From Keystone to Baillie Gifford: A Positive Change?

[shawsdale]

Another new investment trust mandate for Baillie Gifford, and a radical change of direction proposed for the Keystone Investment Trust:

https://www.londonstockexchange.com/news-article/KIT/statement-re-proposed-change-of-inv-objective-and-policy/14782112

I hold neither Keystone nor Baillie Gifford Positive Change but it will be interesting to see how this develops.

[Dod101]

Hmm. I hope BG do not overstretch themselves. This is a very small trust with not much in it for anyone. Still, Invesco must be smarting. Surely better to wind up this sort of trust.

Dod

[ukfire]

Currently still at a discount despite today's rise. Tempting...

That said, a lot of BG's performance is due to the Tesla trade.

[digitaria]

Yes, tempting, when you see what happened with Witan Pacific after the announcement that it would be run by BG. I think the NAV premium at one point reached around 40%. It now languishes at a mere 20%. If KIT might do anything similar, it might be worth a punt even after a 10% uplift. As ukfire says, It remains at a discount to NAV.

[Dod101]

In their announcement this morning, the Board of Keystone said

'Baillie Gifford believes that impact investing through listed equities is important in providing scalability and accessibility, and the value of patient ownership cannot be understated.'

If BG really believes that, I wonder why Keystone is appointing them? However, patient ownership is a cornerstone (might even be said to be a keystone) of their philosophy so I suspect that someone has used the wrong expression. Surprising how often that happens.

Invesco must be feeling a bit sick at the moment, because I doubt that it is all their fault. The UK value market has been a hopeless place to be and it is I suppose to some extent just bad luck that they were managing Edinburgh, Perpetual Income and Keystone.

Dod

[digitaria]

Keystone has published an update on plans for the trust here.

[jonesa1]

The AGM approved the change this afternoon (and a 2.4 p dividend to be paid on 12 March was announced).