“It’s vital that shareholders vote on the future of their investment trust”
AIC writes to retail platforms about Saba Capital general meetings.
The Association of Investment Companies (AIC) has written to the major retail platforms urging them to make their customers aware of the general meetings that US activist Saba Capital Management has requisitioned at seven investment trusts. The AIC has also asked the platforms to actively encourage their customers to vote on Saba’s proposals.
“It’s vital that shareholders vote on the future of their investment trust. The final decision rests with them.”
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
To help retail investors who hold shares on platforms, the AIC provides information on its website on how to vote investment trust shares and attend general meetings. Voting can often be done online in advance of the general meeting.
Details of the seven investment trusts targeted by Saba are below.
| Investment trust | Sector | General meeting date (link to announcement) |
|---|---|---|
| Baillie Gifford US Growth | North America | 3 February 2025 (link) |
| CQS Natural Resources Growth & Income | Commodities & Natural Resources | 4 February 2025 (link) |
| Edinburgh Worldwide | Global Smaller Companies | To be announced |
| The European Smaller Companies Trust | European Smaller Companies | 5 February 2025 (link) |
| Henderson Opportunities Trust | UK All Companies | 4 February 2025 (link) |
| Herald Investment Trust | Global Smaller Companies | 22 January 2025 (link) |
| Keystone Positive Change | Global | 3 February 2025 (link) |
Source: Company announcements. Note that deadlines for proxy voting will be a few days in advance of the general meeting date.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Saba is proposing major changes to these seven investment trusts so it’s essential that platforms notify their customers about these meetings swiftly and encourage them to vote. This is underlined by the Consumer Duty, which requires platforms to help their customers make informed decisions about their investments by ensuring they have the information they need at the right time, in a way they can understand.
“The proposals from Saba would fundamentally change these investment trusts. Initially Saba is proposing to replace the current independent boards with just two new directors. Saba has stated an intention to follow this with a replacement of the investment manager and a completely new investment mandate. This would likely change the asset exposure, investment risk and return profile of the companies, moving them away from the original choice made by investors.
“Investors need to understand the details of what is being proposed by Saba, including changes to the trusts’ boards, strategy, manager or fees. They need to consider whether the investment trust would still meet their needs, as well as any potential tax implications.
“We provide information on our website for investors who hold investment trusts on platforms on how to vote their shares and attend meetings. It’s vital that shareholders vote on the future of their investment trust. The final decision rests with them. They can also take the opportunity to attend the general meetings and ask questions.”
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