New sustainable fund comes to New Zealand

Edinburgh-based fund manager Stewart Investors launches its sustainable fund in Aotearoa.

Wednesday, July 20th 2022, 9:01AM

The Stewart Investors Worldwide Leaders Sustainability Strategy is the latest international fund to be brought to New Zealand by Implemented Investment Solutions.

The strategy holds shares of large and mid-sized companies around the world, in both developed and emerging markets, that have a market cap of at least US$5 billion. It seeks to achieve long-term capital growth for investors through a diversified portfolio of equity or equity-related securities which are listed, traded, or dealt in, on any of the regulated markets globally.

The portfolio team selects companies that are positioned to contribute to, and benefit from, sustainable development. As a result, the strategy has an 85% lower carbon intensity than the MSCI All Country World Index (ACWI) benchmark.

The fund will aim to exceed the MSCI ACWI over rolling five-year periods (before fees and taxes) but portfolio construction is not limited or constrained by the benchmark. The fund will be able to hold between 40 and 60 investments at any one time.

Managed by Sashi Reddy and David Gait, who are based in Singapore and Sydney respectively, the fund offers New Zealand investors access to Stewart Investors’ proven global equities and sustainability capabilities.

Stewart Investors launched its first sustainability strategy in 2005 and has since demonstrated that sustainable investing can be a powerful driver of risk adjusted returns over the long term. The team is supported by the heritage of Stewart Investors, dating back to 1988.

The fund will aim to achieve positive social and environmental outcomes by investing in, and proactively engaging with, companies which support positive contributions to the likes of health and wellbeing, financial inclusion, reducing waste, water and energy efficiency, and renewable energy, while avoiding companies that participate in harmful and controversial practices.

The fund is certified by the Responsible Investment Association Australasia.

Sashi Reddy, portfolio manager at Stewart Investors, said: “Stewart Investors has a strong track record of sustainable investing, as we launched our first sustainability strategy in 2005 and consistently hold high quality companies in our portfolios for many years – in some cases, for more than 25 years.

“We are passionate believers that long term capital can play a productive role in the sustainable development of economies, by allocating capital to productive uses and invest in firms which contribute to a more sustainable future. We do this through our bottom-up assessment approach, which works towards ensuring that all of our investments are best placed to deliver solid absolute returns over the long term.”

Tags: Sustainability