The £370 million Baillie Gifford European Growth Trust announced its net asset value per share (NAV) total return was -40.4% for the year to September 30, 2022, compared to a total return of -15.3% for the FTSE Europe ex UK Index.

The share price total return for the same period was -47.7%.

The fund said the largest detractors to its relative performance were online fashion retailer Zalando, online food delivery service Takeaway.com, and low cost airline Wizz Air.

“A reversal of fortune and a very disappointing year in absolute and relative terms,” wrote the fund’s chair Michael MacPhee.

“Since Baillie Gifford began managing the portfolio in November 2019, the NAV total return has been 0.8% compared to a total return of 3.9% for the FTSE Europe ex UK Index, in sterling terms.

“The share price total return has been -5.6%, with the discount widening from 7.5% to 13.5%.

“It has certainly been a challenging year for all investors but it has been particularly hard for growth investors.

“Reasons for this are discussed at length in the managers’ report …

“Despite strong operational performance from our holdings … the share prices of the types of companies we own have fallen very significantly, with those companies which have a technology angle to them being punished severely.”