By MIKE SHEEN, This is Money, 3 February 2025:
Saba has been handed a second and third consecutive defeat at the hands of UK investment trust investors, after Baillie Gifford US Growth and Keystone Positive Change shareholders rejected the hedge fund’s proposals.
The pair are two of seven trusts targeted by Saba’s plans to overhaul control of respective boards and management, which the hedge fund has accused of failing to tackle recent poor performance and persistent discounts to net asset value.
Saba ultimately wants to merge some or all of the trusts into a new vehicle targeting other London-listed funds with large discounts to NAV.
But Baillie Gifford US Growth and Keystone Positive change investors followed Herald Investment Trust shareholders by rejecting Saba’s proposals on Monday.
Head of investment companies at QuotedData, James Carthew, said the outcome of the votes ‘gives us hope that Saba will lose all’ of the votes put to investors.
He added: ‘In the wake of this, we expect that the sentiment will turn from relief to anger at the disruption that this has caused and the considerable sums that have had to be spent to ward off the attack.
‘One positive result may be that investors are better able and more likely to vote at company meetings in future.
‘Real change seems to be happening at some platforms, and a change of company law to enforce shareholders’ rights may not be far behind.’
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