AJ Bell Investment Trust Select list update

The AJ Bell IT Select list is designed to lighten your research load. There are many trusts out there – so we’ve narrowed the field by selecting a shortlist of trusts we believe can deliver their objectives over the long term. To make the list, each trust needs to pass our robust, independent selection process.

What have we changed?

We keep our IT Select list under constant review to ensure we have the highest conviction in our selection, and to find new trusts with better potential to achieve their objectives.

As a result of this work, we’ve removed the Baillie Gifford US Growth Ord.

Why have we removed this trust?

The Baillie Gifford US Growth trust has invested in private companies since its launch in 2018, however, over the years, the proportion of the trust invested in these stocks has materially increased. Approximately a third of the trust is now held in private companies, which, whilst lower than its peak, is significantly  higher than the c.5% at the end of 2018. 

The trust is allowed to hold up to 50% in private companies, and an investment trust structure suits investment into such companies. However, the low levels of liquidity in these stocks can cause the complexion of a portfolio to become constrained. Additionally, valuations of these companies can be contested, as they don’t have the live market prices of publicly listed companies. Given these complexities, we’re no longer comfortable recommending the trust within our IT Select list.

Though unrelated to our decision to remove this trust, it’s also worth mentioning that the trust is subject to a Requisitioned General Meeting on 3 February 2025. At this meeting, activist investor Saba Capital Management will seek to oust the trust’s existing directors, before re-considering the ongoing investment strategy and manager – most likely re-propositioning to follow Saba’s own activist approach. You can find more information on the background to this meeting and how investors can vote here.

We hope you find this update useful. The AJ Bell IT Select List is designed to help you choose your investments, but isn’t a personal recommendation. If you own trusts not included on the list, it doesn’t mean we recommend that you sell them. If you’re not confident about making your own financial decisions, or are looking for advice, you should speak to a suitably qualified financial adviser. Remember that the value of investments can change, and you could lose money as well as make it.