21st Jan 2025 10:59
(Alliance News) - Baillie Gifford US Growth Trust PLC on Tuesday announced its half-year results "for a highly successful period for the company's growth strategy".
The Edinburgh-based investor in US companies said net asset value total return for the six months that ended November 30 was 29%, significantly outperforming the S&P 500 index on sterling terms which returned 15%.
"The improved business outlook for the US, in particular the growth companies in which the company invests was reflected in the excellent net asset value," Baillie Gifford US Growth said.
Net asset value per share after deducting borrowings at book value climbed to 280.31 pence each as at November 30 from 216.65p each on May 31.
The company declared no dividend, as its objective is to produce capital growth.
Bolstered by the healthy results, the trust hit out at Saba Capital Management LP, which has requisitioned a general meeting on February 3. "Despite this extremely strong performance, Saba has sought to introduce self-serving and destructive proposals to remove the independent board and try to assume control of the company through placing two of its own nominees on the board and will likely thereafter attempt to assume management of the company."
It added: "The company and the strong growth potential shown in today's results is directly under threat in a vote where every vote will count. We therefore reiterate urging all shareholders to vote against Saba's proposals. If shareholders have not already done so, the next few days will likely be their last chance to vote ahead of the deadline - it's critical they do not miss the opportunity to save their investment from an uncertain and potentially destructive trajectory."
Last month, Saba called on investors at seven trusts to oust current management after what it called "underwhelming" shareholder returns. Saba had said it has been steadily accumulating shares in all seven, building stakes of between 19% and 29%.
Separately on Tuesday, Keystone Positive Change Investment Trust PLC noted the publication of the voting recommendation from Glass Lewis, its independent proxy advisor, regarding its general meeting to be held on February 3, the same day as Baillie Gifford US Growth's general meeting.
Glass Lewis recommends that Keystone shareholder vote against all of Saba's proposed requisitioned resolutions at the meeting, citing "lack of detail".
Keystone cited Glass Lewis as saying Saba's campaign is "more about obtaining influence than it is about offering shareholders a timely and certain exit".
Glass Lewis added that Saba's intentions for the board were not consistent with "the highest standards of governance".
Baillie Gifford US Growth Trust shares rose 1.5% to 262.42 pence each on Tuesday morning in London, while Keystone Positive Change shares were down 0.1% to 243.74p.
By Tom Budszus, Alliance News slot editor
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