Stewart Investors launches Global Emerging Markets Leaders Sustainability Fund
Stewart Investors, an active, long-only equity specialist and global leader in sustainable investing, has launched a Global Emerging Markets (GEM) Leaders Sustainability Fund for investors in the UK.
The Fund, now available in the UK as an OEIC and early in 2022 as an Irish VCC for the UK, European Economic Area and Switzerland, invests in high-quality, mid- to-large-cap companies that are considered to be well positioned to contribute to, and benefit from sustainable development, with a focus on delivering long-term capital growth over market cycles. Managed by Jack Nelson and David Gait, the Fund offers European investors access to the team’s proven emerging markets sustainability capabilities.
The team has a strong track record of investing in emerging markets.
The GEM Leaders Sustainability strategy focuses on companies with a market capitalisation of over US$1 billion and can hold between 25 – 60 investments at any one time with a minimum suggested timeframe for investors of seven years. The GEM Leaders Sustainability strategy was first launched in the US in April 2020, and more recently in Australia. It currently has assets under management globally of GBP193m (as at 31 October 2021).
SFG is a pioneer in sustainable investing, having launched its first sustainability fund in 2005 and supported by the heritage of Stewart Investors, 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.
Jack Nelson, Portfolio Manager, Stewart Investors’ Sustainable Funds Group, said:
“Having a strong focus on sustainability, in particular looking at companies’ stewardship and how they treat all stakeholders, is crucial in identifying the best long-term opportunities in emerging markets. Our bottom-up approach, as well as a long-term time horizon and regular engagement with our portfolio companies, allow us to identify and invest in quality companies with sustainability tailwinds. We believe that this is the best defense against emerging market risks, and ultimately the most effective way to protect and grow our clients’ capital over the long term.”
David Gait, Portfolio Manager, Stewart Investors’ Sustainable Funds Group, added:
“We have seen a significant increase in demand for our global emerging markets capability in Europe, particularly given our keen focus on sustainability. At SFG, we constantly seek out companies who are well positioned to meet the challenge of, and benefit from, sustainable development, and are thus better placed to deliver solid absolute returns over the long term. We look forward to offering this investment opportunity to our customers across Europe.”
The Sustainable Funds Group has its own microsite dedicated to their Sustainability Strategies. This includes our new interactive tool Portfolio Explorer which allows easy access to details on the companies held in their strategies and how they are contributing to sustainable development. Users can filter the map by Sustainable Development Goals 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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