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  • FIRST POST
    • Sally57
    • By Sally57 14th May 18, 4:45 PM
    • 118Posts
    • 30Thanks
    Sally57
    Baillie Gifford Shin Nippon (BGS)
    • #1
    • 14th May 18, 4:45 PM
    Baillie Gifford Shin Nippon (BGS) 14th May 18 at 4:45 PM
    I have just received a notification from iWeb that BGS will be issuing 5 new ordinary shares for each existing ordinary share that is held by close of business on the 18 May.

    The board is proposing this because they feel the current share price is too high and it is putting off new investors. Is this a good thing for the board to recommend?
Page 1
    • Economic
    • By Economic 14th May 18, 5:05 PM
    • 364 Posts
    • 375 Thanks
    Economic
    • #2
    • 14th May 18, 5:05 PM
    • #2
    • 14th May 18, 5:05 PM
    In theory, it will have no real effect!
    • Reaper
    • By Reaper 14th May 18, 5:09 PM
    • 6,338 Posts
    • 4,627 Thanks
    Reaper
    • #3
    • 14th May 18, 5:09 PM
    • #3
    • 14th May 18, 5:09 PM
    Yes share splits are because they fear a large share price looks too expensive and might put people off. If the share prices gets too low they might do the opposite to avoid looking like Penny Shares.

    I'd be surprised if it makes much difference.
    • ArchBair
    • By ArchBair 14th May 18, 5:25 PM
    • 111 Posts
    • 43 Thanks
    ArchBair
    • #4
    • 14th May 18, 5:25 PM
    • #4
    • 14th May 18, 5:25 PM
    I am tempted to sell my holding in BGS and switch to the OEIC fund Ballie Gifford Japanese Smaller Companies. I think the OEIC fund will less volatile in any downturn and I just can't see how BGS can sustain this level of growth.
    • redux
    • By redux 14th May 18, 5:29 PM
    • 18,647 Posts
    • 24,928 Thanks
    redux
    • #5
    • 14th May 18, 5:29 PM
    • #5
    • 14th May 18, 5:29 PM
    I think a share price premium to net asset value would be more likely to put people off, but I understand they may have been trying to counter this, or take advantage, by issuing new shares.

    As above, dividing like this shouldn't have any effect. Someone saving monthly in their savings scheme might buy an extra share and have a couple of quid less uninvested cash some months, but that really is pretty trivial.
    • adiohead
    • By adiohead 21st May 18, 12:49 PM
    • 24 Posts
    • 3 Thanks
    adiohead
    • #6
    • 21st May 18, 12:49 PM
    • #6
    • 21st May 18, 12:49 PM
    I'm a bit confused (and worried). I have shares in this and last week I was in profit and today I log in and it's showing a huge huge loss despite the fact there hasn't been much change.

    Is it possible my shares ISA haven't taken the split into account?
    • Morphoton
    • By Morphoton 21st May 18, 1:12 PM
    • 88 Posts
    • 75 Thanks
    Morphoton
    • #7
    • 21st May 18, 1:12 PM
    • #7
    • 21st May 18, 1:12 PM
    On Fri you would have had X Ord 10p shares in BGS at about 975p each.
    Today you will have 5*X Ord 2p shares in BGS at about 195p. So the value of your holding will be unchanged.
    You can check the description of your holding - 10p Ord (old shares) / 2p Ord (new shares) to see if your ISA has updated your holding. There is nothing to worry about.
    • adiohead
    • By adiohead 21st May 18, 6:34 PM
    • 24 Posts
    • 3 Thanks
    adiohead
    • #8
    • 21st May 18, 6:34 PM
    • #8
    • 21st May 18, 6:34 PM
    Yeah, it seems to have zeroed out now and all my shares are negative.

    Looks scary but I think they're just updating/correcting the price.

    I'm new to all this so nearly had a heart attack this morning.
    • Asghar
    • By Asghar 21st May 18, 6:40 PM
    • 212 Posts
    • 125 Thanks
    Asghar
    • #9
    • 21st May 18, 6:40 PM
    • #9
    • 21st May 18, 6:40 PM
    When I logged on this morning, my holding with Hargreaves Lansdown was showing the correct amount after the split.
    • adiohead
    • By adiohead 21st May 18, 10:55 PM
    • 24 Posts
    • 3 Thanks
    adiohead
    I'm using AJ Bell. I think they must be a bit slower in sorting out things.
    • bowlhead99
    • By bowlhead99 22nd May 18, 6:21 AM
    • 8,297 Posts
    • 15,179 Thanks
    bowlhead99
    I'm using AJ Bell. I think they must be a bit slower in sorting out things.
    Originally posted by adiohead
    I'm using them too, they're showing the right price and nominal value 0.02 per share as of now.
    • adiohead
    • By adiohead 22nd May 18, 1:40 PM
    • 24 Posts
    • 3 Thanks
    adiohead
    Phew, everything back to normal.
    • aroominyork
    • By aroominyork 22nd May 18, 11:42 PM
    • 693 Posts
    • 236 Thanks
    aroominyork
    BGS is not currently tradable on Hargeaves Lansdown as there is no KIID for the new 2p shares.
    • Morphoton
    • By Morphoton 23rd May 18, 5:53 AM
    • 88 Posts
    • 75 Thanks
    Morphoton
    BGS is not currently tradable on Hargeaves Lansdown as there is no KIID for the new 2p shares.
    The KIID for the 2p Ords is available on the BG website here:
    https://www.bailliegifford.com/en/uk/individual-investors/literature-library/funds/investment-trusts/shin-nippon/shin-nippon-key-information-document/
    (Note: Downloads automatically).
    This specifically states the new ISIN GB00BFXYH242
    Looks like HL are slow in updating their systems.
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