Scottish Oriental Smaller Companies
Asian small-cap specialist, unloved asset class
22 November 2018
Scottish Oriental Smaller Companies Trust (SST) aims to deliver long-term capital growth from investing in smaller companies listed in Asia ex-Japan. The investment approach is bottom-up to find quality companies with sustainable growth that are reasonably valued. Unconstrained by the benchmark, the well-diversified portfolio of c 60 stocks represents the manager’s highest-conviction ideas, with a preference for domestically oriented businesses in less-developed economies, which can benefit from structural growth drivers. SST has a strong, long-term performance track record and over 10 years has delivered an annualised NAV total return of 18.5%. The trust’s current 14.9% discount to cum-income NAV is deeper than its three-year average, in part reflecting a more risk-averse market sentiment. There is scope for this discount to narrow should sentiment towards Asian equities, and small-caps in particular, improve. MORE »
Small-cap specialist, repositioned for growth
3 July 2018
Scottish Oriental Smaller Companies Trust (SST) aims to generate long-term capital growth from investing in smaller Asia ex-Japan listed companies, typically with a market cap below US$1.5bn. The investment approach is bottom-up focused stock picking, unconstrained by benchmark considerations. Over the past 10 years, the trust has achieved an annualised NAV total return of 14.6% pa. Performance has been lower in more recent years, partly reflecting the relative underperformance of smaller companies versus large-cap companies, and quality versus momentum. The portfolio has been repositioned over the past two years and is now more concentrated and focused on higher-growth companies. A 14.8% discount to cum-income NAV has scope to narrow should small-cap Asian equities regain favour and the portfolio repositioning bears fruit. MORE »
Long-established Asian small-cap specialist
10 January 2018
Scottish Oriental Smaller Companies Trust (SST) was launched in 1995 with the objective of generating long-term capital growth from investing in smaller companies listed in Asia (excluding Japan and Australasia). Its long-term 10-year performance record continues to be strong, although in more recent years SST has lagged the performance of the comparative MSCI AC Asia ex-Japan Index, which has been driven by large-cap and technology stocks in particular. Since Vinay Agarwal became acting (now formal) lead manager in July 2016, the portfolio has become more concentrated and growth orientated. Agarwal believes the trust is well positioned with reasonably valued, quality companies that can grow structurally through economic cycles. MORE »
Investment management changes announced
2 June 2017
Scottish Oriental Smaller Companies Trust (SST) was launched in 1995, aiming to generate long-term capital growth from a portfolio of small-cap Asian equities (excluding Japan and Australasia). When Wee-Li Hee returns from maternity leave in July 2017, she will assume the role of co-manager; interim lead manager Vinay Agarwal has become lead manager on a permanent basis. SST’s board has been strengthened with the March 2017 appointment of Jeremy Whitley as a non-executive director. While the trust’s focus on preserving capital led to underperformance versus the benchmark and peers in 2016 (which was a year characterised by strong equity returns), SST’s longer-term performance record remains intact. It has outperformed its benchmark and the peer group average over five and 10 years. MORE »
Long-term investment in Asian small caps
10 November 2016
Scottish Oriental Smaller Companies Trust (SST) aims to generate long-term capital growth by investing in a portfolio of small-cap Asia ex-Japan equities. Vinay Agarwal is the interim lead fund manager while Wee-Li Hee is on maternity leave; he is assisted by Martin Lau, Scott McNab and the broader First State Stewart Asia team. Stocks are selected on a bottom-up basis, with a view to preserving capital on the downside as well as achieving capital growth. SST has significantly outperformed the peers and the MSCI AC Asia ex-Japan and MSCI AC Asia ex-Japan Small Cap indices over both five and 10 years. MORE »
Exposure to quality Asian small-cap stocks
14 April 2016
Scottish Oriental Smaller Companies Trust (SST) is a well-established Asian trust investing in small-cap companies in the region, excluding Japan and Australasia. Following the 2015 division of First State Stewart into two companies, SST comes under the umbrella of FSS Asia and continues to be managed by Wee-Li Hee, working alongside Martin Lau and Scott McNab. Stocks are selected on a bottom-up basis with a focus on quality companies with good long-term growth prospects. The portfolio is conservatively run with a view to preserving/increasing capital rather than outperforming a benchmark. MORE »
Quality and growth from Asian small-caps
25 June 2015
Scottish Oriental Smaller Companies Trust (SST) is one of the longest-established Asian trusts, and one of only two in its sector with a specialist smaller companies focus. It invests mainly in companies of US$1.5bn or less, drawn from across Asia (excluding Japan and Australasia), with the aim of achieving long-term capital growth. Portfolio construction is mainly driven by stock selection, focusing on quality companies with competitive advantages and stable earnings growth potential. Following the forthcoming division of management group First State Stewart into two companies, SST will come under the FSS Asia umbrella but will continue to be managed by Wee-Li Hee, now assisted by Martin Lau and Scott McNab. MORE »
Selecting quality small-cap stocks in Asia
18 November 2014
Scottish Oriental Smaller Companies Trust (SST) aims to achieve long-term capital growth through investing in smaller Asian companies. The approach is primarily bottom up with an emphasis on quality and attention paid to the potential to deliver absolute returns. This, the managers’ wary view of both market risks and valuations, and a record of outperforming down markets suggests the fund could appeal to those looking for smaller-cap exposure in Asia without undue volatility. MORE »
