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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Baillie Gifford Us Growth Trust Plc | LSE:USA | London | Ordinary Share | GB00BDFGHW41 | ORD GBP0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 4.20 | 2.13% | 201.00 | 200.50 | 201.00 | 201.00 | 198.20 | 198.20 | 566,550 | 16:29:55 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Trust,ex Ed,religious,charty | -9.32M | -15.59M | -0.0511 | -39.33 | 613.36M |
From May 2019 to May 2024
TIDMUSA
RNS Number : 9299L
Baillie Gifford US Growth Trust PLC
18 January 2021
RNS Announcement
Baillie Gifford US Growth Trust plc ===================================
Legal Entity Identifier: 213800UMIOUWXZPKE539
Regulated Information Classification: Half Yearly Financial Report
Results for six months to 30 November 2020 ==========================================
During the six months to 30 November 2020, the Company's share price and NAV (after deducting borrowings at fair value) returned 50.8 per cent. and 53.8 per cent. respectively. This compares with a total return of 11.1 per cent. for the S&P 500 Index* (in sterling terms).
3/4 Moderna, held in the Company since 2018, is one of the biotechnology companies which has been at the forefront of coronavirus vaccine development.
3/4 In the energy sector, there's been an acceleration in the shift towards electric vehicles. 3/4 SpaceX, a private company investment, has been innovating at a breath-taking pace.
3/4 We are optimistic about what the future holds. The pace of innovation is speeding up and spreading out. This ought to be a fruitful environment for growth investors.
3/4 Kirsty Gibson will replace Helen Xiong as co-manager alongside Gary Robinson.
* Source: Refinitiv and relevant underlying index providers. See disclaimer at the end of this announcement.
Past performance is not a guide to future performance.
Baillie Gifford US Growth Trust seeks to invest predominantly in listed and unlisted 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 GBP810.3 million (before deduction of loans of GBP18.7 million) as at 30 November 2020.
Baillie Gifford US Growth Trust is managed by Baillie Gifford & Co, the Edinburgh based fund management group with approximately GBP335 billion under management and advice in active equity and bond portfolios for clients in the UK and throughout the world (as at 15 January 2021).
The following is the unaudited Interim Financial Report for the six months to 30 November 2020 which was approved by the Board on 15 January 2021.
Responsibility statement ========================
We confirm that to the best of our knowledge that:
a) the condensed set of Financial Statements has been prepared in accordance with FRS 104 'Interim Financial Reporting';
b) the Interim Management Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (being an indication of important events that have occurred during the first six months of the financial year, their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the financial year); and
c) the Interim Financial Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).
On behalf of the Board
Tom Burnet
Chairman
15 January 2021
Interim management report =========================
Investment Performance
During the period from 23 March 2018, launch date and first trade date, to 30 November 2020, the Company's share price and NAV (after deducting borrowings at fair value) returned 183.6 per cent. and 185.7 per cent. respectively. This compares with a total return of 56.2 per cent. for the S&P 500 Index* (in sterling terms). During the six months to 30 November 2020, the Company's share price and NAV (after deducting borrowings at fair value) returned 50.8 per cent. and 53.8 per cent. respectively. This compares with a total return of 11.1 per cent. for the S&P 500 Index* (in sterling terms). We have a long term approach and would ask shareholders to judge performance over periods of five years or more.
Portfolio
After a long and bleak year, we have entered 2021 with light at the end of the tunnel. Countries around the world are starting to vaccinate their populations. The number of people whose immune systems are primed to fight coronavirus is growing each day. We must not get complacent, and there is still a long road ahead, but there is a chance that we are now at the beginning of the end of the pandemic. We have science to thank for this. Vaccine development has traditionally taken years. There are many infectious diseases where there is still no vaccine available (e.g. HIV). The coronavirus vaccines have been developed in little over a year. Importantly, these vaccines are highly efficacious. It has been a huge effort which has required co-ordination amongst many parties. As well as capital and will, modern science has been an important catalyst for this breakthrough. One of the biotechnology companies which has been at the forefront of this development is Moderna. We have held it in the Trust since its IPO in 2018. The coronavirus vaccine is Moderna's first commercial product. Its approval has important read-across for Moderna's drug development platform more broadly
For decades drug discovery has largely been a process of trial and error. Our understanding of disease pathways has been relatively limited. Even in cases where diseases have been well understood we have had few tools with which to intervene. This has led to low success rates. Furthermore, in the traditional drug development model outcomes are independent of one another. Success with one drug tells you nothing about the probability of success with the next. But we may be entering a new era for drug development. One of true platforms, where success begets success. A cohort of biotechnology companies are emerging which are built upon foundational technologies which may be reusable across multiple diseases and disease categories. We think Moderna could be one such company.
Moderna makes drugs based on mRNA. mRNA is the intermediary molecule between our DNA, the blueprint of our body, and proteins, the functional units of our body. DNA makes RNA, and RNA makes protein. mRNA is an exciting drug candidate because, just like our DNA, it is 'digital' in nature. It is comprised of just four distinct building blocks, called bases. These bases can be combined in sequence to form long strings of mRNA code. These strings can then be delivered into cells to produce almost any chosen protein, human or non-human - for example the coronavirus spike protein. In other words, mRNA enables us to programme cells.
Moderna's success has not come easy. The work on coronavirus this year is the tip of the iceberg. The company has been investing in its mRNA platform for over a decade. It has had to overcome challenges with drug stability, delivery, and expression. However, now that these challenges have been solved in coronavirus, the learnings ought to be transferrable to the next vaccine that Moderna develops. This does not guarantee success by any means, but it makes the chances higher. Once Moderna has a DNA sequence of a protein to work on, it can be up and running with clinical trials in a matter of weeks. We are moving from a world of spaghetti at the wall drug development to something more akin to industrial manufacturing.
These developments would not have been possible without commensurate progress in our understanding of the molecular basis of disease. Techniques like low-cost whole-genome sequencing, which was pioneered by portfolio holding Illumina, have helped build our knowledge of the DNA that serves as the blueprint of life. More recently, Google's AI division DeepMind achieved a breakthrough in the field of protein folding. By using an AI-powered programme called AlphaFold, DeepMind was able to predict the 3D structure of a protein to a high degree of accuracy by just looking at the protein's corresponding DNA sequence. This problem has vexed scientists for half a century. Only a tiny fraction of protein structures have been solved. DeepMind achieved what experts thought would take another decade in two years. This breakthrough has the potential to drive a step change in our understanding of biology.
Healthcare is not the only sector which has seen major breakthroughs this year. In the energy sector, there has been an acceleration in the shift towards electric vehicles. Alternative energy sources such as solar have continued their march down the cost curve. Increasingly, they are competitive with carbon-based fuels. They are only going to get cheaper from here. And energy storage costs are falling too. At its recent battery day, Tesla mapped out a path to a further halving in battery costs. The way we produce, store, and consume energy is changing rapidly. For the better. The end of carbon is getting closer.
And then there is space. SpaceX has been innovating at a breath-taking pace. 2020 was the year that America sent astronauts to the space station again. SpaceX's crewed mission was a first for a private company. Starlink, SpaceX's satellite-based high-speed broadband service is up and running in beta, with over 900 satellites orbiting the earth delivering internet to users. And in Texas, SpaceX has been rapidly developing its Starship rocket, the vehicle it hopes will take people back to the Moon and then on to Mars.
Outlook
It has been a year of great pain and loss. But there has also been some important progress. As we look forward, we are optimistic about what the future holds. As we have said many times before, the pace of innovation is speeding up and spreading out. This ought to be a fruitful environment for growth investors.
Management Arrangements
The Company is pleased to announce the appointment of Kirsty Gibson as co-manager of the Baillie Gifford US Growth Trust, alongside Gary Robinson, with effect from 1 March 2021. Kirsty is an Investment Manager in Baillie Gifford's US Equities Team and a co-manager of the Baillie Gifford American Fund. Kirsty will replace Helen Xiong who joined Baillie Gifford's Global Alpha Team last year. Helen will work closely with Kirsty to ensure a smooth transition in portfolio management responsibilities.
The principal risks and uncertainties facing the Company are set out in note 11.
* Source: Refinitiv 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.
Past performance is not a guide to future performance.
Baillie Gifford Statement on Stewardship
Reclaiming Activism for Long-Term Investors
Baillie Gifford's over-arching ethos is that we are 'actual' investors. We have a responsibility to behave as supportive and constructively engaged long-term investors. We invest in companies at different stages in their evolution, across vastly different industries and geographies and we celebrate their uniqueness. Consequently, we are wary of prescriptive policies and rules, believing that these often run counter to thoughtful and beneficial corporate stewardship. Our approach favours a small number of simple principles which help shape our interactions with companies.
Our Stewardship Principles
Prioritisation of long-term value creation
We encourage company management and their boards to be ambitious and focus their investments on long-term value creation. We understand that it is easy for businesses to be influenced by short-sighted demands for profit maximisation but believe these often lead to sub-optimal long-term outcomes. We regard it as our responsibility to steer businesses away from destructive financial engineering towards activities that create genuine economic value over the long run. We are happy that our value will often be in supporting management when others do not.
A constructive and purposeful board
We believe that boards play a key role in supporting corporate success and representing the interests of minority shareholders. There is no fixed formula, but it is our expectation that boards have the resources, cognitive diversity and information they need to fulfil these responsibilities. We believe that a board works best when there is strong independent representation able to assist, advise and constructively test the thinking of management.
Long-term focused remuneration with stretching targets
We look for remuneration policies that are simple, transparent and reward superior strategic and operational endeavour. We believe incentive schemes can be important in driving behaviour, and we encourage policies which create alignment with genuine long-term shareholders. We are accepting of significant pay-outs to executives if these are commensurate with outstanding long-run value creation, but plans should not reward mediocre outcomes. We think that performance hurdles should be skewed towards long-term results and that remuneration plans should be subject to shareholder approval.
Fair treatment of stakeholders
We believe it is in the long-term interests of companies to maintain strong relationships with all stakeholders, treating employees, customers, suppliers, governments and regulators in a fair and transparent manner. We do not believe in one-size-fits-all governance and we recognise that different shareholder structures are appropriate for different businesses. However, regardless of structure, companies must always respect the rights of all equity owners.
Sustainable business practices
We look for companies to act as responsible corporate citizens, working within the spirit and not just the letter of the laws and regulations that govern them. We believe that corporate success will only be sustained if a business's long-run impact on society and the environment is taken into account. Management and boards should therefore understand and regularly review this aspect of their activities, disclosing such information publicly alongside plans for ongoing improvement.
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Income statement (unaudited)
============================
For the six months ended For the six months For the year ended
30 November 2020 ended 31 May 2020 (audited)
30 November 2019
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- -------- -------- -------- -------- -------- -------- -------- --------
Gains on sales of
investments - 35,050 35,050 - 8,133 8,133 - 2,030 2,030
Movement in investment
holding gains - 231,284 231,284 - 14,321 14,321 - 138,622 138,622
Currency gains - 492 492 - 283 283 - 88 88
Income from investments
and
interest receivable 328 - 328 312 - 312 595 - 595
Investment management
fee
(note 3) (2,056) - (2,056) (981) - (981) (2,206) - (2,206)
Other administrative
expenses (255) - (255) (171) - (171) (380) - (380)
======================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Net return before
finance costs
and taxation (1,983) 266,826 264,843 (840) 22,737 21,897 (1,991) 140,740 138,749
======================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Finance costs of
borrowings (165) - (165) (261) - (261) (485) - (485)
======================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Net return before
taxation (2,148) 266,826 264,678 (1,101) 22,737 21,636 (2,476) 140,740 138,264
======================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Tax (36) - (36) (38) - (38) (79) - (79)
======================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Net return after
taxation (2,184) 266,826 264,642 (1,139) 22,737 21,598 (2,555) 140,740 138,185
======================== ======== ======== ======== ======== ======== ======== ======== ======== ========
Net return per ordinary
share
(note 4) (0.80p) 98.00p 97.20p (0.48p) 9.65p 9.17p (1.05p) 57.85p 56.80p
======================== ======== ======== ======== ======== ======== ======== ======== ======== ========
The total column of this Statement represents the profit and loss account of the Company. The supplementary revenue and capital 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 the Company does not have any other comprehensive income and the net return after taxation is both the profit and comprehensive income for the period.
Balance sheet (unaudited)
=========================
At 30 November At 31 May 2020
2020 (audited)
GBP'000 GBP'000
=============================================================== ============== ==============
Fixed assets
Investments held at fair value through profit or loss (note 6) 795,132 474,136
=============================================================== ============== ==============
Current assets
Debtors 9,264 1,627
Cash and cash equivalents 18,647 16,089
=============================================================== ============== ==============
27,911 17,716
=============================================================== ============== ==============
Creditors
Amounts falling due within one year (note 7) (12,754) (15,650)
Net current assets 15,157 2,066
=============================================================== ============== ==============
Total assets less current liabilities 810,289 476,202
=============================================================== ============== ==============
Creditors
Amounts falling due after more than one year (note 7) (18,670) -
=============================================================== ============== ==============
Net assets 791,619 476,202
=============================================================== ============== ==============
Capital and reserves
Share capital 2,827 2,618 Share premium account 167,173 116,607 Special distributable reserve 168,942 168,942 Capital reserve 459,470 192,644 Revenue reserve (6,793) (4,609) =============================================================== ============== ============== Shareholders' funds 791,619 476,202 =============================================================== ============== ============== Net asset value per ordinary share (after deducting borrowings at book value) 280.01p 181.92p =============================================================== ============== ============== Ordinary shares in issue (note 8) 282,715,000 261,765,000 =============================================================== ============== ============== Statement of changes in equity (unaudited) ==========================================
For the six months to 30 November 2020
Share premium Special
Share capital account distributable Capital Revenue Shareholders'
GBP'000 GBP'000 reserve reserve* reserve funds
GBP'000 GBP'000 GBP'000 GBP'000
================ =============== =============== =============== =============== =============== ===============
Shareholders'
funds at 1 June
2020 2,618 116,607 168,942 192,644 (4,609) 476,202
Ordinary shares
issued (note 8) 209 50,566 - - - 50,775
Net return after
taxation - - - 266,826 (2,184) 264,642
================ =============== =============== =============== =============== =============== ===============
Shareholders'
funds at 30
November 2020 2,827 167,173 168,942 459,470 (6,793) 791,619
================ =============== =============== =============== =============== =============== ===============
For the six months to 30 November 2019
Share premium Special
Share capital account distributable Capital Revenue Shareholders'
GBP'000 GBP'000 reserve reserve* reserve funds
GBP'000 GBP'000 GBP'000 GBP'000
================ =============== =============== =============== =============== =============== ===============
Shareholders'
funds at 1 June
2019 2,298 68,839 168,942 51,904 (2,054) 289,929
Ordinary shares
issued 134 18,271 - - - 18,405
Net return after
taxation - - - 22,737 (1,139) 21,598
================ =============== =============== =============== =============== =============== ===============
Shareholders'
funds at 30
November 2019 2,432 87,110 168,942 74,641 (3,193) 329,932
================ =============== =============== =============== =============== =============== ===============
* The capital reserves as at 30 November 2020 includes investment holding gains of GBP417,768,000 (30 November 2019 - gains of GBP62,182,000).
Cash flow statement (unaudited) ===============================
For the six months to 30 November
2020 2019
GBP'000 GBP'000
============================================= ========= ========
Cash flows from operating activities
Net return before taxation 264,678 21,636
Net gains on investments (266,334) (22,454)
Currency gains (492) (283)
Finance costs of borrowings 165 261
Overseas withholding tax incurred (38) (38)
Changes in debtors and creditors 1,139 29
============================================= ========= ========
Cash from operations* (882) (849)
Finance costs paid (199) (271)
============================================= ========= ========
Net cash outflow from operating activities (1,081) (1,120)
============================================= ========= ========
Cash flows from investing activities
Acquisitions of investments (100,139) (41,978)
Disposals of investments 48,401 24,219
============================================= ========= ========
Net cash outflow from investing activities (51,738) (17,759)
============================================= ========= ========
Cash flows from financing activities
Ordinary shares issued 50,775 18,405
Bank loans drawn down 67,932 26,298
Bank loans repaid (62,632) (23,963)
============================================= ========= ========
Net cash inflow from financing activities 56,075 20,740
============================================= ========= ========
Increase in cash and cash equivalents 3,256 1,861
Exchange movements (698) (37)
Cash and cash equivalents at start of period 16,089 5,952
============================================= ========= ========
Cash and cash equivalents at 30 November 18,647 7,776
============================================= ========= ========
* Cash from operations includes dividends received in the period of GBP250,000 (30 November 2019 - GBP271,000)
and interest received of GBP4,000 (30 November 2019 - GBP41,000).
List of investments as at 30 November 2020 (unaudited)
======================================================
2020 2020
Value % of total
Name Business GBP'000 assets*
=============================== =================================================== ======== ===========
Tesla Electric cars, autonomous driving and solar energy 76,706 9.5
Shopify Class A Cloud-based commerce platform provider 52,822 6.5
Amazon Online retailer and cloud computing provider 47,841 5.9
The Trade Desk Advertising technology company 43,869 5.4
Wayfair Online furniture and homeware retailer 34,080 4.2
Roku Online media player 24,375 3.0
Zoom Video Communications Remote conferencing service provider 24,012 3.0
Netflix Subscription service for TV shows and movies 22,605 2.8
Appian Enterprise software developer 20,080 2.5
Stripe Series G Preferred (u) Online payment platform 19,169 2.4
Peloton Inc Connected fitness equipment 18,109 2.2
Peloton Interactive Connected fitness equipment 950 0.1
======== ===========
19,059 2.3
Alphabet Class A Online search and other online services 18,918 2.3
Twilio Cloud-based communications platform 16,788 2.1
Chegg Online education company 15,956 2.0
Mastercard Class A Global electronic payments network 15,196 1.9
Moderna Therapeutic messenger RNA 14,466 1.8
Chewy Online pet supplies retailer 14,369 1.8
First Republic Bank Private banking 14,355 1.8
Carvana Online platform for buying used cars 13,622 1.7
Illumina Gene sequencing equipment and consumables 12,743 1.6
Novocure Electric field based cancer therapies 12,420 1.5
Cloudflare Cloud-based provider of network services 12,130 1.5
Space Exploration Technologies
Series J Preferred (u) Rocket and spacecraft company 6,524 0.8
Space Exploration Technologies
Series N Preferred (u) Rocket and spacecraft company 3,745 0.5
Space Exploration Technologies
Series K Preferred (u) Rocket and spacecraft company 1,487 0.2
======== ===========
11,756 1.5
Workday Enterprise information technology 11,573 1.4
CoStar Group Commercial property information provider 11,444 1.4
Teladoc Telemedicine services provider 10,850 1.3
2020 2020
Value % of total
Name Business GBP'000 assets*
====================================== ======================================================= ======== ===========
Developer of a SaaS-based cloud data warehousing
Snowflake Class B Common platform 6,729 0.8
Developer of a SaaS-based cloud data warehousing
Snowflake Inc platform 3,501 0.4
======== ===========
10,230 1.2
ABIOMED Manufacturer of heart pumps 9,977 1.2
MarketAxess Holdings Electronic bond trading platform 9,914 1.2
Redfin Technology-based real estate brokerage firm 9,859 1.2
Butterfly Network Series D
Preferred (u) Portable ultrasound and diagnostics 3,221 0.4
Butterfly Network Promissory 2020B
Note (u) Portable ultrasound and diagnostics 3,191 0.4
Butterfly Network Promissory Note (u) Portable ultrasound and diagnostics 2,734 0.3
======== ===========
9,146 1.1
NVIDIA Graphics chips 8,474 1.0
Air conditioning, heating and refrigeration equipment
Watsco distributor 8,424 1.0
Denali Therapeutics Clinical stage neurodegeneration company 8,271 1.0
Slack Technologies Collaboration software 8,229 1.0
Affirm Series G Preferred (u) Consumer finance 2,885 0.4
Affirm Series F Preferred (u) Consumer finance 2,180 0.3
Affirm Series A Preferred (u) Consumer finance 1,375 0.2
Affirm Series G-1 Preferred (u) Consumer finance 1,135 0.1
======== ===========
7,575 1.0
Zillow Group Class A US online real estate services 7,376 0.9
Penumbra Medical tools to treat vascular diseases 6,908 0.8
Vroom Online platform for buying used cars 6,860 0.8
Alnylam Pharmaceuticals Therapeutic gene silencing 6,330 0.8
Stitch Fix Online clothing retailer 6,322 0.8
Glaukos Ophthalmic medical technology company 6,281 0.8
Tanium Class B Common (u) Online security management 6,079 0.8
Datadog IT monitoring and analytics platform 6,024 0.7
Lemonade Insurance company 5,257 0.6
Warby Parker (JAND Inc) Series A
Preferred (u) Online and physical glasses retailer 2,751 0.3
Warby Parker (JAND Inc) Series C
Preferred (u) Online and physical glasses retailer 2,325 0.3
======== ===========
5,076 0.6
2020 2020
Value % of total
Name Business GBP'000 assets*
=============================== ======================================================= ======== ===========
RigUp Series D Preferred (u) Jobs marketplace for the energy sector 3,861 0.5
RigUp Series D-1 Preferred (u) Jobs marketplace for the energy sector 858 0.1
======== ===========
4,719 0.6
Ginkgo Bioworks Series E Bioengineering company developing micro organisms that
Preferred (u) produce various proteins 4,669 0.6
Epic Games (u) Video game platform and software developer 4,494 0.6
HEICO Class A Aerospace parts 4,240 0.5
Zipline International Series C
Preferred (u) Drone-based medical delivery 4,124 0.5
Nuro Inc, Preferred (u) Self-driving vehicles for local delivery 3,745 0.5
Yext Digital knowledge management 3,673 0.5
Convoy Series D Preferred (u) Marketplace for truckers and shippers 3,646 0.4
Honor Technology (u) Home care provider 2,996 0.4
Away (JRSK Inc) Series D
Preferred (u) Travel and lifestyle brand 1,266 0.2
Away (JRSK Inc) Convertible
Promissory Note (u) Travel and lifestyle brand 1,124 0.1
Away (JRSK Inc) Series Seed
Preferred (u) Travel and lifestyle brand 603 0.1
======== ===========
2,993 0.4
Indigo Agriculture Series E
Preferred (u) Agricultural technology company 1,722 0.2
Indigo Agriculture Series F
Preferred (u) Agricultural technology company 486 0.1
Indigo Agriculture Common (u) Agricultural technology company 99 <0.1
======== ===========
2,307 0.3
Thumbtack Class A Common (u) Online directory service for local businesses 2,120 0.3
Niantic Series C Preferred (u) Augmented reality games 2,096 0.3
Lyft Ridesharing 2,050 0.2
Aurora Innovation Series B
Preferred (u) Self-driving technology 1,877 0.2
Airbnb Class A Common (u) Online market place for travel accommodation 1,407 0.2
Airbnb Series D Preferred (u) Online market place for travel accommodation 104 <0.1
Airbnb Series E Preferred (u) Online market place for travel accommodation 56 <0.1
======== ===========
1,567 0.2
======== ===========
Total Investments 795,132 98.1
Net Liquid Assets 15,157 1.9
======================================================================================== ======== ===========
Total Assets 810,289 100.0
======================================================================================== ======== ===========
* See Glossary of Terms and Alternative Performance Measures at the end of this announcement.
(u) Denotes unlisted (private company) security.
Listed Unlisted Net liquid Total
equities securities assets assets
% % % %
------------------ ---------- ------------ ----------- --------
30 November 2020 85.4 12.7 1.9 100.0
------------------ ---------- ------------ ----------- --------
31 May 2020 84.4 12.2 3.4 100.0
------------------ ---------- ------------ ----------- --------
Figures represent percentage of total assets.
Includes holdings in ordinary share, preference shares and promissory notes.
Distribution of total assets(*) (unaudited) ===========================================
Sectoral Analysis
As at 30 November 2020 As at 31 May 2020
% %
======================= ====================== =================
Communication Services 9.0 12.2
Consumer Discretionary 30.4 27.2
Consumer Staples 0.3 0.5
Financials 7.0 8.9
Healthcare 12.3 13.7
Industrials 6.6 7.8
Information Technology 30.7 24.3
Materials 0.6 0.7
Real Estate 1.2 1.3
Net Liquid Assets 1.9 3.4
Total Assets 100.0 100.0
======================= ====================== =================
* See Glossary of Terms and Alternative Performance Measures at the end of this announcement.
Notes to the condensed financial statements (unaudited)
=======================================================
1. The condensed Financial Statements for the six months to 30 November 2020 comprise the statements
set out above together with the related notes below. They have been prepared in accordance
with FRS 104 'Interim Financial Reporting' and the AIC's Statement of Recommended Practice
issued in November 2014, updated in October 2019 with consequential amendments and have not
been audited or reviewed by the Auditor pursuant to the Auditing Practices Board Guidance
on 'Review of Interim Financial Information'. The Financial Statements for the six months
to 30 November 2020 have been prepared on the basis of the same accounting policies as set
out in the Company's Annual Report and Financial Statements for the year ended 31 May 2020.
Going Concern
Having considered the nature of the Company's principal risks and uncertainties, as set out
in note 11 of this announcement, together with its current position, investment objective
and policy, its assets and liabilities, and projected income and expenditure, together with
the Company's dividend policy, it is the Directors' opinion that the Company has adequate
resources to continue in operational existence for the foreseeable future. The Board has,
in particular, considered the impact of heightened market volatility since the coronavirus
(Covid-19) outbreak but does not believe the Company's going concern status is affected. The
Company's assets, the majority of which are investments in quoted securities which are readily
realisable, exceed its liabilities significantly. All borrowings require the prior approval
of the Board. Gearing levels and compliance with borrowing covenants are reviewed by the Board
on a regular basis. The Company has continued to comply with the investment trust status requirements
of section 1158 of the Corporation Tax Act 2010 and the Investment Trust (Approved Company)
(Tax) Regulations 2011. Accordingly, the Directors consider it appropriate to adopt the going
concern basis of accounting in preparing these Financial Statements and confirm that they
are not aware of any material uncertainties which may affect the Company's ability to continue
to do so over a period of at least twelve months from the date of approval of these Financial
Statements.
2. The financial information contained within this Interim Financial Report does not constitute
statutory accounts as defined in sections 434 to 436 of the Companies Act 2006. The financial
information for the year to 31 May 2020 has been extracted from the statutory accounts which
have been filed with the Registrar of Companies. The Auditor's Report on those accounts was
not qualified, did not include a reference to any matters to which the Auditor drew attention
by way of emphasis without qualifying the report, and did not contain a statement under sections
498(2) or (3) of the Companies Act 2006.
3. The Company has appointed Baillie Gifford & Co Limited, a wholly owned subsidiary of Baillie
Gifford & Co, as its Alternative Investment Fund Manager and Company Secretary. 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 Management Agreement can be terminated
on six months' notice.
The annual management fee is 0.70% on the first GBP100 million of net assets and 0.55% on
the remaining net assets. Management fees are calculated and payable quarterly.
4.
For the six months For the six months For the year
to to ended
30 November 2020 30 November 2019 31 May 2020
(audited)
==================== ====================== ====================== ==================
GBP'000 GBP'000 GBP'000
==================== ========== ========== ========== ========== ======== ========
Net return per
ordinary
share
Revenue return
after
taxation (2,184) (0.80p) (1,139) (0.48p) (2,555) (1.05p)
Capital return
after
taxation 266,826 98.00p 22,737 9.65p 140,740 57.85p
==================== ========== ========== ========== ========== ======== ========
Net return 264,642 97.20p 21,598 9.17p 138,185 56.80p
==================== ========== ========== ========== ========== ======== ========
Weighted average
number
of ordinary shares
in
issue 272,262,541 235,496,148 243,286,434
==================== ====================== ====================== ==================
Net return per ordinary share is based on the above totals of revenue and capital and the
weighted average number of ordinary shares in issue during each period. There are no dilutive
or potentially dilutive shares in issue.
Notes to the condensed financial statements (unaudited) (ctd)
5. No interim dividend has been declared. The Company's objective is to produce capital growth
and the policy is only to distribute, by way of a final dividend, the minimum required to
maintain investment trust status. It is not currently envisaged that any dividend will be
paid in the foreseeable future.
6. 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).
An analysis of the Company's financial asset investments based on the fair value hierarchy
described above is shown below.
Investments held at fair value through profit or loss
===========================================================================================================
Level 1 Level 2 Level 3 Total
As at 30 November 2020 GBP'000 GBP'000 GBP'000 GBP'000
============================================= =============== ============= ============ ==============
Listed securities 694,978 - - 694,978
Unlisted ordinary shares - - 17,195 17,195
Unlisted preference shares* - - 75,910 75,910
Unlisted promissory notes - - 7,049 7,049
================================================= =============== ============= ============ ==============
Total financial asset
investments 694,978 - 100,154 795,132
================================================= =============== ============= ============ ==============
Level 1 Level 2 Level 3 Total
As at 31 May 2020 GBP'000 GBP'000 GBP'000 GBP'000
============================================= =============== ============= ============ ==============
Listed securities 414,486 - - 414,486
Unlisted ordinary shares - - 6,407 6,407
Unlisted preference shares* - - 50,134 50,134
Unlisted promissory notes - - 3,109 3,109
------------------------------------------------- --------------- ------------- ------------ --------------
Total financial asset
investments 414,486 - 59,650 474,136
------------------------------------------------- --------------- ------------- ------------ --------------
* 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 takeover.
Notes to the condensed financial statements (unaudited) (ctd)
The valuation techniques used by the Company are explained in the accounting policies on pages
44 to 45 of the Annual Report and Financial Statements for the year ended 31 May 2020. Listed
investments are categorised as Level 1 if they are valued using unadjusted quoted prices for
identical instruments in an active market and as Level 2 if they do not meet all these criteria
but are, nonetheless, valued using market data. The Company's holdings in unlisted investments
are categorised as Level 3 as unobservable data is a significant input to their fair value
measurements.
During the period investments with a book cost of GBP868,000 (31 May 2019 - GBP4,666,000)
were transferred from Level 3 to Level 1 on becoming listed .
7. During the period the Company entered into a new US$25,000,000 three year fixed rate facility
with five ING Bank N.V., London Branch which expires on 23 October 2023 which is in addition
to the existing US$25,000,000 five year revolving credit facility with ING Bank N.V., London
Branch which expires on 1 August 2023. At 30 November 2020 creditors falling due after more
than one year include borrowings of US$25,000,000 (sterling value GBP18,670,000) drawn down
under the three year fixed rate facility, there were no drawings under the five year revolving
credit facility (31 May 2020 - creditors falling due within one year included US$18,000,000
(sterling value GBP14,560,000) drawn under the five year revolving credit facility).
The fair value of borrowings as at 30 November 2020 was GBP19,025,000 (31 May 2020 - GBP14,560,000).
8. 30 November 30 November 31 May 31 May
2020 2020 2020 2020
Number GBP'000 Number GBP'000
===================================== ============ =========== ============ ========
Share capital
Allotted, called up and fully paid
ordinary
shares of 1p each 282,715,000 2,827 261,765,000 2,618
------------------------------------- ------------ ----------- ------------ --------
The Company has authority to allot shares under section 551 of the Companies Act 2006. The
Board has authorised use of this authority to issue new shares at a premium to net asset value
in order to enhance the net asset value per share for existing shareholders and improve the
liquidity of the Company's shares. In the six months to 30 November 2020, the Company issued
a total of 20,950,000 shares (nominal value GBP209,000, representing 8.0% of the issued share
capital at 31 May 2020) on a non pre-emptive basis at a premium to net asset value (on the
basis of debt valued at par value), raising net proceeds of GBP50,775,000 (in the year to
31 May 2020, the Company issued a total of 31,965,000 shares (nominal value GBP320,000, representing
13.9% of the issued share capital at 31 May 2019) raising net proceeds of GBP48,088,000),
which has been invested in accordance with the Company's investment policy.
Over the period from 30 November 2020 to 15 January 2021 the Company has issued a further
5,125,000 shares at a premium to net asset value, raising net proceeds of GBP15,718,000.
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 9 October 2020. No shares
were bought back in the six months to 30 November 2020. At 30 November 2020 the Company had
authority to buy back 40,332,843 ordinary shares.
9. During the period the Company incurred transaction costs on purchases of investments of GBP26,000
(six months to 30 November 2019 - GBP7,000; year to 31 May 2020 - GBP20,000) and transaction
costs on sales of GBP8,000 (six months to 30 November 2019 - GBP8,000; year to 31 May 2020
- GBP18,000).
10. Related party transactions
There have been no transactions with related parties during the first six months of the current
financial year that have materially affected the financial position or the performance of
the Company during that period and there are no changes in the related party transactions
described in the last Annual Report and Financial Statements that could have had such an effect
on the Company during that period.
Notes to the condensed financial statements (unaudited) (ctd)
11. Principal risks and uncertainties
The principal risks facing the Company are financial risk, unlisted investments, investment
strategy risk, discount risk, regulatory risk, custody and depositary risk, operational risk,
leverage risk and political and associated economic risk.
An explanation of these risks and how they are managed is set out on pages 5 and 6 of the
Company's Annual Report Financial Statements for the year ended 31 May 2020 which is available
on the Company's website:
www.bgusgrowthtrust.com ++ .
The principal risks and uncertainties have not changed since the date of that report with
the exception of the ongoing situation regarding Covid-19. The Board and Managers continue
to review the portfolio for the potential impact of the pandemic. The business continuity
arrangements of the Managers and other third party service providers have proven robust with
operations continuing largely as normal .
12. The Interim Financial Report will be available at www.bgusgrowthtrust.com ++ and will be posted
to shareholders on or around 29 January 2021.
++ Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.
None of the views expressed in this document should be construed as advice to buy or sell a particular investment.
Glossary of Terms and Alternative Performance Measures ('APM')
An alternative performance measure 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 served to improve comparability between
investment trusts.
Total Assets
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.
Net Asset Value (Borrowings at Book)
Borrowings are valued at nominal par value (book cost).
Net Asset Value (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 in note 7 above and a reconciliation to net asset value with borrowings at
book value is provided below.
==========================================================================================================
30 November 2020 31 May 2020
==================================================================== ================== ================
Net asset value per ordinary share (borrowings at book value) 280.01p 181.92p
==================================================================== ================== ================
Shareholders' funds (borrowings at book value) GBP791,619,000 GBP476,202,000
Add: book value of borrowings GBP18,670,000 GBP14,560,000
Less: fair value of borrowings (GBP19,025,000) (GBP14,560,000)
==================================================================== ================== ================
Shareholders' funds (borrowings at fair value) GBP791,264,000 GBP476,202,000
==================================================================== ================== ================
Number of shares in issue 282,715,000 261,765,000
==================================================================== ================== ================
Net asset value per ordinary share (borrowings at fair value) 279.88p 181.92p
==================================================================== ================== ================
Net Liquid Assets
Net liquid assets comprise current assets less current liabilities (excluding borrowings).
Discount/Premium (APM)
As stockmarkets 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 share price from
the NAV per share and is usually expressed as a percentage of the NAV per share. If the share
price is higher than the NAV per share, this situation is called a premium.
Total Return (APM)
The total return is the return to shareholders after reinvesting the dividend on the date
that the share price goes ex-dividend.
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 borrowings
at fair value).
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.
Potential gearing is the Company's borrowings expressed as a percentage of shareholders' funds.
Invested gearing is the Company's borrowings at par less cash and brokers' balances expressed
as a percentage of shareholders' funds.
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers Directive, 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, 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.
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'). Standard & Poor's(R) and S&P(R) are registered trademarks of Standard & Poor's Financial Services LLC, a division of S&P Global ('S&P'); Dow Jones(R) is a registered trademark of Dow Jones Trademark Holdings LLC ('Dow Jones'). Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
Baillie Gifford US Growth Trust plc is a listed UK company. The value of its shares and any income from them can fall as well as rise 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. Investment in investment trusts should be regarded as medium to long-term. The Company's risk could be increased by its investment in unlisted investments. These assets may be more difficult to sell, so changes in their prices may be greater. The Company is listed on the London Stock Exchange and is not authorised or regulated by the Financial Conduct Authority. You can find up to date performance information about Baillie Gifford US Growth Trust plc on the US Growth page of the Managers' website at www.bgusgrowthtrust.com ++
++ Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.
For further information please contact:
Alex Blake Baillie Gifford & Co
Tel 0131 275 2859
Mark Knight, Director, Four Communications
Tel 0203 697 4200 or 07803 758810
18 January 2021
- ends -
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