Macquarie Professional Series
Enabling local access to global specialists
The Walter Scott Emerging Markets Fund is proudly brought to you by Macquarie Professional Series. We search the world to uncover differentiated investment solutions, enabling local investors to access strategies from world-class fund managers. We leverage our insights into the local investment landscape, seeking to anticipate investment needs and identify relevant opportunities currently overlooked in the market.
Seeking exposure to quality companies with strong growth characteristics in emerging markets
Long-term investment approach
Backed by an experienced team of professionals focused on research
Potential for high returns over a full market cycle, with lower risk than the benchmark
Walter Scott scours global markets for what they believe are the world's best emerging market companies, capable of generating sustained wealth over the long term. As fundamental, bottom-up stock pickers, Walter Scott focuses on companies that are profitable, have a sound ability to generate cash, have strong balance sheets, and robust governance structures. Their approach is focused on the need to generate real returns over the long term.
What does the opportunity represent?
Potential for long-term wealth creation
- Walter Scott seeks to create wealth through the long-term ownership of quality companies.
- Walter Scott has a long-term track record investing in emerging markets, with historically less risk than the benchmark.
- The investment process has historically delivered most, but not all, of the upside in strongly rising markets, while avoiding much of the downside in sharply falling markets.*
Access potential growth of emerging markets
- Driven by growth in population and household wealth, emerging countries have the potential to achieve high levels of economic growth.
- These opportunities may also be associated with higher risks.
- Walter Scott carefully manages emerging market risk through quality exposure; the companies Walter Scott invests in tend to shine out during tougher market conditions.
Benchmark-unaware portfolio, with a long-term focus
- Walter Scott takes an unconstrained approach to investing.
- This allows the investment team freedom to build a diversified portfolio of stocks spanning a range of geographies and sectors.
- Wealth is created through the long-term ownership of companies rather than short-term trading.
Leading in-house research
- Original research is at the heart of Walter Scott’s investment process.
- Combined with detailed financial analysis, the investment team, based in Edinburgh, Scotland, travel extensively to meet directly with company management, and gain on-the-ground insight to form a first-hand view of a company’s potential for long-term success.
Access to the knowledge and investment expertise of Walter Scott
- Walter Scott has applied their brand of conservative growth investing consistently for more than 35 years.
- The investment experience of all 20-plus members of the research team is called on for every investment decision.
*Past performance is not an indication of future performance.
Walter Scott builds and manages its portfolios from the bottom up.
The Fund is actively managed using a benchmark-unaware, fundamental, bottom-up and research-driven approach to build a portfolio of strong growth companies capable of generating wealth over the long term.
- The investment approach combines detailed financial analysis with business and management analysis.
- There are seven particular areas of investigation to assess the long-term potential of a company, as shown in the chart on the left. This includes fundamental issues such as how the company can maintain its competitive advantage, control its destiny and exploit growth opportunities, along with its financial health, competency of management, sustainability of the business franchise and valuation.
- The investment experience of all 20-plus members of the research team is called on for every investment decision. A new idea must achieve unanimous support prior to inclusion, while a sell decision requires only one well-researched dissenting argument.
Collective decision making is integral to Walter Scott’s investment approach. Every portfolio is managed by bringing together the skill and judgement of the 20-plus members on the research team.