Baillie Gifford is Bonkers

aroominyork

Alexland wrote: »

The trust's board is independent and they lost confidence in Schroders and have given the job to BG who will be pleased to take the management fee ongoing. As a result the trust is being renamed.

Yes,I know that. But despite now being called BGUK it is still Schroeder's owned which means, eg, if you search for a list of BG's investment trusts on HL it doesn't come up. Wouldn't it make sense for BG to aspire to bring its ownership in-house?

Alexland

aroominyork wrote: »

Yes,I know that. But despite now being called BGUK it is still Schroeder's owned which means, eg, if you search for a list of BG's investment trusts on HL it doesn't come up. Wouldn't it make sense for BG to aspire to bring its ownership in-house?

It's owned by the shareholders - the HL search is probably a delay in updating records. HL don't seem to be very 'on the ball' these days with unit prices, replying to messages or updating fund records.

Alex

aroominyork

Alexland wrote: »

It's owned by the shareholders - the HL search is probably a delay in updating records. HL don't seem to be very 'on the ball' these days with unit prices, replying to messages or updating fund records.

So all ITs are plc’s, ie the reason SMT is in the FTSE100?

Alexland

aroominyork wrote: »

So all ITs are plc’s, ie the reason SMT is in the FTSE100?

Yes they are essentially companies which own bits of other companies. The manager is appointed by the independent board (who act on behalf of the shareholders) to operate the portfolio. However there is always the suspicion that the board members may be too close to the manager. That's why it's refreshing to see the manager being changed.

Alex

aroominyork

Well, Baillie Gifford’s day in the sun is over, but it looks like mine is about to begin. Monday is when I make my six monthly Bonkers switch for the £100 I have in a GIA at HL to keep an account open (except it’s now down to £87) and since the top three funds over the last six months on Trustnet are all Brazilian it looks like I am packing my bathers and heading to the beach. Wish me luck - I think I will need it.

kidmugsy

aroominyork wrote: »

Presumably BG will want to take ownership of the trust.

Why? They've been hired as investment managers. Would the partnership have the capital to buy the trust? Seems unlikely.

Or do you mean "take ownership" in some arcane sense that doesn't imply "take ownership"?

aroominyork

kidmugsy wrote: »

Why? They've been hired as investment managers. Would the partnership have the capital to buy the trust? Seems unlikely.

Or do you mean "take ownership" in some arcane sense that doesn't imply "take ownership"?

This discussion goes back to July when Alexland explained the situation; I had not understood the structure or governance of ITs.

DennisTenus

aroominyork wrote: »

Well, Baillie Gifford’s day in the sun is over, but it looks like mine is about to begin. Monday is when I make my six monthly Bonkers switch for the £100 I have in a GIA at HL to keep an account open (except it’s now down to £87) and since the top three funds over the last six months on Trustnet are all Brazilian it looks like I am packing my bathers and heading to the beach. Wish me luck - I think I will need it.

Sorry I must be missing something... what's happening??

talexuser

He's selling to buy the best performing fund of the last 6 months, which just happens to be Brazil. Since it sounds mad that's why its called Bonkers strategy, but it has a statistical success record - albeit with much risk.