Trustnet Magazine 62 May 2020 | Page 10

Advertorial feature 18 / 19
[ BAILLIE GIFFORD ]
The current situation has also highlighted long-term trends
in healthcare. Here, Slater has focused stock selection on
companies that offer solutions in complex areas such as
genomic and molecular understanding of disease
part of the solution to what we’ve
experiencing.”
The current situation has also
highlighted long-term trends in
healthcare. Here, Slater has focused
stock selection on companies that
offer solutions in complex areas
such as genomic and molecular
understanding of disease. Holdings
include Vir Biotechnology, which
was a private company when Scottish
Mortgage first invested, but has
subsequently listed on public stock
markets. It is seeking to develop
vaccines and treatments for infectious
disease, and could potentially be part
of the answer to the pandemic.
Vir’s transition from private to
publicly-listed company could be
repeated by other unlisted holdings,
which can represent up to 25 per cent
of the Scottish Mortgage portfolio.
These companies are normally
valued on a three-month cycle but
market uncertainty means that
timescale has been tightened
to provide reassurance against
concerns that the trust’s recent
outperformance relative to plunging
indices has been distorted by the
unlisted holdings.
“In between those three-month
points, another trigger for looking
at the valuation can be significant
developments. And the very dramatic
swings in the markets that we’ve
seen absolutely fall into that category
because you’ve seen such a rapid
change in the valuation of listed
peers. We use that as a prompt to
revisit the valuations of our private
companies,” Slater explains. “They
will be adjusted to reflect current
market conditions. And so we capture
on a real time basis the significant
moves in markets and the valuation of
our invested companies.”
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Doing so is reassuring for Slater as
it means there are no nasty surprises
hidden from view. It could also give
shareholders more grounds for
confidence in uncertain times.
You can listen to Baillie Gifford’s
podcast Short Briefings on Long
Term Thinking at bailliegifford.com/
podcasts.
Source: FTSE International Limited (“FTSE”) © FTSE 2020.
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This article does not constitute, and is not subject to the protections afforded
to, independent research. Baillie Gifford and its staff may have dealt in the
investments concerned. The views expressed are not statements of fact and
should not be considered as advice or a recommendation to buy, sell or hold
a particular investment.
Baillie Gifford & Co and Baillie Gifford & Co Limited is authorised and
regulated by the Financial Conduct Authority (FCA). The investments trusts
managed by Baillie Gifford & Co Limited are listed UK companies and are not
authorised and regulated by the Financial Conduct Authority.
The Trust has a significant exposure to unlisted investments. The Trust’s
risk could be increased as these assets may be more difficult to buy or sell, so
changes in their prices may be greater.
A key information document is available at www.bailliegifford.com.
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