9th November 2015 - Following substantial changes to the lead managers on Stewart Investors (previous branded First State) Asia Pacific Leaders fund, it has been removed from the Chelsea Core Selection and Aggressive EasyISA.
Changes have also been made to Stewart Investors Global Emerging Market Leaders and Stewart Investors Latin America funds, which have been downgraded to a generic 'hold' rating.
Juliet Schooling Latter, research director at Chelsea, says: “Following the news this morning that the lead managers have been changed, while we don't believe there is a need to panic and sell, Stewart Investors Asia Pacific Leaders has been removed from the Chelsea Core Selection and the Aggressive Growth EasyISA, and has been replaced with Matthews Asia Pacific Tiger.
“Whilst we are more comfortable with the change in lead manager on the Asia Pacific Leaders fund, than we are with the changes to the other two funds, there is a question mark as to whether the manager, David Gait, can translate the sustainable investment process from what is currently a small and mid-cap fund to an all-cap fund. We will request a meeting with David to talk through this further and may reinstate the Leaders fund to our Selection list at a later date. For now, however, it must be removed.”
“For investors looking for alternative funds in these sectors, here are some alternatives to consider:”
Matthews Asia Pacific Tiger
Matthews is a specialist Asian manager based in San Francisco. This is their flagship fund which aims to invest in high quality companies for the long term. The strategy has been running since 1994, but has only recently become available to UK investors. We particularly like the fund’s willingness to differ from the benchmark and its aim to invest in long-term Asian winners.
JOHCM Asia ex-Japan Small & Mid Cap
For investors willing to take a bit more risk, this high conviction fund is a good option. The managers are willing to make big calls on which countries and sectors to invest in, so it tends to perform very differently from its benchmark. It's still quite a small fund, so it is also very nimble.
Lazard Emerging Markets
Many leading global brands are now emerging market companies and the Lazard aim is to use its 230 strong team of investment analysts to identify the global brands of tomorrow in these developing regions. The managers take a stock-picking approach to achieve this and use market volatility created by macroeconomic concerns to time trading opportunities.
M&G Global Emerging Markets
Matthew’s stock-picking style, and desire to find companies other managers have not, separates this fund from the pack. Investors optimistic about emerging markets’ long-term prospects and comfortable taking some risk may find this fund suitable.
Aberdeen Latin American Equity
Aberdeen’s labour intensive, yet cautious, approach lends itself particularly well to these volatile and less-researched equity markets. This, combined with the strength and stability of the team, gives us confidence the fund can continue to outperform over the long term.