Walker Capital Management
7 February 2005
Walker Capital Management launches fund for retail investors
Boutique investment manager Walker Capital Management has launched its Research Selection Fund, a total return focused,
trans-Tasman equity fund for retail investors. Its objective is to generate gross returns that average more than 15%
p.a. (before taxes, fees and expenses) over rolling five-year periods.
Walker Capital Management Managing Director Stephen Walker said launching its first retail product was an exciting
development for the company. “Until now we have only offered our services to investors with over $1 million to invest.
We are delighted to now have a fund in which retail investors can also invest with us.” The fund has a total return
focus and won’t hold stocks just because they’re in an index.
Mr Walker says that globally, investors are increasingly moving towards absolute and total return funds. “In this fund
we simply cherry pick from the best money-making opportunities we identify in the New Zealand and Australian
sharemarkets.”
When there are fewer opportunities worth investing in, the fund can hold up to 20% in cash, minimising the risk of
permanent capital losses. Mr Walker added that “capital preservation is an important aspect of the fund”. “Our
investment process is thorough and includes both qualitative factors, to assess how attractive a company is, and
quantitative factors, to ensure that great companies are also great investments for us”, said Mr Walker.
While the fund is a new offering, Walker Capital Management has been managing wholesale funds using its Research
Selection investment style for over two years and has produced outstanding results.
“For the two years ended 31 December 2004, our Australasian Research Selection style ranked first in the New Zealand
Shares section of the Mercer Investment Consulting wholesale funds survey, with a gross return of 36.7% p.a.,” In line
with most total return funds globally, the fund has a performance fee in addition to its 1.0% annual management fee.
Walker Capital Management earns 10% of all returns in excess of the fund’s performance benchmark, the NZSX 50 Portfolio
Index.
About Walker Capital Management Limited.
Walker Capital Management is a boutique investment management company specializing in the management of Australasian
equity funds. Prior to launching the Walker Capital Management Research Selection Fund its services have been available
only to large investors via separately managed accounts. It was founded by Stephen Walker in 2001 and is 100% owned by
its principals and their family interests. Clients include high net worth individuals, charities, master trusts,
insurance funds and superannuation schemes. Funds under management currently total over $200m.
ENDS