Boaz Weinstein's firm has fallen short in its initial attempt to oust Herald's board and take over the £1.2bn technology fund. But there are still 6 other trusts to vote on.
And we can be sure that Saba's large stakes will lead to further agitation for change.

BlackRock World Mining is among four UK trusts to extract a promise Saba will leave them alone. But... this looks like it’s a concerted action by the 4 separate UK trusts as a quid pro quo for BlackRock's two US funds doing a deal with Saba.

More detail of the Saba loss at the Herald vote emerges. Apparently virtually nobody voted in favour of Saba's proposals except Saba. There was an over 80% shareholder vote which is extraordinary these days and shows that investors will vote when given the opportunity, a good reason and the process is made easier. 6 more votes to go.

Tom Slater, partner at Baillie Gifford, tells the Herald why it is essential for shareholders in #USA, #KPC and #EWI to vote on the Saba resolutions.

The article refers heavily to ShareSoc's press release and our governance concerns.

Saba seeks to increase its voting power and crucial deadlines for voting are included in this article.

AIC argues FCA's Consumer Duty requirements mean "platforms" must actively contact clients to inform them of Saba's approach and encourage voting.

Edison comments on the upcoming meetings requisitioned by Saba Capital.

Edison, a leading Research and Investor Relations firm, has also put together a website page summarising much of what’s going on relating to the Saba Capital raid and reminds all investors they need to vote at the various Trust General Meetings.

A brief summary of each of the investment trusts under attack from Saba. Their strategy, size, key holdings, what they say about Saba (nothing positive) and what it says about the Trusts (also not that positive). 

The Association of Investment Companies (AIC) has been forced to clarify its role in the hiring of independent board directors after Saba Capital inferred it would be directly involved in its appointment process.

The News is all Saba it seems, as every commentator, analyst and shareholder seems to view this attempt to wrest control and grab the management fees as plain wrong.  Alex Brummer here sums it up saying it's a result of serious neglect by regulators, and disenfranchisement of shareholders, destroying their democratic rights.

A DIY investor runs the rules over the rights and wrongs of the Saba attack and recognises that the Investment Trust sector will never be the same again. It's now an activist target.

The Baroness points out that the 7 trusts under attack from Saba Capital are totally dissimilar, that a minority investor is trying to take control, without making a takeover offer, will compromise Board independence and put yet more Trusts in play as it seeks to enrich itself. A short-term hedge fund, with a mixed performance record disrupting long term patient capital. Vote now while you still can.

The Investment Trust industry may need saving, but Saba is no 'White Knight' says this piece. But nor is the industry entirely innocent. Saba's been stake building since 2023 yet the Trusts’ various Boards haven't put in effective defences, closed NAV discounts or engaged with ALL shareholders early enough. Trust Directors also lack skin in the game. Saba is outed as a perennial underperformer touting misleading claims. It fails to mention the discount damage from misleading cost disclosure rules nor the broken Shareholder Voting/Nominee system. Maybe in future more listed companies should rally behind ShareSoc’s Shareholder Rights campaign to fix the latter?

Baroness Altmann summarises the key issues of the Saba Capital attacks. Trying to turn long term investment trusts into short term hedge funds isn't what other investors signed up for, by taking advantage of an inadequate and broken regulatory system. Etc. etc.
Hear more at the ShareSoc Saba Webinar or watch the recording. Either way make sure you vote at all 7 Investment Trusts EGMs if you hold them. It's not that hard.

...to the entire Investment Trust sector. SABA intends to become a minority controlled acquisition vehicle to acquire control (not full ownership) of any/all Trusts with discounts, having liquidated assets of those it captures and repurposed funds (belonging to all shareholders) in pursuit of short term gains. If that concerns you, then please vote on the Saba proposals.

The Times says similar... “Saba’s overt land grab for its own end game exploits our long-standing retail shareholder base, who usually do not vote."
(Times subscription required)

Enough said. A step by step guide to voting.

All the pros and cons of Saba and the Trusts' arguments are listed and evaluated in this good summary. Might help investors decide how to vote, as they must.

Stifel has warned that even if Saba Capital fails to win in its initial battles with seven trust targets, the funds will still be forced to give shareholders an exit strategy. Saba is viewed as unlikely to just walk away and sell down its stakes in the market even if it has shorted its own exposure.

Baillie Gifford US Growth and Edinburgh Worldwide have both delivered improved returns ahead of their crunch shareholder votes.

In the author's opinion, which looks justified, Saba's recent webinar was no more than a choreographed attempt to pull the wool over investors' eyes. Here are the key questions Boaz Weinstein refused to answer, or even acknowledge had been asked.

This article argues that the current FCA is inherently conflicted in its mission and that it should be split into 3 bodies:

• One with a sole focus on consumer protection
• Another dealing with financial services competition & growth (perhaps part of the Competition & Markets Authority)
• A third dealing with market regulation (formulation only?)
• And we might suggest, potentially a fourth that concentrates only on enforcement?

This seems sensible in light of our experience of dealing with the FCA. However, it would require major legislative change, to amend the Financial Services and Markets Act and devolve responsibilities to the appropriate new agencies.
(Financial Times subscription required)

Robin Powell asks "So why do I think the risk of another Woodford-style blow-up is now so high?

The first reason has been well documented: we’ve never had a proper inquiry into what went wrong. Yes, Link has been fined, but other major players, like Woodford’s cheerleader-in-chief, Hargreaves Lansdown, appear to have escaped scot-free."

Who was it that said you can judge a person's character by the company they keep? Neil Woodford appears to have been in the company of an alleged inside trader.

It is odd that the FCA charge so few people with insider trading in the UK, but the SEC charge lots of people.

Is inflation in the UK getting under control, with the official rate undershooting fears of a 2.8% rate?

Government minister Johnathan Reynolds falls prey to industry lobbying on Consumer Duty, putting it on the chopping block before it's had time to properly take effect. Even though the primary function of regulators is to protect consumers and the Consumer Duty was long overdue. The main consumer gripes appear to be that it doesn't go far enough and ensure that proper support to consumers is available.

Andrew Bailey has warned Rachel Reeves against slashing regulations in her drive for growth, cautioning that ‘none of us will be forgiven for missing the next crisis’.

Merger talks between Rio Tinto and Glencore have sparked speculation that a frantic year of dealmaking could take place in the mining sector.

As Charles Hall of Peel Hunt notes, the AIM market has already shrunk by £2Bn two weeks into the year, thanks to a takeover and 2 companies moving to the main market. Time for the government to take action if it wants AIM to be an engine for growth and a source of capital.

Broker Freetrade has been bought by IG for a bargain price, just as it becomes profitable for the first time in its 6 year history. It's a parable for venture capital's winner-takes-all modus operandi, as Freetrade's earlier investors make a decent return, while later crowdfunders are nursing losses. 

The FT is asking its subscribers for their opinion on the factors causing the decline of the London stock market and what can be done to improve the situation - drop them a line.
(Financial Times subscription required)

The UK is no longer the European Poster Child, and many are suggesting we are in free fall, but the Sunday Times suggests not quite, by comparing us to major EU, Swedish and the US economies.
(Times subscription required)

The City regulator is ‘incapable’ of acting quickly to protect the UK's investment trust sector from overseas predators, a leading peer has warned.

Baroness Helena Morrisey spells out what needs to happen to achieve sustainable growth, including both properly incentivising people to start businesses, list their companies, scale them and stay. Additionally, driving cultural transformation is crucial, with valuable lessons to be learned from America and the Middle East.
And we need to do it a bit quicker than we usually do.

Ashley Alder, Chair of the FCA, puts pen to paper on the balancing act between protecting consumers and taking risks. Managed risks hopefully. The government is demanding the brakes be taken off but that isn't risk free as the many scandals and frauds over the years attest to.

TSMC (Taiwan Semiconductor Manufacturing Company) reported a record 57% increase in net income for Q4 2024, reaching NT$374.68 billion ($11.4 billion). Diluted earnings per share also rose by 57% to NT$14.45 ($0.45). The company's consolidated revenue grew 38.8% to NT$868.46 billion.
Will this pattern also be reflected in AI chip stocks like Nvidia or AMD, whose advanced processors are manufactured by TSMC? 

Investors are ditching emerging market stocks as they brace themselves for US president-elect Donald Trump’s proposed trade tariffs.

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