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A record number of shareholders voted through Hargreaves Lansdown in the battle between the American activist Saba Capital and seven British investment funds.
Britain’s biggest direct-to-consumer investment site said it had seen an unprecedented level of voting among investment trust shareholders as they made their views known on Saba’s proposal to abolish trust boards.
Hargreaves Lansdown said 41 per cent of its customers who hold the Herald Investment Trust voted. Saba Lost his voice This week.
Turnout will alleviate concerns that individual shareholders, who tend to be less engaged than professional investors, would not show up to vote.
Saba’s bid to replace the boards of seven trusts with its own proposed nominees represents one of the biggest shake-ups in the 150-year-old investment trust industry, which manages around £260 billion.
Boaz Weinstein, the founder of Saba, said that if the hedge fund is successful, it will be brought forward to manage the trusts to replace existing managers Herald, Janus Henderson, Manulife and Baillie Gifford.
Hargreaves Lansdown said almost one in two of their customers who support the European Smaller Trust, managed by Janus Henderson, have so far voted.
The investment site added that the level of votes for each of the trusts was a record. Other funds include Keystone Positive Change, Baillie Gifford US Growth, Henderson Opportunities, CQS Natural Resources Growth and Income and Edinburgh Worldwide Investment Trust.
“We saw a significantly higher proportion of client voting than usual as a result of our proactive client outreach campaign,” said Emma Wall, head of platform investments at Hargreaves Lansdown.
“Although this is something to celebrate, we invite those who have not yet voted for it, because it is really important that they exercise their right to vote. Shareholders’ rights are one of the key advantages of the investment trust structure.” She added that the deadline for voting on the five trusts is over. January.
Investment funds are closed-end funds and their shares trade on the London Stock Exchange. However, stock prices have typically lagged net asset values over the past year, which has seen Weinstein shine in the spotlight.
The average discount for investments is about 15 percent, according to the Association of Investment Companies. The widest average discount since the financial crisis was recorded at almost 19 percent in October 2023.
Saba needs more than 50 percent of the votes cast in favor in each trust to win.
