**Summary of Scottish Oriental Smaller Companies Trust PLCs Final Results for the Year Ended 31 August 2025**
**Financial Performance**
**Net Asset Value (NAV) Total Return** Decreased by 1.6%, underperforming the MSCI AC Asia ex Japan Small Cap Index (8.2%) and the MSCI AC Asia ex Japan Index (16.6%).
**Share Price Total Return** Increased by 3.5%, driven by a 2.0% rise in share price and dividends.
**Dividends** Proposed final dividend of 2.9p per share (up from 2.8p in 2024) and a special dividend of 0.5p per share (down from 1.6p in 2024).
**Portfolio Highlights**
**Top Contributors** NetEase Cloud Music (China, +180.2%), DPC Dash (China, +28.7%), Uni-President China (China, +37.4%), JNBY Design (China, +58.6%), and Radico Khaitan (India, +35.3%).
**Top Detractors** Colgate-Palmolive (India, -40.1%), Philippine Seven (Philippines, -31.6%), Uni-Charm Indonesia (Indonesia, -55.9%), Whirlpool of India (India, -46.6%), and Kansai Nerolac Paints (India, -24.3%).
**Strategic Focus**
**Investment Strategy** Focus on bottom-up investing, identifying well-managed companies with strong competitive advantages and growth potential.
**Market Challenges** Asian markets were volatile, with performance led by a narrow group of larger technology stocks, particularly in China. Smaller companies in India, Indonesia, and the Philippines underperformed.
**Portfolio Evolution** Consolidated portfolio into higher-conviction holdings, reducing the number of companies from over 100 in 1995 to 55 in 2025. Increased exposure to China and India from 2% to over 60%.
**Discount Management**
**Share Price Discount to NAV** Narrowed to 9.6% as of 31 August 2025 (from 14.0% in 2024).
**Share Buybacks** Repurchased 2,772,500 shares during the year, representing 2.4% of shares in issue. Since the year-end, further repurchased 1,235,848 shares.
**Marketing and Engagement**
**Marketing Campaign** Launched a new phase in October 2025, focusing on print and digital media across target publications to raise awareness and attract new shareholders.
**Board Composition** Planned transitions with retirements of Uma Bhugtiar, Andrew Baird, and the Chairman, Jeremy Whitley, over the next few years. Recruitment process underway for successors.
**Financial Position**
**Shareholders Funds** £381.9 million.
**Net Asset Value per Share** 331.7p.
**Market Capitalisation** £345.3 million.
**Ongoing Charges Ratio** 0.99%.
**Outlook**
**Consumer Trends** Shifting towards discretionary consumption in China and India, driving growth in sectors like travel, real estate, and consumer durables.
**Supply Chain Changes** Asian manufacturers enhancing competitiveness through technology and product diversification, gaining global market share.
**Technological Intensity** Opportunities in new consumer platforms, consumer hardware, and enterprise technology solutions.
**Risks and Mitigation**
**Emerging Risks** Impact of technology and AI, sector consolidation.
**Principal Risks** Investment performance, financial and economic factors, share price discount/premium, operational risks, and regulatory compliance.
**Conclusion**
Despite a challenging year with underperformance relative to benchmarks, Scottish Oriental Smaller Companies Trust PLC remains focused on its long-term investment strategy, consolidating its portfolio, and actively managing its discount to NAV. The Trust is well-positioned to capitalize on evolving consumer trends and technological advancements in Asia, with a strong emphasis on disciplined capital allocation and shareholder engagement.
| Metric | 2025 | 2024 |
|---|---|---|
| Net Asset Value (NAV) Total Return | -1.6% | Not explicitly stated, but implied to be positive | tr>
| MSCI AC Asia ex Japan Small Cap Index Return | 8.2% | Not explicitly stated |
| MSCI AC Asia ex Japan Index Return | 16.6% | Not explicitly stated |
| Share Price Total Return | 3.5% | Not explicitly stated |
| Final Dividend per Share | 2.9p | 2.8p |
| Special Dividend per Share | 0.5p | 1.6p |
| Shares in Issue | 115,116,330 | Not explicitly stated |
| Shareholders' Funds | £381.9m | Not explicitly stated |
| Net Asset Value per Share | 331.7p | Not explicitly stated |
| Market Capitalisation | £345.3m | Not explicitly stated |
| Share Price | 300.0p | Not explicitly stated |
| Share Price Discount to NAV | 9.6% | 14.0% |
| Ongoing Charges Ratio | 0.99% | Not explicitly stated |
| Revenue per Share | 4.51p | 5.55p |
| Loan Notes | £29,851,000 | £29,841,000 |