Baillie Gifford US Growth Trust – Annual Results

Baillie Gifford US Growth Trust plc (‘USA’)

Legal Entity Identifier: 213800UM1OUWXZPKE539

Regulated Information Classification: Notice of Results

Results for the year ended 31 May 2025

During the financial year to 31 May 2025, the Company’s share price and net asset value (‘NAV’ after deducting borrowings at fair value) returned 24.5% and 22.1% respectively. This compares with a total return of 7.2% for the S&P 500 Index^* (in sterling terms).

• As at 31 May 2025, we held 27 private company investments which collectively compromised 34.9% of total assets.

• Turnover in the portfolio over the financial year was 9.1% which is consistent with our five year plus time horizon.

• Three new private company investments were made: Rippling (a workforce management system), Runway AI (a generative AI video platform) and Cosm (an immersive entertainment company).

• Five listed holdings were added to the portfolio: DraftKings, Globant, Lineage, SharkNinja and The Ensign Group.

• 10X Genomics, Coursera, HashiCorp and Sprout Social were sold during the period.

Tom Burnet, Chair

‘The year ahead presents significant opportunities for our investment strategy. Technology continues to reshape entire industries, creating opportunities for the visionary companies in our portfolio. Our shareholders’ patient capital enables us to participate in this transformation, and I am optimistic about what we can achieve together and the resulting returns for shareholders.’

Gary Robinson & Kirsty Gibson, Portfolio Managers

‘As long-term investors, we anchor our approach for Baillie Gifford US Growth Trust on patience through volatility, conviction-led investing, and relentless focus on growth. Identifying tomorrow’s exceptional companies can be challenging, and success rarely unfolds smoothly. Our focus is therefore on identifying resilient, adaptable companies which are underpinned by structural growth drivers and whose trajectories are largely price-indifferent. Whilst periods of extreme volatility – such as that witnessed over the past five years – can appear daunting, they can also be periods in which truly foundational companies demonstrate their value. We believe that our investment team has the resource, access and expertise to identify these companies and hold them for long term growth.’

Baillie Gifford US Growth Trust seeks to invest predominantly in listed and private US companies which the Company believes have the potential to grow substantially faster than the average company, and to hold onto them for long periods of time, in order to produce long term capital growth. The Company has total assets of £780.9 million (before deduction of loans of £37.1 million) as at 31 May 2025.

You can find up to date performance information about Baillie Gifford US Growth on the Company website at bgusgrowthtrust.com^‡.

Baillie Gifford US Growth Trust is managed by Baillie Gifford & Co, the Edinburgh based fund management group with approximately £210.2 billion under management and advice in active equity and bond portfolios for clients in the UK and throughout the world (as at 6 August 2025).

^*  Source: LSEG and relevant underlying index providers. See disclaimer at the end of this announcement. For a definition of terms see Glossary of terms and alternative performance measures at the end of this announcement.

^‡  Neither the contents of the Company website nor the contents of any website accessible from hyperlinks on the Company website (or any other website) is incorporated into, or forms part of, this announcement.

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. This is because the share price is determined by the changing conditions in the relevant stock markets in which the Company invests and by the supply and demand for the Company’s shares.

Chair’s Statement

Performance

I am pleased to report a strong period of performance for the financial year ending 31 May 2025. Your Company has delivered excellent returns, with the share price and net asset value total returns reaching 24.5% and 22.1% respectively – significantly outperforming the S&P 500 Index’s 7.2% total return in sterling terms^*.

Over the five years to 31 May 2025 the share price and net asset value returned 26.7% and 45.4% respectively. The comparative index returned 92.1%* (total return and in sterling terms) over the same period. As flagged in the Managers’ review on pages 10 to 14 our five year performance is not where we hoped it would be. Following a thorough and methodical review the Manager’s implemented a number of portfolio construction enhancements and guide rails to improve how they build and maintain a high-conviction, high-growth portfolio.

Since we launched on 23 March 2018, we have delivered share price and net asset value total returns of 138.3% and 170.0% respectively, noting our net asset value total return has kept pace with the S&P 500 Index’s 170.1% total return (in sterling terms)^*. This reflects the bottom-up, long-term approach that Gary Robinson and Kirsty Gibson bring to managing your portfolio, and I encourage you to read their detailed insights in the Managers’ review.

Share Issuance and Buy-Backs

I am encouraged by the gradual shift in sentiment we have witnessed this year. While we began the period trading at an 11.2% discount, this narrowed to 9.4% by year-end.

We have remained active stewards of your capital, buying back 16 million shares during the year for £35.5 million – representing 5.4% of our issued share capital. The Board discusses the Company’s liquidity policy and other discount management options regularly, as we understand how important this is to you as shareholders.

Looking ahead, we have the flexibility to issue up to 29.5 million new shares or buy back 33.7 million shares under authorities granted at last year’s Annual General Meeting. We will be seeking to renew both authorities at our upcoming October Annual General Meeting.

Gearing

The Company has two loan facilities in place: (i) a US$25 million three-year revolving credit facility from ING Bank N.V., London Branch that expires on 31 July 2026; and (ii) a US$25 million three‑year revolving credit facility from The Royal Bank of Scotland International Limited that expires on 18 October 2026. The facilities are available to be used to fund purchases of securities as and when suitable opportunities arise. As at 31 May 2025, the facilities had been drawn down in full (31 May 2024 – US$50 million). Gearing fell from 5% to 4% over the course of the year.

Earnings and Dividend

The Company’s priority is to generate capital growth over the long term by identifying exceptional American growth businesses and owning them for long enough that the advantages of their business models and cultural strengths become the dominant drivers of their valuations. The Company therefore has no dividend target and does not seek to provide shareholders with any level of dividend. The net revenue return per share for the year to 31 May 2025 was a negative 2.54p (period to 31 May 2024, a negative 2.07p). As the revenue account is again running at a deficit, the Board has decided that no final dividend be paid. Should the level of underlying income increase in future years, the Board will seek to distribute the minimum permissible to maintain investment trust status by way of a final dividend.

Private company (unlisted) investments

As at the Company’s year end, the portfolio weighting in private company (unlisted) investments stood at 34.9% of total assets, invested in twenty-seven companies (2024 – 34.1% invested in twenty-four companies). There were three new purchases in the year, Cosm, Rippling and Runway AI. There is commentary on the new and existing holdings in the Managers’ review and Review of investments on pages 10 to 14 and 28 to 32. Your portfolio managers remain alert to further special and high potential opportunities not widely accessible through public markets.

Requisitioned general meeting

As shareholders will be aware, the Company was requisitioned on 18 December 2024. In response to the requisition, the Company published a circular on 6 January 2025 and held a general meeting on 3 February 2025. The Board would like to thank shareholders for their support during this period, in particular, for their participation in the shareholder vote at the general meeting.

Following the general meeting, the Board engaged with a significant number of shareholders to understand their views on the Company including those of our largest shareholder Saba Capital Management L.P. (‘Saba’). This proved to be a most helpful exercise. The Board was pleased to hear the overwhelming shareholder support for the Company’s long-term objective of investing in the most exceptional growth companies America has to offer. Feedback from shareholders continues to inform decisions the Board makes on a number of topics including strategy, marketing, capital allocation and liquidity. Shareholders continue to back the Manager in its aim to build Baillie Gifford US Growth Trust into a world‑class savings vehicle for shareholders, delivering above average long-term returns.

Board composition

During the period, Ms Palmer resigned from the Board to pursue other opportunities. The Board and I would like to thank her for her significant contribution to the Company. The Board continues to carefully consider succession planning and we are actively reviewing our composition.

Environmental, Social and Governance (ESG)

The Company’s Managers believe that sustainability is inextricably linked to being a long-term investor, and their thoughts on this topic are set out in more detail on page 16. The Managers pursuit of long-term growth opportunities typically involves investment in entrepreneurial, disruptive and technology-driven businesses. These companies are often capital-light with a low carbon footprint.

Annual General Meeting

I would welcome the chance to meet you in person at our Annual General Meeting on Thursday, 2 October 2025, at 12.00pm in Edinburgh, at the offices of Baillie Gifford & Co. After the formal business of the meeting the Managers will be presenting their latest insights and there will be the chance to meet with and question the Board. If you cannot attend, please do send us your questions – we will read and answer every one. Questions can be submitted in advance by email to enquiries@bailliegifford.com or by calling 0800 917 2113 (Baillie Gifford may record your call). Irrespective of whether you are attending, we would encourage you to submit your proxy votes in advance – we value the views of all shareholders, regardless of the size of their shareholding, and every vote counts.

Outlook

The year ahead presents significant opportunities for our investment strategy. Technology continues to reshape entire industries, creating opportunities for the visionary companies in our portfolio. Our shareholders’ patient capital enables us to participate in this transformation, and I am optimistic about what we can achieve together and the resulting returns for shareholders.

Thank you for your continued trust and support.

^*  Source: LSEG and relevant underlying index providers.