Baillie Gifford US - Baillie Gifford US Growth Trust Interim Results
21/01/2025 07:00
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RNS Number : 0272U Baillie Gifford US Growth Trust PLC 21 January 2025
Baillie Gifford US Growth Trust plc (USA)
Legal Entity Identifier: 213800UM1OUWXZPKE539
Regulated Information Classification: Half Yearly Financial Report
Tom Burnet, Chair of the Company commented:
"We are pleased to present the Company's Interim Financial Report for a highly successful period for the Company's growth strategy, delivering NAV returns to shareholders of 29.4% over the six month period, almost double the 15.3% total return of the S&P 500 Index in sterling terms.
Nevertheless, despite this extremely strong performance, Saba has sought to introduce self-serving and destructive proposals to remove the independent Board and try to assume control of the Company through placing two of its own nominees on the Board and will likely thereafter attempt to assume management of the Company. The Company and the strong growth potential shown in today's results is directly under threat in a vote where every vote will count. We therefore reiterate urging all shareholders to VOTE AGAINST Saba's proposals. If shareholders have not already done so, the next few days will likely be their last chance to vote ahead of the deadline - it's critical they do not miss the opportunity to save their investment from an uncertain and potentially destructive trajectory."
Results for six months to 30 November 2024
During the six months to 30 November 2024, the Company's share price and NAV
(after deducting borrowings at fair value) returned 40.9% and 29.4%
respectively. This compares with a total return of 15.3% 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 2024, the Company's share price and NAV (after deducting
borrowings at fair value) returned 169.7% and 186.1% respectively. This
compares with a total return of 190.5% for the S&P 500 Index* (in sterling
terms).
· The Company was created to capitalise on the extraordinary growth
potential of American entrepreneurship and ingenuity. We believe that the US
will retain a significant leadership position in global innovation in the
years to come that the Company's strategy is well placed to capitalise upon.
The macro outlook for these companies continues to improve as evidenced by our
recent strong performance.
· At the end of November, we held positions in 25 private companies which
comprised 33.5% of total assets.
· We made five new purchases over the last six months: SharkNinja,
Lineage, The Ensign Group, COSM Experience (private) and DraftKings. In
addition, we made three complete sales during the period: 10X Genomics,
Coursera and HashiCorp.
· The Board urges all shareholders to VOTE AGAINST Saba's self-serving
and destructive proposals in advance of the Company's forthcoming
requisitioned General Meeting. The deadline for receipt of votes is 12.00pm on
30 January but may be earlier through platforms. EVERY VOTE COUNTS AND EVERY
VOTE WILL MATTER.
( )
(*) Source: LSEG 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 plc 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 £843.0 million (before deduction of loans of
£39.3 million) as at 30 November 2024.
Baillie Gifford US Growth Trust plc is managed by Baillie Gifford & Co,
the Edinburgh based fund management group with approximately £226.4 billion
under management and advice in active equity and bond portfolios for clients
in the UK and throughout the world (as at 20 January 2025).
The following is the unaudited Interim Financial Report for the six months to
30 November 2024 which was approved by the Board on 20 January 2025.
REMINDER REGARDING THE UPCOMING GENERAL MEETING
DETAILS OF THE ACTIONS SHAREHOLDERS ARE RECOMMENDED TO TAKE BY NO LATER THAN 12 NOON ON 30 JANUARY 2025 ARE SET OUT IN THE CIRCULAR AVILABLE ON THE COMPANY WEBSITE. SHAREHOLDERS SHOULD BE AWARE THAT THE DEADLINES FOR VOTING THROUGH PLATFORMS MAY BE EARLIER THAN THE COMPANY'S PROXY VOTING DEADLINE.
Copies of the Circular and other documents relevant to the Requisitioned General Meeting will be made available to Shareholders today on the Company website at:
www.bailliegifford.com/USGrowthTrust-SabaDefence (https://urldefense.com/v3/__https:/www.bailliegifford.com/USGrowthTrust-SabaDefence__;!!H_q-o1I4kFo!lp_tnQqDaHsnKyCU5nbxVBBWrZeQB1_XzPzXtWHLFgWAzQVa-pGEF2_ZHggr9WSRsvgWt3Gs5ZjT4Cxi6V0Lb0raIR_i9wFffTTyoop4kM2cWQ$)
. In accordance with the FCA's UKLR 6.4.1R, the Circular has been submitted to the National Storage Mechanism and will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism (https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
.
EVERY VOTE WILL COUNT AND EACH VOTE IS IMPORTANT - SHAREHOLDERS SHOULD ENSURE THEY VOTE TO HAVE THEIR SAY IN THE FUTURE OF THEIR COMPANY.
Shareholders who need further help or assistance in voting their Shares should email USA@georgeson.com for more information.
Enquiries:
Company
Tom Burnet
c/o Burson Buchanan
USA@buchanancomms.co.uk (mailto:USA@buchanancomms.co.uk)
+44 (0)20 7466 5000
Panmure Liberum Limited
Alex Collins / Michael Janes
info@panmureliberum.com (mailto:info@panmureliberum.com)
+44 (0)20 3100 2000
Burson Buchanan
Henry Wilson / Helen Tarbet
USA@buchanancomms.co.uk (mailto:USA@buchanancomms.co.uk)
+44 (0)20 7466 5000
Company Secretary
Baillie Gifford & Co Limited, Company Secretary
enquiries@bailliegifford.com (mailto:enquiries@bailliegifford.com)
+44 (0)800 917 2113
Chair's statement
I am pleased to present the Company's Interim report for the six month period
ended 30 November 2024. This was a period of very strong performance for the
Company, with the share price returning 40.9%, over double the S&P 500
Index* (in sterling terms) total return of 15.3%. The improved business
outlook for the US, in particular the growth companies in which the Company
invests was reflected in the excellent net asset value (with borrowings at
fair value) ('NAV') performance, returning 29.4% over the six months. Over the
period from 23 March 2018 (launch date and first trade date), the Company's
NAV and share price, returned 186.1% and 169.7% respectively.
The Company's discount to NAV reduced, from 11.2% at the start of the period
to 3.3% at 30 November. The Company maintains an active approach to discount
management, engaging with shareholders and taking their feedback and views
into account. The Board has continued to buy back the Company's shares where
it sees an advantageous opportunity to do so at a level that would not alter
the risk profile of the Company. During the period 10,525,000 shares were
bought back at a total cost of £21,864,000. Subsequent to the period end, up
to 16 January 2025, the Company bought back a further 1,500,000 shares at a
total cost of £3,982,000.
Over the half year, macroeconomic conditions improved significantly for the
Company's US growth strategy. The interest rate tightening cycle is receding
in this market, significantly boosting the outlook for the Company's high
growth portfolio companies and contributing to the strong NAV performance
during the period.
There was one new private company purchase in the period, COSM Experience.
With no exits during the period, the Company's private positions therefore
increased to 25 from 24 and comprise 33.5% of total assets at the end of the
period, a small decrease from 34.1% in May. For our shareholders the Manager
provides extraordinary preferential access to some of the most coveted
registers in the US, typically inaccessible to most investors, at an
exceptionally reasonable ongoing charges level of 0.70%.
Despite this period of growth in shareholder value, post-period end, the
Company was requisitioned by Saba Capital Management ('Saba') on 18 December
with, the Board believes, entirely self-serving and value-destructive
proposals. The Company published an announcement and Circular on 6 January
2025 that comprehensively rebutted Saba's proposals, which, we believe, lack
crucial detail and if implemented could destroy the Board's independence,
radically alter the investment strategy of the Company and prove highly
disruptive to shareholder value. The Circular and information on the
Requisitioned General Meeting to be held on Monday, 3 February 2025 at 12.00pm
in the offices of Baillie Gifford & Co in Edinburgh (Calton Square, 1
Greenside Row, Edinburgh EH1 3AN) can be found on the Company's webpage
bgusgrowthtrust.com.
It is most unfortunate that, despite the strong performance outlined above,
and the highly positive outlook for your Company, the Board is deeply
concerned about the future of the Company and the potential value destruction
for long-term investors if the proposals put forward by Saba are voted
through. Saba is cynically counting on other shareholders not voting their
shares to give them the best chance of taking effective control of the
Company. Therefore, it is vital that shareholders vote on the Requisitioned
Resolutions no later than 12 noon on 30 January 2025 (platform voting
deadlines will be earlier) as the future of their investment depends on it. We
therefore unanimously recommend that shareholders vote against all the
resolutions. Every vote will count and each vote is important and we need your
support to ensure that the Company's differentiated and high performing
investment strategy can continue.
Tom Burnet
Chair
20 January 2025
(*) Source: LSEG 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.
Interim management report
Introduction
We strongly believe that Baillie Gifford US Growth in its current form remains
a highly attractive proposition for long-term shareholders. It represents a
straightforward and cost-effective way for regular investors to gain exposure
to some of America's most exceptional public and private growth companies.
Baillie Gifford's patient approach and preferential access to private
companies bring unique value to the Company and enable it to pursue its
valuable and differentiated investment mandate.
Performance
During the period from 1 June 2024 to 30 November 2024, the Company's share
price and NAV returned 40.9% and 29.4% respectively. This compares with a
total return of 15.3% 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 2024, the Company's share price and NAV returned 169.7% and 186.1%
respectively. This compares with a total return of 190.5% for the S&P 500
(in sterling terms).
Performance has now recovered to the point where the NAV is roughly in line
with the index since inception. It is pleasing that returns have improved
following a challenging and volatile post-COVID period. However, we can assure
you that we are not satisfied - our aim is to beat the market over the long
term.
The S&P 500's total return of 190.5% since inception of the strategy is
remarkably strong, equivalent to an annualised rate of over 17% - well above
its long-term average of around 9-10%. This performance was unusually
concentrated in a handful of mega-cap companies, dubbed the 'magnificent
seven'. Mid- and smaller companies have done less well. For example, over the
same period, the S&P MidCap 400 and the Russell 2000 delivered total
returns of 125.9% and 95.9%, translating to annualised rates of 12.9% and
10.6%, respectively (broadly in line with their long-term averages). Our
holdings cut across all three of these indices and the Company has achieved an
annualised total return of 17.0% on its NAV since inception.
Given their outsized contribution to recent returns, some have questioned
whether it's still worthwhile to look beyond the largest US mega-caps.
Historically, it's actually quite rare for a market to be driven so heavily by
its biggest companies. Indeed, if we stretch the timeframe back to the 1950s,
the ten largest stocks in the S&P 500 have underperformed an
equal-weighted index of the remaining 490 by around 2-3% per year.
We would caution against reading too much into the recent performance of these
mega-cap names. They are large today precisely because of their strong
historical success. As recently as ten years ago, NVIDIA and Tesla were
mid-cap companies with market capitalisations in the $10-30 billion range. The
investors who recognised their potential early on have been the most
handsomely rewarded. While we believe some of today's largest companies - the
"magnificent seven" - will remain dominant a decade from now, we also expect
new names to emerge from the mid-cap arena. These could become the true
outliers of the next decade.
In addition, we firmly believe that stocks should be evaluated on their own
merits, rather than treated as a monolithic group. The 'magnificent seven'
differ significantly in terms of maturity, business models and sources of
demand. Although we own four of them - Amazon, Meta, NVIDIA and Tesla - we do
not invest in Microsoft, Alphabet or Apple. While we have the utmost respect
for these companies, we simply do not believe they have a sufficiently high
likelihood of delivering the outsized returns we seek.
Contributors
Turning back to performance, the NAV strength we saw during the six-month
period was broad-based, with strong contributions from both public and private
names. SpaceX, our largest holding, was the largest positive contributor to
performance. The business has continued to execute well, with its satellite
internet business Starlink growing strongly and the development of its next
generation rocket Starship reaching important milestones, including a dramatic
demonstration in October of the company's ability to 'catch' this enormous
entity following re-entry.
Merchant software provider Shopify also positively contributed to performance.
The business has achieved the difficult feat of maintaining strong top line
growth whilst significantly improving its profitability. For example, in its
most recent period, revenues grew 26% whilst its free cash flow(†) margins
reached almost 20%. This achievement speaks to the strength of the Shopify
ecosystem, which has broadened out beyond the initial customer base of small
online US retailers to include larger retailers, international retailers,
offline retail and B2B.
Demand-side advertising platform The Trade Desk was another large positive
contributor to performance in the period. The company has a leading position
in the connected TV market and has benefitted as advertising dollars have
continued to migrate from legacy channels to new streaming services. We have
enormous respect for the company's founder Jeff Green, whose vision and
foresight have enabled Trade Desk to occupy an increasingly strategic position
within the advertising industry.
The biggest detractor to performance in the period was Moderna. The business
faced two major headwinds over the last couple of years. Firstly, the endemic
COVID vaccine market in the US turned out to be smaller than most expected.
Despite still being more deadly than flu, COVID vaccine volumes have been far
lower than those of the flu market. Secondly, the launch of Moderna's second
drug, a vaccine for another respiratory illness called RSV, has gone poorly.
Despite having a COVID vaccine on the market, RSV was Moderna's first 'normal'
drug launch. There were some execution missteps on the commercial side and we
have been engaging with the management team to understand how they plan to
rectify these issues for future launches. Recent execution issues aside, the
pipeline continues to progress well. We are especially excited about the
company's personalised cancer vaccine, which has the potential to be
transformative for cancer patients and Moderna's business.
Online furnishings retailer Wayfair also detracted from performance in the
period. This was primarily due to macro weakness. Industry demand remains
soggy due to a weak housing market. More positively, Wayfair has made good
progress in improving its profitability and is positioned well for whenever
the industry does turn.
Portfolio changes
There were five new buys (four public, one private) and three complete sales
in the period. The new buys were spread across a broad range of industries and
business models, reflecting the broad opportunity set that our strategy
addresses.
We took new holdings in:
• SharkNinja - a leader in the household appliance space selling products
under the 'Shark' and 'Ninja' brands. The company has consistently gained
share in this fragmented and competitive market by offering genuinely
innovative products to consumers at reasonable price points. The company's
expertise in supply chain combined with a unique level of customer-focus and a
hard driving culture provide a durable edge in a global market where it still
commands only a mid-single digit share.
• Lineage - the global leader in the temperature-controlled warehouse space.
It is the scale player in a fragmented industry which it is consolidating.
Lineage's scale economies and technology investments enable it to run acquired
assets more efficiently, generating attractive returns on the capital
employed. At the core there is a steady business providing a mission critical
service. The icing on the cake here is an experienced and skilled management
team deploying capital to drive growth.
• The Ensign Group - an operator of skilled nursing facilities across the
US. This is another consolidation story. The skilled nursing market is highly
fragmented. Ensign, as the leader, commands just a 2% share. The founder-led
management team are adept at acquiring underperforming facilities and
improving patient outcomes and financial performance. The business has a
strong culture and effective decentralised operating model, which enables high
levels of operational excellence at scale.
• COSM Experience (private) - a private operator of innovative and uniquely
immersive entertainment venues. We recommend searching for 'COSM' on YouTube
as you really must see the venue to understand just how special the experience
is. The creation of COSM required the bringing together of multiple domains of
expertise including hospitality operations, high-resolution LED display
technology and sports content capture and rights procurement. The venues have
received a tremendous reception, and the company plans to open many of them in
the US in the coming years.
• DraftKings - an online sports betting and gaming company in the US.
Betting has been one of the slowest industries to move online in the US,
mainly due to regulations, but the market is now starting to open up, state by
state. As one of two leading players in the market, DraftKings is well
positioned as this huge market finally starts to move online.
We sold 10X Genomics, a maker of tools for different types of biological
sample sequencing, due to growing concerns about the true scale of the
opportunity in 10X's core single cell sequencing market. We also sold Coursera
due to management's decision to de-emphasise the Degrees part of the business.
This was a core part of our forward-looking hypothesis, and it is difficult to
envision Coursera delivering the high returns we are looking for without this.
Finally, we sold HashiCorp following the news of IBM's bid for the company.
We also made significant reductions to our holding in NVIDIA through the
period. Our conviction in the disruptive potential of AI has not changed. If
anything, it has gotten stronger. However, we believe that NVIDIA's share
price is now discounting more of this large opportunity, and felt a smaller
holding was appropriate given the risk-reward.
Outlook
Given the strong run historic returns, it would be fair to question whether
the US market's tremendous run can continue. We remain optimistic. The US
market's performance has been underpinned by superior fundamental progress.
The earnings of US-listed businesses have grown much faster than those of
companies listed elsewhere. Furthermore, the US continues to produce more than
its fair share of exceptional growth companies. These businesses are powering
the global innovation economy. Indeed, just as the US led the way during the
rise of the internet, it is doing so again with generative AI. We think this
new technology is consequential and will usher in a period of change on a
scale that we haven't seen since the industrial revolution.
Change such as this creates opportunities for growth investors. This Company
aims to give investors exposure to the exceptional US growth companies which
are benefiting from and driving change. We are uniquely well placed to do this
given our ability to invest across both public and private markets. Many great
growth companies remain off limits for investors due to their private status.
This Company enables investors to cost effectively access exceptional private
companies like SpaceX and Databricks and participate in the upside that's
being unlocked by these unique and innovative businesses.
The Company was created to capitalise on the extraordinary growth potential of
American entrepreneurship and ingenuity. We believe that the US will retain a
significant leadership position in global innovation in the years to come that
the Company's strategy is well placed to capitalise upon. As we face this
critical juncture, we ask for your trust and backing, united by our shared
goal of achieving exceptional, long-term growth and value creation.
US Equity Growth Team
Baillie Gifford & Co
Managers and Secretaries
20 January 2025
(*) S&P 500 Index total return (in sterling terms). Source: LSEG and
relevant underlying index providers. See disclaimer at the end of this
announcement.
(†) Free cash flow is the cash a company generates after taking into
consideration cash outflows that support its operations and maintain its
capital assets.
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.
Baillie Gifford - valuing private companies
We aim to hold our private company investments at 'fair value', i.e. the
price that we would expect to be paid in an open-market transaction, taken to
mean a transaction between a willing seller and willing buyer and allowing
reasonable time to negotiate and address matters such as the transferability
of shares. 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 group at Baillie Gifford,
which takes advice from an independent third party (S&P Global). The
valuations group is independent from the investment team, as well as Baillie
Gifford's Private Companies Specialist team, with all voting members being
from different operational areas of the firm, and the investment team only
receives 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. During stable market conditions, and
assuming all else is equal, each investment would be valued two times in a six
month period. 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.
Beyond the regular cycle, the valuations team 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
investment team; or meaningful changes to the valuation of comparable public
companies. 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.
The valuations team also monitors relevant market indices on a weekly basis
and updates valuations in a manner consistent with our external valuer's
(S&P Global) most recent valuation report where appropriate. Continued
market volatility has meant that recent pricing has moved more frequently than
would have been the case with the quarterly valuations cycle.
The data below quantifies the revaluations carried out during the six months
to 30 November 2024, but does not reflect the ongoing monitoring of the
private investment portfolio that hasn't resulted in a change in valuation.
Baillie Gifford US Growth Trust(*)
Instruments (lines of stock reviewed) 57
Revaluations performed 146
Percentage of portfolio revalued 2 times 64.9%
Percentage of portfolio revalued 3 to 5 times 35.1%
Year to date, we have seen some recovery within the portfolio. The average
movement in company valuations and share prices in the six months to
30 November 2024 are shown below.
Average Average
movement in movement
private investee in public investee
company share price
valuation
Baillie Gifford US Growth Trust(*) 6.6% 10.8%
(*) Data reflecting period 1 June 2024 to 30 November 2024 to align with
the Company's reporting period end.
List of investments
as at 30 November 2024 (unaudited)
Name Business 2024 2024
Value % of total
£'000 assets(*)
Space Exploration Technologies Series J Preferred(§) Rocket and spacecraft company 46,951 5.6
Space Exploration Technologies Series N Preferred(§) Rocket and spacecraft company 26,953 3.2
Space Exploration Technologies Series K Preferred(§) Rocket and spacecraft company 10,701 1.3
Space Exploration Technologies Class A Common(§) Rocket and spacecraft company 5,561 0.7
Space Exploration Technologies Class C Common(§) Rocket and spacecraft company 1,716 0.2
91,882 11.0
The Trade Desk Advertising technology company 44,597 5.3
Shopify Class A Cloud-based commerce platform provider 39,907 4.7
Amazon Online retailer and cloud computing provider 39,488 4.7
NVIDIA Graphics chips 37,629 4.5
Stripe Series G Preferred(§) Online payment platform 14,823 1.8
Stripe Series I Preferred(§) Online payment platform 14,443 1.7
Stripe Class B Common(§) Online payment platform 3,044 0.4
Stripe Series H Preferred(§) Online payment platform 1,565 0.2
33,875 4.1
Netflix Subscription service for TV shows and movies 30,446 3.6
Meta Platforms Social networking website 29,329 3.5
Doordash Online local delivery 27,494 3.3
Cloudflare Cloud-based provider of network services 21,392 2.5
Brex Class B Common Corporate credit cards for start-ups 10,360 1.2
Brex Series D Preferred Corporate credit cards for start-ups 9,747 1.2
20,107 2.4
Tesla Electric cars, autonomous driving and solar energy 19,661 2.3
Duolingo Mobile learning platform 18,354 2.2
Affirm Class B(⁋) Consumer finance 10,880 1.3
Affirm(⁋) Consumer finance 7,135 0.8
18,015 2.1
Zipline International Series C Preferred(§) Drone-based medical delivery 8,925 1.1
Zipline International Series E Preferred(§) Drone-based medical delivery 5,057 0.6
Zipline International Series F Preferred(§) Drone-based medical delivery 821 0.1
14,803 1.8
Workday Enterprise information technology 13,838 1.7
Databricks Series H Preferred(§) Data and AI platform 13,271 1.6
Databricks Series I Preferred(§) Data and AI platform 495 0.1
13,766 1.7
Faire Wholesale Series F Preferred(§) Online wholesale marketplace 4,973 0.6
Faire Wholesale(§) Online wholesale marketplace 4,423 0.5
Faire Wholesale Series G Preferred(§) Online wholesale marketplace 3,687 0.4
13,083 1.5
Sweetgreen Salad fast food chain 11,746 1.4
Watsco Air conditioning, heating and refrigeration equipment distributor 11,614 1.4
Datadog IT monitoring and analytics platform 11,422 1.4
BillionToOne Series C Preferred(§) Molecular diagnostics technology platform 4,754 0.6
BillionToOne Series D Preferred(§) Molecular diagnostics technology platform 3,293 0.4
BillionToOne Series C-1 Preferred(§) Molecular diagnostics technology platform 3,023 0.3
11,070 1.3
CoStar Group Commercial property information provider 10,536 1.2
Discord Series I Preferred(§) Communication software 9,930 1.2
Roblox User generated content game company 9,669 1.1
Block Financial services merchant and mobile payment company 9,357 1.1
Aurora(⁋) Self-driving technology 5,084 0.6
Aurora Innovation Class B Common(⁋) Self-driving technology 3,593 0.4
8,677 1.0
Oddity(⁋) Online cosmetics and skincare company 8,613 1.0
Pinterest Image sharing and social media company 8,425 1.0
Alnylam Pharmaceuticals Therapeutic gene silencing 8,406 1.0
Epic Games(§) Video game platform and software developer 8,195 1.0
Insulet Medical device company 8,116 1.0
Samsara Connected operations cloud software company 8,047 1.0
Solugen Series C-1 Preferred(§) Combines enzymes and metal catalysts to make chemicals 5,339 0.6
Solugen Series D Preferred(§) Combines enzymes and metal catalysts to make chemicals 2,608 0.3
7,947 0.9
SharkNinja Home appliance company 7,632 0.9
Snyk Series F Preferred(§) Developer security software 4,729 0.6
Snyk Ordinary(§) Developer security software 2,822 0.3
7,551 0.9
Snowflake(⁋) Developer of a SaaS-based cloud data warehousing platform 6,964 0.8
Inspire Medical Systems Medical technology company 6,911 0.8
Moderna Therapeutic messenger RNA 6,675 0.8
Wayfair Online furniture and homeware retailer 6,369 0.8
Lemonade Insurance company 6,117 0.7
Chewy Online pet supplies retailer 6,047 0.7
Guardant Health Biotechnology company 5,733 0.7
Doximity Social network and digital workflow tools for medical professionals 5,637 0.7
Workrise Technologies Series E Preferred(§) Jobs marketplace for the energy sector 2,471 0.3
Workrise Technologies Series D Preferred(§) Jobs marketplace for the energy sector 2,371 0.3
Workrise Technologies Series D-1 Preferred(§) Jobs marketplace for the energy sector 527 0.1
5,369 0.7
Lyra Health Series E Preferred(§) Digital mental health platform for enterprises 4,038 0.5
Lyra Health Series F Preferred(§) Digital mental health platform for enterprises 1,270 0.2
5,308 0.7
Penumbra Medical tools to treat vascular diseases 5,235 0.6
Lineage Consolidator of temperature-controlled warehouses 5,202 0.6
Roku Online media player 5,032 0.6
Human Interest Series E Preferred(§) Retirement benefits platform 4,970 0.6
Human Interest Warrants for Series E/E1(§) Retirement benefits platform - -
4,970 0.6
Thumbtack Class A Common(§) Online directory service for local businesses 3,226 0.4
Thumbtack Series I Preferred(§) Online directory service for local businesses 1,397 0.2
Thumbtack Series A Preferred(§) Online directory service for local businesses 230 <0.1
Thumbtack Series C Preferred(§) Online directory service for local businesses 67 <0.1
Thumbtack Series B Preferred(§) Online directory service for local businesses 16 <0.1
4,936 0.6
PsiQuantum Series D Preferred(§) Silicon photonic quantum computing 4,770 0.6
Nuro Series C Preferred(§) Self-driving vehicles for local delivery 2,627 0.3
Nuro Series D Preferred(§) Self-driving vehicles for local delivery 2,014 0.2
4,641 0.5
Tanium Class B Common(§) Online security management 4,570 0.5
The Ensign Group Operator of skilled nursing facilities 4,485 0.5
Denali Therapeutics Clinical stage neurodegeneration company 4,208 0.5
COSM Experience(§) Immersive entertainment venues 3,934 0.5
Niantic Series C Preferred(§) Augmented reality games 3,659 0.4
YETI Holdings Consumer products for the outdoor and recreation markets 3,472 0.4
Away (JRSK) Convertible Promissory Note(§) Travel and lifestyle brand 1,090 0.1
Away (JRSK) Convertible Promissory Note 2021(§) Travel and lifestyle brand 1,090 0.1
Away (JRSK) Series D Preferred(§) Travel and lifestyle brand 1,027 0.1
Away (JRSK) Series Seed Preferred(§) Travel and lifestyle brand 159 <0.1
3,366 0.3
Airbnb Class B Common(⁋) Online market place for travel accommodation 3,293 0.4
DraftKings Online sports betting platform 2,938 0.3
Honor Technology Series D Preferred(§) Home care provider 1,790 0.2
Honor Technology Series E Preferred(§) Home care provider 774 0.1
Honor Technology Inc Subordinated Convertible Promissory Note(§) Home care provider 210 <0.1
2,774 0.3
Sprout Social Social media management firm 2,555 0.3
Rivian Automotive Developer security platform 2,242 0.3
Recursion Pharmaceuticals Drug discovery platform 1,723 0.2
Capsule Series 1-D Preferred(§) Digital pharmacy 426 <0.1
Capsule Series E Preferred(§) Digital pharmacy 263 <0.1
689 <0.1
Sana Biotechnology Gene editing technology 432 <0.1
Ginkgo Bioworks(⁋) Bioengineering company developing micro organisms that produce various 383 <0.1
proteins
Indigo Agriculture Class A Common(§) Agricultural technology company 130 <0.1
Blockstream Series B-1 Preferred(§) Bitcoin and digital asset infrastructure 53 <0.1
Abiomed CVR(§) Manufacturer of heart pumps - -
Total investments 835,441 99.1
Net liquid assets(*) 7,557 0.9
Total assets(*) 842,998 100.0
Listed Private Net liquid Total
equities company assets(*) assets(*)
% investments(†) % %
%
30 November 2024 65.6 33.5 0.9 100.0
31 May 2024 65.2 34.1 0.7 100.0
Notes
(*) See Glossary of terms and alternative performance measures at the end
of this announcement.
(⁋) Denotes listed investment previously held in portfolio as a
private company investment.
(§) Denotes private company investment.
(†) Includes holdings in ordinary shares, preference shares and
promissory notes.
Figures represent percentage of total assets.
Income statement (unaudited)
For the six months ended 30 November 2024 For the six months ended 30 November 2023 For the year ended 31 May 2024 (audited)
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 185,145 185,145 - 25,868 25,868 - 95,288 95,288
Currency (losses)/gains - (160) (160) - 697 697 - 878 878
Income 362 - 362 305 - 305 603 - 603
Investment management fee 3 (2,073) - (2,073) (1,707) - (1,707) (3,581) - (3,581)
Other administrative expenses (332) - (332) (341) - (341) (726) - (726)
Net return before finance costs and taxation (2,043) 184,985 182,942 (1,743) 26,565 24,822 (3,704) 96,166 92,462
Finance cost of borrowings (1,320) - (1,320) (1,144) - (1,144) (2,528) - (2,528)
Net return before taxation (3,363) 184,985 181,622 (2,887) 26,565 23,678 (6,232) 96,166 89,934
Tax on ordinary activities (32) - (32) (27) - (27) (50) - (50)
Net return after taxation (3,395) 184,985 181,590 (2,914) 26,565 23,651 (6,282) 96,166 89,884
Net return per ordinary share 4 (1.16p) 63.19p 62.03p (0.96p) 8.71p 7.75p (2.07p) 31.73p 29.66p
The accompanying notes below are an integral part of the Financial Statements.
The total column of this Statement represents the profit and loss account of
the Company. The supplementary revenue and capital columns are prepared under
guidance published by the Association of Investment Companies.
All revenue and capital items in this Statement derive from continuing
operations.
A Statement of Comprehensive Income is not required as the Company does not
have any other comprehensive income and the net return after taxation is both
the profit and comprehensive income for the period.
Balance sheet (unaudited)
Notes At 30 November At 31 May
2024 2024
£'000 (audited)
£'000
Fixed assets
Investments held at fair value through profit or loss 6 835,441 678,234
Current assets
Debtors 760 605
Cash at bank 8,456 6,620
9,216 7,225
Creditors
Amounts falling due within one year 7 (40,997) (41,526)
Net current liabilities (31,781) (34,301)
Net assets 803,660 643,933
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 410,669 247,547
Revenue reserve (29,851) (26,456)
Shareholders' funds 803,660 643,933
Net asset value per ordinary share 280.31p 216.65p
(after deducting borrowings at book value)
Ordinary shares in issue 8 286,703,700 297,228,700
The accompanying notes below are an integral part of the Financial Statements.
Statement of changes in equity (unaudited)
For the six months to 30 November 2024
Notes Share Share Special Capital Revenue Shareholders'
capital premium distributable reserve(*) reserve funds
£'000 account reserve £'000 £'000 £'000
£'000 £'000
Shareholders' funds at 1 June 2024 3,073 250,827 168,942 247,547 (26,456) 643,933
Ordinary shares bought back into treasury 8 - - - (21,864) - (21,864)
Net return after taxation - - - 184,986 (3,395) 181,591
Shareholders' funds at 30 November 2024 3,073 250,827 168,942 410,669 (29,851) 803,660
For the six months to 30 November 2023
Notes Share Share Special Capital Revenue Shareholders'
capital premium distributable reserve(*) reserve funds
£'000 account reserve £'000 £'000 £'000
£'000 £'000
Shareholders' funds at 1 June 2023 3,073 250,827 168,942 165,931 (20,174) 568,599
Ordinary shares bought back into treasury 8 - - - (319) - (319)
Net return after taxation - - - 26,565 (2,914) 23,651
Shareholders' funds at 30 November 2023 3,073 250,827 168,942 192,177 (23,088) 591,931
(*) The capital reserve as at 30 November 2024 includes investment
holding gains of £320,506,000 (30 November 2023 - gains of £70,038,000).
The accompanying notes below are an integral part of the Financial Statements.
Cash flow statement (unaudited)
For the six months to 30 November
2024 2023
£'000 £'000
Cash flows from operating activities
Net return before taxation 181,622 23,678
Adjustments to reconcile company profit before tax to net cash flow
from operating activities
Net (gains) on investments (185,145) (25,868)
Currency losses/(gains) 160 (697)
Finance costs of borrowings 1,320 1,144
Other capital movements
Overseas withholding tax incurred (32) (27)
Changes in debtors and creditors 49 40
Cash from operations(*) (2,026) (1,730)
Finance costs paid (1,337) (865)
Net cash outflow from operating activities (3,363) (2,595)
Cash flows from investing activities
Acquisitions of investments (33,330) (31,575)
Disposals of investments 61,268 36,157
Net cash inflow from investing activities 27,938 4,582
Cash flows from financing activities
Ordinary shares bought back into treasury and stamp duty thereon (22,646) (319)
Bank loans drawn down - -
Bank loans repaid - -
Net cash outflow from financing activities (22,646) (319)
Increase in cash and cash equivalents 1,929 1,668
Exchange movements (93) (149)
Cash and cash equivalents at start of period 6,620 3,440
Cash and cash equivalents at 30 November 8,456 4,959
(*) Cash from operations includes dividends received in the period of
£195,000 (30 November 2023 - £182,000) and interest received of £99,000
(30 November 2023 - interest paid of £24,000).
The accompanying notes below are an integral part of the Financial Statements.
Notes to the Financial Statements (unaudited)
1 Basis of accounting
The condensed Financial Statements for the six months to
30 November 2024 comprise the statements 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 and updated in 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 2024 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 2024.
Going concern
Having considered the nature of the Company's principal
risks and uncertainties, as set out below, together with its current position,
investment objective and policy, assets and liabilities, projected income and
expenditure and 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 due to 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 2024, the Company had a net current liability of
£32 million primarily as a result of the US$25 million three year revolving
credit facility with ING Bank N.V., London Branch, and the US$25 million three
year revolving credit facility with The Royal Bank of Scotland International
Limited, which are due to mature on 26 July 2026 and 18 October 2026
respectively but which are rolled forward on a three monthly basis. 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 Financial information
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 2024 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 Investment manager
The Company has appointed Baillie Gifford & Co Limited,
a wholly owned subsidiary of Baillie Gifford & Co, as its Alternative
Investment Fund Manager and Company Secretaries. 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.
The annual management fee is 0.70% on the first
£100 million of net assets, 0.55% on the next £900 million of net assets
and 0.50% on the remaining net assets.
4 Net return per ordinary share
For the six months to For the six months to For the year ended 31 May 2024 (audited)
30 November 2024 30 November 2023
£'000 p £'000 p £'000 p
Revenue return after taxation (3,395) (1.16) (2,914) (0.96) (6,282) (2.07)
Capital return after taxation 184,985 63.19 26,565 8.71 96,166 31.73
Net return 181,590 62.03 23,651 7.75 89,884 29.66
Weighted average number of ordinary shares in issue 292,726,651 305,143,317 303,075,968
Net return per ordinary share is based on the above totals
of revenue and capital and the weighted average number of ordinary shares in
issue during each period. There are no dilutive or potentially dilutive shares
in issue.
5 Dividends
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 Fixed assets - investments
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).
The Company's investments are financial assets held at fair
value through profit or loss. In accordance with FRS 102, an analysis of the
Company's financial asset investments based on the fair value hierarchy
described above is shown below.
As at 30 November 2024 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed equities 554,063 - - 554,063
Unlisted ordinary shares - - 44,047 44,047
Unlisted preference shares(*) - - 234,941 234,941
Unlisted convertible promissory notes - - 2,390 2,390
Unlisted CVR(†) - - - -
Total financial asset investments 554,063 - 281,378 835,441
As at 31 May 2024 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed equities 447,044 - - 447,044
Unlisted ordinary shares - - 38,928 38,928
Unlisted preference shares(*) - - 189,986 189,986
Unlisted convertible promissory notes - - 2,276 2,276
Unlisted CVR(†) - - - -
Total financial asset investments 447,044 - 231,190 678,234
(*) 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 Abiomed CVR (see 'Contingent value rights' below for details)
had a fair value of nil at 30 November 2024 and 31 May 2024.
The valuation techniques used by the Company are explained
in the accounting policies on pages 95 and 96 of the Annual Report and
Financial Statements for the year ended 31 May 2024. 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.
Private company investments are valued at fair value by the
Directors following a detailed review and appropriate challenge of the
valuations proposed by the Managers. The Managers' private company valuation
policy applies methodologies consistent with the International Private Equity
and Venture Capital Valuation guidelines 2022 ('IPEV'). These methodologies
can be categorised as follows: (a) market approach (multiples, industry
valuation benchmarks and available market prices); (b) income approach
(discounted cash flows); and (c) replacement cost approach (net assets). The
techniques applied are predominantly market‑based approaches.
During the period, no investments (31 May 2024 -
£5,725,000) were transferred from Level 3 to Level 1 on becoming listed.
7 Bank loans
The Company has a US$25,000,000 three year revolving credit
facility with ING Bank N.V., London Branch, which expires on 26 July 2026 and
a US$25,000,000 three year revolving credit facility with The Royal Bank of
Scotland International Limited which expires on 18 October 2026. At
30 November 2024, creditors falling due within one year include US$50,000,000
(sterling value £39,338,000) drawn down under the two three year revolving
credit facilities. At 30 November 2024, there were no creditors falling due
after more than one year. At 31 May 2024, creditors falling due within one
year included US$50,000,000 (sterling value £39,271,000) drawn under the two
three-year revolving credit facilities.
The fair value of borrowings as at 30 November 2024 was
£39,338,000 (31 May 2024 - £39,271,000). All short-term floating rate
borrowings are stated at book cost which is considered to be equal to their
fair value given the facilities are revolving credit facilities.
8 Share capital
30 November 30 November 31 May 31 May
2024 2024 2024 2024
Number £'000 Number £'000
Allotted, called up and fully paid ordinary shares of 1p each 286,703,700 2,867 297,228,700 2,972
Treasury shares of 1p each 20,656,300 206 10,131,300 101
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 2024, the Company issued
no ordinary shares (in the year to 31 May 2024, the Company issued no
shares).
Over the period from 30 November 2024 to 16 January 2025
the Company issued no 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 27 September 2024. 10,525,000 shares with a nominal
value of £105,250 were bought back at a total cost of £21,864,000 and held
in treasury in the six months to 30 November 2024 (year to 31 May 2024 -
7,925,000 shares with a nominal value of £79,250 were bought back at a total
cost of £14,550,000 and held in treasury). At 30 November 2024 the Company
had authority to buy back 39,172,687 ordinary shares.
Over the period from 30 November 2024 to 16 January 2025
the Company bought back a further 1,500,000 shares at a total cost of
£3,982,000 and held in treasury.
9 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.
10 Principal Risks and Uncertainties
The principal risks facing the Company are financial risk,
private company investment 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 48 and 52 of the
Company's Annual Report and Financial Statements for the year ended 31 May
2024 which is available on the Company's website: bgusgrowthtrust.com
(https://www.bailliegifford.com/en/uk/individual-investors/funds/baillie-gifford-us-growth-trust/)
(‡).
The principal risks and uncertainties have not changed
since the date of that report.
11. The Interim Financial Report will be available
at bgusgrowthtrust.com
(https://www.bailliegifford.com/en/uk/individual-investors/funds/baillie-gifford-us-growth-trust/)
(‡) and will be posted to shareholders on or around 29 January 2025.
(‡) 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.
Responsibility statement
We confirm that to the best of our knowledge:
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
Chair
20 January 2025
Further shareholder information
How to invest
Baillie Gifford US Growth Trust plc shares are traded on the London Stock
Exchange. They can be bought through a stockbroker or by asking a professional
adviser to do so. If you are interested in investing directly in Baillie
Gifford US Growth Trust plc, you can do so online. There are a number of
companies offering real time online dealing services. Find out more by
visiting the investment trust pages at bailliegifford.com
(https://www.bailliegifford.com/en/uk/institutional-investor/) .
Client relations team contact details
You can contact the Baillie Gifford Client Relations Team by telephone (your
call may be recorded for training or monitoring purposes), email or post.
See contact details in the 'Company information' section on page 28 of the
Interim Financial Report to 30 November 2024.
Share register enquiries
Computershare Investor Services PLC maintains the share register on behalf of
the Company. In the event of queries regarding shares registered in your own
name, please contact the Registrar on 0370 707 1711.
Automatic Exchange of Information
In order to fulfil its obligations under UK tax legislation relating to the
automatic exchange of information, Baillie Gifford US Growth Trust plc is
required to collect and report certain information about certain shareholders.
The legislation requires investment trust companies to provide personal
information to HMRC on certain investors who purchase shares in investment
trusts. Accordingly, Baillie Gifford US Growth Trust plc will have to provide
information annually to the local tax authority on the tax residencies of a
number of non-UK based certificated shareholders and corporate entities.
New shareholders, excluding those whose shares are held in CREST, who come on
to the share register will be sent a certification form for the purposes of
collecting this information.
For further information, please see HMRC's Quick Guide: Automatic Exchange of
Information - information for account holders
gov.uk/government/publications/exchange-of-information-account-holders
(https://www.gov.uk/government/publications/exchange-of-information-account-holders)
.
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Glossary of terms and alternative performance measures ('APM')
An alternative performance measure ('APM') 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
This is the Company's definition of adjusted total assets, being 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 value
Borrowings are valued at nominal par value (book value). Borrowings are valued
at adjusted net issue proceeds. The value of the borrowings at book is set out
in note 7 of the financial statements above.
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 of the financial statements above and a
reconciliation to net asset value with borrowings at book value is provided
below.
Net asset value (borrowings at fair value) (APM)
30 November 2024 31 May 2024
Net asset value per ordinary share (borrowings at book value) 280.31p 216.65p
Shareholders' funds (borrowings at book value) £803,660,000 £643,933,000
Add: book value of borrowings £39,338,000 £39,271,000
Less: fair value of borrowings (£39,338,000) (£39,271,000)
Shareholders' funds (borrowings at fair value) £803,660,000 £643,933,000
Number of shares in issue 286,703,700 297,228,700
Net asset value per ordinary share (borrowings at fair value) 280.31p 216.65p
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 2024 31 May 2024
Net asset value per ordinary share (after deducting borrowings at fair value) (a) 280.31p 216.65p
Share price (b) 271.00p 192.40p
Discount (borrowings at fair value) (b - a) ÷ a 3.3% 11.2%
30 November 2024 31 May 2024
Net asset value per ordinary share (after deducting borrowing at book value) (a) 280.31p 216.65p
Share price (b) 271.00p 192.40p
Discount (borrowings at book value) (b - a) ÷ a 3.3% 11.2%
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 six month, three year, five 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.
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 2024 31 May 2024
Borrowings (at book value) £39,338,000 £39,271,000
Less: cash and cash equivalents (£8,456,000) (£6,620,000)
Less: sales for subsequent settlement - -
Add: purchases for subsequent settlement - -
Adjusted borrowings (a) £30,882,000 £32,651,000
Shareholders' funds (b) £803,660,000 £643,933,000
Gearing: (a) as a percentage of (b) 4% 5%
Gross gearing is the Company's borrowings expressed as a percentage of
shareholders' funds.
30 November 2024 31 May 2024
Borrowings (at book value) (a) £39,338,000 £39,271,000
Shareholders' funds (b) £803,660,000 £643,933,000
Gross gearing: (a) as a percentage of (b) 5% 6%
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, it 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.
Treasury shares
The Company has the authority to make market purchases of its ordinary shares
for retention as treasury shares for future reissue, resale, transfer, or for
cancellation. Treasury shares do not receive distributions and the Company is
not entitled to exercise the voting rights attaching to them.
Private (unlisted) company
A private (unlisted) company means a company whose shares are not available to
the general public for trading and not listed on the stock exchange.
Contingent value rights
'CVR' after an instrument name indicates a security, usually arising from a
corporate action such as a takeover or merger, which represents a right to
receive potential future value, should the continuing company achieve certain
milestones. The Abiomed CVR arose on Johnson & Johnson's takeover of
Abiomed. The milestones relate to the performance of the technologies acquired
through the takeover. Any value attributed to this holding reflects both the
amount of the future value potentially receivable and the probability of the
milestones being met within the time frames in the CVR agreement.
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
(https://www.bailliegifford.com/en/uk/individual-investors/funds/baillie-gifford-us-growth-trust/)
(‡)
(‡) 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.
END
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