquidity risk, restrictions on investment or transfer of assets, failed/delayed settlement and difficulties valuing securities.
  • Indian Subcontinent risk: although India has seen rapid economic and structural development, investing there may still involve increased risks of political and governmental intervention, potentially limitations on the allocation of the strategy’s capital, and legal, regulatory, economic and other risks including greater liquidity risk, restrictions on investment or transfer of assets, failed/delayed settlement and difficulties valuing securities.
  • Specific region risk: investing in a specific region  may be riskier than investing in a number of different countries or regions. Investing in a larger number of countries or regions helps spread risk.
  • Currency risk: the strategies invest in assets which are denominated in other currencies; changes in exchange rates will affect the value of the strategies and could create losses. Currency control decisions made by governments could affect the value of the strategies’ investments and could cause the strategies to defer or suspend redemptions of shares.
  • Concentration risk: the European Sustainability and Worldwide Leaders Sustainability strategies referred to in this material invest in a relatively small number of companies which may be riskier than a strategy that invests in a large number of companies.
  • Smaller companies risk: investments in smaller companies may be riskier and more difficult to buy and sell than investments in larger companies.

Where featured, specific securities or companies are intended as an illustration of investment strategy only, and should not be construed as investment advice or a recommendation to buy or sell any security.

If you are in any doubt as to the suitability of our strategies for your investment needs, please seek investment advice.

Investment philosophy

  • We are stewards: Our role is to allocate society’s capital to productive uses, in accordance with our Hippocratic Oath
  • We are long term: Our time horizon is measured in years, not weeks, and we value companies accordingly
  • We invest only in companies contributing to a more sustainable future: We engage constructively as owners to help companies on their sustainability journeys
  • We invest only in high-quality companies: We seek out companies with exceptional cultures, strong franchises and resilient financials
  • We believe capital preservation is important for capital growth: We define risk as the possibility of the permanent loss of client capital

Investment objective

To generate attractive long-term, risk-adjusted returns by investing in the shares of high-quality companies that are particularly well positioned to contribute to, and benefit from sustainable development.

Important information

This material is for general information purposes only. It does not constitute investment or financial advice and does not take into account any specific investment objectives, financial situation or needs. This is not an offer to provide asset management services, is not a recommendation or an offer or solicitation to buy, hold or sell any security or to execute any agreement for portfolio management or investment advisory services and this material has not been prepared in connection with any such offer. Before making any investment decision you should conduct your own due diligence and consider your individual investment needs, objectives and financial situation and read the relevant offering documents for details including the risk factors disclosure. Any person who acts upon, or changes their investment position in reliance on, the information contained in these materials does so entirely at their own risk.

We have taken reasonable care to ensure that this material is accurate, current, and complete and fit for its intended purpose and audience as at the date of publication but the information contained in the material may be subject to change thereafter without notice.

No assurance is given or liability accepted regarding the accuracy, validity or completeness of this material.

To the extent this material contains any expression of opinion or forward-looking statements, such opinions and statements are based on assumptions, matters and sources believed to be true and reliable at the time of publication only. This material reflects the views of the individual writers only. Those views may change, may not prove to be valid and may not reflect the views of everyone at First Sentier Investors.

Past performance is not indicative of future performance. All investment involves risks and the value of investments and the income from them may go down as well as up and you may not get back your original investment. Actual outcomes or results may differ materially from those discussed. Readers must not place undue reliance on forward-looking statements as there is no certainty that conditions current at the time of publication will continue. 

References to specific securities (if any) are included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. Any securities referenced may or may not form part of the holdings of First Sentier Investors’ portfolios at a certain point in time, and the holdings may change over time.

References to comparative benchmarks or indices (if any) are for illustrative and comparison purposes only, may not be available for direct investment, are unmanaged, assume reinvestment of income, and have limitations when used for comparison or other purposes because they may have volatility, credit, or other material characteristics (such as number and types of securities) that are different from the funds managed by First Sentier Investors.

Selling restrictions

Not all First Sentier Investors products are available in all jurisdictions.

This material is neither directed at nor intended to be accessed by persons resident in, or citizens of any country, 

or types or categories of individual where to allow such access would be unlawful or where it would require any registration, filing, application for any licence or approval or other steps to be taken by First Sentier Investors in order to  comply with local laws or regulatory requirements in such country.

About First Sentier Investors

References to ‘we’, ‘us’ or ‘our’ are references to First Sentier Investors, a global asset management business which 

is ultimately owned by Mitsubishi UFJ Financial Group (MUFG). Certain of our investment teams operate under the trading names FSSA Investment Managers, Stewart Investors and Realindex Investments, all of which are part of the First Sentier Investors Group.

This material may not be copied or reproduced in whole or in part, and in any form or by any means circulated without the prior written consent of First Sentier Investors.

We communicate and conduct business through different legal entities in different locations. This material is communicated in:

  • United Kingdom by First Sentier Investors (UK) Funds Limited, authorised and regulated by the Financial Conduct Authority (reg. no. 2294743; reg office Finsbury Circus House, 15 Finsbury Circus, London EC2M 7EB).
  • European Economic Area by First Sentier Investors (Ireland) Limited, authorised and regulated in Ireland by the Central Bank of Ireland (CBI reg no. C182306; reg office 70 Sir John Rogerson’s Quay, Dublin 2, Ireland; reg company no. 629188).
  • Other jurisdictions, where this document may lawfully be issued, by First Sentier Investors International IM Limited, authorised and regulated in the UK by the Financial Conduct Authority (reg. no. 122512; reg office 23 St. Andrew Square, Edinburgh, EH2 1BB; regcompany no. SC079063).

To the extent permitted by law, MUFG and its subsidiaries are not liable for any loss or damage as a result of reliance on any statement or information contained in this document. Neither MUFG nor any of its subsidiaries guarantee the performance of any investment products referred to in this document or the repayment of capital. Any investments referred to are not deposits or other liabilities of MUFG or its subsidiaries, and are subject to investment risk, including loss of income and capital invested.

© First Sentier Investors Group

News from the quarter

Stewart Investors Annual Review 2023

We published our 2023 Annual Review in August, reporting on our sustainable investment and business activities for the year. This year we have introduced fund and strategy data packs to supplement the main review. The data packs report on the human development pillars (positive social outcomes), climate change solutions (positive environmental outcomes), harmful or controversial products, services or practices, engagement and proxy voting. These can also be found on our website. We hope you find them informative and welcome your feedback.

Research partnership update: Access to Medicine Foundation

On 1 January 2024 we entered a three-year research partnership with the Access to Medicine Foundation, an independent non-profit organisation that seeks to mobilise companies to expand access to their essential healthcare products in low- and middle-income countries. Our partnership and funding will primarily support the Foundation’s Generics & Biosimilar Medicines (G&BM) Programme, initially supporting engagement activities between the Foundation and various stakeholders on the opportunities identified in their G&BM report.

We have accepted the opportunity to become a ‘lead investor’ on the programme, jointly with investment management firm Castlefield, engaging directly with one of the five underlying companies (Hikma Pharmaceuticals) on behalf of the Foundation.

Further information on the partnership and our work with them can be found in this article.

Strategic partnership update: WRAP recyclable films trial

In February 2024, we committed to funding a pilot project run by WRAP, a UK-based global environmental NGO, and the Confederation of Indian Industry (CII). The project aims to demonstrate the positive use case for businesses to move from multi-laminate single-use plastic packaging to more recyclable packaging. Stewart Investors has been a long-term supporter of WRAP and CII (through the India Plastics Pact) and we are delighted to extend this partnership to explore alternative solutions for non-recyclable flexible packaging.  This project represents the next step in our work on plastics, one of our key strategic initiatives, dating back to 2016.

The project launched in April 2024, inviting applications from companies wishing to participate in the trial. We are excited to announce that Godrej Consumer Products Ltd, Huhtamaki India and PepsiCo have been selected to lead five innovative projects focused on demonstrating recyclable solutions for flexible packaging. The projects are due to run until summer 2025.

Read more: Tackling plastic pollution in India

Collaborative engagement update: Tackling conflict mineral content in the semiconductor supply chain – Initiative for Responsible Mining Assurance membership

We are delighted to announce that Stewart Investors has become the first investment management firm to become a member of the Initiative for Responsible Mining Assurance (IRMA), an organization addressing the global demand for more socially and environmentally responsible mining. We are strongly aligned with IRMA’s mission and look forward to continuing to learn from its expertise as a member. We see membership and collaboration with IRMA as an exciting opportunity to bring stakeholders together and leverage collective action to drive progress in our collaborative engagement.

Event update: Tackling Child Labour in Supply Chains

In September we were pleased to sponsor and attend our research partner Kumi Consulting’s event at the Impact Hub London, “Collaborative Partnerships to Tackle Child Labour in Supply Chains”. Co-hosted by Congo Children Trust, we heard accounts of child labour in mining and discussed challenges and potential solutions. Portfolio Manager Chris McGoldrick shared our perspective as an investor and how we are committed to tackling conflict minerals in the semiconductor supply chain through our ongoing collaborative engagement.

Latest insights

company-logo.svg
LinkedIn
Subscribe
How we invest
Sustainable investing
Our strategies
About us
Insights
Media releases
Contact us
Investment terms
Frequently asked questions
Company policies
Terms and conditions
Privacy policy
Cookie policy
Whistleblower Statement

Copyright © 2024 Stewart Investors.