The Association of Investment Companies (AIC) has commented on Herald Investment Trust’s General Meeting today where shareholders voted against Saba’s proposals.
Commenting on Herald Investment Trust’s General Meeting, Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It’s very encouraging to see Herald shareholders turn out to vote in such numbers. This is a victory for shareholder democracy. There are six other trusts with votes just around the corner. It’s vital that all shareholders vote on the future of their investment trust. Shareholders need to act now.”
Voting dates for the other six investment trusts targeted by Saba are here.
Regulatory concerns
The Financial Conduct Authority (FCA) has responded to concerns raised by the AIC about the protection of retail shareholders’ interests following the action by Saba Capital.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said:
“The FCA has confirmed to us that they have written to the platforms to understand how they have engaged with customers on the Saba vote. We welcome this intervention by the FCA and their support for retail investors to engage with their investments. But we need to remove the barriers which prevent retail investors voting. Voting must be straightforward and easy for everyone. Saba’s action has highlighted that this is critical if retail investors are to have a say on what happens to their investment trust.
“It’s reassuring that the FCA has reaffirmed their powers to investigate and take action if they see evidence of a breach of the Listing Rules. The FCA also stated that the Listing Rules aim to ensure investment trust boards can act independently from the manager. Investors must receive adequate information on the investment policy and the FCA and shareholders must approve any material changes to the company’s investment policy.”
Useful links
Shareholder voting via advised platforms (for financial advisers; login required)
