Last checked at 27 Sep 2023 12:58
Baillie Gifford UK Growth Trust - Annual Overview from QuotedData
27th September 2023
A recipe for a rerating
As the fund with most growth-orientated investment style amongst its peers (see page 21), Baillie Gifford UK Growth Trust (BGUK) has faced particularly strong headwinds during the last 18 months, as investors have either sought sanctuary in value and defensive stocks, or pulled money out of equities altogether, often in favour of fixed income stocks which are now offering a better rate of return than they have for some time.
Despite these challenges, BGUK has provided a net asset value (NAV) total return of 4.9% over the last year (peer group average of 3.3% - see page 22) and at an operational level its companies continue to perform well. The managers have reiterated their long-term confidence in the portfolio, and whilst acknowledging recession risk has increased, they note that BGUK's companies are financially sound and have resilient balance sheets.
Both the UK and growth stocks are looking cheap, and BGUK is trading at a discount to NAV that is significantly above its longer-term average. This could be a recipe for a strong rerating when the outlook improves, particularly now that there are signs that inflation is coming under control.
Full Research:
https://quoteddata.com/research/baillie-gifford-uk-growth-trust-recipe-rerating-qd/
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NB: Marten & Co was paid to produce this note on Baillie Gifford UK Growth Trust Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.
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