Baillie Gifford U.S. Growth Trust (USAB.L), battling plans by U.S. activist Saba Capital to shake up its board, unveiled fresh data on Tuesday to show it had outperformed the S&P 500 Index in sterling terms in the six months to Nov. 30.
In response to Saba's allegations of consistent underperformance, Baillie Gifford said the company's share price and net asset value returned 40.9% and 29.4% respectively over the period, after deducting borrowings at fair value.
This compared with a total return of 15.3% for the S&P 500 Index in sterling terms, it said, dismissing Saba's proposals to place two of its own nominees on the board as a "self-serving and destructive" attempt to assume control of the company.
Saba, founded and run by Wall Street veteran activist investor Boaz Weinstein, said last month it wanted to overhaul the boards of seven trusts over performances it said ranged from "underwhelming" to "disastrous".
Weinstein has said critics of his plans were misleading investors who have lost "enormous value".
He has taken aim at Baillie Gifford as well as Henderson Opportunities Trust, the European Smaller Companies Trust (ESCT.L), CQS Natural Resources Growth & Income (CYNL.L), Edinburgh Worldwide Investment Trust (EWI.L), Herald Investment Trust (HRI.L) and Keystone Positive Change (KPC) (KPCK.L).
From its 2013 launch to Nov. 30, Baillie Gifford's share price and NAV returned 169.7% and 186.1% respectively, compared with a total return of 190.5% for the S&P 500 index in sterling terms, after deducting borrowings at fair value.
KPC also noted on Tuesday that Glass Lewis, the independent proxy advisor, was recommending that shareholders vote against Saba's proposals at a meeting on Feb. 3.
Glass Lewis had referred to a "lack of detail" and said Saba's campaign was "more about obtaining influence than it is about offering shareholders a timely and certain exit", KPC said.
