By Matteo Anelli, Senior reporter, Trustnet, 4 February 2025:
Saba Capital has hit another brick wall at the general meetings of the Henderson Opportunities and CQS Natural Resources Growth and Income trusts this afternoon.
In both cases, shareholders voted against the requisition proposals advanced by Saba, following in the footprints of the Herald Investment Trust and the two Baillie Gifford strategies, Baillie Gifford US Growth and Keystone Positive Change, which have already voted in recent weeks.
More than 59% of CQS shareholders who turned up today (the turnout was over 68%) cast their votes against Saba’s resolutions in what QuotedData analysts called “a handsome defeat” for Saba.
“Now that Saba has been flatly rejected, the trust needs to be allowed to get back to the job of focusing on its portfolio and delivering value for shareholders,” they said.
“With the underlying asset class cyclically depressed but with the prospect of strong term growth in commodity prices, we think some shareholders who understand the trust will be taking the opportunity to add to their positions”.
The Henderson portfolio had comparable results, with a 73.4% turnout and 65.4% of votes against Saba. It is not completely out of the woods, however, as it now faces a reconstruction and voluntary winding up vote, with another meeting planned for 21 February. From then, the focus will be on implementing this scheme.
Although Saba still has sufficient votes to disrupt the company’s plans, it would be “nonsensical” to do so, according to James Carthew, head of investment company research at QuotedData.
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