Fund house Baillie Gifford has “begun the process” of moving its £1bn Schiehallion fund to the London Stock Exchange and turning it into an investment trust.
Schiehallion was launched in 2019 as a fund primarily aimed at institutional clients with a large minimum investment size.
It is listed on the Channel Islands stock exchange and the specialist segment of the London market, which means it is not conventionally an investment trust and hasn’t been marketed to advisers or retail clients.
A move to the main market would likely mean great liquidity for the shares of the trust, which would be quoted in sterling.
The largest holdings are quoted and unquoted businesses in the technology arena, with the largest investment being in SpaceX, which is run by Elon Musk.
Payment technology company Wise is another of the top 10 holdings.
In performance terms, the fund has lost 25 per cent over the past five years, leaving it trailing the AIC Growth Capital peer group, which has lost 18 per cent.
The proposed changes would be subject to shareholder vote.
One analyst within the investment trust sector said most of the original investors in the trust had retained their shareholding, meaning there has been little liquidity available for anyone wanting to invest.
The stock market announcement said the board has begun to consult with shareholders about moving the trust to the main market of the stock exchange, and that the move would happen in early 2026 if shareholders approve.
A change in tax residency, entry into the UK’s investment trust regime and a transfer of listing would each be subject to regulatory, tax or shareholder approval.
This includes eligibility for admission of the shares to the closed-ended investment funds category of the official list and approval for trading of the shares on the main market being granted by the Financial Conduct Authority and the LSE, respectively.
Baillie Gifford declined to comment further
