LONDON (Reuters) – Baillie Gifford US Growth Trust, which is fighting plans by U.S. activist Saba Capital to change its board, unveiled new data on Tuesday showing it outperformed the Standard & Poor's 500 index in sterling terms in the six months to November 30.
In response to Saba's claims of persistent underperformance, Baillie Gifford said the company's share price and net asset value returned 40.9% and 29.4% respectively during the period, after deducting loans at fair value.
This compared to a total return of 15.3% for the S&P 500 in sterling terms, it said, dismissing Saba's proposals to appoint two of its nominees to the board as a “self-serving and destructive” attempt to assume control of the company.
Saba, founded and run by veteran Wall Street activist investor Boaz Weinstein, said last month that it wanted to reform the boards of seven trust funds due to performance that it said ranged from “disappointing” to “disastrous.”
Weinstein said critics of his plans were misleading investors who lost “enormous value.”
He targeted Baillie Gifford as well as Henderson Opportunities Trust, European Smaller Companies Trust, CQS Natural Resources Growth & Income, Edinburgh Worldwide Investment Trust, Herald Investment Trust and Keystone Positive Change (KPC).
From its launch in 2013 to 30 November, Baillie Gifford's share price and net asset value have returned 169.7% and 186.1% respectively, compared to a total return of 190.5% in sterling terms, after deducting fair value borrowings.
Kuwait Petroleum Corporation also noted on Tuesday that Glass Louis (JO:), the independent proxy advisor, recommends shareholders vote against SABA's proposals at the meeting on February 3.
KPC said Glass Lewis cited a “lack of detail” and said Saba’s campaign was “more about gaining leverage than a firm and timely exit offer to shareholders.”
