Team changes at First State Stewart Investors

We would like to highlight to investors and fund holders that Stewart Investors have recently announced their intention to make some changes to portfolio management responsibilities for some of their strategies. The changes are expected to be completed by the 1st of July 2016.

Stewart Investors Asia Pacific Leaders

We will continue to maintain the AAA rating on the Stewart Investors Asia Pacific Leaders fund.

Whilst lead manager Angus Tulloch will be handing over portfolio management responsibility to David Gait (who is currently the co-manager on the fund) and Sashi Reddy, the upcoming change has not affected our view of Stewart Investors. Mr Gait joined the team in 1997 and is well versed with the intricacies of investment in Asia - as are the other senior members in the team. The process is tightly followed and has been in place for more than two decades; the team all share the same investment culture, philosophy and mindset, which is founded on the responsible stewardship of capital. We therefore believe that in practice the management of the fund is likely to change very little.

Mr Tulloch will continue as an active member of the investment team and will continue to be co-manager of the Asia Pacific fund, which is managed along similar lines.

Stewart Investors Worldwide Sustainability

We will continue to maintain the A rating on the Stewart Investors Worldwide Sustainability fund.

Manager David Gait will be handing lead management of the fund to Nick Edgerton, who is currently the co-manager on the fund. Mr Gait will remain on the fund as co-manager. The upcoming change has not affected our view of Stewart Investors, and we believe this subtle change to the management of the team will make very little difference to the way the fund is run on a day-to-day basis.

This fund was launched in November 2012 and whilst it will take time for the approach, which has worked well in Stewart Investors's Asian and emerging market strategies, to prove to be as robust in a global context, our conviction in the offering, and in particular in the transposition of the process to a global universe, has grown with the evolution of the portfolio, which has stayed true to the team's investment ethos. We see the fund as an attractive choice for the long-term investor who is seeking a global portfolio of quality businesses that are ideally positioned to contribute to and benefit from the sustainable human development.

Stewart Investors Global Emerging Markets Leaders

We have decided to suspend the AAA rating on the Stewart Investors Global Emerging Markets Leaders fund.

We have a high regard for the lead manager, Jonathan Asante, who will continue to manage the fund until July 2016 before handing it over to co-managers, Ashish Swarup and Tom Prew. Although we are very familiar with the overall team and Mr Prew, who has been involved in the strategy for some years, we want some time to meet Mr Swarup as he joined the group relatively recently in 2014. We are therefore suspending the rating pending a full review with the new manager. Given the lengthy handover period which has been announced, we have no imminent concerns for the holders of the fund, but are keen to meet the new manager in order to form a longer-term opinion.