3rd Aug 2026 11:23
(Alliance News) - Seven London-listed investment trusts on Monday confirmed they have entered three-year standstill agreements with their manager, abrdn Fund Managers Ltd, and activist investor Saba Capital Management LP.
The accords follow an agreement between Aberdeen Group PLC's Aberdeen Investments and Saba, which was announced in May.
Since late 2024, New York-based Saba has conducted a campaign of buying minority stakes in London-listed investment trusts and then pushing for board members to be replaced by its own candidates. It has been successful in some instances and unsuccessful in others.
Late last month, Workspace Group PLC saw off Saba, despite the hedge fund holding a 28% stake. Workspace said none of the resolutions proposed by Saba were passed at its annual general meeting on July 23.
The announcement on Monday was by Aberdeen Asia Focus PLC, Aberdeen Asian Income Fund Ltd, Aberdeen New India Investment Trust PLC, Aberdeen UK Smaller Cos Growth Trust PLC, Aberdeen Equity Income Trust PLC, Murray International Trust PLC, and Dunedin Income Growth Investment Trust PLC.
The trusts said that Saba has committed, for a period of three years, to not putting forward any proposals to shareholders or requisitioning any resolution or general meeting of the company. It will not seek to change the boards of the trusts, nor to control or influence the boards, policies, or management of the trusts. Saba also agreed not to vote against the recommendations of the boards.
Finally, the investor agreed not to engage in the short-selling of the trusts' shares.
The trusts said the commitments by Saba are the result of separate arrangements between Aberdeen and Saba, to which they are not party. They said they gave no monetary consideration to Saba in return for the standstill agreement.
At the time of its agreement with Saba, Aberdeen said the deal covered Herald Investment Trust PLC, while the seven other London-listed trusts under its management were free to join at the discretion of their independent boards.
Saba doesn't currently hold a stake in all of the trusts.
For its part, Dunedin Income Growth commented that "whilst the board is not in favour of companies routinely agreeing terms to restrict shareholder activism, it believes that entering into this agreement benefits all shareholders and notes that it does not restrict any party from acquiring shares in the company."
Separately, on Thursday last week, Gore Street Energy Storage Fund PLC said it has received a requisition notice from Saba asking for "certain resolutions be added to the business to be proposed" at the trust's upcoming AGM on September 16.
Gore Street Energy Storage said it is "evaluating" the requisition and will make a further announcement.
By Tom Waite, Alliance News editor
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Related Shares:
WorkspaceGore Street En.Abrdn New IndiaAbrdnAberdeen Uk Sm.Aberdeen Eq.incAberd Asia IncAberdeen AsiaMurray InternationalDunedin Inc.Herald Investment Trust