The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU)
No. 596/2014 which forms part of domestic law in the United Kingdom
pursuant to The European Union Withdrawal Act 2018, as amended by
The Market Abuse (Amendment) (EU Exit) Regulations 2019.
9 September 2024
Keystone Positive Change Investment Trust plc ("Keystone" or
the "Company")
Legal
Entity Identifier: 5493002H3JXLXLIGC563
Company Update
In early 2021, Keystone shareholders
(the "Shareholders") approved the Company's adoption of Baillie
Gifford's "Positive Change" strategy, which seeks to generate
attractive long term capital returns and to contribute towards a
more sustainable and inclusive world.
Although the Board remains confident
in the long term prospects for the strategy, it recognises that
there has been a challenging period of performance during a
difficult backdrop for the investment trust sector.
Over the last 12 months, the Board has
taken several steps with a view to enhancing value for Shareholders
including commencing a share buyback programme, introducing a
continuation vote and increasing marketing activity.
The Board has nonetheless concluded
that the interests of Shareholders may be best served by
implementing a transaction in the near term to address the size of
the Company, the low liquidity in the Company's shares and the
discount at which they have been trading, while enabling
Shareholders to retain exposure to a global impact
strategy.
The Board therefore intends to consult
more widely with Shareholders and to explore the Company's options
which include a rollover into the Baillie Gifford Positive Change
Fund, an FCA authorised open-ended investment company with assets
of c.£1.8bn, substantially all of which is invested in the same
portfolio of listed equities as the Company.
Shareholders should note that any
Board proposal would need to take into account the illiquidity of
the Company's five private company
investments, which comprised c.4.3% of the portfolio as at 31
August 2024.
The Board intends that any proposal
would include a cash exit option at a modest discount to the
Company's net asset value, such value factoring in the private
company investments noted above.
The Board would welcome Shareholders'
feedback on the above update, via the email address provided
below.
A further announcement will be made in
due course.
For further information please
contact:
Karen Brade, Keystone Chair
Email: trustenquiries@bailliegifford.com
Nathan Brown / Matt Goss, Deutsche
Numis
Tel: 020 7260 1426/1642
Naomi Cherry / Alex Blake, Baillie
Gifford
Tel: 0131 275 2000
Jonathan Atkins, Director, Four
Communications
Tel: 0203 920 0555 or 07872
495396
