Baillie Gifford European Growth Trust appoints new portfolio manager in push to enhance performance

Baillie Gifford European Growth Trust plc (LSE:BGEU) has named Joe Faraday as its new portfolio manager, effective 1 April 2026, replacing Stephen Paice and Chris Davies. The appointment forms part of the board’s efforts to strengthen performance while maintaining the trust’s established growth-focused approach and exposure to private companies. Faraday, a long-serving member of Baillie Gifford’s European equities team with close to two decades of experience on a major global ex-U.S. strategy, will oversee the portfolio with an emphasis on building a more diversified growth allocation across a wider range of sectors.

Alongside the management change, the board has kept in place a performance-linked tender offer that would be triggered if the trust fails to outperform its benchmark by 30 September 2028. This mechanism, which could allow shareholders to exit if performance targets are not met, underscores the board’s focus on accountability and improving returns. It also signalled that further measures could be considered if relative performance does not strengthen.

The board confirmed that Faraday’s appointment does not involve any material changes to the trust’s investment objective or policy, highlighting continuity in the overall strategy. Chairman David Barron thanked the outgoing managers for their contributions and said the board believes Faraday’s investment approach is well suited to improving the trust’s relative performance while remaining aligned with shareholder interests.

The trust’s outlook presents a mixed picture. While profitability remains solid, concerns persist around declining revenue and uneven cash flow trends. Technical indicators suggest modest positive momentum, and valuation metrics imply the shares are reasonably priced. However, the absence of recent earnings call commentary or major corporate events limits additional insight into near-term performance drivers.

More about Baillie Gifford European Growth Trust plc

Baillie Gifford European Growth Trust plc is a UK-listed investment trust focused on delivering long-term capital appreciation through a diversified portfolio of European equities. The trust follows a growth-oriented investment style and includes exposure to private companies, aiming to differentiate itself among European equity peers while targeting sustained outperformance of its benchmark over time.