A long history
Scottish Oriental has a long track record of investing in Asia dating back to 1995. Having weathered the good and the bad times in Asian markets over the decades, the team are experienced at taking a long-term approach to choosing high-quality companies to invest in.
Opportunities to grow in Asia
Asia is a diverse and exciting region – it encompasses many different countries, cultures and economies at different stages of their development.
Many people see the economies of some Asian countries growing and becoming more prosperous, and hope by investing in companies in these countries they can benefit from this growth. For example, India is now the most populous country in the world, which means there are a lot of potential consumers ready to buy the goods and services from companies in that country, which means potential for companies providing those goods and services to be more profitable. At Scottish Oriental our investment team is based in Asia, perfectly placed to understand the environment and companies in these markets.
Risk factors
Capital at risk. The value of investments and any income from them may go down as well as up and are note guaranteed. Investors may get back significantly less than the original amount invested.
Read full risk factors
Where we invest
We invest in companies in countries including Australasia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam, and potentially other countries in Asia with approval from our Board.
Smaller companies can mean big business
Investing in smaller companies can be viewed by some people as more risky than investing in larger companies. But as well as risks, there are also opportunities. It is arguably much easier for a smaller company to double its value than it is for a large, established company. It is the job of the team behind Scottish Oriental to analyse all the risks and the opportunities, to do the research, to meet the companies, and then make the careful decision of which Asian smaller companies to invest in.
Top performing investment trust ISAs over the last 25 years
Scottish Oriental has been ranked as the top performing investment trust over the last 25 years by The Association of Investment Companies.
The benefits of an investment trust
There can be benefits to choosing to put your money into an investment trust instead of other options. We’ve listed some of the main reasons investors choose investment trusts below.
Diversified portfolio
Because investment trusts are a type of collective investment, they are often seen as a less risky investment than if you were to invest in the shares of one company.
Scottish Oriental invests in a range of carefully selected companies in different sectors and countries, which can help spread risk and reduce the impact of one company’s performance on your overall investment.
Structural advantages
Investment trusts are “closed-ended” with fixed capital, which means that they are not subject to daily inflows or outflows like other investment funds. This means that the manager can buy smaller, less liquid, companies with confidence, knowing that they will not be forced to sell shares at inopportune times as a consequence of fund flows.
Long-term approach and gearing
Another advantage of the trust structure and the long-term approach it enables is that the manager can take on long-term gearing – borrowing money to invest – which can enhance shareholder returns.
Professional expertise
Researching and analysing different companies to find good investment opportunities is tricky for many individual investors who don’t have the time, expertise or access to information. Investment trusts can be particularly appealing to individual investors who want to invest but are not sure where to start in building a portfolio.
Scottish Oriental is managed by a dedicated team of professional investors who are based in Asia and have years of experience, so are well-placed to invest on your behalf.
Risk Factors
This material is a financial promotion for The Scottish Oriental Smaller Companies Trust Plc (the “Trust”) intended only for those people resident in the UK for tax and investment purposes. 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 below.
For an overview of the terms of investment, risks, returns and costs and charges please refer to the Key Information Document.
If you are in any doubt as to the suitability of our funds for your investment needs, please seek investment advice.
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