Stewart Investors is a global investment management company that provides investment solutions to clients worldwide. Founded in 1988, the firm is headquartered in London and has offices across Europe, Asia Pacific and North America. Stewart Investors is a subsidiary of First Sentier Investors, which is owned by Mitsubishi UFJ Trust and Banking Corporation. As an active investment manager, Stewart Investors aims to deliver sustainable long-term returns for clients through quality growth investing. The firm’s investment philosophy focuses on stewardship, sustainability and quality growth. In this article, we will provide a comprehensive review of Stewart Investments covering its history, investment philosophy, fund performance, fees and other key details.
Stewart Investments has a long history tracing back to 1988
Stewart Investors was founded in 1988 as First State Investment Management by former Foreign and Colonial managers. It adopted the Stewart Investors name when it was acquired by Colonial First State Global Asset Management in 2000. In 2016, Commonwealth Bank of Australia demerged CFS GAM, after which it rebranded as First Sentier Investors. Stewart Investors has since operated as a standalone investment division within First Sentier Investors. The consistent leadership of CEOs Angus Tulloch and David Gait has provided stability throughout Stewart Investors’ history. The firm has built up a strong track record in quality growth investing over more than 30 years.
Stewart Investors’ investment philosophy centers around sustainability
Stewart Investors’ investment philosophy is anchored on the concepts of quality, growth and sustainability. The firm seeks to invest in high quality companies that can deliver sustainable growth over the long term. Importantly, Stewart Investors integrates analysis of environmental, social and governance (ESG) factors into its investment process. The aim is to identify businesses with sound corporate governance and a commitment to upholding stakeholder interests. Stewart Investors believes this quality growth style focused on sustainability can generate investment outperformance over the long run.
Stewart Investors manages a range of equity and multi-asset funds
Stewart Investors offers a diverse range of investment funds spanning geographies and asset classes. Its core offerings are focused on Asia Pacific, global emerging markets and world equities. Some examples include the Stewart Investors Asia Pacific Leaders Fund, Stewart Investors Global Emerging Markets Fund and Stewart Investors Worldwide Leaders Fund. The firm also manages balanced multi-asset funds such as the Stewart Investors Worldwide Sustainability Fund. In addition, it offers Asian and global sustainable funds investing based on ethical and ESG principles. Stewart Investors’ specialized investment expertise combined with its sustainable philosophy has attracted significant client assets over the years.
Stewart Investors funds have produced competitive long term returns
Stewart Investors has compiled an impressive long term performance record across its strategies. For instance, the Stewart Investors Asia Pacific Leaders Fund has returned 13.9% p.a. over the past 10 years, outperforming its benchmark by 5.6% p.a. Similar outperformance is seen in other regional and sector funds over multiple time periods. The sustainable funds have also fared relatively well, with the Stewart Investors Worldwide Sustainability Fund returning 10.2% p.a. over 10 years. While performance can fluctuate over shorter periods, the long term results highlight Stewart Investors’ skill in delivering consistent outperformance through quality growth investing.
Stewart Investors charges management fees broadly in line with active peers
As an active investment manager, Stewart Investors levies management fees on its funds mostly in the range of 0.75% to 1.5% per annum. These fee levels are quite typical for actively managed funds. Stewart Investors does not charge any performance fees on its conventional fund range. Its sustainable funds incur performance fees of 10% to 15% on excess returns above hurdle rates. Overall, Stewart Investors’ fee structure is considered reasonable given its investment style and does not impose an excessive cost burden for investors seeking its portfolio management expertise.
In summary, Stewart Investors has carved out a strong reputation for quality growth investing over its 30+ year history. Its focus on sustainability sets it apart from conventional active managers. While fees are in line with active peers, Stewart Investors’ funds have generated impressive long term returns through its investment philosophy. For investors aligned with its quality and ESG focus, Stewart Investors is a leading investment manager choice to consider.