Shareholders in two Baillie Gifford managed investment trusts, US Growth and Keystone Positive Change, have rejected proposals by US hedge fund Saba Capital to replace both of their boards.

The board of the US Growth – Tom Burnet, Sue Inglis, Graham Paterson, Rachael Palmer, and Chris van der Kuyl – said of the total votes cast, 65.6% were against the resolutions proposed by Saba. Keystone said 60% opposed the proposal. In both votes there was a high turnout.

The resolutions sought to appoint Boaz Weinstein and Miriam Khasidy as directors.

The votes mean that shareholders in three of the seven trusts targeted by Saba have voted with the existing board. Herald Investment Trust shareholders last month rejected the proposals. Three more votes take place this week and the final Baillie Gifford managed trust meets next week.

Mr Burnet, chair of Baillie Gifford US Growth, whose portfolio includes Nvidia, Stripe and Netflix, said: “Faced with the threat to their investment posed by Saba’s self-serving and destructive proposals, shareholders have mobilised and acted decisively to protect their investment. The result is unambiguous and conclusive.”

He said the board was “delighted” by the number of retail shareholders who have voted.

Following this result, Mr Burnet said the board looked forward to “executing our strategy in a supportive macro environment and continuing to engage with all our shareholders”.

Keystone’s board said it would “immediately refocus their efforts on delivering a full cash exit for shareholders”, which had been proposed prior to the requisition.

Karen Brade, chair of Keystone Positive Change board, said: “I would like to thank all the shareholders who stood up to vote in support of the Board’s recommendation. Of the votes cast, nearly 99% of the non-Saba shareholders rejected its proposals.

“Now our focus returns to delivering the proposed scheme that offers an uncapped cash exit and/or a rollover into a more liquid fund with a similar global impact strategy. We are confident that this remains in the best interests of shareholders.

“The board intends to re-engage with stakeholders without delay in order to implement this Scheme as soon as practicable.”

Laith Khalaf, head of investment analysis at AJ Bell, said “retail shareholders have come out in force to have their say on the proposals put forward by Saba”.

He said the voting figures “show that shareholder democracy is alive and well, and when important matters are on the line, ordinary investors are willing to come out to vote”.