Lessons from Boaz assault: Other trusts must not be complacent about fighting off US raider, warns ALEX BRUMMER
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Herald Investment Trust boss Andrew Joy won’t be breaking out the champagne yet despite an overwhelming victory over the US marauder Saba. The amazing 99 per cent-plus vote of minority investors against putting Saba chief Boaz Weinstein in charge augurs well for the six other trusts targeted for a makeover.
The big risk will be that the margin of Herald’s triumph will lead to complacency among both big battalion and retail investors in the other trusts. It is also possible those funds which have made pledges to return capital to shareholders will fare better than those less able to make distributions.
None of this means Herald is out of the woods. Weinstein, as a dominant investor with a 27.8 per cent stake, may seek preferred status, which could give him undue influence on board decisions and strategies. The votes might have gone the right way, but this whole affair doesn’t reflect well on industry body the Association of Investment Companies (AIC), regulator the Financial Conduct Authority (FCA) or some of the targeted trust boards which have been found wanting.
Rejected: The 99%-plus vote of Herald Investment Trust minority investors against putting Saba chief Boaz Weinstein in charge augurs well for the six other trusts targeted. The AIC was late to the party and questions are being raised about the leadership of chief executive Richard Stone.
