• Important Note

    Click to minimise and maximise

      This is a financial promotion for The Scottish Oriental Smaller Companies Trust Plc. Investing involves certain risks including:

    • The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
    • Emerging market risk: emerging markets may not provide the same level of investor protection as a developed market; they may involve a higher risk than investing in developed markets. 
    • Currency risk: changes in exchange rates will affect the value of assets which are denominated in other currencies. 
    • Smaller companies risk: investments in smaller companies may be riskier and more difficult to buy and sell than investments in larger companies. 
    • Leverage risk: the Trust may be leveraged due to: i) borrowings; or ii) the use of derivatives to hedge currency exposure. The amount of leverage employed is disclosed on the Trust’s website from time to time. Higher leverage increases the potential risk of loss. Investment trust share prices may not fully reflect Net Asset Value.
    • For details of the FCA authorised firms issuing this information and any funds referred to, please see Terms and Conditions and Important Information.

      For a full description of the terms of investment and the risks please see the Investor Disclosure Statement.

  • Objective

    The Scottish Oriental Smaller Companies Trust plc aims is to achieve long-term capital growth by investing mainly in smaller Asian quoted companies with market capitalisations under US$1,500m at the time of investment, or the equivalent. For investment purposes, the investment region includes China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam. Countries in other parts of Asia may be considered with approval of the Board.


    Investment Philosophy

    We are conviction-based, bottom-up stock selectors with a strong emphasis on high quality proprietary research. Our investment approach adopts an absolute return mind-set and is inherently conservative, focusing on capital preservation as well as capital growth. By focusing on the potential downside (not just the upside) when making any investment decision, the risk to long-term client returns is significantly reduced. We are long-term investors and prefer to invest in quality companies that we can hold on to for many years.


    Investment Process

    The most significant source of investment ideas for the portfolio comes through country and company visits. As a team, we conduct more than a thousand direct company meetings throughout the year, seeking to identify a small sub-set of quality companies that meet our investment criteria. We place a clear emphasis on frequent visits to countries in the Asia region and on meeting the management of those companies in which the Company is invested, or might invest.

    While cultural, political, economic and sectoral influences play an important part in the decision-making process, the availability of attractively-priced, good quality companies with solid long-term growth prospects is the major determinant of Scottish Oriental’s investment policy. Our country weightings bear no relationship to regional stock market indices and we do not consider ourselves obliged to hold investments in any individual market, sector or company. As a result, our asset allocation on a country and industry level is a residual of our stock selection process.