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 exposure

Seeking exposure to quality companies with strong growth characteristics in emerging markets

Conservative investment approach

Access Walter Scott's conservative, team-based approach

Defensive investing

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

Fund facts
Investment objective The Walter Scott Emerging Markets 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 $A18.8m (current as at 30 September 2018)
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.

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 30 September 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
Walter Scott Emerging Markets Fund** -1.14 -0.54 -1.26 7.74 9.59 6.62 6.84
Benchmark*** -0.58 1.00 -3.36 7.56 11.24 9.06 7.04

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Past performance is not a reliable indicator of future performance.

* 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 managers

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:

Emerging market risk: The fund will have exposure to emerging markets. Emerging markets are generally considered riskier than developed markets due to factors such as lower liquidity, the potential for political unrest, the increased likelihood of sovereign intervention (including default and currency intervention), currency volatility, and increased legal risk. Emerging market investments therefore may experience increased asset price volatility, and face higher currency, default and liquidity risk.

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: Share markets can be volatile, and have the potential to fall by large amounts over short periods of time. The investments of the Fund are likely to have a broad correlation with share markets in general, and hence poor performance or losses in domestic and/or global share markets are likely to impact negatively on 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