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First Sentier Investors publishes its first Assessment of Value report for the year 31 July 2020

What is the Assessment of Value report?

The report reflects our assessment of value delivered to investors in our fund range over the assessment period to 31 July 2020. A detailed analysis for each fund is listed firstly by our affiliate investment team (First Sentier Investors, FSSA Investment Managers or Stewart Investors), then in alphabetical order. It is important to note that each fund assessed typically has several share classes, each offering different investment characteristics to differing groups of investors. As our analysis has been conducted at a share class level, this report will be more useful to you if you are aware of which one(s) you own.

Why an Assessment of Value report?

First Sentier Investors’ philosophy and culture is built on the principle of acting as responsible stewards of clients’ assets. This guides how our teams invest as well as how we operate their overall business. We place clients’ interests at the core of their business, with a clear focus on earning and maintaining our clients’ confidence in our investment capabilities and operations. We strive for the highest degree of transparency and accountability and place strong emphasis on the values of honesty and integrity.

Our approach to assessing value

Quality of Service

A key focus on the quality of service that FSI offers to investors is the investment proposition and the focus on active, long-term investment as well as its strength in responsible investments and our history of investing in specialist and emerging markets. Sustainable investment success for investors is only possible with strong governance and where clients are able to remain informed on their investments.

Comparable market rates

While FSI does not set the Annual Management Charge by comparison to the market, the Board considers that this charge should not be significantly higher than other asset managers for the same strategy that could indicate value concerns for investors. When considering the total Ongoing Charge Figure (OCF), oversight and benchmarking of third party costs and protecting investors from diseconomies of scale should allow the Funds to be below median when compared to a relevant peer group.

Performance

When assessing performance, we took into account each fund’s investment objective and investment horizon as well as considering how the investment approach would impact on its return profile. As a result, for most funds we consider a combination of Absolute return, Relative return and Downside capture. The Diversified Growth Fund has a target return stated in its investment objective and so we considered the annualised return net of fees over 5 years compared to UK RPI and the annualised return net of fees over 5 years is compared to UK RPI +4%

Comparable services

The Board considers that the margin earned on a Fund should not be significantly higher than the margin earned on funds managed according to equivalent investment strategies on other platforms or segregated mandates of a comparable size.

Classes of units

The key consideration for this criterion is fairness and so the Board considered whether differences in OCF between classes of shares were reasonable, taking into account differing levels of service and amount of AUM invested into them, and whether investors were in the class of shares with the lowest fee that they are eligible for and is appropriate for them.

Costs

For this criterion, the Board considered whether the structure and allocation of costs borne by each fund was fair, transparent and reasonable, taking into account the services provided.

Economies of scale

As an active, specialist investment manager focused on providing high quality, long term investment capabilities, the Board has given consideration as to how this impacts on any economies of scale that might arise for investors. First Sentier Investors’ policy of attributing expenses is fair and ensures that investors benefit from economies of scale as funds increase in size. Funds also routinely apply fee capping which ensures that investors do not suffer from large costs when fund sizes are small.

Executive Summary

This table summarises the Red, Amber, Green rating for each criteria for each fund. As a result of the Assessment, there is one Red rated fund and two Amber rated funds.

Documents

Full Report

Download here

First Sentier Asian Property Securities Fund

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First Sentier Diversified Growth Fund

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First Sentier Emerging Market Bond Fund

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First Sentier Global Listed Infrastructure Fund

Download here

First Sentier Global Property Securities Fund

Download here

FSSA Investment Management

FSSA All China Fund

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FSSA Asia All-Cap Fund

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FSSA Asia Focus Fund

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FSSA Global Emerging Markets Focus Fund

Download here

FSSA Greater China Growth Fund

Download here

FSSA Indian Subcontinent All-Cap Fund

Download here

FSSA Japan Focus Fund

Download here

Stewart Investors

Stewart Investors Asia Pacific and Japan Sustainability Fund

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Stewart Investors Asia Pacific Leaders Sustainability Fund

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Stewart Investors Asia Pacific Sustainability Fund

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Stewart Investors Global Emerging Markets Fund

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Stewart Investors Global Emerging Markets Leaders Fund

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Stewart Investors Global Emerging Markets Sustainability Fund

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Stewart Investors Indian Subcontinent Sustainability Fund

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Stewart Investors Latin America Fund

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Stewart Investors Worldwide Equity Fund

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Stewart Investors Worldwide Leaders Sustainability Fund

Download here

Stewart Investors Worldwide Sustainability Fund

Download here

Assessment of Value report request form

To request a hard copy of the report please fill out the form below: 

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