The Keystone Positive Change trust board is considering options for the trust’s future, including a rollover into the open-ended Baillie Gifford Positive Change fund, following a challenging period for performance.
The trust’s total return is down almost 40% over three years, according to FE FundInfo data.
In a stock exchange announcement, the Baillie Gifford trust’s board said it believes action to address the size of the trust, the low liquidity in its shares and its discount would be in the best interests of shareholders.
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The board will consult with shareholders on options for the trust, including a rollover into the £1.8bn Baillie Gifford Positive Change fund.
It added that any proposal would include a cash exit option. The trust would also need to take into account the illiquidity of its five private investments, which comprise 4.3% of the portfolio at the end of August.
While the open-ended Positive Change fund has also been hit by a tough period for performance over three years, down 28.7%, it is a top quartile performer in the IA Global sector over five years.
The two funds seek to generate long-term returns while contributing towards a more sustainable and inclusive world.
Keystone currently trades at a 7.4% discount to its net asset value, according to the Association of Investment Companies.
