Saba Capital’s intention to requisition general meetings at four of its UK listed trusts marks a “significant shift” in strategy by the group, according to the Association of Investment Companies (AIC).

The AIC was reacting to the decision that Saba will requisition general meetings at CQS Natural Resources Growth & Income, The European Smaller Companies Trust, Middlefield Canadian Income Trust and Schroder UK Mid Cap Fund.

Shareholders had voted against Saba’s proposed changes at each of the six previous general meetings held at affected investment trusts.

Chief Executive of the AIC, Richard Stone, said that this demonstrated that shareholders “value the investment trust structure which has delivered strong long-term performance”, as well as the independent oversight of boards.

“We have not yet seen the requisition notices that Saba has said it intends to deliver to these four investment trusts or the detailed proposals,” Stone said. “It is therefore unclear how they intend to provide any conversion or rollover into an open-ended vehicle with the same manager and strategy.

“This marks a significant shift in strategy by Saba. They now appear to recognise the proposals already put forward by the boards of two other trusts they had previously targeted – Henderson Opportunities Trust and Keystone Positive Change.

“Once published, it’s critical for shareholders to examine these proposals and their boards’ responses and vote at any meetings. We need to ensure that all shareholders have the opportunity to vote on the future of their trust.”

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