Baillie Gifford China Growth Trust (BGCG) H2 2026 earnings summary

Executive summary

• Achieved a NAV total return of 34.0% and share price total return of 38.8% for the year to 31 January 2026, both significantly outperforming the 22.2% benchmark return.

• Discount to NAV narrowed to 7.4% from 10.4% year-over-year, supported by share buybacks and a performance-related Conditional Tender Offer (CTO).

• Revenue earnings per share rose 17.8% to 2.98p; proposed final dividend increased 14% to 2.50p.

• Unlisted investments, notably ByteDance and RedNote, comprised 12.2% of total assets, with ByteDance delivering a 158% value increase since acquisition.

Financial highlights

• Total adjusted assets rose 29% to £205.3m; shareholders' funds increased to £197.6m.

• NAV per share grew 33% to 344.44p; share price up 37.5% to 319.00p.

• Ongoing charges ratio improved to 1.06% from 1.12% year-over-year.

• Net gearing was 3.1% at year-end.

Outlook and guidance

• Board remains positive on prospects, citing China’s structural transformation and innovation-led growth.

• Portfolio companies forecasted to deliver nearly double the benchmark’s earnings growth over the next three years.

• Risks include US-China relations, portfolio concentration in AI, and deflation, but discount control mechanisms provide some protection.