Fund Research

Baillie Gifford UK Growth

Last update 11 March 2019

Baillie Gifford is a client of Kepler Trust Intelligence. Material produced by Kepler Trust Intelligence should be considered as factual information only and not an indication as to the desirability or appropriateness of investing in the security discussed.

Please see the important information by following this link or at the bottom of the page.

Investment objective

The Trust aims to achieve capital growth predominantly from investment in UK listed equities, with the aim of providing a total return in excess of the FTSE All-Share Index.

As at:

06/03/2019

Group/Investment

Baillie Gifford UK Growth

Ticker

BGUK

Management Company

Baillie Gifford

Manager Name

Iain McCombie;Milena Mileva;

Association of Investment Companies (AIC) Sector

UK All Companies

12 Mo Yield

2.4%

Dividend Distribution Frequency

Semi-Annually

Latest Market Capitalisation

£271,313,172

Latest Net Gearing (Cum Fair)

-1%

Latest Ongoing Charge Ex Perf Fee 

0.64%

Shares Outstanding

 150,520,484

(Discount)/ Premium (Cum Fair)

-5.3%

Daily Closing Price

175.75p

Baillie Gifford UK Growth is a quality growth portfolio with a highly active, long-term approach. The trust was taken over from Schroders in June 2018 and completely overhauled, with 42 new holdings purchased and all but a few small inherited positions sold.

Managed by Iain McCombie and Milena Mileva, the aim is to identify companies with the best long-term growth prospects without reference to the index, and to hold for a minimum of five years. The portfolio is well represented in the technology, financials and consumer-facing sectors, and light on banks, oil and gas and defensives such as healthcare and tobacco.

The intention is to run structural gearing of 10% in the long run, and the managers will build this up as the opportunities arise.

NAV performance has been behind the index in the short period since the handover as growth companies have retrenched relative to cheaper stocks. However, following the award of the mandate to Baillie Gifford, the discount has come in considerably from an average double digit discount in the previous three years, to the current level of 5.3%, which compares to an AIC UK All Companies sector average of 8.5%.

With the new managers focusing on growth first and foremost, the dividend has been cut. The board has guided that there will be a stepped cut to the dividend, and the interim was half last year’s. The historic yield is 2.5%.

Thomas McMahon

Important Information

Baillie Gifford is a client of Kepler Trust Intelligence. Material produced by Kepler Trust Intelligence should be considered as factual information only and not an indication as to the desirability or appropriateness of investing in the security discussed.

Please see the important information by following this link or at the bottom of the page.

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