The Stewart Investors Worldwide Leaders Sustainability Fund (the Fund) is PIE-compliant New Zealand-domiciled fund within the Stewart Investors (NZ) Managed Investment Scheme. FundRock NZ Ltd is the issuer and manager of the Fund. The Fund is registered as an offer within a Managed Investment Scheme under the Financial Markets Conduct Act 2013 and is regulated by the FMA.
The Manager appointed First Sentier Investors (Australia) IM Ltd (‘First Sentier Investors’ or ‘Investment Manager’) as the investment manager for, and distributor of, the Scheme. As Investment Manager, First Sentier Investors will be responsible for making decisions about what the Fund invests in, in accordance with the Statement of Investment Policy and Objectives (‘SIPO’) for the Scheme.
The Investment Manager may sub-delegate any of its duties, responsibilities, functions or powers to manage the assets of the Fund to one or more affiliates within the First Sentier Investors group. As at the date of this PDS, investment management responsibilities are undertaken by Stewart Investors, who are an investment team within the First Sentier Investors group.
Investment objective
To achieve long-term capital growth by investing directly or indirectly in a diversified portfolio of equity or equity-related securities of larger capitalisation companies which are listed, traded or dealt in on any of the regulated markets worldwide. The Fund aims to exceed the MSCI All Country World Index (NZD) over rolling five-year periods before fees and taxes. The benchmark is not used to limit or constrain how the Fund’s portfolio is constructed. The Fund invests in companies which are positioned to contribute to, and benefit from sustainable development. Larger capitalisation companies are currently defined for the purposes of this Fund as companies with a minimum investible market cap (free float) of US$5 billion at the time of investment. The Investment Manager may revise this definition as considered appropriate. The Fund may have exposure to developed markets or emerging markets whilst maintaining its geographical diversity.
Investment strategy
The Investment Manager applies a bottom-up approach and aims to invest only in well-stewarded, high quality companies with sustainability at the heart of all investment considerations. Investment decisions around companies focuses on quality:
- Quality of management including integrity, attitude to environmental and social impacts, corporate management, long-term performance and risk.
- Quality of the company franchise including its social usefulness, their environmental impacts and efficiency and responsible business practices.
- Quality of the company’s financials including a preference for low net debt, strong cash flows and fair tax practices, as well as robust financial performance.
The Investment Manager recognises and supports the need for societies to maintain a sustainable ecological footprint as they develop and believe a company’s ability to contribute to and benefit from helping societies to achieve this – i.e. its sustainability positioning – is a key indicator of its quality.
The Fund does not hedge currency risk.
