Stewart Investors Asia Pacific Leaders Class B - Income (GBP)

The chart to the right initially shows David Gait's record managing the Stewart Investors Asia Pacific Sustainability Fund. It subsequently shows performance of the Stewart Investors Asia Pacific Leaders Fund since he was made lead manager.

David Gait and the team at Stewart Investors have performed much better than the broader Asian stock market over the long run. Our analysis suggests they've done a good job of investing in companies that have gone on to perform well in different market conditions. Their conservative investment approach has come into its own in falling markets when the fund has tended to offer some shelter. It might not perform as strongly when markets are rising quickly though.

Stewart Investors and its fund managers have based their approach on the same investment philosophy that dates back to 1988. The philosophy is founded on stewardship, and the team invests investors' capital as though it's their own. They aim to grow investors' wealth over the long term, while limiting losses when markets fall.

Sustainability issues form a core part of the investment strategy. Gait focuses on companies he believes could benefit from and contribute to the sustainable development of the countries they're based in.

Gait invests in quality companies he believes can deliver sustainable and predictable growth over the long term. He likes cash-generative businesses, which are in good financial health and could withstand periods of economic volatility. The manager also puts emphasis on businesses' people and culture, and only invests in companies he believes are run by management teams with integrity.

Gait focuses on sectors that are typically more defensive, which means they're expected to hold up a bit better when markets are weaker. This includes the consumer staples and healthcare sectors, which tend to sell products and services that people often continue to buy, regardless of what's going on in the wider economy.

While the manager finds some of the most attractive long-term opportunities in places such as India and Taiwan, the fund also has more invested in Japan than most Asia Pacific funds. Funds in the IA Asia Pacific ex Japan sector can invest up to 5% in Japanese companies. However, over the years Gait has found an increasing number of high-quality companies that are located in Japan, but carry out most of their business within Asia, particularly China. To invest more in Japan and provide additional flexibility, the fund is in the IA Specialist sector.