B Gifford US Growth Trust shareholders reject Saba

Baillie Gifford HQ, Edinburgh

Baillie Gifford US Growth Trust plc announced that its shareholders have decisively voted against all the requisitioned resolutions from New York activist hedge fund Saba Capital Management.

Baillie Gifford US Growth Trust is one of the seven investment trust companies attacked by Saba Capital “to convene general meetings of shareholders to … vote on resolutions to remove the Trusts’ existing directors and appoint highly qualified directors to replace them.”

Three of the seven funds are managed by Edinburgh-based Baillie Gifford.

“Excluding the shares voted by Saba, approximately 98.5% of the votes cast were against the Requisitioned Resolutions,” said the fund.

“Of the total votes cast, 65.6% were voted against all the Requisitioned Resolutions and represented a majority of the company’s total voting rights.”

Baillie Gifford US Growth Trust chair Tom Burnet said: “Faced with the threat to their investment posed by Saba’s self-serving and destructive proposals, shareholders have mobilised and acted decisively to protect their investment. The result is unambiguous and conclusive.

“We would like to thank shareholders for their support at this important moment for the company. We are delighted, in particular, by the number of retail shareholders who have voted and played a key role in this positive outcome and encourage them to continue to make their voices heard.

“Thanks to our patient strategy of investing in exceptional US growth companies, public and private, the company has achieved its objective of delivering above average long-term returns for our shareholders.

“Since IPO in March 2018, the company has been one of the best-performing funds globally when measured against all US equity open-ended funds and ETFs.

“Following the decisive result at the Requisitioned General Meeting, we look forward to executing our strategy in a supportive macro environment and continuing to engage with all our shareholders.”