How shareholders can vote to defeat Wall Street raider as US hedge fund targets seven UK investment trusts
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The £1.2billion Herald Investment Trust will tomorrow be the first of seven trusts targeted by US raider Saba Capital to face a vote on whether to oust its entire board and replace them with the hedge fund’s nominees. The other trusts in the crosshairs are Baillie Gifford US Growth, Edinburgh Worldwide, European Smaller Companies, Keystone Positive Change, CQS Natural Resources and Henderson Opportunities.
Fears are mounting in the industry that a low turnout among private investors who own shares in the trusts will hand Saba victory. While Saba has stakes in each firm ranging from 19 per cent to 29 per cent, the trusts also have large numbers of retail investors whose votes will prove crucial in deciding the outcome.
Swooping: Saba, founded by Boaz Weinstein (pictured with ex-wife Tali Farhadian), is pushing to oust the boards at seven UK investment trusts. The US firm needs to win at least 50 per cent support from voting shareholders to succeed. As a result, it will win if other investors do not actively vote against its proposals.
This is how investors will be able to vote on Saba’s plans at the upcoming meetings. Investors do not have to attend the meetings in person and can instead use proxy votes, where someone else votes on their behalf. But they must ensure they fill out the forms required for proxy voting before a deadline ahead of the vote itself.
