Baillie Gifford, the Edinburgh-based investment management partnership, has today announced that it is to launch a new American-focused investment vehicle to be called the Baillie Gifford US Growth Trust.
The wealth manager said it will target an issue of £250 million by means of a placing and offer for subscription of ordinary shares.
The trust will be managed by Gary Robinson and deputy managers, Helen Xiong and Andrei Kiselev, members of Baillie Gifford’s US Equities Team and managers of the £924 million Baillie Gifford American Fund which has returned 165 per cent over five years .
They will invest predominantly in equities of companies which are incorporated or domiciled, or which conduct a significant portion of their business in the US.
It is expected that the new fund’s initial investments will be predominantly in listed securities, but that exposure to unlisted securities will be increased over time.
Baillie Gifford said investments will usually be in listed securities with a market capitalisation of at least US$1.5bn; and in unlisted securities with pre-raise valuations of at least US$500m.
An ongoing annual management charge of 0.70 per cent is to be placed on the first £100 million of the net asset value of the fund and 0.55 per cent thereafter.
However, once launched, the US Growth Trust will bear other ongoing operational expenses that will be included in its ongoing expenses and charges.
Gary Robinson, investment manager at Baillie Gifford, said: “This is an exciting opportunity for investors to gain exposure to the truly innovative growth companies in the US. For over two decades, our American Fund has successfully invested in these companies in the public markets. This new investment trust will allow the team to take the same distinctive philosophy and process that has served our American Fund so well and apply it to a broader opportunity set which includes both public and unquoted companies.”
Details of the placing and offer for subscription will be set out in full in a prospectus which Baillie Gifford said is expected to be published in early to mid-March.
The offer for subscription will include an intermediaries offer, allowing private investors to participate in the Issue via the trading platforms of intermediaries to be appointed.
It is expected that the Issue will close before the end of March.