Investec recommends selling Baillie Gifford's Schiehallion

“Proposition is overshadowed”

Analysts at Investec are recommending investors sell Schiehallion, whose shares are sitting the highest premium of any trust within the Association of Investment Company universe.

The trust has performed strongly since IPO in March 2019, with its ordinary NAV returning 72.5% compared to the MSCI World's 59.9%, the Investec reports shows. However, the analysts warned "the proposition is overshadowed by a technical situation, whereby relatively small orders have taken the premium ratings of ordinary and C shares to unsustainable levels". The trust has two share classes, the main £858.9m share class is trading a 42.2% premium and the almost £700m C share class is trading on a 21.5% premium, according to the AIC website. Investec added that while trust has "enjo...