After outperforming in the first half, its returns were poor in the second six months and its net asset value total return of 15.6% for the year ending 30 April fell well below the 25.2% by the FTSE All-Share Index.

The slump has been blamed on a lack of exposure to oil & gas, mining, and banks, as well as negative stock selection, particularly in platform and software companies affected by AI concerns.

The largest detractors to relative performance were Auto Trader, Experian and Rightmove. Renishaw and Just Group were among the notable positive contributors to relative performance.

Chairman Neil Rogan commented: “However well [insert Prime Minister of your choice] does, it is hard to envisage a strong recovery in UK economic growth by 2029. That does not necessarily mean that stock market returns will be poor.

“After all, the past few years have seen strong absolute market returns despite the deteriorating political and economic environments. Well-managed companies can and do deliver good returns in very difficult conditions.

“We hear that there is a clear appetite for a UK investment trust with high active share and a long-term approach to growth investing.

“We recognise that shareholder patience is thin. Ours is, too: The board is mindful of the 2027 Continuation Vote and the 2029 performance conditional tender offer. While we believe that the probability of success has improved, we know that we need to see clear evidence of recovery to pass beyond these two hurdles.”

James Smith was brought in as co-portfolio manager to work alongside Iain McCombie and Milena Mileva. Mr Smith had a decade of experience working elsewhere before joining Baillie Gifford in 2022.

Mr Rogan added: “We expect to see a small increase in the number of holdings and an increase in portfolio turnover from less than 5% towards 20% p.a. as a greater emphasis is put on portfolio construction and sell discipline. Importantly, the portfolio will retain its strong growth credentials and should be quicker to adapt to changing conditions.”

The company recommended a final dividend of 6.20p per share, an increase from 5.70p in 2025, and has seen 20,949,202 shares bought back into treasury, representing 16.2% of issued share capital.

A management fee reduction from 0.50% to 0.40% is effective from 1 July 2026 until 30 April 2029, and James Smith has been appointed as co-portfolio manager.