Walter Scott Emerging Markets FundSeeking exposure to quality companies with strong growth characteristics in emerging markets

What the Walter Scott Emerging Markets Fund aims to offer

Quality global exposure

Seeking high quality emerging market companies with strong growth characteristics

Long-term investment approach

Backed by an experienced team of professionals focused on research

Defensive investing

Potential for high returns over a full market cycle, with lower risk than the Benchmark

Investment approach

Walter Scott scours global markets to find what they believe are the best companies in emerging markets, capable of generating sustained wealth over the long term. As fundamental, bottom-up stock pickers, Walter Scott focuses on companies they believe are profitable, have a sound ability to generate cash, and have both strong balance sheets and robust governance structures. The investment team travels extensively to meet directly with company management, to form a first-hand view of a company’s potential for long-term success. Walter Scott’s thorough research program and team-based approach ensure that only their best stock ideas make their way into the portfolio.

Fund facts
Investment objective The Fund aims to achieve a long-term total return (before fees and expenses) that exceeds the MSCI Emerging Markets Index, in $A unhedged with net dividends reinvested (Benchmark)
Benchmark MSCI Emerging Markets Index, in $A unhedged with net dividends reinvested
Inception date 23 June 2011
Fund size $A21.5m (current as at 30 April 2020)
Management fee 1.38% pa of the net asset value of the Fund
Performance fee 0.00%
Minimum investment $A20,000
Distribution frequency Generally annually
APIR code MAQ0651AU
Macquarie Professional Series The Walter Scott Emerging Markets Fund is proudly brought to you by Macquarie Professional Series. Learn more

Read the Product Disclosure Statement for more details on fees and expenses that may be charged.

How to invest Download the flyer

Investment strategy

Walter Scott's fundamental bottom-up investment approach combines detailed financial analysis with business and management analysis. When constructing its portfolio, the investment team focuses primarily on stock-based analysis.

The investment team seeks to invest in companies with long-term growth potential that typically exhibit key strengths, such as:

  • strong earnings growth
  • high return on equity, and
  • sustainable profit margins.

Walter Scott scours the emerging markets for what it believes are the world's best companies. The investment team uses active stock picking to target companies it believes are capable of sustainable wealth generation.

This approach has created a portfolio with growth potential but historically less risk than emerging market indices and global equity indices.

The investment portfolio is constructed with a primary focus on stock-based analysis. Country and sector exposures are a consequence of the search for what are in Walter Scott’s view “the best companies operating in the best sectors.” As a result of this investment approach, the structure of the portfolio is likely to differ substantially from the composition of the Benchmark.

Walter Scott expects that on average, and based on long-term experience, 15 to 25 per cent or less of the stocks in the portfolio will be turned over each year, which reflects its long-term “buy and hold” approach.

It is this long-term, classical and fundamental approach which defines Walter Scott’s conservative style of growth investing.

Performance

Net returns as at 2020-04-30T00:00:00-04:00

Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa) Inception* (%nom)
Walter Scott Emerging Markets Fund** 3.62 -12.05 -5.48 -0.14 1.21 4.64 4.91 6.15 69.68
Benchmark*** 2.05 -10.55 -5.82 -5.39 -1.84 5.12 3.69 5.87 65.70

Download full report

Past performance is not a reliable indicator of future performance. Total returns are calculated based on changes in net asset values and assumes the reinvestment of distributions.

The performance information shown above may differ to the information in the performance report due to rounding.

* Inception date is 23 June 2011

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual investor circumstances, your net returns may differ from the net returns quoted above

*** The Benchmark is the MSCI Emerging Markets Index, in $A unhedged with net dividends reinvested

Managers

Meet the manager

24 March 2017

Watch this short video to hear from Walter Scott’s Investment Director, Roy Leckie, as he provides insight into their unique approach to investing and commitment to delivering long-term returns.

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk. The risks of investing in this Fund include:

International and emerging market risk: The Fund may make investments that have exposure to a range of international economies, including emerging economies. Global and country specific macroeconomic factors may impact the Fund’s international investments. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Emerging markets in particular may experience lower liquidity, the potential for political unrest, the increased likelihood of sovereign intervention (including default and currency intervention), currency volatility, and increased legal risk. These events may impact the Fund’s international investments.

Investment risk: The Fund has exposure to share markets. The risk of an investment in the Fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request or application for units being made and the time the redemption unit price or application unit price is calculated.

Market risk: The investments that the Fund has exposure to are likely to have a broad correlation with share markets in general. Share markets can be volatile and have the potential to fall by large amounts over short periods of time. Poor performance or losses in domestic and/or global share markets are likely to negatively impact the overall performance of the Fund.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.

How to invest

Send us the Application Form and any required identification documents

Resources