About the Trust

About the Trust

ScotGems plc (“the Company”) is an investment trust investing in global emerging market small companies.

Investment Philosophy

The principle of stewardship is central to Stewart Investors’ investment philosophy.

The investment style is inherently conservative, focusing on the potential downside as well as on the upside of any investment. Capital preservation is deemed to be as important as capital growth.

The focus on stewardship is particularly appropriate when investing in smaller companies with restricted public coverage, limited liquidity and, sometimes, relatively short performance records.

Each investment opportunity is evaluated in line with the following:


At the heart of our investment approach is the concept of stewardship. We believe our job is to allocate our clients’ capital to good quality companies with sound growth prospects and strong management teams, ensuring we pay sensible prices for these investments. Each investment is a decision to purchase, on behalf of our clients, not a piece of paper or an electronic ticker, but part of a real business with all the rights and responsibilities that go with this. We take these rights and responsibilities seriously. We also believe the way we behave as investment professionals and the role we play in the broader industry are important in this regard.


We define risk as the risk of losing our clients’ money, rather than in terms of deviation from any benchmark index. We focus as much on the potential downside of each investment decision as on the anticipated upside.


We make investment decisions with a long-term horizon and are incentivised accordingly.


We invest in companies, not sectors or countries. Our starting point is always to find good quality companies. Only then do we consider the political and economic environment in which they operate.


We emphasise management integrity, corporate governance and the historic ability to develop and execute successful long-term strategies. The strength of the business franchise and approach to financial risk are also deemed critical.


Our preference is to invest in companies able to generate a steady, predictable growth in cashflows over the long-term, recognising that companies growing too fast usually come unstuck.


We strive to ensure we pay sensible prices for our investments. We believe every company of sufficient quality has a fair value and that there is no single catch-all valuation methodology to assess this fair value.

Investment Manager

The Company’s Investment Manager is Stewart Investors.

Stewart Investors manages portfolios on behalf of clients in Asia Pacific, Emerging Market, Frontier, Latin American, Worldwide and Sustainable equity investment strategies.

Primarily based in Edinburgh, with offices in London, Singapore and Sydney, Stewart Investors has a distinct culture and investment philosophy which is unchanged in more than two decades, since the launch of the first investment strategy in 1988.

The incentive scheme at Stewart Investors sees portfolio managers and analysts invest alongside clients in the funds they run for them.

History of Stewart Investors

Stewart Investors, which is a trading name for First Sentier Investors International IM Limited, is the Company’s investment manager and is a member of MUFG, a global financial group. Based in Edinburgh with offices in London, Singapore and Sydney, the current team at Stewart Investors traces its origins to the establishment of an Asia Pacific (ex-Japan) desk at Stewart Ivory in 1988; this team has grown considerably since, expanding its coverage to Global Emerging Market, Small Cap, Sustainability and Worldwide long-only equity strategies.

Portfolio Manager

The Portfolio Manager is Tom Prew, supported by Chris Grey.

Tom Prew

Tom Prew is a Portfolio Manager and Analyst with the St Andrews Partners team at Stewart Investors. He joined the team as a graduate in 2006. Tom also sits on the Stewart Investors Board.

Tom has lead manager responsibilities for a number of GEM strategies.

Chris Grey

Chris Grey is an Analyst with the St Andrews Partners team at Stewart Investors. He joined the team in September 2015.

Chris graduated with a law degree from the University of Aberdeen in 2011 and worked at Deloitte for three years, where he qualified as a Chartered Accountant, before joining Stewart Investors.

Investment Objective

The Company’s objective is to provide shareholders with long term capital growth.


Investment Policy

The Company seeks to achieve its investment objective by investing in a diversified portfolio of Small Cap Companies.  The Company’s portfolio will consist primarily of companies that are incorporated or listed in emerging markets or listed on developed market exchanges where a majority of their activities take place in emerging markets.  The Company will invest across a range of sectors.  Small Cap Companies are defined as those with a market capitalisation of less than USD 2.5 billion at the time of investment.  The Company may only invest in unlisted companies where it is reasonably expected that such companies will be listed within 12 months from the time of investment. The aggregate value of all investments in unlisted companies (based on the original book cost of each investment) shall be limited to 15 per cent. of the net assets of the Company at the time of investment.

The Company’s portfolio is expected to be concentrated as the number of investments in the portfolio will typically range between 30 and 50 holdings in normal market circumstances.  It is intended that a diversified portfolio will be maintained at all times, and the single largest investment will not exceed 15 per cent. of net assets of the Company at the time of investment.

The Company has not set any maximum or minimum exposures for any geographical regions or sectors and will achieve an appropriate spread of risk by investing in a diversified portfolio of equity and equity related securities issued by Small Cap Companies including, for example (but without limitation) ordinary, preference, non-voting and convertible securities and warrants.  However the Company’s exposure to warrants will not exceed 5 per cent. of the Company’s net assets at the time of investment and the Company will not hold warrants if their exercise would breach any other limits set out in this investment policy.  The Company will not participate in any stocklending or short selling of securities.  Other than warrants, derivatives may only be used for the purpose of efficient portfolio management and with the prior approval of the Board.

Cash may be held for working capital purposes and while awaiting investment.  It can be invested in cash deposits, gilts and money market securities, fixed interest securities and money market funds.

The Company may borrow money for investment purposes if the Board considers it appropriate.  Borrowings are limited to a maximum of 20 per cent. of the Company’s net assets at the time of drawdown.

Any material change to the Company’s investment policy will require the approval of Shareholders at a general meeting.  In the event of a breach of the Company’s investment policy, the Board will announce through a Regulatory Information Service the actions which will be taken to rectify the breach.

Board of Directors

Please see profiles of each Director below:

All of the independent Directors are members of the Audit and the Remuneration Committees.

William Salomon (Chairman)

William is the Senior Partner of Hansa Capital Partners, Deputy Chairman of Ocean Wilsons Holdings Limited and its listed subsidiary Wilsons Sons Limited and a Director of Hansa Trust PLC.  William has worked within the fund investment business for many years and was responsible for developing Finsbury Asset Management and the Finsbury range of funds based on the concept of early recognition of key investment trends, such as life sciences and technology.

James Findlay

James is a founding partner and a director of Findlay Park Partners LLP. He began his City career with Hoare Govett in 1978 and was a fund manager and Director of Foreign and Colonial Management Limited from 1983 to 1997. He is currently a non-executive Director of Troy Asset Management Limited.

James Maclaurin

James has a background in the telecoms and technology sectors and is currently the CEO of a telecom startup in the UK. Prior to this James was the founding CEO of edotco, the spinout of Axiata’s infrastructure in five Asian markets and from April 2011 to April 2014 he was Group CFO of its parent, Axiata, one of Asia’s largest telecommunications groups. During the previous decade James was CFO for Vodafone in Central Europe and Africa, Group CFO of Celtel, the pan-African mobile operator prior to its sale to Airtel, and CFO of UbiNetics, the Cambridge UK-based software developer successfully sold to Cambridge Silicon Radio (CSR plc) and Aeroflex. He is currently an independent non-executive director for Dialog Axiata PLC. James is a member of the Institute of Chartered Accountants of Scotland.

Angus Tulloch (non independent)

Angus is a former Joint Managing Partner of Stewart Investors. Joining Stewart Ivory in 1988, he established that firm’s Asia Pacific (ex Japan) desk, founding and managing various regional investment mandates over the following 28 years; these included Asia Pacific, Global Emerging Markets and Asian Small Cap strategies. Prior to joining Stewart Ivory, Angus was employed by Cazenove for eight years, three of which were spent based in their Hong Kong office.

Anne West (non independent)

Anne has a background in investment management and retired from Cazenove Capital Management at the end of 2012. She was most recently a Fund Director in the Private Client department of Cazenove Capital Management. She joined Cazenove in 1989 and assumed responsibility for Asian and Japanese portfolios, later becoming Head of the Emerging Markets team and then the Global Equity team. Anne was Chief Investment Officer from 2001 to 2008. Previously, she held positions at Standard Chartered Bank and Hambro Pacific, based in Hong Kong. She is a non-executive Director of Hg Capital Trust plc and Scottish Oriental Smaller Companies Trust plc.