Seeking exposure to high quality, high growth companies in emerging markets

What the Walter Scott Emerging Markets Fund offers

Quality exposure

Seeking high quality emerging market companies with strong growth characteristics

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

Capitalise on the potential growth of emerging economies.

Walter Scott invests only in companies it believes have long-term growth potential.

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 being made and the time the redemption 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.

For a full description of the risks of investing in the fund, you should read the Product Disclosure Statement before deciding to invest.

About the Walter Scott Emerging Markets Fund

Investment manager

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.

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).

Investment approach

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.

How the Walter Scott Emerging Fund works

Walter Scott believes that companies capable of generating strong and sustained earnings growth over long periods typically exhibit key strengths such as:

  • high return on equity
  • high free cash flow, and
  • high earnings growth.

Walter Scott's fundamental bottom-up investment approach combines detailed financial analysis with qualitative research in screening the global share universe for companies that are likely to meet its investment criteria.

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.

Fund information

Fund NameWalter Scott Emerging Markets Fund
Investment manager Walter Scott & Partners Limited
APIR code MAQ0651AU
Inception date 23 June 2011
Distribution frequency Generally annually
Management fee

1.38% pa (inclusive of GST)

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

Minimum investment $20,000
Performance report View the latest performance report.
Flyer Learn more about the benefits of the fund.

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