LONDON (Reuters) – Shareholders in two more British investment trusts dealt a further blow to Saba Capital’s campaign to shake up the UK’s 269 billion-pound ($334 billion) trust sector on Tuesday, after rejecting the U.S. activist’s proposals.
Investors in both the Henderson Opportunities Trust and CQS Natural Resources Growth & Income rejected Saba’s resolutions to remove several of their board members at their respective general meetings.
Hedge fund Saba – run by prominent investor Boaz Weinstein – is attempting to overhaul seven UK trusts over performances it has said ranged from “underwhelming” to “disastrous”.
Weinstein previously told Reuters he was prepared for the long haul and has vowed to merge unpopular trusts, buy back shares, and invest in more private assets.
The proposals were rejected on Tuesday by 65% of votes cast at the Henderson trust, and by 59% of votes cast at CQS. Both trusts said that around 99% of non-Saba shareholders rejected the resolutions.
They join investors in fellow trusts Baillie Gifford US Growth, Keystone Positive Change and Henderson Investment Trust in blocking Saba’s proposals.
Saba was not immediately available for comment.
The trusts have publicly hit back at Saba in recent weeks, dubbing its campaign opportunistic and self-serving.
($1 = 0.8044 pounds)
(Reporting by Iain Withers, editing by Sinead Cruise and Sharon Singleton)
