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Baillie Gifford US Growth Trust
Mickey
Posted: 28 February 2018 14:39:48(UTC)
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Baillie Gifford have announced their intention to seek 250 million for a US Growth IT, details to be published in March.

https://www.bailliegifford.com/en/uk/individual-investors/literature-library/press-releases/baillie-gifford-us-growth-trust-plc/

Keith Cobby
Posted: 28 February 2018 20:15:44(UTC)
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This should be a successful launch and I'm in!
ali haouas
Posted: 17 March 2018 13:29:43(UTC)
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i 've only discovered this today and what is the quickest way to apply given that applications forms have to be submitted by 3pm on 129 march? can i apply through my broker? or does it have to be through the appolication form?
Sara G
Posted: 17 March 2018 13:49:19(UTC)
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You should be able to apply via your broker / platform - I applied this week via Interactive Investor and it was processed instantly.
King Lodos
Posted: 17 March 2018 14:35:18(UTC)
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I always tend to think: if they're launching a fund like this now, they must know something.

I thought that with WPCT .. It turned out it was launched at exactly the peak of the Biotech bull market – which is why I didn't hold onto it too long.

My reservation with a fund like this is I think analysts expect a US recession within the next 2 years .. And if this is focusing on growth stocks, that have valuations supported by high growth estimates, you don't really want a looming threat that's likely to cut growth estimates.

This is a chart I keep (showing yield curve inversion) that might give a fair estimate of when to expect that US recession.

When the blue line dips below the horizontal axis, a recession tends to follow within a year or so .. Looming, is the word I'd use .. Certainly not certain

https://i.imgur.com/ZFf0yS1.jpg
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James Wood on 17/03/2018(UTC), Sara G on 17/03/2018(UTC), Mike L on 01/05/2018(UTC)
Sara G
Posted: 17 March 2018 15:36:20(UTC)
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King Lodos;58887 wrote:
I always tend to think: if they're launching a fund like this now, they must know something.

I thought that with WPCT .. It turned out it was launched at exactly the peak of the Biotech bull market – which is why I didn't hold onto it too long.

My reservation with a fund like this is I think analysts expect a US recession within the next 2 years .. And if this is focusing on growth stocks, that have valuations supported by high growth estimates, you don't really want a looming threat that's likely to cut growth estimates.

This is a chart I keep (showing yield curve inversion) that might give a fair estimate of when to expect that US recession.

When the blue line dips below the horizontal axis, a recession tends to follow within a year or so .. Looming, is the word I'd use .. Certainly not certain

https://i.imgur.com/ZFf0yS1.jpg


All fair points, but to offer some challenges...

First, I don't see this as akin to WPCT due to the broader expertise / focus at Baillie Gifford, plus the purpose of the fund is less to do with a particular hot sector and more about responding to the shift in how capital is being raised, especially in the US.

Undoubtedly there is a recession coming at some point, but I don't think that all companies will be impacted equally. I think one effect of the pace of technological change is that there will be a succession of companies growing rapidly whatever the rest of the economy is doing - indeed their disruptive effect will likely trigger a downturn in some sectors. The key question is how good the managers will be at identifying them.

More broadly, that chart suggests to me that stocks generally keep rising in the long term whatever else is going on (sorry if I am misinterpreting it) so I'm not inclined to give up on growth stocks across the board, although I'd probably steer clear of growth oriented ETF's.

3 users thanked Sara G for this post.
King Lodos on 17/03/2018(UTC), M Larson on 04/04/2018(UTC), Mike L on 01/05/2018(UTC)
King Lodos
Posted: 17 March 2018 16:31:43(UTC)
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Sara G;58888 wrote:
All fair points, but to offer some challenges...

First, I don't see this as akin to WPCT due to the broader expertise / focus at Baillie Gifford, plus the purpose of the fund is less to do with a particular hot sector and more about responding to the shift in how capital is being raised, especially in the US.

Undoubtedly there is a recession coming at some point, but I don't think that all companies will be impacted equally. I think one effect of the pace of technological change is that there will be a succession of companies growing rapidly whatever the rest of the economy is doing - indeed their disruptive effect will likely trigger a downturn in some sectors. The key question is how good the managers will be at identifying them.

More broadly, that chart suggests to me that stocks generally keep rising in the long term whatever else is going on (sorry if I am misinterpreting it) so I'm not inclined to give up on growth stocks across the board, although I'd probably steer clear of growth oriented ETF's.


Absolutely – and I'm into this idea that tech might be the new consumer staples .. Even things like Facebook could be fairly recession proof.

It's a very tricky one for me, because historically Tech's supposed to be the worst performing sector long-term, and growth's supposed to underperform value .. In both cases you pay a hefty price for optimism .. So I've been reluctant to jump into BG's approach with both feet .. But also keen not to miss out on it too much.

And yep, it's a log chart of the US market plotted against .. In some cases recessions haven't even been bad for stocks .. I do wonder about recession with the level of debt we've got now though.
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Sara G on 18/03/2018(UTC)
Rishan
Posted: 03 April 2018 18:01:11(UTC)
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For anyone interested, or with a Baillie Gifford investment plan, like me;

I have just received a reply to an email I sent and apparently this IT will not be available through Baillie Gifford's own platform! Rather irritating discovery to put it mildly...

Why would this be, unless the future of the platform is uncertain? Either way I'm now very tempted to move my investments away from it...

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Keith Cobby on 03/04/2018(UTC)
Keith Cobby
Posted: 03 April 2018 18:37:29(UTC)
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Interesting post Rishan. They tried to telephone me today but I was unavailable. I had put in a request to add it to my Children's Savings Plan. Have bought on other platforms and expected they would offer it directly.
Rishan
Posted: 06 April 2018 12:52:31(UTC)
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Keith Cobby;60079 wrote:
Interesting post Rishan. They tried to telephone me today but I was unavailable. I had put in a request to add it to my Children's Savings Plan. Have bought on other platforms and expected they would offer it directly.


Strange one, isn't it. Have they confirmed as much to you as well? I have asked for an explanation, but so far no reply forthcoming. Will post up here if they come back with anything.
philip gosling
Posted: 06 April 2018 13:08:08(UTC)
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Rishan;60239 wrote:
Keith Cobby;60079 wrote:
Interesting post Rishan. They tried to telephone me today but I was unavailable. I had put in a request to add it to my Children's Savings Plan. Have bought on other platforms and expected they would offer it directly.


Strange one, isn't it. Have they confirmed as much to you as well? I have asked for an explanation, but so far no reply forthcoming. Will post up here if they come back with anything.





Well it will not be on their platform = see email I got from Baillie Gifford this morning

"....Thank you for your email.

I can confirm that the new US Growth Trust is not available for investment directly with Baillie Gifford through our ISA. You may be able to invest in this Trust through another fund platform with an ISA product. At this time there are no plans to introduce this Trust within our savings plans, however, should this change then our website will be updated accordingly......"

So if Fund not good enough for their own ISA Platform ? maybe Fund and or the Platform may have problems soon.
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Tim D on 06/04/2018(UTC)
Keith Cobby
Posted: 06 April 2018 14:45:08(UTC)
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I think this is extraordinary considering how investor friendly they are. Possibly they are looking to close their savings plans although they must have hundreds of millions invested through it.

Not sure of the status of the trust as SmartInvestor (Barclays) had a message saying it was ineligible to be held in a SIPP although we bought through it. Apparently we cannot buy but can sell. Something odd happening.
Rishan
Posted: 01 May 2018 08:37:14(UTC)
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Keith / Philip

I have just logged in to my non-ISA account and discovered that this IT now appears in the drop down list of dealing options. I have not tried to buy it yet, but fingers crossed it is available!
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Keith Cobby on 01/05/2018(UTC)
Keith Cobby
Posted: 01 May 2018 08:47:14(UTC)
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Thanks Rishan, I just had a look. They sent me my letter requesting to add it on back to me but hopefully they have had a change of mind. Hope the Schroder trust is also available through the plans.
Keith Cobby
Posted: 01 May 2018 19:03:57(UTC)
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Just had another look and the US option has gone.
Rishan
Posted: 01 May 2018 21:04:37(UTC)
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What a farce! It was definitely there. I think I'll be phoning them again tomorrow
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