The Scottish Oriental Smaller Companies Trust plc aims to grow your money in the long term by investing mainly in what the Company would regard as smaller companies in Asia which are listed on a stock exchange. Smaller companies are those which are valued at below US$5,000m, or the equivalent, at the time of first investment. Scottish Oriental invests in companies in countries including Australasia, China, Hong Kong, India, Indonesia, Japan, 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.
Our Investment Approach
Our investment approach is centred on identifying quality companies, buying them at a sensible price and holding for the long term. We look for founders and management teams that act with integrity* and risk awareness; and dominant franchises that have the ability to deliver sustainable and predictable income over the long term.
Our Investment Process
The most significant source of investment ideas for us 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 decider in our investment decisions.
* Integrity: noun, adherence to moral and ethical principles; soundness of moral character; honesty. Source: https://www.dictionary.com/browse/integrity