TIDMBGUK
RNS Number : 9095C
Baillie Gifford UK Growth Trust PLC
16 June 2023
Baillie Gifford UK Growth Trust plc
Legal Entity Identifier: 549300XX386SYWX8XW22
Results for the year to 30 April 2023
For the year to 30 April 2023, the Company's net asset value
('NAV') total return (capital and income) was 1.1% compared to 6.0%
for the FTSE All-Share Index total return. The share price total
return for the same period was negative 1.3%.
3/4 The largest detractors to relative performance were: Molten
Ventures, a technology focused venture capital firm; FDM Group, a
provider of professional services focusing on information
technology; Helical, a property developer; and Farfetch, an online
luxury fashion retailer. Not holding BP was also a notable
detractor.
3/4 The notable positive contributors to relative performance
were toy manufacturer and retailer, Games Workshop, luxury goods
retailer, Burberry, and the direct marketer of promotional
merchandise, 4imprint.
3/4 Two new positions were initiated in the period: IT
infrastructure provider Softcat; and, the digitisation specialist
Kainos. One position was sold, online food ordering and delivery
company Just Eat Takeaway.com. The positions in Euromoney
Institutional Investor and Homeserve were exited following
takeovers.
3/4 The net revenue return for the year was 4.05p per share
(2022: 4.39p). A final dividend of 3.60p per share is being
recommended (2022: 3.91p). The dividend is paid by way of a single
final payment.
3/4 Over the year a total of 2,975,000 shares were bought back
into treasury. Since period end to 14 June 2023, a further 105,000
shares have been bought back into treasury.
3/4 The Board and Managers believe the portfolio to have
attractive growth fundamentals and the vast majority of holdings
are expected to grow well in excess of the market over the longer
term and are high quality and resilient.
Total return information is sourced from Baillie
Gifford/Refinitiv. 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.
Baillie Gifford UK Growth Trust plc invests to achieve capital
growth predominantly from investment in UK equities with the aim of
providing a total return in excess of the FTSE All-Share Index.
The Company is managed by Baillie Gifford & Co, an Edinburgh
based fund management group with around GBP234 billion under
management and advice as at 14 June 2023.
Past performance is not a guide to future performance. Baillie
Gifford UK 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. 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 UK Growth Trust
plc at bgukgrowthtrust.com.++ See disclaimer at the end of this
announcement.
++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:
Anzelm Cydzik, Baillie Gifford & Co
Tel: 0131 275 2000
Jonathan Atkins, Four Communications
Tel: 020 3103 9553 or 07872 495 396
The following is the results announcement for the year to 30
April 2023 which was approved by the Board on 15 June 2023.
Chairman's Statement
Performance
For the year to 30 April 2023, the Company's net asset value
('NAV') total return (capital and income) was 1.1% compared to 6.0%
for the FTSE All-Share Index total return. Whilst the wild
divergence of performance in the share prices of companies
perceived to offer either growth or value was more muted this year
compared to last, it still persisted, resulting in a disappointing
return from a portfolio focused on growth companies. There were
also some disappointing individual company outcomes, see the
Managers' Report below, but no more than might be normally
expected. The Company's share price total return over the same
period was negative 1.3%.
Examining in detail the current profits and turnover and the
portfolio managers' expectations for future trading for the
companies in the portfolio shows that the majority of the companies
at the profits and revenue level are performing as expected against
a backdrop of a difficult UK economy with interest rates and
inflation sharply higher than for the last 15 years. The portfolio
managers continue to be enthused by the long term prospects of the
companies held, as evidenced by the low level of portfolio turnover
over the year, of 5%.
Share Issuance and Buy-backs
There has been little investor appetite to invest in UK equities
over the past year and this, coupled with some disappointing
performance, has resulted in the shares standing at the financial
year end at a 14.1% discount to the Company's NAV compared to 11.8%
a year earlier. The discount on the AIC UK All Companies sector was
11.9% compared to 10.6% for the same period last year.
The Company's share buy-back policy seeks to operate in the best
interests of shareholders by taking into account the relative level
of the Company's share price discount to NAV when compared with
peer group trusts, the absolute level of discount, volatility in
the level of discount and the impact from share buy-back activity
on the long-term liquidity of the Company's issued shares.
The Company has steadily bought back shares throughout the year,
buying into treasury 2,975,000 shares, which represents 1.9% of the
Company's issued share capital as at 30 April 2022. Since the
financial year end, a further 105,000 shares have been bought back
into treasury. However, it needs more investor demand for UK growth
equities to materially narrow the Company's discount.
The Company benefits from the flexibility of being able to issue
new shares or to re-issue any shares that might be held in treasury
when there is sufficient demand at a premium to NAV as this helps
to improve trading liquidity and reduces ongoing costs by being
asset accretive. The Company is seeking to renew the annual
issuance authority at its Annual General Meeting ('AGM'). To avoid
any dilution to existing investors, shares held in treasury and any
new shares would only be re-issued/issued at a premium to NAV and
after associated costs.
Gearing
During the year, the Company replaced its one-year GBP20m
revolving credit facility with The Royal Bank of Scotland
International Limited with a one-year GBP30m revolving credit
facility with the same counterparty. Drawn and invested gearing
stood at 5% and 3% of shareholders' funds as at the Company's year
end compared to 2% for both a year earlier.
The Board sets internal guidelines for the portfolio managers'
use of gearing which are altered from time to time but are subject
to the absolute amount of any gearing not representing more than
20% of net asset value of the Company at the time of drawdown.
Should the level be subsequently breached, then the portfolio
managers would be asked to make sales should there be insufficient
cash available to reduce the absolute amount of any gearing to
below 20%.
Earnings and Dividends
The net revenue return per share for the year was 4.05p, versus
4.39p in 2022. A final dividend of 3.60p per share, payable on 15
September 2023 to shareholders on the register as at 18 August
2023, is being recommended to shareholders.
The Company's priority is capital growth so shareholders should
not rely on receiving a regular or growing level of income from
their investment in this Company. Any dividend paid is by way of a
single final payment and the Board expects that such dividends
would represent approximately the minimum permissible to maintain
investment trust status after taking account of variables.
Board Composition
I intend to step down from the Board no later than next year's
AGM and, in line with good corporate governance, will play no role
in the recruitment of my successor. Accordingly, I have asked Mr
Andrew Westenberger to chair a Nomination Committee to appoint my
successor.
An external recruitment consultant will be engaged shortly to
undertake the selection of a list of suitable candidates for
consideration by the Nomination Committee, after which a
recommendation will be put to the Board for approval. The external
recruitment consultant will be asked to put forward candidates with
the desired skillset and also with a diverse range of
characteristics. The Board is ambitious to meet and support the
Listing Rule diversity targets and will take these and any other
best practice matters into account when determining the
appropriateness of a candidate and final appointment. The
importance of diversity will be an important factor in the
candidate shortlist.
TCFD and Consumer Duty
The Board welcomes the new FCA regulation which requires
Managers of UK based investment vehicles, including investment
trusts such as Baillie Gifford UK Growth Trust managed by Baillie
Gifford, to produce product-level TCFD (Task Force on
Climate-related Financial Disclosures) reports. These reports are a
framework designed to disclose information to investors and other
stakeholders about the climate-related risks and opportunities in
the respective investment vehicle and are a snapshot in time. The
Board sees this as a valuable addition to the detailed information
already provided by Baillie Gifford to help shareholders assess the
climate impact of the investment portfolio. The report produced by
Baillie Gifford for our Company, as at end December 2022 and which
will be updated annually, can be found at bgukgrowthtrust.com. It
shows the portfolio measuring favourably across a number of metrics
when compared to the FTSE All-Share benchmark.
The FCA has also introduced new regulations designed to place
the interests of consumers at the heart of the businesses it
regulates. Investment trusts that are externally managed and not
authorised by the FCA, like Baillie Gifford UK Growth Trust plc,
are not themselves in scope for the new Consumer Duty regulations,
although they and their boards continue to be subject to duties
under the Companies Act, the Listing Rules and the Corporate
Governance Code. Baillie Gifford as the Company's Manager is
subject to the Consumer Duty regulations in respect of a number of
its investment products, including shares in the Company. One of
its obligations is to undertake an Assessment of Value on these
'products' on a regular basis appropriate to the nature and
duration of the product. This assessment is similar, though not
identical, to the annual evaluation conducted by the Board of
performance and quality of service, costs and shareholder interest.
Baillie Gifford has conducted its initial Assessment of Value on
Baillie Gifford UK Growth Trust plc and has concluded that the
Company does provide value. This Assessment of Value will enable
distributors of the Company's shares (such as platforms) to
undertake their own assessments under the Consumer Duty regulations
and continue to make shares in Baillie Gifford UK Growth Trust plc
available to current and potential shareholders.
Annual General Meeting
It is intended that the Company's AGM will be held on Thursday 7
September 2023 at 12.00 noon at the Institute of Directors, 116
Pall Mall, London SW1Y 5ED. Shareholders are warmly invited to
attend. Should the situation change, further information will be
made available through the Company's website at bgukgrowthtrust.com
and the London Stock Exchange regulatory news service. The meeting
will include a presentation by the portfolio managers on the
prospects for UK equities and the positioning of the portfolio.
They and the Board will be available to answer any questions. Light
refreshments will be available.
Outlook
Whilst the broader macro-economic environment is undoubtedly
uncertain, the vast majority of holdings in the portfolio are
expected to grow well in excess of the market and are high quality
and resilient. The portfolio managers aim to hold future winners
through the cycle, so financial resilience is particularly
important. This is why they do not typically invest in highly
indebted companies, which means that the portfolio has a lower net
debt-to-equity ratio compared to the broader index.
The portfolio managers' approach remains one of patient
investment in a portfolio of growth companies, with strong
competitive positions, run by sensible management teams. As
long-term stock pickers, the portfolio managers are well placed to
assess and invest in such names.
Carolan Dobson
Chairman
15 June 2023
For a definition of terms, see Glossary of Terms and Alternative
Performance Measures at the end of this announcement.
Managers' Report
We are disappointed and sorry to be writing to fellow
shareholders about a poor year of relative performance for the
portfolio. While we totally understand that you might be despondent
or frustrated, we remain firmly of the view that the portfolio is
well positioned for the future and as a consequence portfolio
turnover has remained low at 5%. If one thinks in terms of
half-year periods, the Company has endured a difficult period of
performance since November 2021 up to the end of October 2022. The
principal reasons for that were a toxic combination of our 'Growth
style' falling out of favour and a few large UK mega-cap stocks
such as big oil and big pharma performing better in tougher or more
uncertain times. Of course, some of our stock picking hasn't been
ideal either but the data is pretty unambiguous. The style
headwinds we have encountered are the biggest factor for the
underperformance. For example, the biggest detractor to performance
over the year to end April 2023 was Molten Ventures, the investor
in private growth businesses. Unsurprisingly, given the fall in
valuations of private companies globally, it recently announced
that its unaudited net asset value had declined by 17% in the year
to 31 March 2023. So yes, a tougher year for Molten but its share
price declined by 59% meaning that at our year-end Molten traded at
a 60% discount to this lower valuation. Clearly the stockmarket
expects further valuation declines but this extreme pessimism seems
at odds with the underlying progress Molten has seen in most of its
main investments.
It begs the question of whether our growth style is simply
misguided and we need to adapt to different times? We can only
address the question with humility as we cannot be sure that we
'know' the correct answer. Our experience tells us two things:
firstly, many people want simple answers to complex problems, which
explains the rise of populist politicians in many countries. This
type of thinking is seductive and persuasive after poor periods of
performance and probably explains why 'style drift' is the biggest
'killer' of fund managers. We are not complacent and have debated
between ourselves, and also with the Board (one of the great
benefits of the investment trust structure), as to whether we could
or should have done things differently in the last two years. The
answer in both cases is that, as bottom-up stock pickers, we should
continue to back our judgement. Indeed, to be blunt, had we tried
to chase short term performance, it would have meant endorsing a
skill that we have repeatedly said we lack and also abandoning our
investment principles. Attempting both would have created more
problems and concerns without necessarily having improved
performance.
The second observation from experience is that as individual
managers we have been through long patches of underperformance
before and the key lesson learnt is to stay true to one's beliefs
and investment style, no matter the temptation. Thus, we have tried
to remain focussed, stay long term in our investment horizon and to
keep appraising the stocks in the portfolio as to whether we think
they will be additive to its performance. We probably sound like a
broken record, but we believe that share prices follow fundamentals
and the latter are good in this portfolio. Again, this is probably
only of partial reassurance. The elephant in the room is of course
when will growth as a style come back into favour? It would give us
no greater pleasure to answer that positively but we have to be
honest and say that we simply have no idea when this will happen.
At least we can report that in the second half of the financial
year being reported on, the portfolio modestly outperformed the
index that itself rose by a healthy 13%. Of course, we have
absolutely no idea if this is a turning point or a random event,
but at the very least this gives us a little encouragement that
some of the domestic doom and gloom that we reported on at the
half-year has started to lift as the aftershocks of the Truss
administration fade and the economic data proves not to be as dire
as widely predicted.
Perhaps understandably there has been a focus on top-down
factors such as political instability, the war in Ukraine, rising
inflation and, more recently, the banking crisis in both the US and
Europe. But as some of these factors fade, or at least are
'managed' by both businesses and consumers, we suspect that at some
point there will be a return to focussing on company fundamentals
and growth prospects, and here we remain greatly encouraged.
Portfolio
As noted above, portfolio activity remained low. In addition to
Just Eat Takeaway.com, our two main sales, as reported at the
half-year, were the takeovers of Euromoney Institutional Investor
and Homeserve, both of which we reluctantly accepted. In the
interim report we also talked about new purchases in the IT
suppliers Softcat and Kainos and in the second half we added to
both; they have continued to report robust growth. We also added to
the heat treatment business Bodycote, as we thought the market was
too preoccupied with the undoubted cyclical nature of some of its
end markets, such as automotive and general industrial, and is
underappreciating the restructuring of the business by management
into a far more focussed and profitable business with some
interesting growth angles. We also added to the financial platforms
AJ Bell and Integrafin having previously reduced our position in
Hargreaves Lansdown. This reflects our conviction that the first
two businesses have clearer propositions in their end markets (both
deal with IFA customers with AJ Bell also serving the
direct-to-consumer market). Both suffered share price weakness due
to tougher markets which brought their ratings down to even more
attractive levels.
Elsewhere, we resisted the temptation to tinker with the
portfolio. Looking at growth, or sometimes the lack of it, has been
made tricky by the pandemic, the recovery from pandemic and now the
gloom about a deteriorating economic picture across many countries.
Throw in the impact of soaring inflation, higher interest rates and
taxes, and optically you have an uncertain and unattractive
backdrop for businesses. Yet that is not what the vast majority of
our companies are reporting. For sure, they all have to navigate
the challenges listed above and it would be irresponsibly naïve to
think one's portfolio is immune to short-term challenges, but it is
also important to note that good companies can manage the
challenges and find new opportunities, whether it be: the plant
hire business Ashtead finding new areas to rent (very lucratively
in the case of hiring out floor cleaning equipment for example);
the platform business Autotrader offering additional services and
thus deriving more revenue streams from second-hand car sales; or,
hobbyist retailer Games Workshop making progress in potentially
monetising, with Amazon TV, some of its vast intellectual IP. There
are reasons to be optimistic. Finally, on unlisted investments, we
made no new investments in the year and our only exposure here is
through Wayve, an
autonomous vehicle technology business.
Outlook
It has been a challenging time for investors and, as we've
already noted, there are many economic and geopolitical worries and
issues. Despite this, we look at the portfolio of companies held
and most have strong market positions, healthy balance sheets and
good management teams. We are therefore reassured and excited about
its prospects. While we understand that performance has to improve
to warrant this optimism, we believe the attractive growth
fundamentals of the portfolio remain in place and we have the
necessary patience to see them reflected.
Iain McCombie and Milena Mileva
Baillie Gifford & Co
15 June 2023
Past performance is not a guide to future performance.
For a definition of terms see Glossary of Terms and Alternative
Performance Measures at the end of this announcement.
Total return information is sourced from Refinitiv/Baillie
Gifford and relevant underlying index providers. See disclaimer at
the end of this announcement.
The Managers' Core Investment Principles
Investment Philosophy
The following are the three core principles underpinning our
investment philosophy. We have a consistent, differentiated
long-term investment approach to managing UK equities that should
stand investors in the Company in good stead:
Growth
We search for the few companies which have the potential to grow
substantially and profitably over many years. Whilst we have no
insight into the short-term direction of a company's share price,
we believe that, over the longer term, those companies which
deliver above average growth in cash flows will be rewarded with
above average share price performance and that the power of
compounding is often under-appreciated by investors. Successful
investments will benefit from a rising share price and also from
income accumulated over long periods of time.
Patience
Great growth companies are not built in a day. We firmly believe
that investors need to be patient to fully benefit from the scale
of the potential. Our investment time horizon, therefore, spans
decades rather than quarters and our portfolio turnover*, at 5.1%,
is significantly below the UK industry average. This patient,
long-term approach affords a greater chance for the superior growth
and competitive traits of companies to emerge as the dominant
influence on their share prices and allows compounding to work in
the investors' favour.
Active Investment Management
It is our observation that too much attention is paid to the
composition of market indices and active managers should make
meaningful investments in their best ideas regardless of the
weightings of the index. For example, we would never invest in a
company just because it is large or to reduce risk. As a result,
shareholders should expect the composition of the portfolio to be
significantly different from the benchmark. This differentiation is
a necessary condition for delivering superior returns over time and
shareholders should be comfortable tolerating the inevitable ups
and downs in short-term relative performance that will follow from
that.
Portfolio construction flows from the investment beliefs stated
above.
* Alternative Performance Measure - see Glossary of Terms and
Alternative Performance Measures at the end of this
announcement.
The Managers' Stewardship Principles
We have a responsibility to behave as supportive and
constructively engaged long-term investors. Our approach favours a
small number of simple principles which help shape our interactions
with companies:
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.
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.
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.
A constructive and purposeful board
We believe that boards play a key role in supporting corporate
success and representing the interests of minority
shareholders.
Long-term focused remuneration with stretching targets
We look for remuneration policies that are simple, transparent
and reward superior strategic and operational endeavour.
Climate Transition Framework
The Managers use a four-question Climate Transition Framework
(outlined below) to undertake detailed climate specific analysis on
the highest emitting companies in the portfolio. The answers to
these questions help determine decisions about the weightings of
holdings within the portfolio, engagement priorities and decisions
around potential divestments.
1. Are the company's products or services essential?
- Do cleaner alternatives exist?
2. Does the company have a credible strategy to decarbonise and
mitigate its impact consistent with limiting global temperature
increases to 1.5degC above pre-industrial levels?
- Does the corporate culture support this strategy?
3. Is it a climate solution provider?
- Is it likely to be a direct player, or material influencer, in
the transition to a net zero economy?
- How will it contribute to the transition?
4. How is it exposed to broader transitional and physical risks
associated with climate change and the transition to net zero?
ESG Engagement
By engaging with companies, we seek to build constructive
relationships with them, to better inform our investment activities
and, where necessary, effect change within our holdings, ultimately
with the goal of achieving better returns for our shareholders. The
three examples below demonstrate our stewardship approach through
constructive, ongoing engagement.
Hargreaves Lansdown
Objectives
Engagement on a number of key areas throughout the year,
namely:
- the Chair's appointment to an additional chairmanship
- board changes and investment priorities
- CEO departure and succession management
Discussions and outcomes
We had several meetings with relevant stakeholders to discuss
each of these areas. With regards to the Chair's appointment to an
additional chairmanship, we met with the general counsel and
company secretary in early 2022, who assured us that the board had
undertaken a formal assessment process to review the Chair's
additional appointment. They confirmed that she would not be
joining any board committees in her new role and that she will be
giving up several of her private commitments in order to reduce the
risk of over-boarding.
In the second quarter of 2022, we met with the Chair to discuss
board changes and investment priorities. The non-executive element
of the board has changed significantly under her leadership and
additional executives have been appointed. We were reassured that
the new appointments have strengthened technological expertise
given the company's significant investment in technology. However,
we suggested that communication about the progress of key
investment projects would be helpful to our monitoring of execution
and progress.
Later in the year, Hargreaves Lansdown announced that its CEO,
Chris Hill, would be stepping down in 2023, after six years in the
role. We met with the Chair in October to discuss the CEO's
decision, the process for appointing a successor, and the
implications for the group's strategy. In December, Hargreaves
Lansdown announced that Dan Olley will replace Chris Hill as CEO.
Therefore, we engaged with the Chair again in December to discuss
the reasons for the selection of Mr Olley as CEO. He has been
serving as a non-executive director on the Hargreaves Lansdown
board since June 2019 and we are satisfied that he has the skills
and experience to accelerate the execution of the group's digital
strategy. We expect to meet with him soon after he transfers to the
CEO role.
St. James's Place
Objectives
Engagement to learn about the company's decarbonisation pathway.
Particularly, how St. James's Place ('SJP') will achieve net zero
greenhouse gas emissions across its very significant investment
portfolio.
Discussions
We spoke with various people from SJP's Responsible Investment
('RI') Team, who provided information about its decarbonisation
commitment.
SJP is a signatory to several financial industry initiatives,
including the Net Zero Asset Owner Alliance and the UN's Race to
Zero Campaign. These initiatives have encouraged SJP to set both
near and long-term targets for reducing emissions from the
portfolio of investments managed on its clients' behalf. Along with
a commitment to reach net zero by 2050, SJP has previously set an
interim 2025 target for emissions reduction by 25 per cent, which
it has reached early. The company is now considering setting a new
emissions reduction target for 2030.
SJP annually reviews the performance of each of its underlying
fund managers to determine progress on its decarbonisation pathway
for its financed emissions. This process requires an assessment of
credible ESG engagement, including climate-related concerns. The RI
team highlighted a recent decision to remove a fund manager they
assessed failing to meet minimum engagement requirements, despite
warnings. The company also spent some time detailing its clear
preference for engagement rather than divestment when considering
investments in high emitting industries. SJP also provided detail
on both the near-term and long-term objectives for Robeco's recent
appointment as a company engagement specialist.
Outcome
We were pleased to hear about SJP's thoughtful approach as it
seeks to decarbonise the significant emissions footprint from its
investment portfolio. We await the setting of a new 2030 reduction
target and will review in due course. We will also continue to
monitor decarbonisation progress, particularly where investments
relate to companies with significant emissions that are hard to
abate.
Exscientia
Objectives
We previously supported the company's remuneration policy at the
first AGM in 2022 after the IPO at the end of 2021 but communicated
certain areas of concern and offered to speak with the company to
discuss. This engagement provided the opportunity to articulate
specific concerns and encourage the company to be thoughtful in
improving alignment.
Discussion
Exscientia is a relatively young, early-stage biotech. The
structure of previous executive compensation included long-term
incentives that, unfortunately, focused on the company's share
price over short periods of time, had minimal holding requirements
and had no links to the company's operational progress. Speaking
with individuals who work with the compensation committee directly,
we encouraged the company to focus on operational metrics as
appropriate indicators of operational progress and to involve time
periods that are more aligned to an investment horizon of multiple
years. The company highlighted the need to remain competitive to
attract and retain talent within the biotech industry. In response,
we encouraged the company to avoid reverting to industry
conventions and reiterated our willingness to listen to any
proposal if there was an interest in speaking with shareholders
ahead of the AGM. We recognise the need for the company to attract
capable individuals to run the business. However, we emphasised the
importance of focusing remuneration on the long-term success of the
company's operations rather than on the short-term share price.
Outcome
We will continue to monitor and appropriately engage with the
company when further details are provided of new remuneration
proposals.
List of Investments at 30 April 2023
Fair % of
value total
Name Business GBP'000 assets
Basic Materials
Rio Tinto Metals and mining company 7,628 2.5
Speciality high-performance chemicals
Victrex manufacturer 3,888 1.3
-------- -------
11,516 3.8
-------- -------
Consumer Discretionary
Games Workshop Toy manufacturer and retailer 14,758 4.8
Burberry Luxury goods retailer 10,349 3.3
Manufacturer and distributor of kitchens
Howden Joinery to trade customers 9,847 3.2
4imprint Direct marketer of promotional merchandise 7,883 2.6
Professional publications and information
RELX provider 7,636 2.5
Boohoo.com Online fashion retailer 1,481 0.5
Technology platform for the global
Farfetch fashion industry 1,364 0.4
Naked Wines Online wine retailer 408 0.1
-------- -------
53,726 17.4
-------- -------
Consumer Staples
Diageo International drinks company 10,304 3.3
-------- -------
10,304 3.3
-------- -------
Financials
St. James's Place UK wealth manager 12,936 4.2
Prudential International life insurer 9,228 3.0
Insurance and investment management
Legal & General company 7,596 2.5
Lancashire Holdings General insurance 7,423 2.4
AJ Bell Investment platform 7,087 2.3
Provider of retirement income products
Just Group and services 6,915 2.2
Hiscox Property and casualty insurance 5,702 1.8
Provides platform services to financial
IntegraFin clients 5,341 1.7
Hargreaves Lansdown UK retail investment platform 4,297 1.4
IG Group Spread betting website 3,155 1.0
Technology focused venture capital
Molten Ventures firm 2,991 1.0
-------- -------
72,671 23.5
-------- -------
Healthcare
Online platform selling antibodies
Abcam to life science researchers 11,046 3.6
Genus World leading animal genetics company 8,580 2.8
Oxford Nanopore Novel DNA sequencing technology 708 0.2
Exscientia Biotech company 534 0.2
Creo Medical Designer and manufacturer of medical 110 -
equipment
-------- -------
20,978 6.8
-------- -------
Industrials
Volution Group Supplier of ventilation products 13,888 4.5
Global provider of credit data and
Experian analytics 11,376 3.7
Ashtead Construction equipment rental company 11,014 3.6
Renishaw World leading metrology company 8,601 2.8
Bunzl Distributor of consumable products 8,160 2.6
Inchcape Car wholesaler and retailer 7,921 2.5
Online platform to send and receive
Wise money 7,494 2.4
Halma Specialist engineer 7,403 2.4
Bodycote Heat treatment and materials testing 6,416 2.1
Provider of professional services focusing
FDM Group on information technology 5,268 1.7
PageGroup Recruitment consultancy 4,952 1.6
-------- -------
92,493 29.9
-------- -------
Real Estate
Rightmove UK's leading online property portal 6,106 2.0
Helical Property developer 5,390 1.7
-------- -------
11,496 3.7
-------- -------
Technology
Advertising portal for second hand
Auto Trader Group cars in the UK 13,706 4.4
IT reseller and infrastructure solutions
Softcat provider 5,344 1.7
Kainos Group IT services and implementer 4,871 1.6
First Derivatives IT consultant and software developer 4,804 1.6
Wayve Technologies Ltd Developer of full autonomous driving
Series B Pref. (u) systems 627 0.2
-------- -------
29,352 9.5
-------- -------
Total Investments 302,536 97.9
-------------------------------------------------------------------- -------- -------
Net Liquid Assets 6,336 2.1
-------------------------------------------------------------------- -------- -------
Total Assets 308,872 100.0
-------------------------------------------------------------------- -------- -------
(u) Denotes unlisted security.
Stocks in bold are the 20 largest holdings.
Income Statement
For the year ended 30 April
2023 2023 2023 2022 2022 2022
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- -------- -------- -------- -------- --------- ---------
Net losses on investments - (2,542) (2,542) - (63,036) (63,036)
Currency gains - - - - 40 40
Income 7,260 - 7,260 7,787 - 7,787
I nvestment management
fee (432) (1,009) (1,441) (519) (1,211) (1,730)
Other administrative
expenses (533) - (533) (498) - (498)
---------------------------- -------- -------- -------- -------- --------- ---------
Net return before finance
costs
and taxation 6,295 (3,551) 2,744 6,770 (64,207) (57,437)
---------------------------- -------- -------- -------- -------- --------- ---------
Finance costs of borrowings (150) (349) (499) (33) (76) (109)
---------------------------- -------- -------- -------- -------- --------- ---------
Net return on ordinary
activities
before taxation 6,145 (3,900) 2,245 6,737 (64,283) (57,546)
---------------------------- -------- -------- -------- -------- --------- ---------
Tax on ordinary activities - - - - - -
---------------------------- -------- -------- -------- -------- --------- ---------
Net return on ordinary
activities
after taxation 6,145 (3,900) 2,245 6,737 (64,283) (57,546)
---------------------------- -------- -------- -------- -------- --------- ---------
Net return per ordinary
share 4.05p (2.57p) 1.48p 4.39p (41.89p) (37.50p)
---------------------------- -------- -------- -------- -------- --------- ---------
Dividends declared in respect of the financial year ended 30
April 2023 amount to 3.60p (2022 - 3.91p). Further information on
dividend distributions can be found below.
The total column of this statement is the profit and loss
account of the Company. The supplementary revenue and capital
return 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 all gains
and losses of the Company have been reflected in the above
statement. The accompanying notes below are an integral part of the
Financial Statements
Balance Sheet
As at 30 April
2023 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- --------- ----------- -------- -----------
Fixed assets
Investments held at fair value through
profit or loss 302,536 306,585
--------------------------------------- --------- ----------- -------- -----------
Current assets
Debtors 1,479 1,824
Cash and cash equivalents 5,512 1,491
--------------------------------------- --------- ----------- -------- -----------
6,991 3,315
--------------------------------------- --------- ----------- -------- -----------
Creditors
Amounts falling due within one year (15,105) (6,967)
--------------------------------------- --------- ----------- -------- -----------
Net current liabilities (8,114) (3,652)
--------------------------------------- --------- ----------- -------- -----------
Net assets 294,422 302,933
--------------------------------------- --------- ----------- -------- -----------
Capital and reserves
Share capital 40,229 40,229
Share premium account 11,664 11,664
Capital redemption reserve 19,759 19,759
Warrant exercise reserve 417 417
Share purchase reserve 55,628 60,433
Capital reserve 151,603 155,503
Revenue reserve 15,122 14,928
--------------------------------------- --------- ----------- -------- -----------
Shareholders' funds 294,422 302,933
--------------------------------------- --------- ----------- -------- -----------
Net asset value per ordinary share
* 195.6p 197.4p
--------------------------------------- --------- ----------- -------- -----------
Ordinary shares in issue 150,520,484 153,495,484
--------------------------------------- --------- ----------- -------- -----------
The Financial Statements of Baillie Gifford UK Growth Trust plc
(Company registration number 2894077) were approved and authorised
for issue by the Board and were signed on 15 June 2023.
Carolan Dobson
Chairman
The accompanying notes below are an integral part of the
Financial Statements.
* See Glossary of Terms and Alternative Performance Measures
below.
Statement of Changes in Equity
For the year ended 30 April 2023
Share Capital Warrant Share
Share premium redemption exercise purchase Capital Revenue Shareholders'
capital account reserve reserve reserve reserve reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- ----------- --------- --------- -------- -------- -------------
Shareholders' funds
at 1 May 2022 40,229 11,664 19,759 417 60,433 155,503 14,928 302,933
Ordinary shares bought
back into treasury - - - - (4,805) - - (4,805)
Dividends paid during
the year - - - - - - (5,951) (5,951)
Net return on ordinary
activities after taxation - - - - - (3,900) 6,145 2,245
--------------------------- -------- -------- ----------- --------- --------- -------- -------- -------------
Shareholders' funds
at 30 April 2023 40,229 11,664 19,759 417 55,628 151,603 15,122 294,422
--------------------------- -------- -------- ----------- --------- --------- -------- -------- -------------
For the year ended 30 April 2022
Share Capital Warrant Share
Share premium redemption exercise purchase Capital Revenue Shareholders'
capital account reserve reserve reserve reserve reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- ----------- --------- --------- -------- -------- -------------
Shareholders' funds
at 1 May 2021 40,229 11,328 19,759 417 60,433 218,981 11,906 363,053
Ordinary shares sold
from treasury - 336 - - - 805 - 1,141
Dividends paid during
the year - - - - - - (3,715) (3,715)
Net return on ordinary
activities after taxation - - - - - (64,283) 6,737 (57,546)
--------------------------- -------- -------- ----------- --------- --------- -------- -------- -------------
Shareholders' funds
at 30 April 2022 40,229 11,664 19,759 417 60,433 155,503 14,928 302,933
--------------------------- -------- -------- ----------- --------- --------- -------- -------- -------------
The accompanying notes below are an integral part of the
Financial Statements.
Cash Flow Statement
For the year ended 30 April
2023 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------- -------- -------- --------
Cash flows from operating activities
Net return on ordinary activities
before taxation 2,245 (57,546)
Net losses on investments 2,542 63,036
Currency gains - (40)
Finance costs of borrowings 499 109
Changes in debtors 344 (372)
Changes in creditors (3) (83)
------------------------------------------ -------- -------- -------- --------
Cash from operations 5,627 5,104
Interest paid (357) (97)
------------------------------------------ -------- -------- -------- --------
Net cash inflow from operating activities 5,270 5,007
------------------------------------------ -------- -------- -------- --------
Cash flows from investing activities
Acquisitions of investments (24,014) (24,632)
Disposals of investments 25,521 17,778
------------------------------------------ -------- -------- -------- --------
Net cash inflow/(outflow) from investing
activities 1,507 (6,854)
------------------------------------------ -------- -------- -------- --------
Cash flows from financing activities
Bank loan drawn down 8,000 6,450
Bank loan repaid - (2,450)
Equity dividends paid (5,951) (3,715)
Ordinary shares sold from treasury - 1,141
Ordinary shares bought back into treasury
and stamp duty thereon (4,805) -
------------------------------------------ -------- -------- -------- --------
Net cash (outflow)/inflow from financing
activities (2,756) 1,426
------------------------------------------ -------- -------- -------- --------
Increase/(decrease) in cash and cash
equivalents 4,021 (421)
Exchange movements - 40
Cash and cash equivalents at start
of year 1,491 1,872
------------------------------------------ -------- -------- -------- --------
Cash and cash equivalents at end
of year * 5,512 1,491
------------------------------------------ -------- -------- -------- --------
* Cash and cash equivalents represent cash at bank and
short-term deposits repayable on demand.
Cash from operations includes dividends received of GBP7,523,000
(2022 - GBP7,420,000) and GBP77,000 deposit interest (2022 -
nil).
The accompanying notes below are an integral part of the
Financial Statements.
Notes to the Condensed Financial Statements
1) The Financial Statements for the year to 30 April 2023 have
been prepared in accordance with FRS 102 'The Financial Reporting
Standard applicable in the UK and Republic of Ireland' on the basis
of the accounting policies set out below which are consistent with
those applied for the year ended 30 April 2022.
2) Income
2023 2022
GBP'000 GBP'000
-------------------------- -------- --------
Income from investments
UK dividends 7,183 7,787
Other income
Deposit interest 77 -
-------------------------- -------- --------
Total income 7,260 7,787
-------------------------- -------- --------
Special dividends received in the year amounted to GBP311,000
(2022 - GBP919,000) with GBP311,000 (2022 - GBP919,000) classified
to revenue and nil (2022 - nil) classified to capital.
3) Investment Management Fee
2023 2023 2023 2022 2022 2022
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- -------- -------- -------- -------- -------- --------
Investment management
fee 432 1,009 1,441 519 1,211 1,730
---------------------- -------- -------- -------- -------- -------- --------
Baillie Gifford & Co Limited, a wholly owned subsidiary of
Baillie Gifford & Co, has been appointed as the Company's
Alternative Investment Fund Manager ('AIFM') and Company Secretary.
Baillie Gifford & Co Limited has delegated portfolio management
services to Baillie Gifford & Co. Dealing activity and
transaction reporting has been further sub-delegated to Baillie
Gifford Overseas Limited and Baillie Gifford Asia (Hong Kong)
Limited.
The Investment Management Agreement between the AIFM and the
Company sets out the matters over which the Managers have authority
in accordance with the policies and directions of, and subject to
restrictions imposed by, the Board. The Investment Management
Agreement is terminable on not less than six months' notice or on
shorter notice in certain circumstances. Compensation would only be
payable if termination occurred prior to the expiry of the notice
period. The annual management fee is 0.5% of net assets, calculated
and payable quarterly.
4) Net Return per Ordinary Share
2023 2023 2023 2022 2022 2022
Revenue Capital Total Revenue Capital Total
------------------------ -------- -------- ------ -------- -------- ---------
Net return per ordinary
share 4.05p (2.57p) 1.48p 4.39p (41.89p) (37.50p)
------------------------ -------- -------- ------ -------- -------- ---------
Revenue return per ordinary share is based on the net revenue
return on ordinary activities after taxation of GBP6,145,000 (2022
- GBP6,737,000), and on 151,603,018 (2022 - 153,457,607) ordinary
shares, being the weighted average number of ordinary shares in
issue during each year.
Capital return per ordinary share is based on the net capital
loss for the financial year of GBP3,900,000 (2022 - net capital
loss of GBP64,283,000), and on 151,603,018 (2022 - 153,457,607)
ordinary shares, being the weighted average number of ordinary
shares in issue during each year.
There are no dilutive or potentially dilutive shares in
issue.
5) Ordinary Dividends
2023 2022
2023 2022 GBP'000 GBP'000
-------------------------------------- ----- ----- -------- --------
Amounts recognised as distributions
in the year:
Previous year's final dividend (paid
16 September 2022) 3.91p 2.42p 5,951 3,715
-------------------------------------- ----- ----- -------- --------
Also set out below are the total dividends paid and proposed in
respect of the financial year, which is the basis on which the
requirements of section 1158 of the Corporation Tax Act 2010 are
considered. The revenue available for distribution by way of
dividend for the year is GBP6,145,000 (2022 - GBP6,737,000).
2023 2022
2023 2022 GBP'000 GBP'000
---------------------------------------------- ----- ----- -------- --------
Dividends paid and payable in respect
of the year:
Proposed final dividend (payable 15 September
2023) 3.60p 3.91p 5,419 5,951
---------------------------------------------- ----- ----- -------- --------
If approved, the final dividend of 3.60p will be paid on 15
September 2023 to all shareholders on the register at the close of
business on 18 August 2023. The ex-dividend date is 17 August
2023.
6) At 30 April 2023, the Company had a one year GBP30 million
unsecured revolving credit loan facility with The Royal Bank of
Scotland International Limited which expires in July 2023. At 30
April 2023, GBP14,450,000 was drawn down under this facility. At 30
April 2022, GBP6,450,000 was drawn down under a one year GBP20
million unsecured revolving credit loan facility with The Royal
Bank of Scotland International Limited which expired in July
2022.
The main covenant relating to the above loan is that total
borrowings shall not exceed 30% of adjusted portfolio value. There
were no breaches of loan covenants during the year.
7) Transaction costs of GBP115,000 (2022 - GBP62,000) and
GBP10,000 (2022 - GBP3,000) were suffered on purchases and sales
respectively.
8) The Company's shareholder authority permits it to hold shares
bought back 'in treasury'. Under such authority, treasury shares
may be subsequently either sold for cash (at a premium to net asset
value per ordinary share) or cancelled. At 30 April 2023 the
Company had authority to buy back 21,351,628 ordinary shares.
During the year to 30 April 2023, 2,975,000 shares were bought back
into treasury at a total cost of GBP4,805,000 (2022 - no ordinary
shares were bought back).
In the year to 30 April 2023, no shares were sold from treasury
(2022 - the Company sold from treasury 475,000 ordinary shares at a
premium to net asset value, with a nominal value of GBP119,000
raising net proceeds of GBP1,141,000). At 30 April 2023 the Company
had authority to issue or sell from treasury 15,299,548 ordinary
shares
9) The financial information set out above does not constitute
the Company's statutory accounts for the year ended 30 April 2023
or 2022. The financial information for 2022 is derived from the
statutory accounts for 2022 which have been delivered to the
Registrar of Companies. The Auditor has reported on the 2022
accounts, their report was (i) unqualified; (ii) did not include a
reference to any matters to which the Auditor drew attention by way
of emphasis without qualifying their report; and (iii) did not
contain a statement under sections 498(2) or (3) to 497 of the
Companies Act 2006.
10) The Annual Report and Financial Statements will be available
on the Company's website bgukgrowthtrust.com on or around 6 July
2023. 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 ('APM') 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 serve to improve comparability between investment
trusts.
Total Assets
This is the Company's definition of Adjusted Total Assets, being
the total value of all assets held less all liabilities (other than
liabilities in the form of borrowings).
Net Asset Value
Net Asset Value (NAV) is the value of total assets less
liabilities (including borrowings). The NAV per share is calculated
by dividing this amount by the number of ordinary shares in issue
(excluding treasury shares).
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, it is said to be trading at a premium.
2023 2022
---------------------- ------- -------
Closing NAV per share 195.6p 197.4p
Closing share price 168.0p 174.2p
---------------------- ------- -------
Discount (14.1%) (11.8%)
---------------------- ------- -------
Total Return (APM)
The total return is the return to shareholders after reinvesting
the net dividend on the date that the share price goes
ex-dividend.
2023 2022
2023 Share 2022 Share
NAV price NAV price
---------------------------- ---------- ------ ------ ------- -------
Closing NAV per share/share
price (a) 195.6p 168.0p 197.4p 174.2p
Dividend adjustment factor
* (b) 1.0204 1.0232 1.0096 1.0098
Adjusted closing NAV (c = a
per share/share price x b) 199.6p 171.9p 199.3p 175.9p
Opening NAV per share/share
price (d) 197.4p 174.2p 237.3p 244.0p
---------------------------- ---------- ------ ------ ------- -------
(c ÷
Total return d)-1 1.1% (1.3%) (16.0%) (27.9%)
---------------------------- ---------- ------ ------ ------- -------
* The dividend adjustment factor is calculated on the assumption
that the dividend of 3.91p (2022 - 2.42p) paid by the Company
during the year were reinvested into shares of the Company at the
cum income NAV per share/share price, as appropriate, at the
ex-dividend date.
Ongoing Charges (APM)
The total expenses (excluding borrowing costs) incurred by the
Company as a percentage of the average net asset value. The ongoing
charges have been calculated on the basis prescribed by the
Association of Investment Companies.
A reconciliation from the expenses detailed in the Income
Statement above is provided below.
2023 2022
------------------------------------------------ --------------- --------------
Investment management fee GBP1,441,000 GBP1,730,000
Other administrative expenses GBP533,000 GBP498,000
------------------------------------------------ --------------- --------------
Total expenses (a) GBP1,974,000 GBP2,228,000
Average net asset value (b) GBP283,920,000 GBP354,588,000
---------------------------------------- ------ --------------- --------------
Ongoing charges ((a) ÷ (b) expressed as
a percentage) 0.70% 0.63%
------------------------------------------------ --------------- --------------
Turnover (APM)
Annual turnover is a measure of portfolio change or trading
activity in a portfolio. Turnover is calculated as the minimum of
purchases and sales in a month, divided by the average market value
of the portfolio, summed to get rolling 12 month turnover data.
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.
Invested gearing is the Company's borrowings adjusted for cash
and cash equivalents expressed as a percentage of shareholders'
funds.
2023 2022
-------------------------------- -------------- --------------
Borrowings GBP14,450,000 GBP6,450,000
Less: cash and cash equivalents (GBP5,512,000) (GBP1,491,000)
-------------------------------- -------------- --------------
Adjusted borrowings GBP8,938,000 GBP4,959,000
Shareholders' funds GBP294,422,000 GBP302,933,000
-------------------------------- -------------- --------------
Invested gearing 3% 2%
-------------------------------- -------------- --------------
Drawn gearing is the Company's borrowings expressed as a
percentage of shareholders' funds.
2023 2022
-------------------- -------------- --------------
Borrowings GBP14,450,000 GBP6,450,000
Shareholders' funds GBP294,422,000 GBP302,933,000
-------------------- -------------- --------------
Drawn gearing 5% 2%
-------------------- -------------- --------------
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers
(AIFM) Regulations, 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 and
after certain hedging and netting positions are offset against each
other. The Company's maximum and actual leverage as at the year end
are set out on page 61 of the Annual Report and Financial
Statements.
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.
Unlisted (Private) Company
An unlisted (private) company means a company whose shares are
not available to the general public for trading and not listed on a
stock exchange.
Sustainable Finance Disclosure Regulation ('SFDR')
Sustainable Finance Disclosure Regulation ('SFDR')
The EU Sustainable Finance Disclosure Regulation ('SFDR') does
not have a direct impact in the UK due to Brexit, however, it
applies to third-country products marketed in the EU. As Baillie
Gifford UK Growth Trust plc is marketed in the EU by the AIFM, BG
& Co Limited, via the National Private Placement Regime (NPPR)
the following disclosures have been provided to comply with the
high-level requirements of SFDR. The AIFM has adopted Baillie
Gifford & Co's Governance and Sustainable Principles and
Guidelines as its policy on integration of sustainability risks in
investment decisions.
Baillie Gifford & Co's approach to investment is based on
identifying and holding high quality growth businesses that enjoy
sustainable competitive advantages in their marketplace. To do this
it looks beyond current financial performance, undertaking
proprietary research to build up an in-depth knowledge of an
individual company and a view on its long-term prospects. This
includes the consideration of sustainability factors
(environmental, social and/or governance matters) which it believes
will positively or negatively influence the financial returns of an
investment.
More detail on the Investment Managers' approach to
sustainability can be found in the Governance and Sustainability
Principles and Guidelines document, available publicly on the
Baillie Gifford website (bailliegifford.com).
Taxonomy Regulation
The Taxonomy Regulation establishes an EU-wide framework or
criteria for environmentally sustainable economic activities in
respect of six environmental objectives. It builds on the
disclosure requirements under SFDR by introducing additional
disclosure obligations in respect of AIFs that invest in an
economic activity that contributes to an environmental
objective.
The Company does not commit to make sustainable investments as
defined under SFDR. As such, the underlying investments do not take
into account the EU criteria for environmentally sustainable
economic activities.
Automatic Exchange of Information
In order to fulfil its obligations under UK Tax Legislation
relating to the automatic exchange of information, the Company is
required to collect and report certain information about certain
shareholders.
The legislation will require investment trust companies to
provide personal information to HMRC on certain investors who
purchase shares in investment trusts. As an affected company,
Baillie Gifford UK Growth Trust plc will have to provide
information annually to the local tax authority on the tax
residencies of a number of non-UK based certificated shareholders
and corporate entities.
Shareholders, excluding those whose shares are held in CREST,
who come on to the share register will be sent a certification form
for the purposes of collecting this information.
For further information, please see HMRC's Quick Guide:
Automatic Exchange of Information - information for account holders
gov.uk/government/publications/exchange-of-information-account-holders.
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FR FZGMVVKNGFZM
(END) Dow Jones Newswires
June 16, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Baillie Gifford Uk Growth (LSE:BGUK)
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Grafico Azioni Baillie Gifford Uk Growth (LSE:BGUK)
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