This is a monthly update for the Baillie Gifford European Growth investment trust, a fund that buys European companies expected to grow for a long time. Over the past year it returned 14.5%, but its benchmark, a broad European stock index, rose 21.3%, so it lagged badly; over five years it fell while the benchmark climbed. The report makes no market forecast, just says it sticks to picking quality companies and holding them. The portfolio is very concentrated: the top holding is Bending Spoons, an Italian app company, at 17.1% of assets; then ASML, the Dutch chip-equipment maker, at 6.3%; and Roche, the Swiss drug firm, at 4.6%. It warns that using borrowed money can amplify losses and that the share price can swing sharply.
Baillie Gifford European Growth Trust is an investment trust focused on long-term capital appreciation in European securities, with a core portfolio of high-quality, owner-managed growth companies. The portfolio is concentrated in 30 to 60 listed and private companies, with an expected active share
For the year ended July 31, 2026, the fund's NAV rose 14.5% and its share price rose 13.8%, both underperforming the FTSE Europe ex UK Index (21.3%); over five years, NAV is down a cumulative 15.9%, versus a cumulative gain of 58.1% for the benchmark over the same period.
| Metric | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|
| Fund (NAV, GBP total return, dividends reinvested) | 14.5% | 17.1% | -15.9% | 85.2% |
| Fund (share price) | 13.8% | 25.7% | -21.2% | 103.3% |
| Benchmark (FTSE Europe ex UK Index) | 21.3% | 50.3% | 58.1% | 170.5% |
| Excess (NAV – benchmark) | -6.8pp | -33.2pp | -74.0pp | -85.3pp |
The report also discloses discrete performance for five full years. The fund only came close to matching the benchmark in 2022/23, and lagged in all other years. In the most recent full year (2025/26), NAV rose 10.3%, trailing the benchmark's 23.5% by 13.2 percentage points.
| Year ended June 30 | Share Price | NAV | Benchmark |
|---|---|---|---|
| 2021/22 | -47.5% | -38.0% | -12.4% |
| 2022/23 | 19.3% | 15.8% | 19.6% |
| 2023/24 | 5.0% | 5.1% | 13.5% |
| 2024/25 | 7.6% | 0.4% | 9.9% |
| 2025/26 | 7.0% | 10.3% | 23.5% |
The report does not disclose performance for July 2026 alone, nor does it provide any performance attribution.
The report does not take a view on market direction, merely reiterating its strategy of bottom-up stock selection and concentrated holdings in long-term growth companies. Notably, actual active share is 76%, below the "expected to exceed 80%" stated in the investment proposition.
The current report does not disclose any new positions, additions, reductions, or closures. Based on the static structure at the report date, the portfolio is highly concentrated: the top ten holdings account for 48.5% in total, and the largest single holding, Bending Spoons, accounts for 17.1%.
The report does not include individual stock commentary; the following are merely market-value weights at the report date:
| Rank | Holding | % of Assets |
|---|---|---|
| 1 | Bending Spoons | 17.1 |
| 2 | ASML | 6.3 |
| 3 | Roche | 4.6 |
| 4 | Tekever Holdings SA | 4.5 |
| 5 | KBC Group | 3.0 |
| 6 | TotalEnergies | 2.9 |
| 7 | Allianz AG | 2.8 |
| 8 | Lonza | 2.6 |
| 9 | Investor | 2.4 |
| 10 | Airbus | 2.4 |
Geographic distribution (% of assets): Italy 17.1%, Netherlands 14.4%, Switzerland 11.9%, Germany 10.9%, Belgium 7.5%, Poland 6.4%, Spain 5.9%, Sweden 5.9%, France 4.7%, Portugal 4.5%, Ireland 4.4%, Greece 2.0%, Norway 1.7%, Denmark 1.4%, Austria 0.8%, net current assets 0.4%.
The portfolio spans 28 industries in total; the report discloses the top 20: Software and Computer Services ranks first, followed by Banks, Aerospace and Defense, Investment Banking and Brokerage Services, Technology Hardware and Equipment, Pharmaceuticals and Biotechnology, Construction and Materials, Non-life Insurance, Industrial Transportation, Oil, Gas and Coal; positions 11 to 20 are, in order, Personal Goods, Media, Beverages, Leisure Goods, Telecommunications Service Providers, Electricity, Consumer Services, Personal Care, Drug and Grocery Stores, Industrial Engineering, Medical Equipment and Services (the bar chart does not provide specific percentages).
Leverage and turnover: gross leverage 15%, net leverage 14% (AIC basis; gross leverage is drawn borrowings at face value as a percentage of shareholders' funds; net leverage deducts cash and cash equivalents); annual turnover 48% (rolling 12 months, calculated as the rolling 12-month sum of the lesser of monthly purchases or sales, divided by the average portfolio market value).
As of July 31, 2026, the fund had total assets of £404.71m, total borrowings of £51.30m (face value), NAV per share of 127.83 pence, share price of 117.00 pence, and a market price discount of 8.5%; the report does not disclose any subscriptions, redemptions, or buybacks during the period.