Edison issues update on Baillie Gifford China Growth Trust (BGCG): China’s recovery well worth the wait
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Edison Investment Research Limited
London, UK, 12 December 2023
Edison issues update on Baillie Gifford China Growth Trust (BGCG): China’s recovery well worth the wait Baillie Gifford China Growth Trust (BGCG) invests in China, focusing on innovative, rapidly growing companies best positioned to benefit from China’s still favourable long-term economic outlook and the structural trends that should drive equity markets for years to come. Key portfolio themes include e-commerce, food delivery, domestic brands, semiconductors, robotics and automation, and renewable energy. The trust’s relaunch in September 2020 coincided with a series of challenges for the Chinese economy, investor confidence and the growth companies BGCG favours, so performance has lagged the benchmark. However, the operational performance of most of BGCG’s holdings is strong, their prospects are very positive, and the trust’s managers believe that it is only a matter of time until confidence returns and share prices more accurately reflect these robust fundamentals.
BGCG’s performance since its relaunch has been disappointing. It has declined by 44.0% in NAV terms and 58.2% on a share price basis over the three years to the end of November 2023, compared to the benchmark MSCI China All Share Index’s 29.2% fall. Near-term returns have also been poor. However, due to its long-term investment focus, BGCG’s managers ask to be judged on performance over five years or more and, on this basis, it is still very early days for the trust. Investors may be reassured by the Chinese authorities’ renewed commitment to prosperity and the private sector and by an apparent warming in relations between China and the US.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Joanne Collins +44 (0)20 3077 5700 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
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1795175 12-Dec-2023
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