Baillie Gifford US Growth Trust (USA) H1 2025 earnings summary

Executive summary

• Achieved a 40.9% share price return and 29.4% NAV return over six months, significantly outperforming the S&P 500 Index's 15.3% return in sterling terms for the same period.

• Discount to NAV narrowed from 11.2% to 3.3% as of 30 November 2024, aided by active share buybacks totaling £21.9m for 10.5m shares.

• Portfolio includes 25 private companies, now 33.5% of total assets, with one new private investment (COSM Experience) and no exits during the period.

• Post-period, a shareholder requisition by Saba Capital Management prompted a Board response, urging shareholders to vote against proposed resolutions seen as value-destructive.

Financial highlights

• Shareholders' funds increased to £803.7m from £643.9m at 31 May 2024.

• Net asset value per share rose to 280.31p from 216.65p, and share price to 271.00p from 192.40p.

• Revenue earnings per share were negative at (1.16p), compared to (0.96p) in the prior year period.

• Gearing reduced to 4% from 5% at the previous year-end.

• Active share relative to S&P 500 Index remained high at 86%.

Outlook and guidance

• Optimistic on continued US market leadership in innovation, especially in generative AI and technology.

• Expects ongoing opportunities for growth investors as US companies drive global innovation.

• Board and management remain committed to the current investment strategy and urge shareholder support at the upcoming general meeting.