Growth investing made simple

If you want to build wealth over the long term, it makes sense to allocate your money to where the growth is. Time and time again, the most successful growth companies originate from the US. The nation is home to more $1bn+ start-ups than the rest of the world combined, and it’s showing no signs of slowing down.

We look to invest in individuals and companies on a mission to build something that can change the way societies and markets operate. That can take years, or even decades, and it can be a volatile ride, but the results can be transformational. So we invest on a 5+ year time horizon, to give our companies time to realise their full potential. In fact, oftentimes our most successful investments are the most volatile. An example of this in practice?

Of course, not all volatile holdings end up delivering returns such as this. However we do firmly believe that supporting companies over the long-term increases the chances of a successful investment. We encourage you to share our time horizon so that your investment strategy is aligned with ours, but if you need to take your money out, you can.

The way an investment trust is structured enables it to invest in both public companies (listed on the stock exchange) and private companies (companies not listed and very difficult for an individual investor to invest in themselves). An increasing amount of value creation is taking place in private markets, meaning your exposure to some of greatest growth companies has been limited. Until now.

Annual Performance to 30 June each year

Please bear in mind that past performance is not a guide to future returns. The value of your investment may go down as well as up, and you may not get back the amount you invested.

NAV is calculated with borrowings deducted at fair value.

*S&P 500 Index.

Performance source: Morningstar and relevant underlying index provider, total return in sterling.

The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies. The value of their shares, and any income from them, can fall as well as rise and investors may not get back the amount invested. The specific risks associated with the Trust include:

Currency

The Trust invests in overseas securities. Changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up.

Private companies

Unlisted investments such as private companies, in which the Trust has a significant investment, can increase risk. These assets may be more difficult to sell, so changes in their prices may be greater.

Gearing

The Trust can borrow money to make further investments (sometimes known as “gearing” or “leverage”). The risk is that when this money is repaid by the Trust, the value of the investments may not be enough to cover the borrowing and interest costs, and the Trust will make a loss. If the Trust's investments fall in value, any invested borrowings will increase the amount of this loss.

Liquidity

Market values for securities which have become difficult to trade may not be readily available and there can be no assurance that any value assigned to such securities will accurately reflect the price the Trust might receive upon their sale.

Derivatives

The Trust can make use of derivatives which may impact on its performance.

Smaller companies

Investment in smaller companies is generally considered higher risk as changes in their share prices may be greater and the shares may be harder to sell. Smaller companies may do less well in periods of unfavourable economic conditions.

Single country

The Trust’s exposure to a single market and currency may increase risk.

Premium risk

Share prices may either be below (at a discount) or above (at a premium) the net asset value (NAV). The Company may issue new shares when the price is at a premium which may reduce the share price. Shares bought at a premium may have a greater risk of loss than those bought at a discount.

Buy-backs

The Trust can buy back its own shares. The risks from borrowing, referred to above, are increased when a trust buys back its own shares.

Unlikely to achieve income

The aim of the Trust is to achieve capital growth and it is unlikely that the Trust will provide a steady, or indeed any, income.

Regulation

The Trust is listed on the London Stock Exchange and is not authorised or regulated by the Financial Conduct Authority.

Suitability for retail distribution

Please note that the Company currently conducts its affairs, and intends to continue to conduct its affairs, so that the Company’s ordinary shares can be recommended by Independent Financial Advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled investment products (NMPI). The Company’s ordinary shares are excluded from the FCA’s restrictions which apply to non-mainstream pooled investment products because they are shares in an investment trust.