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View the video online at http://citywire.co.uk/money/video/a438076
Fund of the Week: Scottish Oriental Smaller Companies
Asian smaller companies has shown the best returns since the slump of 2008. This fund is a a great way to play the sector.
Looking for investments? Take a look at Citywire Selection, the guide to our best investment ideas.
Asian smaller companies has been the single best performing investment region since markets hit their bottom in 2008. The relevant index (MSCI AC Asia ex Japan Small Cap) rose more than 150% since December 2008 until the end of August and shows no sign of slowing down.
Our pick for the sector is the Scottish Oriental Smaller Companies investment trust run by Susie Rippingall, which has done even better - it's almost trebled since then.
Health warning: this is a risky investment. And while it's had a smooth ride since the worst of the crisis, there's no guarantee this will carry on. So it's not a trust for retirees or those who may need to get at their money within the next five years.
However I'm investing part of my pension in this fund as a long-term buy and hold investment playing on the region's high growth rates. Take a look at the video where I explain why.
This fund is one of a handful of cherry-picked ways to access Asia Pacific in Citywire Selection, the guide to our best investment ideas.
4 comments so far. Why not have your say?
Catherine Mackenzie
Oct 09, 2010 at 09:44
Just how high a risk is this investment for someone retired and relying on a stagnant income
report thisNorthener
Oct 09, 2010 at 10:24
Having been high , is there any more scope to rise MORE???
report thisKeith Hilton
Oct 09, 2010 at 12:02
After such a meteoric rise, I'm hoping for a lower entry point before commiting funds.
report thisJohn Osborne
Oct 09, 2010 at 23:04
When buying these trusts in my opinion you have to look at quality of management as well as performance, and if possible buy them on a discount.
I agree with Citywire, this is one of the best far eastern trusts. I am retired and own it myself. I have held it about 7 years intend to keep it.
Of course volatile, but so are all shares and depends on which areas of the world you have faith in and diversification of your portfolio.
The IFAs recommend First State Asia Pacific Leaders, larger company OEIC from the same Company. Aberdeen funds also are recommended.
The question is, what is the present outlook for far east economies? They have had a good run, but with USA and EU threatening double dip recession, are their stockmarkets going to continue going up? I cant answer that question, but as a long term investment these trusts have done very well so far.
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