Baillie Gifford US Growth Trust has hit back at US raider Saba Capital after posting a 29% jump in total return for the half year to 30 November.
The company is one of seven UK-listed trusts being targeted by hedge fund Saba, which has called a meeting for 3 February to replace members of the board with its own nominees.
US Growth’s management said 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.”
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.”
US Growth’s net asset value per share ex-borrowings rose to 280.3p 216.65p on May 31.
Saba has been steadily accumulating shares in all seven to between 19% and 29% with a key test to come tomorrow, 22 January, when the first of the meetings, at Herald IT, is scheduled.
Two other Baillie-managed trusts are on Saba’s hit list, with one of these, Keystone Positive Change, like Herald, having been given a boost from a recommendation of proxy voting agency Glass Lewis to reject Saba’s plans.
Glass Lewis said Saba's campaign is more about obtaining influence than giving shareholders an exit.