Trust bosses criticize US campaigner’s plan to restructure their boards and replace fund managers

City investment trust bosses have responded to a US hedge fund’s attempt to reshuffle its boards and replace its fund managers.

Saba Capital, led by activist investor Boaz Weinstein, has called investor meetings at seven investment trusts to replace their directors with him and his allies.

However, bosses at Keystone Positive Change, one of the trusts attacked, are hitting back, saying they are “horrified” by the move.

Encouraging investors to vote against the plans, Keystone chairwoman Karen Brade said Saba was “acting opportunistically” and trying to “take control of the board without a majority stake, to pursue its own agenda.” “.

He added: “We believe Saba’s plan lacks transparency, would flagrantly ignore good governance and could introduce substantially inflated tariffs.”

Baillie Gifford US Growth Trust, another of Weinstein’s targets, also attacked the American activist, accusing his company of trying to “subvert” his performance.

Chairman Tom Burnet said: “Their (Saba’s) proposals lack detail and, if implemented, could destroy the independence of the board, radically alter the company’s investment strategy and be highly detrimental to shareholder value.”

Meanwhile, Edinburgh Worldwide Investment Trust chairman Jonathan Simpson-Dent said Saba was involved in a “covert attempt to take control of the trust”.

Other specific trusts include CQS Natural Resources Growth and Income, The European Smaller Companies Trust, Henderson Opportunities and Herald Investment Trust.