Janus Henderson has joined rivals in urging investors of its London-listed investment trusts to reject a takeover attempt from US hedge fund Saba Capital. The group, which has $382.3billon in assets under management, told shareholders of its European Smaller Companies and Henderson Opportunities trusts to vote against resolution brought by Saba in polls scheduled for 5 and 4 February respectively.
It follows an intervention from £225billion asset manager Baillie Gifford, which urged US Growth Trust, Keystone Positive Change and Edinburgh Worldwide investors to reject Saba's resolutions. Saba is hoping to seize control of seven London-listed trusts it has built substantial stakes in, with efforts to overhaul each fund's board set to be followed with resolutions to appoint itself as investment manager.
The US firm has highlighted high discounts to net asset value and performance issues affecting each trust, and accusing respective boards and managements of failing to take sufficient action in response. The boards and management of the trusts affected have accused Saba of self-interest and 'cherry-picking' data to support its claims, as well as pointing out that performance has improved and discounts have narrowed significantly.
Saba is preparing for a shareholder showdown with boards of seven London-listed investment trusts next month. Boards have also highlighted the relatively high fees charged by Saba's publicly available funds. James Williams, chairman of Janus Henderson's European Smaller Companies Trust, on Wednesday highlighted his fund's 'long-term outperformance' and warned shareholders Saba is attempting to remove a 'highly qualified, independent board that acts in all shareholders' interests'.
