Baillie Gifford US Growth Trust raises £173m

Edinburgh-based fund management giant Baillie Gifford said it successfully raised gross proceeds of £173 million for the launch of its Baillie Gifford US Growth Trust.

Baillie Gifford employs 1,014 people and had assets under management and advice of £179.6 billion as at December 31, 2017.

The new fund’s shares have been admitted to the official list of the UK Listing Authority and to trading on the main market of the London Stock Exchange, with first day of dealings expected to be March 23, 2018.

Baillie Gifford said the fund will focus on “exceptional growth companies” in the US “which have the potential to grow substantially faster than the average company over the long term.”

The fund will invest in both listed and unlisted companies, up to a combined maximum of 90 holdings, typically with 30 to 50 listed companies in the portfolio.

The maximum amount invested in unlisted securities will not exceed 50% of total assets measured at time of investment.

The fund’s portfolio will be managed by Gary Robinson and deputy managers Helen Xiong and Andrei Kiselev, members of Baillie Gifford’s US Equities Team and managers of the £1.1 billion Baillie Gifford American Fund which has returned 151.9% over five years to February 28, 2018.

Tom Burnet has been appointed chairman of US Growth Trust’s board of directors, with Sue Inglis and Graham Paterson joining him as additional independent non-executive directors.

Andrew Telfer, Joint Senior Partner, Baillie Gifford & Co. said: “To raise £173 million for a long only equity trust is an excellent achievement and an endorsement of our ability to find exceptional growth companies in both listed and unlisted space in the US.

“The Trust will seek to grow its assets from here through issuance at a premium to NAV in the way that most of the other trusts we manage have done over the past 12 months.”