Baillie Gifford US Growth discount narrows as positive performance returns
As of the end of November, the trust held 24 positions in private companies, comprising nearly a third (31.7%) of its assets.
In its results for the six months to 30 November 2023, the trust reported share price and NAV returns of 12.3% and 4.1%, respectively. This compared with a 7.9% total return for the S&P 500 index benchmark, in sterling terms.
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Chair Tom Burnet highlighted the narrowing of the trust's discount from -22.4% in June to -16.2% at the end of November, a factor he said had been a «challenge to many shareholders».
According to data from the Association of Investment Companies, BG US Growth's discount has narrowed even further since then, currently trading at -14.7%.
As of the end of November, the trust held 24 positions in private companies, comprising nearly a third (31.7%) of its assets.
During the six month period, it exited Illumina, Market Axess, Novocure, Redfin and Snap, repurchased Meta Platforms and took up new positions in Samsara and Sprout Social to «capitalise on the growth prospect of social media and AI technology», explained portfolio managers Gary Robinson and Kirsty Gibson.
They argued it had been a better year for the trust and that «the storm is easing», as companies in the portfolio were «executing well». However, they urged investors to take a longer-term horizon and assess performance over a five-year period.
With inflation beginning to fall and interest rates potentially past their peak «perhaps we can allow ourselves some optimism that valuations may begin to recover over the coming months», Burnet added.
He continued: «The board remains supportive of the managers' long-term approach to investing and we
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