Schiehallion Fund

[Dod101]

I think it is a bit early to start thinking of platforms etc. It will be up to the platform to decide but I assume the main ones will offer the C class shares but probably not all platforms will do so. Give it a bit of time to get under way and we may get a bit more information.

Dod

[EthicsGradient]

I was doing a bit of reading earlier about the Schiehallion Fund from Baillie Gifford. Apparently they may be issuing more shares (C-class) come April time. So far the shares have been institutional investor class only.

I'm not sure what "institutional investor class only" means, here. It's an investment trust, that is traded on the LSE, quoted in dollars ($1.45, so it's not like you need to invest tens of thousands to get one share). The IPO was offered to institutions, rather than than individuals. But there doesn't seem to be anything stopping a platform that will trade in dollars offering it; II does, and I expect many others do too.

[doug2500]

KID documents. What a waste of effort.

[SoBo65]

KID documents. What a waste of effort.

Does anyone ever bother looking at KID documents, not me for sure?...

[doug2500]

KID documents. What a waste of effort.

Does anyone ever bother looking at KID documents, not me for sure?...

Not me anyway, just tick the box.

There's absolutely nothing helpful in there IMO. And you can buy tesla, and probably bitcoin!!!!, with nothing!

[moneybagz]

Hi,

I've never invested in Private Equity before but I feel like an allocation of 5-10% might be sensible. I've been looking at two funds, the Schiehallion fund and Octopus Tritan. Most of my investments are in passives so I'm used to paying the bare minimum but I can't get a handle on whether the Schiehallion fund is overpriced. The Schiehallion fund is on a 16% premium despite holding mostly treasury bonds and I'm guessing I'll have to pay a further 5% on the spread with AJ Bell and a further charge for the dollar exchange rate. Any views appreciated.

Thanks

[Dod101]

Hi,

I've never invested in Private Equity before but I feel like an allocation of 5-10% might be sensible. I've been looking at two funds, the Schiehallion fund and Octopus Tritan. Most of my investments are in passives so I'm used to paying the bare minimum but I can't get a handle on whether the Schiehallion fund is overpriced. The Schiehallion fund is on a 16% premium despite holding mostly treasury bonds and I'm guessing I'll have to pay a further 5% on the spread with AJ Bell and a further charge for the dollar exchange rate. Any views appreciated.

Thanks

'Mostly treasury bonds? The latest report is the Interim Report at 31 July and at that time only about 35% was held in treasury bands pending investment. By 30 November the holding in US treasuries was down to 20%. If you have at least a five year time horizon it might be a good investment but who knows? As to its charges, I have no opinion except to say that I guess there is a lot of research that needs to go into this sort of investment and the numbers are modest at the moment or at least were at 30 November with a fund size of just over US$580 million.

Has there been announcement of opening it to retail investors? If not this is all academic anyway.

Dod

[moneybagz]

I should have checked out the interims rather than taking my figures from the annual. I believe it is available through AJ Bell but only over the telephone.

[Dod101]

I should have checked out the interims rather than taking my figures from the annual. I believe it is available through AJ Bell but only over the telephone.

Interesting. Could that be because A J Bell would be counted as an institution? I imagine that would work because often on platforms we get the lower charges from an institutional holding on for instance bond funds.

If you take a look at the Schiehallion website you can see that not only is the Interim Report to 30 July on the site but a portfolio valuation to 30 November which provides reasonably up to date information.

Dod

[marathonman365]

Is it possible to buy MNTN in an AJ Bell SIPP online or is it phone only?

[Dod101]

Is it possible to buy MNTN in an AJ Bell SIPP online or is it phone only?

And what please is MNTN. Sounds most unfamiliar to me. definitely not Schiehallion.

Dod

[swill453]

Is it possible to buy MNTN in an AJ Bell SIPP online or is it phone only?

And what please is MNTN. Sounds most unfamiliar to me. definitely not Schiehallion.

That seems to be the ticker for it. Presumably short for "mountain", of which Schiehallion is one of the more famous ones.

Scott.

[Dod101]

Is it possible to buy MNTN in an AJ Bell SIPP online or is it phone only?

And what please is MNTN. Sounds most unfamiliar to me. definitely not Schiehallion.

That seems to be the ticker for it. Presumably short for "mountain", of which Schiehallion is one of the more famous ones.

Scott.

Thank you. Makes sense!

Dod

[Noslien]

So what is the fundamental difference between this fund and other PE investments which you can trade to you hearts content? Seems a little odd to me.

As an experiment I tried to buy online in my AJ Bell account but I was directed to call them. Haven't done that yet.

Regards

Noslien

[Bagger46]

So what is the fundamental difference between this fund and other PE investments which you can trade to you hearts content? Seems a little odd to me.

As an experiment I tried to buy online in my AJ Bell account but I was directed to call them. Haven't done that yet.

Regards

Noslien

Agree, don't see the point of adding complication myself. There are plenty of good choices in that IT/PE space as it is, and they, from my point of view, have produced the goods with superb long term XIRRs. The PE space often reacts really badly when things look dire, and these are of course the times to fearlessly add a nice slug into them if cash is available.

In any case the results are unlikely to be that different from quite a few if their other 'nice' ITs, which contain plenty of PE investments as it is.

Bagger

[mc2fool]

So what is the fundamental difference between this fund and other PE investments which you can trade to you hearts content? Seems a little odd to me.

As an experiment I tried to buy online in my AJ Bell account but I was directed to call them. Haven't done that yet.

From I can see there is no difference. It's simply that the bureaucrats said we need a KIID. We need protecting from ourselves, you know!

It would be interesting to know what AJ Bell say. I have to confess I'm not familiar with the detail around the KIID legislation. I assume it's actual legislation? Or maybe just some FCA "guidelines". It may be couched in terms such as "the broker must be confident of the clients ability to decide" or some such. In which case it may actually be possible for a minion like ourselves to purchase. I doubt it tho, as complaints about KIID (or lack thereof) for other instruments arise on these forums too. If not then perhaps using an old-school broker would alleviate these problems.

So:

a) does ones broker let one to declare oneself a sophisticated investor? (as one has must to trade in investments like warrants, various ETPs, etc), and

b) if so, does that cover ITs without a KIID?

Of my current two, the answers to (a) are, yes with Interactive Investor and no with IWeb. I don't know the answer to (b) with II. (a) used to be yes with Selftrade too, but I don't know if that's still the case with its successor, as I left them before the takeover.

(To become a sophisticated investor one has to fill in an Appropriateness Assessment form, the "correct" answers to which are fairly self evident....!)

[mc2fool]

Thanks mc2fool. My situation is that I have declared myself as a sophisticated investor (means I’m even better at losing money than the average punter) but this hasn’t allowed me to issue a buy for MNTN. That might mean a phone call trade though I guess. Hoping to find out once I receive a reply from ‘em.

I am too, with II, and I guess I should have just tried it first ... well I just have and I get "We are unable to trade this security as there is no KID/KIID document available", so it looks like that's that, as far as II goes at least!

[EmptyGlass]

Tested a Buy order on AJ Bell, got a quote which I let expire. No KIID tickbox.
Schiehallion Fund OrdStep 1: Enter order details Step 2: Deal Step 3: Deal confirmation
Account

(Redacted)
Buy / Sell

Buy
Order type

At Best
Value

Quantity
1
Enter quantity

£1.36301

Quote Price

Expired

Order summary
(Redacted)
Security Schiehallion Fund Limited
Order type At Best
Buy / Sell Buy
Quantity 1
Consideration £1.36
Dealing charge £9.95
Total £11.31

[Dod101]

think think that the KIID legislation was one of those things introduced by the EU, like the appointment of an AIFM. I also suspect that A J Bell are using the fact that they are an institution and buying the shares via their nominee company gets around the KIID legislation or regulation whichever it is. II are taking the more 'purist' route and recognising (correctly) that although they are buying via their nominee company it is not for their benefit but for an individual investor or investors who can only buy a fund with a KIID and thus are disqualified from buying Schiehallion. I wonder who allocates or disqualifies a fund from a KIID though? Presumably one of our regulators charged with ensuring that the EU regulations are being followed.

The sooner the KIID is scrapped the better.

Dod

[marathonman365]

I too was able to get an online quote for 1 MNTN share with AJB but it wasn’t possible to get a quote for any reasonable number of them.