The Walter Scott Global Equity Fund was added to Planning Partners recommended list in July 2006 following the designation of an A rating by our preferred Research House, Van Eyk. The Walter Scott Global Equity Fund (Hedged) was then added to the recommended list in July 2008 following its launch in March of the same year.
The ‘hedged’ version of the fund will use currency hedging to lower the risks of investing internationally. When purchasing units in an unhedged fund that invests overseas, an investor is effectively holding overseas assets in the foreign currency. As a result, the value of these assets in Australian dollar terms may be affected by changes in the value of the Australian dollar, relative to the value of the foreign currency.
Walter Scott is a growth orientated specialist global equities manager. The manager is characterised by its rigorous fundamental research and a strong focus on long term wealth generation. Over the long term, stock selection should be the primary source of active return for this global equity strategy. The manager has strong awareness of macroeconomic developments but this is not systematically exploited to generate active return.
Source: Van Eyk International Equities Review (March 2009)
The return for the Fund in the 12 months to 30 November 2009 was negative 4.31%, as compared to the benchmark index for International equities (ASX 200) of negative 7.31%. The hedged fund returned 28.05% over the same period due to the currency strategy. The outperformance of the fund was largely due to Walter Scott’s bias towards quality stocks which have recovered better than their counterparts.
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For more information, or indeed if you would like to discuss the fund in greater depth and how it would fit into your portfolio, please do not hesitate to contact our office on (03) 9830 0366.