So, we’re here today to talk about the recently
announced news from Stewart Investors that Angus Tulloch is to retire in September 2017.
To provide Morningstar’s views with regard to this event, Mr. Tulloch has been very influential
at Stewart Investors. He joined in 1988, so almost 30 years with the Group and over that
period of time he has helped establish and develop the investment process which is, as
most of us are aware, being one of the most successful within the Asia and GEM equities
based over that period of time. So, the news of his retirement, I think, we
can clearly view as a slight negative for the Group. But that said, the Group itself
is not reliant on one individual for its process. So, there are a number of talented investors
within the Group and a number of fund managers who have produced strong investment returns.
We view the Group as being well-resourced with around 28 individuals involved in generating
ideas and monitoring those ideas on an ongoing basis. And team debate is very much part of
the Stewart Investors’ process and that is set to continue. So, we do not see the retirement
of Mr. Tulloch affecting the established process in any way at all.
So, what does this mean for investors in the Stewart Investor’s funds? Well, our view here
at Morningstar has been to retain the ratings that we have on all of the Stewart Investors’
funds we cover. We haven’t reduced those ratings at all on this news. And as I said, the reason
really is that we do not expect any change in the established process. We feel that the
team is well-resourced and contains individuals that are experienced and can continue to produce
results for investors using this investment style and we expect performance to follow
on in that same manner.