TIDMUSA
RNS Number : 4612N
Baillie Gifford US Growth Trust PLC
23 January 2023
RNS Announcement
Baillie Gifford US Growth Trust plc (USA)
Legal Entity Identifier: 213800UMIOUWXZPKE539
Regulated Information Classification: Half Yearly Financial
Report
Results for six months to 30 November 2022
During the six months to 30 November 2022, the Company's share
price and NAV (after deducting borrowings at fair value) returned
-4.6% and -2.1% respectively. This compares with a total return of
5.4% for the S&P 500 Index* (in sterling terms).
- During the period from 23 March 2018, launch date and first
trade date, to 30 November 2022, the Company's share price and NAV
(after deducting borrowings at fair value) returned 59.4% and 91.5%
respectively. This compares with a total return of 103.4% for the
S&P 500 Index* (in sterling terms). We have a long-term
approach and would ask shareholders to judge performance over
periods of five years or more.
- At the end of November, we held positions in 24 private
companies which comprised 35.6% of total assets.
- We made two new purchases over the last six months, Roblox and
Sweetgreen. In addit ion, we made two complete sales during the
period: Teladoc and Peloton.
* Source: Refinitiv and relevant underlying index providers. See
disclaimer at the end of this announcement.
Past performance is not a guide to future performance.
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. The Company has total assets
of GBP613.5 million (before deduction of loans of GBP42.0 million)
as at 30 November 2022.
Baillie Gifford US Growth Trust is managed by Baillie Gifford
& Co, the Edinburgh based fund management group with
approximately GBP232.5 billion under management and advice in
active equity and bond portfolios for clients in the UK and
throughout the world (as at 20 January 2023).
Baillie Gifford & Co Limited
23 January 2023
The following is the unaudited Interim Financial Report for the
six months to 30 November 2021 which was approved by the Board on
20 January 2023 .
Responsibility Statement
We confirm to the best of our knowledge that:
a) the condensed set of Financial Statements has been prepared
in accordance with FRS 104 'Interim Financial Reporting';
b) the Interim Management Report includes a fair review of the
information required by Disclosure Guidance and Transparency Rule
4.2.7R (being an indication of important events that have occurred
during the first six months of the financial year, their impact on
the condensed set of Financial Statements and a description of the
principal risks and uncertainties for the remaining six months of
the financial year); and
c) the Interim Financial Report includes a fair review of the
information required by Disclosure Guidance and Transparency Rule
4.2.8R (disclosure of related party transactions and changes
therein).
On behalf of the Board
Tom Burnet
Chairman
20 January 2023
Interim Management Report
During the period from 23 March 2018, launch date and first
trade date, to 30 November 2022, the Company's share price and NAV
(after deducting borrowings at fair value) returned 59.4% and 91.5%
respectively. This compares with a total return of 103.4% for the
S&P 500 Index* (in sterling terms). During the six months to 30
November 2022, the Company's share price and NAV (after deducting
borrowings at fair value) returned -4.6% and -2.1% respectively.
This compares with a total return of 5.4% for the S&P 500
Index* (in sterling terms). We have a long-term approach and would
ask shareholders to judge performance over periods of five years or
more.
Portfolio
Market conditions remain challenging. The Federal Reserve's
attempts to bring down inflation through aggressive interest rate
rises has led to a re-pricing of growth stocks. And whilst there
are now some signs of inflationary pressures abating, the Federal
Reserve has maintained a hawkish stance, leading to fears that they
will go too far with rate rises and tip the economy into
recession.
We do not believe we can add value by making macro predictions
or second guessing the Federal Reserve. Our approach remains
resolutely bottom up. Our aim is to identify the exceptional growth
companies in America and hold on to them for long periods of time.
In doing so, we hope to capture the upside inherent in their
business models. We believe this is the right approach for
long-term investors because, whilst share prices and fundamentals
can become detached in the short-term, over the long-term they are
strongly correlated.
Of course, for companies to reach their long-term potential they
must have the resilience and adaptability to navigate the
inevitable macroeconomic, internal and competitive challenges that
they will face along the way. We believe our portfolio companies
are in aggregate well placed to manage through a more challenging
environment given the strength of their competitive positions and
corporate cultures. Indeed, we place a lot of emphasis on culture
in our research and, in our experience, companies with distinctive
cultures tend to be more durable and adaptable than average.
The reporting period has been one of a contrast between weak
share prices and strong fundamental progress in many of our
holdings. As we have said in the past, we believe the world is
going through a period of almost unprecedented change, driven by
the convergence of a multitude of technologies such as the
internet, mobile devices and machine learning. The associated
disruption was initially concentrated in a couple of big and
important sectors, like retail and advertising, but it seems to be
speeding up and spreading out. Over the last six months, whilst the
market has been preoccupied by macroeconomic and geopolitical risks
and uncertainties, our portfolio holdings have continued to
innovate and drive progress across a wide range of sectors of the
economy.
Take healthcare as an example. We have owned Moderna in this
portfolio since the Company's IPO in December 2018, well before the
start of the pandemic. We were enthusiastic because we thought
Moderna's mRNA technology had the potential to be a true platform
and tackle a broad range of diseases. The development of a vaccine
during the coronavirus pandemic served as proof of concept for the
technology. It also accelerated Moderna's route to market and
helped build the company's financial strength. However, as
encouraging as it was for the platform hypothesis, the Covid-19
vaccine was just a single indication.
In recent months we have had further evidence to support the
hypothesis that mRNA has broad therapeutic potential. For example,
at its R&D day back in September, Moderna published encouraging
early-stage data in two rare diseases. And then in December, it
released phase 2 data from its personalised cancer vaccine trial,
which is being run in collaboration with Merck. The trial showed
that the combination of Moderna's mRNA drug and Merck's drug
Keytruda reduced the risk of cancer recurrence or death by 44%
compared with Keytruda alone in melanoma patients. This is a truly
remarkable result and speaks to both the power and flexibility of
Moderna's mRNA technology. The company expects to move this drug
into phase 3 trials in 2023 and it will also expand its efforts to
study additional tumour types beyond melanoma. It is difficult to
overstate the significance of this development for Moderna and for
patients. This new data indicates that we are moving from a world
of spaghetti at the wall drug development with low probabilities of
success to one of true repeatable technology platforms where
learnings are carried across from one drug to the next and success
begets success.
There have also been interesting developments at one of our
holdings in the education sector. Duolingo, the maker of the
world's most downloaded language learning app, uses data and
machine learning to deliver effective, engaging and personalised
language lessons. The app benefits from a powerful data flywheel.
The more users who use the app, the more data the company collects,
the better the lessons become. Despite this, until recently,
founder Luis von Ahn thought we were still over a decade away from
the point where the app would be more effective than having a human
tutor.
However, recent breakthroughs in generative AI, the field of AI
associated with text and image generation, have caused him to
reassess this and he now thinks Duolingo may be able to match human
tutors within five years. Historically, personalised tuition was
reserved only for those of the greatest means. However, Duolingo is
now well on the path to changing this and democratising access to
tailored education.
Just as Duolingo has been democratising access to education, the
Company's largest holding SpaceX has been helping a larger
percentage of the world's population gain access to fast internet
via Starlink. Starlink is an internet service powered by a
constellation of low-earth orbit satellites. SpaceX's reusable
rockets have made such a service economical for the first time. It
is easy to take fast internet for granted if you live in an urban
area but more than 90% of the earth's surface remains uncovered by
wireless networks. Starlink promises to deliver fast internet just
about anywhere on earth. Furthermore, as the service is space-based
rather than land-based, it is less susceptible to interference, as
demonstrated during the war in Ukraine. Starlink is scaling
rapidly, and in December SpaceX announced that it had acquired its
one millionth subscriber.
These three developments represent just a small snapshot of the
progress that is being made across the portfolio. During
challenging times like these it is easy to become distracted by
share price volatility and short-term macro uncertainty, but it is
innovations like those mentioned above which matter most for
long-term investors.
We made few changes to the portfolio during the reporting
period. Turnover has been low even by historic standards. This
partly reflects our conviction in existing holdings. Most of the
stocks in the portfolio are executing well and we remain confident
in their long-term potential.
We made two new purchases during the period. We took a holding
in gaming platform Roblox. We have been researching the company
since before its IPO and used recent share price weakness as an
opportunity to initiate a holding. We also bought a small position
in salad restaurant chain Sweetgreen. Again, this is a stock we
have been following for some time. The company is early in its
rollout and has the potential to increase its locations manyfold.
We hold the founders in high regard and believe the company has
built a defensible moat through the combination of its supply chain
expertise and its use of technology in ordering. We also made two
complete sales during the period: telemedicine company Teladoc and
connected fitness company Peloton.
Outlook
We are in a period of heightened geopolitical and economic
uncertainty and the short-term outlook is unclear. We do not
believe there is value in us making macro predictions. This is not
where our core skill set lies. We do not know what inflation or GDP
growth will be next year. And even if we did, we're not convinced
it would help us make better long-term decisions. What we remain
focused on is trying to identify and own the exceptional growth
companies in America. Exceptional growth companies address large
market opportunities, and it is their ability to capture these
opportunities, rather than economic cycles, which will be the
primary determinant of long-term outcomes.
The last few years have been tough, but we remain optimistic
about the future. We are facing short-term headwinds, but we
believe we will come through these as we always have done. The
structural forces of change - from Moore's Law in semiconductors,
to Wright's Law in clean energy and Flatley's Law in healthcare -
continue unabated. We are on a path towards abundance. The path may
not be smooth, but we are convinced that the future holds promise
and that the innovative companies that have the potential to drive
us there will be the outliers that drive stock markets for the next
decade. We understand that weak performance is challenging for
shareholders to endure but we can assure you that we remain
confident in, and committed to, our approach. We are hugely
appreciative of your ongoing support and patience.
The principal risks and uncertainties facing the Company are set
out on the inside cover of this report.
* Source: Refinitiv and relevant underlying index providers. See
disclaimer at the end of this announcement.
For a definition of terms see Glossary of Terms and Alternative
Performance Measures at the end of this announcement.
Past performance is not a guide to future performance.
Valuing Private Companies
We aim to hold our private company investments at 'fair value',
i.e. the price that would be paid in an open-market transaction.
Valuations are adjusted both during regular valuation cycles and on
an ad hoc basis in response to 'trigger events'. Our valuation
process ensures that private companies are valued in both a fair
and timely manner.
The valuation process is overseen by a valuations committee at
Baillie Gifford, which takes advice from an independent third party
(S&P Global). The valuations committee is independent from the
portfolio managers, as well as Baillie Gifford's Private Companies
Specialist team, with all voting members being from different
operational areas of the firm, and the portfolio managers only
receive final valuation notifications once they have been
applied.
We revalue the private holdings on a three-month rolling cycle,
with one-third of the holdings reassessed each month. For Baillie
Gifford US Growth, and our other investment trusts, the prices are
also reviewed twice per year by the respective boards and are
subject to the scrutiny of external auditors in the annual audit
process.
Recent market volatility has meant that recent pricing has moved
much more frequently than would have been the case with the
quarterly valuations cycle.
Beyond the regular cycle, the valuations committee also monitors
the portfolio for certain 'trigger events'. These may include
changes in fundamentals, a takeover approach, an intention to carry
out an Initial Public Offering ('IPO'), company news which is
identified by the valuation team or by the portfolio managers or
changes to the valuation of comparable public companies.
The valuations committee also monitors relevant market indices
on a weekly basis and update valuations in a manner consistent with
our external valuer's (S&P Global) most recent valuation report
where appropriate. When market volatility is particularly
pronounced the team does these checks daily. Any ad hoc change to
the fair valuation of any holding is implemented swiftly and
reflected in the next published net asset value. There is no
delay.
Baillie Gifford US Growth Trust
*
==================================
Instruments valued 53
Revaluations performed 168
Percentage of portfolio
revalued 2 times 26%
Percentage of portfolio
revalued 3+ times 74%
============================= ===
* Data reflecting period 1 June 2022 to 30 November 2022 to
align with the Company's reporting period end.
For the six months to 30 November 2022, most revaluations have
been decreases. Two companies have raised capital at an increased
valuation reflecting exceptional performance. The average movement
in both valuation and share price for those which have decreased in
value is shown below.
Average
movement
Average movement in investee
in investee share
company valuation price
=================== ================== ============
Instruments valued
* (14%) (10%)
=================== ================== ============
* Data reflecting period 1 June 2022 to 30 November 2022 to
align with the Company's reporting period end.
Share prices have decreased less than headline valuations
because Baillie Gifford US Growth typically holds preference stock,
which provides downside protection.
The share price movement reflects a probability- weighted
average of both the regular valuation, which would be realised in
an IPO, and the downside protected valuation, which would normally
be triggered in the event of a corporate sale or liquidation.
Baillie Gifford Statement on Stewardship
Baillie Gifford's over-arching ethos is that we are 'actual'
investors. We have a responsibility to behave as supportive and
constructively engaged long-term investors. We invest in companies
at different stages in their evolution, across vastly different
industries and geographies and we celebrate their uniqueness.
Consequently, we are wary of prescriptive policies and rules,
believing that these often run counter to thoughtful and beneficial
corporate stewardship. Our approach favours a small number of
simple principles which help shape our interactions with
companies.
Our Stewardship Principles
Prioritisation of Long-term Value Creation
We encourage our holdings to be ambitious and focus their
investments on long-term value creation. We understand that it is
easy to be influenced by short-sighted demands for profit
maximisation but believe these often lead to sub-optimal long-term
outcomes. We regard it as our responsibility to steer holdings away
from destructive financial engineering towards activities that
create genuine economic and stakeholder value over the long run. We
are happy that our value will often be in supporting management
when others don't.
A Constructive and Purposeful Board
We believe that boards play a key role in supporting corporate
success and representing the interests of all capital providers.
There is no fixed formula, but it is our expectation that boards
have the resources, information, cognitive and experiential
diversity they need to fulfil these responsibilities. We believe
that good governance works best when there are diverse skillsets
and perspectives, paired with an inclusive culture and strong
independent representation able to assist, advise and
constructively challenge the thinking of management.
Long-term Focused Remuneration with Stretching Targets
We look for remuneration policies that are simple, transparent
and reward superior strategic and operational endeavour. We believe
incentive schemes can be important in driving behaviour, and we
encourage policies which create genuine long-term alignment with
external capital providers. We are accepting of significant payouts
to executives if these are commensurate with outstanding long-run
value creation, but plans should not reward mediocre outcomes. We
think that performance hurdles should be skewed towards long-term
results and that remuneration plans should be subject to
shareholder approval.
Fair Treatment of Stakeholders
We believe it is in the long-term interests of all enterprises
to maintain strong relationships with all stakeholders - employees,
customers, suppliers, regulators and the communities they exist
within. We do not believe in one-size-fits-all policies and
recognise that operating policies, governance and ownership
structures may need to vary according to circumstance. Nonetheless,
we believe the principles of fairness, transparency and respect
should be prioritised at all times.
Sustainable Business Practices
We believe an entity's long-term success is dependent on
maintaining its social licence to operate and look for holdings to
work within the spirit and not just the letter of the laws and
regulations that govern them. We expect all holdings to consider
how their actions impact society, both directly and indirectly, and
encourage the development of thoughtful environmental practices and
'net-zero' aligned climate strategies as a matter of priority.
Climate change, environmental impact, social inclusion, tax and
fair treatment of employees should be addressed at board level,
with appropriately stretching policies and targets focused on the
relevant material dimensions. Boards and senior management should
understand, regularly review and disclose information relevant to
such targets publicly, alongside plans for ongoing improvement.
List of Investments (unaudited)
2022
Value 2022
% of total
Name Business GBP'000 assets *
====================================== ========================================= ======== ===========
Space Exploration Technologies
Class A Common (U) Rocket and spacecraft company 2,246 0.4
Space Exploration Technologies
Class C Common (U) Rocket and spacecraft company 693 0.1
Space Exploration Technologies
Series J Preferred (U) Rocket and spacecraft company 18,961 3.1
Space Exploration Technologies
Series K Preferred (U) Rocket and spacecraft company 4,321 0.7
Space Exploration Technologies
Series N Preferred (U) Rocket and spacecraft company 10,885 1.8
======== ===========
37,106 6.1
======== ===========
Moderna Therapeutic messenger RNA 31,609 5.2
Stripe Class B Common (U) Online payment platform 4,233 0.7
Stripe Series G Preferred (U) Online payment platform 20,614 3.4
Stripe Series H Preferred (U) Online payment platform 1,875 0.3
======== ===========
26,722 4.4
======== ===========
The Trade Desk Advertising technology company 24,689 4.0
Electric cars, autonomous driving
Tesla and solar energy 23,930 3.9
Cloud-based commerce platform
Shopify Class A provider 23,131 3.8
Online retailer and cloud computing
Amazon provider 18,052 2.9
Brex Class B Common (U) Corporate credit cards for start-ups 9,057 1.5
Brex Series D Preferred (U) Corporate credit cards for start-ups 8,522 1.4
======== ===========
17,579 2.9
======== ===========
Commercial property information
CoStar Group provider 17,162 2.8
Faire Wholesale (U) Online wholesale marketplace 5,438 0.8
Faire Wholesale Series F Preferred
(U) Online wholesale marketplace 5,671 0.9
Faire Wholesale Series G Preferred
(U) Online wholesale marketplace 4,130 0.7
======== ===========
15,239 2.4
======== ===========
Abiomed Manufacturer of heart pumps 14,879 2.4
Subscription service for TV shows
Netflix and movies 14,165 2.3
Alnylam Pharmaceuticals Therapeutic gene silencing 14,033 2.3
Combines enzymes and metal catalysts
to make
Solugen Series C-1 Preferred (U) chemicals 9,203 1.5
Combines enzymes and metal catalysts
Solugen Series D Preferred (U) to make chemicals 4,199 0.7
======== ===========
13,402 2.2
======== ===========
NVIDIA Graphics chips 11,576 1.9
Workday Enterprise information technology 11,402 1.9
Air conditioning, heating and
refrigeration
Watsco equipment distributor 10,782 1.8
Discord Series I Preferred (U) Communication software 10,647 1.7
Zipline International Series C
Preferred (U) Drone-based medical delivery 5,843 0.9
Zipline International Series E
Preferred (U) Drone-based medical delivery 3,775 0.6
======== ===========
9,618 1.5
======== ===========
Video game platform and software
Epic Games (U) developer 9,168 1.5
Databricks Series H Preferred
(U) Data and AI platform 9,143 1.5
Lyra Health Series E Preferred Digital mental health platform
(U) for enterprises 7,295 1.2
Lyra Health Series F Preferred Digital mental health platform
(U) for enterprises 1,701 0.3
======== ===========
8,996 1.5
======== ===========
Chewy Online pet supplies retailer 8,829 1.4
Cloud-based provider of network
Cloudflare services 8,756 1.4
Gene sequencing equipment and
Illumina consumables 8,462 1.4
Novocure Electric field based cancer therapies 8,386 1.4
Chegg Online education company 7,991 1.3
Marketplace for truckers and
Convoy Series D Preferred (U) shippers 3,907 0.6
Marketplace for truckers and
Convoy Series E Preferred (U) shippers 3,583 0.6
======== ===========
7,490 1.2
======== ===========
Workrise Technologies Series D Jobs marketplace for the energy
Preferred (U) sector 3,242 0.5
Workrise Technologies Series D-1 Jobs marketplace for the energy
Preferred (U) sector 721 0.1
Workrise Technologies Series E Jobs marketplace for the energy
Preferred (U) sector 3,256 0.6
======== ===========
7,219 1.2
======== ===========
Medical tools to treat vascular
Penumbra diseases 7,207 1.2
Developer of a SaaS-based cloud
data
Snowflake (P) warehousing platform 7,169 1.2
First Republic Bank San Francisco Private banking 7,139 1.1
Self-driving vehicles for local
Nuro Series C Preferred (U) delivery 3,821 0.6
Self-driving vehicles for local
Nuro Series D Preferred (U) delivery 3,178 0.5
======== ===========
6,999 1.1
======== ===========
Clinical stage neurodegeneration
Denali Therapeutics company 6,683 1.1
Zoom Video Communications Remote conferencing service provider 6,606 1.1
Snyk Ordinary Shares (U) Developer security platform 2,257 0.4
Snyk Series F Preferred (U) Developer security platform 4,251 0.7
======== ===========
6,508 1.1
======== ===========
Datadog IT monitoring and analytics platform 6,348 1.0
Twilio Cloud-based communications platform 5,691 0.9
Doordash Online local delivery 5,602 0.9
BillionToOne Series C Preferred Molecular diagnostics technology
(U) platform 3,776 0.6
Molecular diagnostics technology
BillionToOne Promissory Note (U) platform 1,679 0.3
======== ===========
5,455 0.9
======== ===========
Roku Online media player 5,451 0.9
MarketAxess Holdings Electronic bond trading platform 5,440 0.9
Coursera Online educational services provider 5,006 0.8
Online furniture and homeware
Wayfair retailer 4,800 0.8
Image sharing and social media
Pinterest company 4,792 0.8
Online game platform and game
Roblox creation system 4,680 0.8
Affirm (P) Consumer finance 2,261 0.4
Affirm Class B (P) Consumer finance 2,312 0.4
======== ===========
4,573 0.8
======== ===========
Away (JRSK) Series Seed Preferred
(U) Travel and lifestyle brand 873 0.1
Away (JRSK) Series D Preferred
(U) Travel and lifestyle brand 1,546 0.3
Away(JRSK) Convertible Promissory
Note 2021 (U) Travel and lifestyle brand 1,069 0.2
Away(JRSK) Convertible Promissory
Note (U) Travel and lifestyle brand 1,069 0.2
======== ===========
4,557 0.8
======== ===========
HashiCorp Open source infrastructure software 4,093 0.6
Warby Parker (P) Online and physical glasses retailer 4,057 0.6
Bioengineering company developing
micro
organisms that produce various
Ginkgo Bioworks (P) proteins 4,055 0.6
Tanium Class B Common (U) Online security management 3,910 0.6
Snap Class A Camera and social media company 3,747 0.6
Rivian Automotive Electric vehicle manufacturer 3,702 0.6
10X Genomics Single cell sequencing company 3,512 0.6
PsiQuantum Series D Preferred
(U) Silicon photonic quantum computing 3,443 0.6
Duolingo Mobile learning platform 3,384 0.6
Indigo Agriculture Common (U) Agricultural technology company 30 <0.1
Indigo Agriculture Series E Preferred
(U) Agricultural technology company 1,866 0.3
Indigo Agriculture Series F Preferred
(U) Agricultural technology company 526 0.1
Indigo Agriculture Series G Preferred
(U) Agricultural technology company 730 0.1
======== ===========
3,152 0.5
======== ===========
Niantic Series C Preferred (U) Augmented reality games 2,978 0.5
Lemonade Insurance company 2,870 0.5
Capsule Series D Preferred (U) Digital pharmacy 2,777 0.4
Appian Enterprise software developer 2,741 0.4
Online market place for travel
Airbnb Class B Common (P) accommodation 2,638 0.4
Honor Technology Series D Preferred
(U) Home care provider 1,757 0.3
Honor Technology Series E Preferred
(U) Home care provider 758 0.1
======== ===========
2,515 0.4
======== ===========
Recursion Pharmaceuticals Drug discovery platform 2,481 0.4
Butterfly Network (P) Portable ultrasound and diagnostics 2,167 0.4
Sweetgreen Salad restaurant chain 1,997 0.3
Blockstream Series B-1 Preferred
(U) Bitcoin and digital asset infrastructure 1,989 0.3
Online directory service for
Thumbtack Class A Common (U) local businesses 654 0.1
Online directory service for
Thumbtack Series A Preferred (U) local businesses 47 <0.1
Online directory service for
Thumbtack Series B Preferred (U) local businesses 3 <0.1
Online directory service for
Thumbtack Series C Preferred (U) local businesses 14 <0.1
Online directory service for
Thumbtack Series I Preferred (U) local businesses 1,138 0.2
======== ===========
1,856 0.3
======== ===========
Technology-based real estate
Redfin brokerage firm 1,224 0.2
Aurora Self-driving technology 413 0.1
Aurora Innovation Class B Common Self-driving technology 734 0.1
======== ===========
1,147 0.2
======== ===========
Sana Biotechnology Gene editing technology 839 0.1
Online platform for buying used
Carvana cars 516 0.1
====================================== ========================================= ======== ===========
Total Investments 608,659 99.2
================================================================================= ======== ===========
Net Liquid Assets 4,833 0.8
================================================================================= ======== ===========
Total Assets 613,492 100.0
================================================================================= ======== ===========
* See Glossary of Terms and Alternative Performance Measures at
the end of this announcement.
(U) Denotes unlisted (private company) security
(P) Denotes listed security previously held in portfolio as an
unlisted (private company) security.
Private
Listed company Net liquid Total
equities securities assets assets
% % % %
================= ========= ================= ========== =======
30 November 2022 63.6 35.6 0.8 100.0
================= ========= ================= ========== =======
31 May 2022 63.2 36.4 0.4 100.0
================= ========= ================= ========== =======
Figures represent percentage of total assets.
Includes holdings in ordinary shares, preference shares and
promissory notes.
Distribution of Total Assets * (unaudited)
Sectoral Analysis
As at 30 November 2022 As at 31 May 2022
% %
======================= ====================== =================
Communication Services 9.4 4.2
Consumer Discretionary 17.8 20.7
Consumer Staples 0.5 0.4
Financials 5.4 6.1
Healthcare 19.7 18.2
Industrials 15.9 14.8
Information Technology 27.5 33.8
Materials 2.8 1.1
Real Estate 0.2 0.3
Net Liquid Assets 0.8 0.4
Total Assets 100.0 100.0
======================= ====================== =================
* See Glossary of Terms and Alternative Performance Measures at
the end of this announcement.
Income Statement (unaudited)
For the six months ended For the six months ended For the year ended
30 November 2022 30 November 2021 31 May 2022 (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
========================== ======== ======== ======== ======== ======== ======== ======== ========= =========
(Losses)/gains on sales
of investments - (8,958) (8,958) - 52,292 52,292 - 49,470 49,470
Movement in investment
holding gains/(losses) - 723 723 - 108,424 108,424 - (363,623) (363,623)
Currency losses - (2,100) (2,100) - (1,510) (1,510) - (2,976) (2,976)
Income from investments
and interest receivable 363 - 363 281 - 281 568 - 568
Investment management
fee (note 3) (1,719) - (1,719) (2,958) - (2,958) (4,865) - (4,865)
Other administrative
expenses (331) - (331) (320) - (320) (676) - (676)
========================== ======== ======== ======== ======== ======== ======== ======== ========= =========
Net return before finance
costs and taxation (1,687) (10,335) (12,022) (2,997) 159,206 156,209 (4,973) (317,129) (322,102)
========================== ======== ======== ======== ======== ======== ======== ======== ========= =========
Finance costs of
borrowings (621) - (621) (369) - (369) (741) - (741)
========================== ======== ======== ======== ======== ======== ======== ======== ========= =========
Net return before taxation (2,308) (10,335) (12,643) (3,366) 159,206 155,840 (5,714) (317,129) (322,843)
========================== ======== ======== ======== ======== ======== ======== ======== ========= =========
Tax (37) - (37) (34) - (34) (67) - (67)
========================== ======== ======== ======== ======== ======== ======== ======== ========= =========
Net return after taxation (2,345) (10,335) (12,680) (3,400) 159,206 155,806 (5,781) (317,129) (322,910)
========================== ======== ======== ======== ======== ======== ======== ======== ========= =========
Net return per ordinary
share (note 4) (0.77p) (3.39p) (4.16p) (1.11p) 51.82p 50.71p (1.88p) (103.24p) (105.12p)
========================== ======== ======== ======== ======== ======== ======== ======== ========= =========
Balance Sheet (unaudited)
At 31 May
2022
At 30 November
2022 (audited)
GBP'000 GBP'000
====================================== ============== ===========
Fixed assets
====================================== ============== ===========
Investments held at fair value
through profit or loss (note 6) 608,659 621,587
Current assets
Debtors 1,329 359
Cash and cash equivalents 4,768 3,007
====================================== ============== ===========
6,097 3,366
====================================== ============== ===========
Creditors
Amounts falling due within one
year (note 7) (43,250) (20,930)
====================================== ============== ===========
Net current liabilities (37,153) (17,564)
====================================== ============== ===========
Total assets less current liabilities 571,506 604,023
====================================== ============== ===========
Creditors
Amounts falling due after more
than one year (note 7) - (19,837)
====================================== ============== ===========
Net assets 571,506 584,186
====================================== ============== ===========
Capital and reserves
Share capital 3,073 3,073
Share premium account 250,827 250,827
Special distributable reserve 168,942 168,942
Capital reserve 166,465 176,800
Revenue reserve (17,801) (15,456)
====================================== ============== ===========
Shareholders' funds 571,506 584,186
====================================== ============== ===========
Net asset value per ordinary share
(after deducting borrowings at
book value) 187.28p 191.44p
====================================== ============== ===========
Ordinary shares in issue (note
8) 305,153,700 305,153,700
====================================== ============== ===========
Statement of Changes in Equity (unaudited)
For the six months to 30 November 2022
Share Special Capital
Share premium distributable Reserve Revenue Shareholders'
capital account reserve * reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBPí000
==================== ======== ======== ============== ======== ======== =============
Shareholders' funds
at 1 June 2022 3,073 250,827 168,942 176,800 (15,456) 584,186
Net return after
taxation - - - (10,335) (2,345) (12,680)
==================== ======== ======== ============== ======== ======== =============
Shareholders' funds
at
30 November 2022 3,073 250,827 168,942 166,465 (17,801) 571,506
==================== ======== ======== ============== ======== ======== =============
For the six months to 30 November 2021
Share Special Capital
Share premium distributable Reserve Revenue Shareholders'
capital account reserve * reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBPí000
==================== ======== ======== ============== ========= ======== ===============
Shareholders' funds
at 1 June 2021 3,068 249,020 168,942 497,528 (9,675) 908,883
Ordinary shares
issued 5 1,817 - - - 1,822
==================== ======== ======== ============== ========= ======== =============
Net return after
taxation - - - 159,206 (3,400) 155,806
==================== ======== ======== ============== ========= ======== =============
Shareholders' funds
at
30 November 2021 3,073 250,837 168,942 656,734 (13,075) 1,066,511
==================== ======== ======== ============== ========= ======== =============
* The capital reserve as at 30 November 2022 includes investment
holding gains of GBP14,173,000 (30 November 2021 - gains of
GBP485,191,000).
Cash Flow Statement (unaudited)
2022 2021
GBP'000 GBP'000
===================================== ======== =========
Cash flows from operating activities
Net return before taxation (12,643) 155,840
Net losses/(gains) on investments 8,235 (160,716)
Currency losses 2,100 1,510
Finance costs of borrowings 621 369
Overseas withholding tax incurred (36) (34)
Changes in debtors and creditors (226) 238
====================================== ======== =========
Cash from operations * (1,949) (2,793)
Finance costs paid (619) (375)
====================================== ======== =========
Net cash outflow from operating
activities (2,568) (3,168)
====================================== ======== =========
Cash flows from investing
activities
Acquisitions of investments (19,787) (119,209)
Disposals of investments 23,905 109,320
====================================== ======== =========
Net cash inflow/(outflow)
from investing activities 4,118 (9,889)
====================================== ======== =========
Cash flows from financing
activities
Ordinary shares issued - 1,822
Bank loans drawn down 42,328 46,057
Bank loans repaid (42,328) (36,975)
====================================== ======== =========
Net cash inflow from financing
activities - 10,904
====================================== ======== =========
Increase/(decrease) in cash
and cash equivalents 1,550 (2,153)
Exchange movements 211 862
Cash and cash equivalents
at start of period 3,007 18,484
====================================== ======== =========
Cash and cash equivalents
at 30 November 4,768 17,193
====================================== ======== =========
* Cash from operations includes dividends received in the period
of GBP246,000 (30 November 2021 - GBP226,000) and interest received
of GBP13,000 (30 November 2021 - GBP1,000).
Notes to the Condensed Financial Statements (unaudited)
1. The condensed Financial Statements for the six months to 30
November 2022 comprise the statements set out above together with
the related notes below. They have been prepared in accordance with
FRS 104 'Interim Financial Reporting' and the AIC's Statement of
Recommended Practice issued in November 2014, updated in October
2019, April 2021 and July 2022 with consequential amendments, and
have not been audited or reviewed by the Auditor pursuant to the
Auditing Practices Board Guidance on 'Review of Interim Financial
Information'. The Financial Statements for the six months to 30
November 2022 have been prepared on the basis of the same
accounting policies as set out in the Company's Annual Report and
Financial Statements for the year ended 31 May 2022.
Going Concern
Having considered the nature of the Company's principal risks
and uncertainties, as set out on the inside front cover, together
with its current position, investment objective and policy, assets
and liabilities, and projected income and expenditure, together
with the Company's dividend policy, it is the Directors' opinion
that the Company has adequate resources to continue in operational
existence for the foreseeable future. The Board has, in particular,
considered the impact of heightened market volatility since the
Covid-19 pandemic and over recent months due to the macroeconomic
and geopolitical concerns, but does not believe the Company's going
concern status is affected.
The Company's assets, the majority of which are investments in
quoted securities which are readily realisable, exceed its
liabilities significantly. All borrowings require the prior
approval of the Board. Gearing levels and compliance with borrowing
covenants are reviewed by the Board on a regular basis. As at 30
November 2022, the Company had a net current liability of GBP37.2
million primarily as a result of the US$25 million five year
revolving credit facility and the US$25 million three year fixed
rate facility with ING Bank N.V., London Branch, which are due to
mature on 1 August 2023 and 23 October 2023 respectively. The
Company has continued to comply with the investment trust status
requirements of section 1158 of the Corporation Tax Act 2010 and
the Investment Trust (Approved Company) (Tax) Regulations 2011.
Accordingly, the Directors consider it appropriate to adopt the
going concern basis of accounting in preparing these Financial
Statements and confirm that they are not aware of any material
uncertainties which may affect the Company's ability to continue to
do so over a period of at least twelve months from the date of
approval of these Financial Statements.
2. The financial information contained within this Interim
Financial Report does not constitute statutory accounts as defined
in sections 434 to 436 of the Companies Act 2006. The financial
information for the year to 31 May 2022 has been extracted from the
statutory accounts which have been filed with the Registrar of
Companies. The Auditor's Report on those accounts was not
qualified, did not include a reference to any matters to which the
Auditor drew attention by way of emphasis without qualifying the
report and did not contain a statement under sections 498(2) or (3)
of the Companies Act 2006.
3. The Company has appointed Baillie Gifford & Co Limited, a
wholly owned subsidiary of Baillie Gifford & Co, as its
Alternative Investment Fund Manager and Company Secretary. Baillie
Gifford & Co Limited has delegated portfolio management
services to Baillie Gifford & Co. Dealing activity and
transaction reporting have been further sub-delegated to Baillie
Gifford Overseas Limited and Baillie Gifford Asia (Hong Kong)
Limited. The Management Agreement can be terminated on six months'
notice.
With effect from 1 September 2021 the annual management fee is
0.70% on the first GBP100 million of net assets, 0.55% on the next
GBP900 million of net assets and 0.50% on the remaining net assets.
Prior to 1 September 2021 the fee was 0.70% on the first GBP100
million of net assets and 0.55% on the remaining net assets.
Management fees are calculated and payable quarterly.
4.
For the year
For the For the ended
six months six months
to to 31 May 2022
30 November 30 November
2022 2021 (audited)
GBP'000 p GBP'000 p GBP'000 p
==================== ======== ====== ======== ====== ========= =========
Net Return
Per Ordinary
Share
Revenue return
after taxation (2,345) (0.77) (3,400) (1.11) (5,781) (1.88)
Capital return
after taxation (10,335) (3.39) 159,206 51.82 (317,129) (103.24)
==================== ======== ====== ======== ====== ========= =========
Net return (12,680) (4.16) 155,806 50.71 (322,910) (105.12)
==================== ======== ====== ======== ====== ========= =========
Weighted average
number of ordinary
shares in issue 305,153,700 307,211,230 307,185,443
==================== ================ ================ ====================
5. No interim dividend has been declared. The Company's
objective is to produce capital growth and the policy is only to
distribute, by way of a final dividend, the minimum required to
maintain investment trust status. It is not currently envisaged
that any dividend will be paid in the foreseeable future.
6. Fair Value Hierarchy
The fair value hierarchy used to analyse the fair values of
financial assets is described below. The levels are determined by
the lowest (that is the least reliable or least independently
observable) level of input that is significant to the fair value
measurement for the individual investment in its entirety as
follows:
Level 1 - using unadjusted quoted prices for identical
instruments in an active market;
Level 2 - using inputs, other than quoted prices included within
Level 1, that are directly or indirectly observable (based on
market data); and
Level 3 - using inputs that are unobservable (for which market
data is unavailable).
An analysis of the Company's financial asset investments based
on the fair value hierarchy described above is shown below.
Investments held at fair value through profit or loss
Level Level Level
1 2 3 Total
As at 30 November 2022 GBP'000 GBP'000 GBP'000 GBP'000
================================== ======== ======== ======== ========
Listed securities 390,191 - - 390,191
Private company ordinary shares - - 37,686 37,686
Private company preference
shares * - - 176,965 176,965
Private company convertible
promissory notes - - 3,817 3,817
================================== ======== ======== ======== ========
Total financial asset investments 390,191 - 218,468 608,659
================================== ======== ======== ======== ========
Level Level Level
1 2 3 Total
As at 31 May 2022 GBP'000 GBP'000 GBP'000 GBP'000
================================== ======== ======== ======== ========
Listed securities 394,228 - - 394,228
Private company ordinary shares - - 45,842 45,842
Private company preference
shares * - - 179,347 179,347
Private company convertible
promissory notes - - 2,170 2,170
================================== ======== ======== ======== ========
Total financial asset investments 394,228 - 227,359 621,587
================================== ======== ======== ======== ========
* The investments in preference shares are not classified as
equity holdings as they include liquidation preference rights that
determine the repayment (or multiple thereof) of the original
investment in the event of a liquidation event such as a
takeover.
The valuation techniques used by the Company are explained in
the accounting policies on page 51 of the Annual Report and
Financial Statements for the year ended 31 May 2022. Listed
investments are categorised as Level 1 if they are valued using
unadjusted quoted prices for identical instruments in an active
market and as Level 2 if they do not meet all these criteria but
are, nonetheless, valued using market data. The Company's holdings
in private company investments are categorised as Level 3 as
unobservable data is a significant input to their fair value
measurements.
During the period investments with a book value of nil (31 May
2022 - GBP10,542,000) were transferred from Level 3 to Level 1 on
becoming listed.
7. The Company has a US$25,000,000 five year revolving credit
facility with ING Bank N.V., London Branch which expires on 1
August 2023 and a US$25,000,000 three year fixed rate facility with
ING Bank N.V., London Branch which expires on 23 October 2023. At
30 November 2022, creditors falling due within one year include
US$25,000,000 (sterling value GBP20,993,000) drawn down under the
five year revolving credit facility and US$25,000,000 (sterling
value GBP20,993,000) drawn down under the three year fixed rate
facility. At 30 November 2022, there were no creditors falling due
after more than one year. At 31 May 2022, creditors falling due
within one year included US$25,000,000 (sterling value
GBP19,837,000) drawn under the five year revolving credit facility
and creditors due in more than one year included US$25,000,000
(sterling value GBP19,837,000) drawn under the three year fixed
rate facility.
The fair value of borrowings as at 30 November 2022 was
GBP41,113,000 (31 May 2022 - GBP39,081,000).
8.
30 November 30 November 31 May 31 May
2022 2022 2022 2022
Number GBP'000 Number GBP'000
=================== =========== =========== ============ ========
Share Capital
Allotted, called
up and fully paid
ordinary shares
of 1p each 305,153,700 3,051 305,153,700 3,051
Treasury shares of
1p each 2,206,300 22 2,206,300 22
=================== =========== =========== ============ ========
307,360,000 3,073 307,360,000 3,073
=================== =========== =========== ============ ========
The Company has authority to allot shares under section 551 of
the Companies Act 2006. The Board has authorised use of this
authority to issue new shares at a premium to net asset value in
order to enhance the net asset value per share for existing
shareholders and improve the liquidity of the Company's shares. In
the six months to 30 November 2022, the Company issued no ordinary
shares (in the year to 31 May 2022, the Company issued a total of
525,000 shares (nominal value GBP5,000, representing 0.2% of the
issued share capital at 31 May 2021) raising net proceeds of
GBP1,812,000).
Over the period from 30 November 2022 to 20 January 2023 the
Company has issued no further shares. The Company's authority to
buy back shares up to a maximum of 14.99% of the Company's issued
share capital was renewed at the Annual General Meeting held on 16
September 2022. No shares were bought back in the six months to 30
November 2022 (year to 31 May 2022 - 2,206,300 shares with
a nominal value of GBP22,000 were bought back at a total cost of
GBP3,599,000 and held in treasury). At 30 November 2022 the Company
had authority to buy back 45,742,539 ordinary shares.
Over the period from 30 November 2022 to 20 January 2023 the
Company bought back no further shares.
9. During the period the Company incurred transaction costs on
purchases of investments of GBP5,000 (six months to 30 November
2021 - GBP16,000; year to 31 May 2022 - GBP29,000) and transaction
costs on sales of GBP7,000 (six months to 30 November 2021 -
GBP19,000; year to 31 May 2022 - GBP25,000).
10. Related Party Transactions
There have been no transactions with related parties during the
first six months of the current financial year that have materially
affected the financial position or the performance of the Company
during that period and there are no changes in the related party
transactions described in the last Annual Report and Financial
Statements that could have had such an effect on the Company during
that period
11. Principal Risks and Uncertainties
The principal risks facing the Company are financial risk,
private company (unlisted) investments risk, investment strategy
risk, environmental, social and governance risk, discount risk,
regulatory risk, custody and depositary risk, operational risk,
cyber security risk, leverage risk, political and associated
economic risk and emerging risks. An explanation of these risks and
how they are managed is set out on pages 6 and 7 of the Company's
Annual Report and Financial Statements for the year ended 31 May
2022 which is available on the Company's website:
bgusgrowthtrust.com. ++
The principal risks and uncertainties have not changed since the
date of that report.
12. The Interim Financial Report will be available at
bgusgrowthtrust.com++ and will be posted to shareholders on or
around 7 February 2023.
++ Neither the contents of the Managers' website nor the
contents of any website accessible from hyperlinks on the Managers'
website (or any other website) is incorporated into, or forms part
of, this announcement.
None of the views expressed in this document should be construed
as advice to buy or sell a particular investment.
Sustainable Finance Disclosures Regulation ('SFDR')
The EU Sustainable Finance Disclosure Regulation (`SFDR') does
not have a direct impact in the UK due to Brexit, however, it
applies to third-country products marketed in the EU. As Baillie
Gifford US Growth Trust plc is marketed in the EU by the AIFM, BG
& Co Limited, via the National Private Placement Regime (NPPR)
the following disclosures have been provided to comply with the
high-level requirements of SFDR. The AIFM has adopted Baillie
Gifford & Co's Governance and Sustainable Principles and
Guidelines as its policy on integration of sustainability risks in
investment decisions. Baillie Gifford & Co's approach to
investment is based on identifying and holding high quality growth
businesses that enjoy sustainable competitive advantages in their
marketplace. To do this it looks beyond current financial
performance, undertaking proprietary research to build an in-depth
knowledge of an individual company and a view on its long-term
prospects. This includes the consideration of sustainability
factors (environmental, social and/or governance matters) which it
believes will positively or negatively influence the financial
returns of an investment. More detail on the Managers' approach to
sustainability can be found in the Governance and Sustainability
Principles and Guidelines document, available publicly on the
Baillie Gifford website ( bailliegifford.com ).
Taxonomy Regulation
The Taxonomy Regulation establishes an EU-wide framework or
criteria for environmentally sustainable economic activities in
respect of six environmental objectives. It builds on the
disclosure requirements under SFDR by introducing additional
disclosure obligations in respect of alternative investment funds
that invest in an economic activity that contributes to an
environmental objective. The Company does not commit to make
sustainable investments as defined under SFDR. As such, the
underlying investments do not take into account the EU criteria for
environmentally sustainable economic activities.
Glossary of Terms and Alternative Performance Measures
('APM')
An alternative performance measure is a financial measure of
historical or future financial performance, financial position or
cash flows, other than a financial measure defined or specified in
the applicable financial reporting framework. The APMs noted below
are commonly used measures within the investment trust industry and
serve to improve comparability between investment trusts.
Total Assets
The total value of all assets held less all liabilities (other
than liabilities in the form of borrowings).
Shareholders' Funds and Net Asset Value
Shareholders' funds is the value of all assets held less all
liabilities, with borrowings deducted at book value. Net asset
value ('NAV') is the value of all assets held less all liabilities,
with borrowings deducted at either fair value or book value as
described below. Per share amounts are calculated by dividing the
relevant figure by the number of ordinary shares in issue.
Borrowings at Book
Borrowings are valued at nominal par value (book value).
Borrowings at Fair Value (APM)
Borrowings are valued at an estimate of their market worth. The
fair value of borrowings is set out in note 7 above and a
reconciliation to net asset value with borrowings at book value is
provided below.
Net Asset Value (Reconciliation of NAV at Book Value to NAV at
Fair Value)
30 November 31 May
2022 2022
============================ =============== ===============
Net asset value per
ordinary share
(borrowings at book
value) 187.28p 191.44p
============================ =============== ===============
Shareholders' funds
(borrowings at book
value) GBP571,506,000 GBP584,186,000
Add: book value of
borrowings GBP41,986,000 GBP39,674,000
Less: fair value of
borrowings (GBP41,113,000) (GBP39,081,000)
============================ =============== ===============
Shareholders' funds
(borrowings at fair
value) GBP572,379,000 GBP584,779,000
============================ =============== ===============
Number of shares in
issue 305,153,700 305,153,700
============================ =============== ===============
Net asset value per
ordinary share (borrowings
at fair value) 187.57p 191.63p
============================ =============== ===============
Net Liquid Assets
Net liquid assets comprise current assets less current
liabilities (excluding borrowings).
Discount/Premium (APM)
As stock markets and share prices vary, an investment trust's
share price is rarely the same as its NAV. When the share price is
lower than the NAV per share it is said to be trading at a
discount. The size of the discount is calculated by subtracting the
share price from the NAV per share and is usually expressed as a
percentage of the NAV per share. If the share price is higher than
the NAV per share, this situation is called a premium.
30 November 31 May
2022 2022
============================= ========== =========== ========
Net asset value per ordinary
share
(after deducting borrowings
at fair value) (a) 187.57p 191.63p
Share price (b) 160.20p 168.00p
============================= ========== =========== ========
((b)-(a))
(Discount)/premium ÷
(borrowings at fair value) (a) (14.6%) (12.3%)
============================= ========== =========== ========
30 November 31 May
2022 2022
============================= ========== =========== ========
Net asset value per ordinary
share
(after deducting borrowings
at book value) (a) 187.28p 191.44p
Share price (b) 160.20p 168.00p
============================= ========== =========== ========
((b)-(a))
(Discount)/premium ÷
(borrowings at book value) (a) (14.5%) (12.2%)
============================= ========== =========== ========
Total Return (APM)
The total return is the return to shareholders after reinvesting
the dividend on the date that the share price goes ex-dividend. The
Company does not pay a dividend, therefore, the one year and since
inception total returns for the share price and NAV per share at
book and fair value are the same as the percentage movements in the
share price and NAV per share at book and fair value as detailed
above.
Ongoing Charges (APM)
The total recurring expenses (excluding the Company's cost of
dealing in investments and borrowing costs) incurred by the Company
as a percentage of the average net asset value (with borrowings at
fair value).
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other
public company, an investment trust can borrow money to invest in
additional investments for its portfolio. The effect of the
borrowing on the shareholders' assets is called 'gearing'. If the
Company's assets grow, the shareholders' assets grow
proportionately more because the debt remains the same. But if the
value of the Company's assets falls, the situation is reversed.
Gearing can therefore enhance performance in rising markets but can
adversely impact performance in falling markets.
Gearing is the Company's borrowings at book value less cash and
cash equivalents (including any outstanding trade settlements)
expressed as a percentage of shareholders' funds.
30 November 31 May
2022 2022
================================ ==================== ============== ==============
Borrowings (at book cost) GBP41,986,000 GBP39,674,000
Less: cash and cash equivalents (GBP4,768,000) (GBP3,007,000)
Less: sales for subsequent
settlement (GBP860,000) -
Add: purchases for subsequent
settlement - -
================================ ==================== ============== ==============
Adjusted borrowings (a) GBP36,358,000 GBP36,667,000
================================ ==================== ============== ==============
Shareholders' funds (b) GBP571,506,000 GBP584,186,000
================================ ==================== ============== ==============
(a) as a percentage
Gearing: of (b) 6% 6%
================================ ==================== ============== ==============
Potential gearing is the Company's borrowings expressed as a
percentage of shareholders' funds.
30 November 31 May
2022 2022
================== ==================== ============== ==============
Borrowings (at (a)
book cost) GBP41,986,000 GBP39,674,000
Shareholders' (b)
funds GBP571,506,000 GBP584,186,000
================== ==================== ============== ==============
(a) as a percentage
Potential gearing of (b) 7% 7%
================== ==================== ============== ==============
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers
Regulations, leverage is any method which increases the Company's
exposure, including the borrowing of cash and the use of
derivatives.
It is expressed as a ratio between the Company's exposure and
its net asset value and can be calculated on a gross and a
commitment method. Under the gross method, exposure represents the
sum of the Company's positions after the deduction of sterling cash
balances, without taking into account any hedging and netting
arrangements.
Under the commitment method, exposure is calculated without the
deduction of sterling cash balances and after certain hedging and
netting positions are offset against each other.
Active Share (APM)
Active share, a measure of how actively a portfolio is managed,
is the percentage of the portfolio that differs from its
comparative index. It is calculated by deducting from 100 the
percentage of the portfolio that overlaps with the comparative
index. An active share of 100 indicates no overlap with the index
and an active share of zero indicates a portfolio that tracks the
index.
Private Company
A private company means a company whose shares are not available
to the general public for trading and not listed on the stock
exchange.
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express or implied, as to the accuracy, completeness or timeliness
of the data contained herewith nor as to the results to be obtained
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to any recipient of the data for any inaccuracies, errors or
omissions in the index data included in this document, regardless
of cause, or for any damages (whether direct or indirect) resulting
therefrom.
No Provider has any obligation to update, modify or amend the
data or to otherwise notify a recipient thereof in the event that
any matter stated herein changes or subsequently becomes
inaccurate.
Without limiting the foregoing, no Provider shall have any
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suffered by you as a result of or in connection with any opinions,
recommendations, forecasts, judgements, or any other conclusions,
or any course of action determined, by you or any third party,
whether or not based on the content, information or materials
contained herein.
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for any errors, omissions, or interruptions of any index or the
data included therein.
Baillie Gifford US Growth Trust plc is a listed UK company. The
value of its shares and any income from them can fall as well as
rise and investors may not get back the amount invested. This is
because the share price is determined by the changing conditions in
the relevant stock markets in which the Company invests and by the
supply and demand for the Company's shares. Investment in
investment trusts should be regarded as medium to long-term. The
Company's risk could be increased by its investment in unlisted
investments. These assets may be more difficult to sell, so changes
in their prices may be greater. The Company is listed on the London
Stock Exchange and is not authorised or regulated by the Financial
Conduct Authority. You can find up to date performance information
about Baillie Gifford US Growth Trust plc on the US Growth page of
the Managers' website at bgusgrowthtrust.com ++
++ Neither the contents of the Managers' website nor the
contents of any website accessible from hyperlinks on the Managers'
website (or any other website) is incorporated into, or forms part
of, this announcement.
Naomi Cherry, Baillie Gifford & Co
Tel: 0131 275 2000
Jonathan Atkins, Four Communications
Tel: 0203 920 0555 or 07872 495396
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END
IR MZGZMNGNGFZM
(END) Dow Jones Newswires
January 23, 2023 02:00 ET (07:00 GMT)
Baillie Gifford Us Growth (LSE:USA)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Baillie Gifford Us Growth (LSE:USA)
Gráfica de Acción Histórica
De May 2023 a May 2024