The Trust aims to produce long term capital growth by investing in an actively managed portfolio of Chinese companies. Up to a maximum of 20% of assets may be invested in companies not listed on a public market (measured at time of purchase). We invest on a long-term (5 year) perspective, and have a strong preference for growth. We are looking for significant upside in each stock that we invest in. The process is driven by rigorous, fundamental, bottom-up analysis undertaken by our dedicated emerging markets team, with input from our China office. The fund managers draw on this analysis, as well as insights gleaned from discussion with all of Baillie Gifford’s global investors, to produce a portfolio that typically holds 40–80 stocks.
The annual management fee of i 0.75 % of NAV on the first GBP 50m plus ii 0.65 % of NAV between GBP50m and GBP250m plus iii 0.55% of NAV in excess of GBP250m. This is calculated and payable on a quarterly basis. The Investment Management Agreement can be terminated on three months notice.
The aim is to achieve its total return through a focus on long term capital growth, rather than income. However, in order to qualify as an investment trust, the Company is not permitted to retain more than 15% of eligible investment income arising during any accounting period. Accordingly, the Board's policy is that any dividend paid will be by way of a final dividend and be not less than the minimum required for the Company to maintain its investment trust status. This will result in future dividends being significantly less than we are paying in respect of the financial year ended 31 January 2022.