RCS - Baillie Gifford UK - Annual Overview from QuotedData
08/08/2024 14:16
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240808:nRSH7796Za&default-theme=true RNS Number : 7796Z Baillie Gifford UK Growth Trust PLC 08 August 2024 Baillie Gifford UK Growth Trust - Annual Overview from QuotedData 8(th) August 2024 Light at the end of the tunnel As we discuss in the performance section on pages 14 to 23, Baillie Gifford UK Growth Trust (BGUK) has had a challenging three years, but with interest rates falling, this heavily growth-focused trust could be set for a significant period of outperformance (an environment of higher interest rates tends to be negative for most equities but particularly growth investments which tend to have a higher proportion of their value discounted back from some point in the future - a reversal of this could drive a rerating of growth stocks). This could trigger a substantial narrowing of its discount to net asset value (NAV), which is currently at levels seen during the depths of the COVID market collapse and seems nonsensical (see Figure 34 on page 29). The scale of the opportunity and the board's conviction in the managers to deliver on this is such that, if shareholders approve continuation at this year's annual general meeting (AGM), the board is proposing that if performance does not turn around, it will offer shareholders an opportunity to realise their investment in full at a price close to NAV in 2029. In addition, they are saying that they will hold an extra continuation vote in 2027 (see page 32 for more details). Full Research: https://quoteddata.com/research/baillie-gifford-uk-growth-trust-light-at-the-end-of-the-tunnel-qd/ (https://quoteddata.com/research/baillie-gifford-uk-growth-trust-light-at-the-end-of-the-tunnel-qd/) This research is also available free on our website www.quoteddata.com (http://www.quoteddata.com) where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required. NB: Marten & Co was paid to produce this note on Baillie Gifford UK Growth Trust Plc, and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority. QUOTEDDATA 50 Gresham Street | London EC2V 7AY Tel: +44 (0) 20 3691 9430 www.quoteddata.com (http://www.quoteddata.com) | research@quoteddata.com (mailto:research@quoteddata.com) | www.martenandco.com (http://www.martenandco.com) This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END NRAEADPPEFSLEFA