Investment Trusts  

Baillie Gifford’s £11bn trust fit for 'much bigger scale'

By the time Alibaba listed in 2014, it was worth £158bn.

Ms Flood said: “Investing before it became listed meant our return was six times rather than two times. But when we invested, Alibaba was already a £45bn company. It’s a long way from a traditional private equity investment.”

More recent examples include companies such as Spotify and TikTok, which are “big names” and “successful companies” which Ms Flood said investors “cannot get exposed to” unless through unquoted investments.

Strong performance

The trust has performed well during its tenure. Over the past five years, it has returned 180 per cent in share price terms compared to 58 per cent from its average peer in the AIC Global Sector.

It has also been resistant to the recent coronavirus crisis, as shares in US technology companies such as Amazon and Netflix — both within its top 10 holdings — have bucked the downward trend.

imogen.tew@ft.com

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