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  • Client letter: Why change a name?

    We have decided to remove the word ‘Sustainability’ from the Stewart Investors fund names. Why? Three and a half slow-burning thoughts have combined to make it the right time.

    23 Sep 2024
    Image for: Client letter: Why change a name?

  • Realising the potential of Access to Diagnostics

    Access to affordable diagnostics is crucial for healthcare, but it's a challenge in poorer countries. The Access to Medicines Foundation incentivises diagnostic companies and Stewart Investors partners with them to analyse investments.

    06 Sep 2024
    Image for: Realising the potential of Access to Diagnostics

  • Biodiversity and the importance of stewardship

    Like many other environmental and social risks, biodiversity risks and impacts can be hard to assess as they are either hidden from the outside or occur deep in company supply chains.

    04 Sep 2024
    Image for: Biodiversity and the importance of stewardship

  • India: There is order in chaos

    The political chaos and the steady news flow emanating from India’s sensationalist media is often perceived as a risk. We disagree. It is no different to what we see in any other democratic society.

    28 Aug 2024
    Image for: India: There is order in chaos

  • Biodiversity and how we select companies

    Our investment approach favours companies that provide products and services that meet basic needs, solve difficult problems and seek to do more with less. A result of our investment philosophy means that we avoid companies that have a significant negative impact on the natural environment.

    27 Aug 2024
    Image for: Biodiversity and how we select companies

  • Biodiversity and our approach to it

    Biodiversity is the term commonly used to refer to the variety of living species on Earth, including plants, animals, bacteria and fungi. It is not a marketable good or product, nor a service; it is the living web that connects the tangible and intangible elements of healthy ecosystems.

    19 Aug 2024
    Image for: Biodiversity and our approach to it

  • Uncovering quality in China through bottom-up stock picking

    Over the last twelve months, our Asia and Global Emerging Markets portfolios have been increasing their exposure to Chinese equities. As bottom-up stockpickers, we have become more optimistic about the potential returns from owning what we believe to be some of China’s best businesses at very reasonable valuations.

    19 Aug 2024
    Image for: Uncovering quality in China through bottom-up stock picking

  • Biodiversity Q&A

    In this piece we answer some of the frequently asked questions about biodiversity and our approach.

    15 Aug 2024
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  • Stewart Investors Annual Review 2023

    We welcome you to explore our review of the sustainable investment activities across Stewart Investors in 2023. In addition, this year, where regulation allows, we will provide portfolio, fund or strategy level data reports on our website.

    09 Aug 2024
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  • Finding gems in Ohio

    In Ohio, the blend of hard work, good business sense, independent thinking and the ability to take risks when appropriate, has delivered a group of companies that are well worth stopping for.

    16 Jul 2024
    Image for: Finding gems in Ohio

  • Quarterly Client Update - Q2 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.

    30 Jun 2024
    Image for: Quarterly Client Update - Q2 2024

  • A + I equals more than NVDA

    OpenAI released GPT-4, the sophisticated Large Language Model (LLM) behind ChatGPT, one year ago. Over that year, Artificial Intelligence (AI) has never been out of the news and the market cap of US tech stocks has risen by 50%

    27 Mar 2024
    Image for: A + I equals more than NVDA

  • The Sustainable 6

    We thought it could be useful to showcase a selection of companies we’re referring to as the Sustainable 6. This is just one selection we think reflects the variety, quality, and excellent sustainability positioning of all the companies we invest in for clients.

    27 Mar 2024
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  • Worldwide Leaders Sustainability: A year in review

    In this letter, portfolio manager Sashi Reddy reflects on managing the Worldwide Leaders Sustainability strategy, discussing stories behind the largest holdings, a few mistakes, and his thoughts on the ‘Magnificent Seven'.

    22 Feb 2024
    Image for: Worldwide Leaders Sustainability: A year in review

  • P&I Interview: Delivering returns through stewardship

    Sashi Reddy and Sujaya Desai speak to Pensions & Investments about the importance of stewardship, and how we look for management teams who have the intention and ability to leave businesses in much better shape than they found them in.

    19 Oct 2023
    Image for: P&I Interview: Delivering returns through stewardship

  • Why stewardship matters

    Prioritising long-term growth over short-term gains takes confidence and vision from high-quality management. Great stewardship through long-term decision making benefits businesses in myriad ways but it doesn’t manifest the same way in every company.

    04 Sep 2023
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  • Climate solutions update

    In mid-2022, Project Drawdown announced 11 new solutions to their collection related to ocean resources, food production, methane management, and materials manufacturing and use.

    20 Jan 2023
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  • Why India: Investing in the Indian subcontinent

    The Indian subcontinent has been a fantastic investment destination over the last few decades. Investment returns in the subcontinent have been primarily driven by India since she liberalised her economy in 1991.

    16 Jan 2023
    Image for: Why India: Investing in the Indian subcontinent

  • Why India: Home to high-quality companies

    India is home to many high-quality companies. Our past decades of investing in the Indian subcontinent has demonstrated that exceptional businesses managed by competent, conservative stewards deliver disproportionately better returns through cycles.

    14 Jan 2023
    Image for: Why India: Home to high-quality companies

  • Why accounting choices matter

    Commuters on the London Underground would be familiar with the warning to “mind the gap”. The investment industry is in dire need of a similar warning but with an extra A – “Mind the GAAP”.

    30 Nov 2022
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  • Tackling climate change in emerging markets

    As the human effects of climate change continue to intensify around the world, asset owners and managers are rightly grappling with their responsibilities to help avoid catastrophe.

    13 Oct 2022
    Image for: Tackling climate change in emerging markets

  • Spotlight on sustainability: Watsco

    Sashi Reddy discusses Watsco, the largest distributor of HVACR (heating, ventilation, air conditioning and refrigeration) products in North America.

    02 Oct 2022
    Image for: Spotlight on sustainability: Watsco

  • The importance of diversity

    How do the Stewart Investors team seek to address diversity? Sashi Reddy discusses the investment team’s approach, and why fostering diversity of thought is not just important but crucial in implementing the team’s investment philosophy for the long term.

    15 Aug 2022
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  • Climate change statement

    We launched our first sustainable investment fund in 2005. At that time we were convinced all companies would need to adjust to operating in an increasingly carbon-constrained world, and more companies would need to develop solutions to make economies less carbon intensive. Our conviction has never waned, nor has the urgency of the carbon-reduction challenge.

    05 Aug 2022
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  • The problem with ESG scores

    Some ESG data can be useful in certain circumstances, but can an over reliance on simplistic ESG scores be a dangerous strategy?

    06 Apr 2022
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  • Trip Report: US

    The emergence of trends that will likely shape the next decade, including cloud computing, automation, connectivity and artificial intelligence (AI), has created some appealing honeypots for investors to dip their paws into. These companies are often well positioned in the face of broad sustainability tailwinds and characterised by steady growth streams, so one can understand the allure.

    05 Apr 2022
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  • Proxy Voting Policy and Guidelines

    We believe judgement is a better guide to voting than a rules-based approach. Our voting policy is based on a parsimonious set of principles and key considerations that in our judgement are likely to be applicable to all companies in the vast majority of circumstances.

    16 Mar 2022
    Image for: Proxy Voting Policy and Guidelines

  • How big is big enough?

    Today’s technology giants may have many admirable qualities, but should we question their ongoing contribution to sustainable development?

    06 Jan 2022
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  • Company Interview: Watsco Inc

    Heating and air conditioning usage account for a large percentage of the energy consumed in the average American home. By installing energy-efficient HVACR systems, Watsco, Inc. are assisting home owners to reduce their environmental footprint and tackle climate change.

    09 Dec 2021
    Image for: Company Interview: Watsco Inc

  • Exploring outside the lines

    Our interactive tool, Portfolio Explorer is helping us share how impactful companies are contributing to sustainable investments.

    12 Nov 2021
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  • Our Human Development Pillars

    Struggling to clearly articulate the world of ESG investing? You’re not alone. Learn more about our sustainable development framework. Jack Nelson explains.

    11 Nov 2021
    Image for: Our Human Development Pillars

  • The Power of Story

    In a recent essay, Santa Fe economist Brian Arthur challenges economists to describe the world in more than algebraic terms. He believes they should extend their vocabulary (and minds) to include verbs, alongside their highly prized nouns, to allow the underlying processes, context and organic nature of complex systems to be described in full technicolour.

    14 Oct 2021
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  • Diversity statement

    Diversity is an integral part of sustainable development and is important to us as investors, employers and as members of society.

    09 Sep 2021
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  • Ten years in emerging markets

    If the last ten years investing in emerging markets has taught us anything it is that in the long run, quality wins.

    03 Sep 2021
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  • Is Europe leading the way in sustainable business?

    Europe is seldom considered the most exciting place to invest. This is mainly because European index returns – a proxy for average market returns – have been modest over most time frames. But Europe offers some excellent investment opportunities for active investors willing to seek out its treasures.

    21 Jun 2021
    Image for: Is Europe leading the way in sustainable business?

  • Emerging markets’ new generation of tech firms

    Over the last decade, the role and prominence of technology companies in emerging markets has increased markedly. Emerging markets economies have proven themselves capable of producing truly world-leading tech firms. And as smartphone penetration has surged, the positive impact of technology on daily life in emerging markets has been very significant.

    01 Jun 2021
    Image for: Emerging markets’ new generation of tech firms

  • Reasons to invest in Europe

    Even investors who get excited about investing in European equities can understand why many people don’t. A great many savers think their investment options are limited to the average market return provided by an index-tracking fund. And the average returns of European index investments look very average, over almost any time period.

    06 May 2021
    Image for: Reasons to invest in Europe

  • Indian Subcontinent: the decade ahead

    The Strategy did well in 2020, thanks in part to the generosity of central banks globally, while the real economy tried to shake off a pandemic. However, we believe that the real opportunity for investors in the subcontinent should be in the decade ahead. We are optimistic for two reasons.

    29 Mar 2021
    Image for: Indian Subcontinent: the decade ahead

  • The sustainability positioning of an imperfect giant

    In early December 2020, activists from Greenpeace deposited a big sculpture of Nestlé’s* logo, made entirely of plastic waste from Nestlé’s products, in front of its headquarters, alongside a banner with a powerful simple message - ‘Stop feeding the world with plastic’.

    17 Mar 2021
    Image for: The sustainability positioning of an imperfect giant

  • Learning from success: CAMFED

    Education is not freely available to everyone - and in many parts of the world girls are the first to be excluded from it. Girls are the first to drop out of school, and the first to be failed by the system, facing the perils of early marriage, early pregnancy, and abuse. Without the choice to write their own futures, their endless potential is wasted.

    17 Feb 2021
    Image for: Learning from success: CAMFED

  • Why do Payable Days matter?

    ‘Payable Days’ is the number of days a company takes to pay its suppliers. Investors often learn in ‘Finance 101’ courses that the longer a company takes to pay its suppliers the stronger its bargaining power is with them. Consequently, this is considered as key evidence of a strong franchise. We beg to differ.

    15 Feb 2021
    Image for: Why do Payable Days matter?

  • Regulatory developments in sustainable finance

    2020 saw regulatory developments in sustainable finance reach new levels globally, but particularly in Europe. These developments, combined with a global pandemic, unprecedented wildfires, and a renewed focus on social movements like Black Lives Matter, put sustainable finance under the spotlight more than ever.

    10 Feb 2021
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  • Research Tender Overview

    At Stewart Investors our investment process is augmented through the use of external research. We find this third party research helpful to challenge our thinking and extend our understanding of sustainable development issues.

    27 Nov 2020
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  • Rainbow washing the SDGs away

    The Sustainable Development Goals (SDGs) have been broadly embraced by financial institutions. This is a positive move, and timely too.

    04 Aug 2020
    Image for: Rainbow washing the SDGs away

  • European Sustainable Finance Consultation

    Stewart Investors wrote to the Directorate-General for Financial Stability, Financial Services and Capital Markets Union in response to aspects of the Renewed Sustainable Finance Strategy.

    09 Jul 2020
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  • Active versus passive

    Growing investor concerns about climate and societal crises have contributed to the burgeoning demand for ‘sustainable investment’ funds that take into consideration environmental, social and governance (ESG) factors.

    25 May 2020
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  • Companies supporting the fight against COVID-19

    The COVID-19 pandemic is having a devastating personal and economic impact worldwide and there is an urgent need for governments, companies and individuals to play their part in helping to slow the spread, protect the vulnerable and minimise the human and economic toll.

    22 May 2020
    Image for: Companies supporting the fight against COVID-19

  • Trip report: India

    The ongoing crises making their way through the Indian financial system are indicative of the years of irrational exuberance in the decade prior.

    12 May 2020
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  • Implementing the Sustainable Development Goal 12

    The United Nations Sustainable Development Goals (SDGs) provide a clear and vital framework around which investors and the broader business community can unite to achieve a collective goal of cleaner business practices. One goal which many investors and businesses are placing emphasis on is SDG 12: Responsible Consumption and Production.

    09 Mar 2020
    Image for: Implementing the Sustainable Development Goal 12

  • Challenging the greenwash

    Our philosophy at Stewart Investors is to invest in ‘quality companies’ and our process for identifying them has incorporated a rigorous evaluation of ESG for over three decades. However, our analysis of ESG has never stood in isolation, and must be taken together with assessment of management, franchise and financials.

    12 Feb 2020
    Image for: Challenging the greenwash

  • Diversity update

    In 2019, we commissioned a research project with the University of Technology (UTS) in Sydney to compile a set of recruitment and retention policies that have been implemented across geographies, industries, and organisations and can be tied to tangible improvements in diversity outcomes. This report, entitled Improving Gender Diversity, was completed a few months ago. It lays out a list of 13 tools that have been successfully used to recruit and retain women in organisations.

    12 Feb 2020
    Image for: Diversity update

  • Investing in Emerging Markets

    Emerging markets are usually seen as a risky asset class. News headlines in recent years of street protests, rapid currency devaluations and corporate governance blow-ups have done little to dispel these impressions.

    05 Feb 2020
    Image for: Investing in Emerging Markets

  • Trip report: Brazil

    Recent history in Brazil has seen a push towards identifying and weeding out the linkages between corporate and political networks that have intertwined over decades to breed a culture of impunity.

    03 Dec 2019
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  • Small is beautiful

    This rule of thumb was coined in order to combat a common challenge facing teams trying to solve complex problems. In pursuits like investing, there is a tendency to increase the number of people providing input to the point that the team gets bloated and functions less efficiently.

    07 Nov 2019
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  • Quality & Patience

    Today, asset owners have an unprecedented range of options of where to invest and an even greater number of well-argued reasons for why each of these will be the most attractive home for their capital. Aggressive, untested monetary policy has helped fuel years of above-average equity returns, encouraging many of those who run these strategies to predict handsome returns for investors.

    03 Dec 2018
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  • Our Hippocratic oath in action

    Our Hippocratic oath is something we all hold dearly and have all signed. It underpins our investment philosophy, which is based on identifying quality stewards of strong franchises with good long-term prospects.

    09 Apr 2018
    Image for: Our Hippocratic oath in action

  • Container Deposit Scheme

    Lost amidst the noise around more expensive beer and soft drinks are the long-term benefits of the NSW container deposit scheme called Return and Earn, which was launched last week.

    31 Jan 2018
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  • How we select companies

    We have often been asked how we narrow down a universe of 15,000 Asian and Emerging Markets companies to a portfolio of approximately 50. It’s a good question, particularly as now that we invest globally, giving us an investible universe of 65,000 companies, the challenge has become even starker.

    11 Dec 2017
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  • Dual Share Class Blundering

    We used to send letters to companies and stock exchanges extolling the virtues of single share classes, tag along-rights and ‘one share, one vote’. Today, we actively seek out companies with dual share classes. What has changed?

    11 Dec 2017
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  • Tax Approaches

    We consider the tax rates paid by companies that we might invest in on behalf of our clients important because it impacts our assessment of Quality of Management, Franchise and Financials.

    03 Jul 2017
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  • The Sharing Economy

    Sharing resources has gone on for as long as humans have been living in tribes. But without the enabling role of the internet or mobile devices it is hard work in a large complex society with a myriad of goods and services. The internet is now helping to solve this problem.

    03 Jul 2017
    Image for: The Sharing Economy

  • Green Bookkeeping

    In 2010, Puma pioneered a new form of corporate reporting. The German sportswear company produced an environmental profit and loss account, which estimated the company and its supply chain to have caused €145m of environmental damage that year, relative to €202m of net profit.

    29 Jun 2017
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  • Does Fund Management have a social purpose?

    The stock market and bond market have their origins in the financial revolution of the late 17th century. The stock market developed to provide funds for overseas trading companies, like the English East India Company, while the bond market funded the state, mostly raising funds for waging of war.

    01 Jun 2017
    Image for: Does Fund Management have a social purpose?

  • The Circular Economy

    US clothing retailer Patagonia famously encouraged consumers not to buy their jackets in 2011...

    03 May 2017
    Image for: The Circular Economy

  • Alice in Financeland

    At first glance, there is little about the current financial system that makes sense. The more one looks, the less sense it makes. In theory the financial sector is supposed to support the long-term growth of the real economy. In practice, it has become so detached from the real world that it is more akin to a fantasy land, inhabited by a growing number of peculiar characters undertaking nonsensical tasks. Lewis Carroll’s Alice would be very much at home.

    03 Apr 2017
    Image for: Alice in Financeland

  • The Plastics Paradox

    Plastic is wonderful stuff. It is lightweight, so less carbon intensive to move around. It is durable, mouldable and less energy intensive to make than aluminium or glass. It helps reduce food waste and decreases the risk of food contamination.

    03 Apr 2017
    Image for: The Plastics Paradox

  • Trip report: Japan

    The below image is a sign from a packed subway line en route to the bullet train at Shinagawa Station. A sign that initially amused but then began to hold more power as a metaphor as the trip went on. In most other countries, a sign highlighting the pain that comes from getting trapped in a train door would be enough to deter passengers from trying their luck with some automatic doors.

    30 Sep 2016
    Image for: Trip report: Japan

  • Trip report: India and Taiwan

    “Dabur before self”, responded Mr Duggal, the CEO of Dabur, when we asked what he is looking for in his successor. Stewardship is central to our investment philosophy at Stewart Investors, and the importance of the quality of incoming leadership cannot be understated. The risk, however, is that we arrive at conclusions too quickly or use the wrong measuring tape.

    30 Jun 2016
    Image for: Trip report: India and Taiwan
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