City investment trust bosses have hit back against a US hedge fund’s attempt to shake up their boards and replace their fund managers.
Saba Capital, run by activist investor Boaz Weinstein, has called investor meetings at seven investment trusts to replace their directors with himself and his allies.
However the bosses of Keystone Positive Change, one of the targeted trusts, are fighting back, saying they are ‘appalled’ by the move.
Encouraging investors to vote against the plans, Keystone chairman Karen Brade said Saba was ‘acting opportunistically’ and trying to ‘seize control of the board without a controlling shareholding, to pursue its own agenda’.
Power move: Saba Capital, run by Boaz Weinstein (pictured with wife Tali), has called investor meetings at seven investment trusts to replace their directors with himself and his allies
She added: ‘We believe Saba’s plan lacks transparency, would flagrantly disregard good governance, and may introduce substantially inflated fees.’
Baillie Gifford US Growth Trust, another of Weinstein’s targets, also attacked the US activist, accusing his firm of trying to ‘subvert’ the firm’s performance.
Chairman Tom Burnet said: ‘Their [Saba’s] proposals lack detail and if implemented, could destroy the board’s independence, radically alter the investment strategy of the company and prove highly disruptive to shareholder value.’
Meanwhile, Edinburgh Worldwide Investment Trust chairman Jonathan Simpson-Dent said Saba was engaged in a ‘backdoor attempt to seize control of the trust’.
Other targeted trusts include CQS Natural Resources Growth and Income, The European Smaller Companies Trust, Henderson Opportunities and Herald Investment Trust.
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