LONDON - Baillie Gifford European Growth Trust PLC (LSE:BGEU) has completed the distribution of its Annual Report and Financial Statements for the year ended September 30, 2024, as confirmed by the company's secretaries on Monday. The documents, which also include the Notice of Annual General Meeting, have been submitted to the National Storage Mechanism and are now accessible on the Baillie Gifford website.
The Directors have asserted that the Financial Statements present a true and fair view of the company's assets, liabilities, and financial position. The Strategic Report within the Annual Report provides a fair review of the business's development, performance, and the principal risks and uncertainties it faces.
The company has identified several key risks, including financial risk related to market volatility, investment strategy risk, political and economic risks, discount risk, regulatory risk, custody and depositary risk, operational risk, leverage risk, climate and governance risk, and cyber security risk. Each risk has been assessed, and measures to manage or mitigate these risks have been detailed in the report.
Notably, the company's shares traded at an average discount of 14.3% throughout the year, and it repurchased 6,365,921 ordinary shares. The Board has also implemented a performance-related tender offer.
Baillie Gifford's robust approach to risk management is reflected in the effective operation of control procedures, with no material regulatory changes impacting the company during the year. The report also highlights the company's long-term borrowings, which expire in 2036 and 2040.
The company remains vigilant in its oversight of environmental, social, and governance (ESG) issues within its investee companies, with the Investment Manager continuing to apply strong ESG stewardship and engagement policies.
Cyber security remains a significant concern, with the risk perceived to be increasing due to geopolitical tensions and the adoption of emerging technologies, including AI. The company's hybrid working model for service providers also contributes to the potential cyber security threat.
The Board of Baillie Gifford European Growth Trust PLC continues to monitor emerging risks and discusses potential mitigations at each Board meeting.
This article is based on the Annual Report and Financial Statements provided by Baillie Gifford European Growth Trust PLC and the statements of the Directors therein.
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