stewart investors marks milestone with 15 years of sustainable investing success 64


Stewart Investors Marks Milestone with 15 Years of Sustainable Investing Success


Lauren Miller

May 7, 2024 - 13:27 pm


Stewart Investors Celebrates a Decade and a Half of Sustainable Investing Triumphs

EDINBURGH, Scotland, May 7, 2024 (PRNewswire) - In a significant milestone for sustainable investment strategies, Stewart Investors, renowned for their long-only active equity expertise, commemorates 15 prosperous years of their Global Emerging Markets Sustainability (GEMS) strategy. This celebration highlights their success at outperforming benchmarks over various timeframes, with returns calculated net of fees up until March 31, 2024.

Since its inception on February 28, 2009, the GEMS strategy has demonstrated a commendable annualized return. Over a span of 15 years up to March 31, 2024, the strategy yielded 10.0% net of fees, while its MSCI Emerging Markets Index benchmark recorded 7.0%. This strategy has also surpassed the benchmark over 10, 7, 5, and 3-year periods ending March 31, 2024, with returns of 3.9%, 4.5%, 3.3%, and -2.5% respectively, against the index's 3.3%, 4.1%, 2.6%, and -4.7% for those same terms.

A distinguished record shows the GEMS strategy exceeding the MSCI Emerging Markets Index in 11 out of the last 14 full calendar years from 2010 through 2023. By March 31, 2024, this strategic approach gleaned a cumulative return of 317.1%, in stark contrast to the index’s 177.1%.

The underpinning goal of the GEMS strategy is to secure substantial, risk-adjusted returns over the long term. It achieves this by allocating investments in high-caliber companies that are strategically situated to contribute towards and benefit from sustainable development.

Sujaya Desai of Sydney takes the lead in managing this strategy, with Jack Nelson of Edinburgh serving as co-manager. This duo is part of an 11-member investment team that oversees more than $18.6 billion in assets globally. They concentrate on Asia Pacific and emerging markets, alongside regional and worldwide sustainable equity ventures. Assets under management within the GEMS strategy have reached $1.7 billion. In addition, the team also administers a Global Emerging Markets Leaders Sustainability (GEMLS) strategy with assets amounting to $1.4 billion, serving a diverse international clientele.

Desai emphasizes the challenging nature of the past 15 years for the asset class of emerging markets. Nevertheless, the strategy's performance during this timeframe showcases the potential for attractive returns, despite such challenges, through a combination of active management and patience in capital allocation. Desai accentuates Stewart Investors' consistent strategy of investing in quality companies with perennial attributes, large domestic markets, and competitively viable goods and services on a global scale.

Jack Nelson projects that the future for active, bottom-up investing in emerging markets is promising, perhaps more so than ever before. The emerging markets spectrum now includes an array of world-class companies across a diverse range of sectors, including semiconductors, renewable energy technology, software as a service (SaaS), healthcare, fintech, and e-commerce.

Morningstar Inc., a primary figure in independent investment research, honored Stewart Investors with an ESG Commitment Level of Leader, the pinnacle designation available. Morningstar's ranks for asset managers cover four levels ranging from Low to Basic, Advanced, and Leader. Out of 108 evaluated global firms, Stewart Investors is one of a mere eight to be distinguished with the Leader rank.

The Morningstar ESG Commitment Level provides a qualitative assessment aimed at aiding investors in distinguishing asset managers fervently dedicated to sustainability outcomes. Morningstar's analysts evaluate firms against three principal pillars: philosophy and process, resources, and active ownership, to determine each firm's ESG Commitment Level.

About Stewart Investors

As of March 31, 2024, Stewart Investors manages in excess of $18.6 billion in assets. With its headquarters based in Edinburgh and additional offices scattered across London, Singapore, New York, and Sydney, Stewart Investors stands as a global leader in sustainable investing. They are a specialized active, long-only equity manager and have a substantial online presence for additional information, including responsible investment practices and policy details, at Stewart Investors.

Media Contact Information

For those seeking to get in touch with Stewart Investors for media inquiries:

  • In the UK: Bessie Stevens can be reached via MHP Group. Communication details are not explicit in the provided content, but one could likely find contact information through a simple online search or by contacting MHP Group directly.

  • In the US: Margaret Kirch Cohen and Richard Chimberg from Newton Park PR, LLC, are available at +1 847 507 2229 and +1 617 312 4281 respectively. The specific email contacts were hidden but can be obtained through direct outreach to Newton Park PR, LLC.

This press release has been meticulously created with the intent to provide general knowledge, specifically to the media. It is important to state that it is not designed for distribution to individual or corporate investors, nor financial advisors or distributors. Although painstaking effort has been invested in gathering information believed to be reliable and accurate at the time of publication, Stewart Investors or its associated entities make no claim to its comprehensiveness or precision.

The performance of Stewart Investors' funds is juxtaposed against the MSCI Emerging Markets Index. This benchmark is selected as a representative comparison for investors and closely aligns with the fund's investable asset profile. Nonetheless, it does not restrict or define the portfolio's construction. The manager also does not relate the fund’s performance to its IA sector due to the sector’s eclectic mix of constituent funds.

Forward-Looking Statements and Performance

It's imperative to understand that previous figures are reflective of past developments and should never be misinterpreted as a surefire indicator of future outcomes. For investors holding different currencies than USD, the return rates may vary as currency fluctuations occur. The composite performance data provided by Stewart Investors as of March 31, 2024, indicates net figures after deducting a modeled annual management fee of 0.85% from the gross performance. No other costs or expenses have been deducted during these calculations.

The details should serve purely as illustrative examples of the activity within the strategy for the outlined periods. It is not intended to act as a recommendation or solicitation to purchase or invest in any fund. It's essential to note that fund or client-specific restrictions, if different from that of a similarly managed mandate, could have varying effects on results. The source of the MSCI Emerging Markets Index is FactSet, wherein total returns are gross of tax, and performance is measured from the inception date of the GEMS strategy on February 28, 2009.

Future outcomes may significantly diverge from those discussed herein; there is no guarantee that present conditions will persist indefinitely. Stewart Investors, part of First Sentier Investors, assumes no responsibility to amend, refine, or update the information contained within this release, regardless of new developments, future events, or other factors.

The Morningstar ESG Commitment Level Research Paper, dated August 30, 2023, is the source for Morningstar's information and ratings. Morningstar, Inc. reserves copyright on all content. The information presented: (1) is exclusive to Morningstar; (2) may not be replicated or distributed; and (3) does not come with an assurance of precision, completion, or timeliness. Morningstar and its content providers will not be held accountable for any damages or losses resulting from the use of this information, and past performance does not necessarily predict future success.

Important Information for Press Release Recipients

This press release is designed merely for informational purposes, targeting only the media. Its contents and any supplementary documents should not be copied, reproduced, or circulated without written consent from First Sentier Investors. Which maintains Stewart Investors.

In conclusion, as Stewart Investors marks this landmark anniversary, it stands as a testament to the potential success of dedicated sustainable investing strategies. The 15-year saga of the GEMS strategy is one of remarkable acumen in investment and sustainable development, promising continued growth and forward-looking strategies to match the evolving economic landscape.

SOURCE: Stewart Investors