- Saba wants to overhaul seven trusts and merge some into a single vehicle
- There's been plenty of mudslinging but not all the details are clear just yet
- In light of what the different trusts are saying, how should you vote?
Major upheaval has reached the investment trust world, thanks to US activist Saba Capital's push to oust boards at Baillie Gifford's Edinburgh Worldwide (EWI), Baillie Gifford US Growth (USA) and Keystone Positive Change (KPC), as well as the Henderson Opportunities (HOT) and European Smaller Companies (ESCT) trusts run by Janus Henderson, plus Herald (HRI) and CQS Natural Resources Growth & Income (CYN).
Saba argues that the trusts have notably underperformed over three years and that corrective measures, ranging from ‘liquidity events’ such as tender offers to more drastic action, could boost performance. Its objective appears to be merging at least some of these funds and using the consolidated vehicle to buy shares in other discounted investment trusts.