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Baillie Gifford UK Growth Trust PLC on Friday said many of its investments have performed well despite a ‘lacklustre’ UK economy, as it posted a rise in its net asset value per share. The London-based investment firm focused on mid and smaller cap growth companies reported a NAV per share total return of 16.2% for the six months ended October 31, beating its benchmark, the FTSE All-Share Index, which returned 16.0% over the same period. NAV per share rose 13.3% to 228.0 pence from 201.2p, with Baillie Gifford UK Growth citing Just Group PLC, St James’s Place PLC and Renishaw PLC as ‘notable contributors’ during the period. Out of the larger holdings, the trust said Auto Trader Group PLC, Experian PLC and Wise PLC served as notable detractors to both relative and absolute performance. It added that not owning banks and Rolls-Royce Holdings PLC also detracted. The trust reported ‘encouraging’ signs during the period, with the UK equity market rising despite ‘an almost constant flow of poor economic and political news.’ However, it stated that the lack of growth seen in the UK economy has meant ‘little opportunity for UK growth stocks to shine and so the style headwind that Baillie Gifford has suffered over the past four years has continued.’ Shares in the trust were down 0.5% at 204.00p on Friday afternoon in London. It did not declare an interim dividend, flat with the prior year. The trust pays all dividends a single, final dividend. ‘Many of the companies we hold are already showing that they are able to grow even if the UK economy remains lacklustre. The real excitement would come if the UK was able to unleash its growth potential. While we wait impatiently for that to happen, a repeat of what we have just seen, a closing of the UK’s valuation discount and earnings growth from the companies we hold, would be a positive outcome,’ said Chair Neil Rogan. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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