**Summary of Baillie Gifford European Growth Trust Annual Results**
**Financial Performance**
**Net Asset Value (NAV) Total Return** 5.5% for the year to 30 September 2025, compared to 15.5% for the FTSE Europe ex UK Index.
**Share Price Total Return** 14.5% for the same period, narrowing the discount to NAV from 15.7% to 8.6%.
**Second Half Performance** NAV and share price total returns outperformed the benchmark by 1.0% and 1.4%, respectively.
**Portfolio Highlights**
**Unlisted Companies** Six unlisted companies accounted for 15.5% of net assets, contributing strongly to performance.
**Share Buybacks** 27,060,412 shares were bought back at a total cost of £26.9m, representing 7.7% of issued share capital.
**Chairmans Statement**
**Investment Strategy** Emphasis on using the advantages of the investment trust structure, including gearing, exposure to unlisted companies, and divergence from the benchmark.
**Performance Improvement** Signs of improvement in the second half of the year, with many portfolio companies delivering strong operating performance.
**Managers Report**
**Portfolio Rebalancing** Steps taken to reposition the portfolio and broaden the range of growth companies.
**Private Holdings** Private investments, particularly Bending Spoons, significantly contributed to returns.
**Sector Shifts** Increased exposure to healthcare and reduced exposure to industrials, reflecting attractive valuations and growth potential.
**Key Investments**
**Bending Spoons** Largest private holding, generating a 258% return and representing 10% of NAV.
**Spotify, Ryanair, Prosus** Strong performers with operational efficiency and market leadership.
**Financial Metrics**
**Revenue per Share** Increased to 0.78p from 0.72p in 2024.
**Dividend** Final dividend of 0.72p per share recommended, subject to shareholder approval.
**Risk Management**
**Principal Risks** Investment strategy, cyber security, political and economic risks, financial risks, private company investment risks, climate and governance risks, discount risk, custody and depositary risk, operational risk, leverage risk, and regulatory risk.
**Emerging Risks** Ongoing geopolitical tensions, emerging technologies, and market volatility.
**Outlook**
**Macroeconomic Environment** Improving outlook for Europe, with attractive valuations and potential for share price reversion to fundamentals.
**Portfolio Positioning** Focus on high-quality European growth businesses with strong fundamentals and long-term growth potential.
**Conclusion**
Baillie Gifford European Growth Trust demonstrated resilience and improvement in performance, particularly in the second half of the year, driven by strategic portfolio adjustments and strong contributions from private holdings. The trust remains committed to its long-term growth strategy, leveraging the advantages of the investment trust structure to deliver value to shareholders.