Baillie Gifford UK Growth
New for 2019. Offers growth at a discount
Baillie Gifford UK Growth is a new entrant for 2019 and a ‘wildcard’ choice in this category. It has experienced mixed fortunes since its management moved from Schroders to Baillie Gifford last June.
Its discount to net asset value narrowed from 12% to 7% when the new manager was announced. However, an unfavourable backdrop for growth stocks and overhang from the transfer or resale of the trust’s shares held in Schroders’ Isa scheme led to volatility in the discount, making this an opportunistic choice for investors who want to tap into Baillie Gifford’s growth style of investing.
While investor sentiment toward UK equities is likely to be dominated by political developments in the near term, Numis Securities sees scope for the trust to trade at a premium in future now that the shareholder register has been tidied up.
“We believe the high-growth nature of the fund differentiates it from other UK-focused investment companies,” says Charles Cade, head of investment companies research.
Most UK equity trusts have a mandate to deliver income, while the largest two, Woodford Patient Capital and Fidelity Special Values (both also Rated Funds), focus on early stage companies and value stocks respectively.
Iain McCombie and Milena Mileva, co-managers of Baillie Gifford UK Growth, have revamped the portfolio, having sold the vast majority of the fund’s prior portfolio of 49 holdings and replaced them with 42 additions. As a result, 98% of the portfolio was “positioned as desired” at the end of 2018.
Baillie Gifford is waiving its management fee for the current fi nancial year, which more than covers these transition costs. Thereafter, the trust will charge a competitive management fee of 0.5% of net assets and no performance incentive.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Hargreaves Lansdown PLC||4.09 %|
|St James's Place PLC||3.88 %|
|Prudential PLC||3.84 %|
|Auto Trader Group PLC||3.72 %|
|Halma PLC||3.71 %|
|Bunzl PLC||3.24 %|
|Legal & General Group PLC||3.15 %|
|Diageo PLC||3.15 %|
|Renishaw PLC||3.13 %|
|Just Eat PLC||2.93 %|
|United Kingdom||97.75 %|
|Financial Services||24.95 %|
|Consumer Cyclical||18.44 %|
|Consumer Defensive||6.47 %|
|Basic materials||6.12 %|
Iain, CFA, graduated MA in Accounting from Aberdeen University and trained as a Chartered Accountant. Iain joined Baillie Gifford in 1994, and has spent the majority of his career as an investment manager in our UK Equity Team. He is lead manager of our UK Core strategy and has been one of the four members of our Pan-European Portfolio Construction Group since 2010. He became a Partner in 2005 and Chief of Investment Staff in 2013.
Milena completed her MPhil in Politics at Oxford University in 2009, having graduated with a BA in Social & Political Science from Cambridge University in 2007. She joined Baillie Gifford 2009 and has spent time working in the Manager’s Developed Asia, Emerging Markets, International and UK equity investment teams.
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.