Under-siege trusts urge investors: Go out and vote to see off US corporate raider Saba
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The heads of seven investment trusts under attack by a US corporate raider have urged Mail readers who hold shares to exercise their right to vote and oppose plans to overhaul their businesses. Saba Capital, run by Wall Street financier Boaz Weinstein, is proposing to replace directors at the trusts with its own nominees, saying leaders have ‘failed shareholders’ and made poor decisions.
It has stakes in each firm ranging from 19 per cent to 29 per cent and needs to win 50pc support from voting shareholders to succeed. As a result, it will win if other investors do not actively vote against the proposals. The trust chairmen have accused Saba of trying to ‘bulldoze’ its way into gaining control of their businesses by relying on many ordinary shareholders not voting.
The main industry lobby group for UK investment trusts has warned the City watchdog that current rules ‘do not protect the interests of retail shareholders’ on concerns smaller investors have not been properly informed about Saba’s plans. Power grab: Saba Capital, run by Wall Street financier Boaz Weinstein, is proposing to replace directors at the trusts with its own nominees.
Andrew Joy, chairman of the Herald Investment Trust, which is the first to face a vote on Wednesday, told the Mail ‘every shareholder’s voice matters’. He urged them to ‘protect your investment’ and ‘vote against Saba’s proposals’. Tom Burnet, chairman of the Baillie Gifford US Growth Trust, said many small shareholders believe ‘their votes don’t count’ despite holding 30 per cent of the trust’s stock, against the 25 per cent held by Saba.
