Two top Asia-focused investment trusts

Pacific Assets and Scottish Oriental are both trusts that focus on high-quality companies controlled by trustworthy families or founders

Cityscape Hong Kong
(Image credit: Getty Images)

Until FSSA split from Stewart Investors nearly ten years ago, Pacific Assets Trust (LSE: PAC) and Scottish Oriental Smaller Companies Trust (LSE: SST) were managed under the same roof, with the former investing in larger companies in Asia, excluding Japan, and the latter in smaller companies. A decade later, it’s as if they never parted company.

The performance of SST, with £500 million of net assets, is ahead of Pacific Assets, with £410 million – 65% versus 52% over five years, 41% versus 15% over three and 15% versus 10% over one. That’s thanks to the outperformance of smaller companies in Asia, which has been unusual in a global context. Relative to their own benchmark indices, SST is well ahead over one and three years and slightly ahead over five, while Pacific Assets is well ahead over five and three years but 10% behind over one. Both trade on a mid-teens discount to net asset value (NAV).

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.