Select 50: Asia’s leading sustainable companies

One area of the markets that can easily be overlooked is the Asia Pacific region, yet it is home to significant economies like China and India, as well as many fast-growing companies. These have the potential to generate attractive long-term returns, albeit with a higher degree of volatility along the way.

Those who want to take advantage could consider allocating some capital to Stewart Investors Asia Pacific Leaders Sustainability, which is a member of Fidelity’s Select 50 list of handpicked funds. With assets under management of just under £7bn it is one of the largest offerings in the sector and has built up a strong long-term track record.¹

Objective and approach

Stewart Investors Asia Pacific Leaders Sustainability mainly invests in the shares of large and mid-sized companies based in the region. It focuses on high quality businesses that are positioned to contribute to, and benefit from, sustainable development.

Managers David Gait and Sashi Reddy aim to identify the leading companies listed in Asia. Their stock selection decisions are based on three key areas: the quality of the management; the quality of the company including its social usefulness, environmental impact, efficiency and responsible business practices; and the quality of its finances and performance.

This means that each of the holdings should have a resilient balance sheet, good franchise, a strong culture and a focus on sustainability. The investment management company has a long tradition of investing in the Asia Pacific region and an experienced team of experts based in the area.

A pioneer of sustainable investing

Stewart Investors is a pioneer of sustainable investing with an approach that dates back to 1988. The managers only allocate capital to high quality companies with exceptional cultures, strong franchises and resilient financials that are contributing to a more sustainable future.

“We look for stewards who are low profile, competent, long-term decision makers, franchises free from political agendas and financials that are resilient, not frail. Our focus is on quality and we remain indifferent to many of the large, well-known companies, regardless of lower valuations.”²

One of the consequences of this strategy is that the carbon footprint and carbon intensity of the portfolio are much lower than for the benchmark. These measure the level of emissions and the degree of exposure to carbon-intensive companies.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. This fund invests in a relatively small number of companies and so may carry more risk than funds that are more diversified. Select 50 is not a personal recommendation to buy or sell a fund. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.