Performance
WS Equities Net
MSCI NDR
*Inception date 31 December 2006
Annualised performance
| Returns in US dollars % as of 30 September 2025 | 1 Year | 3 Years | 5 Years | 10 Years | 15 Years |
|---|---|---|---|---|---|
| Walter Scott USA Equities Composite, net | 7.5 | 16.9 | 10.4 | 12.5 | 11.9 |
| MSCI USA (ndr) | 17.7 | 24.6 | 15.7 | 14.7 | 14.0 |
Calendar year performance
| Returns in US dollars % as of 30 September 2025 | YTD | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Walter Scott USA Equities Composite, gross | 7.0 | 16.1 | 18.8 | -20.2 | 25.6 | 19.1 | 30.0 | 0.2 | 27.4 | 11.5 | -0.4 |
| Walter Scott USA Equities Composite, net | 6.5 | 15.3 | 18.0 | -20.7 | 24.8 | 18.3 | 29.1 | -0.5 | 26.6 | 10.8 | -1.0 |
| MSCI USA (ndr) | 14.6 | 24.6 | 26.5 | -19.8 | 26.5 | 20.7 | 30.9 | -5.0 | 21.2 | 10.9 | 0.7 |
| Excess Returns (net vs index) | -8.1 | -9.3 | -8.5 | -0.9 | -1.6 | -2.4 | -1.7 | 4.6 | 5.4 | -0.1 | -1.7 |
Past performance is not a guide to future performance and returns may also increase or decrease as a result of currency fluctuations.
Source: Walter Scott (Strategy), MSCI (Index). Gross performance returns do not reflect the deduction of investment advisory fees which if applied would reduce returns but they do reflect the reinvestment of dividends and/or other earnings. Net performance returns reflect the deduction of a model management fee of 0.66% per annum and the reinvestment of dividends and/or other earnings. Please note that the maximum management fee rate payable is 0.50% per Part II of Form ADV for Walter Scott. Please refer to the back page for further information.
MSCI USA is used as a comparative index for this strategy for illustrative purposes. The strategy does not aim to replicate the composition or performance of the comparative index. Walter Scott claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Strategy overview
US$71.3bn
Firm wide AUM
US$0.3bn
US equity strategy AUM
Composite inception date: 28 February 2000
The USA Equity strategy aims to provide investors with a favourable real rate of return over the long term by investing in a portfolio of leading companies located in the US. Stocks are selected through bottom-up, in-house company analysis.
The portfolio will typically consist of 40-60 world-class companies we consider capable of generating superior real returns over the long-term. These will be companies which we believe demonstrate high levels of sustainable growth and profitability, alongside strong balance sheets.
Our unconstrained approach typically leads to portfolios that bear little or no resemblance to any stock market index.
Portfolio characteristics
| Characteristics | Portfolio |
|---|---|
| Number of Securities | 43 |
| Operating Margin | 19.4% |
| ROE | 34.3% |
| Net Debt to Equity* | 50% |
| P/E Ratio (LTM) | 32.9x |
| Dividend Yield** | 0.7% |
| Active Share | 82% |
| Portfolio Turnover (Typical Annual Range)† | 5%-15% |
Top ten stocks
| Stock | % of Portfolio |
|---|---|
| Amphenol | 4.73 |
| O’Reilly Automotive | 4.52 |
| Microsoft Corporation | 4.40 |
| Amazon | 4.14 |
| Booking Holdings | 3.33 |
| Fastenal | 3.19 |
| Mastercard | 3.18 |
| TJX Companies | 3.08 |
| Fortinet | 2.94 |
| Eli Lilly | 2.88 |
Source: Walter Scott, FactSet & MSCI. Portfolio Characteristics are subject to change and are based on a Walter Scott USA Equity representative portfolio as at 30/09/25. *Net Debt to Equity figure excludes securities from the financial sector. **Gross of fees. †Based on the last 10 calendar years of representative portfolio turnover. Please see Portfolio Characteristics definition overleaf.
Sector
| Healthcare | 22.6% | 22.6 |
| Information technology | 21.3% | 21.3 |
| Consumer discretionary | 21.2% | 21.2 |
| Industrials | 17.5% | 17.5 |
| Financials | 9.0% | 9.0 |
| Materials | 2.5% | 2.5 |
| Communication services | 2.3% | 2.3 |
| Consumer staples | 1.5% | 1.5 |
| Energy | 1.0% | 1.0 |
| Liquidity | 1.2% | 1.2 |
Source: Walter Scott, USA Equity representative portfolio as at 30/09/25 used to demonstrate Top Ten Stocks, Sector and Region information. The representative portfolio adheres to the same investment approach as the Walter Scott USA Equity Strategy. All holdings are subject to change. Information is historical and may not reflect current or future portfolio’s. Percentages may not equal 100% due to rounding.
This information should not be considered a recommendation to purchase or sell any security. The data shown should not be relied upon as a complete listing of the strategy’s holdings as information on particular holdings may be withheld. There is no assurance that any securities shown will remain in a portfolio at the time you receive this factsheet or that securities sold have not been repurchased. It should not be assumed that the holdings listed were or will prove to be profitable or that the investment decisions Walter Scott makes in the future will be profitable or will equal the investment performance illustrated.
Investment approach
Company focus
Unconstrained, rigorous in-house company research is based on our consistently applied philosophy and process. We only select those businesses which meet our stringent investment criteria, regardless of their geography or industry.
Team approch
We invest as a team. Our longtenured, experienced investment team challenges and debates all proposals.
Investment horizon
We invest for the long term in order to exploit the power of compound growth. Our research process is designed to identify well-managed, enduring and resilient companies, taking all relevant factors into account.
Important information
Firm definition
Walter Scott & Partners Limited (“Walter Scott”) is an investment management firm authorised and regulated in the United Kingdom by the Financial Conduct Authority in the conduct of investment business. Walter Scott is a non-bank subsidiary and 100% owned by The Bank of New York Mellon Corporation. All operations are based in Edinburgh, Scotland with a client service presence in the United States. Walter Scott is responsible for portfolios managed on behalf of pension plans, endowments and similar institutional investors.
Explanatory notes
To receive a list of composite descriptions of Walter Scott and/ or GIPS® reports, please email clientservice@walterscott.com or contact the Client Management team using the telephone number or address shown at the end of this document.
Composite description
This includes all USA portfolios. Portfolios within the composite typically hold 40 to 60 stocks.
Fees
Net of management fee composite returns are calculated by deducting a model fee from the gross return. Actual management fees may differ from the model fees used and performance-based fees may result in higher fees than model fees applied. The model fee rate is higher than the 10-year average actual composite fee rate as at 31 December 2024. The model rate deducted is equivalent to the highest fee rate that would be charged to the intended audience. For further details of fee rates see Part II of Form ADV.
Portfolio characteristics definitions
Portfolio turnover is calculated based on purchases and sales arising from investment decisions (i.e. excluding investment activity due to cash flows), relative to the average portfolio market value (calculated using month-end values) over the reporting period. The calculation is performed monthly, and longer-term figures are derived by aggregating the monthly results. The typical annual range is based on the last 10 calendar years of representative portfolio turnover. Prior to 2023, portfolio turnover was calculated based on all purchases and sales, less inflows and outflows, relative to the portfolio average market value over the reporting period. Please contact us on clientservice@walterscott.com for further information on the methodologies used in the calculation of the portfolio characteristics shown.
Benchmark definition
MSCI USA: a US equity benchmark that represents large and mid-cap equity performance. It is not directly exposed to emerging markets. Further information can be found at www.msci.com.
Key investment risks
Equities are subject to market, market sector, market liquidity, issuer, and investment style risks, to varying degrees. Small and midsized company stocks tend to be more volatile and less liquid than larger company stocks as these companies are less established and have more volatile earnings histories. Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries.
Investment return and principal value of an investment will fluctuate, so that when an investment is sold, the amount returned may be less than that originally invested.
Important regulatory information
This information is for institutional investors only. This is a financial promotion. The factsheet is provided for general information only and should not be construed as investment advice or a recommendation. This information does not represent and must not be construed as an offer or a solicitation of an offer to buy or sell securities, commodities and/ or any other financial instruments or products. This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised.
Walter Scott & Partners Limited (Walter Scott) is authorised and regulated in the United Kingdom by the Financial Conduct Authority.
Walter Scott is also registered as an investment adviser in the US with the Securities and Exchange Commission (SEC). Securities offered in the US by BNY Mellon Securities Corporation (BNYMSC), a registered brokerdealer. Investment advisory products offered in the US through BNYMSC employees acting in their capacity as associated investment adviser representatives of BNYMSC.
Walter Scott is registered in Canada as an Exempt Market Dealer (EMD) (through which it offers certain investment vehicles on a private placement basis) in all Canadian provinces and is also availing itself of the International Adviser Exemption (IAE) in these same provinces with the exception of Prince Edward Island. Each of the EMD registration and the IAE are in compliance with National Instrument 31- 103, Registration Requirements, Exemptions and Ongoing Registrant Obligations.
In Australia, this material is provided on the basis that you are a wholesale client as defined within s761G of the Corporations Act 2001. Walter Scott is registered as a foreign company under the Corporations Act 2001. It is exempt from the requirement to hold an Australian Financial Services License under the Corporations Act 2001 in respect of these services provided to Australian wholesale clients.
In South Africa, Walter Scott is registered as a Foreign Financial Services Provider with the Financial Sector Conduct Authority. FSP No. 9725.
Calls to Walter Scott & Partners Limited may be recorded in line with applicable laws and regulations and for training and monitoring purposes.
Contact
Telephone
+44 (0)131 225 1357
