Baillie Gifford UK Growth (BGUK) has proposed to wind up the £254m investment trust if it fails to beat the FTSE All Share in the next five years.
After three years of underperformance by the growth fund that has left shareholders nursing a 24% loss against an All Share gain of 23%, and faced with a continuation vote in September, the board has offered investors a one-off exit opportunity in 2029.
Should fund managers Milena Mileva and Iain McCombie fail to achieve a total return on net assets by 30 April 2029 ahead of the benchmark, it will give shareholders a chance to sell their investments in full at close to their net asset value (NAV).