Fund Research

Baillie Gifford US Growth Trust

Last update 14 May 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

Baillie Gifford US Growth Trust seeks to invest predominantly in listed and unlisted US companies which the company believes have the potential to grow substantially faster than the average company, and to hold onto them for long periods of time, in order to produce long-term capital growth.

As at:

13/05/2019

Group/Investment

Baillie Gifford US Growth

Ticker

USA

Management Company

Baillie Gifford

Manager Name

Gary Robinson, Helen Xiong

Association of Investment Companies (AIC) Sector

North America

12 Mo Yield

-

Dividend Distribution Frequency

-

Latest Market Capitalisation

£293,120,000

Latest Net Gearing (Cum Fair)

1%

Latest Ongoing Charge Ex Perf Fee

0.85%

Turnover Ratio

-

Shares Outstanding

 229,000,000

(Discount)/ Premium (Cum Fair)

1.75

Baillie Gifford US Growth (USA) launched in March of 2018, aiming to produce long-term capital growth through investing in US equities. Gary Robinson and Helen Xiong are at the helm of the portfolio, searching for exceptional growth companies, where their innovations are likely to offer significant contributions to society. The managers undertake rigorous bottom-up analysis to uncover information others might be missing, in particular looking for companies that exhibit high barriers to entry, a large market opportunity and a culture that is aligned with their end goals.

In order to fully expose investors to the highest growth opportunities, the managers also have latitude to invest in unlisted companies. In their view, the most compelling growth companies are choosing to stay private for longer, which they believe gives the trust a unique edge over its peers. On sectoral basis, the trust is dominated by the consumer discretionary (26%), information technology (19.6%) and health care (17%) sectors.

Since the launch of the trust, performance has seen its fair share of ups and downs. The first six months of the trust’s life saw NAV returns of over 30%, close to 10% greater than the S&P 500 and the AIC peer group, and close to 15% ahead of the IA peer group. However, the final four months of 2018 saw the trust lost close to 19%, considerably more than peers (-12.9%) and the benchmark (-11.4%). Since then, the trust has once more rebounded and over 2019 the trust has delivered 20.8% NAV returns, to the 6 May. This volatility is likely to continue, and with a down capture ratio of 128 (sector average of 85) and standard deviation of 30.6 (relative to the sector average of 19.9) the trust might not be for the faint hearted.

Currently, the trust is trading on a premium of 2.7%. This premium has been reasonably consistent throughout the 14-month life of the trust, reaching highs of over 10%, and only dipping to a discount a handful of times for very short periods. The company has been issuing shares over recent months to help grow the trust and make sure the premium does not expand too far.


William Sobczak

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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Fund History: Baillie Gifford US Growth Trust

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