Saba action – your trusts need you

Saba action – your trusts need you

Raiders of the investment trusts: Your vote, your power.

Milosz Papst

Milosz Papst, Edison’s director of content, investment trusts, has written an opinion piece on the Saba proposal for the FT Adviser – see here

Read Edison’s report Saba Capital campaign – Your vote matters

Listen to Uncovering Trusts – Saba Capital Campaign

Watch the webinar – Saba Capital’s impact on the UK investment trusts industry

IMPORTANT

Saba Capital Management has requisitioned general meetings for seven investment trusts proposing to replace their current boards of directors. The London market needs permanent capital vehicles and the impact of what is being proposed has much broader implications for the London market. We encourage all investors to vote at the upcoming general meetings and are looking to provide them with as much information as we can to make an informed choice.

Shareholders of seven UK-listed investment trusts face a crucial vote during the upcoming general meetings. The trusts are Baillie Gifford US Growth Trust (USA), CQS Natural Resources Growth & Income (CYN), Edinburgh Worldwide (EWI), The European Smaller Companies Trust (ESCT), Keystone Positive Change Investment Trust (KPC), Henderson Opportunities Trust (HOT) and Herald Investment Trust (HRI). Their shareholders need to either approve or reject the agenda pursued by US hedge fund Saba Capital Management, which has built sizeable stakes of c 20–30% in these trusts in recent months, mostly by using a leveraged strategy via total return swaps. We recommend that investors carefully consider Saba’s radical proposals to oust the existing boards, replace them with new directors proposed by Saba and take over the management of the assets. Saba will likely favour a plain opportunistic arbitrage strategy to exploit the discounts to NAV among UK-listed investment trusts (by replicating the strategy of Saba Closed-End Funds ETF, ticker: CEFS), coupled with growing its own assets under management and fee income, over providing shareholders with a truly differentiated value proposition tailored to each of these trusts.

Find out more below

Results of the AGMs

The seven UK-listed investment trusts

Watch the Edinburgh Worldwide Investment Trust – executive interview

Watch the Edinburgh Worldwide Investment Trust – Chair’s message

ShareSoc webinar – Discussion of Saba Capital Attack on Seven Investment Trusts and Implications for Shareholders

Listen to CQS Natural Resources Growth and Income in 60 seconds

Click here to take our short survey

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