<\/p>\n
Tom Burnet: clear and decisive verdict<\/p>\n
Baillie Gifford US Growth Trust shareholders have narrowly rejected a New York hedge fund\u2019s attempt to seize control for a third time.<\/p>\n
They voted at its AGM in London by a 52.8% majority against activist Saba Capital Management\u2019s attempts to have three directors \u2013 \u00a0Jason Chen, James Waterlow and Thomas McGlade \u2013 elected to the board.<\/p>\n
Special resolutions regarding the disapplication of pre-emption rights and market purchases of shares, also failed to pass, with 36.6% and 36.4% of votes against them respectively. <\/p>\n
The board of the Edinburgh-based trust noted that votes against these resolutions were primarily from Boaz Weinstein\u2019s Saba and Sessa Capital, and excluding their votes, 99.2% of other shareholders\u2019 votes aligned with the board\u2019s recommendations. The company said it will engage with Saba and Sessa Capital to seek a long-term solution.<\/p>\n
The votes were always going to be close given that Saba holds a 29% stake and had the support of another hedge fund, Sessa Capital, on 7.7%.<\/p>\n
Trust chairman Tom Burnet, one of four incumbents re-elected, said: \u201cOn behalf of the board, I would like to pass our gratitude to our independent shareholders for their continued support.<\/p>\n
\u201cThose shareholders have again delivered a clear and decisive verdict. They have overwhelmingly rejected Saba\u2019s nominees. For the third time, they have also expressed their clear support for the current board. <\/p>\n
\u201cRepeatedly revisiting matters on which almost all of our independent shareholders have plainly already expressed their view places an unnecessary burden on the company, diverting management time and resources from the delivery of the company\u2019s strategy and the creation of long-term shareholder value and incurring significant costs.\u201d<\/p>\n
He added: \u201cBaillie Gifford US Growth is a unique investment trust, offering investors access in scale to the most exciting public and private investments in the US. <\/p>\n
\u201cSince USA\u2019s launch in 2018, it has generated returns in the top decile of all UK listed investment companies and the top decile of all US-focused open-ended funds globally. We are pleased the AGM result represents a clear endorsement from the vast majority of independent shareholders for the current differentiated and high performing strategy to continue.<\/p>\n
\u201cWe strongly welcome the reforms under consideration by the FCA [Financial Conduct Authority], and the efforts of the AIC [Association of Investment Companies] and others, to strengthen protections for all shareholders. <\/p>\n
\u201cIt is critical that these new rules take effect as soon as is practicable so that trusts are better protected from opportunism that is not in the interests of shareholders as a whole.\u201d<\/p>\n
\t #Baillie #Gifford #Growth #Trust #rejects #Saba #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
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