HEAD-TO-HEAD: Stewart versus T Rowe Price

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Conclusion

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, assigns a two-crown rating to the Stewart  fund, and rates the T Rowe Price product higher, with four crowns.

Morningstar has awarded the Stewart fund three stars based on historical returns, and with a gold analyst rating for its retail share class because of its low fees. The firm awards the T Rowe Price four stars and a forward-looking analyst rating of silver for its retail share class.

The Stewart Investors Worldwide Leaders Sustainability Fund “benefits from a best-in-class team and clear investment approach, which make it a top global-equity pick,” said Genderen.

Managed by Stewart’s sustainable funds group, “the strategy’s investment team is impressive”. The group’s approach is straightforward and distinct, with the process centred around quality managements and franchises.

Sashi Reddy and his team are typically patient investors and, in addition to their focus on capital preservation, can at times hold high cash levels.  While this can hold the strategy back in growth-fuelled markets such as in 2019, downside protection is a Stewart hallmark, according to Genderen.

“Given the portfolio’s concentrated nature and differentiated positioning, it is a suitable supporting player within an investor’s allocation to global equities,” he added.

Meanwhile, the T Rowe Price Global Growth Equity Fund “is helmed by a standout manager with an all-encompassing approach,” said Genderen.

“We are confident in Scott Berg’s ability to steer this strategy through various environments and have more comfort over the strategy’s high stock turnover and growth tilts.”

Berg also leverages T Rowe Price’s enormous global team to build a distinctive growth portfolio, according to Genderen.

Since taking over, Berg has built up a strong record, beating the strategy’s benchmark and its peers, with less risk. “Berg’s record in adverse markets has been notable, particularly in 2020, where the strategy sailed above its index and peer group.”

“Those elements can amplify return volatility, but the diversification and detailed fundamental research make this strategy a suitable core piece of an investor’s allocation to global equities,” said Genderen.

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