The following funds were subject to action at the latest IAC meeting (29th August):
Stewart Investors Emerging Market Leaders Fund
- The fund had a good quarter, outperforming the benchmark by 4.8%. The fund is minimally below benchmark over 1, 3 and 5 years. Morningstar have recently upgraded the fund from bronze to silver. We recommended maintaining the Stewart Investors Emerging Market Leaders Fund as our Emerging Market Specialist category choice within the Matrix. We will continue to closely monitor the performance of this fund with particular emphasis on the recent improvement in performance, and how successful management are in maintaining this turnaround into the longer term.
Stewart Investors Asia Pacific Leaders
- The fund outperformed benchmark over the quarter and is only underperforming benchmark over 3 years. We recommended maintaining the Stewart Investors Asia Pacific Leaders Fund as an Asia Pacific Core Plus proposition.
- Angus Tulloch retired from Stewart Investors in September 2017. In the years leading up to his retirement, Angus handed all of his portfolio management responsibilities, including management of the Asia Pacific Leaders Fund which has been ran by David Gait since April 2016. The investment philosophy and process which Angus established in 1988 remains largely the same now as it did then, though it has naturally evolved over the years. Stewart Investors emphasize a team approach and reiterate the belief that regardless of who is managing their funds, a consistent investment philosophy and process remains in place.
- Angus maintains a connection with Stewart Investors through his position as a non-independent director for a recently launched investment trust.
Rathbones Global Alpha
- The fund finished ahead of the benchmark over Q2 2018, 1 and 5 years, but remains marginally behind over three years. Positive contributors over the quarter include the funds positioning in US equity markets with the Edgewood Select US Select Growth Fund performing particularly strongly. Investment Trust selection was also positive for relative performance, particularly the US and Japanese selection. However, UK equity positioning, Emerging Markets equities and Equity Investment Trusts were the main detractors.