Page 35 - DIY Investor Magazine | Issue 29

THE CURRENT PORTFOLIO THE LARGEST OVERLAP PORTFOLIO
Social Inclusion & Education Holding Value %
Environment & Resource Needs Holding Value %
Healthcare & Quality of life Holding Value %
£’000
8.4 Modema 10,393 5.6
Holding
Base of the Pyramid
Value %
£’000
ASML 13,233 TSMC 11,921 Mercado Libre 8,837
Alphabet 5,506 Alibaba 4,547 Shoplfy 4,547 FDM 1,766 Coursera 648
£’000
7.2 Tesla 15,507 6.5 Umicore 6,477 4.8 NIBE Industrier 5,743
3.0 Deere 5,575 2.5 Xylem 4,936 2.5 Orsted 4,085 1.0 Novozymes 3,723 0.4 Beyond Meat 2,891
Ecolab 2,785
3.5 Illumina 3.1 M3
3.0 Dexcom
2.7 10x Gemomics 2.0 Teladoc
2.0 Abiomed
1.6 Chr. Hansen 1.5 Alnylam
Phaenaceuticals Sartorius Discovery Holdings Galukos
Peloton
Biologics
Berkeley Lights 802 0.4
73,613 39.8
Bank Rakyat Indonesia
£’000
3,974 2.2
8,189 4.5 8,080 4.4
6,680 3.6 5,975 3.2 5,235 2.8 4,644 2.5 4,535 2.5
4,071 2.2 3,795 2.1 3,565 1.9 3,547 1.9
3,000 1.6 AdCellera 1,102 0.6
Interactive
Positive Change Holdings Legacy Holdings Net Liquid Assets Total Assets
3,974 2.2
180,314 97.9 3,222 1.8 548 0.3 184,084 100.00
with other Baillie Gifford trusts is 20% with Scottish Mortgage; each holds Tesla, ASML, Alibaba, Alphabet, MercadoLibre, Shopify, Moderna, Alnylam, and Illumina, although Keystone’s more concentrated approach means it has larger stakes in these companies.
SOCIAL RATHER THAN ENVIRONMENTAL?
Healthcare and Quality of Life is the biggest of the four categories right now; overall the portfolio leans heavily towards positive social change rather than environmental change.
Recent additions include AbCellera, which performs antibody discovery services for pharmaceutical and biotech partners, and Peloton, a pioneer of connected fitness equipment for use at home to help drive better health outcomes.
REVIEWING THE FIRST FEW MONTHS
We all like our investments to get off to flying starts but that wasn’t the case here, although I suspect that will be largely forgotten a few years down the line.
‘Old’ Keystone was a UK trust with a big value slant; it also had quite a high percentage of less liquid holdings, so 40% of the portfolio was sold prior to the vote to change the manager, which achieved 96% approval.
The new portfolio only took a week or two to compile, but the sell-down of the less-liquid 40% meant Keystone missed some of the value rally in January and February and then switched into growth stocks pretty much when the NASDAQ market peaked in mid-February.
Had the vote been at the end of March, it would have been a completely different story, but I’m pretty relaxed about it, and pleased to see Fox and Qian haven’t overreacted to recent volatility either.
Of course, this wasn’t just a Keystone thing as it also affected many other Baillie Gifford trusts and funds.
Here is Keystone, the open-ended fund, and Scottish Mortgage for comparative purposes.
35 DIY Investor Magazine | Jun 2021