Investors in the Baillie Gifford UK Growth trust through an Isa provided by Schroders will have their shares sold unless they act before Thursday 6 December.
The £306m Baillie Gifford UK Growth trust had, until April 2018, been managed by Schroders and was known as the Schroders UK Growth trust.
Earlier this year the board agreed to hand the management of the trust to Baillie Gifford following poor performance over the past three years, with the trust returning 14 per cent compared with 25 per cent for the AIC UK All Companies sector in the same time period.
This previous connection with Schroders meant around 23 per cent of the shares of the trust were owned by investors using a Schroders Isa plan.
Investors who do not switch this investment to another Isa provider will have their shareholding in the Baillie Gifford UK Growth trust sold and the capital invested into the Schroders UK Equity fund, an open-ended fund rather than an investment trust.
Those who do not wish to transfer to another Isa provider will have to option of switching to another Schroders fund or selling the shares and taking their cash.
The Schroders UK Growth investment trust had previously been managed by Richard Buxton and when he left for Old Mutual Global Investors it was managed by Julie Dean, and then Philip Matthews when she left for Sanditon.
Baillie Gifford won the mandate to run the trust in April 2018 and said the assets would be run using the growth style of investing which is typically favoured by Baillie Gifford, rather than the value style which had been the hallmark of Schroders's time at the helm of the trust.
david.thorpe@ft.com
