Baillie Gifford European Growth trust NAV tumbles 40%

Optimistic about current opportunities

Baillie Gifford’s European Growth trust reported a net asset value loss of 40% in the year to September, due to its technology-related holdings being “punished severely”.

This compares to a loss of 15.3% for the trust's comparative index, while the trust's share price total return for the period also fell 47.7%. The largest detractors to relative performance were: Zalando, an online fashion retailer; Takeaway.com, an online food delivery service; and Wizz Air, a low cost airline. Trust co-managers Stephen Paice and Chris Davies said: "With hindsight it is clear that we underestimated inflationary forces and misjudged the speed and magnitude of the subsequent correction in company valuations." However they are optimistic about current opportunities. ...