REG - Baillie Gifford US - Baillie Gifford US Growth Trust plc Annual Results
12/08/2025 07:00
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RNS Number : 8778U Baillie Gifford US Growth Trust PLC 12 August 2025
Baillie Gifford US Growth Trust plc ('USA')
Legal Entity Identifier: 213800UM1OUWXZPKE539
Regulated Information Classification: Notice of Results
Results for the year ended 31 May 2025
During the financial year to 31 May 2025, the Company's share price and net
asset value ('NAV' after deducting borrowings at fair value) returned 24.5%
and 22.1% respectively. This compares with a total return of 7.2% for the
S&P 500 Index(*) (in sterling terms).
· As at 31 May 2025, we held 27 private company investments which
collectively compromised 34.9% of total assets.
· Turnover in the portfolio over the financial year was 9.1% which is
consistent with our five year plus time horizon.
· Three new private company investments were made: Rippling (a
workforce management system), Runway AI (a generative AI video platform) and
Cosm (an immersive entertainment company).
· Five listed holdings were added to the portfolio: DraftKings,
Globant, Lineage, SharkNinja and The Ensign Group.
· 10X Genomics, Coursera, HashiCorp and Sprout Social were sold during
the period.
Tom Burnet, Chair
'The year ahead presents significant opportunities for our investment
strategy. Technology continues to reshape entire industries, creating
opportunities for the visionary companies in our portfolio. Our shareholders'
patient capital enables us to participate in this transformation, and I am
optimistic about what we can achieve together and the resulting returns for
shareholders.'
Gary Robinson & Kirsty Gibson, Portfolio Managers
'As long-term investors, we anchor our approach for Baillie Gifford US Growth
Trust on patience through volatility, conviction-led investing, and relentless
focus on growth. Identifying tomorrow's exceptional companies can be
challenging, and success rarely unfolds smoothly. Our focus is therefore on
identifying resilient, adaptable companies which are underpinned by structural
growth drivers and whose trajectories are largely price-indifferent. Whilst
periods of extreme volatility - such as that witnessed over the past five
years - can appear daunting, they can also be periods in which truly
foundational companies demonstrate their value. We believe that our investment
team has the resource, access and expertise to identify these companies and
hold them for long term growth.'
Baillie Gifford US Growth Trust seeks to invest predominantly in listed and
private 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 £780.9 million (before deduction of loans of
£37.1 million) as at 31 May 2025.
You can find up to date performance information about Baillie Gifford US
Growth on the Company website at bgusgrowthtrust.com
(http://www.bgusgrowthtrust.com/) (‡).
Baillie Gifford US Growth Trust is managed by Baillie Gifford & Co, the
Edinburgh based fund management group with approximately £210.2 billion under
management and advice in active equity and bond portfolios for clients in the
UK and throughout the world (as at 6 August 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.
(‡) Neither the contents of the Company website nor the
contents of any website accessible from hyperlinks on the Company website (or
any other website) is incorporated into, or forms part of, this announcement.
Past performance is not a guide to future performance. The value of an
investment and any income from it is not guaranteed and may go down as well as
up 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.
12 August 2025
For further information please contact:
Naomi Cherry, Baillie Gifford & Co
Tel: 0131 275 2000
Jonathan Atkins, Four Communications
Tel: 020 3920 0555
The following text is extracted from the Annual Report and Financial
Statements of the Company for the year ended 31 May 2025 which was approved
by the Board on 11 August 2025. All page numbers below refer to the Annual
Report and Financial Statements which will be made available on the Company's
website.
Chair's statement
Performance
I am pleased to report a strong period of performance for the financial year
ending 31 May 2025. Your Company has delivered excellent returns, with the
share price and net asset value total returns reaching 24.5% and 22.1%
respectively - significantly outperforming the S&P 500 Index's 7.2% total
return in sterling terms(*).
Over the five years to 31 May 2025 the share price and net asset value
returned 26.7% and 45.4% respectively. The comparative index returned 92.1%*
(total return and in sterling terms) over the same period. As flagged in the
Managers' review on pages 10 to 14 our five year performance is not where we
hoped it would be. Following a thorough and methodical review the Manager's
implemented a number of portfolio construction enhancements and guide rails to
improve how they build and maintain a high-conviction, high-growth portfolio.
Since we launched on 23 March 2018, we have delivered share price and net
asset value total returns of 138.3% and 170.0% respectively, noting our net
asset value total return has kept pace with the S&P 500 Index's 170.1%
total return (in sterling terms)(*). This reflects the bottom-up, long-term
approach that Gary Robinson and Kirsty Gibson bring to managing your
portfolio, and I encourage you to read their detailed insights in the
Managers' review.
Share issuance and buy-backs
I am encouraged by the gradual shift in sentiment we have witnessed this year.
While we began the period trading at an 11.2% discount, this narrowed to 9.4%
by year-end.
We have remained active stewards of your capital, buying back 16 million
shares during the year for £35.5 million - representing 5.4% of our issued
share capital. The Board discusses the Company's liquidity policy and other
discount management options regularly, as we understand how important this is
to you as shareholders.
Looking ahead, we have the flexibility to issue up to 29.5 million new shares
or buy back 33.7 million shares under authorities granted at last year's
Annual General Meeting. We will be seeking to renew both authorities at our
upcoming October Annual General Meeting.
Gearing
The Company has two loan facilities in place: (i) a US$25 million three-year
revolving credit facility from ING Bank N.V., London Branch that expires on 31
July 2026; and (ii) a US$25 million three‑year revolving credit facility
from The Royal Bank of Scotland International Limited that expires on
18 October 2026. The facilities are available to be used to fund purchases of
securities as and when suitable opportunities arise. As at 31 May 2025, the
facilities had been drawn down in full (31 May 2024 - US$50 million).
Gearing fell from 5% to 4% over the course of the year.
Earnings and dividend
The Company's priority is to generate capital growth over the long term by
identifying exceptional American growth businesses and owning them for long
enough that the advantages of their business models and cultural strengths
become the dominant drivers of their valuations. The Company therefore has no
dividend target and does not seek to provide shareholders with any level of
dividend. The net revenue return per share for the year to 31 May 2025 was a
negative 2.54p (period to 31 May 2024, a negative 2.07p). As the revenue
account is again running at a deficit, the Board has decided that no final
dividend be paid. Should the level of underlying income increase in future
years, the Board will seek to distribute the minimum permissible to maintain
investment trust status by way of a final dividend.
Private company (unlisted) investments
As at the Company's year end, the portfolio weighting in private company
(unlisted) investments stood at 34.9% of total assets, invested in
twenty-seven companies (2024 - 34.1% invested in twenty-four companies). There
were three new purchases in the year, Cosm, Rippling and Runway AI. There is
commentary on the new and existing holdings in the Managers' review and Review
of investments on pages 10 to 14 and 28 to 32. Your portfolio managers remain
alert to further special and high potential opportunities not widely
accessible through public markets.
Requisitioned general meeting
As shareholders will be aware, the Company was requisitioned on 18 December
2024. In response to the requisition, the Company published a circular on 6
January 2025 and held a general meeting on 3 February 2025. The Board would
like to thank shareholders for their support during this period, in
particular, for their participation in the shareholder vote at the general
meeting.
Following the general meeting, the Board engaged with a significant number of shareholders to understand their views on the Company including those of our largest shareholder Saba Capital Management L.P. ('Saba'). This proved to be a most helpful exercise. The Board was pleased to hear the overwhelming shareholder support for the Company's long-term objective of investing in the most exceptional growth companies America has to offer. Feedback from shareholders continues to inform decisions the Board makes on a number of topics including strategy, marketing, capital allocation and liquidity. Shareholders continue to back the Manager in its aim to build Baillie Gifford US Growth Trust into a world‑class savings vehicle for shareholders, delivering above average long-term returns.
Board composition
During the period, Ms Palmer resigned from the Board to pursue other
opportunities. The Board and I would like to thank her for her significant
contribution to the Company. The Board continues to carefully consider
succession planning and we are actively reviewing our composition.
Environmental, Social and Governance (ESG)
The Company's Managers believe that sustainability is inextricably linked to
being a long-term investor, and their thoughts on this topic are set out in
more detail on page 16. The Managers pursuit of long-term growth opportunities
typically involves investment in entrepreneurial, disruptive and
technology-driven businesses. These companies are often capital-light with a
low carbon footprint.
Annual General Meeting
I would welcome the chance to meet you in person at our Annual General Meeting on Thursday, 2 October 2025, at 12.00pm in Edinburgh, at the offices of Baillie Gifford & Co. After the formal business of the meeting the Managers will be presenting their latest insights and there will be the chance to meet with and question the Board. If you cannot attend, please do send us your questions - we will read and answer every one. Questions can be submitted in advance by email to enquiries@bailliegifford.com or by calling 0800 917 2113 (Baillie Gifford may record your call). Irrespective of whether you are attending, we would encourage you to submit your proxy votes in advance - we value the views of all shareholders, regardless of the size of their shareholding, and every vote counts. Details on how to cast your votes, depending on whether you hold your shares directly or indirectly (for example, through an investor platform), are set out on page 118.
Outlook
The year ahead presents significant opportunities for our investment strategy.
Technology continues to reshape entire industries, creating opportunities for
the visionary companies in our portfolio. Our shareholders' patient capital
enables us to participate in this transformation, and I am optimistic about
what we can achieve together and the resulting returns for shareholders.
Thank you for your continued trust and support.
Tom Burnet
Chairman
11 August 2025
(*) Source: LSEG and relevant underlying index providers. See disclaimer
on page 125.
For a definition of terms see Glossary of terms and alternative performance
measures on pages 129 to 132.
Past performance is not a guide to future performance.
Managers' Review
During the period from 23 March 2018, launch date and first trade date, to 31
May 2025, the Company's share price and net asset value (after deducting
borrowings at fair value) returned 138.3% and 170.0%, respectively. This
compares with a total return of 170.1% for the S&P 500 Index(*) (in
sterling terms).
The Company's one-year share price and net asset value (after deducting
borrowings at fair value) total returns were 24.5% and 22.1%, respectively.
This compares with a total return of 7.2% for the S&P 500 Index(*) (in
sterling terms).
The Company's five-year relative performance remains weak, due to the base
effect created by the extreme outperformance during the COVID period. We are
disappointed with this but we are satisfied to have matched a period of strong
growth from the index since inception.
Successful high growth investing requires tolerance for volatility. However
the volatility that we delivered during and after the pandemic exceeded our
expectations. We have taken steps to reduce the probability of such extreme
outcomes occurring again. For example, we now automatically retest the upside
of our listed stocks once they cross our 2.5x return threshold, regardless of
the time frame over which this return was generated. We're also more closely
monitoring the overall shape of the portfolio to ensure an appropriate balance
of growth styles, maturities, and structural growth drivers across our listed
holdings. Due to the illiquid nature of the private company investments, it is
difficult to apply the same guide rails, but, when making new investments in
private companies, the team has regard to the overall balance in the
portfolio.
Cultural architects and master builders
"It is not the beauty of a building you should look at; it's the construction
of the foundation that will stand the test of time."
- David Allan Coe
Since Baillie Gifford US Growth Trust launched in March 2018, we have endured
a global pandemic, war-sparked supply shocks, and, most recently, the
re-election of an uncommonly unpredictable US president. These
once-in-a-generation events can tempt investors to cling to yesterday's
certainties, the recognisable structures. However, if the past few years have
taught us anything, what matters is not the structure you can see but the
foundation beneath. When the ground keeps shifting, the best architects focus
on the foundations before building above.
As long-term investors, we anchor our approach on patience through volatility,
conviction-led investing, and relentless focus on growth. While identifying
tomorrow's exceptional companies is challenging, we know that holding onto
them through inevitable setbacks is even harder. History confirms that even
the greatest investments - NVIDIA, Amazon, Netflix - have required unwavering
patience through multiple drawdowns exceeding 30%. Success rarely
unfolds smoothly.
The same lesson governs our handling of today's headlines. President Trump's
second-term trade volleys and tariff threats move markets week by week, yet
predicting his next tweet is not our edge. Instead, we must double down on the
things we believe matter, the things we believe we have an edge in analysing,
and the forces whose trajectories remain largely price-indifferent. Like the
structural drivers of lasting growth - declining battery costs underpinning
electric vehicles, falling inference costs fuelling artificial intelligence
('AI'), and unprecedented biological insights reshaping healthcare, to name a
few. Or the resilience and adaptability of the companies we invest in.
Resilience to navigate the short term - the macroeconomic environment, the
changes in administration, and the ebbs and flows of geopolitics. Adaptability
to navigate the long run - embracing paradigm-shifting technologies and
traversing changing cultural trends.
Yet, tailwinds and resilience alone are insufficient. The true differentiator
underpinning adaptability and sustained long-term growth is a company's
culture. Ask any structural engineer: steel reinforcement makes concrete
resilient and permits daring shapes. Inside companies, culture plays the same
role, supporting companies in building into their opportunities.
We can categorise culture into two complementary forms:
• Foundational culture - The deeply embedded vision set out
by a company's CEO or founder, guiding strategy and defining its long-term
purpose.
• Created culture - How the foundational principles manifest
daily - guiding team behaviour, employee incentives and operational
responsiveness.
Dee Hock, founder of Visa, elegantly captures this concept: "Understanding
events and influencing the future requires mastering four ways of looking at
things: as they were, as they are, as they might become, and as they ought to
be." Foundational culture embodies how things ought to be, while created
culture bridges today's reality to that aspirational state.
While foundational culture is slow to change, created culture adapts and
evolves to help a business unlock its long-term opportunity. That said, it is
important to recognise that a management team cannot directly control how its
foundational culture manifests. What it can do is put in place the right
scaffolding to ensure the core tenants of what they believe to be important
are able to permeate throughout the organisation.
Consequently, CEOs and founders are builders. Builders, with a clear vision of
what they are creating and a strong cultural foundation that provides the
scaffolding for everything they build above. They are willing to build breadth
and height and are not afraid to build out the occasional extension, even when
it is deeply unpopular. And they will, when necessary, dismantle parts of what
they have built, either to unlock something new or to improve the health of
the overall design.
Below, we profile several Company holdings whose builder mindset has enabled
them to overcome volatility and uncertainty and focus on the opportunity for
fresh storeys of growth.
Andy Florance founded CoStar in 1987 around a simple insight: real-estate data
trapped in silos wasted enormous value. CoStar positioned itself as a
facilitator within a very fragmented industry. Over decades, CoStar has
steadily transformed an isolated property data asset into a vibrant,
interconnected real estate marketplace.
The pivotal acquisition of Apartments.com in 2014 exemplifies CoStar's
adaptive approach. Acquired with just $85 million of annual revenues, CoStar
has transformed the rental apartment marketplace into a >$1 billion revenue
business, surpassing even CoStar's original data unit. Subsequent investments
in complementary verticals like LoopNet (commercial properties), STR
(hospitality analytics), and recently Homes.com (residential property
listings) illustrate its methodical, long-term approach to building a
comprehensive industry landscape.
Florance's disciplined vision - a commitment to foundational strengths while
seizing new vertical opportunities - has created a flexible yet resilient
architecture. CoStar is reinvesting aggressively as competitors struggle,
laying deeper foundations to seize future growth opportunities. It is
repeating its successful playbook: integrate data, add liquidity, and monetise
the network effects.
Under founder Tobi Lütke, Shopify has always prioritised merchant success -
putting the merchant first is its foundational cultural anchor. Starting in
2006 as a basic online store creation platform, Shopify incrementally added
merchant-centric capabilities: Shopify Payments (2013), Shopify Capital
(2016), and the Shopify Fulfilment Network (2019).
Yet foundational culture also means strategic adaptability. In 2023, Shopify
boldly exited its logistics ambitions. The rationale was cultural and
strategic: logistics limited Shopify's ultimate potential. Instead, Lütke
embraced artificial intelligence, seeing it as broadly transformative.
Shopify's AI-driven "Sidekick" assistant has already significantly reduced
merchant complexity. However, the ultimate ambition - "declarative software",
allowing merchants to command complex tasks via simple instructions - could
make Shopify indispensable, dramatically expanding its market potential.
Building a business takes time; like any secure structure strong foundations
are necessary. With the right foundations - if a company's culture is
effective - companies can exhibit resilience and adaptability, navigate the
short-run storms, and continue to build. A clear culture creates alignment,
enabling companies to embrace those moments of transition and thrive in an
ever-evolving environment.
This feels like a transition moment. We have had companies steadying the ship
post COVID, the emergence of generative AI and the re-election of Donald
Trump. But with fundamentals on a more even keel, we are seeing many companies
reorient to focus on growth. This is the sort of environment where builders
really come into their own.
DoorDash, with its mission to "grow and empower local economies", is stepping
beyond its traditional restaurant delivery model and looking to rewire local
commerce end-to-end. The company is pushing into high-frequency,
non-restaurant baskets that deepen driver-density economics. The company's
logistics know-how stays constant; the addressable market multiplies.
Stripe's acquisition of Bridge in February 2025 folds stablecoin rails into
its payments stack, slashing costs for cross-border transfers - especially
from the global north to the global south. The move extends Stripe's
foundational purpose ("grow the GDP of the internet") into a parallel,
programmable money system.
Duolingo's cultural north star is language access for all. With Duolingo Max,
subscribers practise free-form dialogue with Lily, an AI persona offering
personalised feedback - an experience edging ever closer to a human tutor at
dramatically lower cost. The addressable learner pool - and lifetime value -
expands with each improvement.
SpaceX's reusable Falcon boosters disrupted launch economics; the Starship
programme aims to supersize that feat. Eight test flights through 2024 helped
to validate rapid iteration within the company and moves SpaceX close to
commercialising heavier payloads at lower marginal costs. Starship's scale
unlocks bulk satellite deployment (Starlink) and, eventually, human
interplanetary travel.
All these companies are building different structures - some are like
cityscapes, others skyscrapers. But what unites them is that they are all
builders, harnessing their strong cultural foundations and vision to build
world-changing businesses.
Portfolio changes
In the year to the end of May, turnover was 9.1%. This reflects the speed and
breadth of change we have witnessed since the emergence of generative AI, and
high competition for capital in the portfolio. There were eight new buys (five
public, three private) and four complete sales in the period.
Over the last twelve months, we made three additional private investments:
Rippling, Runway AI, and Cosm. Rippling offers a workforce management system
in the US and has ambitions to become the system of record for all employee
data. Its deep automation and modular design help fast-growing companies
streamline operations across functions. Runway is a generative AI video
platform built to support creators throughout the entire production process,
from storyboarding to post-production. Its cutting-edge models and intuitive
design power fast, high-quality video creation for users ranging from
individuals to studios like Lionsgate. Runway is emerging as a full-stack
platform for the future of media. Cosm is an immersive entertainment company
creating 360° "shared reality" experiences through massive LED domes in
cities like LA and Dallas. Drawing on deep expertise in planetarium tech, it
partners with the NBA, UFC, and others to reimagine live events. Cosm is
pioneering the future of group-based immersive media.
The net result was that, at the end of May, we held positions in 27 unlisted
securities, which collectively comprised 34.9% of total assets.
There have been some changes to the top ten over the last year, with
Cloudflare, DoorDash, and Duolingo all moving into its ranks. Duolingo and
DoorDash have become large holdings on account of strong share price
performance. While we have taken some profits, our conviction in their
long-run growth opportunities has cemented their position. For Cloudflare, we
have been actively adding to our position. We believe the utility of
Cloudflare's edge computing platform in an AI world, specifically AI inference
workloads, has increased, so we added to the holding to reflect this.
Significant reductions in NVIDIA, Tesla, and The Trade Desk have also impacted
the constituents of the top ten. Our conviction in the disruptive potential of
AI has not changed. If anything, it has gotten stronger. But we believe that
NVIDIA's share price is discounting more of this large opportunity and felt a
smaller holding was appropriate given the risk-reward. The re-election of
Donald Trump and the aptly named "Trump Bump", which followed, saw some
dramatic share price movements. Tesla's market value rose more than $500
billion in the month following Trump's re-election. After revisiting the
upside case, we concluded that the holding size no longer reflected our level
of conviction. While the opportunity for Tesla in full self-driving,
stationary storage, and Optimus robots is exciting, these opportunities remain
early and the 2.5x case from a $1.5 trillion market cap requires greater
emphasis on them. We have much admiration for The Trade Desk as a business
but, after a review and two separate meetings with CEO and founder Jeff Green,
we decided to reduce the holding on valuation grounds.
Moderna and Brex both dropped out of the top ten due to under-performance. As
mentioned in the interim report, Moderna's business suffered in the first half
of the reporting period due to a weaker COVID vaccine market in the US and
weaker than expected uptake of its second drug, a vaccine for another
respiratory illness called RSV. The under‑performance continued in the
second half of the period as these issues were compounded by fears over the
incoming administration's attitude towards vaccines. Brex, like many of our
holdings, over-invested during COVID, and has spent the last couple of years
re-aligning its cost base. This led to a period of slower growth at the
company. However we are pleased to report that growth has begun to
re-accelerate.
In terms of the listed holdings, our new purchases are across industries.
DraftKings is a leading online sports betting company in the US, poised to
benefit as the sector moves online state by state. With regulatory barriers
easing, it is one of two dominant players in a market just beginning to unlock
its potential. Lineage is the global leader in temperature-controlled
warehousing, consolidating a fragmented industry through scale and technology.
It delivers strong returns by running acquired assets more efficiently,
underpinned by a resilient, mission-critical business and a proven management
team driving growth. SharkNinja is gaining share in a competitive market by
delivering innovative, high-quality appliances at accessible prices. With
strong execution and global potential, it still holds only a modest share,
leaving room for significant growth. Globant is an IT services provider. The
company has established a strong reputation for its expertise in software
integration and IT resource optimisation. While the headlines focus on AI
native companies or those embracing AI tools, a significantly larger pool of
businesses don't know where to start with AI. Our working hypothesis is that
Globant can provide that helping hand by harnessing its design and engineering
skillsets. The Ensign Group operates skilled nursing facilities across the US,
leading consolidation in a highly fragmented market. Despite being the leader,
it holds just a 2% share. Its founder-led team consistently improves both care
and financial outcomes at acquired sites, enabled by a strong culture and a
decentralised model that drives operational excellence at scale.
Various complete sales funded these purchases. There was no notable pattern to
them. We decide to move on from our holding in Sprout Social. The company
recently suggested there will be no reacceleration of growth in 2025. Perhaps
management is being conservative, but this is well below our expectations
given the potential for this business, and with the competition for capital
within the portfolio we decided to move on. The sales of 10X Genomics and
Coursera were driven by investment cases that did not play out as expected.
The purchase of HashiCorp by IBM forced our hand on its sale.
Outlook
Periods of volatility and disruption - such as those witnessed over the past
five years - can appear daunting, even disorientating. Yet, it's precisely
during such transitions that truly foundational companies demonstrate their
value. Structural upheavals act as a test, revealing the resilience and
adaptability inherent in strong foundational cultures. While volatility shakes
out weaker enterprises, it simultaneously creates a fertile ground for robust
companies prepared to adapt and thrive.
AI is reshaping industries and driving tangible changes across the economy,
with growing evidence underscoring the materiality of this transformation.
Companies across various sectors are increasingly highlighting significant
productivity gains attributable to AI. Notably, industries with already robust
free cash flow margins-such as software, finance, and professional services -
are emerging as early and rapid adopters of AI tools. These sectors stand to
benefit substantially, particularly as AI adoption has the potential to
meaningfully reduce payroll expenses and streamline operations.
We recognise there is not a single optimal way to capture AI's potential in
the Company's portfolio. Instead, we see opportunities across different layers
of the AI stack. Amazon is strategically positioned through AWS's vast cloud
infrastructure and its growing chip capabilities. Cloudflare offers an
intriguing edge inference play, bringing AI computation closer to end-users
and enhancing real-time processing. Data-centric firms like Databricks and
Snowflake are pivotal, providing essential data management and preparation
solutions that underpin effective AI implementation across enterprises.
Additionally, we're enthusiastic about application-layer innovators such as
Runway AI, which leverages existing AI infrastructure to deliver cutting-edge
generative AI tools and creative workflow enhancements.
Sceptics will ask, why not simply own an S&P 500 tracker and get exposure
to the US broadly and some of its biggest names. While passive investing can
play an important role in many people's portfolios, indexing gives cheap
exposure to incumbents; it rarely grants meaningful stakes in the
transformational growth companies Baillie Gifford US Growth Trust looks to
invest in. It cannot provide access to the most exciting private businesses
like SpaceX, Databricks, and Stripe. The Company's closed-ended structure lets
us support such companies across listing boundaries, compounding value that a
passive vehicle must wait to access - often at a far higher price.
Generative AI's emergence and President Trump's tariff whiplash can make
people feel uncomfortable and foster fear, but it is in these moments that
builders thrive. Strong foundational cultures provide the scaffolding;
adaptable created cultures scramble the workers to pour fresh concrete when
cracks appear.
Because, in the end, America's greatness is not gifted by any administration;
it is built - brick by stubborn brick - by founders and teams who see the city
not as it is, but as it ought to be. Our job is to support the crane arm so
that it can keep moving, regardless of who is in power.
That is the American dream made real.
US Equity Growth Team
Baillie Gifford & Co
11 August 2025
(*) Source: LSEG and relevant underlying index providers. See disclaimer
on page 125.
For a definition of terms see Glossary of terms and alternative performance
measures on pages 129 to 132.
Past performance is not a guide to future performance.
Purpose and investment principles
Baillie Gifford US Growth aims to deliver above average long‑term returns
for shareholders by keeping fees and costs low and harnessing the long‑term
growth potential of companies.
Our purpose
Baillie Gifford US Growth aims to find, own and support the most exceptional
public and private growth companies in America.
We believe that our investment approach of long termism, embracing asymmetry,
and global perspective gives us an advantage in uncovering exceptional growth
companies. Our opportunity set is wide given the Company's structure means we
can invest in exceptional growth companies regardless of their listed status.
Exceptional growth companies address huge market opportunities at an early
stage, possess a sustainable competitive edge and enjoy powerful and effective
cultures that enable them to realise their long‑term potential. We believe
such companies contribute to productive innovation in society and, over the
full course of time, these companies will develop deep competitive moats and
generate abnormal profits and unusually high shareholder returns.
We endeavour to generate returns for our shareholders by helping in the
creation and improvement of such useful enterprises. If we are successful in
identifying these companies, we believe that we can multiply our shareholders'
wealth over the long term.
Our investment principles
Managing shareholders' money is a huge privilege and not one we take lightly.
It is a relationship, not a transaction. Relationships can only be built on a
foundation of trust and understanding. With this in mind, we seek to lay out
the fundamental principles by which we will manage your money and the
framework for how we make decisions so that you, our shareholders, can decide
whether it aligns with your investment philosophy.
• We believe the fundamental measure of our success will be
the value we create for our shareholders over the long term. It is only over
periods of five years or more that the characteristics we look for in
businesses become apparent. Our turnover has been low, consistent with our
time horizon. We ask that our shareholders measure our performance over
similar periods.
• Short‑term volatility is an inevitable feature of the
market, and we will not manage the portfolio to reduce volatility at the
expense of long‑term gain. Many managers are risk‑averse and fear loss
more than they value gain. Therefore, they accept smaller, more predictable
risks rather than the larger and less predictable ones. We believe that this
is harmful to long‑term returns, and we will not shy away from making
investments that are perceived to be risky if we believe that the potential
payoffs are worthwhile. This means that our performance may be lumpy over the
short term.
• We believe, and academic work has shown, that long‑term
equity returns are dominated by a small handful of exceptional growth
companies that deliver outsized returns. Most stocks do not matter for
long‑term equity returns, and investors will be poorly served by owning
them. In our search for exceptional growth companies, we will make mistakes.
But the asymmetry inherent in equity markets, where we can make far more in a
company if we are right than lose if we are wrong, tells us that the costliest
of mistakes is excessive risk aversion.
• We do not believe that the index is the right starting
point for portfolio construction. The index allocates capital based on size.
We believe that capital should be allocated based on marginal return and the
ability to grow at those rates of return. Big companies are not immune to
disruption. We do not manage the portfolio to an active share target, but we
expect the active share of the Company to be high.
• We are largely indifferent to a company's private or
public status. We will conduct diligent analysis and allocate capital to where
the highest risk-adjusted returns are likely to be.
• We believe our duty is to maximise the long‑term wealth
of our shareholders, and that placing emphasis on short‑term performance
serves our shareholders poorly.
• We will endeavour to operate in the most efficient, honest
and economical way possible. That means keeping our ongoing costs including
management fees low. We recognise that even modest amounts, when allowed to
compound over long periods of time, add up to staggering sums, and we do not
wish to dilute the compounding of returns with the compounding of costs.
With this foundation, we aim to build Baillie Gifford US Growth Trust into a
world‑class savings vehicle. We are grateful that you have joined us on this
journey, and we look forward to a long and hopefully prosperous relationship
with you.
Baillie Gifford's stewardship principles
Baillie Gifford's overarching ethos is that we are 'Actual' investors. That
means we seek to invest for the long term. Our role as an engaged owner is
core to our mission to be effective stewards for our clients. As an active
manager, we invest in companies at different stages of their evolution across
many industries and geographies, and focus on their unique circumstances and
opportunities. Our approach favours a small number of simple principles rather
than overly prescriptive policies. This helps shape our interactions with
holdings and ensures our investment teams have the freedom and retain the
responsibility to act in clients' best interests.
Long‑term value creation
We believe that companies that are run for the long term are more likely to be
better investments over our clients' time horizons. We encourage our holdings
to be ambitious, focusing on long‑term value creation and capital deployment
for growth. We know events will not always run according to plan. In these
instances we expect management to act deliberately and to provide appropriate
transparency. We think helping management to resist short‑term demands from
shareholders often protects returns. We regard it as our responsibility to
encourage holdings away from destructive financial engineering towards
activities that create genuine value over the long run. Our value will often
be in supporting management when others do not.
Alignment in vision and practice
Alignment is at the heart of our stewardship approach. We seek the fair and
equitable treatment of all shareholders alongside the interests of management.
While assessing alignment with management often comes down to intangible
factors and an understanding built over time, we look for clear evidence of
alignment in everything from capital allocation decisions in moments of stress
to the details of executive remuneration plans and committed share ownership.
We expect companies to deepen alignment with us, rather than weaken it, where
the opportunity presents itself.
Governance fit for purpose
Corporate governance is a combination of structures and behaviours; a careful
balance between systems, processes and people. Good governance is the
essential foundation for long‑term company success. We firmly believe that
there is no single governance model that delivers the best long‑term
outcomes. We therefore strive to push back against one‑dimensional global
governance principles in favour of a deep understanding of each company we
invest in. We look, very simply, for structures, people and processes which we
think can maximise the likelihood of long‑term success. We expect to trust
the boards and management teams of the companies we select, but demand
accountability if that trust is broken.
Sustainable business practices
A company's ability to grow and generate value for our clients relies on a
network of interdependencies between the company and the economy, society and
environment in which it operates. We expect holdings to consider how their
actions impact and rely on these relationships. We believe long‑term success
depends on maintaining a 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. Material factors should be addressed at the board level as
appropriate.
Review of investments
A review of the Company's ten largest investments and additions to the private
company investments as at 31 May 2025.
Top ten holdings
Space Exploration Technologies(§)
An aerospace and space transportation company that manufactures advanced
rockets, like the Falcon 9, and satellites, like Starlink, which provides
global broadband services. We are excited by its pursuit of reduced launch
costs, thus opening avenues for growth, such as tourism and transportation. A
clear segment leader, it looks positioned to capture an attractive share of
the growing space industry, while Starlink may become the first globally
relevant utility.
Stripe(§)
Stripe is a payments technology company. Founded in 2010 by Irish brothers
Patrick and John Collison, the company is in the process of developing a
platform for sending money seamlessly and compliantly between any two internet
connected nodes in the world. The company processes massive volumes of
payments from a broad customer base, ranging from US start-ups to global
giants. Stripe's long-term ambition is to make entrepreneurship easier and
thus significantly increase the amount of business conducted online.
Netflix
Netflix has the potential to become the first truly global content and
distribution media brand. Its base of more than 230 million subscribers allows
it to invest in building a strong customer proposition through its library of
exclusive and desirable content. This in turn attracts more subscribers,
creating a powerful flywheel that distances itself from other likely
competitors. The shift from linear TV to on demand streaming is still in the
early stages, and Netflix is a prime beneficiary
Cloudflare
Cloudflare is a global cloud platform that provides security, performance, and
reliability services to millions of websites and internet applications.
Founded in 2009, the company began as a web security provider and has since
evolved into a broad edge computing platform. Cloudflare's network spans over
300 cities worldwide, putting 95% of the global internet population within 50
milliseconds of its infrastructure. Cloudflare is uniquely positioned to play
a foundational role in the AI infrastructure stack. Its global, low-latency
network enables efficient inference at the edge, while its developer platform,
Workers, supports AI-powered applications with minimal overhead. This
positions Cloudflare as a key enabler of distributed AI - a fast-growing
opportunity as real-time use cases proliferate.
Amazon
In retail, Amazon competes on price, selection and convenience and is improving all three as it gets bigger. Amazon's AWS (Amazon Web Services) division is in a clear position of leadership in what could turn out to be one of the largest and most important market shifts of our time. Both opportunities are outputs of what is perhaps most distinctive of all about Amazon - its culture. The company is run with a uniquely long-term perspective. It is willing to be bold and scale its experiments (and confront failures) as it grows. These cultural distinctions allow Amazon to possess the rare and attractive combination of scale and immaturity.
Meta Platforms
Meta Platforms is the owner of Facebook, WhatsApp and Instagram. We think that
AI could be a significant growth driver. In the nearer term, it should
facilitate revenue growth as AI systems allow adverts to be targeted more
effectively despite Apple's privacy restrictions. Facebook may be unique in
having the engineering resources to take advantage of this opportunity. The
company addressed its cost base last year, leaving it well-placed to take on
this challenge. In the longer term, AI should facilitate the monetisation of
WhatsApp, a platform that enjoys widespread usage but has struggled to find a
revenue model.
Shopify
Shopify provides software tools which allow merchants to easily set up and
manage their businesses across an increasingly complex and fragmented retail
landscape. Shopify's software helps to make merchants more efficient by
automating large swathes of their operations (e.g. marketing, inventory
management, payments, order processing, shipping) thus allowing them to focus
on product market fit. The company maintains a rapid pace of innovation and is
run by an impressive founder who has built a distinctive merchant focused
culture.
DoorDash
DoorDash is the leading on-demand delivery platform in the US, connecting
consumers with local restaurants, grocery stores, and retailers across more
than 25 countries. It holds a dominant market share in US restaurant delivery
and is rapidly expanding into categories like convenience, grocery, and
retail. The company operates a three-sided marketplace of consumers,
merchants, and Dashers (its delivery drivers), and been effective at balancing
the needs of all three, while significantly improving its unit economics. As
consumers increasingly expect convenience, DoorDash is positioning itself as
the infrastructure for local commerce - not just food delivery - with
significant room to grow both in the US and internationally.
Duolingo
Duolingo is the world's most popular language learning platform, combining
gamification, AI, and bite-sized lessons to make education accessible and
engaging. Its freemium model - offering free access with optional premium
subscriptions - has proven highly effective, driving both massive reach and
recurring revenue. In recent years, Duolingo has expanded beyond language
learning with products like Maths, Music and Chess. At the core of Duolingo's
success is a relentless focus on product quality and user engagement.
Duolingo's ability to blend rigorous learning science with addictive product
design positions it uniquely at the intersection of education and
entertainment - a category it is helping to define.
NVIDIA
NVIDIA designs and manufactures graphics processing units for the gaming and
professional markets. They are highly specialised semiconductor chips that can
be used for a range of applications, from gaming to artificial intelligence.
After years of investment into both hardware and software, NVIDIA is well
positioned to benefit from the rise of generative AI, as its chips form the
infrastructure layer to power large language models. NVIDIA is using its scale
to further reinvest in its opportunity; designing new hardware to make data
centres more powerful and energy efficient, while building software to help
companies adopt AI more quickly.
Private company new buys
Rippling (People Center)(§)
Rippling is an all-in-one workforce management platform that sits at the
intersection of HR, IT, and finance. Founded by Parker Conrad, Rippling aims
to solve a critical pain point for businesses: the fragmentation of employee
systems across departments and geographies. From a single platform, companies
can manage payroll, benefits, device management, app access, time tracking,
and more - all tied to a central employee record. The company operates in a
massive addressable market, historically served by a mix of legacy providers
and narrowly focused software as a service ('SaaS') tools. It has grown
rapidly through word-of-mouth and product-led adoption, with strong retention
and expansion within its customer base. Its combination of product depth,
operational efficiency, and founder ambition makes it a standout in the next
generation of enterprise software platforms.
Runway AI(§)
Runway is a generative AI video platform pioneering the use of machine
learning in creative workflows. Founded in 2018, the company aims to become
the go-to creative co-pilot for video professionals, supporting the entire
production process - from ideation and storyboarding to editing and
post-production. Its platform combines intuitive design with cutting-edge AI
models, enabling users to generate, edit, and enhance video content with
unprecedented speed and flexibility. The company has grown rapidly with
limited marketing spend, driven by the viral appeal of its technology and its
tight integration into creators' workflows. Unlike many AI companies building
horizontal tools, Runway is pursuing a vertical strategy tailored specifically
to video, positioning itself as the full-stack solution for the next
generation of content production. As demand for high-quality video explodes
across industries and platforms, Runway's ability to automate and enhance the
creative process - without sacrificing artistic control - positions it
strongly in a new wave of media creation.
Cosm Experience(§)
Cosm is a pioneering immersive entertainment and technology company redefining
how audiences experience live events through its innovative "Shared Reality"
platform. Founded in 2020, Cosm has rapidly expanded its presence with
flagship venues in Los Angeles and Dallas. These venues feature massive
87-foot diameter, 12K+ resolution LED domes that envelop audiences in
360-degree visuals, delivering an unparalleled sense of presence for live
sports, concerts, and cinematic events. With its blend of cutting-edge
technology and strategic partnerships, Cosm is poised to become a leader in
the evolving landscape of immersive media experiences.
(§) Denotes private company investment.
Portfolio executive summary
Key contributors to and detractors from performance - year to 31 May 2025
Contributors Contribution to Absolute
absolute performance
%(*) performance
%(†)
Space Exploration Technologies(§) 4.4 67.0
Duolingo 2.6 156.3
Netflix 2.6 77.6
Cloudflare 2.5 131.9
Shopify 2.5 70.9
Detractors Contribution to Absolute
absolute performance
%(*) performance
%(†)
Moderna (3.2) (82.4)
Brex(§) (1.4) (55.1)
Pinterest (0.7) (29.2)
Lyra Health(§) (0.6) (51.4)
Sweetgreen (0.6) (58.8)
(*) Contribution to absolute performance (in sterling terms) has been
calculated to illustrate how an individual stock has contributed to the
overall return. It is influenced by both share price performance and the
weighting of the stock in the portfolio, taking account of any purchases or
sales over the period.
(†) Absolute performance (in sterling terms) has been calculated on a
total return basis over the period 1 June 2024 to 31 May 2025.
For the definition of total return see Glossary of terms and alternative
performance measures on pages 129 to 132. Table ordered by contribution to
performance.
(§) Denotes private company investment.
Source: Revolution.
Distribution of total assets(*) by sector 2025
Industry 2025 2024
% %
1 Information technology 29.1 29.9
2 Consumer discretionary 20.1 19.0
3 Industrials 15.5 12.5
4 Communication services 15.3 15.6
5 Healthcare 10.1 12.1
6 Financials 4.6 6.2
7 Real estate 1.9 1.6
8 Consumer staples 1.6 1.0
9 Materials 0.8 1.4
10 Net liquid assets 1.0 0.7
Source: Baillie Gifford/LSEG and relevant underlying index providers. See
disclaimer on page 125.
(*) For a definition of terms see Glossary of terms and alternative
performance measures on pages 129 to 132.
Baillie Gifford - valuing private companies
We 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'. Baillie Gifford's 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 with all voting
members being from different operational areas of the firm, and the portfolio
managers only receive final notifications once they have been applied.
Baillie Gifford revalues 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 four times in a twelve‑month period. The valuations are also reviewed
twice per year by the Board, which receives copies of Baillie Gifford's
proposed valuations as well as the latest valuation reports from its external
valuer. The valuations are subject to the scrutiny of the Company's external
auditor 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
portfolio managers; 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.
The valuations group also monitors relevant market indices on a weekly basis
and updates valuations in a manner consistent with Baillie Gifford's external
valuer's (S&P Global) most recent valuation report where appropriate.
Periods of market volatility during the period have meant that valuations
continue to be reviewed much more frequently, in some instances resulting in
further valuation movements. Despite periods of volatility, market sentiment
more broadly has improved since the half-year date, which has resulted in a
number of the portfolio companies undertake capital raises.
The data below quantifies the revaluations carried out during the twelve
months to 31 May 2025, but does not reflect the ongoing monitoring of the
private investment portfolio that has not resulted in a change in valuation.
Baillie Gifford US Growth Trust(*)
Instruments held 58
Number of revaluations 371
Percentage of portfolio valued up to 4 times 14.3%
Percentage of portfolio valued 4+ times 85.7%
(*) Data reflecting period 1 June 2024 to 31 May 2025 to align with
the Company's reporting period end.
The simple average movement in company valuations and share prices across the
portfolio in the twelve months to 31 May 2025 are shown below. The valuations
of our private company holdings have increased in the period on average. Where
there has been a contraction in the valuation of a portfolio company, share
prices have decreased less than headline valuations because Baillie Gifford
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.
Average movement in company valuation Average movement in share price
Baillie Gifford US Growth Trust(*) 4.8% 10.7%
(*) Data reflecting period 1 June 2024 to 31 May 2025 to align with
the Company's reporting period end.
Private companies summary
Historical snapshot
Since our first investment in private companies in 2018, Baillie Gifford US
Growth has deployed £255.4m of capital in this area.
Portfolio activity - year to 31 May 2025
£12.9m of new capital was deployed in private companies during the year.
New buys
Cosm Experience Rippling (People Center)
Runway AI
Niantic's game business was acquired by Scopely during the period. Baillie
Gifford US Growth elected to participate in the associated spin-off, receiving
a combination of cash and shares in a new company Niantic Spatial (see pages
43 to 46 for a complete list of the Company's investments).
Concentration
At 31 May 2025 we held 27 private companies which equated to 34.9% of total
assets(*).
· The five largest private companies accounted for 62.5% of the private
company exposure.
· The ten largest private companies accounted for 79.4% of the private
company exposure.
Private exposure 31 May 31 May
2025 2024
% %
1 Space Exploration Technologies 11.2 7.6
2 Stripe 5.3 4.6
3 BillionToOne 2.0 1.4
4 Faire Wholesale 1.7 1.9
5 Databricks 1.6 1.8
6 Other 13.1 16.8
Size
Our private company exposure tends to be weighted to the upper end of the
maturity curve, focused on late stage private companies which are scaling up
and becoming profitable.
Cap Total equity % of total Number of
value (USD) assets(*) holdings
Micro <300m 0.3 4
Small 300m-2bn 3.4 7
Medium 2bn-10bn 11.5 11
Large >10bn 19.7 5
34.9 27
(*) Total assets less current liabilities, before deduction of
borrowings. See Glossary of terms and alternative performance measures on
pages 129 to 132.
List of investments
as at 31 May 2025
Name Business 2025 % of 2024
Value total Value
£'000 assets (*) £'000
Space Exploration Technologies Series J Preferred(§) Rocket and spacecraft company 44,253 5.7 26,502
Space Exploration Technologies Series N Preferred(§) Rocket and spacecraft company 25,404 3.3 15,214
Space Exploration Technologies Series K Preferred(§) Rocket and spacecraft company 10,085 1.3 6,040
Space Exploration Technologies Class A Common(§) Rocket and spacecraft company 5,242 0.7 3,139
Space Exploration Technologies Class C Common(§) Rocket and spacecraft company 1,617 0.2 969
86,601 11.2 51,864
Stripe Series G Preferred(§) Online payment platform 18,157 2.3 13,984
Stripe Series I Preferred(§) Online payment platform 17,693 2.3 13,625
Stripe Class B Common(§) Online payment platform 3,729 0.5 2,871
Stripe Series H Preferred(§) Online payment platform 1,649 0.2 1,527
41,228 5.3 32,007
Netflix Subscription service for TV shows and movies 36,574 4.7 23,441
Cloudflare Cloud-based provider of network services 36,087 4.6 13,357
Amazon Online retailer and cloud computing provider 35,674 4.6 35,710
Meta Platforms Social networking website 35,580 4.6 25,369
Shopify Class A Cloud-based commerce platform provider 27,948 3.6 21,747
DoorDash Online local delivery 26,506 3.4 17,845
Duolingo Mobile learning platform 25,104 3.2 10,743
NVIDIA Graphics chips 19,318 2.5 44,715
BillionToOne Series C Preferred(§) Molecular diagnostics technology platform 6,699 0.9 3,984
BillionToOne Series D Preferred(§) Molecular diagnostics technology platform 4,622 0.6 2,749
BillionToOne Series C-1 Preferred(§) Molecular diagnostics technology platform 4,259 0.5 2,533
15,580 2.0 9,266
Roblox User generated content game company 15,338 2.0 6,900
The Trade Desk Advertising technology company 14,653 1.9 34,288
Faire Wholesale Series F Preferred(§) Online wholesale marketplace 4,934 0.6 4,972
Faire Wholesale(§) Online wholesale marketplace 4,661 0.6 4,429
Faire Wholesale Series G Preferred(§) Online wholesale marketplace 3,608 0.5 3,684
13,203 1.7 13,085
Tesla Electric cars, autonomous driving and solar energy 13,002 1.7 17,239
Databricks Series H Preferred(§) Data and AI platform 12,508 1.6 11,647
Databricks Series I Preferred(§) Data and AI platform 467 <0.1 435
12,975 1.6 12,082
Oddity(‡) Online cosmetics and skincare company 12,674 1.6 7,072
Zipline International Series C Preferred(§) Drone-based medical delivery 7,607 1.0 8,910
Zipline International Series E Preferred(§) Drone-based medical delivery 4,311 0.6 5,049
Zipline International Series F Preferred(§) Drone-based medical delivery 723 0.1 820
12,641 1.7 14,779
Affirm Class B(‡) Consumer finance 7,606 1.0 4,543
Affirm(‡) Consumer finance 4,714 0.6 3,477
12,320 1.6 8,020
CoStar Group Commercial property information provider 11,961 1.5 10,776
Snowflake(‡) Developer of a SaaS-based cloud data warehousing platform 10,556 1.4 5,771
Samsara Connected operations cloud software company 10,297 1.3 5,430
Alnylam Pharmaceuticals Therapeutic gene silencing 9,306 1.2 5,248
Brex Class B Common(§) Corporate credit cards for start-ups 3,983 0.5 10,648
Brex Series D Preferred(§) Corporate credit cards for start-ups 5,294 0.7 10,018
9,277 1.2 20,666
DraftKings Online sports betting platform 9,147 1.2 -
Insulet Medical device company 9,086 1.2 5,736
Discord Series I Preferred(§) Communication software 8,734 1.1 9,448
Watsco Air conditioning, heating and refrigeration equipment distributor 8,528 1.1 10,611
Datadog IT monitoring and analytics platform 8,106 1.0 8,768
Pinterest Image sharing and social media company 7,948 1.0 12,273
Epic Games(§) Video game platform and software developer 7,704 1.0 6,741
Chewy Online pet supplies retailer 7,520 1.0 4,084
Penumbra Medical tools to treat vascular diseases 7,482 1.0 3,178
Aurora(‡) Self-driving technology 4,218 0.5 1,668
Aurora Innovation Class B Common(‡) Self-driving technology 3,157 0.4 1,317
7,375 0.9 2,985
Workday Enterprise information technology 7,305 0.9 12,450
The Ensign Group Operator of skilled nursing facilities 6,683 0.9 -
Nuro Series C Preferred(§) Self-driving vehicles for local delivery 3,672 0.5 2,509
Nuro Series D Preferred(§) Self-driving vehicles for local delivery 3,006 0.4 1,939
6,678 0.9 4,448
SharkNinja Home appliance company 6,409 0.8 -
Solugen Series C-1 Preferred(§) Combines enzymes and metal catalysts to make chemicals 4,237 0.5 5,821
Solugen Series D Preferred(§) Combines enzymes and metal catalysts to make chemicals 2,072 0.3 2,827
6,309 0.8 8,648
Guardant Health Biotechnology Company 6,015 0.8 4,645
Block Financial Services merchant and mobile payment company 5,986 0.7 6,127
PsiQuantum Series D Preferred(§) Silicon photonic quantum computing 5,815 0.7 3,872
Snyk Series F Preferred(§) Developer security software 3,522 0.5 5,055
Snyk Ordinary Shares(§) Developer security software 1,968 0.2 3,016
5,490 0.7 8,071
Wayfair Online furniture and homeware retailer 5,203 0.7 6,552
Doximity Social network and digital workflow tools for medical professionals 5,080 0.7 3,136
Rippling (People Center) Workforce management platform 4,944 0.6 -
Series G Preferred(§)
Roku Online media player 4,846 0.6 4,451
Workrise Technologies Series E Preferred(§) Jobs marketplace for the energy sector 2,202 0.3 1,975
Workrise Technologies Series D Preferred(§) Jobs marketplace for the energy sector 2,111 0.3 1,895
Workrise Technologies Series D-1 Preferred(§) Jobs marketplace for the energy sector 469 <0.1 421
4,782 0.6 4,291
Human Interest Series E Preferred(§) Retirement benefits platform 4,734 0.6 4,713
Thumbtack Class A Common(§) Online directory service for local businesses 2,975 0.4 2,437
Thumbtack Series I Preferred(§) Online directory service for local businesses 1,309 0.2 1,293
Thumbtack Series A Preferred(§) Online directory service for local businesses 212 <0.1 174
Thumbtack Series C Preferred(§) Online directory service for local businesses 62 <0.1 51
Thumbtack Series B Preferred(§) Online directory service for local businesses 14 <0.1 12
4,572 0.6 3,967
Inspire Medical Systems Medical technology company 4,553 0.6 6,054
Sweetgreen Salad fast food chain 4,500 0.6 9,370
Lyra Health Series E Preferred(§) Digital mental health platform for enterprises 3,215 0.4 7,136
Lyra Health Series F Preferred(§) Digital mental health platform for enterprises 1,059 0.1 1,664
4,274 0.5 8,800
Tanium Class B Common(§) Online security management 3,917 0.5 4,548
Moderna Therapeutic messenger RNA 3,786 0.5 23,506
Runway AI Series D Preferred(§) Generative AI research and technologies platform 3,708 0.5 -
Cosm Experience(§) Immersive entertainment venues 3,708 0.5 -
Lemonade Insurance company 3,623 0.5 2,068
Lineage Dynamic temperature-controlled warehousing and logistics 3,465 0.4 -
Away (JRSK) Convertible Travel and lifestyle brand 1,027 0.1 1,039
Promissory Note(§)
Away (JRSK) Convertible Travel and lifestyle brand 1,027 0.1 1,039
Promissory Note 2021(§)
Away (JRSK) Series D Preferred(§) Travel and lifestyle brand 971 0.1 1,072
Away (JRSK) Series Seed Preferred(§) Travel and lifestyle brand 156 <0.1 234
3,181 0.3 3,384
Honor Technology Series D Preferred(§) Home care provider 2,032 0.2 1,158
Honor Technology Series E Preferred(§) Home care provider 882 0.1 502
Honor Technology Inc Subordinated Convertible Promissory Note(§) Home care provider 196 <0.1 198
3,110 0.3 1,858
Airbnb Class B Common(‡) Online market place for travel accommodation 2,940 0.3 3,501
Globant Technology services company specialising in software development, IT services 2,451 0.3 -
and consulting
Rivian Automotive Developer security platform 2,435 0.3 1,078
YETI Consumer products for the outdoor and recreation markets 2,398 0.3 3,726
Denali Therapeutics Clinical stage neurodegeneration company 2,032 0.3 3,321
Recursion Pharmaceuticals Drug discovery platform 936 0.1 1,891
Sana Biotechnology Gene editing technology 313 <0.1 1,239
Ginkgo Bioworks(‡) Bioengineering company developing micro organisms that produce various 288 <0.1 930
proteins
Niantic Spatial Series A Preferred(§) Geospatial AI and spatial computing solutions 242 <0.1 -
Indigo Agriculture Class A Common(§) Agricultural technology company 3 <0.1 130
Blockstream Series B-1 Preferred(§) Bitcoin and digital asset infrastructure - 0.0 163
Capsule Series 1-D Preferred(§) Digital pharmacy - 0.0 824
Capsule Series E Preferred(§) Digital pharmacy - 0.0 509
- 0.0 1,333
Abiomed CVR(§) Manufacturer of heart pumps - 0.0 -
Total investments 772,747 99.0
Net liquid assets(†) 8,121 1.0
Total assets(*) 780,868 100.0
Listed Private Net liquid Total
equities company assets (†) assets (*)
% investments (#) % %
%
31 May 2025 64.1 34.9 1.0 100.0
31 May 2024 65.2 34.1 0.7 100.0
(*) Total assets less current liabilities, before deduction of
borrowings. See Glossary of terms and alternative performance measures on
pages 129 to 132.
(†) See Glossary of terms and alternative performance measures on
pages 129 to 132.
(#) Includes holdings in ordinary shares, preference shares and
convertible promissory notes.
(§) Denotes private company investment.
(‡) Denotes listed investment previously held in the portfolio as a
private company investment.
Past performance is not a guide to future performance.
Principal and emerging risks
As explained on pages 74 and 75 there is an ongoing process for identifying, evaluating and managing the risks faced by the Company on a regular basis. The Directors have carried out a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, regulatory compliance, solvency or liquidity. During the year the Audit Committee, in conjunction with the Board and the Manager, undertook a full review of the Company's risk map including the mitigating factors and controls to reduce the impact of the risks. The Committee continues to closely monitor these risks along with any other emerging risks as they develop and implements mitigating actions as necessary. There have been no material changes to the principal risks during the year. A description of these risks and how they are being managed or mitigated is set out below.
The Board considers the heightened macroeconomic and geopolitical concerns to be factors which exacerbate existing risks, rather than discrete risks, within the context of an investment trust. Their impact is considered within the relevant risks.
What is the risk? How is it managed? Current assessment of risk
Financial risk: The Company's assets consist of securities and its principal The Board has, in particular, considered the impact of heightened market Risk level: High
financial risks are therefore market related and include market risk volatility during recent months due to macroeconomic factors such as higher
(comprising currency risk, interest rate risk and other price risk), liquidity inflation, interest rates and geopolitical concerns. To mitigate this risk the This risk is unchanged and remains high due to the heightened macroeconomic
risk and credit risk. An explanation of those risks and how they are managed Board considers at each meeting various portfolio metrics including individual and geopolitical concerns and the threat to trade from increased protectionism
is contained in note 17 to the Financial Statements on pages 109 to 116. stock performance and weightings, the top and bottom contributors to which continue to create a challenging environment for businesses.
performance, purchases and sales of investments and relative sector weightings
against the comparative index. The portfolio managers provide their rationale
for stock selection decisions. A comprehensive strategy meeting is held
annually to facilitate challenge of the Company's strategy. The value of the
Company's investment portfolio would be affected by any impact, positively or
negatively, on sterling but such impact would be partially offset by the
effect of exchange rate movements on the Company's dollar denominated
borrowings.
What is the risk? How is it managed? Current assessment of risk
Private company investment risk: To mitigate this risk, the Board considers the private company securities in Risk level: Moderate
the context of the overall investment strategy and provides guidance to the
The Company's liquidity risk could be increased by its investment in private Managers on the maximum exposure to private company securities. The investment Three new private companies were purchased during the period. This risk is
company securities. These assets may be more difficult to buy or sell, so policy limits the amount which may be invested in private company securities seen as stable. At 31 May 2025, private company investments comprised 34.9% of
changes in their prices may be greater than for listed investments and their to 50% of the total assets of the Company in aggregate, measured at the time total assets.
valuations may be perceived to be more volatile or out of date. of investment. The Managers have a robust valuation methodology, which is
applied consistently. In periods of market volatility, the Managers' Private
Company Valuations Group will perform trigger analyses and, if appropriate,
revalue the relevant investments. The valuations are subject to review and
challenge by the Board every six months and are subject to scrutiny annually
by the external Auditor.
What is the risk? How is it managed? Current assessment of risk
Investment strategy risk: Pursuit of an investment strategy to fulfil the To mitigate this risk, the Board regularly reviews and monitors the Company's Risk level: High
Company's objective which the market perceives to be unattractive or objective and investment policy and strategy, the investment portfolio and its
inappropriate, or the ineffective implementation of an attractive or performance, the level of discount/premium to net asset value at which the This risk is considered to be stable as there are signs that the market's
appropriate strategy, may lead to reduced returns for shareholders and, as a shares trade, feedback from regular shareholder engagement and movements in appetite for growth stocks, typically held by the Company, is recovering
result, a decreased demand for the Company's shares. This may lead to the the share register and raises any matters of concern with the Managers. following the recent period of heightened macroeconomic and geopolitical
Company's shares trading at a wide discount to their net asset value.
concerns. Shareholder feedback continues to indicate strong support for the
strategy.
What is the risk? How is it managed? Current assessment of risk
Environmental social and governance risk: Perceived problems on environmental, This is mitigated by the Managers' strong ESG stewardship and engagement Risk level: Moderate
social and governance ('ESG') matters in an investee company could lead to policies which are available to view on the Managers' website,
that company's shares being less attractive to investors, adversely affecting bailliegifford.com, and which have been reviewed and endorsed by the Company, The Managers continue to embed analysis of ESG factors within the investment
its share price, in addition to potential valuation issues arising from any and which have been fully integrated into the investment process as well as process and employ strong ESG stewardship and engagement policies.
direct impact of the failure to address the ESG weakness on the operations or the extensive up‑front and ongoing due diligence which the Managers
management of the investee company (for example a failure to identify a undertake on each investee company. Due diligence includes assessment of the
pathway to Net Zero or poor employment practices). Repeated failure by the risks inherent in climate change as well as ongoing positive engagement on
Managers to identify ESG weaknesses in investee companies could lead to the ESG‑related issues (see pages 18 to 20).
Company's own shares being less attractive to investors, adversely affecting
its own share price.
What is the risk? How is it managed? Current assessment of risk
Discount risk: The discount/premium at which the Company's shares trade To manage this risk, the Board monitors the level of discount/premium at which Risk level: High
relative to their net asset value can change. The risk of a wide discount is the shares trade and the Company has authority to buy back its existing
that it may undermine investor confidence in the Company and shareholders shares, when deemed by the Board to be in the best interests of the Company The Company's discount narrowed during the year. Over the year to 31 May 2025
selling their shares will get less than the net asset value of those shares. and its shareholders. The liquidity policy is set out on page 48. the Company bought back 16,000,000 shares to be held in treasury. The Board
continues to monitor closely the discount and the impact of the current
liquidity policy being applied.
What is the risk? How is it managed? Current assessment of risk
Regulatory risk: Failure to comply with applicable legal and regulatory To mitigate this risk, Baillie Gifford's Business Risk, Internal Audit and Risk level: Low
requirements such as the tax rules for investment trust companies, the UK Compliance departments provide regular reports to the Audit Committee on
Listing Rules and the Companies Act could lead to suspension of the Company's Baillie Gifford's monitoring programmes. Major regulatory change could impose All control procedures are working effectively. There have been no material
Stock Exchange listing, financial penalties, a qualified audit report or the disproportionate compliance burdens on the Company. In such circumstances regulatory changes that impacted the Company during the year.
Company being subject to tax on capital gains. representation is made to ensure that the special circumstances of investment
trusts are recognised. Shareholder documents and announcements, including the
Company's published Interim and Annual Reports and Financial Statements, are
subject to stringent review processes and procedures are in place to ensure
adherence to the Transparency Directive and the Market Abuse Directive with
reference to inside information.
What is the risk? How is it managed? Current assessment of risk
Custody and Depositary risk: Safe custody of the Company's assets may be To mitigate this risk, the Audit Committee receives six‑monthly reports from Risk level: Low
compromised through control failures by the Depositary, including breaches of the Depositary confirming safe custody of the Company's assets held by the
cyber security. Custodian. Cash and portfolio holdings are independently reconciled to the All control procedures are working effectively.
Custodian's records by the Managers who also agree uncertificated private
portfolio holdings to confirmations from investee companies. The Custodian's
assured internal controls reports are reviewed by Baillie Gifford's Business
Risk department and a summary of the key points is reported to the Audit
Committee and any concerns investigated. In addition, the existence of assets
is subject to annual external audit.
What is the risk? How is it managed? Current assessment of risk
Operational risk: Failure of Baillie Gifford's systems or those of other third To mitigate this risk, Baillie Gifford has a comprehensive business continuity Risk level: Low
party service providers could lead to an inability to provide accurate plan which facilitates continued operation of the business in the event of a
reporting and monitoring or a misappropriation of assets. service disruption. The Audit Committee reviews Baillie Gifford's Report on All control procedures are working effectively. The other key third party
Internal Controls and reports by other key third party providers are reviewed service providers have not experienced significant operational difficulties
by Baillie Gifford on behalf of the Board and a summary of the key points is affecting their respective services to the Company.
reported to the Audit Committee and any concerns investigated.
What is the risk? How is it managed? Current assessment of risk
Cyber security risk: A cyber attack on Baillie Gifford's network or that of a To mitigate this risk, the Audit Committee reviews reports on Internal Risk level: Moderate
third party service provider could impact the confidentiality, integrity or Controls published by Baillie Gifford and other third party service providers.
availability of data and systems. Baillie Gifford's Business Risk department reports to the Audit Committee on This risk is seen as moderate but stable due to the continuation of
the effectiveness of information security controls in place at Baillie Gifford geopolitical tensions. Emerging technologies, including AI, could potentially
and its business continuity framework. Cyber security due diligence is increase information security risks. In addition, service providers operate a
performed by Baillie Gifford on third party service providers which includes a hybrid approach of remote and office working, thereby increasing the potential
review of crisis management and business continuity frameworks. of a cyber security threat.
What is the risk? How is it managed? Current assessment of risk
Leverage risk: The Company may borrow money for investment purposes. If the To mitigate this risk, all borrowings require the prior approval of the Board Risk level: Low
investments fall in value, any borrowings will magnify the impact of this and leverage levels are discussed by the Board and Managers at every meeting.
loss. If borrowing facilities are not renewed, the Company may have to sell Covenant levels are monitored regularly. The majority of the Company's This risk is considered to be stable. During the year to 31 May 2025 gearing
investments to repay borrowings. The Company can also make use of derivative investments are in quoted securities that are readily realisable. Further decreased from 5% to 4%. Current borrowings are well below levels where loan
contracts. The use of such contracts may have a gearing effect so as to information on leverage can be found on page 124 and the Glossary of terms and covenants may be breached. The current revolving credit facilities expire in
enhance, or worsen, returns relative to the amount invested in this way. alternative performance measures on pages 129 to 132. July (US$25 million) and October (US$25 million) 2026.
What is the risk? How is it managed? Current assessment of risk
Political and associated economic risk: The Board is of the view that Political developments are closely monitored and considered by the Board. The Risk level: High
political change in areas in which the Company invests or may invest may have Board has particular regard to macroeconomic and geopolitical tensions, and
financial consequences for the Company. monitors portfolio diversification. This risk is seen as increasing as deteriorating geopolitical stability
increases the prospect of further trade conflict and sanctions.
Emerging risk: As explained on pages 74 and 75 the Board has regular
discussions on principal risks and uncertainties, including any risks which
are not an immediate threat but could arise in the longer term. The Board
considers that the key emerging risks arise from the interconnectedness of
global economies and the related exposure of the investment portfolio to
external and emerging threats such as the societal and financial implications
of escalating geopolitical tensions, cyber security risks including developing
AI and quantum computing capabilities and new infectious diseases or similar
public health threats. This is mitigated by the Managers' close links to the
investee companies and their ability to ask questions on contingency plans.
The Managers believe the impact of such events may be to slow growth rather
than to invalidate the investment rationale over the long term.
Promoting the success of the Company (section 172 statement)
Under section 172 of the Companies Act 2006, the directors of a company must
act in the way they consider, in good faith, would be most likely to promote
the success of the company for the benefit of its members as a whole, and in
doing so have regard (amongst other matters and to the extent applicable) to:
a) the likely consequences of any decision in the long term, b) the interests
of the company's employees, c) the need to foster the company's business
relationships with suppliers, customers and others, d) the impact of the
company's operations on the community and the environment, e) the desirability
of the company maintaining a reputation for high standards of business conduct
and f) the need to act fairly as between members of the company.
In this context and having regard to Baillie Gifford US Growth being an
externally‑managed investment company with no employees, the Board considers
that the Company's key stakeholders are its existing and potential new
shareholders, its externally‑appointed Managers (Baillie Gifford) and other
professional service providers (corporate broker, registrar, Auditor,
Custodian and Depositary), lenders, portfolio companies, AIC/industry peers,
investment platforms, wider society and the environment.
The Board considers that the interests of the Company's key stakeholders are
aligned, in terms of wishing to see the Company deliver sustainable
long‑term growth, in line with the Company's stated objective and strategy,
and meet the highest standards of legal, regulatory, and commercial conduct,
with the differences between stakeholders being merely a matter of emphasis on
those elements.
The Board approaches all key decision making with the interests of the Company
and all its shareholders as the priority.
Key decisions
In addition to ensuring that the Company's stated investment objective was
being pursued, key decisions and actions during the year to 31 May 2025 which
required the Directors to have regard to applicable section 172 factors
included:
• Share buybacks
The Company bought back 16,000,000 of its own shares into treasury at a
discount to net asset value, for subsequent reissue. The Company's buy-back
strategy takes into account a broad range of factors, carefully considering
and balancing the positives (in particular, providing shareholders with
additional liquidity for their shares on terms that enhance net asset value
for remaining shareholders) and any negatives (in particular, the impact on
portfolio composition and diversification), as well as having regard to
shareholder feedback regarding discount management.
• Shareholder engagement and marketing
The Board conducted regular meetings with shareholders during the year to seek
their feedback and understand their views. During the year the Company hosted
an Annual General Meeting providing shareholders with the opportunity to
engage directly with the Board and the Managers. A Q&A session was held
allowing shareholders to raise questions and receive detailed responses. The
Board encourages shareholders to attend the 2025 Annual General Meeting (see
the Notice of AGM on pages 118 to 120). The Board continues to utilise digital
platforms, including the Company website, to disseminate timely information
and updates. Through these initiatives, the Board has strengthened its
relationship with shareholders, ensuring their voices are heard and considered
in the Company's strategic decision-making process. The Board remains
committed to maintaining regular, open and transparent communication with all
shareholders.
The Company is part of a marketing programme which includes all the investment
trusts managed by Baillie Gifford & Co Limited. The marketing strategy has
an ongoing objective to stimulate demand for the Company's shares. The Board
took the decision to increase the total annual marketing budget from £200,000
to £400,000 (see note 4 to the Financial Statements on page 102). The cost of
this marketing strategy is borne in partnership by the Company and the
Managers with the Managers matching the Company's contribution. It is hoped
the results of an increased marketing budget will significantly outweigh the
additional cost. The Board is keen to enhance its relationship with existing
shareholders by keeping them informed, and engaged with the Company's
activities and performance, whilst also attracting new investors.
The Board continues to assess the best way to interact with shareholders and
is considering implementing a new feedback mechanism in order to receive
shareholder views in real-time. The Board understands how challenging it can
be to reach retail shareholders.
• Board performance
In a commitment to uphold the highest standards of corporate governance and
enhance board performance, the Board undertook an externally facilitated Board
evaluation during the year. This was aimed at providing an objective
assessment of the Board's effectiveness and identifying areas for improvement.
By addressing the identified areas for improvement, the Board aims to further
enhance its governance practices and better serve the interests of
shareholders. The Board is committed to maintaining transparency,
accountability, and excellence in governance. More information on the
evaluation process can be found on pages 73 and 74.
• Requisitioned general meeting
During the year, the Board convened a requisitioned general meeting in
response to a requisition from a major shareholder. This meeting was an
important opportunity for the Board to engage directly with shareholders and
address their specific concerns. Holding a general meeting involves a variety
of costs, which can vary depending on the size and nature of the meeting.
Costs were a key consideration for the Board, given the limited notice the
Company received along with the timing of the requisition over public
holidays. In order to keep costs to a minimum and limit the impact on
shareholder returns the Board elected to review and, where considered
appropriate, change their service providers and undertook a significant amount
of work themselves that would ordinarily be provided by external parties. The
total costs incurred in connection with the general meeting were £319,000.
Responsibility statement of the Directors in respect of the Annual Financial Report
We confirm that, to the best of our knowledge:
• the Financial Statements, which have been prepared in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', give a true and fair view of the assets, liabilities, financial position and net return of the Company;
• the Annual Report and Financial Statements taken as a whole is fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy; and
• the Strategic report and Directors' report include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.
Signed on behalf of the Board
Tom Burnet
11 August 2025
Income statement
For the year ended 31 May
Notes 2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 140,942 140,942 - 95,288 95,288
Currency gains - 1,731 1,731 - 878 878
Income 2 716 - 716 603 - 603
Investment management fee 3 (4,264) - (4,264) (3,581) - (3,581)
Other administrative expenses (1,239) - (1,239) (726) - (726)
Net return before finance costs and taxation (4,787) 142,673 137,886 (3,704) 96,166 92,462
Finance costs of borrowings 8 (2,458) - (2,458) (2,528) - (2,528)
Net return before taxation (7,245) 142,673 135,428 (6,232) 96,166 89,934
Tax on ordinary activities (67) - (67) (50) - (50)
Net return after taxation (7,312) 142,673 135,361 (6,282) 96,166 89,884
Net return per ordinary share 4 (2.54p) 49.51p 46.97p (2.07p) 31.73p 29.66p
The total column of this statement is the profit and loss account of the
Company. The supplementary revenue and capital return 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 all gains and losses of
the Company have been reflected in the above statement.
The accompanying notes on pages 98 to 116 are an integral part of the
Financial Statements.
Balance sheet
As at 31 May
Notes 2025 2025 2024 2024
£'000 £'000 £'000 £'000
Fixed assets
Investments held at fair value through profit or loss 6 772,747 678,234
Current assets
Debtors 754 605
Cash at bank 8,929 6,620
9,683 7,225
Creditors
Amounts falling due within one year 8 (38,640) (41,526)
Net current liabilities (28,957) (34,301)
Net assets 743,790 643,933
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 354,716 247,547
Revenue reserve (33,768) (26,456)
Total shareholders' funds 743,790 643,933
Net asset value per ordinary share(*) 264.48p 216.65p
The Financial Statements of Baillie Gifford US Growth Trust plc (Company
Registration number 11194060) were approved and authorised for issue by the
Board and were signed on 11 August 2025.
Tom Burnet
Chair
(*) Net asset value per ordinary share after deducting borrowings at
book value. See Glossary of terms and alternative performance measures on
pages 129 to 132.
The accompanying notes on pages 98 to 116 are an integral part of the
Financial Statements.
Statement of changes in equity
For the year ended 31 May 2025
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 10 - - - (35,504) - (35,504)
Net return after taxation - - - 142,673 (7,312) 135,361
Shareholders' funds at 31 May 2025 3,073 250,827 168,942 354,716 (33,768) 743,790
For the year ended 31 May 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 2023 3,073 250,827 168,942 165,931 (20,174) 568,599
Ordinary shares bought back into treasury 10 - - - (14,550) - (14,550)
Net return after taxation - - - 96,166 (6,282) 89,884
Shareholders' funds at 31 May 2024 3,073 250,827 168,942 247,547 (26,456) 643,933
The accompanying notes on pages 98 to 116 are an integral part of the
Financial Statements.
Cash flow statement
For the year ended 31 May
Notes 2025 2025 2024 2024
£'000 £'000 £'000 £'000
Cash flows from operating activities
Net return before taxation 135,428 89,934
Adjustments to reconcile company profit before tax to net cash flow from
operating activities
Net gains on investments (140,942) (95,288)
Currency gains (1,731) (878)
Finance costs of borrowings 2,458 2,528
Other capital movements
Overseas withholding tax incurred (67) (50)
Changes in debtors (149) 51
Changes in creditors 140 191
Cash from operations(*) (4,863) (3,512)
Finance costs paid (2,510) (2,308)
Net cash outflow from operating activities (7,373) (5,820)
Cash flows from investing activities
Acquisitions of investments (83,014) (95,852)
Disposals of investments 129,443 118,814
Net cash inflow from investing activities 46,429 22,962
Cash flows from financing activities
Ordinary shares bought back into treasury and stamp duty thereon 10 (36,285) (13,769)
Bank loans drawn down - 20,577
Bank loans repaid - (20,577)
Net cash outflow from financing activities (36,285) (13,769)
Increase in cash and cash equivalents 2,771 3,373
Exchange movements (462) (193)
Cash and cash equivalents at start of period 6,620 3,440
Cash and cash equivalents at 31 May 8,929 6,620
(*) Cash from operations includes dividends received of £449,000 (2024
- £536,000) and interest received of £159,000 (2024 - £35,000).
The accompanying notes on pages 98 to 116 are an integral part of the
Financial Statements.
Notes to the Financial Statements
1. Principal accounting policies
The Financial Statements for the year to 31 May 2025 have been prepared in
accordance with FRS 102 'The Financial Reporting Standard applicable in the UK
and Republic of Ireland' and on the basis of the accounting policies set out
below which are unchanged from the prior year and have been applied
consistently.
2. Income
2025 2024
£'000 £'000
Income from investments
Overseas dividends 449 536
Overseas interest 108 32
557 568
Other income
Deposit interest 159 35
Total income 716 603
3. Investment management fee
Baillie Gifford & Co Limited, a wholly owned subsidiary of Baillie Gifford
& Co, has been appointed as the Company's Alternative Investment Fund
Manager ('AIFM') 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 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. Management fees are calculated and payable quarterly. The Board is of
the view that calculating the fee with reference to performance would be
unlikely to exert a positive influence on performance.
4. Net return per ordinary share
2025 2025 2025 2024 2024 2024
Revenue Capital Total Revenue Capital Total
Net return after taxation (2.54p) 49.51p 46.97p (2.07p) 31.73p 29.66p
Revenue return per ordinary share is based on the net revenue loss after
taxation of £7,312,000 (2024 - net revenue loss after taxation of
£6,282,000) and on 288,178,084 (2024 - 303,075,968) ordinary shares, being
the weighted average number of ordinary shares in issue (excluding treasury
shares) during each period.
Capital return per ordinary share is based on the net capital profit for the
financial period of £142,673,000 (2024 - net capital profit after taxation of
£96,166,000) and on 288,178,084 (2024 - 303,075,968) ordinary shares, being
the weighted average number of ordinary shares in issue (excluding treasury
shares) during each period.
Total return per ordinary share is based on the total profit for the financial
period of £135,361,000 (2024 - total profit of £89,884,000) and on
288,178,084 (2024 - 303,075,968) ordinary shares, being the weighted average
number of ordinary shares in issue (excluding treasury shares) during each
period.
There are no dilutive or potentially dilutive shares in issue.
5. Ordinary dividends
There are no dividends paid or proposed in respect of the financial year.
There is no investment income available for distribution by way of dividend
for the year to 31 May 2025 due to the revenue loss of £7,312,000 in the
year (2024 - revenue loss of £6,282,000).
6. Fair value hierarchy
As at 31 May 2025 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed equities 499,337 - - 499,337
Unlisted ordinary shares - - 39,507 39,507
Unlisted preference shares(*) - - 231,653 231,653
Unlisted convertible promissory notes - - 2,250 2,250
Unlisted CVR(†) - - - -
Total financial asset investments 499,337 - 273,410 772,747
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 take‑over.
(†) The Abiomed CVR (see 'Contingent value rights' on page 132 for
details) had a fair value of nil at 31 May 2025 and 31 May 2024.
During the year to 31 May 2025 no investments (31 May 2024 - investments
with a book cost of £5,725,000) were transferred from Level 3 to Level 1 on
becoming listed. Investments in securities are financial assets held at fair
value through profit or loss. In accordance with FRS 102, the tables above
provide an analysis of these investments based on the fair value hierarchy
described below, which reflects the reliability and significance of the
information used to measure their fair value.
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).
The valuation techniques used by the Company are explained in the accounting
policies on pages 99 and 100. A sensitivity analysis by valuation technique of
the unlisted securities is given on pages 111 to 114.
7. Transaction costs
Transaction costs of £18,000 (2024 - £21,000) and £18,000 (2024 - £28,000)
were suffered on purchases and sales respectively.
8. Borrowing facilities
The US$25 million five‑year revolving credit facility with ING Bank N.V.,
London Branch matured on 31 July 2023 and was refinanced with a new unsecured
US$25 million three‑year revolving credit facility from ING Bank N.V.,
London Branch on 26 July 2023. At 31 May 2025 there were drawings of US$25
million at an interest rate of 5.90% (2024 - US$25 million at an interest rate
of 7.01%). The US$25 million three‑year fixed rate facility with ING Bank
N.V., London Branch matured on 23 October 2023 and was refinanced with a new
unsecured US$25 million three‑year revolving credit facility, from The Royal
Bank of Scotland International Limited, on 18 October 2023. At 31 May 2025
there were drawings of US$25 million at an interest rate of 5.63% (2024 -
US$25 million at an interest rate of 6.61%).
The main covenants relating to the loans are that borrowings should not exceed
30% of the Company's adjusted net asset value or adjusted portfolio value and
the Company's minimum adjusted net asset value or adjusted portfolio value
shall be £140 million. The adjusted net asset value and adjusted portfolio
value calculations include the deduction of 100% of the value of any unlisted
securities. There were no breaches in the loan covenants during the year to
31 May 2025 (31 May 2024 - none).
9. Analysis of change in net debt
At 31 May Cash flows Exchange At 31 May
2024 £'000 movement 2025
£'000 £'000 £'00
Cash at bank 6,620 2,771 (462) 8,929
Loans due within one year (39,271) - 2,193 (37,078)
(32,651) 2,771 1,731 (28,149)
10. Share capital
2025 2025 2024 2024
Number £'000 Number £'000
Allotted, called up and fully paid ordinary shares of 1p each 281,228,700 2,812 297,228,700 2,972
Treasury shares of 1p each 26,131,300 261 10,131,300 101
307,360,000 3,073 307,360,000 3,073
In the year to 31 May 2025, the Company issued no shares (2024 - nil).
Over the period from 1 June 2025 to 6 August 2025 the Company has 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. In the year to 31 May 2025, 16,000,000 shares with a
nominal value of £160,000 were bought back at a total cost of £35,504,000
(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 31 May 2025 the
Company had authority to buy back 33,697,687 ordinary shares.
Over the period from 1 June 2025 to 6 August 2025 the Company bought back
800,000 shares and held them in treasury.
11. Transactions with related parties and the Managers and Secretaries
The Directors' fees and shareholdings are detailed in the Directors'
remuneration report on pages 80 to 83. No Director has a contract of service
with the Company. During the period no Director was interested in any contract
or other matter requiring disclosure under section 412 of the Companies Act
2006.
Details of the management fee arrangements are included in note 3 above.
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 May 2025 or the year ended 31 May
2024 but is derived from those accounts. Statutory accounts for the period to
31 May 2024 have been delivered to the Registrar of Companies, and those for
the year to 31 May 2025 will be delivered in due course. The auditor has
reported on those accounts; the reports were (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
The Annual Report and Financial Statements is published on the Company website
bgusgrowthtrust.com
(https://www.bailliegifford.com/en/uk/individual-investors/funds/baillie-gifford-us-growth-trust/)
(‡). The audited Annual Report and Financial Statements will be posted to
shareholders during August 2025 (including the Notice of AGM and voting
instructions), and will be delivered to the Registrar of Companies in due
course. A copy of the annual financial report will be submitted shortly to
the National Storage Mechanism ('NSM') and will be available for inspection at
the NSM, which is situated
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
(‡) Neither the contents of the Company website nor the
contents of any website accessible from hyperlinks on the Company website (or
any other website) is incorporated into, or forms part of, this announcement.
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 cost. 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 adjusted net issue proceeds. The value of the
borrowings at book is set out on page 116.
Borrowings at fair value (APM)
Borrowings are valued at an estimate of their market worth. The value of the
borrowings at fair is set out on page 116.
Net asset value (reconciliation of NAV at book value to NAV at fair value)
2025 2024
Net asset value per ordinary share (borrowings at book value) 264.48p 216.65p
Shareholders' funds (borrowings at book value) £743,790,000 £643,933,000
Add: book value of borrowings £37,078,000 £39,271,000
Less: fair value of borrowings (£37,078,000) (£39,271,000)
Net asset value (borrowings at fair value) £743,790,000 £643,933,000
Number of shares in issue 281,228,700 297,228,700
Net asset value per ordinary share (borrowings at fair value) 264.48p 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 NAV per share from the share price and is
usually expressed as a percentage of the NAV per share. If the share price is
higher than the NAV per share, it is said to be trading at a premium.
2025 2024
Net asset value per ordinary share a 264.48p 216.65p
(after deducting borrowings at fair value)
Share price b 239.50p 192.40p
Discount (borrowings at fair value) (b-a) ÷ a 9.4% 11.2%
2025 2024
Net asset value per ordinary share a 264.48p 216.65p
(after deducting borrowings at book value)
Share price b 239.50p 192.40p
Discount (borrowings at book value) (b-a) ÷ a 9.4% 11.2%
Total return (APM)
The total return is the return to shareholders after reinvesting any dividend
on the date that the share price goes ex‑dividend. The Company does not pay
a dividend, therefore, the total returns for the share price and NAV per share
are the same as the percentage movements in the share price and NAV per share
as detailed on page 22.
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 debt at fair value).
31 May 31 May
2025 2024
£'000 £'000
Investment management fee 4,264 3,581
Other administrative expenses 1,239 726
Less: Non-recurring expenses* (319) -
Total recurring expenses a 5,184 4,307
Average net asset value b 719,622 616,958
Ongoing charges (a ÷ b expressed as a percentage) 0.72% 0.70%
*Non-recurring expenses in the year to 31 May 2025 amounted to £319,000.
These were the total costs incurred in connection with the requisitioned
general meeting held on 3 February 2025.
Turnover (APM)
Annual turnover is a measure of portfolio change or trading activity in a
portfolio. Turnover is calculated as the minimum of purchases and sales in a
month, divided by the average market value of the portfolio, summed to get
rolling 12 month turnover data.
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.
31 May 31 May
2025 2024
£'000 £'000
Borrowings (at book cost) 37,078 39,271
Less: cash and cash equivalents (8,929) (6,620)
Adjusted borrowings (a) 28,149 32,651
Shareholders' funds (b) 743,790 643,933
Gearing: (a) as a percentage of (b) 4% 5%
Gross gearing is the Company's borrowings expressed as a percentage of
shareholders' funds.
31 May 31 May
2025 2024
£'000 £'000
Borrowings (at book cost) (a) 37,078 39,271
Shareholders' funds (b) 743,790 643,933
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, 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
cancellation. Treasury shares do not receive distributions and the Company is
not entitled to exercise the voting rights attaching to them.
Private (unlisted) company
An unlisted or private company means a company whose shares are not available
to the general public for trading and are not listed on a 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.
Third party data provider disclaimer
No third party data provider ('Provider') makes any warranty, express or
implied, as to the accuracy, completeness or timeliness of the data contained
herewith nor as to the results to be obtained by recipients of the data.
No Provider shall in any way be liable 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 liability
whatsoever to you, whether in contract (including under an indemnity), in tort
(including negligence), under a warranty, under statute or otherwise, in
respect of any loss or damage 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.
S&P Index Data
The S&P 500 Index ('Index') is a product of S&P Dow Jones Indices LLC,
a division of S&P Global, or its affiliates ('SPDJI'), and has been
licensed for use by Baillie Gifford & Co. and S&P500® is a registered
trademark of S&P Global, Inc. or its affiliates ('S&P'); Dow Jones®
is a registered trademark of Dow Jones Trademark Holdings LLC ('Dow Jones');
and these trademarks have been licensed for use by SPDJI and sub-licensed for
certain purposes by Baillie Gifford & Co. Baillie Gifford & Co
Product(s) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones,
S&P, their respective affiliates and none of such parties make any
representation regarding the advisability of investing in such product(s) nor
do they have any liability for any errors, omissions, or interruptions of the
S&P 500 Index.
FTSE Index data
London Stock Exchange Group plc and its group undertakings (collectively, the
'LSE Group'). © LSE Group 2025. FTSE Russell is a trading name of certain of
the LSE Group companies. 'FTSE®' 'Russell®', 'FTSE Russell®', is/are a
trade mark(s) of the relevant LSE Group companies and is/are used by any other
LSE Group company under license. All rights in the FTSE Russell indexes or
data vest in the relevant LSE Group company which owns the index or the data.
Neither LSE Group nor its licensors accept any liability for any errors or
omissions in the indexes or data and no party may rely on any indexes or data
contained in this communication. No further distribution of data from the LSE
Group is permitted without the relevant LSE Group company's express written
consent. The LSE Group does not promote, sponsor or endorse the content of
this communication.
Sustainable Finance Disclosure 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 is marketed in the
EU by the AIFM, Baillie Gifford & 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 stewardship principles and
guidelines as its policy on integration of sustainability risks in investment
decisions.
Baillie Gifford & Co believes that a company cannot be financially
sustainable in the long run if its approach to business is fundamentally out
of line with changing societal expectations. It defines 'sustainability' as a
deliberately broad concept which encapsulates a company's purpose, values,
business model, culture and operating practices.
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 up 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. The likely impact
on the return of the portfolio from a potential or actual material decline in
the value of investment due to the occurrence of an environmental, social or
governance event or condition will vary and will depend on several factors
including but not limited to the type, extent, complexity and duration of an
event or condition, prevailing market conditions and existence of any
mitigating factors.
Whilst consideration is given to sustainability matters, there are no
restrictions on the investment universe of the Company, unless otherwise
stated within in its investment objective & policy. Baillie Gifford &
Co can invest in any companies it believes could create beneficial long‑term
returns for investors. However, this might result in investments being made in
companies that ultimately cause a negative outcome for the environment or
society.
More detail on the Managers' approach to sustainability can be found in the
stewardship principles and guidelines document, available publicly on the
Baillie Gifford website bailliegifford.com.
The underlying investments do not take into account the EU criteria for
environmentally sustainable economic activities established under the EU
Taxonomy Regulation.
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