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Sustainable investing

Overview

ii ACE 40 investments:
Stewart Investors Global Emerging Markets Sustainability Fund

ii Ace 40
Asset GroupAsset Sub-GroupInvestment Category
EquitiesEmerging marketsCore

Why we recommend it

Manager Sujaya Desai has been part of this team since 2019 and was co-manager on this fund before taking over as lead in 2023. She is part of a 13-person team that includes David Gait, a highly experienced investor and a previous manager of this fund.

The strategy follows the house approach and employs a bottom-up, benchmark-agnostic, and long-term style that looks for high-quality companies with sustainable and predictable businesses. There is a clear focus on management quality and a focus on companies that contribute to and benefit from sustainable development.

The portfolio is composed of 30-75 stocks and bears little resemblance to the MSCI Emerging Markets Index. A preference for franchises with durable business models, high-integrity management teams, and limited regulatory and political oversight leads to a persistent overweighting in India at the expense of China. Not surprisingly, this often leads to lumpy performance relative to the benchmark. There are also biases down the market-cap scale, towards the growth style and to quality metrics.

Opinion
In general, the fund’s best relative returns have come when the market has fallen, and conversely, the portfolio is expected to lag in momentum driven markets.  Over recent years the country bias has been a significant determinant of relative performance.

Overall, we are positive on the experience of the team and the time-tested process. 

Sustainability criteria

Morningstar Sustainable Attribute: This fund is considered a sustainable investment product based on its prospectus or other regulatory filings. As a General ESG Investment, the fund uses environmental, social and governance (ESG) criteria as a central part of the security-selection and portfolio-construction process. These strategies endeavour to promote sustainability and minimise negative impact, without focusing on a specific theme or area of action.

Information and data compiled to April 2024.
View factsheetBack to ii ACE 40

Risk warnings

The information we provide in the ACE 40 investments list does not constitute a "personal recommendation". You should ensure that any investment decisions you make are suitable for your personal circumstances and that the ethical style of the investment reflects your personal beliefs.

Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor.

Any changes to the ii ACE 40 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Review.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii ACE 40 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii ACE 40 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii ACE 40 investments list.