Baillie Gifford European Growth Trust PLC on Tuesday said its net asset value rose during its most recent financial year, despite ‘volatility’ in its long-term growth strategies.

The London-based investor in European Securities said its net asset per share at fair value on September 30 was 108.0 pence, up 11% year-on-year from 96.7p. Its net asset value total return for the year was 12.1%, compared to 15.3% for the FTSE Europe ex UK Index.

The firm’s pretax return for the year that ended September 30 more than doubled to £46.7 million from £21.0 million last year, due to its gains on investments multiplying to £44.0 million from £19.8 million.

Baillie Gifford European Growth Trust proposed a final dividend of 0.6 pence per share, up 40% from 0.4p last year.

Chair Michael MacPhee said: ‘This is undeniably a time of accelerating change in geopolitics and much else beside. Companies’ ability to adapt to change is the single biggest reason why equities beat inflation over sustained periods. Winning is asymmetric in equity investment. The upshot, for the patient, is high and rising returns on capital and, typically, margins.

‘We recognise that our shareholders are absorbing volatility in both absolute and relative returns in order to harness this effect. Our managers have the skill to discern these businesses and the courage to withstand the volatility that a long-term growth strategy brings with it. The board feels that the measure we are setting in place will give our managers the best chance to deliver on your behalf while also offering shareholders appropriate protection.’

Shares in Baillie Gifford European Growth Trust closed 1.1% lower at 84.31 pence each in London on Wednesday.

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