Fund house Baillie Gifford has “begun the process” to allow it to move its £1bn Schiehallion fund to the London stock exchange and become 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 Space Exploration Technologies, more commonly known as SpaceX, which is run by Elon Musk.
Wise Plc is another of the top ten holdings, this is a company listed on the London stock exchange.
In performance terms, the fund has lost 25 per cent over the past five years, leaving it trailing the IT Growth Capital peer group, which has lost 18 per cent.
The proposed changes are presently subject to shareholder consultation, and would be subject to shareholder vote.
One analyst within the investment trust sector said a feature of Schiehallion has been that most of the original investors have retained their shareholding, meaning there has been little liquidity available for anyone wanting to invest in the trust.
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 to the main market, the move would happen in early 2026 if the “shareholders approve the move.”
Change in tax residency, entry into the UK’s investment trust regime and a transfer of listing would each be subject to any requisite regulatory, tax or shareholder approvals being obtained.
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.
The board expects to make further announcements of developments in due course.
Baillie Gifford declined to comment further