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The following is the results announcement for the year to 31 January 2022 which was approved by the Board on 5 April 2022. Results for the year to 31 January 2022 |
Over the year the Company's net asset value total return was -27.0% and the share price total return was -37.1%, compared with a total return of -20.5% for the MSCI China All Shares Index* (in sterling terms) and with 38.1% and 67.9% for the Company's previous financial year.
- In the period from 16 September 2020 (the date of the adoption of the China strategy), the Company's net asset value and share price returned -9.0% and -9.2% respectively compared to a total return of -10.8% for the MSCI China All Shares Index (in sterling terms).
- Notable positive contributors are varied and include Li Ning, a leading domestic sportswear manufacturer that is benefiting from a shift towards local Chinese brands; CATL, a company that posted exceptionally strong operational results driven by China's shift to electric vehicles and renewable energy; and Bytedance, a global leader in short form video, and the Company's only private holding;
- In terms of negative contributors, the Company saw weak share price performance from a number of its healthcare holdings as the sector sold off markedly in response to the likelihood of increased regulatory scrutiny here;
- The Company has also bought a number of stocks over the year that we believe are well positioned to benefit from China's green revolution. These include Yunnan Energy New Material, a separator maker for large form batteries, Sungrow, an inverter maker for solar and wind farms, and Zijin Mining, a copper producer and enabler of China's green infrastructure; and
- Whilst investment in China may prove volatile over a short term horizon, the Managers have a long-term investment approach and are optimistic about the prospects for the future.
* The Company's benchmark is the MSCI China All Shares Index (in sterling terms), prior to 16 September 2020 the benchmark was MSCI AC Asia ex Pacific Index. Data is chain-linked from 16 September 2020 to form a single comparative index.
† Alternative Performance Measure – see Glossary of Terms and Alternative Performance Measures at the end of this announcement.
Source: Refinitiv/Baillie Gifford and relevant underlying index providers.
Baillie Gifford China Growth Trust aims to achieve long term capital growth through investment principally in Chinese companies which are believed to have above average prospects for growth. At 31 January 2022 the Company had total assets of £228m.
The Company is managed by Baillie Gifford & Co, an Edinburgh based fund management group with around £277 billion under management and advice as at 1 April 2022.
Past performance is not a guide to future performance. The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. The Company may borrow money to make further investments. This is commonly referred to as gearing. The risk is that, when this money is repaid by the Company, the value of these investments may not be enough to cover the borrowing and interest costs, and the Company makes a loss. If the Company's investments fall in value, gearing will increase the amount of this loss. The more highly geared the Company, the greater this effect will be.
Investment in investment trusts should be regarded as medium to long term. You can find up to date performance information about China Growth at bailliegiffordchinagrowthtrust.com