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Baillie Gifford UK Growth Trust PLC on Friday said that it was hoping for lower interest rates and a more stable geopolitical backdrop as it underperformed against its benchmark. The London-based investment firm focused on mid and smaller cap growth companies said net asset value per share as at April 30 ticked down 1.3% to 193.0 pence from 195.6p a year prior. NAV total return in the financial year ended April 30 was 0.6%, sharply lower than its benchmark, the FTSE All-Share index, which had a total return of 7.5%. The company recommended a dividend of 5.60p per share, up 56% from 3.60p a year ago. Further, Baillie Gifford UK Growth confirmed that its new Chair Neil Rogan started his role on Friday, succeeding Carolan Dobson. ‘The portfolio managers and the board believe that the portfolio’s current valuations fail to adequately reflect the value of the progress being made by the investee companies. If this observation is correct, once the macro backdrop becomes more favourable for growth investors, for example lower interest rates and reduced levels of inflation and/or a more stable geopolitical backdrop, then the significantly higher growth expectations for the portfolio against the broader market should act as a catalyst for long-term share price appreciation,’ the now former chair Dobson said. Baillie Gifford UK Growth shares were 0.3% lower at 171.00 pence each on Friday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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