Baillie Gifford US shareholders must "act quickly" if against Saba

Baillie Gifford US Growth Trust PLC shareholders must "make their voices heard" at its annual meeting if they wish to stop Saba Capital Management LP from taking control, the Association of Investment Companies warned on Tuesday.

The activist investor has requisitioned three resolutions for the annual general meeting on October 23, all of which would appoint Saba representatives - Jason Chen, Thomas McGlade and Saba employee James Waterlow - to Baillie Gifford US Growth's board.

The US growth stock-focused investment trust on Thursday urged its shareholders to vote these resolutions down. Chair Tom Burnet warned that if elected, the three would-be directors would probably "pursue proposals that are designed to further Saba's own interests at the expense of other shareholders".

He noted that Saba previously rejected Baillie Gifford US Growth's cash exit offer, and that shareholders have voted against previous Saba proposals.

On Tuesday, the Association of Investment Companies issued a statement telling shareholders to "act quickly if they want to vote". "The AGM is on 23 October at 1pm but the voting deadlines on platforms will be much sooner," the AIC noted.

AIC Chief Executive Richard Stone reiterated that shareholders "need to act quickly to express their views loud and clear on the future of their investment trust," noting that "Baillie Gifford US Growth has performed well recently, returning 134% over the last three years".

He added that the trust "gives investors an opportunity to hold both listed and private growth companies and invests in exciting big names like Nvidia, Anthropic, OpenAI and Databricks."

Like Burnet, he noted Saba's rejection of Baillie Gifford US Growth's "generous exit offer," concluding that "it's likely that Saba wants to take control of this investment trust and manage it."

However, he also noted that Saba and the proposed directors "have not explained their plans" for the trust's future.

"It's vital that all shareholders make their voices heard at this AGM if they want the investment trust to continue with its current mandate and manager," Stone said.

Baillie Gifford US Growth shares were 0.4% higher at 373.04 pence in London on Tuesday morning. The stock has climbed by 37% over the past year.

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