Keystone Positive Change Investment Trust plc (KPC)

This trust invests in UK equities, taking an active approach to identified undervalued investments. This trust may use gearing.

Keystone are dropping Invesco for Baillie Gifford as the new managers of the trust

Extract:

The board is today proposing that the trust’s investment objective be changed to incorporate two goals: to generate an attractive investment return of at least 2 per cent per year above the MSCI World index over rolling five-year periods, and to contribute to a more “sustainable and inclusive world”.

Keystone’s investment policy will also be changed to focus on an active, long-term, global equity strategy, using around 30 to 60 quoted and unquoted stocks.

Karen Brade, chairwoman of Keystone investment trust, said: “We are pleased to propose Baillie Gifford’s successful positive change strategy, tailored to take advantage of the company’s investment trust structure.

Lee Qian is in this one who will be managing this trust once the change over has been completed.

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I’m keeping my eye on it.
Their positive change fund is not diversified enough for my portfolio so I’d want them to add a few more names/unlisted equities before I consider it.

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I know that with BG taking control they’re changing the objective and approach slightly. I need to dig into it more I don’t think we’ll see what they buy or sell until the new changes are agreed

@sampoullain @Freetrade_Admin this stock has now completed its transition it’s no longer under Invesco its ticker has also changed and is currently broken on freetrade. It’s no longer tradable on freetrade and no data is shown

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Do they stop trading when such changes in manger take place? What happened when BG took over Witan Pacific? (Freetrade still haven’t updated the icon)

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No they’re still trading, you can see them on HL under the ticket KPC, I think it’s broken on Freetrades side as they never updated the data and correct stock information when the company info changed. I’m guessing they haven’t automated this process yet.

I was going to post the documents later today as they had an agm yesterday where they passed all the relevant votes on the changes.

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The company name is now changed to Keystone Positive Change Investment Trust plc (KPC)

Looking forward to seeing what’s in the portfolio in the unlisted section
I imagine we won’t know until the quarter is finished

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Info Dump

Here is the results of the AGM yesterday Result of AGM - 13:16:00 10 Feb 2021 - KIT News article | London Stock Exchange

The results of the general meeting Result of General Meeting - 13:26:00 10 Feb 2021 - KIT News article | London Stock Exchange

Key points

  • Appointment of Baillie Gifford & Co Limited (“Baillie Gifford”) as new investment manager;
  • Adoption of Baillie Gifford’s Positive Change investment strategy, a global equity strategy which seeks to provide attractive investment returns while contributing towards a more sustainable and inclusive world; and
  • Change of the Company’s name to Keystone Positive Change Investment Trust plc.

Upon Baillie Gifford’s appointment becoming effective, which is expected to be on 11 February 2021, applications will be made to change the Company’s name and TIDM to “Keystone Positive Change Investment Trust plc” and "KPC”, respectively, and also to change the registered office address, in each case so as to take effect as soon as reasonably practicable. It is likely, however, that the registration of the change of the Company’s legal name may take a number of weeks to process due to current delays in processing times at Companies House.

The BG Trust page https://www.bailliegifford.com/en/uk/individual-investors/funds/keystone-positive-change-investment-trust/

The circular for the 2021 general meeting Keystone Positive Change Investment Trust - Circular for General Meeting - 10 February 2021

This includes information about their investment strategy

Some extracts:

Proposed Investment Objective
To:

  • generate long term capital growth with the aim of the NAV total return exceeding that of the MSCI AC World Index in Sterling terms by at least 2 per cent. per annum over rolling five-year periods; and
  • contribute towards a more sustainable and inclusive world by investing in the equities of companies whose products or services make a positive social or environmental impact.

Extract:

Proposed Investment Policy

The Company invests predominantly in shares of companies of any size, any country and in any sector, whose products or behaviour make a positive impact on society and/or the environment in the investment managers’ opinion. The Company will invest in companies addressing critical challenges in areas such as, but not limited to: social inclusion and education, healthcare and quality of life, environment and resource needs, and base of the pyramid. The shares in which the Company invests may be listed, quoted, or traded on any market, or shares in private companies.

The maximum direct investment in any one holding or fund is limited to 10 per cent. of the gross asset value of the Company, measured at the time of investment.

The portfolio will comprise between 30 and 60 public and private company securities. The maximum amount which may be invested in private company securities shall not exceed 30 per cent. of the gross asset value of the Company, measured at the time of investment.

The Company will at all times be invested in several sectors. While there are no specific limits placed on exposure to any one sector, the Company will at all times invest and manage the portfolio in a manner consistent with spreading investment risk
[…]

@sampoullain @simonpoole still broken FYI hoping you guys can fix it for next week?

Thank you whoever updated this :slightly_smiling_face:

@J4ipod94 this is now fixed. Name isn’t updated but ticker is and is tradable

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Discovered this ETF yesterday and loaded a buy last night which went through successfully this morning and have invested more today. :grinning:

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Just worth the clarification that this is an investment trust rather than an ETF.

It’s looks interesting, it might make up some of my portfolio as well

Thank you for the clarification as I confused this:

An ETF divides ownership of itself into shares that are held by shareholders. The details of the structure (such as a corporation or trust) will vary by country…

To mean this was therefore an ETF

But on checking I found;

Closed-end funds are not considered to be ETFs, even though they are funds and are traded on an exchange.

So I learned something new today :slightly_smiling_face:

I invested in BGCG which has risen after management was moved to BG so expecting this one to do the same. Hopefully :pray:

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There not quite the same when compared to ETFs. investment companies are companies in their own right unlike ETFs that arent a company at all, they’re just funds that are traded on the exchange.

There’s a bunch of other rules i dont know enough about. bust investment trusts (like BCCG) are closed ended, work like a company, when you invest in them you buy shares in the investment company and they in turn manage, buy and sell assets. The share value is linked to the value of the assets but it can fluctuate higher or lower than the value of the assets the company hold (check out what NAV means). This means you can find yourself buying at a premium (more expensive than the value of the assets) or as a discount (cheaper than the value of the assets).

trusts also have the benefit of being able to more easily invest in non standard investments like private companies, because its closed ended they aren’t forced to buy or sell assets based on the volume of people investing. where as open ended funds buy more of an asset when more money is put in, and subsequently sell more of an asset when money leaves the fund, which can be more difficult with illiquid assets.

not all trusts invest in private companies but a lot have some portion in them. KPCs new strategy allows for holding private companies for example, in the extract in the other post above they may hold up to 30% of the portfolio in private companies. That has its own risks, but also potential upsides as well.

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https://www.bailliegifford.com/en/uk/individual-investors/private-investor-forum/investor-webinars/keystone-positive-change-investor-webinar/

We are delighted to invite you to register for the Keystone Positive Change Investment Trust Investor Webinar with managers Kate Fox and Lee Qian.

Join Kate and Lee as they delve into the management of the trust, and discuss some of the investments which we believe will generate attractive returns and contribute to a more sustainable and inclusive world.

[…]
The webinar will take place on Monday 8th March at 3.00pm.

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