Baillie Gifford has said it will focus the Trust’s holdings predominantly on Chinese stocks. 

The fund will be renamed as the Baillie Gifford China Growth Trust plc. 

The board of the trust decided to drop fund manager Witan after it consistently underperformed its benchmark.

James Budden, director of retail marketing at Baillie Gifford, said: “A closed-ended Chinese equity strategy is a fitting addition to our investment trust range and represents an exciting opportunity for Baillie Gifford. The Trust will be managed by Sophie Earnshaw and Roderick Snell, both members of our emerging markets team who bring significant expertise and experience in China. Sophie is currently co-manager of Baillie Gifford China Fund while Roderick manages Baillie Gifford Pacific Fund.

“Baillie Gifford has a strong track record investing in China having invested in the region over several decades. At the end of June 2020, the firm had over £44.6 billion invested in both Chinese listed and unlisted companies via its global and regional funds and trusts, and now has a research centre operational in Shanghai. Baillie Gifford China Fund, our open-ended Chinese equity strategy, has achieved top quartile performance over 1, 3, 5, 10 years and since inception thirteen years ago to end June 2020.”

He added: “We will realign the portfolio to invest in our best Chinese growth ideas, seeking high quality companies with strong competitive positions which can deliver strong earnings growth over a number of years. The Trust will differ from the open-ended fund in that it will also incorporate unlisted and smaller company investments.

“We believe these changes should enhance the appeal of the Trust and attract new investors, particularly those looking to allocate directly to Chinese equities.”