Global Smaller Companies (GSCT)

Global Smaller Companies (GSCT) provides investors with a one-stop shop for global small caps. Lead manager Nish Patel and his team invest in quality companies trading on attractive valuations, with a strong emphasis on capital preservation, aiming to provide a prudent approach to a higher-risk asset class.

Since assuming lead management responsibilities in May 2024, Nish has implemented a series of measures designed to enhance shareholder returns. Most notably, Portfolio concentration has increased, and the number of holdings has been reduced from 213 at the time of his appointment to around 130 today. Alongside this, the structure of the developed market allocation has been overhauled, transitioning from a fund-of-funds approach to a higher-conviction, single-portfolio model. Complementing these structural changes, Nish has sharpened the investment process through a greater emphasis on self-help potential within investee companies, a stricter sell discipline framework, and an increased awareness of price momentum as a factor in investment decision-making.

In addition, the trust has changed its benchmark from a composite index, in which the UK accounted for 20%, to the MSCI ACWI Small Cap. This reflects an effort to offer a portfolio that is more closely aligned with the current composition of the global small-cap market. As such, the weight of the UK is expected to be lower than historical levels going forward, whilst the weight of other regions should increase.

GSCT delivered a 55th consecutive year of annual Dividend growth in FY 2025, with the trust benefiting from strong revenue reserves to support further increases and currently offering a 12-month yield of c. 1.6%. Meanwhile, the Discount has narrowed from c. 10% to c. 6% over the past 12 months, with the trust having repurchased shares and pursued marketing and PR efforts to boost demand.