1. Overview

    At present the Trust aims to achieve attractive investment returns over the long term from a diversified portfolio of European securities. As part of the 23 January 2020 AGM business, shareholders are being asked to approve the following: To achieve capital growth over the long term from a diversified portfolio of European securities.

    The value of investments and any income from them may go down as well as up and you or your client may not get back the amount originally invested.
  2. About the Trust

    The Trust’s portfolio is constructed without any reference to the index and will not replicate it. The majority of the portfolio will be held in listed European equities however, subject to shareholder approval 23 January 2020,  up to 10% of total assets, as measured at the time of initial investment, can be invested in unlisted investments. The portfolio is managed for capital growth and any dividends paid to shareholders will be the minimum permissible to maintain investment trust status and be by way of a single annual payment.

    Baillie Gifford
  3. Meet the Trust Managers

    Stephen Paice, fund manager, European Fund
    Stephen Paice

    Stephen is Head of the European Equity Team. He is a co-manager of the Baillie Gifford European Fund and also a member of the Global Stewardship Portfolio Construction Group. He joined Baillie Gifford in 2005 and spent time in the US, UK Smaller Companies and Japanese Equities Teams. Stephen graduated BSc in Financial Mathematics in 2005.

    Moritz Sitte, fund manager, European Fund
    Moritz Sitte

    Moritz joined Baillie Gifford in September 2010 and is an Investment Manager in the European Equity Team. He is a co-manager of the Baillie Gifford European Fund. He graduated BSc in Business Administration from the University of Regensburg, Germany in 2009 where he took part in the Honours Elite Degree Programme. Moritz then went on to complete an MSc in Finance and Investment from the University of Edinburgh in 2010.

  4. Actual investors imagine 'what if?'

    Not 'what is'.
    Find out more
  5. Meet our Directors

    Michael MacPhee (Chairman)

    Michael MacPhee is a director of Archangel Investors Limited, Castle European Limited, Didasko Education Company Limited and Fernbank Investments Limited. Having been called to the English Bar in 1987, he joined Baillie Gifford & Co in 1989 and became a partner in 1998. He headed the firm’s European department from 2003 to 2008 and thereafter co-managed a global investment strategy. From 1998 until his retirement from the firm in 2014, he was the manager of Mid Wynd International Investment Trust PLC. He was appointed a Director of the Company in 2016 and Chairman in 2017.

    Michael Moule (Senior Independent Director)

    Michael Moule is a member of The Open University investment committee and a director of Atlantis Japan Growth Fund Limited. He was an investment trust manager at Henderson Global Investors, where he managed two investment trusts until his retirement in 2003. Previously, he was the chairman of Polar Capital Technology Trust plc and a director of The Bankers Investment Trust PLC, Lowland Investment Company plc and Montanaro UK Smaller Companies Investment Trust PLC. He was appointed a Director of the Company in 2004.

    Andrew Watkins

    Andrew Watkins, until his retirement in June 2017, was head of client relations, sales and marketing for Invesco Perpetual’s listed investment funds business and is currently chairman of Ashoka India Equity Investment Trust plc and a non-executive director of BMO UK High Income Trust plc, Chelverton UK Dividend Trust plc and Consistent Unit Trust Management Company Limited. He was appointed a Director of the Company in 2019.

    Dr Michael Woodward (Chairman of Audit Committee)

    Michael Woodward is a director of Maitland Administration Services (Scotland) Limited, a provider of administrative services to investment trusts and other collective funds. He has worked in the investment trust industry for over 30 years, both as a European portfolio manager with Ivory & Sime and as the individual with responsibility for the management of the investment trust business at Martin Currie and F&C Asset Management. He was appointed a Director of the Company in 2013 and Chairman of the Audit Committee in 2017.

  6. Objective

    Existing Investment objectiveTo achieve attractive investment returns over the long term from a diversified portfolio of European securities.

    Proposed investment objective subject to shareholder approval on 23/01/2020 at the AGM:To achieve capital growth over the long term from a diversified portfolio of European securities.

  7. Investment Policy

    Existing investment policy: The Company is invested in a diversified portfolio which is expected to consist of approximately 30 to 50 securities. The Company may not invest more than 10% of the value of the portfolio in any one individual stock at the time of investment. The Board recognises that investment in some European countries can be riskier than in others. Investment risks are diversified through holding a wide range of securities in different countries and industrial sectors. No more than 10% of the value of the portfolio in aggregate may be held in securities in those countries which are not included in the FTSE All-World European indices. The Board has the authority to hedge the Company’s exposure to movements in the rate of exchange of currencies, principally the euro, in which the Company’s investments are denominated, against sterling, its reporting currency. However, it is not generally the Board’s practice to do this and the portfolio is not currently hedged. No investments in unquoted stocks can be made without the prior approval of the Board. The level of gearing within the portfolio is agreed by the Board and should not exceed 20% in normal market conditions. No more than 10% of the total assets of the Company may be invested in other listed investment companies (including investment trusts) except in those that have stated that they will invest no more than 15% of their total assets in other listed investment companies. In this case, the limit is 15%.

    Proposed investment policy subject to shareholder approval 23/01/2020 at the AGM: The Company is invested in a diversified portfolio of between 30 to 60 European securities. The Company may not invest more than 10% of total assets in any one individual stock at the time of investment. The Board recognises that investment in some European countries can be riskier than in others. Investment risks are diversified through holding a wide range of securities in different countries and industrial sectors. The Company has the ability to invest in securities that are listed in countries which are not included in the FTSE Europe ex UK index, where these securities have a meaningful connection with continental Europe. The Board has the authority to hedge the Company’s exposure to movements in the rate of exchange of currencies, principally the euro, in which the Company’s investments are denominated, against sterling, its reporting currency. Up to 10% of total assets, as measured at the time of initial investment, can be invested in unlisted investments. The level of gearing within the portfolio is agreed by the Board and the absolute amount of any gearing should not exceed 20% of net assets at time of drawdown, excluding any unlisted investments in the calculation of net assets. No more than 10% of the total assets of the Company may be invested in other listed investment companies (including investment trusts) except in those that have stated that they will invest no more than 15% of their total assets in other listed investment companies. In this case, the limit is 15%.

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