Baillie Gifford to launch new American smaller companies trust


#1

Baillie Gifford has announced plans to raise up to £250m by embarking on one of the most ambitious mainstream equity trust launches in over a decade for the Baillie Gifford US Growth Trust.

Read the full post here:


#2

This looks interesting. It would be nice to know a little bit more though about what the portfolio will look like. Will it be like Edinburgh Worldwide or the Baillie Gifford American fund? Because both of those exist already. I need to know how it will differ form those two before I can decide if I want to partake in this listing.


#3

Is this going to suffer like the Woodford Patient Capital fund has? It hasn’t done as well as expected.

Does Baillie Gifford just want to create a riskier version of their American fund investing in unproven companies?

There just isn’t enough information here, even though there is a lot of detail I just can’t get me head around what this fund is going to look like.

Need more info please @RichardOwen @whichinvest


#4

I am more positive about this @pauls and @geordieboy. Baillie Gifford have done very well with most of their range of trusts and funds, I am certainly interested in this one, though I would also like to know more.

Like @pauls stated, I’d like to see where and how it differs from Edinburgh Worldwide, which was very well described in an article here: https://whichinvestmenttrust.com/could-edinburgh-worldwide-be-the-smaller-companies-scottish-mortgage/ -Worth having a read if you haven’t already.

We will find out more when the prospectus come out, might just have to wait unless the WhichInvestmenttrust can find out more for us.


#5

Well one difference with Edinburgh Worldwide is America. EWI invests worldwide, all be it over half the portfolio is in the USA. The question is how much overlap with there be?

I think Baillie Gifford US Growth Trust will be a cross between the BG American fund and EWI, because EWIO invests in unlisted as well as listed companies, but as they state in the article there are more high growth in America.


#6

I think you might be right there @citygirl but I agree the key thing will be if it is different enough from EWI. After all, according to the EWI article 57% is invested in America - that’s a lot. It’s not quite an American fund but it’s getting there.

I’d like to know how much of the portfolio will be in unlisted too. If it’s too high there’s a real risk of it getting seriously burned in the next stock market crash which might be less than two years away, who knows, it’s gotta come around again!


#7

Gabelli Value Plus+ invests in unlisted U.S. stocks, so there is already an option for investing in unlisted stocks. Like others have said here I think there is a real risk this will look a little bit too much like Edinburgh Worldwide, which I bought recently, after Which Investment Trust tipped it. I don’t need to own two trusts owning similar stocks.


#8

Hi guys, thanks for all your feedback. We will try and get more information on this and address the many points you’ve raised.


#9

Thanks @RichardOwen

I would also like to know how big Baillie Gifford would like to see this grow? Do they want to keep it relatively small so it can continue to invest in medium sized companies or not.

I think this will be pretty crucial to illustrating how they intend to develop this over the long run.


#10

I’ve updated the article removing the reference to ‘patient capital’ because Baillie Gifford have told us this is misleading because they are not intending for the new trust to be a ‘patient capital’ early stage investing fund.


#11

Thanks and I look forward to getting more information on this. This might be something I would consider investing in.


#12

@RichardOwen @whichinvest May I request that you produce an article offering real insight in to this new trust, much along the lines of the one you have done on Edinburgh Worldwide?

I only ask because you can produce really useful and insightful features, which are invaluable to investors such as me who are cash rich but time poor.

Thank you.


#13

I second your request @casper. I have received an email from Baillie Gifford with a newspaper release on plan to float this new trust but what I could do with is some analysis, who the managers will be, what is their track record, how is the fund going to be managed etc.

If you can answer these points I’ll be a happy man @RichardOwen @whichinvest


#14

I third it @casper @wickedinvestor. If you don’t mind me joining your gang :wink:


#15

Welcome to the gang @lukas !


#16

Is it a boys only gang? think carefully before answering in light of recent events, ha! @casper @Lukas @wickedinvestor


#17

In case you haven’t seen it, Baillie Gifford have released a video introducing the new trust:


#18

The YouTube video is more irritating than helpful. The use of really annoying lift music is so off-putting because it is dire.

I don’t have enough information on this to come to a decision so I’m holding off until it launches and I can buy it later. Not enough info on who the managers are, what this fund will be like, how it will operate etc.

What does everyone else think?


#19

Yeah I’m with you @angieb, I’ll decide if I’m going to buy this after it lists. Baillie Gifford have sent out a lot of very little in terms of info and there just isn’t very much info on this in any of the websites/papers/magazines that I’m aware of.

Why take the risk investing in it now when you can decide in year’s time once you know more about who the managers are.

Weren’t @whichinvest @RichardOwen going to do more on this?


#20

We hoped to meet the new managers to produce a more substantial piece but we didn’t get the opportunity to do this @harjinder.