City minister to hear Baillie Gifford trust chair complaints over Saba campaign

The City minister, Lucy Rigby, has pledged to meet with Tom Burnet, chair of Baillie Gifford's US Growth, to discuss potential safeguards for investment trusts following an activist campaign by Saba Capital. Rigby lauded the "important role investment companies play in bringing transformational new innovations to customers and markets, and driving economic growth".

The Treasury minister's officials have indicated an intention to talk with Burnet about his concerns over activist investor tactics. Baillie Gifford trusts have faced such tactics from Saba, which lost a vote to take control of the FTSE 250-listed USA Growth, but succeeded in other trusts. Retail investors overwhelmingly rejected the activist's resolutions, but Saba's influence over shareholder voting gave it a strong hand.

Burnet had previously warned of the threat to the integrity of the UK investment trust sector and urged action from the City minister. The meeting's timing remains undecided, and the Treasury has not offered comment.