BNY Mellon Global Leaders Fund
To achieve long-term capital growth.
7 Dec 2016
Why invest in this fund?
Long-term global focus
Walter Scott’s distinctive investment process is ideally suited to managing global equity portfolios. The firm has a clear and consistent investment philosophy and proven research process.
Concentrated portfolio of globally leading companies
Investment through fundamental analysis and selection of 25-30 industry leading companies with excellent long term growth potential operating with superior business models underpinned by a sustainable competitive advantage.
Buy and hold high conviction
Buy and hold high conviction: A traditional, long-only ‘buy and hold’ approach to global equity management with low portfolio turnover and longevity of investment horizon.
The research team at Walter Scott focuses on businesses that can display rigour and discipline in the manner in which they deploy capital throughout the business cycle. The cornerstone of our investment process is the pursuit of companies that can add value and act as responsible stewards of shareholder’s funds. We eschew bloated surfers of the cycle with unsustainable business models that have gorged themselves on debt and spent recklessly.
Each dollar spent should enhance value, not dilute returns.
It is of course the case that to maintain market leadership, innovate, and thrive across cycles, businesses have to invest and do so in a disciplined fashion. We have no interest in companies that underinvest in their business in order to meet short-term targets. They are typically poor candidates for compounding profits. Far better that they invest appropriately to bolster and grow the company’s brands and franchise value, with the goal of achieving good returns over the long term. At the other end of the scale, those that have embarked on an undisciplined capex binge and miscalculated end demand, may find their returns on investment are diminished when the economic cycle turns. When we look at how businesses develop and expand, we have to be assured that they are spending productively, and that each dollar spent is not return dilutive but value enhancing.
There are a number of metrics we employ to examine how smartly a company is spending. All of them hinge on a key tenet – the return on invested capital has to handsomely exceed the cost of capital throughout cycles. To this end, we assess and analyse capital and operational expenditure, how companies control costs, the use of M&A, intellectual property purchases; making qualitative and quantitative assessments of their impact on bottom lines and cash flows. Over the long run, a company’s ability to add value to every dollar spent will become apparent in the numbers.
Annual Performance (%)
Source: Lipper as at 31 December 2019. Fund performance USD W (Acc.) calculated as total return, based on net asset value, including charges, but excluding initial charge, income reinvested gross of tax, expressed in share class currency. The impact of the initial charge, which may be up to 5%, can be material on the performance of your investment. Performance figures including the initial charge are available upon request.
Agents of Change in practice
About Walter Scott
Walter Scott & Partners Limited is a classical, fundamental and long-term global equity investment management firm.
Ready to invest in the fund?
Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.
Past performance is not a guide to future performance.
The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.
Objective/Performance Risk: There is no guarantee that the Fund will achieve its objectives.
Currency Risk: This Fund invests in international markets which means it is exposed to changes in currency rates which could affect the value of the Fund.