RCS - Baillie Gifford UK - Annual Overview from QuotedData

Baillie Gifford UK Growth TrustAnnouncement

27/09/2023 13:00

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RNS Number : 8713N  Baillie Gifford UK Growth Trust PLC  27 September 2023

Baillie Gifford UK Growth Trust - Annual Overview from QuotedData

27(th) September 2023

A recipe for a rerating

As the fund with most growth-orientated investment style amongst its peers
(see page 21), Baillie Gifford UK Growth Trust (BGUK) has faced particularly
strong headwinds during the last 18 months, as investors have either sought
sanctuary in value and defensive stocks, or pulled money out of equities
altogether, often in favour of fixed income stocks which are now offering a
better rate of return than they have for some time.

Despite these challenges, BGUK has provided a net asset value (NAV) total
return of 4.9% over the last year (peer group average of 3.3% - see page 22)
and at an operational level its companies continue to perform well. The
managers have reiterated their long-term confidence in the portfolio, and
whilst acknowledging recession risk has increased, they note that BGUK's
companies are financially sound and have resilient balance sheets.

Both the UK and growth stocks are looking cheap, and BGUK is trading at a
discount to NAV that is significantly above its longer-term average. This
could be a recipe for a strong rerating when the outlook improves,
particularly now that there are signs that inflation is coming under control.

Full Research:

https://quoteddata.com/research/baillie-gifford-uk-growth-trust-recipe-rerating-qd/
(https://quoteddata.com/research/baillie-gifford-uk-growth-trust-recipe-rerating-qd/)
 

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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.
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