Baillie Gifford trust announces manager change – Daily Business

Joe Faraday takes over the BGEU portfolio next week (pic: Baillie Gifford)

Baillie Gifford European Growth Trust has announced a switch of portfolio manager taking effect from next week.

Joe Faraday will replace Stephen Paice and Chris Davies as the company’s portfolio manager on 1 April.

In a stock market filing, the board said it remains “highly focused on improving performance while retaining the growth style and private company exposures that differentiate BGEU from peers.

“Joe will therefore continue the company’s growth focus whilst aiming to deliver a more diversified portfolio that captures growth opportunities across a wider range of sectors.”

The board said it believes this increases the company’s prospects of improving relative performance, but added that “Joe’s appointment will not require any material changes to the company’s investment objective or policy.”

The company’s existing 100% performance-conditional tender offer remains in place and will be triggered if NAV returns do not exceed the benchmark over the four years ending 30 September 2028.

In addition, the board will continue to actively engage with shareholders and consider whether further action is required if relative performance does not improve.

Mr Faraday is an experienced investment manager, joining Baillie Gifford in 2002, and is a senior member of the European Equities team.

He has been a member of the investment management team on one of Baillie Gifford’s multi billion global ex US strategies since 2007 (International All Cap) contributing significantly to its growth in assets and long-term performance record over nearly two decades.

He graduated MEng in chemical engineering from the University of Cambridge and gained an master of business administration from the University of Edinburgh in 2009. He is also a CFA charterholder.

David Barron, chairman, said: “The board would like to thank Stephen and Chris for their longstanding contribution to the company.

“We’re delighted to welcome Joe and we believe that his investment approach better positions the company to deliver improved relative performance for our shareholders.”

EWIT shareholders back tender offer

A proposed tender offer by Edinburgh Worldwide Investment Trust has been backed by independent voting advisers ISS, Glass Lewis and PIRC.

Jonathan Simpson-Dent, Chair of Edinburgh Worldwide said: “After exhausting every reasonable and equitable solution with Saba, the tender offer provides shareholders with a fair exit option, timed to pre-empt the high probability of a change of control at next month’s AGM.”

Shareholders have until 8 April to cast their vote, although some platforms may impose earlier deadlines. Separately, shareholders that wish to tender all or any of their shares must also elect to tender their shares by 16 April.

Herald seeks Saba agreement

It has also been announced that Herald Investment Trust is actively seeking a mutually agreeable solution with New York based hedge fund Saba Capital Management regarding the company’s future.

A potential backstop is a tender offer at near net asset value per share if an agreement is not reached.

The company is also exploring tax-efficient alternatives for shareholders who wish to remain invested in a non-Saba controlled vehicle, acknowledging the significant capital gains many shareholders hold.

To enable a potential cash exit, the investment manager has accelerated the sale of portfolio holdings, increasing liquidity to approximately 26% of net assets as of 26 March, up from 18.4% on 28 February.

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