The manager said he did not ignore the potential for returns deriving from countries in which corporate governance was not strong. The Gem Leaders fund holds two stocks in its top ten that sell into China and Nigeria. The firms, Uni-President Enterprises and Tiger Brands, respectively, both have strong family-business mentalities, Mr Swarup said.
He added the team would continue to search most in countries like South Africa, India and Chile – encouraged by these nations’ rule of law and respect for property rights.
The Stewart Investors Gem Leaders fund has returned 25 per cent over three years compared with 19 per cent for the MSCI Emerging Markets index, according to FE Analytics.
Key numbers
9.3%
Cash level in the Gem Leaders fund
10.1%
Year-to-date return, in local currency, of the MSCI Emerging Markets index
