Walter Scott & Partners Limited (Walter Scott) is a specialist global investment manager established in 1983, in Edinburgh, Scotland. Walter Scott has a wealth of experience in global equity investments. It has been managing emerging market equity portfolios since 1997. Walter Scott is a classical, fundamental and long-term growth manager, committed to an active bottom-up investment strategy.
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).
Walter Scott's fundamental bottom-up investment approach combines detailed financial analysis with business and management analysis. When constructing their 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 their 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.