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Stewart Investors to list global small cap trust

Stewart Investors to list global small cap trust

Stewart Investors is launching an investment trust focused on "smaller, family-owned" businesses from around the world.

ScotGems, which lists on the London Stock Exchange later this month, will seek to provide long-term capital growth by investing in global small caps.

The trust's lead manager Ashish Swarup and co-lead manager Tom Allen will seek to construct a concentrated portfolio of 20 to 30 holdings.

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"Stewart Investors envisage that the investment portfolio will be tilted, at least initially, towards smaller companies in the Asia Pacific and global emerging market universes," added the asset manager.

Small companies will be defined as those with a market cap of less than $2.5bn (£1.9bn) at the time of purchase. 

"ScotGems is looking for investors who are prepared to take a long-term view of their investment, who recognise that short-term returns from small company investment can be particularly volatile and who share the view that companies with a strong sustainability focus are more likely to prove successful investments in the long run," said the company.

Stewart Investors will charge an annual management fee of 1 per cent of net assets, with no performance fee. The trust's ongoing charges figure is expected to be capped at 1.5 per cent of net assets.

The board of directors includes William Salomon, James Findlay and James Maclaurin. Stewart Investors' Angus Tulloch, who has been stepping back from his main duties with the company, will be involved as a non-independent director.