6th Jan 2025 09:19
(Alliance News) - Keystone Positive Change Investment Trust PLC on Monday urged shareholders to vote against motions proposed by Saba Capital Management LP, which criticised "underwhelming" performance at seven London-listed trusts.
The Edinburgh, Scotland-based investor in socially and environmentally-conscious companies said Saba's resolutions "would be highly detrimental to the interests of all other shareholders".
It said it has already proposed "a credible plan" of reconstruction and winding-up the company which would allow shareholders to realise their investment or rollover into the Baillie Gifford Positive Change Fund.
Keystone said this aligns with Saba's own prior request for a cash exit by the first quarter of 2025.
"Saba is now intent on disrupting the scheme and taking control of the company for its own commercial self-interest", Keystone said. It said blocking the board's proposal will cause additional costs, delay and uncertainty for shareholders.
Last month, Saba called on investors of seven investment trusts to oust current management after "underwhelming" shareholder returns.
"We believe that the current boards have failed to hold the investment managers accountable, which is why we want to offer you the opportunity to elect new directors with a concrete plan to deliver shareholder value," Saba said in a letter to shareholders.
The other six trusts called out were Baillie Gifford US Growth Trust PLC, CQS Natural Resources Growth & Income PLC, Edinburgh Worldwide Investment Trust PLC, European Smaller Cos Trust PLC, Henderson Opportunities Trust PLC, and Herald Investment Trust PLC.
Keystone said the general meeting requisitioned by Saba will be held on February 3.
Keystone Chair Karen Brade said: "We are appalled by Saba's actions and conduct... Be under no illusion - we believe this US hedge fund manager is acting opportunistically, seeking to seize control of the board without a controlling shareholding, to pursue its own agenda. We believe Saba's plan lacks transparency, would flagrantly disregard good governance, and may introduce substantially inflated fees. The proposed resolutions are not in the best interest of all shareholders and create significant uncertainty."
Shares in Keystone Positive Change were up 0.4% to 253.00 pence in London on Monday morning.
By Michael Hennessey, Alliance News reporter
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