The Global Smaller Companies Trust

We invest across a wide range of global smaller companies, focusing on high‑quality businesses with attractive long‑term potential through a disciplined, research-driven process led by Nish Patel.

With many thousands of listed smaller companies worldwide, we look for companies with durable business models, proven management teams and attractive entry valuations, aiming to build a resilient and diversified portfolio that can deliver attractive returns over the long term.

The UK offers good opportunities. However, we want to widen our available options. A global approach allows us to identify the very best opportunities regardless of where those companies are listed.

By looking globally, we also reduce the portfolio’s reliance on one country’s economic cycle and policy environment. This approach does not remove risk, and smaller companies can be more volatile, but it is designed to improve diversification and widen our pool of potential long-term growers.

With our large investment team, we typically assess over 1,000 companies every year. We follow a consistent, bottom-up due diligence process. We first analyse business quality & management track record. This involves management meetings and an in-depth analysis of a company’s competitive strengths, pricing power, strategy, industry structure and financial attributes.

If our strict quality criteria are met, then valuation of the business will follow. Candidates that are high quality but not currently priced attractively typically go on to a regularly monitored watch list.

Sustainable competitive advantages such as scale advantages, a differentiated product or service or the position of being the industry’s lowest cost producer. Industry structure and barriers to entry are important factors in keeping financial returns high. We also look for diversification by customer and product, positive cashflow conversion and balance sheet strength.

Management is critical in smaller companies. We consider operational track record, history of capital allocation, incentives, and openness with shareholders.

We prefer teams that make thoughtful, long‑term decisions, that are clearly incentivised to deliver positive outcomes for all shareholders.

We assess competitive strengths and intensity, customer dynamics and barriers to entry to judge a company’s ability to raise prices and sustain margins. This is especially relevant in an inflationary environment.

We triangulate historic trading ranges, peer comparisons, growth expectations, cashflow and profit projections, and relevant transaction data.

High‑quality names that do not meet our valuation criteria are monitored on a watch list. We may revisit when the risk‑reward improves.

We aim for broad diversification across regions and industries, with exposure to more than 40 countries, whilst focusing on fundamentals rather than listing location alone.

Geographic allocations can evolve, but diversification helps manage periods when certain sectors or regions are either in or out of favour with the markets.

We consider macro developments, but portfolio changes are mostly driven by bottom‑up stock selection and valuation.

Diversification across regions and industries helps manage cycles when specific sectors are in or out of favour.

We have historically used specialist third‑party funds to access the best smaller company opportunities within the Emerging Markets. The funds are selected in collaboration with Columbia Threadneedle’s highly regarded multi manager team. In this way we can offer our clients a simple strategy that invests in the very best smaller company opportunities across the World.

A global smaller companies allocation can complement domestic UK exposure and offer investors diversification.

Investors can access niche businesses and growth opportunities that may not be widely available in the UK market. Investors typically use platforms, brokers, ISA’s or pension accounts to access listed investment trusts. (Information only; not investment advice).

Capital is at risk. Past performance is not a guide to future returns.

Most UK investors use investment platforms or stockbrokers and can hold shares in an ISA or SIPP.

You typically place a trade for the Trust’s shares through your chosen platform or broker the same way you buy or sell other listed shares. Many investors choose tax‑efficient accounts such as a Stocks & Shares ISA. Availability, fees, and dealing options vary by provider.

Capital at risk. Past performance is not a guide to future returns.

Cost and charges include individual platform/broker fees, dealing commissions and the Trust’s ongoing charges.

Your platform or broker may charge account fees (flat or percentage‑based) and dealing commissions per trade. The Trust itself has ongoing fund‑level costs disclosed in the KID and factsheet.

Check your chosen provider’s fee schedule and the latest Trust documents for current ongoing costs and charges figures.