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ScotGems Plc - Investment Management Arrangements

ScotGems plc

LEI Number:                549300GQHCPU9P1NYM13

22 October 2019

Investment Management Arrangements

The Board of ScotGems plc (the “Trust”) are pleased to announce the continuation of Stewart Investors as Trust Managers. Tom Prew will assume the role of lead portfolio manager, and Chris Grey that of deputy.

Tom Prew joined the team as a graduate in 2006 and has lead manager responsibility for a number of global emerging markets strategies. Tom sits on the Stewart Investors Board.  He has a degree in Jurisprudence from Oxford University.

Chris Grey joined the team in 2015.  He 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.

Further to discussion with Stewart Investors, the Board are proposing to recommend two changes to the original investment mandate, which they intend to submit for shareholder approval.

The first amendment will permit Stewart Investors to run a less concentrated portfolio — with a range of 30 to 50 holdings versus the 20 to 30 holdings envisaged in the Trust’s launch prospectus. The suggested range of holdings continues to demand a high level of conviction investment, which is a characteristic deemed especially desirable by the Board.

The second amendment relates to the Trust’s geographical focus. At launch the Trust was designed to invest globally in smaller companies without geographical restriction. Since then the Managers have invested almost entirely in small capitalisation companies listed in emerging markets, and this will be the intention of Tom Prew and Chris Grey in the future as well. Although this geographical bias is compliant with the original mandate, the Board wishes to amend the latter so that shareholders are aware that the Trust is primarily a global emerging markets small cap rather than a global small cap trust.

In all other respects, the focus of the Trust on investing in small companies with strong stewardship credentials, sound financial profiles and above average growth prospects will remain unchanged. Your Board remain optimistic that such an investment approach will produce superior long term returns.

The Board would like to take this opportunity to thank Ashish Swarup and Tom Allen, the previous lead and deputy portfolio managers, for their services to the Trust.


Harry Gladstone

Stewart Investors, Investment Manager    0131 473 2900

PATAC Limited (Secretary)                         0131 538 1400