ESG Fund Factsheet

For adviser use only

Stewart Investors Worldwide Sustainability

Classification: Sustainable
Management style: Active

Introduction

The Fund invests in shares of high quality companies which are positioned to benefit from, and contribute to, the sustainable development of the countries in which they operate. Investment decisions use a thematic sustainability approach and an assessment aiming to identify high quality companies based on three key points: (i) Quality of management. (ii) Quality of the company including its social usefulness, their environmental impacts and efficiency and responsible business practices. (iii) Quality of the company’s finances and their financial performance. Sustainability is a key part of the approach.

*As at 30/09/2022

Name Launch Date IA Sector Portfolio OCF Fund Size (m)
Stewart Investors Worldwide Sustainability 01/11/2012 Global 0.66% £653.6*

About Stewart Investors

Stewart Investors manage investment portfolios on behalf of clients over the long term and have held shares in some companies for over 20 years.

Their core investment philosophy has been in place since 1988 and has remained unchanged since then. It is founded on the principle of good stewardship, by which they mean careful, considered and responsible management of their clients’ funds. They treat the money they’re entrusted with as if it were their own long-term savings.

They believe their job is to invest their clients’ capital in high-quality companies with strong management teams that are well positioned to contribute to, and benefit from, sustainable development. They endeavour to pay sensible prices for these investments.

Investment Philosophy

Stewart Investors describe the investment philosophy of the fund as follows;

  • 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 invest in 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.

The fund has a number of areas of focus including climate change, human development and also takes into account the UN’s sustainable development goals. There are useful tools on their website that allow you to go deeper into the funds portfolio and analyse the holdings to determine whether they meet the criteria you are looking for.

Investment Performance

The funds benchmark is the MSCI AC World Net Index. Over 1, 3 and 5 years the fund has underperformed the index.

Performance as at 30th September 2022, source fund factsheet.

Past performance is not a reliable indicator of future performance.

Exclusion Policies

The fund applies an exclusion policy around the following areas;

  • Fosslil Fuels
  • Animal Welfare
  • Nuclear Power
  • Animal Testing
  • Poor Environmental Records
  • Sexual and Reproductive Health Rights
  • Alcohol
  • Genetic Research and Stem Cells
  • Tobacco
  • Human Rights
  • Gambling
  • Ethical Employment Practices
  • Pornography
  • Arms

Amongst other areas. More in depth descriptions of what are excluded can be found on the funds website.

Platform availability

The fund is available on the following platforms:

Abrdn Wrap M&G Wealth
Abrdn Elevate Fidelity
Advance by Embark Aegon
Aviva Interactive Investor
James Hay Novia
Nucleus Quilter
Transact

Supporting documents

Tenet Opinion

Stewart Investors have an organisational focus on sustainable investing, rather than this simply being a fund range that focuses on these issues. This means that they have a significant level of data and information on the fund, it’s holdings and goals available. This is very useful for client conversations and ensuring that the fund matches goals and objectives.

There are also extensive and detailed exclusions applied meaning that it may be suitable for clients who wish to exclude a range of areas from their portfolio on ethical grounds.

The fund is unconstrained and high conviction, normally holding between 40 and 60 companies, meaning that it may not generally be suitable as a core holding for a portfolio.

Although the fund has underperformed it’s benchmark, the benchmark used does not have any sustainable investment restrictions applied whereas the fund does. This will mean the funds performance is affected by investment biases that don’t apply to the benchmark.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).